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

Published 1 July 2026 · politics

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

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. Read Full Story "I am writing regarding the implementation of the Viksit Bharat—Guarantee for Rozgar and Ajeevika Mission (Gramin) [VB-GRAMG] Scheme. This scheme imposes an additional financial burden of over Rs. 5000 crore under the new sharing pattern and restrictive operational implications on the State Government," Vijay wrote. 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." SEEKS REVISED FUNDING FORMULA 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. OPPOSES CENTRALISED ALLOCATION MODEL The Chief Minister also criticised the proposed centralised methodology for allocating funds among village panchayats, saying it ignored regional socio-economic differences. "The proposed centralised methodology... introduces micromanagement.