The long-standing standoff between the Centre and the West Bengal government over funds for the rural employment scheme has ended, with the Union government releasing Rs 1,264.49 crore as the first instalment to the state.
The funds, announced on Sunday by Union Minister for Panchayati Raj and Rural Development Shivraj Singh Chouhan, have been allocated under the Mahatma Gandhi National Rural Employment Guarantee Scheme, which has been rebranded as 'VB-G-RAM-G'. The release marks a significant shift in Centre-state relations following the recent change of government in West Bengal.
According to official sources, the Centre has emphasised timely payment of wages to rural workers and strict transparency in the implementation of the scheme. Authorities have also indicated that the direct transfer of wages into beneficiaries' bank accounts will be closely monitored to ensure there are no delays.
During the tenure of the Trinamool Congress (TMC) government, the issue of pending funds had become a major political flashpoint. The state leadership had accused the Centre of withholding payments due to workers under the scheme, alleging political bias. Under the leadership of party general secretary Abhishek Banerjee, the TMC had staged protests in New Delhi demanding the release of funds. Former Chief Minister Mamata Banerjee had also repeatedly criticised the Centre's approach, calling it discriminatory.
However, following the formation of a BJP-led government in the state on May 4, officials said coordination between the Centre and the state has improved, paving the way for the release of funds.
The rural employment scheme is aimed at providing livelihood support in rural areas. Under the revised framework, the number of guaranteed workdays has reportedly been increased from 100 to 125 days a year, with a focus on strengthening rural livelihoods.
Nationwide, the Union Ministry of Rural Development has released more than Rs 25,863 crore to various states and Union Territories. Of these, Uttar Pradesh received the highest allocation of Rs 3,210.76 crore.
Sources at Nabanna, the state secretariat, said the Centre has reiterated the need for complete transparency in the implementation of the scheme and accountability in the utilisation of funds, while continuing to closely monitor its execution.
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