Tamil Nadu Congress alleges Centre withheld ₹2,087 crore in MGNREGS funds
Tamil Nadu Congress Committee president Manickam Tagore has alleged that the BJP-led Union government withheld ₹2,087 crore due to the state under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS). In a social media post on Tuesday, he said information obtained through the Right to Information (RTI) Act exposed the Centre’s continued discrimination against Tamil Nadu in releasing funds for the rural job guarantee scheme.
According to Mr. Tagore, between April 1 and June 30 of the current financial year (2025-26), the Tamil Nadu government provided employment to 31.47 lakh workers from 29.83 lakh families, generating 3.22 crore person-days of work. During this period, the state government spent ₹1,804 crore towards wages and material, he claimed.
He also noted that under the newly revamped scheme, now named the Viksit Bharat - Guarantee for Rozgar and Ajeevika Mission (Gramin), which follows a 60:40 funding pattern between the Centre and states, 81.39 lakh families have been registered and job cards issued to 103.18 lakh workers in Tamil Nadu.
The Tamil Nadu Congress chief alleged that the Union government’s failure to release the required funds has placed a severe financial burden on the state government, affecting the implementation of the scheme.
In a letter to Union Minister of Agriculture and Farmers Welfare Shivraj Singh Chouhan, Mr. Tagore pointed out that funds released by the Centre to Tamil Nadu under MGNREGS declined from ₹13,395 crore in 2023-24 to ₹10,744 crore in 2024-25, a reduction of 19.79%. The allocation for 2025-26 is ₹6,254 crore, a further drop of 41.79% from the previous year and 53.31% lower than 2023-24, he said.
Mr. Tagore questioned Prime Minister Narendra Modi and Mr. Chouhan over the withholding of funds, particularly at a time when rural workers were facing livelihood difficulties. He demanded the immediate release of the pending ₹2,087 crore and urged the Centre to stop actions that he said were hampering rural development.
The MGNREGS, enacted in 2005, guarantees 100 days of wage employment per year to rural households. Recently, the central government revamped the scheme and renamed it as the Viksit Bharat - Guarantee for Rozgar and Ajeevika Mission (Gramin), with a revised funding pattern of 60% central and 40% state participation. The scheme is critical for rural employment and infrastructure development in states like Tamil Nadu.
The figures cited by Mr. Tagore could not be independently verified. The Union government has not yet issued a response to the allegations. The accusation also comes amid ongoing political tensions between the Centre and several opposition-ruled states over the release of funds for centrally sponsored schemes.
