The Backward Regions Grant Fund (BGRF) and the state component of Rajiv Gandhi Panchayat Sashaktikaran Abhiyan (RGPSA) have been delinked from budgetary support of the Central government, parliament was informed today.
"This has been done in view of the enhanced fiscal space made available to the states by the 14th Finance commission award on account of higher devolution of funds to the states from 32 per cent to 42 per cent of the net tax receipts," Minister of state Panchayati Raj Parshottam Rupala said in a written reply in Rajya Sabha.
He added that the ministry has been monitoring the implementation of the BRGF and RGPSA through submission of various documents by the state governments.
With the delinking of these programmes, the state governments have been asked from time to time to reconcile the funds released and sub,it the physical progress and utilisation of funds, he said.
BRGF was designed to redress regional imbalances in development. The fund was supposed to provide financial resources for supplementing and converging existing developmental inflows into 250 identified districts.
While the RGSY was aimed at enhancing capacities and effectiveness of panchayats and the gram Sabhas. The scheme also enables democratic decision-making and accountability in panchayats.
