Kerala Flags Concerns Over Centre's MGNREGA Renaming Bill in Budget Session

The 16th session of the Kerala Legislative Assembly began with Governor Rajendra Vishwanath Arlekar's policy address. He flagged the state's strong concerns over the Centre's bill to rename MGNREGA to VB-G Ram G, warning it would slash central funding from 100% to 60%. Chief Minister Pinarayi Vijayan has also openly opposed the bill, arguing it undermines the scheme's foundational objectives. The Governor also highlighted key state legislation, including making Malayalam the official language while protecting linguistic minorities' rights.

Key Points: Kerala vs Centre on MGNREGA Renaming & Funding in Budget Session

  • Kerala opposes MGNREGA renaming bill
  • Warns of 40% cut in central funding
  • Governor highlights Right to Services Act
  • Malayalam made official state language
3 min read

Kerala Budget Session: State flags concerns on Centre's VB-G Ram G Bill

Kerala Governor raises concerns over Centre's VB-G Ram G Bill, citing a 40% funding cut for MGNREGA. CM Vijayan opposes the move as the Assembly session begins.

"The recent amendment... transforming it into VB-G Ram G, is a setback for Kerala, as the assistance from the union has decreased from 100 to 60%. - Governor Rajendra Vishwanath Arlekar"

Thiruvananthapuram, January 20

The 16th session of the 15th Kerala Legislative Assembly began on Tuesday with the customary policy address of Governor Rajendra Vishwanath Arlekar.

The Assembly session marks the final sitting before the state heads for the assembly elections this year.

The policy address is the first by Governor Arlekar, who took oath on January 2, 2025.

The Governor, speaking on behalf of the state government, emphasised that the employment guarantee scheme should continue to be implemented in its traditional form.

"Kerala has been in the forefront of implementing the demand-based employment scheme, Mahatma Gandhi National Rural Employment Program. The recent amendment to the said scheme, transforming it into VB-G Ram G, is a setback for Kerala, as the assistance from the union has decreased from 100 to 60%. There are also issues with the earlier program's demand-based nature. My government has flagged these concerns before the Union government. My government is of the view that the MGREGS system should continue..."

Kerala Chief Minister Pinarayi Vijayan has been open in his opposition of the the Centre's proposal to rename MGNREGA, saying that the bill seeks to "undermine the very foundational objectives" of the employment guarantee scheme.

He cautioned that once the bill becomes law, Kerala would face a sharp reduction in Union budgetary support for the scheme, with the Centre contributing only 60 per cent of the total expenditure.

Arlekar, who highlighted the legislation making Malayalam the official language of the state, along with other significant acts passed by the government.Addressing the Assembly, Arlekar noted that Kerala recently had elections for the three-tier local d self-government and the elected people have now taken charge.

Highlighting the Landmark Right to Services Act and legislative initiative to make Malayalam the official language of Kerala, he said, "My government has passed the Landmark Right to Services Act, which provides for declaring notified services as made available if officials connected with them fail to take action within a stipulated time period."

"Another legislation is making our mother-tongue Malayalam the official language of the State, while affording adequate protection to the rights of linguistic minorities in the state," he added.

Kerala Chief Minister Pinarayi Vijayan had previously in his response to a row surrounding the Malayalam Language Bill 2025, asserted that the apprehensions raised do not reflect the facts or the inclusive spirit of the legislation passed by the Kerala Legislative Assembly, adding that the bill contains a clause that particularly safeguards the rights of linguistic minorities.

- ANI

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Reader Comments

R
Rahul R
Good to see the focus on making Malayalam the official language while protecting minority rights. That's the Kerala model—progressive and inclusive. The VB-G Ram G bill, however, seems like a step backwards for federal cooperation.
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Aman W
While I support the state's stance on MGNREGA, I wish the political rhetoric was toned down a bit. Constant confrontation with the Centre isn't always helpful. Can we have more dialogue and less drama? Just a citizen's perspective.
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Sarah B
The Right to Services Act sounds promising! Timely delivery of government services is a huge pain point across India. If Kerala can make it work, it should be a model for other states. 👍
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Karthik V
Why rename a successful scheme? MGNREGA is known nationwide. This VB-G Ram G just creates confusion. The core issue is the funding cut, which will hurt the most vulnerable. The state government is right to flag this.
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Meera T
Elections are around the corner, so naturally, this session is crucial. Hope the debate remains on actual policies like this bill and the language act, and doesn't devolve into pure political slugfests. Fingers crossed!

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