- The Tamil Nadu Chief Minister called for changes to the Centre's VB-G RAM G scheme
- He warned the scheme's design could add a Rs 5,000 crore financial burden on Tamil Nadu
- "This abrupt shift places an unsustainable strain on the State exchequer," Vijay wrote
Tamil Nadu Chief Minister C Joseph Vijay has written to Prime Minister Narendra Modi seeking major changes to the Centre's newly launched Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G) scheme, warning that its present design would impose an additional financial burden of over Rs 5,000 crore on the state and hamper effective implementation.
In his letter, released by the Tamil Nadu government on Tuesday, Vijay said critical provisions of the VB-G RAM G Act, 2025, require "modifications and relaxations", failing which "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."
The chief minister's principal demand is that the Centre continue 100 per cent funding for wage and administrative components, while limiting the state's share in material costs to 25 per cent, instead of the new 60:40 Centre-State funding pattern.
"As MGNREGS (Mahatma Gandhi National Rural Employment Guarantee Scheme) operated under a different structure for two decades, this abrupt shift places an unsustainable strain on the State exchequer," Vijay wrote, adding that it could reduce wage employment days or force cuts in other welfare schemes.
He also opposed the Centre's proposed uniform formula for allocating funds among village panchayats, arguing that it amounts to "micromanagement" and ignores regional socio-economic diversity. Instead, he sought freedom for states to evolve their own allocation methodology based on local needs.
Among other demands, the chief minister urged the Centre to allow district collectors to dynamically notify peak agricultural seasons instead of fixing a mandatory 60-day period in advance, include state-funded housing schemes under VB-G RAM G, decentralise approvals for convergence with other schemes, and retain Mahatma Gandhi's name for the rural employment programme.
While the Tamil Nadu government has notified the implementation of the new scheme, the opposition DMK has cautioned against its financial implications. Former Finance Minister Thangam Thennarasu said increasing the states' financial contribution was "contrary to the principles of cooperative federalism" and warned it would place "additional pressure on states' development programmes and financial management" while weakening their fiscal autonomy.
He urged the TVK-led government to strongly oppose provisions that could harm Tamil Nadu's financial interests and state rights.
