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Backward Regions Grant Fund (BRGF)

The Backward Regions Grant Fund is designed to redress regional imbalances in development. The fund will provide financial resources for supplementing and converging existing developmental inflows into 272 identified districts, so as to: Bridge critical gaps in local infrastructure and other development requirements that are not being adequately met through existing inflows.


  1. Bridge critical gaps in local infrastructure.
  2. Bring out other development requirements that are not being adequately met through existing inflows.
  3. Strengthen Panchayat and Municipality level governance with more appropriate capacity building, to facilitate participatory planning, decision making, implementation and monitoring, to reflect local felt needs.
  4. Provide professional supports to local bodies for planning, implementation and monitoring their plans.
  5. Improve the performance and delivery of critical functions assigned to Panchayats.

Scheme Allocation: Rs.12,000 crore for the entire Twelfth Five Year Plan period.

Funding Mechanism:

Capacity Building of local bodies is a critical component of BRGF, for which a fixed amount of Rs 1 crore per district is transferred to such bodies in each financial year, apart from untied funds granted against each district plan. These funds are utilized for in-house training of Panchayat/municipality members and other stakeholders.

The State Component includes Special Plans for certain states to reduce regional imbalances more holistically in the respective regions. This Component is managed by the Planning Commission.

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