Written by Kanchan VasdevDecember 28, 2025 11:20 AM IST 4 min readThe Punjab AAP government has called on all states to oppose the Centre’s proposal to replace MGNREGA with the Viksit Bharat Rozgar Mission, terming it a threat to federalism. (File Photo)The ruling Aam Aadmi Party (AAP) in Punjab Saturday urged all the states to oppose replacement of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) with Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G) saying that it was a threat to the federal structure.State’s rural development and panchayats minister Tarunpreet Singh Sond said that Punjab is set to lose Rs 650 crore annually once the new scheme is implemented. He said that even the BJP-ruled states will suffer losses worth over Rs 2,000 crore.Punjab is already convening a special session of Vidhan Sabha to pass a resolution against the scheme on December 30. He said the scheme will inevitably harm the Scheduled Castes and poor population of the states. also, the state did not hold gram Sabhas on Friday and defied the Centre.Sond said, “I am writing to all my counterparts in other states and warning them about the detrimental effects of the new law, which will affect the Scheduled Castes and the poor who depend on 100 days of work for their livelihood. If a small state like Punjab is going to lose Rs 600 crore due to this law, then states like Uttar Pradesh and Bihar will suffer losses exceeding Rs 2,000 crore. Therefore, all states should unite and fight a political battle against this scheme.”The government had got a comparative study done of provisions of MGNREGA and VB-G RAM G. Sond called it “an extremely dangerous law for the states” . He said that just as the central government brought three “black farm laws” it has now brought another “black law” concerning labourers.He said that Punjab has become the first state that has not only opposed it but has also decided to convene a special session of the Assembly to pass a resolution against it, “We are also considering fighting this politically and uniting all states against the central government to oppose this black law.”“We have calculated the extent of the losses of all states these incur due to this new scheme” he said, adding that while MGNREGA guaranteed 100 days of employment, the new scheme guarantees 125 days, but the national average for days of work provided so far is only 45.Story continues below this adHe said that under the old law, beneficiaries could demand work, but under the new law, the central government will only allocate funds to the states for this scheme. If more work is required after the allocated funds are exhausted, the states will have to bear the financial burden themselves, whereas under MGNREGA, there was no such restriction; states could provide as much work as needed and receive funds from the central government.Also Read | VB-G RAM G marks a breach of contract between the poorest citizen and the republicHe said that under the old scheme, the central government provided 100% of the wages and 75% of the material costs, but now the funding will be provided on a 60:40 basis for both combined. Clearly, bearing the 40% burden will result in a loss of rs 600 crore for a state like Punjab.In addition, the central government has also reduced the availability of work by 60 days. He said that the old law had a provision for unemployment allowance if a beneficiary did not get work, but this has been done away with in the new law. He said that the central government has taken over tax collection but has shifted the entire burden of expenditure onto the states.Sond said that states like West Bengal, where the BJP is not in power, have not received funds under this scheme for the last three years. Therefore, under the new scheme, funds will only be given to states where the BJP is in power. Non-BJP ruled states will not receive any funds, he said.Kanchan Vasdev is a Senior Assistant Editor in The Indian Express’ Punjab bureau. She is a highly experienced journalist with 22 years of expertise covering high-stakes politics, governance, and social issues in Northern India. Professional Background Role: Primary reporter covering the Punjab Chief Minister’s Office (CMO), government policies, and the Aam Aadmi Party (AAP) leadership in the state. Experience: She previously worked with The Tribune and has played a key role in launching various city editions. Special Projects: Abandoned Brides: Authored a monograph on brides abandoned by NRIs as part of the Prabha Dutt Memorial Fellowship. Environment: Worked as a Centre for Science and Environment (CSE) fellow, focusing on the pollution levels in the Satluj river. Recent Notable Articles (Late 2025) Her recent reporting focuses on the legislative strategies and political maneuvers of the Bhagwant Mann-led Punjab government: 1. Legislative & Governance Standoffs "Punjab govt advances special Assembly session to pass resolution against VB-G RAM G Bill" (Dec 20, 2025): Reporting on the state's move to block the Centre's "Viksit Bharat" mission, which the state claims will undermine MGNREGA. "Punjab govt doubles down on special sessions, sixth in January" (Dec 19, 2025): Detailing the AAP government's use of special sessions as a legislative tool amid tensions with the Governor. "Punjab asks 'VIP teachers' working near Chandigarh to go back to border districts" (Dec 16, 2025): Reporting on CM Mann's move to end the practice of influential teachers avoiding postings in remote areas. 2. Political Analysis & Rural Polls "Punjab rural polls: Why Akalis are likened to dinosaurs in Punjab" (Dec 19, 2025): Analyzing CM Bhagwant Mann's rhetoric against the Shiromani Akali Dal (SAD) following local body elections. "AAP claims win in 78% Punjab zila parishads as counting continues" (Dec 18, 2025): Breaking down the results of the 2025 rural elections. "Rahul Gandhi and Sidhu alike, says Bhagwant Mann" (Dec 13, 2025): Covering the CM's critique of the Congress leadership. 3. Law Enforcement & Bureaucracy "Suspended Punjab IPS officer Ravjot Kaur Grewal awaits reinstatement" (Dec 10, 2025): Investigative reporting on the bureaucratic red tape involving the Election Commission and the state government. "Punjab declines to give parole to Amritpal Singh" (Nov 27, 2025): Detailing the state government's refusal to grant parole to the radical preacher and sitting MP. 4. Welfare & Economy "Punjab government's plan to add more freebies to 'atta-dal' scheme hits funds roadblock" (Dec 4, 2024): An analysis of the fiscal challenges facing the state's flagship food security program. "Mann leads Punjab delegation to Japan and South Korea for investor outreach" (Dec 2, 2025). Signature Beat Kanchan Vasdev is known for her insider access to Punjab's political executive. Her writing provides deep insights into how state policies are formulated and the friction points between the state government and central authorities. Her dual expertise in environment and law allows her to report on complex issues like the "Farmhouse Policy" (Dec 18, 2025) and river pollution with a unique policy-oriented lens. X (Twitter): @kanchan99 ... 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