The Andhra Pradesh Backward Classes Sub-Plan (Planning, Allocation and Utilization of Financial Resources) Act, 2019

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THE ANDHRA PRADESH BACKWARD CLASSES 
SUB-PLAN (PLANNING, ALLOCATION AND 

UTILIZATION OF FINANCIAL RESOURCES) ACT, 2019.

ARRANGEMENT OF SECTIONS

Sections

CHAPTER I
PRELIMINARY

1.   Short title, extend and commencement, duration and savings.
  2.   Definitions.

CHAPTER II

PLANNING, RESOURCE ALLOCATION FOR BACKWARD CLASSES

SUN-PLAN FUNDS AND SCHEMES

3.  Earmarking of  Backward Classes Sub-Plan Fund from Plan 
outlays.

4. Communication of Plan outlay earmarked Backward Classes 
as Sub Plan Fund to the departments.

5.  Schemes to  be  included under  the  Backward Classes  Sub-
Plans.

6. Promotion of equity among Backward Classes.

7. Obligation to cover Backward Classes in general Schemes.

8.Formulation  of  Backward  Classes  Sub-Plan  schemes  and 
preparation of Sub-Plans by the departments.

9. Submission of Sub-Plan proposed to be included in the Annual 
Plan for appraisal.

CHAPTER III

APPRAISAL ALLOCATION OF BACKWARD CLASSES 

SUB-PLAN FUND AND APPROVAL OF THE SUB-PLAN

10. Appraisal of the Backward Classes Sub-Plan Schemes by the 
Nodal Agencies.



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11. Allocation of Backward Classes Sub-Plan Fund for financing 
the  Backward  Classes  Sub-Plan  Schemes  included  in  the 
Sub-Plan.

12.  Recommendation  by  the  Nodal   Agencies  and  Nodal 
Department.

CHAPTER IV

BUDGET PROVISIONING DISTRIBUTION AND STRENGTHENING

OF IMPLEMENTATION MACHINERY

13. Budget allocations.

14. Backward Classes Sub-Plan wing in Finance Department.

15. Budget Release Orders.

CHAPTER  V

INSTITUTIONAL ARRANGEMENTS

16. State Council for Development of Backward Classes.

17. Functions of the State Council.

18. Nodal agency and Nodal Department.

19. Functions of Nodal Agency and Nodal Department.

20. Administrative and technical support to Nodal Department 
for Backward Classes Sub-Plan.

21. Department level Sub-Plan Support Unit.

22. Implementation of Backward Classes Sub-Plan schemes in 
the districts.

23. Institutional strengthening for effective implementation and 
monitoring.

CHAPTER VI

TRANSPARENCY AND ACCOUNTABILITY IN THE IMPLEMENTATION 

OF BACKWARD CLASSES SUB-PLAN



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24. Transparency and accountability.

25. Incentives and penalties

26. Annual Report to be placed before State Legislature.

27. Power to make Rules.

28. Power to remove difficulties.

THE ANDHRA PRADESH BACKWARD CLASSES 
SUB-PLAN (PLANNING, ALLOCATION AND 

UTILIZATION OF FINANCIAL RESOURCES) ACT, 2019.

 (ACT No.13 of 2019)
[19th  February, 2019]

AN ACT TO ENSURE, ACCELERATED DEVELOPMENT OF BACKWARD 
CLASSES  WITH EMPHASIS  ON ACHIEVING  EQUALITY IN  THE NEXT 
TEN  YEARS  FOCUSING  ON  ECONOMIC,  EDUCATIONAL  AND  HUMAN 
DEVELOPMENT ALONG WITH ENSURING THE SECURITY AND SOCIAL 
DIGNITY AND PROMOTING EQUITY AMONG BACKWARD CLASSES, BY 
EARMARKING  A  PORTION,  IN  PROPORTION  TO  POPULATION  OF 
BACKWARD CLASSES  IN THE STATE, OF THE TOTAL PLAN OUTLAY 
OF  THE  STATE  OF  ANDHRA  PRADESH  AS  THE  OUTLAY  OF  THE 
BACKWARD  CLASSES  SUB-PLAN  OF  THE  STATE  AND  ENSURING 
EFFECTIVE  INSTITUTIONAL  MECHANISMS  FOR  THE 
IMPLEMENTATION AND FOR MATTERS CONNECTED THEREWITH OR 
INCIDENTAL THERETO. 

Be it enacted by the Legislature of the State of Andhra Pradesh in the 
seventieth year of the Republic of India as follows:

CHAPTER I
PRELIMINARY 

1. Short title, extent, commencement, duration and savings –  (1) This 
Act  may  be  called  the  Andhra  Pradesh  Backward  Classes  Sub-Plan 
(Planning, Allocation and Utilization of Financial Resources) Act, 2019. 

(2) It extends to the whole of the State of Andhra Pradesh. 

(3) It shall come into force on such date as the State Government may, 
by notification in the Andhra Pradesh Gazette, appoint, and different dates 
may be appointed for different provisions of this Act. 



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(4) It  shall ceases to have effect after the expiry of ten years from the 
date of commencement, except in respect of this done or omitted to be done 
before  such  cesser  and  upon  such  cesser  the  Andhra  Pradesh  General 
Clauses Act, 1891(Act  No.1 of 1891),  shall apply as if  this Act had been 
repealed by a State Act. 

2. Definitions – In this Act, unless the context otherwise requires, -

(a) “Backward classes” shall have the meanings assigned respectively 
under Article 15 and 16 of the Constitution of India as specified by the State 
Government from time to time. 

(b) “Backward classes Sub-Plan (BCSP)” means the Plan approved by 
the State Council  for  inclusion in the Annual Plan of  the Department to 
bridge the gap in development of Backward Classes and shall include the 
Backward classes component of general schemes;

(c)  “Backward classes Sub-Plan Fund” means a portion of the total 
plan  outlays  of  the  State,  in  a  financial  year,  as  earmarked  under  the 
section 3;

(d)  “Backward  Classes  habitation”  means  any  habitation  where 
population of Backward Classes is not less than 40% of the total population 
of the habitation; 

(e)  “Backward  classes  Sub-Plan  Schemes”  means  the  Backward 
Classes Sub-Plan schemes included in the Backward Classes Sub-Plan of 
the Departments; 

(f) “Gaps in development” means differences in development indicators 
of  Backward  Classes  when  compared  to  the  state  averages,  as  may  be 
prescribed particularly relating to human and economic development; 

(g) “General Schemes” means schemes included in the Annual Plans of 
the  Departments  which  benefit  all  social  groups  including  Backward 
classes; 

(h) “Government” means the State Government of Andhra Pradesh; 

(i) “Nodal Agency for BCSP” means the committee headed by Minister 
of Backward Classes Welfare; 

(j) “Nodal Department” means Backward Classes Welfare Department 
for Backward Classes Sub-Plan; 



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(k) “Notification” means notification published in the Andhra Pradesh 
Gazette and the word ‘Notified’ shall be construed accordingly; 

(l) “Prescribed” means prescribed by the Government by rules made 
under the Act; 

(m) “State Council” means State Council for Development of Backward 
Classes constituted under the Act; 

(n) “Sub-Plans” means Backward Classes Sub-Plan (BCSP); 

(o) “The Department” means any Government Department concerned 
with  implementation  of  the  plan  schemes  for  the  welfare  of  Backward 
classes;

CHAPTER II

PLANNING, RESOURCE ALLOCATION FOR BACKWARD CLASSES

SUN-PLAN FUNDS AND SCHEMES

3. Earmarking of Backward Classes Sub-Plan Fund from Plan outlays –  

The State shall, in every financial year, earmark one-third portion of 
the total Plan outlays of the State to be called as Backward Classes Sub-
Plan Fund: 

Provided  that,  the  Fund to  be  earmarked is  determined at  least  6 
months prior to commencement of the next financial year:

Provided further that,  the Backward Classes Sub-Plan Fund outlay 
shall be revised according to State Annual Plan final outlay and:

 Provided  also  that  the  expenditure  of  the  BCSP  Fund  shall  be 
accounted for in the manner hereafter specified in this Act.

4. Communication of Plan outlay earmarked Backward Classes as Sub 
Plan Fund to the departments – The department as may be authorized by 
the Government shall,  every financial  year,  communicate, in the manner 
prescribed,  to  the  departments,  a  tentative  plan outlay  out  of  Backward 
Classes Sub-Plan Fund as earmarked under Section 3 for preparation of 
respective department wise Backward Classes Sub-Plan.

5. Schemes to be included under the Backward Classes Sub-Plans -  The 
Sub-Plans of the departments shall include only such schemes that secure 
direct  and  quantifiable  benefits  to  the  Backward  Classes  individuals  or 
Backward Classes households and that have the potential to bridge the gaps 



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in  development  following the norms laid down in this  Act  and the rules 
made there under:

Provided that the schemes should be consistent with the Annual and 
Five Year Plans and priorities of the State of Andhra Pradesh as may be 
communicated by the Planning department.

6.  Promotions  of  equity  among Backward  Classes  –  The  departments 
shall  prepare  Backward  Classes  Sub-Plan  to  promote  equity  in  the 
development among various Castes within Backward Classes and focused 
development within.

7.  Obligation  to  cover  Backward  Classes  in  general  schemes  –  The 
departments  shall  ensure  coverage  of  Backward  Classes  in  the  ongoing 
general schemes consistent with their eligibility for the same.

8. Formulation of Backward Classes Sub-Plan schemes and preparation 
of Sub-Plans by the departments -   On receipt of communication under 
section  4,  each  department,  shall,  after  estimating  the  gaps  in  the 
development  of  Backward  Classes,  prioritize  the  development  needs  of 
Backward Classes through a consultative process, as may be prescribed and 
shall formulate the Backward Classes Sub-Plan schemes and prepare the 
Sub-Plans comprising of the Backward Classes Sub-Plan schemes, within 
the State Plan priorities as communicated under section 5. 

9. Submission of Sub-Plan proposed to be included in the Annual Plan 
for  appraisal  -  Each  Department,  excluding  the  departments  separately 
notified  under  this  Act,  shall  submit  each  year,  to  the  respective  Nodal 
Departments,  the  Sub-Plans  comprising  of  Backward  Classes  Sub-Plan 
Schemes proposed to be included in the Annual Plans, for appraisal by the 
Nodal Agency concerned, within the time frame and in the format, as may be 
prescribed. 

CHAPTER III

APPRAISAL ALLOCATION OF BACKWARD CLASSES 

SUB-PLAN FUND AND APPROVAL OF THE SUB-PLAN

10. Appraisal of the Backward Classes Sub-Plan Schemes by the Nodal 
Agencies – The Nodal Agency for Backward Classes Sub-Plan, shall take up 
appraisal  of  the  Backward  Classes  Sub-Plan  Schemes  submitted  by 
departments, to ensure conformity with the conditions and norms laid down 
in the Act. 

11.  Allocation  of  Backward  Classes  Sub-Plan Fund for  financing  the 
Backward  Classes  Sub-Plan  Schemes  included  in  the  Sub-Plan  -  The 
respective  Nodal  Agency,  while  indicating allocation of  Backward Classes 



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Sub-Plan Fund to the Backward Classes Sub-Plan Schemes shall follow the 
following norms namely; -

(a)  For  schemes  exclusively  benefiting  Backward  Classes 
individuals  or  Backward  Classes  households,  100%  of 
scheme  cost  shall  be  allocated  and  accounted  for  under 
Backward Classes Sub-Plan fund. 

(b)  For  schemes  benefiting  Backward  Classes  habitations, 
100% of scheme cost shall be allocated and accounted for 
under  Backward  Classes  Sub-Plan  fund  in  case  of  other 
habitations  the  cost  shall  be  allocated and accounted for 
under  Backward  Classes  Sub-Plan  in  proportion  of  the 
population of the Backward Classes; 
  
(c)  For  general  schemes,  included  in  the  Sub-Plans, 
benefitting  Backward  Classes  individuals  or  households, 
along with others, the scheme cost shall be allocated and 
accounted  for  under  Backward  Classes  Sub-Plan,  in 
proportion to the Backward Classes beneficiaries covered; 

(d) In respect of non-divisible infrastructure works a portion 
of  the  scheme  cost  as  may  be  determined  by  the 
Government  shall  be  deemed to  have  been attributed  for 
Backward Classes Sub-Plan.

12. Recommendation by the Nodal Agencies and Nodal Department - 
The  schemes  that  fulfill  the  norms  laid  down  in  the  Act  shall  be 
recommended by Nodal Agency for Backward Classes Welfare for inclusion 
in the Annual Plan proposals of the departments and aggregated for placing 
before  the  State  Council  for  Development  of  Backward  Classes,  for 
consideration and approval as a pre-budget process.

CHAPTER IV

BUDGET PROVISIONING DISTRIBUTION AND STRENGTHENING

OF IMPLEMENTATION MACHINERY

13. Budget allocations -  The budget approved by the State Council for 
Backward Classes Sub-Plan shall be included in the Demands for Grants for 
the  departments  under  the  relevant  head  of  account  for  the  Backward 
Classes Sub-Plan.

14.  Backward  Classes  Sub-Plan  wing  in  Finance  Department  -  There 
shall  be  an  exclusive  Secretary,  Finance  in  Finance  Department  for 
performing the functions relating to Budget implementation and allocation 
according to the provisions of this Act within the overall discipline of the 
ways and means positions as determined by the Finance department.

15. Budget Release Orders - Budget Release Orders shall be issued to each 
department, for the amount provided in the Budget Estimates for Backward 



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Classes  Sub-Plan  immediately  after  passing  of  the  budget  by  the  State 
Legislature in accordance with the schedule and norms prescribed.

CHAPTER  V

INSTITUTIONAL ARRANGEMENTS

16. State Council for Development of Backward Classes - (1) As soon as 
may be,  after  the  commencement  of  this  Act,  the  Government  shall,  by 
notification, constitute a Council under the Chief Minister, to be known as 
the  State  Council  for  Development  of  Backward  Classes  to  exercise  the 
powers conferred and to perform the functions assigned to it under the Act 
and the rules made thereunder. 

  (2) The State council shall meet at least twice in a year.

17. Functions of the State Council – The State Council shall:-

(a) Advise the State Government on all  the policy matters 
relating to Backward Classes Sub-Pan;

(b)  Suggest  measures  for  proper  planning  and 
implementation of the schemes by the departments;

(c)  Approve  the  Annual  Backward  Classes  Sub-Plan 
proposals of the Departments;

(d) Perform such other functions as may be prescribed.

18. Nodal agency and Nodal Department – (1)  Nodal Agencies headed by 
Minister of Backward Classes Welfare, shall be constituted in the manner 
prescribed, for Backward Classes Sub-Plan and shall exercise the powers 
conferred and perform the functions assigned under this Act.

(2)  The  Backward  Classes  Welfare  Department  shall  act  as  Nodal 
Department  for  assisting  the  respective  Nodal  Agency  to  perform  its 
functions and exercise its powers.

19.  Functions  of  Nodal  Agency  and  Nodal  Department  –  The  Nodal 
Agency with the assistance of the Nodal Department shall:

(1)  Evaluate  and  appraise  Backward  Classes  Sub-Plan 
proposed by the departments for ensuring conformity to the 
provisions of this Act;  

(2)  Prepare  State  Backward  Classes  Sub-Plan  for  placing 
before  the  State  Council  for  Development  of  Backward 
Classes for consideration and approval;



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(3) Recommend reallocation of Backward Classes Sub-Plan 
funds from a department to other department; 

(4)  Review  the  implementation  and  monitoring  of  the 
Backward Classes Sub-Plan programme; 

(5)  Identify  impediments  and  suggest  measures  for 
overcoming the impediments;  

(6)  Co-ordinate  with  the  departments  for  preparation  of 
State Level and district level Backward Classes Sub-Plan; 

(7) Maintain transparency in expenditure; maintain scheme 
wise; district wise, village wise and beneficiary wise details 
as may be prescribed; set up a web portal for tracking the 
progress  of  the  implementation,  expenditure,  output  and 
outcome  indicators  as  may  be  prescribed  of  Backward 
Classes Sub-Plan; 

(8) Facilitate at least annual social auditing of expenditure of 
Backward Classes Sub-Plan funds and facilitate analysis of 
improvement  in  Human  Development  Index  against  the 
projections for the State and district:

Provided that the directions of the Nodal Agency shall be 
binding on the Departments.

20.  Administrative  and  technical  support  to  Nodal  Department  for 
Backward  Classes  Sub-Plan  – The  Government  shall  appropriately 
strengthen the  Nodal  Departments  of  Backward Classes Welfare  with an 
Administrative and Technical Support Unit and a Sub-Plan Research Centre 
as may be prescribed, to perform the functions and discharge the duties 
assigned to it and to assist the respective Nodal Agency.

21.  Department  level  Sub-Plan  Support  Unit  – The  departments  as 
identified by the State Council may establish a Sub-Plan Support Unit, as 
may be prescribed to manage the Backward Classes Sub-Plan. 

22.  Implementation  of  Backward  Classes  Sub-Plan  schemes  in  the 
districts  –  (1)  The  Government  shall  constitute  a  District  Monitoring 
Committee in each district with the District Collector as its Chairman, which 
shall be responsible for implementation of the Backward Classes Sub-Plan 
in the district. 

 (2) The District Planning Committees of each district shall review the 
implementation of Backward Classes Sub-Plan, periodically.

23.  Institutional  strengthening  for  effective  implementation  and 
monitoring –  The respective departments of Government shall  take such 
measures  as  may  be  necessary  for  institutional  strengthening  of  State 
District and Sub-District units by providing necessary guidelines staff and 



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training to the staff in the manner prescribed for effective implementation 
and monitoring.

CHAPTER VI

TRANSPARENCY AND ACCOUNTABILITY IN THE IMPLEMENTATION 

OF BACKWARD CLASSES SUB-PLAN

24. Transparency and accountability – (1) Each department shall ensure 
transparency  and  accountability  at  all  levels  in  the  implementation  of 
Backward Classes Sub-Plan schemes.

(2) Each department shall, host the documents, as may be prescribed 
in public domain.

25.  Incentives  and  penalties  -  Government  shall  formulate  and 
appropriate scheme, to award incentives for commendable performance and 
disincentives for proven negligence and lack of due diligence, in discharge of 
responsibilities under this Act by any functionary or official concerned:

 Provided that disciplinary action shall be governed by the relevant 
service/disciplinary  rules  applicable  to  the  Government  officials  and 
functionaries.

26. Annual Reports to be placed before State Legislature –  The Nodal 
agency  shall  place  before  the  State  Legislature,  an  Annual  Report  on 
outcome  of  implementation  of  Backward  Classes  Sub-Plan  containing 
department-wise  achievements  and  the  un-utilized  funds  during  the 
financial year under report. 

27. Power to make Rules - (1) Subject to the other provisions of this Act, 
the Government may, by notification, make rules for carrying out all or any 
of the purposes of this Act. 

         (2)  In particular  and without prejudice to  the generality  of  the 
foregoing  power,  such  rules  may  provide  for  all  or  any  of  the  following 
matters, namely: 

(a)  Determination  of  gaps  in  development  of  Backward 
Classes under section 2 (b); 

(b)  Earmarking  Backward Classes  Sub-Plan Funds  from 
the plan outlays under section 3; 

(c)  Identification of  Backward Classes  Sub-Plan Schemes 
and  preparation  of  Sub-Plans  by  the  departments  under 
section 8;  



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(d)  Preparation  of  budget  proposal  of  Backward  Classes 
Sub-Plan  for  appraisal  by  the  Nodal  Departments  under 
section 9; 

(e)  Strengthen  the  Finance  Department  for  monitoring 
expenditures under the Backward Classes Sub-Plan under 
section 14;  

(f) Constitution of, and transaction of business in the State 
Council  for  development  of  Backward  Classes;  the 
qualification,  disqualification  and other  allowances  to  the 
non-official members of the State Council under section 16; 

(g)  Constitution of  Nodal  Agencies for  Backward Classes 
Sub-Plan under section 18; 

(h) Maintenance of a web portal by the Nodal Agency under 
section 19;

(i)  Constitution  of  Administrative  and  Technical  Support 
Unit in respective Nodal Department for Backward Classes 
Sub-Plan under section 20; 

(j)  Constitution  of  Sub-Plan  Support  Unit  at  department 
level under section 21; 

(k) Constitution of District Monitoring Committees and the 
connected matters under section 22; 

(l)  Institutional  strengthening  at  State,  district  and  sub-
district  level  for  ensuring  effective  implementation, 
awareness,  mass  contact  programme,  social  audit  and 
monitoring of  Backward Classes Sub-Plan under section 
23; and  

(m) Procedures for ensuring transparency and accountability 
in  the  implementation  of  Backward  Classes  Sub-Plan 
under section 24.

(3) Every rule made under this Act shall, immediately after it is made, 
be laid before the Legislature of the State, if it is in session and if it is not in 
session, in the session immediately following for a total period of fourteen 
days which may be comprised in one session or in two successive sessions 
and if,  before the  expiration of  the  session in which it  is  so laid or  the 
session  immediately  following  the  Legislature  agrees  in  making  any 
modification in the rule or in the annulment of the rule, the rule shall, from 
the date on which the modification or annulment is notified, have effect only 
in  such  modified  form or  shall  stand  annulled  as  the  case  may  be  so, 
however,  that  any  such  modification  or  annulment  shall  be  without 
prejudice to the validity of anything previously done under that rule.



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28. Power to remove difficulties – (1) If any difficulty arises in giving effect 
to the provisions of  the Act,  the Government may,  by order,  make such 
provisions or give such directions not inconsistent with the provisions of the 
Act as may appear to it to be necessary or expedient for the removal of the 
difficulty: 

         Provided that no such power shall be exercised after the expiry of a 
period of two years from the commencement of this Act. 

          (2)    Every order made under this section shall be laid, as soon as it  
is made, before each House of the State Legislature.

               R.ARAVIND,
Secretary to Government (I/c),

Legal and Legislative Affairs & Justice,
Law Department.