New VB-G RAM-G Scheme Rolls Out in States, Tamil Nadu Flags ₹5,000-Crore Burden

Tamil Nadu Chief Minister Vijay Joseph has urged the Centre to revise key provisions of the newly introduced Viksit Bharat–Gramin Rozgar and Ajeevika Mission (VB-G RAM-G) , arguing that the proposed framework would place an additional financial burden of more than ₹5,000 crore on the state.

In a letter to Prime Minister Narendra Modi , the Chief Minister said the scheme's current funding pattern, which requires a 60:40 cost-sharing ratio between the Centre and states for wage, material and administrative expenses, would significantly increase Tamil Nadu's expenditure. He requested that the Centre continue to bear 100% of wage and administrative costs , while the material component be shared in a 75:25 ratio .

Vijay also criticised the Centre's proposed system for allocating funds among village panchayats, saying a uniform national formula overlooks regional socio-economic differences. He further objected to the provision requiring states to suspend works for a fixed 60-day peak agricultural period , arguing that changing weather patterns and climate events such as El Niño often alter sowing and harvesting seasons, making rigid timelines impractical.

The Chief Minister warned that unless these provisions are revised, the scheme's implementation could affect rural employment and strain state finances.

Tamil Nadu's concerns come as several states have already begun implementing the new programme, which officially came into effect on July 1 , replacing the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) . The Centre says VB-G RAM-G increases guaranteed employment from 100 to 125 days , raises daily wages by more than 10% , and places greater emphasis on creating durable community assets, digital monitoring and climate-resilient rural infrastructure.

Bihar has launched the scheme with an increase in the daily wage from ₹255 to ₹300 for eligible workers. In Rajasthan , the government has highlighted the programme's focus on transparency, asset creation and sustainable rural development, while Nagaland has rolled it out with an emphasis on strengthening livelihoods, improving local infrastructure and expanding employment opportunities.

The Union government has also deployed more than 100 Area Officers across the country to support states during the transition to the new rural employment framework.