Karnataka Rejects Centre's New Rural Employment Act, Plans Legal Challenge | Quick Digest

Karnataka Rejects Centre's New Rural Employment Act, Plans Legal Challenge | Quick Digest
Karnataka has decided against implementing the Centre's new Viksit Bharat–Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G) Act, which replaced MGNREGA. The state government plans to challenge the law in court, citing constitutional concerns. This comes amidst nationwide protests launched by the Congress party.

Karnataka rejects Centre's new VB-G RAM G Act, replacing MGNREGA.

State cabinet unanimously decided against implementation, plans legal challenge.

Act criticized for centralizing power, increasing state financial burden.

Congress launched 'MGNREGA Bachao Sangram' nationwide from January 10.

Karnataka CM Siddaramaiah calls new law 'unconstitutional', attacks Centre.

State to hold joint legislative session to discuss and create awareness.

The Karnataka government has firmly decided not to implement the Union government's new Viksit Bharat–Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G) Act, 2025, which recently replaced the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005. This decision was unanimously taken at a state cabinet meeting held around January 8, 2026, with the government also announcing plans to challenge the new law in court. Karnataka Chief Minister Siddaramaiah has been a vocal critic of the VB-G RAM G Act, labeling it 'unconstitutional' and an 'assault on federalism' and decentralization by curtailing the powers of Gram Sabhas and Gram Panchayats. The state's Law and Parliamentary Affairs Minister, H.K. Patil, stated that the new Act undermines the constitutional right to work and livelihood and significantly increases the financial burden on states, requiring them to contribute 40% of the scheme's cost, unlike the earlier fully centrally-funded MGNREGA. Concurrently, the Indian National Congress, the leading opposition party, launched a nationwide 'MGNREGA Bachao Sangram' (Save MGNREGA Campaign) from January 10 to February 25, 2026, to protest the new legislation and demand the restoration of MGNREGA in its original form. This campaign includes various forms of agitation across panchayat, block, district, and state levels. To further deliberate on the issue and raise public awareness, the Karnataka cabinet also decided to convene a joint session of the state legislature from January 22 to January 31, 2026. This session will primarily focus on discussing the implications of the VB-G RAM G Act and charting a course to pressure the Centre for the restoration of MGNREGA. The Union government, however, defends the VB-G RAM G Act, stating it modernizes rural employment guarantees, strengthens accountability, and links employment creation with long-term infrastructure and climate resilience goals, and guarantees 125 days of wage employment, up from 100 days under MGNREGA.
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