Published Feb 05, 2026 | 4:01 PM ⚊ Updated Feb 05, 2026 | 4:01 PM
Kerala Legislative Assembly.
Synopsis: The Minister warned that the new VB-G RAM G law would impose a severe financial burden on states by fixing a “normative allocation” with states required to bear 40 percent of costs, and the entire liability for work exceeding the central allocation.
The Kerala Legislative Assembly on Thursday, 5 February, unanimously adopted a resolution demanding the withdrawal of the newly enacted Vikasit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-GRAM-G) Act and the reinstatement of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005, terming the new law anti-people and regressive.
Presenting the resolution, Minister for Local Self Government MB Rajesh recalled that the first UPA government, with the support of the Left, introduced the Employment Guarantee Act as a rights-based legislation in line with the constitutional mandate to ensure employment and alleviate rural poverty.
He said the Act included strong worker-protection provisions such as unemployment allowance, compensation for delayed wages, medical assistance for accidents, grievance redressal through ombudsmen, and social audits.
In Kerala, 40.45 lakh families are members of the scheme, of which 22.66 lakh workers from 19.43 lakh families are currently active.
The state has consistently outperformed the national average in providing work under the scheme, with an average of 66.17 working days in 2024–25 compared to the national average of 50.23 days, the minister pointed out in the resolution.
Rajesh highlighted that Kerala had gone beyond the central scheme by launching initiatives such as Tribal Plus, which provided an additional 100 days of work for Scheduled Tribe families, and by establishing, for the first time in the country, a Welfare Fund Board for employment guarantee workers.
He also referred to the Ayyankali Employment Guarantee Scheme that brought 350 local workers under welfare fund coverage.
The Minister warned that the new VB-G RAM G law would impose a severe financial burden on states by fixing a “normative allocation” with states required to bear 40 percent of costs, and the entire liability for work exceeding the central allocation.
Kerala alone could face an additional burden of ₹3,500 crore, he said.
The House also objected to the classification of gram panchayats, which could exclude Kerala’s relatively developed rural areas from the scheme.
The resolution said workers across Kerala are agitating against the new law and urged the Union government to immediately roll it back and restore MGNREGA in its original form.
