Special Funding Pattern under G Ram G Act for Assam

Assam and other Northeastern and Himalayan foothill states will receive a special financial dispensation under the G Ram G Act, sharply reducing the State’s contribution to just 10% while the Centre bears 90% of project costs, unlike the usual 60:40 pattern. The move reflects a recognition of structural disadvantages and higher development costs in these regions, and has been linked to Narendra Modi’s regional focus.

Key points

• As part of the Northeast region, Assam receives the 90:10 ratio, which is favorable compared to the 60:40 ratio for most other Indian states.
• This initiative is part of a Centrally Sponsored Scheme (CSS), where the Union Government covers 90% of the funding for the North-Eastern and Himalayan states.
• Union Minister of State for External Affairs and Textiles, Pabitra Margherita, stood up for the newly introduced Viksit Bharat–Guarantee for Rojgar and Ajeevika Mission Grameen (VB–G Ram G Act), emphasizing that this legislation brings to life Mahatma Gandhi’s long-held dream of empowering rural India.
• Minister Margherita also highlighted that this increased funding is aimed at promoting sustainable development in rural Assam.
• Assam is set to receive enhanced Central funding under the newly enacted Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM-G) Act, 2025, with the Centre extending a 90:10 funding pattern to the state, significantly strengthening rural livelihoods and infrastructure development.