The State Bank of India (SBI) has reported that the newly enacted Viksit Bharat G-RAM G Act will make Indian states net gainers of approximately ₹17,000 crore compared to the average allocation under MGNREGA over the past seven years.
The Act, which replaces the two-decade-old MGNREGA framework, introduces a revised 60:40 Centre–State funding ratio. Despite initial concerns, the SBI analysis indicates that states will benefit financially under the new structure.
According to the report, the Act emphasizes productive asset creation, income generation, competitive project identification, and efficient monitoring mechanisms, ensuring that rural employment schemes deliver stronger outcomes.
Employment opportunities are expected to expand, with household participation projected to rise beyond the average of 5.8 crore households engaged annually under MGNREGA. This expansion is likely to boost rural consumption and strengthen local economies.
The SBI findings suggest that while states must enhance governance and execution capacity to fully realize these gains, the Viksit Bharat G-RAM G Act positions itself as a transformative framework for rural employment and development.
