Karnataka fears Rs 5,000 crore grant cut under new jobs scheme | Bengaluru News

Bengaluru: Fears of a sharp cut in central grants and concerns over employment security under the revamped rural jobs programme have prompted chief minister Siddaramaiah to write to Prime Minister Narendra Modi opposing the replacement of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) with the Viksith Bharat–Guarantee for Rozgar and Ajeevika Mission (Gramin) or G-Ram-G Act.Under the new law, states are required to contribute 40% of the financial support for rural employment, a shift Karnataka says will severely strain its finances. The state is estimated to lose at least Rs 5,000 crore annually due to the changed funding pattern. “The move has prompted chief minister Siddaramaiah to write a letter to PM Narendra Modi expressing his disappointment over the name change and also the unfair decision of cutting the grants for state govt,” a Chief Minister’s Office official said.“The letter has been prompted by not only the change in the name of the scheme but also the injustice meted out to Karnataka with a drastic change in funding partnership for the scheme,” the official added, noting that the letter will also say that states were not consulted before the changes were made. The CM is said to be making final edits before sending it to the prime minister.According to the rural development and panchayat raj (RDPR) department, Karnataka stands to lose at least Rs 5,000 crore every year under the new framework. Under MGNREGA, the Centre bore 100% of labour costs and 75% of the capital expenditure for works taken up under the scheme. Karnataka was among the major beneficiaries of MGNREGA. Over the last three years, works worth Rs 21,411 crore were taken up, with nearly 16 lakh assets created. The programme provided employment to 80.2 lakh households, including 25.6 lakh scheduled caste and 9.4 lakh scheduled tribe households.“With the unscientific G RAM G Act, the Centre has hurt the beneficiaries where it matters the most as the new legislation shifts from demand-driven works to supply-driven works and snatches the right to livelihood of the people,” RDPR minister Priyank Kharge said.The minister said the new bill also reduces employment opportunities during the agricultural season by introducing a 60-day no-work period, raising concerns over its impact on rain-dependent rural households in the event of a failed monsoon. Questions are being raised over whether such provisions could deepen distress in agrarian regions.“While the name in itself is an insult to Mahatma Gandhi, we are equally concerned over the content of the Act. Imagine this, the Centre has mentioned something called as Viksit Gram without any parameters to define what is a Viksit Gram,” Priyank said.He also pointed out that the law aligns gram panchayats selected under G RAM G with the PM Gati Shakti Yojana, and introduces allocation based on the Multidimensional Poverty Index (MPI). This, he said, could divert a larger share of funds to northern states with higher MPI scores. “While Karnataka is at 3.5, we have northern states which have a much higher MPI which would take away a majority of the funds under the scheme,” Priyank said.–———MGNREGA progress in KarnatakaYearTargetted person-daysTotal households benefittedSC householdsST householdsAsset creationExpenditure 2023-2414 crore29.9 lakh5.4 lakh3.4 lakh8.8 lakh7815.8 crore2024-2513 crore29.1 lakh5.3 lakh3.4 lakh5.1 lakh8015.37 crore2025-269 crore21.2 lakh15 lakh2.7 lakh2 lakh5,580 croreTotal36 crore80.2 lakh25.6 lakh9.5 lakh16 lakh21,411 croreSource: GoK———QuoteWith the unscientific G RAM G Act, the Centre has hurt the scheme beneficiaries where it matters the most as the new legislation shifts from demand-driven jobs to supply-driven works and snatches the right to livelihood of the peoplePriyank Kharge, RDPR minister—