Karnataka to Implement New Rural Job Scheme Amidst Financial Concerns

The Karnataka government has announced its decision to implement the Union government's new rural employment scheme, Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G), starting July 1. This comes even as the state maintains its strong opposition to several provisions of the new law, which replaces the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), and is preparing to challenge it in the Supreme Court. Rural Development and Panchayat Raj Minister Eshwar Khandre stated that the rollout is primarily to safeguard the interests of rural families, women, and other vulnerable sections, ensuring continued employment opportunities. Under the new guidelines, the Centre-State cost-sharing ratio shifts from the previous 90:10 to 60:40, significantly increasing Karnataka's financial responsibility. The state anticipates contributing an estimated ₹3,806 crore out of a total allocation of ₹5,709 crore this year, a substantial increase compared to its contribution under MGNREGA. Karnataka has consistently argued that states were not adequately consulted during the formulation of the new law and that certain provisions, such as restricting employment during the agricultural season, are "anti-farmer." Despite these reservations, Chief Minister D.K. Shivakumar has approved the scheme's implementation to avoid any disruption in employment generation, with the state setting an annual target of 9 crore person-days.