Experts: G-RAM-G may cost Karnataka s 2.1k crore more | Bengaluru News

Bengaluru: Karnataka will have to spend about Rs 2,100 crore more annually to generate the same level of rural employment under the proposed Grama Rozgar and Mahatma Gandhi (G RAM G) scheme as it did under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), economists and members of the NREGA Sangharsh Morcha said Friday.The higher outlay is attributed to the state’s contribution rising from 10% under MGNREGA to 40% under G RAM G. Based on this change, experts estimated that Karnataka would need an additional Rs 2,100 crore to sustain employment at last year’s level. Of the 80.9 lakh registered households, only 36% availed work, with average employment at 45 days per household. Of the Rs 6,824 crore spent under MGNREGA in Karnataka, the Centre spent Rs 6,251 crore and the state spent Rs 573 crore in 2024-25. With the G RAM G in place now, for the same quantum of work, the Centre would spend Rs 4,095 crore while the state need to contribute Rs 2,100 crore.The NREGA Sangharsh Morcha announced plans to hold statewide consultations and protests over the next two months, seeking a rollback of G RAM G.Senior economist and former IIM-B faculty member Vinod Vyasulu said the financial burden would rise sharply if full coverage was ensured. “If all 80.9 lakh registered households are provided 125 days of work under G RAM G, the state would need to spend nearly Rs 20,000 crore a year,” he added.Vyasulu said the added burden comes at a time when the state has limited avenues to raise its own revenue and depends largely on GST and income-tax devolution and transfers from the Centre, which could affect funding for other welfare schemes. Beneficiaries and labour groups said replacing MGNREGA would depress rural wages and accelerate migration.Suvarna Kuthale of Jagrutha Mahila Okkoota, Khanapur, said women accounted for about 80% of MGNREGA workers in her village. “MGNREGA ensured equal wages for men and women and gave workers a legal right to demand employment. While farm labour pays Rs 150–200 a day, MGNREGA pays Rs 370. A moratorium during peak agricultural seasons has weakened workers’ bargaining power,” she said. She added the decentralised structure of MGNREGA allowed panchayats to take up local works such as playgrounds and canal desilting for irrigation.Nikhil Dey, founder-member of Mazdoor Kisan Shakti Sangathan, said G RAM G prioritises large infrastructure projects aligned with national development programmes, while neglecting essential local works such as connecting marginalised habitations to basic services. He warned this could lead to renewed distress migration.Mahantesh of the Gramin Coolie Karmikara Sanghatane, Raichur, said MGNREGA had earlier reduced migration from the region. “In recent years, delays in wage payments have again pushed workers towards low-paying urban jobs,” he said.Experts cautioned that villages that had earlier seen large-scale migration could once again face depopulation if rural employment opportunities decline.Advocate Clifton Rosario said agricultural unions will hold meetings on Jan 5 on the issue, while trade unions plan to oppose G RAM G during the nationwide mobilisation against labour codes on Feb 12.