Karnataka Rural Development Minister Priyank Kharge said any law imposing additional financial responsibility on States must involve prior consultation.

Karnataka Rural Development Minister Priyank Kharge said any law imposing additional financial responsibility on States must involve prior consultation.
| Photo Credit: SPECIAL ARRANGEMENT

 

Karnataka’s Rural Development and Panchayati Raj Minister Priyank Kharge on Sunday (January 25, 2026) said that the Centre did not consult States before or after “increasing their financial burden” under the new rural employment legislation that replaces the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). 

Speaking to The Hindu, the Minister said, “The Union Government has made no effort in speaking to the State Government to explain the provision of the new law. We are awaiting clarifications on what ‘notified areas’ and ‘normative budget’ would entail.” 

Parliament passed the Bill amid opposition protests on December 19. “Their efforts have so far been to explain how ‘Ram’ fits into their new law. They could have called it ‘Nathuram’ if it protected workers’ rights,” Mr. Kharge added. 

‘No prior consultation’

The Minister argued that any law imposing additional financial responsibility on States must involve prior consultation. “Whenever a financial burden is to be shared by States, the Centre should consult them. No such consultations took place in this case. The law states that a State has the right to refuse, and then the Chief Justice of India can appoint an arbitrator between the Centre and the State. In this case, they have made it mandatory without any consultation,” he said, adding, “There was no mention of (this) in the 16th Finance Commission report.”

The Minister said concerns were not limited to Opposition-ruled States, pointing out that the TDP-led government in Andhra Pradesh, a BJP ally, had written to the Centre seeking assistance for implementing the law.

He also criticised the new law for “lacking safeguards for workers”. While the new law increases guaranteed employment from 100 to 125 days, he said it guarantees no work during a 60-day blackout period in the agricultural season. “This exposes workers to exploitation as they may be forced to accept whatever wages are offered during the period.” 

Rejecting the Centre’s claim that MGNREGA was riddled with corruption, he said, “If you have a cold, do you cut off your nose? Instead of addressing corruption, would you replace it (the scheme) entirely?”

‘Centre–State imbalance’

The Minister also linked the issue to a larger pattern of Centre–State imbalance, especially affecting southern States. “Southern States are the economic engines of the country. While our contribution keeps increasing, our share in tax devolution has been declining. The Centre expects us to put our money in everything while chanting the PM’s name in every scheme.”

The new VB‑G Ram G Act introduces several structural changes, including a shift from a demand-driven model to a supply‑driven model, a 60:40 Centre–State funding share, allowing only “notified areas”, and the introduction of a blackout period.

These changes have drawn criticism for allegedly weakening the rights‑based framework of the MGNREGA. 


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