New Viksit Bharat Act dismantles MGNREGA, Siddaramaiah warns Modi

Karnataka CM Siddaramaiah has urged PM Modi to suspend the new Viksit Bharat Act, warning that the law, which repeals MGNREGA, dismantles the rights-based framework, undermines federalism, and places an unsustainable fiscal burden on states.

Karnataka Chief Minister Siddaramaiah on Tuesday wrote to Prime Minister Narendra Modi seeking the suspension of the newly enacted Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, warning that the law dismantles the rights-based, demand-driven framework of MGNREGA and undermines federalism, decentralisation and rural livelihood security.

Raising serious constitutional, fiscal and social concerns, Siddaramaiah has urged PM Modi to halt the implementation of the Act, which repeals the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA).

CM Highlights Flaws in New Act

In a detailed letter, the Chief Minister argued that while the new law increases the promised employment guarantee from 100 to 125 days, it weakens the core principle of a demand-driven legal entitlement. He pointed out that the Centre has capped its liability through "normative allocations" for notified areas, with only 60 per cent central funding in most States, making the guarantee conditional rather than absolute.

Shift from Demand-Driven to Top-Down Model

The CM cautioned that State-wise allocations will now be determined annually by the Union government based on parameters not defined in the legislation, which can be altered unilaterally. This, he said, converts a bottom-up system--where labour demand originates from Gram Panchayats--into a supply-driven, top-down model aligned with centrally planned frameworks like the PM Gati Shakti Master Plan, diluting the spirit of the 73rd Constitutional Amendment.

New Funding Pattern Burdens States

Siddaramaiah also criticised the shift in the funding pattern from the existing 90:10 Centre-State sharing under MGNREGA to 60:40, warning that it places an unsustainable burden on States already under fiscal stress due to issues like GST compensation and reduced financial devolution. Any expenditure beyond the Centre's notified allocation, the CM noted, would be borne entirely by States, effectively making the right to work dependent on State finances.

Concerns Over Work Restrictions

Expressing concern over provisions barring work for 60 days during peak agricultural seasons, the CM said this could harm vulnerable groups, reduce women's participation, depress wages and increase distress migration.

'Erosion of Moral and Constitutional Foundation'

Calling MGNREGA a globally acclaimed, rights-based law embodying Mahatma Gandhi's vision of Gram Swaraj and Antyodaya, the Chief Minister said removing Gandhi's name and weakening the guarantee erodes its moral and constitutional foundation. He urged immediate consultations with States to protect the right to livelihood and cooperative federalism.

About the New Viksit Bharat Act

President Droupadi Murmu gave assent to the Viksit Bharat--Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB--G RAM G) Bill, 2025, marking a significant milestone in the transformation of rural employment policy. The Act enhances the statutory wage employment guarantee to 125 days per financial year for rural households.

It seeks to advance empowerment, inclusive growth, convergence of development initiatives and saturation-based delivery, thereby strengthening the foundation for a prosperous, resilient and self-reliant Rural Bharat. The Act replaces the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) with a modern statutory framework that enhances livelihood security and is aligned with the national vision of Viksit Bharat @2047. (ANI)

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