Union Minister H D Kumaraswamy has firmly dismissed concerns raised by Karnataka Chief Minister Siddaramaiah regarding the financial implications of a new central law. Addressing a press conference, Kumaraswamy assured that states would receive additional funds under the VB-G RAM G Act, countering claims that the legislation passes the financial burden of employment schemes onto state governments.
Clarification on Financial Burden
During the press interaction held on 10 January 2026, Kumaraswamy directly addressed the criticism from the Karnataka Chief Minister. He stated that the design of the VB-G RAM G Act is supportive of state finances, not detrimental. The minister emphasized that the central government's framework ensures enhanced fiscal support, aiming to bolster state-run employment initiatives rather than strain their budgets.
The Core of the Dispute
The controversy emerged after CM Siddaramaiah voiced apprehensions that the newly enacted law would force states to shoulder a heavier financial load for implementing employment guarantee schemes. Kumaraswamy's rebuttal sought to clarify the act's provisions, highlighting its role as a mechanism for resource augmentation. He presented the act as a tool for cooperative federalism, where the centre and states work in tandem with increased central funding.
Implications for Karnataka and Other States
Kumaraswamy's assurance is significant for states like Karnataka, which are major implementers of social welfare and employment programs. His statements aim to allay fears of unfunded mandates and potential budgetary shortfalls. The clarification underscores the ongoing dialogue between the central and state governments regarding fund allocation and scheme implementation, a critical aspect of India's governance structure. The minister's press conference has put the focus back on the detailed financial architecture of the VB-G RAM G Act and its promised benefits for state coffers.
