The Centre will spend Rs 900 crore on strengthening of Gram Panchayats across the country from next year, Union Rural Development Minister Jairam Ramesh has said.

"From next year, government will spend one per cent of the total of Rs 90,000 crore provided for rural development, on strengthening Gram Panchayats, which works out to Rs 900 crore," he announced at Hivre Bazare in Ahmednagar district, known as 'a model village' in Maharashtra.

Stating that the government was committed to strengthening Gram Panchayats, Ramesh said, "Gramsabha is the first level of democracy".

Later talking to reporters, Ramesh said he expected an increase in the provision for drinking water supply and sanitation in rural areas in the forthcoming budget.

Describing the Mahatma Gandhi National Rural Employment Guarantee scheme as a flagship programme of the government, Ramesh said a whopping Rs 40,000 was being spent on it to generate employment.

He said the second phase of the programme under NAREGA would start in April which will have a greater agricultural orientation.

Replying to a question on the recent murder of an IPS officer in MP allegedly by a mining mafia, Ramesh said "both legal and illegal mining pose serious environmental problems.

We must do mining only after protecting environment as well as the interests of local communities".