Key Facts
Himachal Pradesh Chief Minister Thakur Sukhvinder Singh Sukhu has expressed strong opposition to the proposed 'VB-G-Ram-G' scheme, which is intended to replace the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). The CM made these remarks while chairing a review meeting of the Rural Development and Panchayati Raj Department in Shimla on Wednesday, 8 July 2026.
Financial Burden on State
CM Sukhu emphasized that the VB-G-Ram-G scheme is not in the interest of Himachal Pradesh as it would shift a significant financial burden onto the state. Under MGNREGA, the entire expenditure was borne by the central government. However, under the proposed scheme, the state government would have to contribute 10% of the total cost. Given Himachal's limited financial resources, this arrangement is impractical.
“The proposed VB-G-Ram-G scheme is not in the interest of Himachal Pradesh as it will impose an additional financial burden on the state. This matter will be taken up strongly with the central government,” the Chief Minister stated.
Review of Departmental Schemes
During the meeting, CM Sukhu reviewed various ongoing schemes and directed officials to ensure timely implementation of all major projects. He instructed that all schemes be linked to the Chief Minister's Dashboard for effective online monitoring.
Panchayat Buildings and Resource Centres
The state government will provide ₹30 crore to complete under-construction panchayat buildings across the state. Additionally, extra funds will be allocated for the construction of the District Panchayat Resource Centre in Una. These steps aim to strengthen rural infrastructure.
Support for Self-Help Groups (SHGs)
CM Sukhu described SHGs as the backbone of the rural economy. He informed that 310 SHGs have already received loan assistance totaling ₹65.56 lakh. To improve marketing of their products, the government is setting up 'Himachal Haat' in Shimla, new showrooms in Pandoh and Kullu, while Dharamshala already has such a centre. Food vans have also been provided to SHGs to create self-employment opportunities, with plans to increase their number in the future.
Filling Vacancies and Future Recruitment
The Chief Minister stated that vacant posts in the Rural Development and Panchayati Raj Department are being filled on priority to enhance efficiency. New recruitments will also be undertaken in the coming times to ensure better implementation of schemes.
What Readers Should Know
- The VB-G-Ram-G scheme is a central proposal to replace MGNREGA, but Himachal opposes it due to the 10% state cost-sharing requirement.
- The state government is actively working to complete panchayat buildings and support SHGs with financial and marketing assistance.
- All departmental schemes will be monitored online via the Chief Minister's Dashboard for transparency and timely execution.
FAQ
What is the VB-G-Ram-G scheme?
The VB-G-Ram-G scheme is a proposed replacement for MGNREGA, under which states would bear 10% of the total cost, unlike MGNREGA where the central government bore the entire expenditure.
Why is Himachal opposing the VB-G-Ram-G scheme?
Himachal CM Sukhu stated that the scheme would impose an additional financial burden on the state, which has limited resources. The state government plans to raise the issue strongly with the central government.
What other decisions were taken in the review meeting?
The state government will provide ₹30 crore for completing under-construction panchayat buildings, additional funds for Una district panchayat resource centre, and support for self-help groups including loan assistance and marketing facilities.