Chandigarh, Dec 16 (IANS) The Shiromani Akali Dal (SAD), on Tuesday, expressed concern over the Union government's proposal to institute a 60:40 ratio between the Centre and the states to fund the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) as part of the new Viksit Bharat Guarantee for Rozgar and Aajeevika Mission (Gramin) framework.
In a statement here, the Akali Dal said it viewed the introduction of a 60:40 cost-sharing mechanism as fundamentally unacceptable, as it diluted the core essence of the scheme and defeated its primary objective of guaranteeing livelihood security through wage employment in rural areas.
The party emphasised that Punjab, with its agrarian economy and significant rural workforce, stood to be particularly affected.
"The party feels that shifting responsibility to states undermines the scheme's universal accessibility and contradicts the spirit of cooperative federalism."
The SAD accordingly urged the Centre to immediately review this proposal and revert to the original structure with 100 per cent Central funding for wages.
"This would ensure the scheme continues to fulfil its vital role in combating rural poverty and unemployment without placing undue strain on the finances of the states, " the party said.
Detailing future, the Akali Dal said the Aam Aadmi Party (AAP) government in Punjab was already defaulting on paying its share in various schemes due to which people of Punjab had suffered by being denied health benefits.
It added that important schemes like the Scheduled Caste Scholarship scheme for weaker sections had also been severely affected.
"Now the poorest of the poor may be denied daily wages if the onus of funding MGNREGS falls to the Punjab government, " it said.
Describing MGNREGS as a critical safety net for millions of rural households, especially during periods of distress, the SAD leadership said that by imposing a substantial financial burden on the states, the new ratio risks rendering the scheme ineffective in many regions.
"Several states, including those facing fiscal constraints, lack the necessary resources to contribute 40 per cent of the costs. This could severely limit their ability to fully utilise the programme, leading to reduced employment opportunities and leaving vulnerable rural populations without adequate support, " the statement asserted.