Kerala Assembly passes resolution demanding withdrawal of VB-G RAM G Act and restoration of MGNREGS

The Kerala Assembly on Thursday (February 5, 2026) passed a resolution demanding that the Union government restore the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) framework by withdrawing the Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB–G RAM G).

“VB-G RAM G entails severe financial burden on the States. With its introduction, the rights-based approach that was the essence of the existing (MGNREG) scheme has vanished,” said the resolution presented by Minister for Local Self-Government M.B. Rajesh. Under the new system, it falls upon the States to provide unemployment wages and compensation for delayed payment of wages, it said.

While the Centre retains the power to decide the share of the States, the latter are held fully responsible for the additional burdens arising from the scheme, the resolution said. Under VB-G RAM G, the Centre would set a ‘normative allocation,’ 40% of which would be borne by the States. The complete responsibility of all working days beyond this allocation has to be borne by the States. It is estimated that Kerala would incur an additional burden of ₹3,500 crore on account of this new condition, the resolution said.  

The resolution was passed amid Opposition protests in the House over the Sabarimala gold theft issue.

In Kerala, 40.45 lakh families are part of the MGNREGS. Of this, 22.66 lakh workers from 19.43 families are considered fully active in it. Kerala has been taking steps to ensure that they get maximum opportunities for work and that their livelihood prospects are improved. The figures for 2024-25 show that against the national average of 50.23 man-days, Kerala had provided 66.17 man-days, the resolution said.

The State has also been providing benefits over and above the national-level scheme. It had launched the ‘Tribal Plus’ scheme which ensures an extra 100 days of guaranteed employment to the tribal population. The festival allowance of ₹1,000 being issued to families that had completed 100 working days was increased to ₹1,200 in 2025-26, it said.

Kerala was the first State to create a welfare board for MGNREGs workers. Further, the State established the Ayyankali employment guarantee scheme for workers in urban areas and brought them under the welfare fund, the resolution noted.

The Union government had replaced MGNREGS when it had already placed hurdles before the State by running up arrears on its share under the scheme, the resolution said.