Key facts
- Tamil Nadu CM Vijay says VB-GRAMG scheme imposes Rs 5,000 crore additional burden on the state
- CM has written to PM Modi urging amendment of the scheme
- Karnataka was preparing for rollout of the same scheme
- Scheme is part of the Centre's Viksit Bharat Guarantee initiative
Tamil Nadu Chief Minister Vijay has formally urged Prime Minister Narendra Modi to amend the Viksit Bharat Guarantee-GRAMG (VB-GRAMG) scheme, contending that as currently structured it imposes an additional financial burden of Rs 5,000 crore on the state. The CM's letter marks a significant escalation of Tamil Nadu's resistance to the scheme.
The VB-GRAMG scheme is part of the central government's flagship Viksit Bharat initiative aimed at guaranteeing development benefits to rural populations. However, Tamil Nadu's leadership argues that the cost-sharing arrangement is inequitable and that a Rs 5,000 crore outgo would stretch state finances at a time when several welfare commitments are already in place.
The pushback from Tamil Nadu contrasts with the situation in Karnataka, which was separately reported to be gearing up for the scheme's rollout — illustrating how the same central initiative is being received very differently by state governments across the political spectrum.
The dispute feeds into a broader and long-running debate about fiscal federalism in India — specifically, whether centrally sponsored schemes give states sufficient flexibility and whether the cost-sharing ratios are fair to states with larger populations and greater existing welfare obligations. The Centre is yet to formally respond to CM Vijay's request for an amendment.