
Tamil Nadu CM Joseph Vijay requests 100% Centre funding for wage component of VB-G RAM G scheme, citing fiscal strain from the 60:40 cost-sharing model that would cost the state ₹5,057 crore.
Tamil Nadu Chief Minister Joseph Vijay wrote to Prime Minister Modi on Wednesday requesting changes to the new Viksit Bharat Guarantee for Rozgar and Ajeevika Mission Gramin (VB-G RAM G) scheme, even as his government issued a gazette notification to implement it in its current form earlier this week.
The letter covers six areas for modification. The biggest ask: that the Centre return to fully funding the wage and administrative components, with only the material component split 75:25. Under the current 60:40 Centre-State cost-sharing model, Tamil Nadu would contribute ₹5,057 crore of the scheme's ₹12,642-crore state-level cost.
"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," Vijay wrote.
The VB-G RAM G scheme replaces the UPA-era Mahatma Gandhi National Rural Employment Guarantee Act, where the Union government fully funded the wage bill. The TVK government's decision to implement the new scheme marks a break from the previous DMK administration, which had opposed it.
Vijay also requested that the programme continue to carry the Mahatma Gandhi name, arguing this would preserve public goodwill tied to the rural employment guarantee. Other requests include delegating authority to District Collectors to declare the 60-day peak agricultural season based on local conditions, rather than requiring advance notification from the Centre, and allowing State housing schemes to fall under the VB-G RAM G framework.
Former finance minister Thangam Thennarasu said on social media that the devolution of funds from the Centre to states has also been declining, which will compound the fiscal strain on Tamil Nadu.
"With these vital adjustments, the scheme can be executed with greater strategic vision, maximum local impact, and a sharper focus on rural empowerment," Vijay wrote. "I look forward to your favourable consideration of these proposals."
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