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Karnataka govt moves resolution to reinstate MGNREGA
Karnataka Assembly urges the central government to repeal the new rural employment law and restore MGNREGA, citing concerns over rural livelihoods and fiscal strain.
The Karnataka Legislative Assembly on Tuesday passed a resolution urging the central government to repeal the Viksit Bharat–Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025, and reinstate the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) in its original form, formally placing the House on record against the new rural employment framework.
“With a view to protecting the right to life of the rural people of Karnataka, this House urges the Central Government to immediately repeal the Rozgar and Ajeevika Mission (Gramin) (VB-Gram-G) Act,” chief minister Siddaramaiah said while introducing the resolution. The state cabinet had earlier decided not to accept the new law and to pursue legal remedies.
The chief minister framed the issue as one affecting constitutional rights, fiscal federalism and the autonomy of grassroots democratic institutions. The resolution asserted that the new law undermines decentralisation, imposes a financial strain on the state and curtails the powers of gram panchayats.
The assembly document described MGNREGA as foundational to rural economic security, crediting the program with asset creation and strengthening self-reliance among poor households. Lawmakers backing the motion characterised its removal as a direct blow to village livelihoods.
“This House takes serious note of the cancellation of MGNREGA, which was a Sanjeevini (life-giving substance) for the rural poor and an integral part of rural life,” the resolution stated. “This House strongly opposes this move of the Centre.”
The resolution noted that under MGNREGA, the Centre covered the full wage cost for 100 days of guaranteed work. Whereas, the new law that provides for 125 days of employment but requires states to bear 40% of the financial burden, effectively shifting the cost of a substantial portion of wage payments to state governments. It described the added fiscal responsibility under the new law as a threat to the state’s economic security and development.
Citing Articles 258 and 280, it argued that the altered funding structure disrupts the federal balance by changing financial relations between the Centre and states, and imposes new liabilities at a time when Karnataka’s share of central tax devolution has fluctuated across successive Finance Commission recommendations.
According to figures cited in the resolution, Karnataka’s recommended share fell from 4.71% under the 14th Finance Commission to 3.64% under the 15th. While the 16th Finance Commission suggested 4.13%, the state contended that the devolution still remains below earlier levels.
Further, the resolution contended that centralised planning under the new framework reduces the role of gram sabhas and limits panchayats’ discretion in choosing works based on local needs. It stated that implementation is confined to panchayats selected by the Centre, leaving others outside the employment net.
“There is no certainty that all Gram Panchayats will be included under the VB-GRAM-G Act and there is no certainty or assurance about the wage rate paid to the workers....It is an attempt to push rural wage labourers into modern slavery,” the resolution said, adding that the shift runs counter to the principle of Gram Swaraj.
Opposition Bharatiya Janata Party members objected during proceedings, arguing that the resolution’s wording suggested the entire House opposed the law. “Don’t say the House strongly opposes this, say Congress opposes it,” said leader of the opposition in the assembly R Ashok. Some members also accused the earlier scheme of misuse and criticised the way the law’s name (OF G RAM G?) was abbreviated in the resolution text.
