THIRUVANANTHAPURAM: Expressing strong objection to the VB-G RAM G Bill, brought in by the Union government to replace MGNREGA, Chief Minister Pinarayi Vijayan has urged the Centre to refrain from implementing the new legislation in its current form.
Going by the current proposal, Kerala would incur annual fiscal loss of about Rs 3,500 crore due to the new provisions, the CM pointed out in a letter to Prime Minister Narendra Modi on Friday.
Terming the proposed bill regressive and counter to the spirit of the Constitution, Pinarayi said many provisions in the legislation raise serious concern, as they will limit the states’ fiscal space.
While in the present MGNREGS the wage component is borne by the Union government, the new legislation proposes to put the burden on states, as central assistance for wages would be only 60 per cent.
The proposed legislation transforms the project into a central scheme, he said, adding that such dilutions in the decentralised character of the scheme would place many states at a disadvantageous position. Kerala also expressed its strong objection to the renaming of the legislation.