This was decided at the performance review meeting of the state panchayati raj department.
"Chief Minister Naveen Patnaik has directed to extend the GGY to all 30 districts in view of the Centre discontinuing funding under BRGF and IAP," said state panchayati raj minister Arun Kumar Sahoo.
Though the state used to annually get Rs 250 crore under the Backward Region Grant Fund (BRGF) and Rs 524 crore under the Integrated Action Plan (IAP), there was no provision for the state in the Centre's 2015-16 budget.
Earlier, the state government had implemented the GGY only for the coastal districts after the Centre introduced BRGF for the development of the backward districts, he said.
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The state would provide Rs 650 crore every year under the GGY, the minister said adding the focus has been on the improvement of the drinking water and road infrastructure in the backward districts.
The meeting chaired by Patnaik also decided to restructure the panchayats keeping in view the population ratio, geographical area and administrative facilities.
So far 3.52 lakh pucca houses have been constructed, the minister said.
Among others, it was also decided to reduce the interest rate by one per cent over loans given to women self-help groups, Sahoo added.