Congress Accuses Modi Govt of Weakening MGNREGA, Shifting 40% Cost to States
Congress: New Act Shifts MGNREGA Burden to States

Senior Congress leader Vijay Inder Singla has launched a sharp attack on the Narendra Modi-led central government, accusing it of systematically undermining the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). The allegation was made during a press interaction in Mangaluru on Monday.

From Demand-Driven to Supply-Driven: A Fundamental Shift

Singla, a member of the Congress Working Committee, stated that the central government is effectively tightening funds for the crucial rural employment scheme. He explained that the Centre has transformed MGNREGA from a demand-driven programme with uncapped funding into a supply-driven one with fixed budgets. This fundamental change, he argued, pushes a significant portion of the financial responsibility onto state governments.

The crux of the issue lies in the newly enacted Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, or VB-G RAM G Act. This legislation replaces the old model. "Now the MGNREGA has been shifted to the 40:60 cost-sharing model, transferring the financial burden on states," Singla emphasized. He contrasted this with many other Central government schemes that operate on a 10:90 cost-sharing ratio.

Funding Crunch and Unfulfilled Promises

Singla questioned the feasibility of the new Act's promises without adequate central funding. "How can the BJP claim that the VB-G RAM G Act would increase guaranteed man-days of job from 100 days to 125 days without sufficient funding?" he asked reporters. He asserted that generating employment under the scheme would not be possible without robust central support.

The Congress leader alleged a long-standing intent to dilute the scheme. "The Modi govt wanted to scrap the MGNREGS by reducing the budgetary allocation ever since it came to power. However, the funding was restored later only due to the pressure from the opposition," he claimed.

States to Bear the Brunt, Protests Planned

Outlining further operational hurdles, Singla pointed out that under the VB-G RAM G Act, proposals must be submitted only once a year, with the Centre holding sole discretion over funding decisions. He predicted strong opposition from states. "The state govts would oppose the new Act as they are required to bear 40% of the cost. Those minor works that were carried out earlier under the MGNREGS will not be possible under the new Act," he stated.

When asked about the legislative process, Singla confirmed that opposition members had opposed the bill immediately after it was tabled in Parliament. "With the govt having a majority, it has already been passed in both houses of Parliament and it has received the assent of the President," he said. Despite this, he announced that the opposition will carry out protests across the nation against the new Act.

During the press conference, Singla also touched upon the National Herald case, accusing the Union government of misusing investigating agencies. He noted that while the Delhi Police registered cases based on an ED complaint, a Delhi court had refused to take cognisance of the chargesheet against senior Congress leaders.

On being queried about the internal power dynamics within the Karnataka Congress, Singla declined to comment.