Kerala’s Minister for Local Self Governments, M B Rajesh, has said the Union Government’s new Bill on the rural job guarantee scheme is a blatant move to run away from its financial responsibility.
The NDA government’s Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) or VB-G Ram G Bill, 2025, proposes to replace the Mahatma Gandhi National Rural Employment Guarantee (MGNREG) Act, 2005.
Referring to the proposal in the bill that states should bear 40 per cent of the cost of the project, the Kerala minister said this will cause an additional burden on the state and cannot be accepted at any cost.
“If the cost-sharing formula is implemented, Kerala will incur an additional burden of Rs 2,000 crore in a year. At present, the states have to bear 40 to 50 per cent of the cost of several central government projects. MGNREGS is the only centrally sponsored project which is fully funded by the Union Government. Asking the states to share 40 per cent of the cost of this project is tantamount to looting the state, which is already in financial crisis due to the policies of the NDA government at the Centre,” he said.
The minister, also a senior CPI(M) leader, said the new bill is part of an agenda to dismantle the scheme itself. “MGNREGS is a demand-driven project. However, the Centre has been bringing down the budget allocation every year to kill this crucial aspect of the scheme.”
The minister said Kerala has been implementing the job guarantee scheme in an efficient and transparent manner. “In many parameters, Kerala had ranked top among Indian states,” he said.
He also questioned why the Centre is fixing the norms when the financial liability is on the states. “The stand of the union government is that they will fix the conditions of the project, and the states should find resources. This cannot be accepted,” he said.