Karnataka Budget 2026 | 'Betrayal of rural poor': Siddaramaiah criticises Centre for replacing MGNREGA with VB-G RAM G Act

Karnataka is prepared to take legal recourse to safeguard the rights of its workers, says Chief Minister in his Budget speech

Karnataka Chief Minister Siddaramaiah, in his Budget speech on Friday strongly criticised the Union government's replacement of the MGNREGA with the VB-G RAM G Act, labeling it a dilution of rural rights and a threat to Gram Swaraj.

Terming the move a betrayal of the rural poor, the Chief Minister announced that Karnataka is prepared to take legal recourse to safeguard the rights of its workers.

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Highlighting the "transformative" impact of the scheme since its inception in 2004 by the UPA government, the Chief Minister shared data on its success within the State. He said approximately 182 crore person-days of work have been generated for Karnataka’s rural workforce.

A total of Rs 61,000 crore has been directly paid in wages. Over 77 lakh community assets have been created. In the current year alone, nearly 71 lakh rural households in the State have benefited from the scheme.

Siddaramaiah expressed concern over the replacement of this rights-based framework with the new VB-G RAM G Scheme. He argued that the transition represents a departure from the Gram Swaraj concept championed by Mahatma Gandhi.

He spoke about key concerns that have arisen after the introduction of this scheme: shift away from a demand-driven guarantee toward centrally determined allocations; possible erosion of panchayat-level decision making, contrary to the spirit of the 73rd Constitutional Amendment; increased centralisation of programme design and execution; operational provisions that may enable contractor participation, potentially reducing direct employment opportunities for rural labour; and constraints on timely execution of works due to normative and administrative controls.

"Our government very strongly urges the Central government to restore the earlier framework which empowered panchayats and strengthened rural livelihoods," he said.

Siddaramaiah declared that Karnataka remains committed to pursuing "all appropriate recourse, including legal measures", to uphold the principles of decentralised governance and protect the statutory rights of rural workers.