Parliament Question: Role of Panchayati Raj Institutions in rural development

GOVERNMENT OF INDIA MINISTRYOF PANCHAYATIRAJ RAJYASABHA UNSTARREDQUESTION NO 4201 ANSWEREDON 01.04.2026 ROLE OFPANCHAYATI RAJ INSTITUTIONS IN RURALDEVELOPMENT 4201SHRIJAGGESH: Will the Minister of PANCHAYATIRAJ be pleased to state: (a) whether Government recognizes that India’s development trajectory places Panchayati Raj Institutions at the core of people-centricandtechnology-enabledrural transformation; (b) whether any assessment has been made of the expanding role of Panchayati Raj Institutions in strengthening local governance and ensuring inclusive growth at the grassroot level; (c) whether Government has taken steps to promote digital governance, transparency and capacitybuildingof Panchayati Raj Institutions through nationalprogrammes; (d) whether Government proposes further policy, financial or institutional measures to strengthen Panchayati Raj Institutions; and (e)if so, the detailsthereof? ANSWER THE MINISTER OF PANCHAYATI RAJ (SHRIRAJIVRANJAN SINGH ALIAS LALAN SINGH) (a) and (b) Yes, Sir.The 73rd Constitutional Amendment Act,1992, promulgated on 24th April, 1993, added ‘Part IX’, relating to Panchayats, to the Constitution of India. Consequently, ‘Panchayats’ have assumed Constitutional status. “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 StatePanchayati Raj Acts. States have made their own PanchayatiRaj Act, 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 appropriate level, subject to such conditions as may be 1specified, 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 upon Panchayats.Accordingly, all matters relating to Panchayats, including assessment to expand role of Panchayati Raj Institutions in strengthening local governance and ensuring inclusive growth at the grassroot level,fall within the purviewof StateGovernment. 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 increasedfrom 39.9% to43.9% betweenthe period2013-14 to2021-22. The Ministry of Panchayati Raj also reviews performance of Panchayats, from time to time, through studies, review meetings, field visits, video conferencing, Information Technology applicationsetc. (c) It is the prime responsibility of State Government concerned to promote digital governance, transparency and capacity building of Panchayati Raj Institutions and also to propose policy, financial,or institutional measures tostrengthen PanchayatiRaj Institutions. This Ministry has implemented a Centrally Sponsored Scheme called Revamped Rashtriya Gram Swaraj Abhiyan (RGSA) w.e.f. financial year 2022-23 with main objective for capacitating PRIs through imparting training to all the Elected Representatives, functionaries and other stakeholders to develop their governance capabilities for leadership roles to enable the Panchayats to function effectively. Under RGSA, the Ministry provides support for various categories of training, including basic orientation and refresher training, thematictraining, specializedtraining,andtrainingfor Panchayat DevelopmentPlanning,etc. The schemealso supportsexposurevisits, developmentof trainingmodulesandmaterials,etc. In addition to training interventions, the scheme supports institutional strengthening and the creation of basic infrastructure for capacity building at the Panchayat level. This includes support for establishing institutional mechanisms for training and capacity building, and for creating Panchayat infrastructure such as Gram Panchayat Bhawans, computer facilities, and the co-location of Common Service Centres (CSCs) in panchayat office premises, on a limitedscale. Further, to enhance the skills and knowledge, a major step has also been taken for capacity building and training of elected representatives and functionaries of Panchayats through institutes of excellence like IIMs/IITs, etc., under the Leadership/Management Development Program (MDP). Under this MDP training,3,381 have beentrained so far as of 28.02.2026. 2The 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. The Ministry isimplementing 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, hasfacilitateddigital planning,accounting,monitoring,andonline paymentsat the Panchayat level.The integrationofeGramSwarajwith thePublicFinancialManagementSystem(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). During the same period, Panchayati Raj Institutions made payments amounting to ₹53,342 crore through the eGramSwaraj–PFMS interface. 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. Similarly, Panchayat NIRNAY is an online application that aims at bringing transparency and better managementinconduct of Gram SabhasbyPanchayats. Furthermore, an application of ‘AuditOnline’ has been developed for online audits of Panchayat accounts and their financial management. AuditOnline for transparent auditing of Central Finance Commission funds utilization to strengthen financial management of Panchayats launched inApril 2020. Foraudit period 2023-24, audit report for 2,58,074 Gram Panchayatshave been generated. The Ministry has also introduced SabhaSaar, an AI-enabled voice-to-text and meeting summarisation platform, to support accurate and timely documentation of Gram Sabha and Panchayat meetings. The platform facilitates multilingual transcription, agenda- wise summarisation of proceedings, validation of minutes byPanchayat functionaries prior to finalisation, and structured recording of resolutions and action points. SabhaSaar is intended to enhance transparency, efficiency and follow-up in grassroots governance. As on 18-03- 2026, over 1.17 lakh Gram Panchayats have utilized the SabhaSaar portal for generation of Minutes of Meetings, andmore than2.39lakh Minutes have beenuploadedonthe portal. Furthermore, the Ministry has strengthened the e-GramSwaraj platform through integration with other national digital platforms. Integration with the Government e- Marketplace (GeM) facilitates transparent, efficient and rule-based procurement by Gram Panchayats. Integration with Bharat Sanchar Nigam Limited (BSNL) enables Gram Panchayats to apply for internet connectivity at the Panchayat level. Integration with BHASHINI enables multilingual access to e-GramSwaraj, thereby improving accessibility in regional languages. In addition, integration of weather forecast information supports informed local planning and timely decision-making, particularly in the areas of agriculture 3anddisaster preparedness. (d) and (e)The Ministry of Panchayati Raj reviews performance and undertakes policy, financialorinstitutionalmeasures tostrengthenPanchayatiRajInstitutions, fromtime totime. The detailsare mentioned inreplytopara (c)above. **** 4