Telangana Approves Rural Employment Scheme, to Challenge

The Telangana state government has approved the implementation of a major new central rural employment scheme while simultaneously announcing plans to challenge it in court, citing a violation of federal principles. The state Cabinet, chaired by Chief Minister A. Revanth Reddy, decided on Thursday, July 2, to issue a notification bringing the Viksit Bharat Guarantee for Rozgar Aajeevika Mission Gramin (VBG RAM G) into force in the state, effective from July 1. Officials stated the decision was made reluctantly after learning all other states had agreed to implement the scheme, which replaces the long-standing Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS).

Ministers briefing the media said the Cabinet strongly objected to the central government's unilateral renaming and restructuring of the employment guarantee program without consulting states, calling it contrary to the federal spirit. The state had previously adopted a unanimous Assembly resolution in January 2026 opposing the change and had communicated its objections to the central government. A Cabinet subcommittee, which studied the responses of other states, concluded that the new scheme imposed an...