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Tamil Nadu Assembly passes resolution against renaming MGNREGA, new funding structure under VB-G-RAM-G

The passage of the resolution in the Assembly just hours ahead of Prime Minister Narendra Modi's scheduled visit to Tamil Nadu on Friday.

January 23, 2026 / 13:13 IST
Tamil Nadu Chief Minister MK Stalin. (File photo: PTI)
Snapshot AI
  • TN Assembly opposes Centre's MGNREGA renaming and funding changes.
  • Resolution urges keeping Gandhi's name and demand-driven funding for rural jobs
  • BJP and AIADMK criticized DMK on governance, unfulfilled promises, and Assembly issues.

The Tamil Nadu Assembly on Friday passed a resolution moved by Chief Minister MK Stalin opposing the Union government's proposal to rename the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) and alter its funding structure.

The resolution urged the Centre to retain Mahatma Gandhi's name for the rural jobs programme and ensure adequate, continuous fund releases based on actual demand for work and state-wise performance. It stressed that the 'Right to Work' of rural citizens must be protected, noting that women, persons with disabilities, Scheduled Castes and Scheduled Tribes remain the primary beneficiaries of the scheme.

The resolution objected to what it called the Centre's "arbitrary fund allocations based on notional estimates" and demanded a return to the earlier demand-driven funding model. It also opposed the proposed increase in the state's contribution to 40 per cent under the revamped scheme, now renamed the Viksit Bharat–Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025 (VB-G-RAM-G), warning that the move would strain state finances and undermine rural livelihoods.

Soon after the resolution was passed, Tamil Nadu BJP president K Annamalai launched a sharp counter-attack on the DMK government, accusing it of politicising Centre-state issues and failing to deliver on its electoral promises.

In a post on X, Annamalai claimed that less than 10 per cent of the DMK's poll assurances had been implemented. He questioned the state’s stand on PM Shri schools under the Samagra Shiksha scheme, delays in infrastructure projects, and objections to delimitation, asserting that Union Home Minister Amit Shah had already clarified that southern states would not lose parliamentary seats.

Annamalai also targeted the state government over law and order, the promise to increase MGNREGA workdays, the status of AIIMS Madurai, disaster relief utilisation, metro rail project DPRs, the Keezhadi excavation report and opposition to NEET, urging the DMK to focus on governance rather than “daily political confrontations”.

The resolution came amid a tense political week in the Assembly. During the inaugural session, Governor RN Ravi declined to read out the government's prepared address, citing "inaccuracies", and walked out of the House, prompting Stalin to accuse him of violating constitutional conventions. The Chief Minister said the DMK would consult like-minded parties on pursuing a constitutional amendment if such incidents continued.

Leader of Opposition and AIADMK general secretary Edappadi K Palaniswami separately alleged that the Opposition was denied the opportunity to raise urgent public issues, including farmers' distress, the crisis in the poultry sector affecting nearly 40,000 farmers and five lakh workers, and the spread of chikungunya.

The debate on MGNREGA had already dominated Assembly proceedings a day earlier during the motion of thanks to the Governor's address. AIADMK MLA OS Manian alleged that the address hinted at the dilution of the scheme, accusing both the Centre and the state government of weakening it.

Rural Development Minister I Periyasamy countered that the BJP-led Union government was systematically undermining the programme, pointing out that the Centre had earlier borne the full cost but had since shifted to a 60:40 funding pattern and removed Mahatma Gandhi’s name from the scheme.

Palaniswami accused the DMK of failing to fulfil its promise to increase the number of guaranteed workdays, while Stalin maintained that only the Union government had the authority to extend employment under MGNREGA.

Ahead of Prime Minister Narendra Modi's visit to the state, Stalin escalated his attack on the Centre, raising questions on pending Samagra Shiksha funds, delimitation, the Governor’s role, financial allocations for Tamil, stalled infrastructure and healthcare projects, disaster relief, the Keezhadi report and the demand for NEET exemption.

Moneycontrol News
first published: Jan 23, 2026 01:13 pm

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