Karnataka awaits clarity with Rs 2,475-crore budget for MGNREGA

The Congress-governed Karnataka has earmarked Rs 2,475 crore in the new fiscal for the discontinued Mahatma Gandhi National Rural Employment Act (MGNREGA) even as there is no clarity on the way forward.

The new Viksit Bharat - Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G) Act has replaced the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA).  

“There is zero clarity,” Rural Development and Panchayat Raj (RDPR) Minister Priyank Kharge told DH on when and how the VB-G RAM G Act will be implemented.

The Congress government had mounted a big offensive against the Union government over the scrapping of MGNREGA. 

“As the sun sets on March 31, MGNREGA, a two-decade lifeline for rural India, will quietly come to an end. Come April 1, VB-GRAM G is to take over, but there are no rules yet. No clarity on fund allocation,” the minister said in a tweet. 

The only update from the Union government so far is that the state has been asked to provide information on pendencies under MGNREGA. 

The Union government owes the state Rs 1,943.66 crore. This includes Rs 276 crore of wages, Rs 1,607.61 crore towards materials and Rs 59.73 crore on administrative expenses.

The Union government has not spelt out the final parameters for classifying gram panchayats through which rural employment is provided, Priyank said. “Even core processes like social audits remain undefined.”

Priyank warned of a “silent crisis unfolding in rural India” ahead of summer. “This vacuum will hit at the worst possible time. These are peak demand months for rural work,” he said.

“Reports from the ground point to stalled works, delayed approvals and households not receiving employment despite demand,” Priyank said. 

“The shift from a legal guarantee to a norm-based allocation has already begun to show its impact. On top of this, a mandated 60-day suspension during key agricultural periods will further restrict access to work,” he said.

At one point in time, the Congress government considered rolling out its own rural employment scheme on the lines of MGNREGA. However, this is now off the table. 

“I’m capable of generating 16 crore persondays of work. But this will need Rs 7,000-8,000 crore,” Priyank said.