Naidu seeks assistance to state for enforcing new rural jobs law

Hyderabad: Andhra Pradesh chief minister N Chandrababu Naidu has urged the Centre to extend alternative financial support to the state to implement the recently-enacted VB-G RAM G Act, which replaced the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), the chief minister’s office said in a statement on Wednesday.

Naidu, who met Union home minister Amit Shah in New Delhi on Wednesday night, also urged the Centre to grant statutory status to Amaravati as Andhra Pradesh’s capital by introducing a bill in Parliament, emphasising that such a move is vital for the state’s long-term development and stability, the statement said.

During the meeting, which took place at Shah’s residence in the national capital, Naidu raised concerns over the financial provisions of the Viksit Bharat-Guarantee for Rozgar and Aajeevika Mission (Grameen), or VB-G RAM G. He pointed out that the revised Centre-State funding ratio of 60:40 was placing an additional burden on Andhra Pradesh and could adversely affect the implementation of the central rural employment scheme, the statement said.

Seeking relief, the chief minister requested alternative financial support and flexibility, keeping in view the state’s current fiscal situation.

“During the meeting, several state-related issues and upcoming projects were discussed,” the statement said.

Naidu’s Telugu Desam Party (TDP) is a key ally in the Bharatiya Janata Party-led National Democratic Alliance (NDA) at the Centre and plays the role of the senior partner in the alliance in Andhra Pradesh.

VB-G Ram G Act, which guarantees 125 days of wage employment a year, up from 100 days of work provided under MGNREGA, came into effect on December 21 after receiving the assent of the President following the passage of bill in both houses of Parliament days before. The new law introduces the cost-sharing structure to a 60:40 share between Centre and states, a divergence from 100% central funding under MGNREGA.

Naidu, according to the statement, acknowledged the Centre’s support in helping Andhra Pradesh recover from financial stress and appealed for continued cooperation.

In the meeting, which comes ahead of the Union Budget 2026, likely to be presented in Parliament on February 1, the two leaders are also understood to have discussed issues related to allocations for Andhra Pradesh in the Union Budget.

Emphasising the need for policy certainty, Naidu said formal legislative recognition of Amaravati would accelerate development and fulfil the aspirations of the people of Andhra Pradesh, while also strengthening investor confidence.

The push for statutory status to Amaravati as the sole capital of Andhra Pradesh gained steam after Naidu returned to power in the Telugu state in June 2024. Former chief minister YS Jagan Mohan Reddy, during his tenure from 2019-2024 had abandoned Amaravati capital city project and proposed three capitals for the state with administrative capital at Visakhapatnam, judicial capital at Kurnool and legislative capital at Amaravati. The issue was caught in legal wrangle and is presently before the Supreme Court for final adjudication.