VB-G RAM G: Karnataka wants existing MGNREGA issues resolved before transition

Published 26 June 2026 · india

Ahead of the rollout of the Viksit Bharat Guarantee for Rozgar and Aajeevika Mission (Gramin), 2025 (VB-GRAM G), which is proposed to replace MGNREGA, the

Ahead of the rollout of the Viksit Bharat Guarantee for Rozgar and Aajeevika Mission (Gramin), 2025 (VB-GRAM G), which is proposed to replace MGNREGA, the Karnataka government has requested the Union government to address the digital attendance-related issues faced under the existing scheme so that the same problems are not carried forward into the new framework. The State has also sought clarity on the coverage of Gram Panchayats under the Act and requested the release of nearly ₹700 crore pending funds. Since the introduction of the Mobile Monitoring System (NMMS) app for attendance under MGNREGA, workers have repeatedly reported difficulties due to poor mobile network connectivity.

In many cases, workers were unable to mark their attendance on time, resulting in wage delays or loss of wages. “There were multiple issues related to digital attendance, including difficulties in updating attendance and downloading muster rolls. These concerns have been flagged,” Rural Development and Panchayat Raj Minister Eshwar Khandre said. He added that initially, more than ₹1,000 crore was pending from the Centre. “While around 30% of the amount has been released towards labour payments, material costs amounting to approximately ₹700 crore are yet to be released,” Mr. Khandre said.

The State has also sought clarity on the powers and limitations of Gram Panchayats under the proposed framework. Under VB-GRAM G, Gram Panchayats will continue to prepare village development plans. However, their flexibility in deciding local priorities could be reduced, as planning will need to align with broader national development goals set by the Centre. Even if an urgent local requirement is identified, the work may have to fall within the approved categories under the scheme before it can be taken up. Karnataka was also among the States advised by the Union government to prioritise the implementation of DBT-SPARSH - the Direct Benefit Transfer component under the Single Nodal Agency Samyochit Pranali Ekikrit Shighra Hastantaran - to enable faster and more direct payments.

Khandre confirmed that the State is ready and has completed the required preparations. Under DBT-SPARSH, government funds are transferred directly to beneficiaries through a centralised digital platform to bypass the need for funds to pass through multiple layers of government accounts.