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Siddaramaiah Raises Alarm Over New Rural Jobs Law, Urges PM Modi to Suspend 'VB-G RamG Act'

The Karnataka leader also criticized the act for centralizing power in the Union government, reducing states' flexibility in implementation and imposing additional financial liabilities. Under MGNREGA, the Centre funds 100% of wages for unskilled labor and 75% of material costs, with states covering the rest. The new law, however, caps central funding and shifts more responsibility to states, potentially straining federalism and local budgets, according to the CM.
31 December 2025 by
Siddaramaiah Raises Alarm Over New Rural Jobs Law, Urges PM Modi to Suspend 'VB-G RamG Act'
TCO News Admin
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Bengaluru, December 31, 2025 – In a strongly worded letter to Prime Minister Narendra Modi, Karnataka Chief Minister Siddaramaiah has flagged a "red alert" on the newly introduced VB-G RamG Act, warning that it effectively repeals the flagship Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) and undermines the constitutional right to work for millions of rural poor.

The VB-G RamG Act – widely interpreted as the Viksit Bharat-Garibi RamG Employment Guarantee Act – was recently passed by Parliament amid controversy, replacing the 2005 MGNREGA law that guarantees 100 days of wage employment to every rural household. Siddaramaiah, in his missive dated December 29, described the move as an "erosion of employment rights" and a shift from a rights-based framework to a capped, centrally controlled scheme that disproportionately burdens states.

### Key Concerns: Dilution of Rights and Fiscal Strain
Siddaramaiah highlighted several provisions in the new act that he believes dilute the spirit of MGNREGA. Chief among them is a clause barring employment for up to 60 days during peak agricultural seasons, which the CM argues could exacerbate distress among landless laborers, small farmers, and marginalized communities like Scheduled Castes and Tribes. "This is not just a policy shift; it's an assault on the livelihoods of the most vulnerable," Siddaramaiah stated in the letter, emphasizing that the restriction ignores the seasonal nature of rural economies.

The Karnataka leader also criticized the act for centralizing power in the Union government, reducing states' flexibility in implementation and imposing additional financial liabilities. Under MGNREGA, the Centre funds 100% of wages for unskilled labor and 75% of material costs, with states covering the rest. The new law, however, caps central funding and shifts more responsibility to states, potentially straining federalism and local budgets, according to the CM.

Furthermore, Siddaramaiah accused the Centre of attempting to "erase Mahatma Gandhi's legacy" by repealing the act named after the Father of the Nation. "Very clearly, MGNREGA has been repealed. If you read the bill, it says MGNREGA and all its notifications stand repealed," echoed Congress leader and Rajya Sabha MP Mallikarjun Kharge in a recent statement, amplifying the party's narrative of cultural and ideological erasure.

### Political Backlash and Planned Agitation
The opposition has swiftly mobilized against the legislation. Deputy Chief Minister D.K. Shivakumar, a key Congress figure, has vowed to lead statewide protests, calling the act a "scheme to kill MGNREGA" by stealth. On December 27, Shivakumar met with Kharge in Delhi, fueling speculations of internal party discussions on counter-strategies, though sources clarified the focus was solely on the jobs bill.

In a major escalation, the Congress party announced a nationwide stir starting January 5, 2026, dubbed the "Save MGNREGA" campaign. The agitation, to be led by Siddaramaiah and other senior leaders, will include dharnas, rallies, and worker marches across rural districts, demanding the suspension of the VB-G RamG Act and restoration of the original law.

Karnataka, which has been a top performer in MGNREGA implementation – generating over 10 crore person-days of work in FY 2024-25 alone – stands to lose significantly if the new act is enforced without amendments. The state government claims the scheme has been a lifeline during droughts and pandemics, lifting rural wages and reducing migration.

### Centre's Silence and Broader Implications
As of December 31, the Prime Minister's Office has not responded to Siddaramaiah's letter, though BJP leaders in Karnataka dismissed the criticisms as "election rhetoric" ahead of the 2028 assembly polls. Proponents of the VB-G RamG Act argue it modernizes rural employment by integrating skill development and infrastructure projects, aligning with the Viksit Bharat vision, but critics like Siddaramaiah counter that it prioritizes optics over equity.

The controversy underscores deepening fault lines in Centre-state relations under the NDA government, particularly on social welfare schemes. With rural distress already a flashpoint – evidenced by farmer protests and rising unemployment – the fate of the new law could shape the political discourse in the new year. As Siddaramaiah put it, "This is not just about jobs; it's about justice for India's villages."

This report is based on official statements, legislative texts, and statements from political leaders. Further developments are awaited.

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Siddaramaiah Raises Alarm Over New Rural Jobs Law, Urges PM Modi to Suspend 'VB-G RamG Act'
TCO News Admin 31 December 2025
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