Kerala Assembly Demands MGNREGA Reinstatement, Rejects New Central Law
Kerala Assembly Passes Resolution to Scrap VB-G RAM G Act

Kerala Assembly Unanimously Passes Resolution to Scrap New Central Employment Law

The Kerala Legislative Assembly on Thursday took a decisive stand by unanimously passing a resolution that strongly urges the Union government to immediately withdraw the recently enacted Viksit Bharat – Guarantee for Employment and Livelihood Mission (Gramin) Act, 2025. The resolution emphatically calls for the reinstatement of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) of 2005, citing what it describes as serious financial implications and fundamental concerns about federal principles.

Historical Context and Constitutional Foundation of MGNREGA

While moving the resolution, the house provided detailed historical context, noting that MGNREGA was originally enacted by the first United Progressive Alliance government with crucial support from Left parties. This landmark legislation was established as a rights-based law under Article 41 of the Indian Constitution, specifically designed to ensure employment opportunities and substantially reduce rural poverty across the nation.

The assembly highlighted that MGNREGA contains several critical protections for workers, including guaranteed unemployment allowances if work is not provided within the stipulated timeframe, compensation mechanisms for delayed wage payments, comprehensive medical assistance for workplace accidents, and robust grievance-redress systems featuring ombudsmen and mandatory social audits to ensure transparency and accountability.

Kerala's Exceptional Implementation Record

The resolution presented compelling data about MGNREGA's implementation in Kerala, revealing that 40.45 lakh families are currently enrolled under the scheme throughout the state. Of these, an impressive 19.43 lakh families, comprising approximately 22.66 lakh individual workers, remain actively engaged in the program. Kerala has consistently demonstrated exceptional commitment to maximizing employment days and improving rural livelihoods through this initiative.

During the 2024-25 fiscal year, while the national average stood at 50.23 workdays per household, Kerala achieved a remarkable average of 66.17 days per household, significantly exceeding the national benchmark. Furthermore, the state has introduced innovative supplementary benefits, including the specialized Tribal Plus scheme specifically designed for scheduled tribe families, demonstrating Kerala's tailored approach to rural employment.

Financial Concerns and Federal Implications

Despite what the resolution characterizes as Kerala's successful implementation of MGNREGA, the assembly expressed deep concern that the central government has repeatedly delayed its financial share for the scheme and has now completely replaced the rights-based framework with the new VB-G RAM G legislation. The resolution specifically warned that this new act would impose substantial financial burdens on state governments while simultaneously diluting crucial legal guarantees for rural workers.

Under the provisions of the new VB-G RAM G Act, the central government would establish a normative allocation, with state governments required to bear 40% of the associated costs. Most concerning, according to the assembly's analysis, is that the entire financial liability for employment generation beyond that predetermined allocation would fall exclusively on state governments. The Kerala assembly has estimated that this new arrangement would create an additional financial burden of approximately Rs 3,500 crore specifically for Kerala alone.

Categorization Concerns and Exclusion Risks

The resolution also raised serious objections to the proposal within the new legislation to classify gram panchayats into A, B, and C categories, with the provision limiting 125 days of work exclusively to centrally notified rural areas. The assembly expressed apprehension that this categorization system could potentially exclude numerous panchayats across Kerala from accessing full employment benefits, thereby undermining the comprehensive coverage that MGNREGA previously guaranteed.

The unanimous passage of this resolution represents a significant political statement from Kerala regarding federal relations, financial autonomy, and the preservation of social welfare frameworks that the state believes have proven effective in addressing rural employment challenges and poverty alleviation.