**Executive Summary**
This document is a response to Unstarred Question No. 1523 in Lok Sabha, answered on December 9, 2025, regarding the performance of Rashtriya Gram Swaraj Abhiyan (RGSA). The response outlines the role of Panchayats, reviews the performance of Panchayati Raj Institutions (PRIs), and details the features of the RGSA scheme, including conditions for States to access funds.
**Key Points / Main Content**
* **Constitutional Status of Panchayats:**
* Part IX of the Constitution of India relates to Panchayats, following the 73rd Constitutional Amendment Act, 1992.
* Panchayats have constitutional status and are central to rural governance.
* Panchayats are constituted every five years through elections in all States and Union Territories.
* Seats and offices of Chairpersons are mandatorily reserved for Scheduled Castes, Scheduled Tribes, and women.
* **Performance Review and Loopholes:**
* Panchayats function under State laws, making their performance vary across States.
* States are primarily responsible for reviewing Panchayat performance and addressing deficiencies.
* The Ministry of Panchayati Raj assists States and Union Territories and reviews PRIs through various methods.
* The Ministry of Panchayati Raj formulates “Panchayat Advancement Index (PAI)”, a multidimensional tool.
* PAI FY 2022-23 version 1.0 has been released on 9th'April 2025.
* The Ministry has released a report titled “Status of Devolution to Panchayats in States - An Indicative Evidence-Based Ranking, 2024" in February 2025
* **Rashtriya Gram Swaraj Abhiyan (RGSA):**
* RGSA is implemented from 2022-23 to 2025-26 to capacitate PRIs through training.
* The scheme supports basic infrastructure for effective functioning of Gram Panchayats.
* States/Union Territories can propose action plans focusing on the North East.
* Support provided for Project Management Units and Panchayat Resource Centers.
* **Conditions for Accessing RGSA Funds:**
* Regular conduct of Panchayat elections.
* Minimum one-third reservation for women.
* Constitution of State Finance Commission every five years.
* Constitution of District Planning Committees.
* Preparation of annual State Capacity Building Plan for PRIs.
* Approval of Economic Development and Income Enhancement projects by respective Panchayats.
**Impact Analysis**
**Stakeholder: State Governments/Union Territories**
* **Impact:** Responsible for reviewing Panchayat performance, addressing deficiencies, and implementing RGSA guidelines.
* **Action Required:** Comply with conditions to access RGSA funds, develop and implement capacity building plans, and ensure the proper functioning of Panchayats under their jurisdiction.
**Stakeholder: Panchayati Raj Institutions (PRIs)**
* **Impact:** Focus on implementation of the localization of Sustainable Development Goals at Gram Panchayat.
* **Action Required:** Participate in training programs, improve governance capabilities, ensure adherence to the Constitution and State laws, and prepare development plans.
**Stakeholder: Ministry of Panchayati Raj**
* **Impact:** Oversees the implementation of RGSA and provides support to States/Union Territories.
* **Action Required:** Monitor the performance of PRIs, continue to provide assistance to States/Union Territories, and administer the RGSA scheme effectively.
Key Entities Referenced
Rashtriya Gram Swaraj Abhiyan (RGSA): A centrally sponsored scheme aimed at strengthening Panchayati Raj Institutions in India, with the goal of capacitating them and developing their governance capabilities.
Panchayats: Local self-government institutions at the village, intermediate, and district levels in India, constituted through elections, responsible for rural governance and socio-economic development.
Ministry of Panchayati Raj: The primary government body responsible for overseeing and supporting Panchayati Raj Institutions in India.
73rd Constitutional Amendment Act, 1992: An act that inserted Part IX relating to Panchayats into the Constitution of India, granting them constitutional status.
Panchayat Advancement Index (PAI): A multidimensional tool developed by the Ministry of Panchayati Raj to measure the progress of Gram Panchayats in implementing the Localization of Sustainable Development Goals (LSDGs).
GOVERNMENT OF INDIA
MINISTRYOF PANCHAYATIRAJ
LOK SABHA
UNSTARREDQUESTION NO.–1523
ANSWEREDON- 09.12.2025
PERFORMANCE OFRASHTRIYAGRAM SWARAJ ABHIYAN
1523.SHRIARVIND DHARMAPURI:
Will the Minister of PANCHAYATIRAJ be pleased to state:
(a) the key role of Panchayats in rural governance and socio-economic development of the
country;
(b) whether the Government has reviewed/assessed the performance of the Panchayati Raj
Institutions (PRIs) inthe country;
(c) if so, the details and the outcome thereof including the various loopholes or deficiencies
noticedinthe functioning of Panchayatsasinstitutions of localSelf-Government;
(d) whether the Government has launched Rashtriya Gram Swaraj Abhiyan (RGSA) to
strengthen Panchayati Raj; and
(e) if so, the key features of the scheme including the conditions/norms laid down to release
funds tothe StatesunderRGSA?
ANSWER
THE MINISTER OF PANCHAYATI RAJ
(SHRIRAJIVRANJAN SINGH)
(a) PartIX, relating tothe Panchayats,has beeninserted in the Constitution of India as
a sequel tothe 73rd Constitutional Amendment Act, 1992. Consequently, ‘Panchayats’ have
assumed Constitutional status. Since then, Panchayats are in the centre of rural governance
1and socio-economic development of the country. Panchayats are constituted, through
elections every five years, in all States and Union Territories, covered under Part-IX of the
Constitution, at village level, intermediate level and district level, which are called as Gram
Panchayats, Block Panchayats and District Panchayats respectively, but the States/Union
Territories having a population not exceeding twenty lakhs may not have Panchayats at
intermediate level. Seats of all Panchayats are filled through direct elections and offices of
Chairpersons of BlockPanchayats and District Panchayats are filled through indirect election
whereas the manner to elect the Chairperson of a Gram Panchayat has been left with at the
discretion of the State/Union Territory. These Panchayat elections are conducted under the
directions of the StateElection Commission. In Panchayats, seats and offices of Chairpersons
are reserved mandatorily for the Scheduled Castes, Scheduled Tribes and women but for the
backward class of citizens, the State/Union Territory concerned may make provisions for
reservation of seats and offices of Chairpersons for them too. Panchayats are able to prepare
their plans and implement the schemes for ‘economic development and social justice’. For
this purpose, the Legislature of the State/Union Territory has been empowered to devolve
powers and responsibilities to the Panchayats to function them as an institution of local self-
government. Panchayats are authorized to levy, collect and appropriate the taxes, duties, tolls
and fees. All the above mentioned provisions apply to the Panchayats in accordance with the
Panchayati Raj laws made by the State/Union Territory concerned, subject to the provisions
of the Constitution of India.
(b) and (c) ‘Panchayats”, being local government, is a State subject as per Entry No. 5
of the State list under Seventh Schedule to the Constitution of India. Panchayats function in
accordance with the Panchayati Raj laws of the State concerned, subject to the provisions of
the Constitution. Functioning of the Panchayats depends on the extent of powers devolved to
them bythe State concerned,which mayvary from Stateto State.There istherefore variation
in performance of Panchayats in different States. Thus, it is the primary responsibility of
the State to review/assess the performance of the Panchayats and to notice the loopholes or
deficienciesintheir functioningandtake steps tootorectifythe same.
The Ministry of Panchayati Raj has also taken various steps to provide assistance to the
States & Union Territories and reviews performance of Panchayati Raj Institutions (PRIs),
2from time to time, through studies, review meetings, field visits, video conferencing,
InformationTechnology applicationsetc.
This Ministry has formulated “Panchayat Advancement Index (PAI)”, a multidimensional
tool to measure the process of the implementation of the localization of Sustainable
Development Goals at Gram Panchayat based on local indicators across 9 themes. The
outcomes of the PAI, over time, will reflect incremental progress based on the scores
achieved by Gram Panchayat, highlighting their advancement toward realizing the
Localization of Sustainable Development Goals (LSDGs). Currently, PAI FY 2022-23
version 1.0 has been released on 9th'April 2025. A total of 29 States/Union Territories have
submitted validated PAI data of 2.16 lakh Gram Panchayats/equivalent. PAI has been
compiled based on 435unique local Indicators (331 mandatory & 104optional) consisting of
566 unique data points across 9 themes of LSDGs. Through PAI, the Gram Panchayats are
automatically made aware of theirloopholesor deficienciesinthe functioningof Panchayats.
Further, this 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,andAccountability.
(d) and (e) The Ministry has implemented Centrally Sponsored Scheme of Revamped
Rashtriya Gram Swaraj Abhiyan (RGSA) for the period of 2022-23 to 2025-26 in all States
and Union Territories with main objective for capacitating Panchayati Raj Institutions
through imparting training to all the Elected Representatives, Panchayat functionaries and
other stakeholders to develop their governance capabilities for leadership roles to enable the
Panchayatstofunction effectively.Under the scheme,thisMinistry supplementsthe efforts of
States/Union Territories on limited scale for creation of basic infrastructure for effective
functioning of Gram Panchayats such as construction of Gram Panchayat Bhawans,
Computers and colocation of Common Service Centres with Gram Panchayat Bhawans with
3focus on North East States, as proposed by States/ Union Territories in their Annual Action
Plans and later approved by Central Empowered Committee. Ministry has also been
providing support to the States/Union Territories, under the scheme of revamped RGSA for
setting up of Project Management Units at States, District and Block level as approved in the
Annual Action Plan for effective implementation of the scheme andsetting upof institutional
mechanism as State, District and Block level Panchayat Resource Centres to support
CapacityBuilding& Training of Panchayats.
As per the guidelines for implementation of RGSA, the essential conditions to be fulfilled by
StatesandUnion Territories toaccessRGSAfunds are:
(i) Regular conduct of elections to Panchayats or local rural bodies in non-Part IX
areas.
(ii) Not less thanone thirdreservation for women inPanchayats.
(iii) Constitution of State Finance Commission every five years, and placement of
Action Taken Report on the recommendations of the State Finance Commission in
the Statelegislature.
(iv) Constitution of District Planning Committees in all districts, and issuing of
Guidelines/rules tomake these functional.
(v) Preparation and submission of detailed annual State Capacity Building Plan for
PRIs.
(vi) The Economic Development and Income Enhancement projects should have
approval of respective Panchayat (Gram Panchayat for the project of Gram
Panchayat level, Block Panchayat for the project of Block level and District
Panchayat for the project of District level) before submitting to Ministry for
consideration.
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