Karnataka Seeks Changes to New Rural Employment Scheme Before July 1 Rollout
Karnataka's government is pushing back against several provisions of the new VB-G RAM G rural employment scheme set to launch nationwide on July 1, 2025, including the 60:40 funding model and minimum wage rates. The state, along with three others, has not yet submitted required procedural details and argues the current funding arrangement places excessive fiscal burden on states already under financial stress. The outcome of these negotiations will affect how the ₹95,692 crore national scheme is implemented and whether states can adapt it to local employment needs.
Karnataka's Rural Development Minister Eshwar Khandre has outlined the state's concerns with the Viksit Bharat - Guarantee for Rozgar and Ajeevika Mission (Gramin) Act ahead of its July 1 rollout. The state is requesting an 80:20 funding model instead of the proposed 60:40 arrangement, which would require Karnataka to contribute approximately ₹3,800 crore—a burden the minister argues is unsustainable given existing fiscal pressures. Additionally, Karnataka wants the Union government to account for its recent 60% average increase in minimum wages when setting scheme wages, and has objected to a proposed 60-day pause window for work suspension, arguing it contradicts the continuous livelihood support model established under MGNREGA since 2006. The state is also seeking greater autonomy in selecting works based on local needs rather than solely national priorities set by the Union government. Karnataka is among four states—including Mizoram, Telangana, and Jharkhand—that have not yet submitted procedural details to the Centre.
What different sources said
- The HinduCenter
VB-G RAM G: State to push for revised minimum wages, seek 80:20 funding model
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