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States will get additional funds under VB-G RAM G Act: H D KumaraswamyAddressing a press conference, Kumaraswamy dismissed Chief Minister Siddaramaiah’s claims of the new law passing on the financial burden of the employment scheme to the states.
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<div class="paragraphs"><p>H D Kumaraswamy</p></div>

H D Kumaraswamy

Credit: PTI Photo

Bengaluru: Mounting a spirited defence of the Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) or the VB-G RAM G Act, which has replaced MGNREGA, Union Minister for Steel and Heavy Industries H D Kumaraswamy on Saturday said that the new legislation would result in states gaining additional funds to the tune of Rs 17,000 crore.

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Addressing a press conference, Kumaraswamy dismissed Chief Minister Siddaramaiah’s claims of the new law passing on the financial burden of the employment scheme to the states.

“Prime Minister Narendra Modi has corrected MGNREGA’s flaws. The implementation of MGNREGA resulted in workers’ money being looted for years. The new legislation will ensure accountability,” said the union minister.

Counselling the Karnataka government not to adopt a confrontational stance vis-à-vis the Centre on all issues, Kumaraswamy said, “The state is incurring a loss owing to this confrontational attitude. The state government’s ties with the Centre must be dictated by some common sense.”

Accusing Congress of weaving a false narrative around VB-G RAM G Act, Kumaraswamy dismissed suggestions of the new legislation depriving the state and panchayats of authority.

“It is absurd that Congress leaders are finding fault over mistakes being corrected,” said the union minister.

The new law’s stipulation that states bear 40% of the expenditure for the employment scheme was meant to ensure accountability, said Kumaraswamy.

"States must understand their responsibility. They will get an additional Rs 17,000 crore, and everything will be routed through the gram panchayats,” the former chief minister said.

Challenging the Congress party’s accusations that Modi had insulted Mahatma Gandhi, Kumaraswamy said, “The Congress named everything after members of the Nehru family, and betrayed Gandhiji. The Congress has no moral authority to speak about
Gandhi.”

Under the old system, fake receipts were produced, and money looted, said Kumaraswamy.

Flaws in old law fixed 

“These flaws were identified, fixed, and a new structure introduced,” the union minister said.

Responding to Deputy Chief Minister D K Shivakumar’s challenge for an open debate, Kumaraswamy said that both the BJP and the JD(S) leaders would be more than willing to oblige the former. “We are not running away, and are ready for an open debate,” he said.

State BJP president B Y Vijayendra, leader of Opposition in the Assembly R Ashoka, among other leaders, were present at the press conference.

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(Published 11 January 2026, 03:27 IST)