VB-G RAM G funding draws criticism from NDA partners too: Siddaramaiah

Karnataka Chief Minister Siddaramaiah on Friday said the funding pattern under the VB-G RAM G Act marks a sharp departure from the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) and is straining Centre–State fiscal relations.

Referring to reports that Andhra Pradesh Chief Minister N Chandrababu Naidu has conveyed concerns to the Union government over the financial sustainability of the new rural employment law, Siddaramaiah said the issue assumes significance as it comes from a key ally of the BJP-led NDA.

Under MGNREGA , rural employment was a statutory right supported by assured central funding , with the Union government bearing wage costs and states sharing limited administrative expenses, he said.

“In contrast, the VB-G RAM G Act requires states to implement the programme while sharing the financial burden, without any statutory guarantee of central funds,” Siddaramaiah said, adding that what was earlier a guaranteed entitlement has been reduced to a discretionary arrangement.

He said the altered funding structure places additional fiscal pressure on states and weakens cooperative federalism by making access to funds dependent on negotiations rather than law.

Siddaramaiah warned that when chief ministers are compelled to seek financial support through private discussions, it raises concerns that allocations could be influenced by political alignment, adversely affecting Opposition-ruled states, including Karnataka.

According to media reports cited by Siddaramaiah, Andhra Pradesh Chief Minister Naidu has flagged the additional burden on states under the new framework and sought assistance from the Centre for its implementation. However, Naidu has not issued a detailed public statement outlining his objections.

The Karnataka Chief Minister said if NDA partners find the new funding framework unsustainable, the concerns must be raised openly in Parliament and not addressed through selective concessions.

He reiterated the Congress demand that the VB-G RAM G Act be repealed and MGNREGA restored with necessary reforms , asserting that rural employment security cannot be converted into a negotiable fiscal arrangement.