SAD opposes proposed 60:40 funding ratio in rural employment scheme

Chandigarh, Dec 16 (PTI) Shiromani Akali Dal on Tuesday expressed deep concern over the Union government's proposal to institute a 60:40 ratio between the Centre and the states to fund the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) as part of the new Viksit Bharat Guarantee for Rozgar and Aajeevika Mission (Gramin) framework.

In a statement here, SAD, headed by Sukhbir Singh Badal, said it viewed the introduction of a 60:40 cost-sharing mechanism as fundamentally unacceptable, "as it diluted the core essence of the scheme and defeated its primary objective of guaranteeing livelihood security through wage employment in rural areas".

The party emphasised that Punjab, with its agrarian economy and significant rural workforce, stood to be particularly affected.

"The party feels that shifting responsibility to states undermines the scheme's universal accessibility and contradicts the spirit of cooperative federalism," it said, and urged the Centre to immediately review this proposal and revert to the original structure.

"This would ensure the scheme continues to fulfil its vital role in combating rural poverty and unemployment without placing undue strain on the finances of states," the party asserted.

Describing MGNREGS as a critical safety net for millions of rural households, especially during periods of distress, SAD said that by imposing a substantial financial burden on states, the new ratio risks rendering the scheme ineffective in many regions.

"Several states, including those facing fiscal constraints, lack the necessary resources to contribute 40 per cent of the costs. This could severely limit their ability to fully utilise the programme, leading to reduced employment opportunities and leaving vulnerable rural populations without adequate support," the party statement asserted.

A Bill that seeks to guarantee rural jobs for 125 days every year and replace the 20-year-old MNREGA was introduced in the Lok Sabha on Tuesday. Union Minister Shivraj Singh Chouhan introduced the Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G) Bill, 2025. PTI SUN MNK MNK