Implementation of VB-G RAM-G without opposition amounts to failure in protecting Tamil Nadu’s financial well-being: Thangam Thennarasu

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Implementation of VB-G RAM-G scheme by Tamil Nadu Government without any opposition against the Centre would amount to failure by the State Government in protecting Tamil Nadu’s financial well-being and its rights, said former State Finance Minister, Thangam Thennarasu on Wednesday (July 1, 2026).

Tamil Nadu Government should take up a formidable opposition against the Union Government with regard to the certain features of the new scheme, which has replaced MGNREGA that would affect the State’s well-being.

The Tiruchuli MLA said while MGNREGA was implemented, the financial burden on the State Government was under control. “The Union Government’s contribution was 90% and the State had to bear only 10% of the total expenses,” Mr. Thennarasu said.

However, under the VB-G RAM-G scheme, which comes into force with effect from July 1, the State’s contribution has been increased to 40%.

“State governments have been burdened with additional financial responsibility. The primary objective of the federal set up was that the Centre and the State should share the responsibilities in a fair manner. However, in contrast, increasing the contribution of the State Government (in implementation of the scheme) will put additional strain on the State Government’s developmental schemes and fiscal management,” he said.

At a time when the devolution of funds by the Centre to State was coming down, the Centre reducing its contribution for the Centrally-sponsored programmes will lead to fiscal strain on Tamil Nadu, he added.

Mr. Thennarasu said the basic rights of the Grama Sabha deciding on the number of man days of work and nature of work to be taken up under MGNREGA has been taken away under VB-G RAM-G scheme. While it used to be demand-driven in the old scheme, it has been changed to supply-driven normative funding.

“Instead of the local people making the decision based on their needs, the work allocation will now be made base on the budget for the scheme,” he added. He wondered whether the s