VB GRAM (G) gives unilateral authority to the Centre in taking decisions, feel officials

The Telangana Government is weighing the pros and cons of the new Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-GRAM (G) Act as officials feel the provisions in the new legislation are likely to give unilateral authority to the Central Government in taking decisions.

Joining the new act mandating contributions from both the Centre and State Government in 60:40 ratio in place of Centre contributing 100%. The State is expected to incur ₹2,550.21 crore, and given the tight financial situation in which the State is placed, contribution to the employment guarantee scheme would impose huge burden on the exchequer.

Moreover, the new Act, according to officials, leaves the discretion of adding possible works to the Central Government. For instance, Section 4(d)(3) of Section 1 states that the Central Government can unilaterally add to the list of possible works under VB GRAM (G) without consulting the State Governments.

This is in sharp contrast with the Section 4(IV)(ix) of the MGNREGA which mandated the Centre to consult with the State Governments whole adding to the list of permissible works. This will imply that the right of the State Government to be consulted in decisions regarding expansion of permissible works has been removed.

Instead, unilateral power has been vested in the hands of the Centre to add to the list of possible works that can be undertaken, with no corresponding steps safeguarding interests of the States.

“The State Government has no say in the areas where the Act will be applicable, the wage rate that will enforceable and the amount of normative budget allocation that would be provided to the State,” a senior official said adding the Government should deploy funds to meet 40% of the normative allocation determined by the Central Government.

While having no say in any of the decisions that will affect the extent of implementation of the Act in the State, the Government is legally bound to deploy its funds as directed by the Centre. Another provision, Section 22(5) of the VB GRAM(G) mandates that any expenditure incurred by the State Government in excess of the normative allocation determined by the Central Government should be borne by the State Government.

However, if the State Government provides additional funds in excess of the normative budget allocation determined by the Central Government to provide employment in the State, it is bound to follow the terms and conditions laid down by the Central Government. This would in turn mean the Centre would continue to direct the State Government on how it could spend the latter’s own financial resources.

Section 12(4) of the new Act gives the Central Government the power to detail functions, responsibilities and modalities of the functioning of the Central Gramin Rozgar Guarantee Council. This would mean that the Centre had reserved the unilateral authority to assign duties and functions of the Central Gramin Rozgar Guarantee Council which would amount to delegating excess power to the role of subordinate legislation.