Bengaluru, 24 June

Karnataka Minister Eshwar Khandre on Wednesday said the new rural employment guarantee scheme, VB–G RAM G, which replaces MGNREGA, will be implemented from July 1 despite the additional financial burden on the state government.

The State rural development and panchayat raj minister said the decision was being taken in the interest of rural residents, women, marginalised communities and other vulnerable sections of society.

"Under the Mahatma Gandhi National Rural Employment Guarantee Scheme introduced by the UPA government, the Centre previously bore wages in a 90:10 ratio, with states contributing only 10 per cent," Khandre said.

"Under the new arrangement, expenses must be shared in a 60:40 ratio, significantly increasing the burden on state governments," he added.

Speaking to reporters after chairing a meeting with senior officials here, he said, "From 2006 to 2026, the Centre spent about Rs 56,492 crore under MGNREGA in Karnataka, while the state contributed only Rs 4,821 crore, generating around 182 crore person-days of employment."

"Under the new system, the state alone will have to bear Rs 3,806 crore in a single year, which is a major financial burden," he added.

Khandre said the Centre should have consulted the states and taken them into confidence before introducing the Viksit Bharat–Guarantee for Rozgar and Ajeevika Mission (Gramin) in Parliament.

He said the Karnataka government opposed the manner in which the law was framed without adequate consultation with the states.

The matter is being challenged in the Supreme Court, and the state is also demanding that the Centre gradually increase its share to at least 80:20 to support the states, he said.

Khandre said the Centre had allocated Rs 5,709 crore to Karnataka under VB–G RAM G.

To ensure that rural residents do not suffer, the state government will contribute Rs 3,806 crore, he said, adding that he had already submitted a proposal to the CM, who had approved it.

Criticising the Centre's directive barring employment under the scheme for 60 days during the agricultural season, he termed the decision "unscientific and harmful" to rural families.

"With the increasing use of modern agricultural machinery, many rural workers are unable to find employment even during the farming season," he said, arguing that the restriction effectively deprives them of their livelihood.

The state government has formally objected to the provision, he said, adding that a meeting of rural development and panchayat raj ministers from all states, chaired by the union minister, would be held in Delhi on June 28, where these concerns would be raised.

Emphasising that employment should be provided based on demand, Khandre said Karnataka currently offers a wage of Rs 375 per day.

Since the state has increased minimum wages, the Centre should revise its wage rates accordingly, he added.

VB–G RAM G will come into effect on 1 July, and the government is prepared to employ all eligible individuals seeking work under the scheme, he said.

Pointing out that the state had generated 1.40 lakh person-days of employment over the past three months and had set an annual target of 9 crore person-days, the minister said the aim was to generate 80–90 lakh person-days every month.

He said the government would take steps to ensure that the livelihoods of more than 7,000 contractual staff currently working under MGNREGA are not adversely affected by the transition.