Employment Guarantee Act: sharing the cost will break the back of the state

Saturday 18 February, 2023 | 12:31 AM

40% to be borne by states

THIRUVANANTHAPURAM: The central move to share the cost of the employment guarantee scheme, which is the employment and income support of the poor, with the states will be an unsustainable liability for Kerala, which is reeling under an economic crisis. At present, the entire expenditure is borne by the central government. The idea is to split the shares between Center and states in the ratio of 60:40, on the pattern of other central schemes. It is believed that this is the reason why the amount for employment guarantee has been cut by 33 percent in the next year's central budget. It may be introduced in the next Lok Sabha session.

This will be a huge crisis for the state, which is finding it difficult to continue even the social welfare pension due to the reduction of the borrowing limit by the Centre. 26.82 lakh families depend on the well-run employment guarantee scheme in Kerala. During the Covid period, the government also used it effectively to overcome the crisis of the people. The complaint of the Center is that there is corruption in the employment guarantee scheme in the states. To overcome this, direct transfer of funds was introduced. Aadhaar was made mandatory. Membership in the scheme is limited to Aadhaar and bank account holders. Attendance through mobile app is also made mandatory. The beneficiaries of the employment guarantee are on strike in Delhi against this. The Center's argument is that if the states spend money, they will be more responsible and avoid corruption. At the national level, a family gets 50 working days while in Kerala it is 64.4. In Kerala, 31 percent got employment for 100 days in a year. At the national level, only 8 percent got 100 days. 100 days of employment was ensured for Schedule Tribes by using state funds.

Cutting short by the Centre

An amount of Rs 98,467.85 crore was spent on the Employment Guarantee Scheme in 2021-22. 89,400 crore in 2022-23. Only 60,000 crores have been allocated in 2023-24.

Labor Days in Kerala