Bengaluru, Jan 9, 2026: The Karnataka Cabinet, led by Chief Minister Siddaramaiah, has unanimously resolved to reject the implementation of the VB-G RAM G Act and move court to legally challenge its validity, citing constitutional violations and federal overreach by the Centre.

The VB-G RAM G Act, which came into effect on December 21, 2025, replaced the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), guaranteeing 125 days of wage employment per year—up from 100 under MGNREGA—and introduced a 60:40 cost-sharing framework between the Centre and the states, diverging from the 100% central funding model previously in place. Karnataka becomes the third state after Punjab and Telangana to reject the new law.

Constitutional and Federal Concerns

In its resolution, the Karnataka Cabinet argued that the Act violates the right to work and livelihood under Article 21 of the Constitution, weakening employment security for rural households.

The cabinet also highlighted federal and Panchayat-related concerns, claiming the Act undermines the 73rd and 74th Amendments that empower local self-government institutions. The resolution stated that the VB-G RAM G Act “tramples upon the legitimate rights of Panchayats” and compromises bottom-up planning, as local bodies would lose the authority to choose work priorities.

The Cabinet noted that the Centre had unilaterally framed the scheme, excluding states from meaningful consultation while still expecting them to bear 40% of the funding. It described this as a serious breach of the federal structure, pointing out that wages, work allocations, and locations would largely be determined by the Centre, leaving states with little control over implementation.

“On one hand, works will only be available in areas as notified by the Central Government, and on the other, at wage rates fixed by the Centre, without any guarantee to the minimum wages fixed by the State Governments,” the resolution stated.

Social and Economic Impact

The cabinet also raised concerns over the Act’s impact on vulnerable populations, including women, Dalits, small farmers, and other marginalized groups. By centralizing control over projects and funds, the law was seen as compromising local priorities and the principle of Gram Swaraj envisioned by Mahatma Gandhi, which emphasizes community-led rural development.

Chief Minister Siddaramaiah has repeatedly warned that the VB-G RAM G Act “will ruin the lives of the poor” and has called for the restoration of MGNREGA. The Cabinet plans to complement the legal challenge with Gram Sabhas and public awareness campaigns to inform rural citizens about the potential negative consequences of the law.

Legal Challenge

Based on these grounds, Karnataka intends to file a case in court challenging the validity of the VB-G RAM G Act. The move follows consultations with the state’s Advocate General on the legal and constitutional ramifications of the legislation.

The Cabinet’s resolution emphasized that the Act undermines social and economic rights, constrains local governance, and centralizes powers in a manner inconsistent with India’s federal framework.

Context

The VB-G RAM G Act replaced MGNREGA with the stated goal of expanding rural employment from 100 to 125 days per household per year while introducing cost-sharing between Centre and states. However, states like Karnataka, Punjab, and Telangana have raised concerns over fiscal pressures and the law’s top-down approach, arguing that it undermines state autonomy, Panchayati Raj institutions, and rural livelihood rights.

Siddaramaiah’s Cabinet has therefore rejected the Act, pledged to restore MGNREGA, and committed to a judicial review of its constitutional validity, marking another flashpoint in the ongoing debate over federalism and rural employment policy in India.