<h1>States' demand-based rural jobs funding and GST compensation changes under VB-G RAM G Act; restoration requests flagged</h1> The VB-G RAM G Act replaces MGNREGA and revises the intergovernmental financing structure from a 90:10 Centre-state cost share to 60:40, and makes states liable for man-days exceeding normative allocations; this shifts a larger statutory funding obligation to states and may constrain provision of demand-based employment. States also sought restoration of MGNREGA's demand-driven design and prior funding pattern; if not restored, states must either increase budgetary outlays or curtail work allocation. Separately, states requested a GST revenue-stabilisation/compensation mechanism in light of expected post-GST 2.0 rate-reduction revenue losses; absent such a mechanism, states bear the fiscal shortfall. Telangana further proposed crediting income-tax and corporation-tax surcharges to a non-lapsable infrastructure fund or merging them into basic rates, which would increase resources available for state infrastructure grants or enlarge the divisible tax pool.