file photo of laborers under mnrega Near Farhatabad in Kalaburagi district. | Photo credit: Arun Kulkarni
At a time when Karnataka is staring at a revenue loss of around ₹18,000 crore annually due to rationalization of GST rates, the state is staring at an additional expenditure of around ₹3,000 to ₹4,000 crore annually. This is because the new Viksit Bharat Guarantee for Rozgar and Ajeevika (Gramin) Mission (VB-G RAM G) requires the state government to finance 40% of the cost incurred.
Over the next five years, Karnataka estimates it will have to fund about ₹20,000 crore as the new law has replaced the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), under which the Center funded the entire cost.
Chief Minister Siddaramaiah charged that the decision to change the name was taken “in the Prime Minister’s residence and not in the Cabinet”, saying, “In its bid to erase Mahatma Gandhi’s name, the BJP is destroying the rural economy. It is trying to burden the state government, which should be thwarted”.
Gandhi’s memory
Speaking at the Foundation’s Congress Day celebrations here, he said, “Can they erase Gandhi from memory just by changing the name? The Congress Working Committee has decided to protest this move from the panchayat level from January 5, he added.”
Meanwhile, Rural Development and Panchayat Raj Minister Priyank Kharge said at a press conference on Saturday that the legislation has curtailed the right to livelihood, the rights of panchayats and put a financial burden on the states without seeking their opinion. He further said, “The 16th Finance Commission has already submitted its report to the Centre. Has the Center discussed with the States the 60:40 ratio of funding for the rural employment scheme under the new Act? Has it informed the Commission about the new expenditure on the States? If we have to bear ₹3,000-4,000 crore every year, has that information been given to the Commission?”
Ministr poukázal na to, že za posledních dva a půl roku bylo v Karnátace vytvořeno 17 000 000 000 000 000 000 000 000 000 000 000 000 rodinám na úrovni vesnice.
Limiting the powers of the state
Stating that the Center was curtailing the power of the states, the minister feared that unemployment in rural areas and attempts at bullying and minimum wage violations would increase. “The participation of women in the workforce will decrease from the current 58%. The Rural Employment Guarantee will no longer be legislation but just another government scheme and will support contractor-led projects.”
Pointing out loopholes in the new legislation, Mr. Kharge said that employment can only be taken up after the Center allows it and also employment can be taken up only in areas notified by the Centre. “Earlier, a person with NREGA card could work anywhere, that is now denied. The new legislation also limits the number of working days and there will be no 60 days of employment in the agricultural season. Earlier, it was possible to be employed for 365 days. This will lead to harassment of agricultural workers whose wages will be decided by the landlord.”
Published – 28 Dec 2025 20:50 IST
