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Amid heavy opposition to the Union government’s newly announced Viksit Bharat - Guarantee for Rozgar and Ajeevika Mission (Gramin), or VB – G RAM G Bill, the YSR Congress Party (YSRCP) told The News Minute that they will be opposing the draft Bill. The Bill is meant to replace the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA).
Speaking to The News Minute, Lok Sabha floor leader for YSRCP PV Midhun Reddy said the party would oppose the replacement of MGNREGA and would demand that the Bill be sent to a Joint Parliamentary Committee (JPC) for further scrutiny.
“We are not happy with the 60:40 division of funds between the Union and state governments and the subsequent issue it could pose,” Midhun told TNM. Apart from Rajampet MP Midhun Reddy, the YSRCP has three Parliamentarians in the Lok Sabha.
PV Midhun was referring to provisions in the draft Bill that mandate a 60:40 fund-sharing pattern between the Union government and most states, with state governments bearing 40% of the financial burden. A 90:10 funding pattern has been retained only for north-eastern states, Himalayan states and Union Territories including Uttarakhand, Himachal Pradesh and Jammu and Kashmir.
It is worth noting that the Telugu Desam Party (TDP) has not publicly criticised the Bill. TNM reported in its weekly Powertrip newsletter that the party has decided to adopt a more neutral stance in Parliament.
Under the existing MGNREGA framework, the Union government bears most of the expenditure, including all wages for unskilled workers, up to 75% of material costs, wages for skilled and semi-skilled workers, and a portion of administrative expenses. State governments cover the remaining 25% of material costs, wages for skilled and semi-skilled workers, and unemployment allowance when work is not provided within 15 days of application.
The draft Bill also empowers the Union government to determine state-wise allocations based on parameters set by the Union government itself. Any expenditure beyond the allocated amount would have to be borne by the state government.
“The Central Government shall determine the State-wise normative allocation for each financial year, based on objective parameters as may be prescribed by the Central Government. Any expenditure incurred by a State in excess of its normative allocation shall be borne by the State Government in such manner and procedure as may be prescribed by the Central Government,” Clauses 22(4) and 22(5) of the draft Bill state.
