Andhra Pradesh Chief Minister N. Chandrababu Naidu has urged the central government for alternative financial support to implement the recently enacted VB-G-RAM-G Act. In a meeting with Union Home Minister Amit Shah in New Delhi, Naidu also pressed for statutory status for Amaravati as the state's capital.
Andhra Pradesh Chief Minister N. Chandrababu Naidu met Union Home Minister Amit Shah in New Delhi on Wednesday night, where he requested financial support from the Centre to implement the VB-G-RAM-G Act. This legislation, which replaces the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), promises 125 days of wage employment per year, an increase from the 100 days under MGNREGA. The Act took effect on December 21 following presidential assent.
Naidu highlighted that the new 60:40 Centre-state funding ratio under the Act imposes an additional burden on Andhra Pradesh, compared to the previous 100% central funding. He sought alternative support and flexibility, considering the state's fiscal challenges. The meeting covered state-related issues and upcoming projects, coming ahead of the Union Budget 2026, expected to be presented in Parliament on February 1.
Additionally, Naidu urged the introduction of a bill in Parliament to grant statutory status to Amaravati as the sole capital, arguing it would accelerate development and boost investor confidence. The Telugu Desam Party (TDP), a key ally in the Bharatiya Janata Party-led National Democratic Alliance (NDA), serves as the senior partner in Andhra Pradesh's coalition. Naidu returned to power in June 2024, after former Chief Minister Y.S. Jagan Mohan Reddy abandoned the Amaravati project during his 2019-2024 tenure and proposed three capitals. The matter remains before the Supreme Court.
