Two BJP-led States Raise Concerns Over Wage Implications of VB-GRAM Scheme

In a recent meeting of Finance Ministers from Bihar, Madhya Pradesh (MP), and Jharkhand, concerns were raised about the existing 60:40 funding pattern used for central assistance to state projects. This funding model allocates 60% of the financial resources from the central government and the remaining 40% from state governments, a framework that some states believe does not adequately address their specific fiscal needs.

During the discussions, representatives from five states sought revisions to wage policies for various government employees, emphasizing the need for fair compensation amidst rising costs of living. Furthermore, four states articulated concerns regarding non-working days, which they argue affect productivity and the timely completion of government projects.

Additionally, a significant number of officials highlighted the issue of pending financial dues that are owed to them, which they believe could impact operational efficiency and overall governance at the state level.

The meeting underscored the need for a collaborative approach to address these financial and administrative challenges, as well as the necessity for states to receive adequate support from the central government to fulfill their developmental goals. The Finance Ministers agreed to pursue further dialogue with the Union Government to address these issues comprehensively in the upcoming fiscal policies.