The Karnataka Assembly on Tuesday passed a resolution urging the central government to repeal the Viksit Bharat-Guarantee for Income and Ajeevika Mission (Rural) Act, 2025 and reinstate the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) in its original form, officially setting records against new recruitment houses.
Karnataka government has brought resolution to reinstate MGNREGA”In order to protect the right to life of the rural people of Karnataka, this House urges the Central Government to immediately repeal the Income and Ajivika Mission (Rural) (VB-Gram-G) Act,” Chief Minister Siddaramaiah said while introducing the resolution. The state cabinet had earlier decided not to adopt the new law and seek legal remedies.
The chief minister framed the issue as one affecting constitutional rights, fiscal federalism and the autonomy of grassroots democratic institutions. The resolution asserts that the new law undermines decentralization, imposes financial pressure on the state and reduces the power of gram panchayats.
The assembly document described MGNREGA as the cornerstone of rural economic security, crediting the program with wealth creation and strengthening self-reliance among poor households. Legislators supporting the proposal termed its removal as a direct hit to village livelihoods.
“This House seriously considers the repeal of MGNREGA, which has been a lifeline (life-giving substance) for the rural poor and an integral part of rural life,” the resolution said. “This House strongly opposes this move by the Centre.”
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The resolution noted that under MGNREGA, the Center covers the full wage cost for 100 days of guaranteed work. On the other hand, the new law which provides for 125 days of employment but requires states to bear 40% of the financial burden, effectively shifts a significant portion of the cost of wage payment to state governments. It described the additional fiscal responsibility under the new law as a threat to the economic security and development of the state.
Citing Articles 258 and 280, it argues that the changed funding structure disrupts the federal balance by altering the fiscal relationship between the Center and the states and imposes new liabilities at a time when the share of central tax shifting fluctuates on successive Finance Commission recommendations in Karnataka.
According to figures cited in the resolution, Karnataka’s proposed share has come down from 4.71% under the 14th Finance Commission to 3.64% under the 15th. Although the 16th Finance Commission proposed 4.13%, the state claimed that the transfer was still below the previous level.
Further, the resolution claimed that centralized planning under the new structure reduces the role of gram sabhas and limits the discretion of panchayats in choosing tasks based on local needs. It said implementation is limited to panchayats selected by the Centre, leaving others out of the employment net.
“There is no guarantee that all Gram Panchayats will be covered under the VB-GRAM-G Act and there is no certainty or assurance about the rate of wages paid to the workers…This is an attempt to push the rural wage laborers into modern slavery,” the resolution said, adding that the transfer goes against the principles of Gram Swaraj.
Members of the opposition Bharatiya Janata Party objected during the proceedings, arguing that the wording of the resolution suggested the entire House oppose the legislation. Leader of Opposition in the Assembly R Ashok said, “Don’t say the House strongly opposes it, say the Congress opposes it. Some members also raised allegations of misuse of earlier schemes and criticized the passage of the Act’s name. (G of RAM G?) The resolution was summarized in the text.
