State Balanced Growth Fund – Phase 1

State Balanced Growth
Fund - Phase 1


In response to the need for targeted development in the 100 most backward blocks and urban local bodies, the Hon’ble Minister for Finance announced the establishment of the State Balanced Growth Fund (SBGF) during the Budget Speech 2012-2013. This initiative aimed to address regional imbalances based on indicators such as health, education, gender, per capita income, poverty, and unemployment. The State Planning Commission was assigned as the nodal agency for implementation.

A total of 747 individual projects were sanctioned under SBGF, with a sector-wise allocation as follows:

Sector No. of Projects Project Cost
(Rs. in Crore)
SBGF Contribution
(Rs. in Crore)
EDUCATION 91 82.81 82.24
EMPLOYMENT 118 57.94 42.34
GENDER 66 50.99 46.22
HEALTH 218 228.00 226.53
INCOME 147 102.59 77.01
POVERTY 107 74.32 61.54
Grand Total 747 596.64 535.88

The total allocation for these projects amounted to Rs. 535.87 crore.


The primary goal of SBGF is to reduce regional disparities in key socio-economic development indicators, ultimately improving Tamil Nadu’s Human Development Index (HDI). The secondary objective involves building capacity at the district level to monitor human development status and promote inclusive economic growth.


SBGF received an annual allocation of Rs. 100 crore from 2012-13 to 2019-20, with 98% earmarked for approved projects and schemes, and 2% for administrative costs. For the subsequent two years (2020-21 and 2021-22), an annual allocation of Rs. 50 crore was provided. Monthly progress reports for SBGF projects are submitted to TNEGA and are updated on the CM Dashboard.

Monitoring Committee

A State Level Empowered Committee, headed by the Vice-Chairman of the State Planning Commission and comprising members from various government departments, was established through G.O Ms. No. 98, PD&SI (SPC) dept., dated: 08.10.2013. This committee plays a pivotal role in approving Perspective Plans and Annual Action Plans for blocks/wards and sanctioning individual projects. Additionally, it functions as a Steering Committee, overseeing, reviewing, and evaluating the program’s implementation.

Government Orders

SBGF_GO _13 - Guidelines

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SBGF_GO_83 - Amendment G.O

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SBGF_GO_98 - SLEC amendment G.O

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Go.Ms.No.68. 105 Backward Blocks

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