CM Seeks Changes to Centre's New Rural Job Scheme, Citing Rs 5,000 Crore Burden

Press Release Text of the D.O. Letter of the Hon'ble Chief Minister of Tamil Nadu Thiru. C. Joseph Vijay addressed to the Hon'ble Prime Minister of India Thiru. Narendra Modi regarding the implementation of the VB-GRAMG Scheme I am writing regarding the implementation of the Viksit Bharat—Guarantee for Rozgar and Ajeevika Mission (Gramin) [VB-GRAMG] Scheme, scheduled to commence on 01.07.2026. This scheme imposes an additional financial burden of over Rs.5,000 crore under the new sharing pattern and imposes restrictive operational implications on the State Government. However, certain provisions of the VB-GRAMG Act, 2025 require critical modifications and relaxations, without which the seamless and effective execution of this scheme on the ground would suffer significantly and would affect the rural population dependent on the rural employment programme. On the fund-sharing pattern, the current guidelines mandate a 60:40 ratio between the Union and the State across the Wage, Material, and Administrative components. 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. 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. The proposed centralised methodology for classifying Village Panchayats and distributing the State's normative allocations introduces micromanagement. A uniform, formulaic national approach fails to account for regional socio-economic diversity and risks lopsided grassroots allocations. The State Government should therefore be permitted to formulate its own customised methodology for intra-state distribution based on localised, ground-level needs. The notification of peak agricultural seasons also requires greater field-level flexibility. The Act mandates that the State notify a fixed 60-day period per financial year covering peak sowing and harvesting, during which works are suspended. However, unpredictable climate fluctuations such as El Niño frequently alter agricultural timelines, creating sudden unseasonal labour demand or a sharp need for safety-net employment during pre-notified peak periods. Instead of advance notification, authority should be decentralised to District Collectors to notify the 60-day peak period dynamically as per local conditions. The extension of wage employment support to State housing schemes is a vital priority. While the Act permits convergence with Union rural housing schemes, it excludes State-funded housing initiatives. "Housing for All" is a primary objective of the Government of Tamil Nadu, aimed at empowering underprivileged rural and tribal communities to live with dignity. Including State Housing Schemes under the VB-GRAMG framework would significantly accelerate these welfare targets and help ensure housing for all. Decentralisation of convergence approvals is essential for timely execution. The Act requires that every Central, State, or local scheme intended for convergence be individually notified by the Union Government. As convergence opportunities depend on evolving budgetary positions of local bodies and new State initiatives, such individual notification will create administrative bottlenecks. Delegating authority to the State to notify and approve schemes for convergence, under intimation to the Union Government, would ensure far more effective and timely execution. Finally, it is requested to continue the scheme in the name of Mahatma Gandhi in order to honour his legacy and to foster public goodwill aligned with the core ethos of the scheme. Tamil Nadu has consistently been a national forerunner in implementing rural employment guarantees. With these vital adjustments, the scheme can be executed with greater strategic vision, maximum local impact, and a sharper focus on rural empowerment. I look forward to your favourable consideration of these proposals. Issued by: Director, Directorate of Information and Public Relations, Chennai-9