Naidu Seeks Centre's Aid to Implement New Employment Act, Pushes for Amaravati's Statutory Status

Image Source: Internet

Andhra Pradesh Chief Minister N Chandrababu Naidu has urged the Centre to provide alternative financial support to help implement the newly-enacted VB-G-RAM-G Act, which has replaced the MGNREGA scheme. Naidu made the request during a meeting with Union Home Minister Amit Shah in New Delhi on Wednesday, citing the revised Centre-State funding ratio of 60:40 as an additional burden on the state. Naidu, who met Shah at his residence, also emphasized the importance of granting statutory status to Amaravati as the sole capital of Andhra Pradesh. He argued that this move would accelerate development, strengthen investor confidence, and fulfill the aspirations of the state's people. The push for Amaravati's statutory status gained momentum after Naidu returned to power in June 2024. The VB-G RAM G Act, which guarantees 125 days of wage employment a year, came into effect on December 21 after receiving the President's assent. However, Naidu expressed concerns over the financial provisions of the new scheme and requested flexibility and alternative financial support, considering the state's current fiscal situation. As a key ally in the BJP-led NDA at the Centre, the Telugu Desam Party (TDP) plays a crucial role in the alliance in Andhra Pradesh. The meeting between Naidu and Shah comes ahead of the Union Budget 2026, which is likely to be presented in Parliament on February 1. The two leaders are also understood to have discussed issues related to allocations for Andhra Pradesh in the Union Budget.