K N Balagopal, Finance Minister of Kerala
| Photo Credit:
SUSHIL KUMAR VERMA
The Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) Bill (VB-G RAM G Bill), which seeks to replace the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), will have an adverse impact on Kerala, Finance Minister K N Balagopal has said.
The proposed legislation would have far-reaching consequences, leading to the loss of jobs for lakhs of people not only in Kerala but across the country, he told reporters here. Last year, around 13.7 lakh families in the State participated in the scheme, with total enrolment standing at about 22 lakh.
With the Centre relinquishing its responsibility under the new framework, the financial burden associated with the scheme would fall on the State government, the Minister said. He also reiterated that the benefits of GST rationalisation should be passed on to consumers and that the Centre must compensate States for the annual revenue loss arising from GST.
Balagopal further pointed out that the Centre has slashed Kerala’s borrowing limit by ₹5,900 crore in the current quarter. This being the final year of the Left Democratic Front government and the last quarter of the financial year ahead of the Assembly elections, the reduction would have a considerable impact on the State, he said.
Despite the borrowing ceiling imposed by the Centre over the past four-and-a-half years, the State government had managed to carry forward its development plans, the Minister noted. The annual expenditure in 2024-25 was about ₹1.75 lakh crore, and it is expected to touch ₹2 lakh crore in the current fiscal year, he added.
Published on December 18, 2025