**Executive Summary**
On April 24, 2026, the Ministry of Panchayati Raj observed National Panchayati Raj Day in New Delhi, marking the 33rd anniversary of the 73rd Constitutional Amendment Act. The event highlighted the role of Panchayati Raj Institutions (PRIs) in achieving the "Viksit Bharat" vision and announced an 84% increase in financial grants under the Sixteenth Finance Commission. Key action items include the release of the Panchayat Advancement Index (PAI) 2.0 and the requirement for PRIs to mobilize own-source revenue to access performance-linked grants.
**Key Points / Main Content**
**National Vision and Leadership**
* Prime Minister Narendra Modi affirmed that empowered and strong Panchayats are the vital link for public participation, transparency, and inclusive development.
* The "Viksit Bharat" vision is rooted in the empowerment of villages, farmers, and local communities through PRIs.
* Capacity-building programs have led to a visible transformation in leadership and decision-making among elected representatives, with a specific emphasis on the empowerment of women.
**Financial and Governance Reforms**
* The Sixteenth Finance Commission has recommended a nearly 84% increase in grants for Rural Local Bodies compared to the Fifteenth Finance Commission.
* Grants are allocated using an 80:20 ratio between Basic Grants and Performance Grants to balance assured funding with incentives for local governance quality.
* Performance Grants are now strictly linked to the mobilization of "Own Sources of Revenue" by the Panchayats to encourage financial discipline.
* Digital platforms, including e-GramSwaraj and SabhaSaar, are being utilized to advance efficiency, transparency, and accountability in rural governance.
**Performance Monitoring and Cultural Initiatives**
* The Panchayat Advancement Index (PAI) 2.0 Report (FY 2023-24) was released, featuring a refined framework of 150 indicators across nine themes tied to Sustainable Development Goals (LSDGs).
* PAI 2.0 recorded a 97.30% participation rate among Gram Panchayats across 33 States and Union Territories.
* Under the "Panchayat Dharohar Initiative," three new monographs were released documenting the rural heritage of Tripura, Tirupati, and Uttarkashi.
**Impact Analysis**
**Panchayati Raj Institutions (PRIs) / Gram Panchayats**
**Impact**
PRIs are gaining greater constitutional and financial status with a massive increase in available grants; however, they are now subject to more rigorous data-driven performance assessments through PAI 2.0.
**Action Required**
PRIs must take concrete steps to augment their "Own Sources of Revenue" to qualify for Performance Grants and utilize digital tools like e-GramSwaraj for transparent governance.
**Elected Representatives (particularly Women)**
**Impact**
Representatives are benefiting from structured capacity building and training, leading to enhanced roles in decision-making and grassroots leadership.
**Action Required**
Representatives are called upon to uphold values of service and integrity while encouraging greater public participation in Gram Sabhas.
**Ministry of Panchayati Raj / Government Officials**
**Impact**
The Ministry has successfully institutionalized a nationwide data-driven framework (PAI 2.0) for evidence-based planning and performance monitoring.
**Action Required**
Officials must continue to disseminate the Prime Minister’s message and manage the dissemination of performance-linked resources across all States and Union Territories.
Key Entities Referenced
73rd Constitutional Amendment Act: The legislation that accorded constitutional status to Panchayati Raj Institutions (PRIs) across India, marking its 33rd anniversary.
Sixteenth Finance Commission: The commission whose recommendations provide for significant financial empowerment and performance-linked grants to Rural Local Bodies.
Panchayat Advancement Index (PAI) 2.0: A nationwide data-driven framework released to assess Gram Panchayat performance across themes linked to Sustainable Development Goals.
Ministry of Panchayati Raj: The primary ministry responsible for the governance of local bodies and the organization of the National Panchayati Raj Day event.
Panchayat Dharohar Initiative: A cultural initiative under which monographs documenting the rural heritage of regions like Tripura, Tirupati, and Uttarkashi were released.
Ministry of Panchayati Raj
Prime Minister Shri Narendra Modi greets Public
Representatives on National Panchayati Raj Day
Prime Minister’s written Message affirms that Strong
Panchayats are the most vital link for Public Participation,
Transparency & Inclusive Development
“Empowered Panchayats are key to realising the Vision of
Viksit Bharat ”: Prof. S.P. Singh Baghel
Posted On: 24 APR 2026 7:19PM by PIB Delhi
The Ministry of Panchayati Raj organized a national event to observe National Panchayati Raj Day in
New Delhi today, marking 33 years of the 73rd Constitutional Amendment Act, that accorded
constitutional status to Panchayati Raj Institutions (PRIs) across India. Elected representatives of Gram
Panchayats as well as officials from Haryana, Uttar Pradesh and Uttarakhand participated in the national
event.
Prime Minister Shri Narendra Modi, greeted public representatives across the country on the occasion
of Panchayati Raj Day. "Your dedication to public service and service to the nation is truly inspiring
for everyone” Shri Modi remarked. Prime Minister’s written message, was read out at the national event
and widely disseminated to elected representatives and functionaries of PRIs and Rural Local Bodies
across all States and Union Territories.पंचायती राज दवस के अवसर पर दशभर के जनप्रतनधय का हादक अभनंदन! जनसेवा के साथ
राष्ट्रसेवा के प्रत आप सभी का समपण हर कसी को प्रेरत करने वाला ह।
प्रजासुखे सुख ं राः प्रजाना ं च हते हतम्।
नात्मप्रय ं प्रयं राः प्रजाना ं त ु प्रय ं प्रयम्॥ pic.twitter.com/gb0K3Rr709
— Narendra Modi (@narendramodi) April 24, 2026
Union Minister of State for Panchayati Raj Prof. S. P. Singh Baghel addressed the gathering and
reaffirmed that PRIs form the backbone of India’s sustainable development in rural areas. He stressed that
empowering Panchayats is central to realising the vision of Viksit Bharat, rooted in the development of
villages, farmers and local communities. While highlighting the positive impact of capacity building
programmes, he stated that it has led to visible transformation in leadership and decision-making
among elected representatives, particularly women. He also commended the role of transparent
governance mechanisms and direct benefit transfers in strengthening service delivery at the grassroots
level. Prof. Baghel called upon all Panchayat representatives to uphold the values of service, integrity, and
development-oriented leadership, and expressed confidence that a strong Panchayati Raj system is the
surest foundation for a self-reliant India.Shri Vivek Bharadwaj, Secretary, Ministry of Panchayati Raj highlighted the significant financial
empowerment of Rural Local Bodies through the recommendations of the Sixteenth Finance Commission.
He noted that the recommended grant represents an increase of nearly 84 per cent over the allocations
under the Fifteenth Finance Commission, reflecting a decisive strengthening of fiscal federalism in favour
of the third tier of government. Shri Bharadwaj elaborated on the 80:20 ratio between Basic Grants and
Performance Grants, that balances assured resource flows with incentives for improved own-source
revenue mobilisation, financial discipline and quality of local governance. He drew attention to the
Performance Grant provision recommended by the 16th Finance Commission i.e. linked to
mobilization of Own Sources of Revenue by the Panchayats and called upon PRIs to take concrete
steps to mobilize and augment their own Sources of Revenue to get Performance Grants.
Additional Secretary, Ministry of Panchayati Raj Shri Sushil Kumar Lohani reflected on three
decades of Panchayati Raj since the 73rd Amendment, emphasising the role of structured capacity
building, training programmes and exposure visits in strengthening local leadership. He highlighted the
contribution of digital platforms such as e-GramSwaraj, SabhaSaar in advancing efficiency, transparency
and accountability while encouraging greater participation in Gram Sabhas to deepen self-reliant
governance.
On this occasion, the Panchayat Advancement Index (PAI) 2.0 Report for FY 2023-24 was released. PAI is India’s
first nationwide data-driven framework to assess Gram Panchayat performance across nine themes under
Localisation of Sustainable Development Goals (LSDGs). A significantly refined version of its
predecessor, PAI 2.0 has rationalised indicators from 516 to 150 and recorded an exceptional participation
of 97.30 per cent of Gram Panchayats across 33 States and Union Territories, a marked improvement over
the 80.79 per cent achieved under PAI Version 1.0. The Index serves as a key tool for evidence-based
planning, performance monitoring, and incentivisation of Panchayats, directly advancing the vision of
Viksit Panchayats steering towards Viksit Bharat. During the event, three illustrated publications under the
Panchayat Dharohar Initiative were also released, comprising a Monograph on Rural Heritage of
Tripura, a Monograph on Rural Heritage of Tirupati, and ‘Uttarkashi: Saumya Kashi: The Soul of
Himalayan Heritage’. Panchayati Raj Diwas was observed nationwide at State, District, Block and Gram
Panchayat levels with Gram Sabhas being held, reaffirming the spirit of participatory democracy.***
Aditi Agrawal
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