The “objective parameters” for the fund allocation under VB-G RAM G are neither “objective nor fair”, the new rural employment law relies excessively on technology and lays out no parameters for wage fixation, senior CPI(M) leader Brinda Karat wrote in a letter to Union Rural Development Minister Shivraj Singh Chouhan on Monday (June 29, 2026).

The rules, Ms. Karat said, were notified without any consultation with workers’ organisations or unions. She argued that the rules further strengthened the Union government’s control while reducing the role of States and workers in decision-making.

‘Rank discrimination’

The rules concentrate all decision-making powers in the hands of the Union government. The rule deciding the normative allocation, Ms. Karat said, sets up a framework of “rank discrimination” against workers depending on where they reside. The allocation of funds as per the draft rules will be based on the “horizontal devolution as recommended by the Sixteenth Finance Commission and accepted by the Government of India,” which Ms. Karat pointed out measures how far a State’s per capita GSDP falls short of the wealthiest States which is given a weightage of over 42.5%. The next highest weightage is given to population (17.5%), benefiting larger States. Ms. Karat asked, “What have these criteria to do with rural workers demanding work under the law?”

Normative allocation criteria

Ms. Karat pointed out the contradiction in the rules stating that the entire criteria of normative allocation is “highly objectionable, discriminatory and requires immediate reconsideration”.

Southern states, which have a lower population have been providing the highest number of average days of work. For example, Kerala had provided an average of 66 days of work a year, much higher than the national average. However given the 17% weightage to population, Kerala will be deprived of funds. Tamil Nadu is among the top five States as far as GSDP is concerned. Yet, it has the highest number of active MGNREGA workers. Facts show that the criteria of the Sixteenth Finance Commission has no relevance to the demand for work.

Ms. Karat said, “States which have a high GSDP and a low population will get less funds. Moreover, the Rules state that a portion of the allocations will be given as reward for better performance. Is the right to work to be held hostage to the efficiency or inefficiency of State governments as decided by the Union government?”

The CPI(M) leader also objected to the proposed formula for allocating funds, arguing that it could disadvantage States such as Kerala and Tamil Nadu despite their high participation in rural employment programmes. She criticised provisions relating to wage payments, online registration and e-KYC verification, saying they could exclude large sections of workers who lack access to smartphones or reliable internet connectivity.