**Executive Summary**
This document from the Ministry of Panchayati Raj discusses the promotion of rural development projects via Panchayati Raj Institutions (PRIs). It outlines various schemes and initiatives implemented to strengthen PRIs, enhance transparency, and promote grassroots development. The information was provided on December 10, 2025.
**Key Points / Main Content**
* **Panchayati Raj System:**
* Panchayats are a State subject operating under respective State Acts.
* The performance and development of Panchayats depend on powers and resources devolved by States.
* State Governments are responsible for ensuring the accountability of PRIs.
* Government priority is to position Panchayats as the core of rural transformation.
* **Schemes and Initiatives:**
* Rashtriya Gram Swaraj Abhiyan (RGSA): A Centrally Sponsored Scheme for Capacity Building & Training (CB&T) of Panchayat stakeholders.
* Financial support for innovative projects and income enhancement across States/UTs. A project approved for Karnataka during FY 2022–23: "Sustainable Support for Production and Marketing of Affordable Packaged Nutritious Food Products Produced by Empowered Rural SHG Women with the Support of Gram Panchayats” amounting to Rs. 3.17 crores.
* Grants released as per the Fifteenth Finance Commission (XV FC): Rs. 60,750 crores for interim period FY 2020-21 and Rs.2,36,805 crore for the period FY 2021-26.
* eGramSwaraj: A web-based portal to increase transparency through decentralized planning, progress reporting, financial management, and asset details.
* Integrated with the Public Financial Management System for online transfer of funds.
* Allows Panchayats to prepare and upload Annual Panchayat Development Plans (GPDPs).
* Integrated with Government e-Marketplace (GeM) to bring transparency to Panchayat procurement.
* People's Plan Campaign ('Sabki Yojana Sabka Vikas'): Preparation of evidence-based, holistic Development Plans at the grassroots level since 2018.
* AuditOnline: An online application for online audits of Panchayat accounts and financial management, launched in April 2020.
* Panchayat NIRNAY portal: A real-time monitoring system for local self-governance at the Gram Panchayat level.
* PRI-CBO convergence: PRIs training orientation on the Village Prosperity Resilience Plan (VPRP) for strengthening collective planning. August to September, 2025.
* **XV FC Grants to Karnataka:**
* 2022-23: Rs. 2093.55 crores
* 2023-24: Rs. 2086.59 crores
* 2024-25: Rs. 2133.25 crores
* **Gram Panchayat Coordination Committees (GPCC):**
* 804 GPCCs formed in Karnataka as a grassroots forum to strengthen collaboration and ensure effective implementation of the GPDP.
**Impact Analysis**
**Panchayats / PRI Representatives:**
* **Impact:** Enhanced capacity, increased transparency, and improved financial management. Access to funds and resources for rural development projects.
* **Action Required:** Utilize eGramSwaraj for planning and reporting. Engage in People's Plan Campaign. Participate in PRI-CBO convergence.
**State Governments:**
* **Impact:** Increased responsibility for devolving powers and resources to Panchayats. Need to ensure accountability of PRIs.
* **Action Required:** Support Panchayats in implementing development plans. Ensure the effective functioning of GPCCs.
**Citizens / Residents:**
* **Impact:** Increased participation in planning and development processes at the grassroots level. Greater transparency and accountability in local governance.
* **Action Required:** Participate in Gram Sabha meetings. Engage in the People's Plan Campaign.
**Vendors / Service Providers:**
* **Impact:** Opportunity to provide goods and services to Panchayats through the GeM portal.
* **Action Required:** Register on the GeM portal. Participate in Panchayat procurement processes.
**Ministry of Panchayati Raj:**
* **Impact:** Responsible for oversight, coordination, and funding of rural development projects through Panchayati Raj Institutions.
* **Action Required:** Continue implementation of schemes and initiatives. Monitor progress and outcomes.
Key Entities Referenced
Panchayati Raj Institutions (PRIs): Local self-government bodies at the village, intermediate, and district levels in India, responsible for planning and implementing rural development programs.
Rashtriya Gram Swaraj Abhiyan (RGSA): A Centrally Sponsored Scheme aiming to build capacity and train elected representatives, functionaries, and other stakeholders of Panchayats for improved governance.
Fifteenth Finance Commission (XV FC): The constitutional body recommending the principles governing the distribution of tax revenues between the Union and the States, including grants to local bodies.
eGramSwaraj: A user-friendly web-based portal aimed at increasing transparency in panchayat functioning through decentralized planning, progress reporting, and financial management.
Karnataka: An Indian state highlighted in the document as a recipient of financial assistance and a focus area for implementation of the mentioned schemes and initiatives for the Panchayati Raj Institutions.
Ministry of Panchayati Raj
Promotion Of Rural Development Projects Via
Panchayati Raj Institutions
प्रव तथ: 10 DEC 2025 3:19PM by PIB Delhi
Panchayat’, being “Local Government”, is a State subject and part of the State List of the 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.
The performance and development of the Panchayats depend on the extent of powers and resources
devolved to them by the States concerned. Accordingly, all matters relating to Panchayats, including
effective functioning of Panchayati Raj Institutions (PRIs), strengthening the institutional mechanism to
ensure the accountability of PRIs towards people and their performance monitoring and evaluation, come
within the jurisdiction of the State Government.
The Government's priority for developing the Panchayati Raj System is to position Panchayats and their
elected representatives as the core of rural transformation. This includes making Panchayats the hubs of
service delivery for various subjects and fostering the development of their own revenue sources.
The Ministry has been implementing a Centrally Sponsored Scheme of Rashtriya Gram Swaraj Abhiyan
(RGSA) with the major objective of Capacity Building & Training (CB&T) of Elected Representatives,
Functionaries, and other stakeholders of Panchayats across all States/UTs, including Karnataka for
improving Panchayat Governance. Under the scheme of RGSA, the Ministry supplements the efforts of
States and UTs in building Panchayat infrastructure at a limited scale, with particular focus on the North-
Eastern States. Under this scheme, the Ministry assists with key infrastructure elements within
Panchayats, including the Panchayat Bhawan and Computers & peripherals.
In addition, under the scheme, projects aimed at innovation, economic development, and income
enhancement have been supported across States/UTs, including Karnataka. The project approved for the
State of Karnataka under the economic development and income enhancement component is titled
“Sustainable Support for Production and Marketing of Affordable Packaged Nutritious Food Products
Produced by Empowered Rural SHG Women with the Support of Gram Panchayats” during FY 2022–23,
amounting to Rs. 3.17 crores.
The Government supports the Panchayati Raj Institutions by releasing Grants as per recommendation of
the Fifteenth Finance Commission (XV FC) to the tune of Rs. 60,750 crores for the interim period FY
2020-21 and Rs.2,36,805 crore for the period FY 2021-26 to Panchayats in all the three tiers and
Traditional Local Bodies and Sixth Schedule areas in 28 States including Karnataka.
The details of XV FC Grants released to the State of Karnataka for the FY 2022-2025 are as under:
Financial Year Amount released (Rs. in crores)
2022-23 2093.552023-24 2086.59
2024-25 2133.25
To strengthen the functioning of PRIs across the country, this Ministry has launched eGramSwaraj, a user-
friendly web-based portal, which aims at increasing transparency through decentralized planning, progress
reporting, financial management, work-based accounting and details of assets created.The eGramSwaraj
portal has also been integrated with the Public Financial Management System for online transfer of the
Central Finance Commission funds by the States to PRIs and enabling Panchayats to make real-time
payments to vendors/service providers. Panchayats prepare and upload their Annual Panchayat
Development Plans on the eGramSwaraj portal.
The Ministry has been rolling out the People’s Plan Campaign as ‘Sabki Yojana Sabka Vikas’ since 2018
for the preparation of evidence-based, holistic and inclusive Development Plans at the grassroots level in a
structured manner, including Gram/Village Panchayats, Block/Intermediate Panchayats and District
Panchayats. The main objective is active participation of Sarpanches, Panchayat members and residents to
facilitate the identification of local development issues, needs and priorities, and based on the same
thematic Sankalp is taken for the preparation of a comprehensive Gram Panchayat Development Plan,
aiming at the saturation of services and infrastructure in all the sectors contained in a particular theme.
For the Plan Year/FY 2024-25, 2.5 lakh Gram Panchayats have prepared and uploaded their Annual
Development Plans (GPDPs) on the eGramSwaraj portal. In addition, the Ministry has integrated
eGramSwaraj with the Government e-Marketplace (GeM) to bring transparency to Panchayat
procurement. This integration allows Panchayats to procure goods and services through GeM via the
eGramSwaraj platform, promoting the “Vocal for Local” initiative.
Further, an online application ‘AuditOnline’ has been developed for online audits of Panchayat accounts
and their financial management. AuditOnline portal, launched in April 2020, facilitates transparent
auditing of Central Finance Commission funds utilization and strengthens the financial management of
Panchayats.
The Ministry has also launched the Panchayat NIRNAY portal, a real-time monitoring system for local
self-governance in rural India at the Gram Panchayat level. It deals with Gram Sabha Meetings-
scheduling, notifying citizens with the meeting’s agenda well in advance, enhancing public participation in
Panchayat Meetings, recording and enabling panchayat decisions for ready reference, bringing about
transparency and accountability of panchayat functionaries in panchayat decision making and its
implementation in Gram Panchayats. It also facilitates Panchayats for best practices sharing across the
country. It facilitates a completely automated online workflow for the Gram Sabha management system,
substituting the paper-based manual process. The primary objective of the “Panchayat NIRNAY” portal is
to make the Gram Sabha meetings more participatory, transparent and vibrant.
Further, the Ministry of Rural Development, as a part of the Panchayati Raj Institution -Community Based
Organisation (PRI- CBO) convergence provided PRIs training orientation on the Village Prosperity
Resilience Plan (VPRP) and how to strengthen collective planning to bridge development gaps by
collective responsibility. This was done at the block level during August to September, 2025.
Through PRI-CBO convergence, 804 Gram Panchayat Coordination Committees (GPCC ) have been
formed as a Grassroots forum, in 804 out of 5954 Gram Panchayats in the state of Karnataka. These
GPCCs cover 34 blocks out of 238 blocks in the State. These forums work on strengthening collaboration
among all development stakeholders and ensuring effective implementation of the demands incorporated
in the Gram Panchayat Development Plan (GPDP).This information was given by Union Minister Shri Rajiv Ranjan Singh alias Lalan Singh in a written
reply in Rajya Sabha on 10th December 2025.
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