CM Vijay writes to PM Modi seeking changes toc, says new funding formula will cost Tamil Nadu over ₹5,000 crore
Tamil Nadu Chief Minister C. Joseph Vijay has appealed to Prime Minister Narendra Modi to reconsider key provisions of the recently introduced Viksit Bharat–Guarantee for Rozgar and Ajeevika Mission (Gramin), or VB-GRAMG, arguing that the current design would place a financial burden of more than ₹5,000 crore on the state.
In a letter to the Prime Minister, Vijay expressed concern over the revised funding pattern and implementation guidelines, stating that they could affect both the state’s finances and rural employment programmes.
According to the Chief Minister, the proposed 60:40 Centre-State cost-sharing arrangement for wages, materials and administrative expenses represents a major departure from the funding model followed under MGNREGS for nearly two decades.
He warned that the additional expenditure could force the state to either reduce the number of employment days available to rural workers or divert resources from other welfare initiatives.
Vijay urged the Union government to continue fully funding wage payments and administrative costs while adopting a 75:25 sharing ratio for material expenses. He said such a structure would allow smoother implementation of the scheme without placing excessive pressure on Tamil Nadu’s finances.
The Chief Minister also cautioned that unless certain provisions of the VB-GRAMG Act, 2025 are revised, effective implementation of the programme could be affected, ultimately impacting rural communities that rely on employment guarantees.