The Karnataka government is on the verge of a major confrontation with the Centre over rural employment, with state ministers declaring they are seriously considering rejecting the newly launched Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Grameen), or G-RAM-G. This central scheme has replaced the long-standing Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). Instead, the state is exploring the possibility of rolling out its own independent rural employment guarantee programme.
Cabinet Unites in Condemnation of Centralisation
Following a crucial meeting on Friday, the state cabinet issued a strong condemnation of the G-RAM-G framework. Law and Parliamentary Affairs Minister H K Patil stated that the Cabinet was united in its opposition, labelling the new law an attempt to centralise all projects. "The Cabinet condemned G-RAM-G, which has snatched the right to work from the people of this country and is a big blow to the federal structure of the nation," Patil said. He argued that the issue goes beyond a mere name change from MGNREGA; the core problems are the centralisation of power and the reduction of work opportunities for those in need.
Financial Burden and Impact on Local Governance
A key point of contention is the revised funding model. Under the G-RAM-G, state governments are mandated to contribute 40% of project costs, a significant shift from the previous arrangement. Minister Patil criticised this, suggesting the act is designed to benefit central government contractors by providing them with labour while offloading financial responsibility. "This act is nothing but an attempt to help Central govt contractors by providing them with labour while reducing their own burden," he asserted.
Patil further warned that the new law would deal a severe blow to gram panchayats, adversely affecting grassroots development and local decision-making. The move towards centralisation strips away the autonomy of local governing bodies, which were instrumental in planning and implementing works under MGNREGA based on local needs.
The High Cost of State Autonomy
Choosing to go it alone with a state-run scheme would come at a substantial financial cost. Government sources indicate that Karnataka would have to forgo 60% of Central funding available under G-RAM-G. To understand the scale, in the financial year 2024-25, Karnataka received Rs 5,580 crore from the Centre under MGNREGA, which provided work for approximately 21.2 lakh households. If the state opts out of G-RAM-G, the effective central funding would plummet to around Rs 3,720 crore, with the state bearing the full additional burden.
Despite this, the sentiment within the cabinet is leaning towards prioritising employment. A cabinet minister noted, "If we are to save the jobs of our rural households, such an action may be necessary." The state is also considering lobbying the Centre to relax norms on permissible works and increase its share of funding as an alternative path.
Noting that the G-RAM-G falls under the Concurrent List, which allows both centre and states to legislate, Patil confirmed the state is weighing its options. The final decision and detailed alternative plan will be outlined by Chief Minister Siddaramaiah at a press briefing scheduled for Saturday, setting the stage for a significant policy announcement.
