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GOVERNMENT OF INDIA
MINISTRYOF PANCHAYATIRAJ
LOK SABHA
UNSTARREDQUESTION NO. 2828
ANSWEREDON- 10.03.2026
FUNDS FOR PANCHAYATS
†2828.SHRIBHOJRAJ NAG:
SMT.MALARAJYALAXMI SHAH:
SHRIVISHNU DAYALRAM:
SHRIKRISHNAPRASADTENNETI:
SHRIVIJAYBAGHEL:
SHRIPRAVEENPATEL:
SHRISHANKAR LALWANI:
SHRIBIBHU PRASADTARAI:
Will the Minister of PANCHAYATI RAJ be pleasedtostate:
(a) the assessment of the extent of devolution of Funds, Functions and Functionaries
(3Fs)toPanchayatsasof January 2026,State/UT-wise;
(b) whether the Ministry has instituted any mechanism for periodic review or
monitoringof actualdevolution;
(c) if so, the details thereof, including transfer of untied funds and posting of
functionariesat the Panchayat level;
(d) the measures taken by the Ministry to encourage States to enhance the financial
andadministrative autonomyof Panchayats;
(e) whether any performance-based incentive, ranking or grant-linked mechanism
exists toreward Statesdemonstrating higher levelsof effectivedevolution; and
(f) if so, the detailsthereof?
ANSWER
THE MINISTER OF PANCHAYATI RAJ
(SHRIRAJIVRANJAN SINGH)
(a) to (d) “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 through
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
1Constitution. 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, assessment of the extent of devolution of Funds, Functions
and Functionaries to Panchayats, periodic review or monitoring of actual devolution, transfer
of untied funds, posting of functionaries at the Panchayat level and enhancement of the
financial and administrative autonomy of Panchayats, fall within the purview of State
Government.
However, the Ministry of Panchayati Raj reviews performance of Panchayats, from
time to time, through studies, review meetings, field visits, video conferencing, Information
Technology applicationsetc.
The Ministry 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. This report presents the Devolution Index, which provides the overall scores and
ranks for all States/Union Territories covered under Part-IX of the Constitution, based on six
identified dimensions: Framework, Functions, Finances, Functionaries, Capacity
Enhancement, and Accountability. This report reveals that the extent of devolution has
increased from 39.9% to 43.9% between the period 2013-14 to 2021-22. Ranking of
States/UTs inDevolutionIndexandSub-indicesisattached asAnnexure-I.
The Ministry has implemented a Centrally Sponsored Scheme, namely the
Revamped Rashtriya Gram Swaraj Abhiyan (RGSA), w.e.f. financial year 2022-23, with the
objective of supporting Panchayati Raj institutions by imparting trainings to Elected
Representativesand otherstakeholderstodevelop leadership abilities, therebyenablingGram
Panchayats to function effectively across all States/UTs. Under the scheme, capacity building
support is provided to elected representatives, functionaries, and other stakeholders of
Panchayats under different categories, viz. basic orientation and refresher programmes,
thematic interventions, specialized trainings and Panchayat Development Plan-related
programmes, etc. The scheme also supports exposure visits to facilitate experiential learning
and replication of best practices for strengthening Panchayat governance, as well as
developmentof training modulesandmaterialsetc.
Further, to enhance skills and knowledge, a major step has also been taken to build
capacity and train elected representatives and functionaries of Panchayats through Institutes
of excellence such as IIMs/IITs under the Leadership/Management Development Program
(MDP).
The Ministry of Panchayati Raj, in collaboration with IIM Ahmedabad, has also
developed a training module on Own Source Revenue (OSR) to strengthen the financial self-
reliance of Gram Panchayats. The module helps elected representatives and Panchayat
functionariesunderstand how OSRisgenerated through taxandnon-taxsources.
Additionally, the Ministry has launched a Specialized Training Module for the
capacity building of Women Elected Representatives of Panchayati Raj Institutions. The
focus of this training module is to build the capacity of Women Elected Representatives
across different aspects of rural governance and enhance their knowledge and practical skills
for the effective discharge of roles and responsibilities as elected representatives, thereby
2promotingwomen-ledgovernance. .
(e) & (f) No, Sir. However, the 16th Finance Commission (Financial Year 2026-31) has
earmarked Rs. 87,048 Crores as Performance Grants. These Performance Grants have been
divided in two components– (i) Local Body Performance Grant, which shall be released
depending on the quantum of Own Source Revenue generated and enhanced by the Rural
Local Bodies and (ii) State Performance Grant, which shall be contingent upon the quantum
of fund transferring bythe State from itsown resources.
***
3ANNEXURE-I
Statement referred to in reply to part (a) to (d) of Lok Sabha Unstarred Question No. 2828 for answer on 10.03.2026
Rankingof States/UTs inDevolution IndexandSub-indices
Ran PDI Framework Functions Finances Functionaries Capacity Building Accountability
k State Scor State Scor State Scor State Scor State Scor State Scor State Score
e e e e e e
GeneralCategory States
1 Karnataka 72.23 Kerala 83.56 TamilNadu 60.2 Karnataka 70.6 Gujarat 90.94 Telangana 86.19Karnataka 81.33
4 5
2 Kerala 70.59 Maharashtra 74.74 Karnataka 57.6 Kerala 62.8 TamilNadu 84.25 TamilNadu 84.29Kerala 81.18
2 9
3 TamilNadu 68.38 Karnataka 74.43 Odisha 57.4 TamilNadu 55.7 Kerala 82.99 Gujarat 83.96Maharashtra 80.36
6 8
4 Maharashtra 61.44 Haryana 73.3 Rajasthan 56.1 Rajasthan 54.5 Karnataka 80.11 Goa 77.7Uttar Pradesh 76.07
3 6
5 Uttar Pradesh 60.07 Madhya 70 Kerala 53.8 Odisha 53.5 Chhattisgarh 78.33 Andhra 76.69TamilNadu 71
Pradesh 6 7 Pradesh
6 Gujarat 58.26 Odisha 69.2 Uttar Pradesh 46.8 West Bengal 52.9 Bihar 75.13 Uttar Pradesh 74.44Andhra 60.49
9 6 Pradesh
7 Rajasthan 56.67 Rajasthan 68.54 Maharashtra 46.5 Uttar Pradesh 51.7 Maharashtra 73.63 Maharashtra 73.35Telangana 60.43
2 6
8 West Bengal 56.52 Chhattisgarh 68.51 Chhattisgarh 42.3 Chhattisgarh 51.4 Andhra 68.78 Karnataka 71.59Chhattisgarh 58.17
9 5 Pradesh
9 Chhattisgarh 56.26 TamilNadu 66.83 Gujarat 41.2 Telangana 46.8 West Bengal 67.76 Kerala 71.11West Bengal 57.87
3 6
10 Telangana 55.1 West Bengal 62.3 Madhya 39.4 Bihar 43.8 Rajasthan 64.03 West Bengal 70.63Odisha 51.92
Pradesh 7 6
11 Andhra Pradesh 54.43 Gujarat 61.65 Telangana 38.7 Andhra 43.1 Uttar Pradesh 63.13 Madhya 70Bihar 51.64
7 Pradesh 9 Pradesh
412 Madhya Pradesh 50.94 Andhra Pradesh 60.08 West Bengal 33.0 Maharashtra 42.9 Madhya 62.22 Rajasthan 61.43Gujarat 47.9
7 6 Pradesh
13 Odisha 50.03 Uttar Pradesh 54.64 Punjab 31.9 Madhya 42.3 Telangana 58.01 Bihar 55.27Haryana 41.93
7 Pradesh 4
14 Bihar 48.24 Goa 52.88 Andhra 30.5 Gujarat 41.6 Goa 46.31 Chhattisgarh 47.61Rajasthan 41.43
Pradesh 3
15 Haryana 39.33 Bihar 49.76 Jharkhand 27.5 Haryana 40.3 Haryana 38.48 Odisha 43.43Madhya 36.55
6 8 Pradesh
16 Goa 37.71 Punjab 47.26 Bihar 18.6 Punjab 36.3 Jharkhand 27.83 Haryana 35.35Goa 31.75
9 6
17 Punjab 29.34 Telangana 45.35 Haryana 16.8 Jharkhand 30.0 Odisha 27.42 Punjab 26.34Punjab 24.87
2 5
18 Jharkhand 27.73 Jharkhand 42.3 Goa 6.63 Goa 26.8 Punjab 8.2 Jharkhand 24.72Jharkhand 16.47
8
Northeastern/ HillyArea States
1 Tripura 57.58 Uttarakhand 70.95 Sikkim 42.5 Tripura 59.1 Himachal 70.06 Himachal 83.68Tripura 70.69
9 6 Pradesh Pradesh
2 Himachal 53.17 Tripura 66.5 Assam 28.6 Himachal 48.4 Assam 65.12 Tripura 76.82Assam 57.14
Pradesh 6 Pradesh 1
3 Uttarakhand 49.11 Sikkim 65.27 Himachal 23.0 Uttarakhand 47.11 Uttarakhand 60.49 Assam 71.96Uttarakhand 52.72
Pradesh 1
4 Assam 49.06 Himachal 62.22 Tripura 21.5 Sikkim 43.5 Tripura 52.22 Uttarakhand 56.02Himachal 39.41
Pradesh Pradesh
5 Sikkim 43.81 Assam 54.04 Uttarakhand 16.6 Assam 34.0 Sikkim 31.42 Sikkim 53.23Sikkim 34.94
8 6
6 Arunachal 17.96 Arunachal 41.5 Arunachal 12.7 Manipur# 13.1 Manipur# 21.4 Arunachal 37.4Manipur# 28.75
Pradesh# Pradesh# Pradesh# 7 Pradesh#
7 Manipur# 17.13 Manipur# 34.05 Manipur# 11.23 Arunachal 6.83 Arunachal 5.74 Manipur# 3.75Arunachal 22.56
Pradesh# Pradesh# Pradesh#
UnionTerritories
51 Jammu and 27.85 Andaman & 55.21 Jammu and 11.88 Puducherry 16.1 Lakshadweep 39.53 Jammu and 55.08Andaman & 45.73
Kashmir Nicobar Islands Kashmir 6 # Kashmir Nicobar
Islands
2 Andaman & 27.15 Lakshadweep# 31.42 Ladakh 11.08 Jammu and 13.2 Jammu and 36.97 Andaman & 54.82Jammu and 39.76
Nicobar Islands Kashmir 9 Kashmir Nicobar Kashmir
Islands
3 Lakshadweep# 18.32 Jammu and 23.07 Lakshadweep 10.3 Andaman & 9.09 Dadra & 31.69 Ladakh 29.32Puducherry 29.33
Kashmir # 6 Nicobar Nagar Haveli
Islands andDaman&
Diu#
4 Ladakh 16.18 Ladakh 22.21 Puducherry 4.63 Dadra & 5.45 Ladakh 25.25 Lakshadweep 15.18Lakshadweep 28.13
Nagar Haveli # #
and Daman &
Diu#
5 Puducherry 16.16 Dadra & Nagar 22.06 Andaman & 4.5 Lakshadweep# 3.99 Puducherry 21.49 Puducherry 13.75Ladakh 27.43
Haveli and Nicobar
Daman& Diu# Islands
6 Dadra & Nagar 13.62 Puducherry 9.31 Dadra & 0 Ladakh 0 Andaman & 20.94 Dadra & 8.57Dadra & 24.91
Haveli and Nagar Haveli Nicobar Nagar Haveli Nagar Haveli
Daman& Diu# andDaman & Islands andDaman& andDaman&
Diu# Diu# Diu#
National 43.89 54.29 29.1 37.0 50.96 54.63 47.51
Average 8 4
Source:Report titled “Statusof Devolution toPanchayatsinStates - An Indicative Evidence-BasedRanking,2024”
Note: #Statesfor which previousdata isused.
*Provisionsof PartIX (Panchayat) donot applytothese states.
**Panchayatsare not operational inthese UT.
6