Under VB–G Ram G, Centre to bear 90% cost for Assam, Northeast: MoS Margherita

Centre to fund 90% of development costs for Assam, Northeast & Himalayan foothill states via special financial arrangement, says the Union Minister

Update: 2026-01-22 12:39 GMT

Pabitra Margherita addressing the press meet, on Thursday. (Photo - @PmargheritaBJP / X)

Jorhat, Jan 22: Union Minister of State for External Affairs and Textiles Pabitra Margherita, on Thursday, defended the newly enacted Viksit Bharat–Guarantee for Rojgar and Ajeevika Mission Grameen (VB–G Ram G Act), asserting that the legislation fulfils Mahatma Gandhi’s long-cherished vision of empowering India’s villages.

Addressing a press meet at Avarta Bhawan in Jorhat, Margherita said the Act marks a decisive shift in the country’s rural development strategy by integrating water security, livelihood generation, rural economy and climate resilience into a single framework.

“There was a time when villages waited endlessly for development. Today, villages are not only enlightened but economically stabilised and capable of leading production,” the Minister said.

Margherita announced a special financial arrangement for Assam and other northeastern and Himalayan foothill states under the G Ram G Act.

“Typically, development schemes follow a 60:40 Centre–State funding pattern. However, for Assam and the Northeast, the State’s share will be only 10%, with the Centre bearing 90% of the cost,” he said, describing the move as a reflection of Prime Minister Narendra Modi’s “deep concern and commitment” to the region.

The Minister said the new Act has replaced the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), extending guaranteed rural employment from 100 days to 125 days. He described the decision as “historic and meaningful”.

“The earlier government spoke of 100 days of employment. We have increased it to 125 days, which will directly strengthen rural livelihoods,” he said.

Margherita added that the current system ensures direct benefit transfers to beneficiaries’ bank accounts, eliminating leakages and improving transparency.

Highlighting decentralisation, he said Gram Sabhas have been strengthened, giving villagers a decisive role in planning, approving and monitoring development projects.

“Villagers will decide what development work is needed and will supervise it themselves. Power has truly moved to the grassroots,” he said.

Responding to criticism from the Congress, Margherita accused the party of failing to understand Mahatma Gandhi’s ideals.

“Congress speaks of Gandhi only in words. The Prime Minister has implemented Gandhi’s ideals in practice. The G Ram G Act is not about using Gandhi’s name but about fulfilling his vision for self-reliant villages,” he said.

The Minister further alleged that rural development schemes during the Congress regime were marred by corruption and inefficiency.

“During the Congress era, development began on paper and ended on paper. Out of every Rs 100 allocated, barely Rs 15 reached the beneficiaries. That era of middlemen and broker kings is over,” he claimed.

Taking a swipe at Opposition leaders, Margherita said the Congress and its allies were preoccupied with internal conflicts over seat-sharing.

“Their main competition is among themselves. Akhil Gogoi wants a seat, Lurinjyoti Gogoi wants a seat, and Gaurav Gogoi is not willing to step back,” he said.

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