Government has released Rs. 15,158.11 crore to 272 selected districts in 27 states under “Backward Regions Grant Fund” (BRGF) scheme from 2010-11 till end of January-2014.

The scheme implemented by Ministry of Panchayati Raj is gap filling in nature and aims at strengthening the Panchayati Raj Institutions (PRIs) across the country to enable them to discharge their duties for balanced development on the basis of schemes/programmes of different Ministries and States.

The BRGF provides untied funds to Panchayats on the basis of plans prepared by various Ministries and States. Financial assistance under the scheme is provided to Panchayats through the States in the shape of grant for development and for capacity building.

Along with BRGF, Ministry of Panchayati Raj also builds capacities of Panchayats through Rajiv Gandhi Panchayat Sashaktikaran Abhiyan (RGPSA), launched fully during 2013-14. Under RGPSA, in 2013-14, plans of 26 States for strengthening their Panchayats have been approved.