Siddaramaiah Writes to PM Modi Opposing New Rural Employment Law

Karnataka Chief Minister Siddaramaiah has written to Prime Minister Narendra Modi opposing the proposed Viksit Bharat–Guarantee for Rozgar and Ajeevika Mission (Gramin) Act and the move to repeal the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA).

He said the proposed framework dilutes the demand-driven and rights-based character of the existing rural employment guarantee scheme.

In his letter dated December 30, Siddaramaiah acknowledged that the proposed law promises to increase guaranteed employment from 100 to 125 days. However, he raised concerns over the lack of assured central funding.

Under the new framework, the Union government's contribution would be capped at a centrally notified normative allocation, with the Centre bearing only 60 percent of the cost in most states.

The Chief Minister said the shift from a 90:10 to a 60:40 Centre-State funding pattern would place an additional financial burden on states already under fiscal stress. He warned that this could turn a statutory right into a supply-driven scheme, diluting the principle of employment on demand.

Siddaramaiah warned that if demand overshoots the allocation fixed by the Centre, States could be forced to shoulder the entire financial burden. He said this would effectively make the employment guarantee scheme contingent on a State's fiscal capacity, rather than on demand at the village level.

He also objected to provisions allowing the Center to determine annual state-wise allocations without clearly defined parameters, saying this undermines decentralisation and violates the spirit of the 73rd Constitutional Amendment.

The Chief Minister expressed concern over the provision mandating suspension of works for 60 days during peak agricultural seasons. He warned that this could adversely impact vulnerable communities, reduce women's participation in rural employment and increase distress migration.

Siddaramaiah said the act was introduced without constitutionally mandated consultation with state governments, calling it a violation of cooperative federalism. He urged the prime minister to suspend its implementation and initiate consultations with states.

He also criticised the removal of Mahatma Gandhi's name from the employment guarantee law, stating that it weakens the symbolic and foundational values of the scheme.