TN CM Vijay writes to PM Modi opposing Viksit Bharat scheme over funding burden

Mangalore Today News Network

Chennai, Jul 2, 2026: Tamil Nadu Chief Minister C. Joseph Vijay has opposed the Union government’s proposed implementation of the Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAMG) Act, 2025, claiming that the new framework would impose an additional financial burden of over Rs 5,000 crore on the state while creating operational challenges.

In a letter to Prime Minister Narendra Modi on Wednesday, Vijay said several provisions of the new Act require significant relaxations and modifications. Without these changes, he warned, the scheme’s effective implementation would be hampered, adversely affecting rural communities that depend on employment guarantee programmes.

Raising concerns over the revised funding pattern, Vijay said the new guidelines mandate a 60:40 cost-sharing ratio between the Centre and the State across wage, material, and administrative components.

"Since the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) has functioned under a different funding structure for the past two decades, this sudden shift will place an unsustainable burden on the state’s finances. It could reduce the number of wage employment days or force cuts in other essential welfare schemes," he said.

The Chief Minister urged the Centre to retain 100 per cent funding for the wage and administrative components, while proposing a 75:25 cost-sharing ratio between the Centre and Tamil Nadu for the material component.

Vijay also objected to the proposed centralised methodology for classifying village panchayats and allocating funds within states. He argued that a uniform national formula fails to reflect regional socio-economic differences and could lead to inequitable distribution of resources at the grassroots level.

He requested greater flexibility for states to develop their own methodology for intra-state fund allocation based on local needs and ground realities.

The Chief Minister further appealed to the Centre to continue the scheme under the name of Mahatma Gandhi, saying it would honour the Father of the Nation’s legacy and preserve public goodwill associated with the rural employment programme.

Vijay also expressed concern over the Act’s provision requiring states to notify a fixed 60-day period each financial year covering peak sowing and harvesting seasons, during which employment works would be suspended.

He pointed out that unpredictable climate events, including El Niño, frequently alter agricultural cycles, creating unexpected labour demand or increasing the need for employment support during periods that may have already been declared as peak agricultural seasons.

Highlighting Tamil Nadu’s strong track record in implementing rural employment schemes, Vijay urged the Prime Minister to consider the proposed amendments to ensure the programme delivers maximum benefits to rural communities while allowing states greater operational flexibility.