Union Rural Development Minister Jairam Ramesh on Tuesday extended his support to the demand for giving privilege (concessions) to the state governments on the basis of priority under centrally-sponsored schemes.

"I think it will be implemented during the 12th five-year plan period," Ramesh told reporters.

He also stressed that the central schemes be formulated in keeping with the needs and requirements of states and the states be given the freedom or concession on expenditure in accordance with its priority and requirements.

Ramesh said his ministry used to spend Rs 8,88,000 crore every year and till now there was no elasticity in the central schemes.

"Twelfth five-year plan will have it," the union minister said, adding that the states could spend 50 per cent of the funds under the central schemes in keeping with its priority and requirements, while the Centre would be free to ask states to spend 50 per cent of the funds on its priority.

"We have discussed the matter with Prime Minister", Ramesh added.

"The states which talk to the Centre about centralisation for financial assistance, should also take steps for decentralisation in the states and ensure that the panchayati raj institutions play more role and these institutions be devolved with some extra powers," he said.

He stressed the need for the states to strengthen the panchayati raj institutions.

"Central agency will not be involved for work under PMGSY. We have not found any difference in the quality of roads by the state governments and central agencies under PMGSY. State governments will be responsible for implementation of PMGSY from the next financial year," the Union Rural Development Minister told reporters.

Stating that five central agencies had carried out road construction in Bihar under PMGSY, he said the quality of work, however, was a subject of concern.

His ministry was always eager to assist Bihar, Ramesh said, adding that there was no dispute between the state and the central government on the issue of core network.

Ramesh said the Centre would soon sanction the proposal to construct about 1,200 km of roads, besides bridges in five districts of the state.

All villages with a population of 250 people and above in naxal-hit nine districts would be linked with roads under PMGSY and areas connected with the core network would have roads, he said.

The minister noted that the Maoist problem during the last 20 to 25 years was much less in Bihar than in other states.