In its 92-page report presented to Parliament, the Standing Committee on Rural Development noted that under utilisation of funds was "one of the main reasons for the BIMARU States not faring well in the Human Development Index when compared to other states".
The panel, headed by Kalyan Singh, expressed concern over the delay in finalisation of BPL lists by various states.
It recommended that the Ministry should initiate all the desired measures to ensure that BPL survey for the Eleventh Plan did not meet the fate of the BPL Census done for the Tenth Plan.
"Since 2007-08 will be the first year of Eleventh Plan, the results of BPL Survey for the Eleventh Plan should be made available immediately," it said.
The Committee also expressed "strongest concern" over the decision of the Governemnt regarding cap on the total number of BPL families.
Referring to the progress of National Rural Employment Guarantee Act in 200 districts, it questioned as to why the provision for distribution of foodgrains as part of wages was made when it was likely to create several problems in meeting the legal obligation to pay wages within definite time frame.
The panel also expressed concern over the "poor lending rate" by banks for works under Swarnajayanti Gram Swarozgar Yojana.