Rs 5000 cr approved for Backward Regions Grant Fund

New Delhi, Aug 10 (UNI) The UPA government today announced a Rs 5,000 crore budget for the Backward Regions Grant Fund and the Rashtriya Sam Vikas Yojana for 2006-07, describing it as a ''red letter day for the Panchayati Raj movement.'' Making the announcement, approved at a meeting of the Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Manmohan Singh, Finance Minister P Chidambaram and Panchayati Raj Minister Mani Shankar Aiyar told reporters that the Centre would ensure that the funds reach the Panchayats ''without delay or diversion.'' There would be provision for channelising funds to Jharkhand, where Panchayati elections are yet to be held, and a few other states which have been exempted under the Constitution from local body polls, Mr Aiyar said.

However, the scheme would make it mandatory for states to hold local body elections at regular intervals, they said.

The draft guidelines for the programme would be finalised within a few days in consultation with the Planning Commission and then the views of the states would be taken, Mr Aiyar said.

While the Planning Commission would monitor the programme, Panchayati Raj Ministry would lay down the guidelines and administer it, he said.

MORE UNI SN/SH VA KP2056