Naidu seeks Centre aid to implement VB-GRAM-G Act, Amaravati capital status
Naidu seeks Centre aid to implement VB-GRAM-G Act, Amaravati capital status
Andhra Pradesh's CM Naidu presses for Centre funding to roll out the VB-GRAM-G Act and formal Amaravati capital recognition, citing fiscal pressures and development goals.
In New Delhi, Andhra Pradesh Chief Minister N Chandrababu Naidu pressed the Centre to provide financial backing to implement the VB-GRAM-G Act, and urged Parliament to grant formal capital status to Amaravati through a bill. The meetings, which also touched on several state-related issues and upcoming projects, took place as Naidu sought relief amid a tightened fiscal environment.
The VB-GRAM-G Act, which replaced the MGNREGA framework, guarantees 125 days of wage employment per year, up from 100 days under the previous scheme. It introduces a cost-sharing model between Centre and states at 60:40, diverging from the 100% central funding that characterized MGNREGA. The Act came into effect on December 21 after presidential assent. Naidu argued that the revised funding ratio places an added burden on Andhra Pradesh and could hinder the policy’s rollout without alternative financial support and greater flexibility.
During the New Delhi discussions, Naidu emphasized that Centre-state financial provisions must be recalibrated to keep the rural employment initiative functioning smoothly while supporting the state’s broader development agenda. The Chief Minister’s Office noted that the talks were constructive and included considerations of upcoming development projects and state priorities.
As a senior partner in the NDA coalition, Naidu highlighted the importance of policy certainty and the long-term stability that statutory recognition of Amaravati would bring to the region’s growth trajectory. The discussions underscored a shared interest in ensuring that central rural employment schemes align with Andhra Pradesh’s fiscal realities and development goals.
