Chief Minister M.K. Stalin wrote to Prime Minister Narendra Modi on Thursday recording the objection of the Government of Tamil Nadu to the Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G) Bill, 2025.
Expressing deep concern and strong objection of the Government of Tamil Nadu to the (VB-G RAM G) Bill introduced in the Lok Sabha that sought to repeal and replace the Mahatma Gandhi National Rural Employment Guarantee Act, 2005 (MGNREGA). Mr. Stalin also listed some of the key concerns of the Tamil Nadu government in the Bill.
The MGNREGA has been a cornerstone of rural livelihood security in India, providing a rights-based, demand-driven guarantee of employment to millions of rural households, Mr. Stalin said in his letter and pointed out that in Tamil Nadu, the scheme has been implemented effectively since 2006, generating on average 30 crore person-days of employment annually and disbursing wages of approximately ₹12,000 crore per year. “From 2021-22 to 2024-25, we provided an average of 30 crore person-days, and in 2023-24 alone, 40.87 crore person-days were generated, with wages amounting to ₹13,400 crore paid to workers,” he said. This has been crucial for the rural poor, especially economically weaker sections, including SC/ST communities, in a State with longer non-rainy periods, lack of perennial rivers for irrigation, and high dependency on such wage employment, he added.
While the proposed Bill increases the guaranteed employment to 125 days per year – a welcome step that could benefit rural workers – the other provisions fundamentally undermine the scheme’s core principles, impose severe financial burdens on States, and erode federalism. These changes would adversely affect States’ finances and the livelihoods of millions of poor rural labourers across the country, Mr. Stalin said.
The shift from demand-driven to supply-driven allocation, was one of the concerns he flagged. “The Bill empowers the Union government to fix State-wise normative allocations based on parameters prescribed centrally. This caps expenditure and requires States to bear any excess costs, departing from MGNREGA’s demand-driven nature. In Tamil Nadu, where demand is high due to climatic and geographical factors, such fixation (potentially based on population without considering local needs) will reduce person-days and wages, causing hardship to rural workers, he contended.
Under MGNREGA, the Union Government bears 100% of unskilled wage costs and administrative expenses, with 75:25 sharing for materials but the Bill introduces new 60:40 funding pattern (wages, materials, and administration), he pointed out and contended that it will impose a tremendous additional burden on States, many of which are already facing fiscal constraints. “Pause during peak agricultural seasons: Mandating no works for up to 60 days district-wise may disrupt continuous livelihood support, especially in regions where agricultural cycles vary,” he argued.
There was excessive centralisation in the Bill and said that provisions allowing the Centre to notify implementation areas and integrate plans with national stacks reduce decentralised planning by Gram Panchayats and undermine grassroots democracy. The removal of Mahatma Gandhi’s name in the programme was one of the concerns, he flagged. “Renaming the scheme erases the link to Gandhiji’s vision of Gram Swaraj and decentralisation, which MGNREGA embodied. These changes alter the fundamental rights-based character of MGNREGA, making it a centrally controlled, budget-capped programme, he said.
The proposed legislation will jeopardise the livelihoods of crores of rural poor, particularly in performing States like Tamil Nadu, and strain inter-governmental relations, he said urging the Union Government not to implement the VB-G RAM G Bill, 2025. Instead, retain and strengthen MGNREGA by incorporating the increase to 125 days through amendments, after wide consultations with States, he demanded.
Published – December 18, 2025 11:58 pm IST
