**Executive Summary**
The document presents the Minister of Panchayati Raj's response to questions regarding funds allocated, released, and utilized by Kerala under the 15th Finance Commission (XV FC) for local self-governments, capacity-building and digital governance programs implemented for Panchayati Raj Institutions (PRIs), and steps taken to strengthen the fiscal autonomy of PRIs. The response includes data on fund allocation and release for fiscal years 2022-23, 2023-24, and 2024-25, as well as details on the Revamped Rashtriya Gram Swaraj Abhiyan (RGSA) and e-Panchayat Mission Mode Project (MMP). The provided data is valid until February 3, 2026.
**Key Points / Main Content**
* **Fund Allocation and Release (XV FC Grants):**
* Details of funds allocated and released to Kerala under the 15th Finance Commission for Rural Local Bodies over the last three years (in Crore Rupees):
* 2022-23: Allocation - 1246.00, Release - 1260.00
* 2023-24: Allocation - 1246.00, Release - 1260.00
* 2024-25: Allocation - 1334.00, Release - 1334.00
* The XV FC Grants consist of two components: Untied (40%) and Tied (60%).
* Untied grants can be used for location-specific needs under the 29 subjects of the Eleventh Schedule of the Constitution, excluding salary or establishment expenditure.
* Tied grants are for basic services: (a) sanitation and maintenance of ODF status, including waste management and (b) supply of drinking water, rainwater harvesting, and water recycling.
* **Revamped Rashtriya Gram Swaraj Abhiyan (RGSA):**
* The Ministry of Panchayati Raj is implementing RGSA to support capacity building of PRIs by training Elected Representatives (ERs) and other stakeholders.
* Support is provided for capacity building, training, and strengthening of Panchayat infrastructure.
* Online training facilities are provided under RGSA.
* Rs 2.65 Crore has been approved to Kerala State to provide training to 7500 ERs, Panchayat Functionaries and other Stakeholders under Specialized Training Component in the Annual Action Plan for FY 2025-26.
* Status of fund released under RGSA to Kerala and utilization in the last three years (in Crore Rupees):
* 2022-23: Fund Released - 30.40, Fund Utilized - 23.13
* 2023-24: Fund Released - 10.00, Fund Utilized - 37.04
* 2024-25: Fund Released - 10.00, Fund Utilized - 32.65
* **e-Panchayat Mission Mode Project (MMP):**
* The Ministry implements the e-Panchayat MMP under RGSA to enhance transparency, efficiency, and governance.
* The eGramSwaraj application facilitates digital planning, accounting, monitoring, and online payments.
* In FY 2024-25, over 2.55 lakh Gram Panchayats across the country, including Kerala, uploaded their Gram Panchayat Development Plans (GPDPs).
* **Strengthening Fiscal Autonomy:**
* The Government aims to enhance revenue-generating capabilities of Panchayats.
* The Ministry of Panchayati Raj is actively advocating for states to fully implement the 73rd Constitutional Amendment Act, 1992.
* The Ministry has developed specialized modules on the generation of Own Source Revenue (OSR) by the Panchayats to provide training to State Level Master Trainers (SLMTs).
* The Ministry launched the Atma Nirbhar Panchayat Special Award (ANPSA) in 2025 to promote Atmanirbharta through OSR augmentation.
* The Ministry of Panchayati Raj has developed the "SAMARTH Panchayat portal" to digitise OSR collection.
* The National Institute of Public Finance and Policy (NIPFP) conducted a study on “Preparation of a Viable Financial Model for Generation of Own Sources of Revenue (OSR),” and the Study Report was published in March 2025.
**Impact Analysis**
**Kerala Panchayati Raj Institutions (PRIs)**
* **Impact:** PRIs in Kerala are impacted by fund allocations, capacity building initiatives, and the promotion of fiscal autonomy.
* **Action Required:** PRIs are required to effectively utilize allocated funds, participate in capacity-building programs, and implement digital governance measures to enhance revenue generation and transparency.
**State Government of Kerala**
* **Impact:** The State government is responsible for disbursing and ensuring proper utilization of Central Finance Commission grants by PRIs.
* **Action Required:** The State government must comply with the guidelines issued by the Department of Expenditure, Ministry of Finance, and advisories from the Ministry of Panchayati Raj to ensure transparency and accountability in fund management.
**Elected Representatives (ERs), Panchayat Functionaries, and Other Stakeholders:**
* **Impact:** They are the target beneficiaries of the RGSA capacity-building programs, aimed at improving their governance capabilities and leadership roles.
* **Action Required:** They need to actively participate in training programs and implement the knowledge and skills gained to improve the functioning of Gram Panchayats.
Key Entities Referenced
15th Finance Commission: Deals with the allocation of funds to local self-governments including Panchayati Raj Institutions
Revamped Rashtriya Gram Swaraj Abhiyan (RGSA): A Centrally Sponsored Scheme to support capacity building of Panchayati Raj institutions.
e-Panchayat Mission Mode Project (MMP): Project implemented under RGSA to enhance transparency, efficiency, and governance at the grassroots level through digital solutions like eGramSwaraj.
Ministry of Panchayati Raj: The central ministry responsible for implementing policies and schemes related to Panchayati Raj Institutions.
Kerala: The state for which funds allocation and capacity building of Panchayati Raj Institutions are being discussed.
GOVERNMENT OF INDIA
MINISTRYOF PANCHAYATIRAJ
LOK SABHA
UNSTARREDQUESTION NO. 1614
ANSWEREDON 10.02.2026
FUNDSALLOCATIONANDCAPACITYBUILDINGOFPANCHAYATIRAJ
INSTITUTIONSINKERALA
1614.SHRIKODIKUNNILSURESH:
Will the Minister of PANCHAYATIRAJ be pleased to state:
(a) the details of funds allocated, released and utilised by Kerala under the 15th Finance
Commission for localself-governments during the last three years, alongwith sector-wise;
(b) whether any special capacity-building, training or digital governance programmes have
been implemented for Panchayati Raj Institutions in Kerala, and if so, the details and
outcomesthereof; and
(c) the steps taken or proposed to be taken by the Government to strengthen the fiscal
autonomyof PanchayatiRaj Institutions, including measures toenhance own-source revenue,
timelyfund devolutionand reductionof conditionalitiesinfund utilisation?
ANSWER
THE MINISTER OF PANCHAYATI RAJ
(SHRIRAJIVRANJAN SINGH ALIAS LALAN SINGH)
(a): The details of funds allocated, released to the State of Kerala under the 15thFinance
Commission for Rural LocalBodiesduring the last three yearsare asunder:
(Rs. inCrore)
Financial Year Allocation Release
2022-23 1246.00 1246.00
2023-24 1260.00 1260.00
2024-25 1334.00 1334.00
The 15thFinance Commission (XV FC) Grants have two components— Untied and
Tied. The untied grant,40% of the total grant,underthe 15thFinance Commission canbe used
by Rural Local Bodies (RLBs) for location-specific felt needs under 29 subjects enshrined in
the Eleventh Schedule of the Constitution, except for salary or other establishment
expenditure.
The tied grants, 60% of totalgrants, canbe used for the basic services of (a)sanitation
and maintenance of ODF status, which includes management and treatment of household
waste, human excreta and faecal sludge management and (b) supply of drinking water,
rainwater harvesting and water recycling. If any local body has fully saturated the needs of
one category, it canutilise the funds for the other category.
1As per data available on e-GramSwaraj Portal as on 03.02.2026, the sector-wise
expenditure reported through the said Portal by the State of Kerala for the period from FY
2022-23 to2024-25 isattachedat Annexure.
(b): The Ministry of Panchayati Raj is implementing a Centrally Sponsored Scheme of
Revamped Rashtriya Gram Swaraj Abhiyan (RGSA) w.e.f. financial year 2022-23 with the
main objective to support capacity building of Panchayati Raj institutions (PRIs) through
imparting training to Elected Representatives (ERs) and other stakeholders to develop their
governance capabilities for leadership roles to enable the Gram Panchayats to function
effectively,across all States/UTsincludingKerala.
Under the scheme, support is provided for capacity building and training of Elected
Representatives, Panchayat Functionaries and other stakeholders, along with creation and
strengthening of Panchayat infrastructure such as Gram Panchayat Bhawans and computers,
including co-location of Common Service Centres (CSCs) in Gram Panchayat Bhawans on a
limited scale. However, the major component of RGSA is capacity building and training of
electedrepresentatives, functionariesandofficials of PRIsonthe areaslike,localgovernance,
financial planning, sustainable development goals (SDGs), e-governance tools, service
delivery, Panchayat level planning with special focus on integration ofother government
programme based onlocalneeds.
In addition,onlinetrainingfacilitieshave beenprovidedunderRGSAtoenable States,
including Kerala, to conduct training programmes through video conferencing, thereby
reducing logistical constraints and ensuring wider participation. E-enablement of Panchayats
is a core component of RGSA which helps PRIs to adopt digital systems for planning,
monitoringanddelivering services tothe citizens.
Further, various specialized modules have been developed and initiatives undertaken
by the Ministry of Panchayati Raj like Module for Women Elected Representatives, Module
on Generation of Own Source Revenue (OSR) by Gram Panchayat and Model Youth Gram
Sabha initiative which has been replicated by Kerala Local Self Governance Department into
theircapacity building trainingprogramme.In the Annual Action Plan for FY2025-26, under
Specialized Training Component,Rs 2.65 Crore hasbeenapproved toKerala State toprovide
training to 7500 ERs, Panchayat Functionaries and other Stakeholders. The status of fund
releasedunderRGSAtoKerala andutilizationinthe last three yearsisgiven below: -
FinancialYear Fundreleased Fundutilized*
(Rs.incrore) (Rs.incrore)
2022-23 30.40 23.13
2023-24 10.00 37.04
2024-25 10.00 32.65
* Includesunspent balance of previousyearsandStateshare.
The Ministry is implementing the e-Panchayat Mission Mode Project (MMP)
under RGSA, 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. In FY 2024-25, over 2.55 lakh Gram Panchayats
across the country, including Kerala, uploaded their Gram Panchayat Development Plans
2(GPDPs), and over ₹61,000 crore was transferred to vendors through the eGramSwaraj-
PFMSinterface.
(c): The Government has taken significant steps to enhance the revenue-generating
capabilities of Panchayats, enabling them to become self-sufficient and less dependent on
external funding. The 73rdConstitutional Amendment Act, 1992, mandates the devolution of
powers and responsibilities to Panchayats. The Ministry of Panchayati Raj has been actively
advocating for states to fully implement these provisions, emphasising the need for states to
empower Panchayatswith adequate functions, finances, andfunctionaries.
In collaboration with the Indian Institute of Management-Ahmedabad (IIM-A),
Ministryhasdevelopedspecialised modulesonthe generationof OwnSourceRevenue (OSR)
by the Panchayats to provide training to State Level Master Trainers (SLMTs) of 31
States/UTs byIIMA.
In 2025, the Ministry of Panchayati Raj has launched the Atma Nirbhar Panchayat
Special Award(ANPSA) topromote Atmanirbharta through the augmentation of Own Source
Revenue (OSR)byPanchayats.
The Ministry of Panchayati Raj (MoPR) has also undertaken a significant step to
digitise the OSR collection 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
financialadministration.
TheMinistryhadentrustedtheNationalInstitute ofPublicFinanceandPolicy(NIPFP)
with a study on “Preparation of a Viable Financial Model for Generation of Own Sources of
Revenue (OSR),” andthe Study Report was published inMarch 2025.
Panchayat, being “Local Self Government”, is a State subject. Thus the primary
responsibility of strengthening grassroots level governance lies with States. Further, the
15thFinance Commission grantsare recommended andreleased to the States on fulfillment of
the mandatory eligibility conditionsaslaid down inthe Operational Guidelineson the subject
issued by the Department of Expenditure, Ministry of Finance. Advisories to the States are
issued by this Ministry from time to time to ensure transparency and accountability in the
disbursal andutilisation of Central Finance Commission grantsbyPanchayati Raj Institutions
inthe States.
*****
3Annexure
(Annexure referredtoinreplytopart (a)of the LokSabhaUnstarred Question No.1614
answered on10.02.2026)
Details of sector-wise expenditure reported through eGramSwaraj Portal by the State of
Kerala for the periodfrom FY2022-23 to2024-25 (ason03.02.2026)
(Rs. incrore)
Sl. No. FocusArea/FY 2022-23 2023-2024 2024-2025
1 Administrative & Technical 6.52 4.83 6.64
Support
2 Adult and non-formal 0.38 0.13 0.01
education
3 Agriculture 6.06 2.55 2.27
4 Animal husbandry 2.78 0.25 0.39
5 Cultural activities 4.24 2.26 0.71
6 Drinking water 238.30 184.90 255.14
7 Education 28.78 21.83 24.98
8 Family welfare 1.62 0.15 0.07
9 Fisheries 0.39 0.17 0.04
10 Fueland fodder 0.05 0.00 0.00
11 GPOfficeInfrastructure 28.91 12.25 6.43
12 Health 14.63 28.12 30.19
13 Khadi 0.01 0.00 0.00
14 Landimprovement 4.41 5.79 12.08
15 Libraries 2.51 1.16 1.20
16 Maintenance of community 10.59 32.58 76.33
system
17 Markets andfairs 2.28 1.46 0.04
18 Minor forest produce 0.14 0.00 0.00
19 Non-conventional energy 2.55 2.87 10.79
sources
20 Poverty allevation 13.81 3.55 3.02
programme
21 Public distribution system 1.48 0.55 3.71
22 Roads 162.01 140.89 184.30
23 Rural electrification 63.90 37.98 26.53
24 Rural housing 25.13 18.21 31.93
25 Sanitation 277.77 232.07 318.62
26 Small-scale industries 1.51 0.22 0.00
27 Social welfare 13.92 5.51 5.56
28 Technical training and 0.56 1.31 2.95
vocational education
29 Tribal Welfare 0.07 0.00 0.00
30 WaterConservation 5.12 4.57 3.16
31 Welfare of the weaker 2.00 0.84 0.70
sections
32 Women and child 17.91 17.82 32.68
development
GrandTotal 940.34 764.82 1040.47
4