New Delhi In a bid to provide states greater say in formulating social sector programme, the rural development ministry on Thursday proposed setting up a flexi-fund of R40,000 crore of which 70% will be contributed by the Centre during 12th plan period.

The Rural Development Flexi-Fund (RDF) would be available to states as an additional allocation that could be used on existing centrally sponsored schemes of rural development and drinking water and sanitation industries or on the new projects designed by respective states.