Financial Assistance to Economically Backward Region

Till 2014-15, financial assistance was given to accelerate socio-economic development of the Most Backward Regions/Districts in the country under the Backward Region Grant Fund (BRGF) programme. Central funds are mainly released to States under various Central Sector/Centrally Sponsored Schemes.

Following the recommendation of the 14^th Finance Commission for biggest ever increase in States share in divisible pool of Central taxes and duties from 32% to 42%, many Schemes including BRGF along with other State Plan Schemes stand subsumed in larger devolution.

Based on the recommendations of the Sub-Group of the Chief Ministers, after the approval of the Cabinet, funding pattern of Centrally Sponsored Schemes (CSS) between Central and States has been revised. The rationale being to ensure optimum utilization of resources with better outcomes through area specific interventions and also ensure wider reach of the benefits to the target groups.

Up-liftment of 115 Backward Districts is being undertaken through focused approach and convergence/ synergy among the existing schemes. All Centrally Sponsored Schemes/Central Sector Schemes within their individual Scheme Guidelines give weightage to Backward Districts/Areas for fund allotment.

This was stated by Shri Pon. Radhakrishnan, Minister of State for Finance in a written reply to a question in Lok Sabha today.