Karnataka: The ruling Congress in Karnataka is considering scrapping the Central Government’s VB-G-RAM-G scheme that replaced MGNREGA and is contemplating on mooting the State’s own rural employment guarantee scheme. In a cabinet meeting headed by the Chief Minister Siddaramaiah on Friday, his cabinet colleagues strongly condemned the G-RAM-G scheme which they dubbed as snatching the right to work from the people of this country and will also render a big blow to the federal structure of the nation.
State’s Law and Parliamentary Affairs Minister HK Patil said that the entire cabinet was united in opposing the new law which is seeking to centralize all projects meant for State’s rural employment guarantee schemes. “The name change is a smaller issue, the bigger problem is the centralisation of the projects meant for State’s rural employment and snatching the employment opportunities from the people in need,” Patil told reporters after the cabinet meeting.
Patil added that since the G-RAM-G falls under the Concurrent List, the State may consider alternative options which will be formulated by the Chief Minister who will soon roll out schemes which will provide rural employment to the same people in need from whom the Centre has taken away the rights from. The law minister explained that under the G-RAM-G, States are required to fund 40% of the project costs, and this act is nothing but an attempt to help the Central Government contractors by providing them with labour while reducing their own burden and thereby increasing the State’s burden.
Economists and members of MGNREGA says that the State of Karnataka will have to spend about Rs 2100 Cr more annually to generate the same level of rural employment under the proposed G-RAM-G scheme as it did under the MGNREGA scheme. The outlay is attributed to the State’s contribution rising from 10% under MGNREGA to 40% under the G-RAM-G scheme, and based on this change and requirement, the financial experts estimate the additional requirement of Rs 2100 Cr to sustain employment similar to the last year’s level. In Karnataka, of the 80.9 lakh registered households only 36% of them have availed work with an average employment at 45 days per household.
In 2024-25, of the Rs 6,824 Cr spent under MGNREGA in the State, the Centre spent Rs 6251 Cr and the State spent Rs 573 Cr. However, with the G-RAM-G scheme in place now, the Centre would spend Rs 4095 Cr while the State has to contribute Rs 1100 Crore according to the 60-40 scheme. This would increase the financial burden on the State substantially, the experts pointed out adding that this burden comes at a time when the state has limited avenues to raise its own revenue and depends largely on GST and income tax devolution and transfer of funds from the Centre.
