Lok Sabha Question No. 3749 (UNSTARRED), answered on 2019-07-16
Subject: Backward Regions Grant Fund
Ministry: PANCHAYATI RAJ
Asked by: Sunil Dattatray Tatkare, Heena Vijaykumar Gavit, Subhash Ramrao Bhamre, Supriya Sadanand Sule, Amol Ramsing Kolhe

## GOVERNMENT OF INDIA MINISTRY OF PANCHAYATI RAJ

## LOK SABHA UNSTARRED QUESTION NO. 3749

ANSWERED ON 16.07.2019

## BACKWARD REGIONS GRANT FUND

## 3749.   SHRI SUNIL DATTATRAY TATKARE:

DR. HEENA GAVIT:

DR. SUBHASH RAMRAO BHAMRE:

SHRIMATI SUPRIYA SULE:

DR. AMOL RAMSING KOLHE:

Will the Minister of PANCHAYATI RAJ be pleased to state:

(a)  whether  the  Backward  Regions  Grant  Fund  (BRGF)  Scheme  is  100  per  cent  Centrally Sponsored Scheme, if so, the details and the objectives thereof;

(b)  whether  the  Government  has  achieved  the  desired  objective  since  the  inception  of  the scheme;

(c)  the  procedure  being  followed  for  submission  of  proposals,  approval  and  execution  of works under the scheme;

(d) whether the Government has taken any decision to change/relax/revise the parameters of BRGF and if so, the details thereof;

(e)  the  details  of  the  cases  of  irregularities/mismanagements/diversion  of  funds  reported under the programme and the corrective action taken by the Union Government and the State Governments thereon; and

(f)  whether  the  Union  Government proposes to  enhance annual allocation of  BRGF to the States and if so, the details thereof?

## ANSWER

## MINISTER OF PANCHAYATI RAJ (SHRI NARENDRA SINGH TOMAR)

(a),  (b)  and  (c)  The  Backward  Regions  Grant  Fund  (BRGF)  Programme  was  a  Centrally Sponsored Scheme in the form of 100% Additional Central Assistance to State Plans.  The Programme was designed to redress regional imbalances in development by providing funds for supplementing and converging existing developmental inflows in the identified districts. Untied grants were provided to State Governments for the identified districts based on their Annual District Plans duly approved by the District Planning Committees. The annual budget allocation for BRGF was divided into two components, namely Capacity Building Grant and Development Grant. The State Government decided the inter-se allocation among the local bodies and to each level of these bodies on the basis of the index or formula accepted within the State to determine backwardness or level of development.

As per the progress reports received  from the States/Districts, funds under the Programme have been utilised for development of infrastructure facilities like construction of anganwadi centres, panchayat ghars, roads, culverts, bridges, community halls, water supply etc., in the backward districts.

An independent review-cum-evaluation of the BRGF was undertaken by the World Bank in eight States in July 2009. The World Bank in its report noted that the BRGF has stimulated  a  process  of  strengthening  of  Panchayati  Raj  Institutions  (PRIs)/Urban  Local Bodies  (ULBs),  particularly  in  backward  States  and  districts,  and  laid  the  foundation  for achieving  several  of  its  objectives.  The  report  also  noted  that  the  projects  are  generally addressing local needs within core local government mandates in a relatively cost-effective manner.

(d) No  Sir.  Consequent  upon  the  implementation  of  the  recommendations  of  the Fourteenth Finance Commission, share of States in the net proceeds of the Union taxes has been significantly enhanced from 32% to 42% of the Centre's net tax receipts. Hence, BRGF Programme has been delinked from the budgetary support of the Central Government since 2015-16.

(e) The  Panchayats  at  the  village,  intermediate  and  district  level  were  to  undertake planning  and  implementation  of  the  BRGF  Programme.  The  references  received  regarding irregularities/mismanagement/diversion of funds reported under the Programme were referred to the concerned State Governments for necessary action. For monitoring the works/ projects undertaken  under  the  Programme,  Ministry  of  Panchayati  Raj  prescribed  auditing  of Panchayats  funds/works.  BRGF  Guidelines  also  provided  for  audit  of  works  through  a Review Committee at District Level and Social Audit and Vigilance at the Panchayat levels.

(f) No Sir, in view of reply at (d) above.

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