Changes in employment guarantee scheme will severely impact states: Kerala FM
GST
Dated:- 18-12-2025
PTI
Kochi, Dec 18 (PTI) Kerala Finance Minister K N Balagopal on Thursday said changes brought to the employment guarantee scheme would severely impact states.
\nSpeaking to reporters here in the wake of the G RAM G Bill introduced by the Centre in Parliament to replace the MGNREGA scheme, Balagopal said converting the employment guarantee scheme to a 60:40 funding ratio would adversely affect states and limit employment generation under the scheme.
\n“The union government is backtracking from its responsibilities under the Centre\u2013state relationship. Last year, Rs 80,000 crore was earmarked for states. The reasonable share due to<\/p>\n
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\n“Recent figures show that the study was right,” he said.
\n“After the new rate, for the first time, states in India have witnessed negative growth. Kerala\u2019s situation is relatively better, but the growth rate in the state will also decline,” he said.
\nHe said automobile sales rose by 65 per cent in several states following the rate revision during the festive season, but questioned the sustainability of such consumption.
\n“Will we buy a car every month? Nobody buys a car even every year,” he said.
\nBalagopal said although the rate revision was intended to boost consumption, prices of goods have not come down, as per studies.
\n“In the end<\/p>\n