These states will be getting fund in the ratio of 75:25 as against the existing ratio of 65:35, HRD Ministry officials said.
The proposal has to be vetted by the National Development Council before it comes into effect.
While the average national literacy level as per the 2011 census stands at 74.04 per cent, literacy level of Bihar stands at 63.8 per cent, Uttar Pradesh at 71.7 per cent, Odisha at 65.9 per cent, Rajasthan at 67.1 per cent, Jharkhand at 67.6 per cent and Madhya Pradesh at 70.6 per cent among others.
As per the proposal, Himachal Pradesh and Uttarakhand will also be included along with the northeastern states where funding is in the 90:10 ratio.
Several states had in fact been clamouring for enhanced Centre's share arguing that they are unable to pump their share of resources for the programme.
SSA is the government flagship programme for achievement of universalisation of elementary education in a time bound manner, as mandated by 86th amendment to the Constitution making free and compulsory Education to the Children of 6-14 years age group, a fundamental right.
The programme seeks to open new schools in those habitations which do not have schooling facilities and strengthen existing school infrastructure through provision of additional class rooms, toilets, drinking water, maintenance grant and school improvement grants.