CM Vijay urges PM to revise VB-GRAMG, says Tamil Nadu faces Rs 5,000 crore burden

Summary

Tamil Nadu Chief Minister C Joseph Vijay has written to Prime Minister Narendra Modi seeking significant changes to the implementation of the newly launched Viksit Bharat–Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-GRAMG) scheme, warning that its current funding structure would impose an additional financial burden of more than Rs 5,000 crore on the state. In a detailed letter, Vijay urged the Centre to revisit the scheme's funding pattern and operational guidelines before its implementation, arguing that several provisions could adversely affect rural employment and the state's welfare programmes. He further cautioned that unless the Centre modified certain provisions of the VB-GRAMG Act, 2025, "the seamless and effective execution of this scheme on the ground would suffer significantly and will affect the rural population which is dependent on the rural employment programme." A key demand in Vijay's letter is the restoration of a more favourable Centre-State funding pattern. The Chief Minister raised concerns over the new 60:40 funding ratio across wage, material and administrative components, arguing that it marked a sharp departure from the structure followed under the MGNREGS for nearly two decades. "As MGNREGS operated under a different structure for two decades, this abrupt shift places an unsustainable strain on the State exchequer, which may reduce available wage employment days or crowd out other essential welfare schemes," the letter states. Vijay requested the Centre to retain 100 per cent Central funding for wage and administrative expenses while adopting a 75:25 Centre-State sharing pattern for material costs. "I therefore request that 100% funding be maintained for the Wage and Administrative components, with the Material component shared on a 75:25 basis between the Government of India and the Government of Tamil Nadu," he wrote. Vijay also sought greater flexibility in notifying peak agricultural seasons, saying the existing provision requiring a pre-declared 60-day suspension period for employment works was impractical given changing climatic conditions. In the concluding part of his letter, Vijay appealed to the Centre to continue the rural employment programme under Mahatma Gandhi's name, saying the title carries immense historical significance and public goodwill. Vijay said Tamil Nadu has consistently been among the leading states in implementing rural employment guarantee programmes and expressed hope that the Centre would favourably consider the proposed changes to ensure the scheme delivers maximum benefits to rural communities while protecting the state's finances.