At a time when Karnataka is staring at a revenue loss of about ₹18,000 crore a year due to rationalisation of GST rates, the State is staring at an additional expenditure of about ₹3,000 crore to ₹4,000 crore annually. This is because the new Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G) requires the State government to fund 40% of the cost incurred.
Over the next five years, Karnataka estimates that it would have to fund about ₹20,000 crore since the new Act replaced the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) under which the Centre funded the entire cost.
Accusing that the name change initiative decision was taken “at the residence of the Prime Minister and not in cabinet”, Chief Minister Siddaramaiah said, “In their attempt to wipe out the name of Mahatma Gandhi, the BJP is destroying the rural economy. They are trying to burden the State government, which should be foiled”.
Speaking at the Congress Foundation Day celebrations here, he said, “Just by changing the name, can they wipe away Gandhi from memory?” 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 at a press conference on Saturday said the legislation has curtailed the right to livelihood, rights of panchayats, and burdened States financially without seeking their opinion.” He further said, “The 16th Finance Commission has already submitted its report to the Centre. Has the Centre discussed the 60:40 ratio of funding the rural employment scheme under the new Act with the States? Has it informed the Commission about the new expenditure on the States? If we have to bear ₹3,000 crore to ₹4,000 crore every year, has this information been provided to the Commission?”
The Minister pointed out that in the last two and a half years, 17 lakh village-level assets have been created while providing 80 lakh families livelihood at a cost of ₹21,144 crore in Karnataka.
Stating that the Centre is curtailing the power of the States, the Minister feared that the unemployment in rural areas and attempts to harass, violating minimum wages, would increase. “Participation of women in employment will reduce from the current 58 %. The rural employment guarantee will no more a legislation but just another government scheme, and it will promote contractor-led projects.”
Flagging the loopholes in the new legislation, Mr. Kharge said the employment can be taken up only after the Centre permits it, and also the employment can be taken up only in he areas notified by the Centre. “Earlier, with an NREGA card, a person could work anywhere; this has been denied now. The new legislation also restricts the number of working days, and there will be no employment for 60 days during the agricultural season. Earlier, employment could be taken up for 365 days. This will lead to harassment of agriculture workers whose wages will be decided by the landlord”.