States need not worry over the end of backward region fund: Centre

NEW DELHI: With the centrally-sponsored Backward Region Grant Fund ( BRGF) coming to an end with the Planning Commission, Centre today assured the states not to worry as they would stand to benefit even more with devolution of taxes.

Allaying apprehensions of some members in Rajya Sabha, Minister of State for Planning Rao Inderjit Singh said states like Bihar would get Rs 13,280 crore as against Rs 3,126 crore with the implementation of the 14th Finance Commission.

The Commission had recommended a 10 per cent jump in allocation of central taxes to the state.

In his reply during the Question Hour, the Minister said Jharkhand would get Rs 6,000 crore as against Rs 1,000 crore it got under the centrally-assisted programmes and Odisha would get Rs 6,700 crore as against Rs 1,100 crore.

Asked by J D Seelam (Cong) if the Government would continue with BRGF, Singh said it was up to the Niti Aayog to take a decision in this regard, the governing body of which comprised of state Chief Ministers.

"In 2015-16, no allocation has been made for the scheme as well as the other scheme of Additional Central Assistance for Maoist-affected districts as these have become a part of devolution to the states, providing them much needed flexibility to plan the development scheme of such areas and allocate funds as per local requirements," he said.