The Cabinet Committee on Economic Affairs has approved the proposal for continuation of the District Component of the Backward Regions Grant Fund (BRGF) Programme in the existing form during 2013-14 and until the new and restructured BRGF is introduced.

During 2013-14 the budgetary estimate is Rs. 6500 crore. During 2012-13 an amount of Rs. 3720 crore has been released to the States under the District Component of BRGF. This will accelerate socio-economic development of the 272 backward districts of 27 states in the country.

This will contribute towards poverty alleviation in backward districts and promote accountable and responsible panchayats and municipalities. Unlike the conventional top down approach in planning, the BRGF programme has adopted the bottoms up approach wherein the plans are prepared at the grassroots level i.e. gram panchayat and equivalent level and are then consolidated at the district level.

As an approach to address the issue of regional imbalances in development process, a programme called BRGF Programme was launched by the Prime Minister at Barpeta in Assam on 19th February 2007. The BRGF has two components, namely, (i) District Component covering 272 backward districts in 27 States, and (ii) State Component. The funds for the District Component as well as for the State Component are allocated as an Additional Central Assistance to State Plans on 100 percent grant basis. The District component is implemented by the Ministry of Panchayati Raj while the implementation of the State component of BRGF is entrusted to the Planning Commission.

Continuation of District Component of Backward Regions Grant Fund ensures central grant support and bottoms-up local development planning. Continuation of the District Component of the Backward Regions Grant Fund (BRGF) Programme is approved to operate in its existing form for 2013-14 and until a restructured BRGF is introduced. The District Component covers 272 backward districts across 27 states and is provided as Additional Central Assistance to State Plans on a fully funded grant basis, implemented by the Ministry of Panchayati Raj. The BRGF adopts a bottoms-up planning approach with plans prepared at gram panchayat level and consolidated at district level to address regional imbalances and strengthen local governance.