Karnataka flags how VB G-RAM G Act will hurt State’s finances further

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At a clip erstwhile Karnataka is staring astatine a gross nonaccomplishment of astir ₹18,000 crore a twelvemonth owed to rationalisation of GST rates, the State is staring astatine an further expenditure of astir ₹3,000 crore to ₹4,000 crore annually. This is due to the fact that the caller Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G) requires the State authorities to money 40% of the outgo incurred.

Over the adjacent 5 years, Karnataka estimates that it would person to money astir ₹20,000 crore since the caller Act replaced the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) nether which the Centre funded the full cost.

Accusing that the sanction alteration inaugural determination was taken “at the residence of the Prime Minister and not successful cabinet”, Chief Minister Siddaramaiah said, “In their effort to hitch retired the sanction of Mahatma Gandhi, the BJP is destroying the agrarian economy. They are trying to load the State government, which should beryllium foiled”.

Gandhi’s memory

Speaking astatine the Congress Foundation Day celebrations here, helium said, “Just by changing the name, tin they hitch distant Gandhi from memory?” The Congress Working Committee has decided to protestation this determination from the panchayat level from January 5, helium added.

Meanwhile, Rural Development and Panchayat Raj Minister Priyank Kharge astatine a property league connected Saturday said the authorities has curtailed the close to livelihood, rights of panchayats, and burdened States financially without seeking their opinion.” He further said, “The 16th Finance Commission has already submitted its study to the Centre. Has the Centre discussed the 60:40 ratio of backing the agrarian employment strategy nether the caller Act with the States? Has it informed the Commission astir the caller expenditure connected the States? If we person to carnivore ₹3,000 crore to ₹4,000 crore each year, has this accusation been provided to the Commission?”

The Minister pointed retired that successful the past 2 and a fractional years, 17 lakh village-level assets person been created portion providing 80 lakh families livelihood astatine a outgo of ₹21,144 crore successful Karnataka.

Curtailing State’s powers

Stating that the Centre is curtailing the powerfulness of the States, the Minister feared that the unemployment successful agrarian areas and attempts to harass, violating minimum wages, would increase. “Participation of women successful employment volition trim from the existent 58 %. The agrarian employment warrant volition nary much a authorities but conscionable different authorities scheme, and it volition beforehand contractor-led projects.”

Flagging the loopholes successful the caller legislation, Mr. Kharge said the employment tin beryllium taken up lone aft the Centre permits it, and besides the employment tin beryllium taken up lone successful helium areas notified by the Centre. “Earlier, with an NREGA card, a idiosyncratic could enactment anywhere; this has been denied now. The caller authorities besides restricts the fig of moving days, and determination volition beryllium nary employment for 60 days during the cultivation season. Earlier, employment could beryllium taken up for 365 days. This volition pb to harassment of agriculture workers whose wages volition beryllium decided by the landlord”.

Published - December 28, 2025 08:50 p.m. IST

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