40% share: Rs 1,600 crore financial burden for Kerala; Employment Guarantee reform causing concern for state government

THIRUVANANTHAPURAM: The government is concerned that the provisions of the revised National Employment Guarantee Scheme bill, which impose strict restrictions, will become a setback for the state. It is estimated that the scheme will be affected by the provision that the states should bear 40% of the cost and that employment can be provided only in accordance with the labor budget.

The LSG department estimates that the state will have a liability of Rs 1,600 crore annually by having to bear 40% of the cost. The average annual expenditure of the employment guarantee scheme in the state is Rs 4,000 crore. 40% of this is a huge liability.

The spirit of the scheme was the provision that employment is a right. Through the provision in the new bill, employment can only be provided in accordance with the target and labour budget. The state assesses that, through this, the centre is completely withdrawing from the responsibility of providing employment.

The bill stipulates that those willing to work in rural areas notified by the Centre will be provided with 125 days of employment. The fact that not all gram panchayats in the state need to be notified may also be a setback.

Kerala's concern

• The state allows more working days than the centre does. However, the responsibility of creating more work days now lies with the state
• The central representative will also be in the state-level committee. The state will no longer have any participation in decision-making. The state will also be responsible for the allowance and compensation for delayed wages.
• The panchayats will be classified into A-B-C. The work allowed in each place will be different
• The proposal to avoid work for up to 60 days during the sowing and harvesting seasons will throw many families out of the scheme

Employment Guarantee Scheme in Kerala

Registered Families.................... 40.42

Total Workers............................. 59.4

Active Families............................. 19.37

Active Workers............................ 22.61

Reducing Central Share

(Amount in crores)

2022-23............. 3854.68

2023-24............... 3221.13

2024-25...............3212.06

2025-26............... 2928.34

''The new bill is part of the BJP government's planned efforts to completely abolish the Employment Guarantee Scheme. One of the states that will be most adversely affected is Kerala.

-Minister M.B. Rajesh