Kerala's Minister for Local Self-Government, M B Rajesh, has launched a fierce critique against the Central government's proposed amendments to the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). At a press conference on Tuesday, he labeled the new Bill a deliberate move to dismantle the flagship employment program and transfer its financial weight onto state governments, with Kerala poised to bear a severe impact.
A "Declaration of War" on Employment Rights
Rajesh asserted that the core principle of employment as a legal right is being destroyed by the proposed legislation. "The Centre has prepared a Bill that completely abandons its responsibility to provide employment and destroys the core idea of employment as a right," he stated. He demanded the Union government withdraw the Bill, which he described as a "declaration of war against ordinary people." He warned that Kerala would be among the worst-affected states under the new funding model.
Financial Burden and Performance Excellence
The minister detailed the financial implications, stating the proposed funding pattern would force states to shoulder 40% of the scheme's total cost. For Kerala, this could translate to an annual loss of approximately Rs 1,600 crore. He contrasted this with Kerala's exemplary track record in implementing MGNREGA. The state ranks second nationally in providing 100 days of employment, with 5.19 lakh families completing the full entitlement in the 2024-25 financial year.
Rajesh provided key statistics to underline Kerala's successful implementation:
- 40.42 lakh families (59.4 lakh workers) are registered under MGNREGA in Kerala.
- 19.37 lakh families and 22.61 lakh workers are currently active.
- In the current financial year up to December 15, about 11.87 lakh families have worked, generating 5.52 crore workdays with an expenditure of Rs 2,401.79 crore.
He also highlighted that Kerala leads in performance indicators like social audit completion and workdays for SC/ST families.
Systematic Weakening and Funding Cuts Alleged
Rajesh traced a history of the scheme being undermined. He recalled that MGNREGA was conceived under the first UPA government due to Left parties' pressure. He alleged that attempts to weaken it began during the second UPA term and intensified over the past 10 years under the BJP-led government. He cited declining Central allocations as evidence:
- Centre's share fell from Rs 3,854.68 crore (2022-23) to Rs 3,221.13 crore (2023-24) and Rs 3,212.06 crore (2024-25).
- Only Rs 2,928.34 crore has been released for 2025-26 so far.
- Labour budget allocations were cut from six crore workdays to five crore workdays for 2025-26, despite Kerala consistently exceeding targets.
Fundamental Shift in Scheme's Nature
The minister explained that the proposed Bill replaces the demand-driven nature of MGNREGA with a target-based approach. This removes the legal guarantee of employment. Any work generated beyond the Centre's "normative allocation" would require full state funding. At current wage rates, this could cost Kerala an extra Rs 1,400 crore annually. Rajesh criticized the proposed 60:40 funding pattern, where states bear 40% of costs but have minimal say in decision-making, calling it unfair and detrimental to the scheme's foundational goals of poverty alleviation.
