CENTRE ALLOCATES RS 7.5K CR UNDER RURAL JOB SCHEME

Chennai: Amidst apprehensions over the quantum of fund Tamil Nadu will be receiving under VBG RAMG, the Union govt has allocated Rs 7585 crore to the state, which was only Rs 120 crore lesser than last year.

Union rural development minister Shivraj Singh Chouhan said that this interim allocation was made to ensure that the states were not affected and aimed at smooth implementation of the scheme. Since the draft rules to frame parameters as per the 16th Finance Commission to allocate funds for the scheme are yet to be finalised, the Union ministry of rural development has released the sum. Officials said that if the draft rules were implemented, the state may face a steep cut in the Union govt’s fund allocations.

However, Tamil Nadu will have to set aside an additional Rs 4,000 crore from its own coffers to implement the scheme, as the funding pattern as per the provisions of the VBGRAMG Act 2025 has been revised. While MGNREGS mandated a 90:10 ratio between the union and state govt fund allocations, the new Act specifies a 60:40 ratio. ``TN was allocating around Rs 1000 crore for the scheme which must be increased to Rs 5000 crore from the coming year,’’ said an state govt officer.

As a result the total outlay for VBGRAMG in TN would rise to Rs 12,642 crore. ``Tamil Nadu has to contribute Rs 5,056 crore as a matching grant for Centre’s contribution of Rs 7,585 crore. Otherwise, the state cannot to utilise the funds to keep the scheme running” said a senior officer.

“Funds from the Centre will be released in tranches. Every time a tranche is released, the state must simultaneously release its share. Any delay could affect the pace of implementation. TN’s share towards the scheme all these years was around Rs 1,000 cr,” the officer added.