<p>Bengaluru: <a href="https://www.deccanherald.com/india/karnataka">Karnataka</a> fears receiving lower funding under the new federal scheme for rural jobs, with the Union government planning to rely on the 16th Finance Commission’s devolution formula to decide who gets how much, which may favour larger and poorer states. </p><p>In draft rules for the Viksit Bharat - Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB G RAM G) Act, the Union government has proposed adopting “objective parametres used for horizontal devolution” by the 16th Finance Commission to determine ‘normative allocation’. </p><p>The <a href="https://www.deccanherald.com/tags/congress">Congress</a> government, which opposed the VB G RAM G Act, had flagged uncertainty over ‘normative allocation’ for states. Now that the Centre has provided clarity in the draft rules, the state government is worried. </p><p>“Prosperous states will lose out,” Panchayat Raj Minister Priyank Kharge said, adding that his department was studying the draft rules published by the Centre. </p><p>Under the 16th Finance Commission, Karnataka’s share in the divisible pool of taxes has been fixed at 4.131 per cent. The state had argued for a 5.24 per cent share. States like Uttar Pradesh (17.6 per cent) and Bihar (9.9 per cent) have a bigger share. </p>.Centre notifies draft rules for VB-G RAM G rollout, outlines transition from MGNREGA.<p>Karnataka lost out under the Per Capita GSDP Distance criterion, which carried the highest weightage of 42.5% in the devolution formula. This measured the distance between one state’s per capita GSDP from that of the wealthiest states. </p><p>“If the state’s contribution to the GDP is higher, the allocation under VB G RAM B will be lower,” Priyank said, adding that in Karnataka, most of the contribution happens from Bengaluru, which makes the entire state look good. </p><p>Like other states, Karnataka is already miffed it will have to bear 40% of the cost of VB G RAM G, unlike the now-scrapped MGNREGA in which the Centre bore 90%. This could translate to an additional expenditure of Rs 3,000-4,000 annually for the state. </p><p>On Saturday, Union Rural Development Secretary Rohit Kansal held a meeting with states to review preparedness for the implementation of the VB G RAM G from July 1. </p><p>States have been asked to ensure “adequate” financial allocations for VB G RAM G and formulate their own rules under the Act. Also, states have to prepare an adequate shelf of works through the Yuktdhara portal “duly approved” by the gram panchayats. </p>
<p>Bengaluru: <a href="https://www.deccanherald.com/india/karnataka">Karnataka</a> fears receiving lower funding under the new federal scheme for rural jobs, with the Union government planning to rely on the 16th Finance Commission’s devolution formula to decide who gets how much, which may favour larger and poorer states. </p><p>In draft rules for the Viksit Bharat - Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB G RAM G) Act, the Union government has proposed adopting “objective parametres used for horizontal devolution” by the 16th Finance Commission to determine ‘normative allocation’. </p><p>The <a href="https://www.deccanherald.com/tags/congress">Congress</a> government, which opposed the VB G RAM G Act, had flagged uncertainty over ‘normative allocation’ for states. Now that the Centre has provided clarity in the draft rules, the state government is worried. </p><p>“Prosperous states will lose out,” Panchayat Raj Minister Priyank Kharge said, adding that his department was studying the draft rules published by the Centre. </p><p>Under the 16th Finance Commission, Karnataka’s share in the divisible pool of taxes has been fixed at 4.131 per cent. The state had argued for a 5.24 per cent share. States like Uttar Pradesh (17.6 per cent) and Bihar (9.9 per cent) have a bigger share. </p>.Centre notifies draft rules for VB-G RAM G rollout, outlines transition from MGNREGA.<p>Karnataka lost out under the Per Capita GSDP Distance criterion, which carried the highest weightage of 42.5% in the devolution formula. This measured the distance between one state’s per capita GSDP from that of the wealthiest states. </p><p>“If the state’s contribution to the GDP is higher, the allocation under VB G RAM B will be lower,” Priyank said, adding that in Karnataka, most of the contribution happens from Bengaluru, which makes the entire state look good. </p><p>Like other states, Karnataka is already miffed it will have to bear 40% of the cost of VB G RAM G, unlike the now-scrapped MGNREGA in which the Centre bore 90%. This could translate to an additional expenditure of Rs 3,000-4,000 annually for the state. </p><p>On Saturday, Union Rural Development Secretary Rohit Kansal held a meeting with states to review preparedness for the implementation of the VB G RAM G from July 1. </p><p>States have been asked to ensure “adequate” financial allocations for VB G RAM G and formulate their own rules under the Act. Also, states have to prepare an adequate shelf of works through the Yuktdhara portal “duly approved” by the gram panchayats. </p>
