Introduction
The Karnataka government is mounting a challenge against the Union government’s recent repeal of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). In its place, the Parliament enacted the Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025 (VB-GRAMG), fundamentally overhauling the rural jobs guarantee program. Karnataka’s Cabinet, led by Chief Minister Siddaramaiah, argues that the new law undermines the constitutional right to work and the decentralized governanceenshrined in India’s 73rd Amendment. The state has passed a resolution “unanimously” rejecting the new Act and is exploring legal avenues to challenge the repeal of MGNREGA in court.
MGNREGA vs. the New VB-GRAMG Act
MGNREGA, enacted in 2005, guaranteed 100 days of wage employment per year to every rural household that needed work, making employment a legal right for the rural poor. It was a demand-driven scheme implemented through gram panchayats (village councils), allowing local communities to decide work projects like water conservation, road maintenance, and other small infrastructure. The VB-GRAMG Act 2025, passed in December 2025, introduces significant changes to this framework. Key differences include:
● Extended but Conditional Workdays: The new law promises 125 days of wage employment per rural household, higher than MGNREGA’s 100 days. However, it also allows a 60-day mandatory pause during peak sowing and harvesting seasons, effectively shortening the available work window for laborers. Critics like Telangana Chief Minister A. Revanth Reddy note that pausing the scheme in agricultural seasons will harm landless laborers who need year-round employment.
● Centralized Project Selection: Under MGNREGA, local gram sabhas and panchayats had the authority to choose works based on local needs, fostering bottom-up planning. The new Act shifts to a centralized approach where projects align with national priorities. All works will originate from “Viksit Gram Panchayat Plans” aggregated upward into a national rural infrastructure pipeline. Karnataka officials allege this change converts a demand-driven, locally planned scheme into a “supply-driven” program controlled by the Centre – with the Union government deciding where and when work will be carried out, and on what projects. Law Minister H.K. Patil warned that previously, panchayats created local assets under MGNREGA, but now laborers could be “forced to work on national highway projects” executed by big contractors.
● Funding Burden on States: MGNREGA was financed mostly by the Centre, whereas VB-GRAMG introduces joint funding. States are now mandated to bear about 40% of the costs of the employment scheme. Karnataka’s ministers point out this will impose huge financial burdens on already stretched state budgets. For Karnataka, the annual additional cost is estimated around ₹3,000 crore. Despite expecting states to co-fund the program, the central government did not adequately consult state governments before pushing the new law, critics say.
● Reduced Scope of Work & Worker Protections: The new Act narrows the types of permissible works and alters implementation norms. Telangana’s resolution opposing the Act noted that while MGNREGA allowed 266 types of works, the replacement law omits certain activities (like improvement of small farmer lands) that benefited marginal farmers, Dalits, and tribals. Activists also worry that provisions in VB-GRAMG – such as involving contractors for large projects – could leave workers “at the mercy of contractors,” undermining the safeguards that MGNREGA had for timely payments and local accountability. Congress leaders have argued that employment is no longer a guaranteed right under the new Act, since work is not provided on demand but on the Centre’s discretion.
● Faster Rollout without Consultation: Perhaps most controversially, the VB-GRAMG Bill was introduced and passed with unusual speed and little debate. The Lok Sabha cleared it on December 18, 2025, and the Rajya Sabha pushed it through around midnight the same day amid opposition protests. There was no prior notice or stakeholder consultation with states, civil society, or labor groups before this radical policy shift. President Droupadi Murmu gave assent on December 21, converting it into law. In contrast, the original MGNREGA in 2005 had gone through extensive scrutiny by a parliamentary committee and unanimous approval across party lines.
Karnataka’s Objections: Rights and Decentralisation
The Karnataka government – run by the Congress party – has been vocal in condemning the new law on both legal and moral grounds. After a cabinet meeting on January 8, 2026, Law and Parliamentary Affairs Minister H.K. Patil announced that Karnataka “unanimously decided not to accept” the VB-GRAMG Act and will fight it “politically, legally, and in the people’s court”. The state’s resolution and leaders have outlined several core objections:
1. Violation of the Right to Work: Karnataka asserts that repealing MGNREGA and removing the guarantee of work infringes on a fundamental right. While not explicitly listed in the Constitution, the state argues the right to work is implicit under Article 21 (right to life). The cabinet’s note calls the new Act a violation of citizens’ “right to work and livelihood”, betraying the spirit in which MGNREGA provided rural families a legal entitlement to employment on demand. Chief Minister Siddaramaiah described the repeal as unconstitutional, saying MGNREGA had embodied a rights-based approachempowering the poor that the new law strips away.
2. Undermining Local Self-Government: The 73rd and 74th Amendments to the Constitution established a framework for decentralised governance through panchayats and municipalities. Karnataka’s leaders argue the new scheme “tramples upon the legitimate rights of panchayats” and is against the spirit of these amendments. Under MGNREGA, village assemblies had a say in planning works and prioritizing local needs, strengthening grassroots democracy. Now, by centralizing project selection and fund allocation, the Act “strikes at the very foundation of decentralisation”, effectively disempowering local bodies. “The rights of people and panchayats have been taken away. Neither the states nor the people were consulted before bringing this law,” CM Siddaramaiah lamented, accusing the Centre of violating federal principles.
3. Centralisation & “Supply-Driven” Employment: State officials are concerned that VB-GRAMG converts what was a demand-driven guarantee (where any rural household could ask for work and had to be given work within 15 days) into a top-down, supply-driven program. “MGNREGA had guaranteed the right to work for the poor… by allowing them to demand employment within their own gram panchayats,” Siddaramaiah noted, whereas under the new Act “the Centre [will decide] where and when work will be undertaken”. This could leave many willing workers without jobs if their village isn’t selected for a project. H.K. Patil warned that VB-GRAMG does “not guarantee work for many, as the Centre will decide the districts where work will be taken up,” unlike MGNREGA which responded to local demand.
4. Risk of Contractor Raj:Another worry is the Act’s orientation towards larger infrastructure. Patil and others claim the law was designed to benefit contractors rather than laborers. “MGNREGA enabled asset creation through panchayats, whereas the new ‘draconian law’ forces labourers to work on national highway projects being executed by contractors,” Patil alleged. By shifting focus to big projects aligned with central schemes (e.g. highway construction, large infrastructure via the Gati Shakti plan), the fear is that local works like check dams, rural roads, or irrigation ponds will be sidelined. Workers may have to travel far or work under private contractors, potentially facing exploitation. Siddaramaiah warned that the repeal would “lead to increased unemployment, migration, loss of minimum wage protection, [and] exploitation of labour” in rural areas, reversing the social safety net that MGNREGA provided to vulnerable groups.
5. Federalism and Financial Burden: The federal structure is another flashpoint. By making states fund 40% of the scheme while excluding them from policy decisions, Karnataka sees it as an overreach by the Union government. “The Act seriously affects the federal structure by completely excluding the States from the consultation process, even while expecting States to bear 40% of the amount, on terms unilaterally decided by the Centre,” the Karnataka Cabinet’s resolution stated. Officials argue that if the Centre was going to offload nearly half the cost, it should have consulted state governments on the scheme’s design. The lack of consultation is viewed as a breach of cooperative federalism. Moreover, for a state like Karnataka, finding an extra ₹3,000 crore annually to fund the scheme is significant. Other states, including those ruled by the BJP, would also feel the pinch – a point Karnataka’s Deputy CM D.K. Shivakumar raised, noting even BJP-led states “would be adversely affected” by the new funding pattern.
In light of these objections, Karnataka has decided to pursue both legal and political action. The state’s Advocate-General (top legal advisor) has been asked to examine grounds to challenge the VB-GRAMG Act, either in the state High Court or directly in the Supreme Court. “It is unanimously decided ... to challenge the same in the court of law,” affirmed Minister Patil. Simultaneously, the government plans to take the issue to the “people’s court,” meaning a public awareness campaign and protest movement to build pressure against the law. “As the decision infringed on the right to work, we will take it up in the people’s court,” Patil said, indicating a mass outreach to inform citizens how the change could hurt rural households.
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Wider Opposition and Calls to Restore MGNREGA
Karnataka is not alone in its pushback. The repeal of MGNREGA — often hailed as the world’s largest jobs guarantee program — has sparked a broader political backlash across several states and opposition parties. Key developments include:
●Congress “Save MGNREGA” Campaign: The Congress party, which heads the government in Karnataka and other states, has launched a nationwide protest drive. On January 3, the party announced a 45-day “MGNREGA Bachao Sangram” (Save MGNREGA struggle) from January 10 to February 25, demanding that the VB-GRAMG Act be withdrawn and MGNREGA restored as a rights-based law. Congress General Secretary K.C. Venugopal said the new act ensures “complete centralisation” and warned that “employment will no longer be a right under the new Act.” He confirmed that the Act’s constitutionality will be challenged in court, and the party will consult its INDIA alliance partners (a coalition of opposition parties) on resisting implementation in states.
● State Assembly Resolutions: Some states have taken the fight to their legislatures. Telangana’s Legislative Assembly (now led by a Congress government after 2023 elections) passed a resolution on January 3 opposing the replacement of MGNREGA. Moving the resolution, Chief Minister A. Revanth Reddy argued that the new law “adversely affects the rights of the poor and women workers, and also undermines the federal spirit by causing additional financial burden on states.” The Telangana Assembly formally urged the Centre to continue the MGNREGA law in its original form. The resolution noted that 90% of MGNREGA’s beneficiaries in the state were from Scheduled Castes, Scheduled Tribes, and Other Backward Classes, with women comprising 62%. It also criticized specific provisions of the new Act, such as the 60-day work stoppage during planting/harvest (calling it “injustice to the landless poor”), and the removal of certain categories of works that helped small farmers. In north India, Punjab’s government has also convened a special Assembly session to discuss the issue, indicating intent to pass a similar resolution opposing the VB-GRAMG Act.
● Civil Society and Experts:Activists, economists, and civil society groups have decried the repeal of what they consider a lifeline for rural India. Renowned development economist Jean Drèze remarked that the new law is the “logical conclusion of [the government’s] long-standing hostility to MGNREGA.” Over the last decade, budgets for MGNREGA were squeezed and stringent technological requirements (like Aadhaar-based payments and a cumbersome attendance app) were imposed, leading to widespread deletion of job cards and delayed payments. By changing the law without consultation and rushing it through Parliament at midnight, the government has effectively dismantled a cornerstone welfare program. Critics view this as not just a policy change but an assault on the rights of the poorest. P. Sainath, a prominent rural journalist, has framed it as part of a “war on the poor” and a “corporate hijack of rural livelihoods,” tying it to broader agrarian distress.
● Central Government’s Defense: The Union government, led by the BJP, has defended the new scheme as an upgrade, not a denial of rights. Officials claim that raising the guarantee to 125 days and focusing on asset creation in rural infrastructure will better serve development goals. They also argue that a pause during peak farming season will ensure MGNREGA works don’t draw labor away from agriculture when needed on farms. In response to charges of centralization, BJP spokespersons say that the scheme will still be implemented at the village level, just aligned more closely with national priorities to avoid “duping people with useless works.” A BJP MLA in Telangana even asserted that VB-GRAMG will realize Mahatma Gandhi’s vision of Gram Swaraj(village self-rule) by creating durable assets, despite the irony of removing Gandhi’s name from the scheme. The Centre has also pointed out that many households never fully used the 100 days under MGNREGA – in 2024-25 the average was about 50 days of work per family – implying that 125 days is an aspirational ceiling and resources can be better targeted.
Despite these defenses, the manner of the law’s passage and the pushback from states suggest a looming confrontation. Karnataka’s Chief Minister compared this struggle to the 2020–21 farm laws episode, where sustained protests forced the Union government to repeal three contentious farm reform laws. “Just as farmers compelled the Centre to withdraw the farm laws, a similar struggle will be launched,” Siddaramaiah vowed. The Karnataka government, alongside like-minded states and parties, is gearing up for a campaign that combines courtroom challenges, legislative resolutions, and street protests to reinstate the guaranteed rural job scheme.
Other Decisions from the Karnataka Cabinet Meeting
The MGNREGA issue dominated Karnataka’s cabinet discussions, but several other significant decisions were also made in the same meeting on Thursday:
● Premature Release of Prisoners: The Cabinet approved the early release of 33 life-sentence prisoners across various state prisons on account of good behavior. Of these, 31 will be freed immediately, while 2 inmates – convicted under firearms-related cases – will be released only after obtaining consent from the Union Ministry of Home Affairs. This routine exercise of clemency around national holidays or important occasions is meant to reward reformed convicts and reduce prison overcrowding.
● Urban Property Registry Reform: In a move affecting urban residents, the government gave a nod to issuing “A-Khata” certificates to about 10 lakh properties that are currently holding “B-Khata” status (semi-legal or unauthorised properties). This one-time regularization will bring unapproved layouts and buildings in city municipal areas into the tax net upon payment of prescribed penalties. Minister H.K. Patil noted that guidelines used in Bengaluru’s earlier A-Khata scheme would be adapted statewide, potentially boosting local body revenues ahead of upcoming urban local elections.
● Statues to Honor National Leaders: The Cabinet authorized the installation of statues of Mahatma Gandhi, Jawaharlal Nehru, Indira Gandhi, and Rajiv Gandhi at various locations in Kalaburagi city. Kalaburagi (in north Karnataka) is the home turf of veteran Congress leader Mallikarjun Kharge, and this project is meant to inspire the public by commemorating leaders of India’s freedom movement and post-independence history. “Since the new generation has no idea of the history of these great luminaries, it was decided to install the statues to convey their message,” explained Minister Patil.
● Infrastructure in Kalyana Karnataka:In line with regional development plans for the Kalyana Karnataka (Hyderabad-Karnataka) region, the Cabinet approved construction of a new Mega Dairy in Kalaburagi with an investment of ₹50 crore, and a Regional Cooperative (Sahakara) Bhavan in Kalaburagi at a cost of ₹10 crore. These projects, funded through the Kalyana Karnataka Regional Development Board (KKRDB), aim to boost the dairy sector and cooperative movement in the region. Additionally, the establishment of a new Government Toolroom and Training Centre (GTTC) on Kalaburagi University’s campus was cleared, to be supported by KKRDB grants.
● Women’s Safety Initiative: Another noteworthy decision was the statewide rollout of the “Akka Pade” scheme (meaning “Elder Sister force” in Kannada). Under this program, teams will be deployed across all 31 districts and major cities to patrol public spaces – such as buses, schools, malls – to enhance safety for women and children. The initiative, run jointly by the Women & Child Development Department and the Home Department, will provide on-the-spot assistance, legal awareness, and a security presence in sensitive areas to prevent harassment and violence. The Chief Minister said the goal is to create a “fear-free environment” and offer timely protection to vulnerable groups.
As Karnataka implements these varied decisions, the state’s showdown with the Union government over the rural jobs scheme is just beginning. With a legal petition likely to be filed soon and a political campaign gearing up, the coming weeks will test the resolve of both the state, which seeks to protect what it views as the rightful entitlements of its rural citizens, and the Centre, which insists on restructuring a two-decade-old program. The outcome of this tussle – whether through a court judgment or negotiated policy changes – will have far-reaching implications for India’s federal dynamics and the future of its rural employment safety net.
Sources:
● Express News Service (Indian Express) – “Karnataka Govt to challenge MGNREGA repeal in court...”
● Indo-Asian News Service (via NDTV) – “Karnataka Cabinet Plans Legal Action Against G Ram G Scheme”
● Press Trust of India (via Devdiscourse) – Karnataka Cabinet resolution excerpts
● The News Minute (IANS) – Siddaramaiah’s statements on VB-GRAMG vs MGNREGA
● The Wire – Analysis of VB-GRAMG Act passage and expert commentary
● Press Trust of India (via NDTV) – Congress announcement of “Save MGNREGA”campaign
● Press Trust of India (via NDTV) – Telangana Assembly resolution against VB-GRAMG
● New Indian Express – Cabinet decisions on prisoners, statues, dairy and other projects
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