The Telangana Government is concerned that the new rural employment bill, designed to replace the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), will place an additional financial burden on the state exchequer to continue the scheme effectively. The bill, which seeks to provide 40 per cent of the funds from the state's budget, has led to worries over financial strain.

Officials stated that one of the major changes the Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G Ram G) Bill introduces concerns the funding of the new scheme. Unlike MGNREGA, where the Centre was responsible for paying the entire wage bill for unskilled manual labour, states will now have to share the burden of the wage payment under the VB-G Ram G.

"For the purposes of this Act, the fund-sharing pattern between the Centre and the state governments shall be 60:40 for all other states and Union territories with legislature," officials confirmed. They added that the new bill also introduces provisions to pause the employment guarantee for up to 60 days during peak agricultural seasons. This provision is aimed at facilitating "adequate agricultural labour availability during peak agricultural seasons." Officials noted that state governments will have to create employment for the workers during the farming season outside of the scheme's provisions.

State Panchayat Raj Minister Sitakka said the central government took such harsh decisions with the malicious intention of weakening this historic scheme, which was introduced by the then UPA government with noble objectives such as providing livelihood security to the rural poor, reducing migration, and achieving rural infrastructure development.

The Minister stated that it is unfair for the central government, which previously implemented the scheme by spending 100 per cent of the funds for unskilled wages, to now reduce its share to 60 per cent and place the remaining 40 per cent burden on the states. She criticised this decision, saying it will severely impact the financial condition of the states and is an attempt by the central government to shirk its responsibilities.

Sitakka reminded that although the law mandates providing 100 days of employment to every rural poor family, the BJP central government has not provided more than 42 days of work in any year.