Union Government Sanctions ₹2,100 Crore to Tamil Nadu for MGNREGS Wage Dues
The Union government has sanctioned a substantial amount of ₹2,100 crore to Tamil Nadu under the Vishesh Bharat Gramin Rozgar Abhiyan Mahatma Gandhi (VB G RAM G) scheme. This allocation is specifically aimed at clearing the pending wage dues for the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS). The decision comes at a critical juncture, amidst ongoing tensions and sparring between the centre and the state over delays in fund allocation and recent changes in the funding pattern of the rural job scheme.
Background of the Funding Dispute
Earlier in January, the Tamil Nadu state assembly passed a resolution against the VB G RAM G framework, demanding uninterrupted fund allocation to ensure the smooth functioning of MGNREGS. Chief Minister M K Stalin had previously alleged that more than ₹2,000 crore in wage dues were pending for the state under this crucial employment guarantee program. The sanction of ₹2,100 crore is seen as a direct response to these persistent demands and allegations, aiming to address the financial backlog that has been a point of contention.
Details of the Sanction and Release
Officials from the MGNREGA Division in the Union Ministry of Rural Development confirmed that the ₹2,100 crore meant for wages has now been cleared. According to an internal communication cited by an official, this sanction covers residual dues for the fiscal year 2025-26, as well as wages for additional man-days that have already been approved for Tamil Nadu. The funds are scheduled to be released in a phased manner, with the process set to commence in the second week of February.
However, the communication remains silent on the allocation of ₹1,087 crore that is still pending under the material component of MGNREGS. An official expressed optimism, stating, "We are expecting that the ministry will sanction funds to clear the residual dues towards material components by the end of February." This indicates that while a significant step has been taken, complete resolution of all pending dues may require further action.
Impact on Employment and Man-Day Approvals
Tamil Nadu had exhausted its sanctioned quota of 12 crore man-days nearly two months ago, and as of February 1, the state has generated an additional 2.40 crore man-days. In response to the rising demand for work, state authorities requested 9 crore additional man-days for the fourth quarter. However, the ministry approved only 7 crore man-days, and funds were sanctioned accordingly. Another official, who requested anonymity, highlighted this reduction, noting that it is expected to curtail employment opportunities for rural workers over the next two months.
Overall Fiscal Year Funding
So far in the current fiscal year, the Centre has released a total of ₹3,995 crore towards wages and ₹1,262 crore for material components under the MGNREGS scheme. This latest sanction of ₹2,100 crore adds to the wage component, reflecting ongoing efforts to support rural employment in Tamil Nadu despite the challenges and disputes surrounding fund allocation.
