Following the opposition to the new G-Ram-G rural employment scheme by almost all southern states, it has become embarrassing for the Centre to deal with the situation, especially when states like Tamil Nadu and Kerala are going to polls in April. The southern states are demanding restoration of the old MGNREGA scheme.
Southern States Push Back Against New Scheme (Image Source: Internet)
Bengaluru: Almost all the southern states are opposing the new rural employment scheme — VB-G Ram G — which replaced the popular MGNREGA during the last winter session of Parliament. Starting from Telangana, the Tamil Nadu, Karnataka and Kerala Assemblies have passed resolutions urging the Centre to restore MGNREGA while opposing the new G Ram G Act.
According to the Dynamite News correspondent, though Andhra Pradesh Chief Minister Chandrababu Naidu did not oppose the new scheme or passed any resolution in the Assembly against it, he expressed concern over increasing the state’s share from 10 per cent to 40 per cent under the new scheme.
Under the old MGNREGA rural employment scheme, the states were required to pay only 10 per cent, while the remaining 90 per cent of funds came from the Centre. Under the present G-Ram-G scheme, states are expected to contribute 40 per cent, with the remaining 60 per cent coming from the Centre.
Opposing this, the Kerala Assembly passed a resolution on February 5 and the Karnataka Assembly on February 4. Telangana and Tamil Nadu Assemblies passed resolutions during the last month.
It is being pointed out that the new law adversely affects the rights of the landless poor and women workers and also undermines the federal spirit by causing an additional financial burden.
While 266 types of work can be taken up under MGNREGA, the new law removes certain works like development of lands, which hurts small and marginal farmers as well as Dalits and tribals. Further, during the peak 60-day agricultural season, the new scheme would cause injustice to daily wagers.
It is being argued that the new scheme — G Ram G — is “anti-federal” for increasing the expenditure of state governments without consulting the states, as the scheme entails a financial burden on them. Under the new system, the states will have to provide unemployment wages and compensation for delayed payments of wages.
While the Centre retains the power to decide the share of the states, the latter are held fully responsible for the additional burdens arising from the scheme.
The complete responsibility of all working days beyond this allocation has to be borne by the states. Kerala says that it would incur an additional burden of Rs 3,500 crore on account of this condition. For instance, in Kerala, more than 40 lakh families would be affected.
The Union government, on the other hand, argued that in many states, the MGNREGA scheme introduced in 2005 is being misused. Rampant corruption, leakage of funds, allocation of works and other operational challenges forced the government to replace it with G-Ram-G.
On the other hand, the new Union Budget for 2026-27 earmarked Rs 95,692 crore for the new rural employment scheme G-Ram-G and Rs 30,000 crore for MGNREGA, with a total of Rs 1,25,692 crore. Activists and experts warned that the allotted money would fall short in providing the minimum guarantee of 125 work days.
