A broad indication regarding the development of backward areas in the state as well as to balance the regional imbalance was recommended by the high power committee for Redressal of Regional imbalance (HPCFRRI) committee formed and it is headed by Dr. D. M Nanjundappa.

According to the committees recommendations, all the taluks are categorized into three depends upon the backwardness of the area by keeping certain criteria i.e., the status of Malnad Area Development Board is as below:

In Action Plan the sectoral allocation of funds is made as follows

As per the Dr. D. M Nanjundappa committee report 2 Most Backward Taluks have been given importance while allocating funds for preparation of Additional Action Plan 2010-11.