Thiruvananthapuram, Dec 16 (NationPress) The proposed changes by the Union government to the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) represent a serious threat to ordinary citizens and could drastically undermine Kerala's financial stability, with an estimated loss of nearly Rs 1,600 crore annually, according to Local Self-Government Minister M.B. Rajesh on Tuesday.

Rajesh highlighted that the employment guarantee scheme was established during the first UPA government under significant pressure from the Left, aiming to be a demand-driven, rights-based initiative.

However, he pointed out that there have been systematic efforts to undermine it beginning in the second UPA period, which intensified once the BJP took power. Over the past decade, there have been delays in wage payments, accumulation of arrears, and reductions in workdays to diminish worker participation. He believes that the current Bill represents the final move to dismantle the scheme entirely.

This new legislation abolishes the concept of a legal right to work, substituting it with employment based on Central targets and labor budgets.

Rajesh accused the Centre of evading its responsibility to ensure work availability.

He remarked that although the Bill mentions increasing workdays to 125, this only applies to areas designated by the Centre, not to all panchayats, rendering the assurance largely ineffective.

A significant concern for Rajesh was the alteration in the funding structure to a 60:40 ratio, shifting 40 percent of the total cost onto the states.

For Kerala, which typically spends about Rs 4,000 crore annually on MGNREGS, this would impose an additional financial burden of around Rs 1,600 crore.

Rajesh stated, “This is being imposed by a Centre already subjecting Kerala to financial constraints.” He added that states would also need to cover the complete expense of unemployment allowances and compensation for delayed wages.

He emphasized Kerala's impressive performance under MGNREGS, noting that in 2024–25, the state generated 9.07 crore person-days, expending over Rs 4,011 crore, and providing 100 days of work to over 5.19 lakh families, achieving second place nationally.

In the current financial year, Kerala has already surpassed the approved labor budget of 5 crore person-days by generating 5.53 crore days.

Rajesh criticized the central law that previously protected states generating work based on demand, arguing that the new Bill penalizes efficiency by obliging states to pay for excess work.

He also raised concerns about persistent reductions in Central allocations, challenges related to Aadhaar-based verification in tribal and remote regions, limitations on work during agricultural seasons, and provisions allowing the Centre to withhold funds based on preliminary complaints.

He condemned the removal of Mahatma Gandhi's name from the program, interpreting it as an effort by the Centre to erase the initiative's original ethos.

Rajesh concluded by stating, “The employment guarantee scheme prevented starvation during the Covid-19 crisis and protected millions of rural families. The Centre must retract this Bill,” warning that its enactment would dismantle one of India's most crucial social security frameworks.