**Executive Summary**
The document is a response to Unstarred Question No. 663 in Lok Sabha concerning centrally sponsored schemes in Gram Panchayats, specifically addressing the capacity of Gram Panchayats in Dharmapuri district, Tamil Nadu, to plan and implement these schemes, the funds allocated, monitoring efforts, and steps taken to strengthen financial autonomy. The response provides details of scheme implementation, fund allocation and monitoring, and the use of digital platforms for enhanced governance. The response was answered on 03.02.2026
**Key Points / Main Content**
* **Panchayati Raj Institutions (PRIs) Support:**
* The Ministry of Panchayati Raj (MoPR) supplements State Governments' efforts to strengthen and efficiently function PRIs through financial support and schemes.
* **Centrally Sponsored Schemes:**
* Revamped Rastriya Gram Swaraj Abhiyan (RGSA) is implemented for capacity building and training of elected representatives.
* Incentivisation of Panchayat (IoP) provides incentives for good developmental works.
* e-Panchayat Mission Mode Project (eMMP) promotes e-governance.
* **Implementation and Training (2025-26):**
* 1156 elected representatives and functionaries were trained under RGSA in Dharmapuri.
* All 251 Gram Panchayats in Dharmapuri finalized and uploaded their Gram Panchayat Development Plans on eGramSwaraj Portal.
* **Central Fund Allocation (Tamil Nadu):**
* Details provided for Fifteenth Finance Commission (FFC) grants for 2022-23, 2023-24, and 2024-25.
* RGSA and IoP funds are not released directly to the district.
* IoP funds are released to the National Panchayat Awards winning Panchayats.
* **Performance Monitoring:**
* The Ministry compiles Panchayat Advancement Index (PAI) to monitor performance in attaining Sustainable Development Goals (LSDGs).
* **Financial Autonomy and Technical Support:**
* Finance Commission grants are deposited directly into Panchayat accounts.
* Transactions are recorded on PFMS and eGramSwaraj portal.
* **Digital Platforms:**
* eGramSwaraj application facilitates planning, accounting, monitoring, and online payments.
* Integration with PFMS enables real-time payments.
* Integration with Government e-Marketplace (GeM) facilitates transparent procurement.
* Meri Panchayat provides public access to information.
* Panchayat NIRNAY promotes transparency in Gram Sabha conduct.
* 'AuditOnline' facilitates online audits of Panchayat accounts.
**Impact Analysis**
**Stakeholder: Gram Panchayats (Particularly in Dharmapuri, Tamil Nadu)**
* **Impact:** Increased capacity through training (RGSA), potential for incentives (IoP), improved planning and financial management via eGramSwaraj, and enhanced transparency in governance (Meri Panchayat, Panchayat NIRNAY).
* **Action Required:** Utilize training and digital platforms for better planning, financial management, procurement, and governance; participate in Panchayat Advancement Index initiatives.
**Stakeholder: Elected Representatives and Functionaries of Gram Panchayats**
* **Impact:** Enhanced skills and knowledge through RGSA training, potential recognition through IoP.
* **Action Required:** Actively participate in training programs, implement learnings in daily operations, and strive for improved performance to qualify for incentives.
**Stakeholder: State Governments (Specifically Tamil Nadu)**
* **Impact:** Supplemented efforts towards strengthening PRIs, responsibility for fund distribution in accordance with State Finance Commission recommendations.
* **Action Required:** Ensure proper distribution of funds to Panchayats, comply with Department of Expenditure guidelines, facilitate the use of digital platforms, and support Panchayat-level initiatives.
**Stakeholder: Citizens**
* **Impact:** Increased transparency and accessibility of information regarding Panchayat activities and progress, potential for improved local governance and service delivery.
* **Action Required:** Engage with the Meri Panchayat platform to stay informed, participate in Gram Sabhas, and hold Panchayats accountable for their performance.
Key Entities Referenced
Ministry of Panchayati Raj (MoPR): The central ministry responsible for supplementing the efforts of State Governments in strengthening Panchayati Raj Institutions.
Panchayati Raj Institutions (PRIs): Local self-government institutions in rural India.
Rastriya Gram Swaraj Abhiyan (RGSA): A Centrally Sponsored Scheme for capacity building and training of elected representatives of PRIs.
eGramSwaraj: Digital platform designed to facilitate planning, accounting, monitoring, and online payments at the Panchayat level.
Dharmapuri district: A district in Tamil Nadu, India, used as an example for assessing capacity and implementation of centrally sponsored schemes in Gram Panchayats.
GOVERNMENT OF INDIA
MINISTRYOF PANCHAYATI RAJ
LOK SABHA
UNSTARREDQUESTION NO. 663
ANSWEREDON03.02.2026
CENTRALLYSPONSOREDSCHEMESIN GRAM PANCHAYATS
663: SHRIMANI A:
Will the Minister of PanchayatiRaj be pleased tostate:
(a) whether the Government has assessed the capacity of Gram Panchayats in
Dharmapuri district toplan andimplementCentrallysponsored schemeseffectively;
(b) if so, the detailsof the Central funds allocated,releasedandactuallyutilised by
Panchayats in the district under major schemes routed through Panchayati Raj
Institutions during the last three years;
(c) whether any performance or outcome-based monitoring of Panchayat-level works is
beingcarriedout bythe Ministry; and
(d) the steps being taken to strengthen financial autonomy, staffing and technical support
toPanchayatsinbackward districts like Dharmapuri?
ANSWER
THE MINISTER OF PANCHAYATI RAJ
(SHRIRAJEEVRANJAN SINGH ALIAS LALAN SINGH)
(a) & (b) Panchayat is a State subject and the Ministry of Panchayati Raj (MoPR)
supplements and complements the efforts of State Governments, including financial support
under the schemes towards strengthening and efficient functioning of the Panchayati Raj
Institutions (PRIs) on a continuousbasis.
The MoPR implements the Centrally Sponsored Scheme of revamped Rastriya Gram
Swaraj Abhiyan (RGSA) for capacity building and training of the elected representatives of
the Panchayati Raj Institutions (PRIs), Central Sector schemes of Incentivisation of
Panchayat (IoP) to provide incentives to the Panchayats in recognition of their good
developmental works at all levels and e-Panchayat Mission Mode Projects (eMMP) for
promotion of e-governance. These schemes are implemented with active participation,
involvement and collaboration with State/UTs in the country including in Tamil Nadu and its
Dharmapuri district. During the current financial year 2025-26, a total of 1156 number of
elected representatives andfunctionaries of the Gram Panchayats have been trainedunder the
RGSA scheme in the district of Dharmapuri, Tamil Nadu and all 251 Gram Panchayats have
finalised and uploaded their Gram Panchayat Development Plans on eGramSwaraj Portal in
the year2025-26.
1The details of Central funds allocated/released for the development of Panchayats in
Tamil Nadu including the grants under the Fifteenth Finance Commission (FFC) during the
last three yearsare asfollows:
(Rs. In crore)
FFC/Scheme 2022-23 2023-24 2024-25
Allocation Release Allocation Release Allocation Release
FFC# 2761.00 2761.00 2791.00 2791.00 2957.00 2957.00
RGSA& 104.69 25.42 180.60 0.00* 211.42 45.00
IoP@ 1.80 1.00 1.50
# Funds are not released to the districts directly. The State concerned distributes the funds in
accordancewith recommendations of the StateFinanceCommission.
& Fundsare not releasedto the districts directly. The Statesrelease fund tothe districts.
*No funds were released due to unspent balance and non-submission of requisite documents
bythe Stateincompliance with the guidelinesof the Department of Expenditure.
@ Funds are not allocated but released to the National Panchayat Awards winning
Panchayats.
(c) The Ministry compiles Panchayat Advancement Index (PAI) based on various pre-
determined performance parameters for monitoring their performance in attainment of the
localisation of Sustainable Development Goals (LSDGs) in the areas of health, education,
women & child development, water sufficiency, climate action & clean environment,
livelihood provision & poverty reduction, and promotion of good governance etc. at the
Panchayat level.
(d) In order to strengthen the financial autonomy and technical supports to Panchayats
including Gram Panchayats of backward districts to enable them to undertake local
development projects effectively, all Finance Commission grants are deposited directly into
the accounts of Panchayats by the States. These funds are spent by Panchayats from their
own accounts, without the involvement of the States, through the Public Financial
Management System(PFMS)system inaccordancewith the normsprescribed by the Finance
Commission in respect of tied and untied grants. In order to ensure end-to-end tracking of
funds—from receipt toexpenditure—andeffectively prevent anymisuse or misappropriation,
it hasbeenmade mandatory torecordall transactionson PFMSandeGramSwaraj portal.
On technical front, particularly for promotion of eGovernance in the Panchayats, under the
Digital India initiative, the MoPR have developed various digital platforms and applications.
The eGramSwaraj application has been designed to facilitate planning, accounting,
monitoring, and online payments at the Panchayat level. The integration of eGramSwaraj
with the PFMS enables real-time payments to vendors and service providers, ensuring
seamless fund flow and reducing delays. The eGramSwaraj application has been integrated
with the Government e-Marketplace (GeM) to bring transparency in Panchayat procurement.
This integration allows Panchayats to procure goods and services through GeM via the
eGramSwaraj platform. Further, applications developed by the Ministry like Meri Panchayat
have endeavoured to bring transparency in Panchayat Governance by making information on
planning, activities, and progress of works in Panchayat accessible to public. Panchayat
NIRNAYis anonline application which aimstobring transparency andbettermanagement in
conduct of Gram Sabhas by Panchayats. Further, the ‘AuditOnline’ application developed
under the e-Panchayat Mission Mode Project (MMP) facilitates online audits of Panchayat
accountsandsupports improvedfinancial management.
***
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