Parliament Question: Empowerment of Panchayati Raj Institutions

GOVERNMENT OF INDIA MINISTRY OF PANCHAYATI RAJ LOK SABHA UNSTARRED QUESTION NO– 1534 ANSWERED ON- 28.07.2026 EMPOWERMENT OF PANCHAYATI RAJ INSTITUTIONS

1534. SHRI SHYAMKUMAR DAULAT BARVE:

Will the Minister of PANCHAYATI RAJ be pleased to state:

(a) whether the Government has assessed the status of financial and administrative empowerment of Panchayati Raj Institutions in the country;

(b) whether it is a fact that many Gram Panchayats are facing difficulties in effectively implementing local development works due to inadequate financial resources, shortage of manpower and limited administrative powers;

(c) the details of funds released by the Central Government to Panchayati Raj Institutions along with the mechanism in place for monitoring the utilisation of such funds during the last five years, State/Union Territory-wise; and

(d) the steps taken by the Government to provide greater financial autonomy, enhance decision-making capacity at the grassroots level and make Gram Panchayats self-reliant? ANSWER THE MINISTER OF PANCHAYATI RAJ (SHRI RAJIV RANJAN SINGH ALIAS LALAN SINGH)

(a) Yes Sir. The Ministry of Panchayati Raj has released a report titled “Status of Devolution to Panchayats in States - An Indicative Evidence-Based Ranking, 2024” in February 2025 to assess the effectiveness of devolution and the role of local governments in strengthening grassroots democracy, including assessment of the status of financial and administrative empowerment of Panchayats Raj Institutions (PRIs). This report presents the Devolution Index, which provides the overall scores and ranks for all States/Union Territories (UTs) covered under Part-IX of the Constitution, based on six identified dimensions: Framework, Functions, Finances, Functionaries, Capacity Enhancement, and Accountability.

(b) Yes Sir, many Gram Panchayats are facing difficulties in effectively implementing local development works due to inadequate financial resources, shortage of manpower and limited administrative powers. “Panchayat”, being “Local Government”, is a State subject and part of State List of Seventh Schedule of the Constitution of India. Panchayats are set up and operate 1through the respective State Panchayati Raj Acts which may vary from State to State, subject to the provisions of the Constitution. Article 243G of the Constitution empowers the Legislature of a State to make provisions, by law, for the devolution of power and responsibilities upon Panchayat at the appropriate level, subject to such conditions as may be specified, with respect to the preparation of plans for economic development and social justice and implementation of schemes for economic development and social justice as may be entrusted to them including those in relation to matters listed in the Eleventh Schedule to the Constitution. The State legislatures are to consider the 29 subjects listed in the Eleventh Schedule for devolution of power and responsibilities to Panchayats. Accordingly, all matters relating to Panchayats, including, implementing local development works, manpower requirement, financial resources, administrative powers at the Panchayat level and enhancement of the financial and administrative autonomy of Panchayats, etc. fall within the purview of State Government.

(c) During the 15th Finance Commission (FC) award period (FY 2020-21 to FY 2025-26), including the interim period of FY 2020-21, a total of Rs. 2,82,632 Crores have been released against the total allocation of Rs. 2,97,555 Crores. The State-wise details of allocation & release of the funds under 15th FC is placed at Annexure I. Further, under the Revamped Rashtriya Gram Swaraj Abhiyan (RGSA) of the Ministry, a total of Rs. 3601.77 Crores have been released to the States/UT during the last five year from FY 2021-22. The details of funds released to the States/UTs under the Revamped RGSA scheme during the last five years is at Annexure-II.

As part of the Digital India initiative, MoPR has established an integrated digital governance ecosystem for Panchayats to promote transparency, accountability, and efficient financial management. This Ministry has launched ‘eGramSwaraj’ in 2020–21 as a unified digital platform which supports end-to-end planning, budgeting, accounting, monitoring, and online payments. Its integration with the Public Financial Management System (PFMS), Government e-Marketplace (GeM), and AuditOnline has enabled seamless fund flow, transparent procurement, payments and auditing, thereby strengthening governance and financial oversight at the grassroots. As a result, around 2,40,435 out of 2,64,998 i.e. 90.73% of PRIs have generated audit report in FY 2024-25. The tier-wise details of audit report generated in FY 2024- 25 is placed at Annexure-III.

(d) The Ministry has implemented the Centrally Sponsored Scheme of Rashtriya Gram Swaraj Abhiyan (RGSA) since the financial year 2022-23 in States/ UTs. The main objective of the scheme is to build the capacity of PRIs by creating a learning ecosystem, especially through training for the Elected Representatives (ERs), functionaries, and other stakeholders to develop their governance capabilities to function effectively, and also by supporting exposure visits, development of training modules and materials, etc. A total of 1,66,41,509 Elected Representatives were trained from FY 2022–23 to FY 2026–27 (as on 10.07.2026) under the scheme.

A major step has also been taken to build capacity and train elected representatives and functionaries of Panchayats through institutes of excellence such as Indian Institutes of Management (IIMs)/ Indian Institutes of Technology (IITs) under the Leadership/Management Development Program (MDP). Under this MDP training, 3,490 people have been trained so far as on 10.07.2026.

2The Ministry has also implemented the e-Panchayat Mission Mode Project (MMP) under RGSA scheme, which has significantly enhanced transparency, efficiency, and governance at the grassroots level. The eGramSwaraj application, developed as part of the e-Panchayat MMP, has facilitated digital planning, accounting, monitoring, and online payments at the Panchayat level.

The integration of eGramSwaraj with the Public Financial Management System (PFMS) enables real-time payments to vendors and service providers, ensuring seamless fund flow and reducing delays. During Financial Year 2025–26, 2,55,254 Gram Panchayats across the country, uploaded their Gram Panchayat Development Plans (GPDPs).

Further, ‘AuditOnline’, an application has been developed for online audits of Panchayat accounts and their financial management. This application has been launched in April 2020 for transparent auditing of Central Finance Commission funds utilisation to strengthen financial management of Panchayats.

The Ministry, has also undertaken a significant step to digitise the collection of Own Sources of Revenue (OSRs) of the Panchayats by developing the “SAMARTH Panchayat portal”, a dedicated digital platform that facilitates the generation of tax & non-tax demands and collection thereof, maintenance of tax registers, and online tracking of revenue. This digital empowerment is designed to bring transparency, efficiency, and scalability to local financial administration.

In 2025, the Ministry has launched the Atma Nirbhar Panchayat Special Award (ANPSA) to promote Atmanirbharta through the augmentation of OSR by Panchayats.

Moreover, to provide greater financial autonomy, enhance decision-making capacity at the grassroots level, and make Gram Panchayats self-reliant, the Ministry of Panchayati Raj, in collaboration with IIM Ahmedabad, has developed a training module on OSR to strengthen the financial self-reliance of Gram Panchayats. The module helps elected representatives and Panchayat functionaries understand how OSR is generated through tax and non-tax sources.

Under the Specialised Module of OSR, 2,75,893 have been trained so far as on 10.07.2026.

Further, the Ministry has developed applications such as Meri Panchayat, which have endeavoured to bring transparency in Panchayat Governance by making information on planning, activities and progress of works in Panchayat accessible to public. Similarly, Panchayat NIRNAY is an online application that aims at bringing transparency and better management in conduct of Gram Sabhas by Panchayats.

*** 3Annexure-I Annexure referred to in reply to part(c) of Lok Sabha Unstarred Question No.1534 answered on 28.07.2026 regarding “Empowerment of Panchayati Raj Institutions”. th st State wise allocation and release under 15 Finance Commission as on 31 March 2026 (Rs.in Crore) 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 Total Sl.

States No.

4 oitacollA n esaeleR oitacollA n esaeleR oitacollA n esaeleR oitacollA n esaeleR oitacollA n esaeleR oitacollA n esaeleR oitacollA n esaeleR 1 AndhraPradesh 2,625 2,625 1,939 1,918 2,010 1,977 2,031 1,997 2,152 2,110 2,099 2,054 12,856 12,681 2 ArunachalPrades 231 231 170 170 177 89 179 - 189 - 185 - 1,131 490 h 3 Assam 1,604 1,604 1,186 1,186 1,228 1,228 1,241 1,241 1,315 1,315 1,283 1,283 7,857 7,857 4 Bihar 5,018 5,018 3,709 3,709 3,842 3,842 3,884 3,855 4,114 4,109 4,012 4,012 24,579 24,545 5 Chhattisgarh 1,454 1,454 1,075 1,075 1,114 1,114 1,125 1,125 1,192 1,185 1,163 1,162 7,123 7,115 6 Goa 75 75 55 55 57 48 58 55 62 31 61 - 368 264 7 Gujarat 3,195 3,195 2,362 2,362 2,446 2,446 2,473 2,473 2,619 2,619 2,555 2,553 15,650 15,648 8 Haryana 1,264 1,264 935 935 968 967 979 954 1,036 1,013 1,011 988 6,193 6,121 9 HimachalPrades 429 429 317 317 329 329 332 332 352 352 343 342 2,102 2,100 h 10 Jharkhand 1,689 1,689 1,249 1,249 1,293 1,293 1,307 1,307 1,385 1,385 1,351 674 8,274 7,597 11 Karnataka 3,217 3,217 2,377 2,376 2,463 2,094 2,490 2,087 2,637 2,133 2,572 - 15,756 11,906 12 Kerala 1,628 1,628 1,203 1,203 1,246 1,246 1,260 1,260 1,334 1,334 1,301 1,301 7,972 7,972 13 MadhyaPradesh 3,984 3,984 2,944 2,944 3,050 3,050 3,083 3,081 3,265 3,263 3,185 3,150 19,511 19,472 14 Maharashtra 5,827 5,827 4,307 4,267 4,461 4,073 4,510 4,093 4,776 3,918 4,659 3,942 28,540 26,119 15 Manipur 177 177 131 66 135 - 137 - 145 - 142 - 867 243 16 Meghalaya 182 182 135 95 140 - 141 - 149 - 146 - 893 277 17 Mizoram 93 93 69 69 71 71 72 72 76 76 74 74 455 455 18 Nagaland 125 125 92 92 96 48 97 - 102 - 99 - 611 265 19 Odisha 2,258 2,258 1,669 1,669 1,728 1,728 1,747 1,747 1,851 1,851 1,805 1,801 11,058 11,054 20 Punjab 1,388 1,388 1,026 1,026 1,062 1,062 1,074 1,058 1,138 1,128 1,110 1,109 6,798 6,772 21 Rajasthan 3,862 3,862 2,854 2,854 2,957 2,955 2,989 2,848 3,166 3,166 3,087 1,568 18,915 17,25322 Sikkim 42 42 31 31 33 33 33 33 35 33 33 33 207 205 23 TamilNadu 3,607 3,607 2,666 2,666 2,761 2,761 2,791 2,791 2,957 2,957 2,884 638 17,666 15,420 24 Telangana 1,847 1,847 1,365 1,365 1,415 1,415 1,430 1,430 1,514 1,281 1,477 620 9,048 7,957 25 Tripura 191 191 141 141 147 147 148 148 157 157 153 153 937 937 26 UttarPradesh 9,752 9,752 7,208 7,208 7,466 7,466 7,547 7,547 7,994 7,994 7,797 7,797 47,764 47,764 27 Uttarakhand 574 574 425 419 440 439 445 444 471 470 458 456 2,813 2,802 28 WestBengal 4,412 4,412 3,261 3,261 3,378 3,378 3,415 3,415 3,617 3,472 3,528 3,404 21,611 21,342 Total 60,750 60,750 44,901 44,726 46,513 45,299 47,018 45,392 49,800 47,350 48,573 39,115 2,97,555 2,82,632 % (percentage) 100 100 97 97 95 81 95 5Annexure-II Annexure referred to in reply to part (c) of Lok Sabha Unstarred Question No. 1534 answered on

28.07.2026 regarding “Empowerment of Panchayati Raj Institutions”.

State/UT-wise details of funds released under Revamped RGSA during the last five years (Rs.in crore) Sl State 2021-22 2022-23 2023-24 2024-25 2025-26 .

N o 1 Andaman & Nicobar Islands 0.00 0.00 0.79 2.12 1.00 2 Andhra Pradesh 38.54 0.00 0.00 2.52 35.00 3 Arunachal Pradesh 30.07 108.69 72.09 70.00 57.00 4 Assam 44.04 55.29 77.70 60.00 64.00 5 Bihar 63.77 33.37 25.00 0.00 26.00 6 Chhattisgarh 7.93 0.00 17.57 16.50 29.00 7 Dadra& Nagar Haveli and Daman 0.00 1.14 1.00 1.00 1.25 &Diu 8 Goa 0.59 0.00 0.89 1.35 1.00 9 Gujarat 0.00 0.00 0.00 0.00 8.00 10 Haryana 0.00 0.00 0.00 5.00 17.91 11 Himachal Pradesh 32.42 60.65 19.31 27.21 14.00 12 Jammu & Kashmir 40.00 40.00 65.00 65.00 57.00 13 Jharkhand 7.74 0.00 31.00 0.00 15.20 14 Karnataka 29.15 36.00 20.00 16.25 11.03 15 Kerala 12.00 30.40 10.00 10.00 18.00 16 Lakshadweep 0.00 0.00 0.00 0.00 0.00 17 Ladakh 1.08 0.00 1.00 0.00 0.72 18 MadhyaPradesh 47.11 28.00 32.17 40.00 49.95 19 Maharashtra 73.34 37.84 116.12 80.00 54.49 20 Manipur 2.98 8.63 9.56 0.00 1.48 21 Meghalaya 0.00 0.00 6.00 8.00 5.02 22 Mizoram 5.56 14.27 10.00 12.00 16.50 23 Nagaland 4.58 0.00 10.00 10.00 10.70 24 Odisha 1.33 11.40 27.33 20.00 62.24 25 Puducherry 0.00 0.00 0.00 0.00 0.00 26 Punjab 10.78 34.25 10.00 5.00 30.30 27 Rajasthan 17.27 0.00 21.72 15.00 13.00 28 Sikkim 1.19 6.01 6.00 7.00 3.21 29 TamilNadu 39.89 25.42 0.00 45.00 20.00 30 Telangana 0.00 0.00 20.00 0.00 3.00 31 Tripura 4.67 9.80 7.43 10.00 29.99 632 UttarPradesh 83.08 85.05 84.13 38.77 28.05 33 Uttarakhand 0.00 42.48 64.67 50.00 44.09 34 WestBengal 15.14 4.28 33.69 52.68 40.00 Sub-Total 614.25 672.97 800.17 670.40 768.13 Others Implementing Agencies 3.75 10.01 14.69 23.77 23.63 Grand Total 618.00 682.98 814.86 694.17 791.76 ForFY2025–26,the releases comprise funds through both SNA till 30th June2025 and SNA-SPARSH since 1st July 2025.

7Annexure-III Annexure referred to in reply to part (c) of Lok Sabha Unstarred Question No. 1534 answered on 28.07.2026 regarding “Empowerment of Panchayati Raj Institutions”.

Tier-wise details of Audit Report generated in Financial Year 2024-25 Total No. of No. of No. of No. of Zilla Block Gram Total Pancha Total Total Total Pancha Pancha Pancha No. of yati Raj No of No. of No of S.N State yats yats yats Pancha Instituti Zilla Block Gram o. Name with with with yati Raj ons Pancha Pancha Pancha Generat Generat Generat Instituti With yat yat yats ed ed ed ons Generat Report Report Report ed Report Andhra 1 13 13 660 654 13,328 13,201 14,001 13,868 Pradesh Arunach 2 al 27 19 - - 2,108 1,915 2,135 1,934 Pradesh 3 Assam 30 23 197 154 2,770 2,073 2,997 2,250 4 Bihar 38 4 534 242 8,053 5,044 8,625 5,290 Chhattis 5 33 23 146 138 11,713 11,621 11,892 11,782 garh 6 Goa 2 - - - 191 102 193 102 7 Gujarat 33 33 248 248 14,687 14,591 14,968 14,872 8 Haryana 22 22 143 136 6,230 6,188 6,395 6,346 Himacha 9 12 12 92 81 3,615 3,610 3,719 3,703 l Pradesh Jharkhan 10 24 24 264 259 4,345 4,314 4,633 4,597 d Karnatak 11 31 - 238 - 5,952 5,949 6,221 5,949 a 12 Kerala 14 - 152 1 941 828 1,107 829 Madhya 13 52 37 313 223 23,011 20,223 23,376 20,483 Pradesh Maharas 14 34 - 351 18 27,953 26,817 28,338 26,835 htra 15 Manipur 12 - - - 3,811 - 3,823 - Meghala 16 3 - - - - - 3 - ya 17 Mizoram - - - - 843 - 843 - Nagalan 18 - - - - 1,330 - 1,330 - d 819 Odisha 30 30 314 314 6,794 6,787 7,138 7,131 20 Punjab 23 22 154 152 13,237 13,221 13,414 13,395 Rajastha 21 33 33 361 352 11,230 11,079 11,624 11,464 n 22 Sikkim 6 6 - - 199 199 205 205 Tamil 23 36 36 388 388 12,525 12,518 12,949 12,942 Nadu Telangan 24 32 31 572 534 12,994 12,577 13,598 13,142 a 25 Tripura 9 9 75 75 1,194 1,193 1,278 1,277 Uttarakh 26 13 - 95 - 7,787 - 7,895 - and Uttar 27 75 75 826 825 57,691 57,651 58,592 58,551 Pradesh West 28 22 21 345 287 3,339 3,180 3,706 3,488 Bengal Total 659 473 6,468 5,081 2,64,725 2,34,881 2,64,998 2,40,435

Source: Report generated through auditonline.gov.in .

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