Government feels that human development indicators should be taken into consideration to determine backwardness. Presenting the Budget 2013-14 in the Lok Sabha today, the Finance Minister Sh. P. Chidambaram proposed to evolve new criteria such as per capita income and other HDIs and reflect them in future planning and devolution of funds. Terming the Backward Regions Grant Fund as a vital source of gap funding, the Finance Minister proposed to allocate Rs. 11,500 crores in 2013-14 as well as another sum of Rs. 1,000/- crores for Left Wing Extremism (LWE) affected districts. The Minister announced that the Fund will include a State Component for Bihar, the Bundelkhand region, West Bengal, the Kalahandi, Bolangir and Korapet (KBK) districts of Odisha and the 82 districts under the Integrated Action Plan.

DSM/VK/Ombeer/26

(Release ID :92713)

Criteria for determining backwardness to incorporate human development indicators and per capita income, guiding future fund devolution. Revised criteria for determining backwardness will include human development indicators such as per capita income to guide future planning and devolution of funds. The Backward Regions Grant Fund is identified as the principal gap funding mechanism, with specified allocations and a State Component directed to certain regions and districts, including those affected by left wing extremism and areas under the Integrated Action Plan.