New scheme for backward region
The Union government has come out with a new scheme for the country’s backward regions called Backward Region Grant Fund (BRGF). It has an annual budget of close to Rs 5000 crore, and will be implemented through the Panchayati Raj Institutions (PRIs). After the ministry of Panchayati Raj was created out of the rural development ministry in 2004, this is the first major scheme being administered by it. Under the scheme the PRIs will plan, design and implement the scheme. One way this is the first scheme where fiscal decentralisation to PRIs being experimented by the Union government.

For the fiscal 2006-7, government has allocated Rs 3,750 crores to 250 districts covered under the BRGF. Being a major scheme to be implemented by the PRIs, it has provisions for capacity building of the local governments. Each district will get Rs 1 crore for this purpose. From the fund, each district is allocated a minimum Rs 10 crore annually. 50 per cent of the remaining Rs 1,000 crore would be divided between the districts on the basis of its population and 50 per cent on the basis of area.

Food component in SGRY curtailed
Facing its worst food grain shortage in recent past, government has decided to cut down the food grain component paid as part of the wages to rural labourers under the Sampoorna Grameen Rozgar Yojana (SGRY). In a recent circular by the Union ministry of rural development (MoRD) instructed the state governments to replace food grain with cash component. With this the MoRD allocated the entire available food grain for this scheme of 17 lakh metric tones to states. No further food grain will be available for the scheme.

Under the scheme 50 lakh tones of food grains amounting to Rs 5,000 crores was to be provided free of cost every year to the workers. Every worker covered under the SGRY is also provided a minimum 5 kgs of food grains per working day as part of the wages along with cash. From this year, government will give 3 kg instead of 5 kg per mandays (working day) as part of wages in the current year.


MP high court on BPL list
The Madhya Pradesh High Court has issued notices to Union and state governments challenging the removal of 21 lakh families from the poverty list in response to a public interest litigation. The State Government has removed the names of over 21 lakhs ration card holders of families living below poverty line out of the total 48.74 lakh such ration card holder families by an order on May 27. As a result of this these families have been stopped from accessing subsidised rations from public distribution scheme outlets.


Decentralisation index
The Delhi-based National Centre for Applied Economic Research (NCAER) along with the ministry of Panchayati Raj has developed an index to measure decentralisation of power at Panchayats level. It is based on the Human Development Index used by various agencies to monitor development. It is a crucial development given that the ministry will use this index to measure decentralisation and on that basis will decide financial allocation.

Haryana for a rural development authority
Haryana will set up a rural development authority. Its inspiration: the Haryana Urban Development Authority. It aims at focusing efforts to develop rural Haryana. Going by preliminary plans, the authority will try to help big villages to urbanise. Under the new plans, bigger villages having a population of over 10,000 people will have residential sectors and facilities like sewerage system and metalled roads like urban centres. As a part of this, the state will allow the Panchayats to implement projects up to Rs 3,00,000 on their own and without state approval.