New Delhi [India], July 28 (ANI): The Ministry of Panchayati Raj on Tuesday 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, including assessment of the status of financial and administrative empowerment of Panchayati Raj Institutions (PRIs), an official release said.
This report presents the Devolution Index, which provides the overall scores and ranks for all States/Union Territories (UTs) covered under Part-IX of the Constitution, based on six identified dimensions: Framework, Functions, Finances, Functionaries, Capacity Enhancement, and Accountability.
Many Gram Panchayats are facing difficulties in effectively implementing local development works due to inadequate financial resources, shortage of manpower and limited administrative powers. “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.
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 Constitution.
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 implementing local development works, manpower requirement, financial resources, administrative powers at the Panchayat level and enhancement of the financial and administrative autonomy of Panchayats, etc. fall within the purview of the State Government.
During the 15th Finance Commission (FC) award period (FY 2020-21 to FY 2025-26), including the interim period of FY 2020-21, a total of Rs. 2,82,632 Crores have been released against the total allocation of Rs. 2,97,555 Crores. The State-wise details of allocation & release of the funds under 15th FC are placed at Annexure I.
Further, under the Revamped Rashtriya Gram Swaraj Abhiyan (RGSA) of the Ministry, a total of Rs. 3601.77 Crores have been released to the States/UT during the last five years from FY 2021-22. The details of funds released to the States/UTs under the Revamped RGSA scheme during the last five years are at Annexure-II.
As part of the Digital India initiative, MoPR has established an integrated digital governance ecosystem for Panchayats to promote transparency, accountability, and efficient financial management. This Ministry has launched ‘eGramSwaraj’ in 2020-21 as a unified digital platform which supports end-to-end planning, budgeting, accounting, monitoring, and online payments.
Its integration with the Public Financial Management System (PFMS), Government e-Marketplace (GeM), and AuditOnline has enabled seamless fund flow, transparent procurement, payments and auditing, thereby strengthening governance and financial oversight at the grassroots. As a result, around 2,40,435 out of 2,64,998, i.e. 90.73% of PRIs have generated audit reports in FY 2024-25. The tier-wise details of audit reports generated in FY 2024-25 are placed at Annexure-III.
The Ministry has implemented the Centrally Sponsored Scheme of Rashtriya Gram Swaraj Abhiyan (RGSA) since the financial year 2022-23 in States/ UTs. The main objective of the scheme is to build the capacity of PRIs by creating a learning ecosystem, especially through training for the Elected Representatives (ERs), functionaries, and other stakeholders to develop their governance capabilities to function effectively, and also by supporting exposure visits, development of training modules and materials, etc. A total of 1,66,41,509 Elected Representatives were trained from FY 2022-23 to FY 2026-27 (as on 10.07.2026) under the scheme.
A major step has also been taken to build capacity and train elected representatives and functionaries of Panchayats through institutes of excellence such as Indian Institutes of Management (IIMs)/ Indian Institutes of Technology (IITs) under the Leadership/Management Development Program (MDP). Under this MDP training, 3,490 people have been trained so far as on 10.07.2026.
The Ministry has also implemented the e-Panchayat Mission Mode Project (MMP) under the RGSA scheme, which has significantly enhanced transparency, efficiency, and governance at the grassroots level. The eGramSwaraj application, developed as part of the e-Panchayat MMP, has facilitated digital planning, accounting, monitoring, and online payments at the Panchayat level.
The integration of eGramSwaraj with the Public Financial Management System (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).
Further, ‘AuditOnline’, an application, has been developed for online audits of Panchayat accounts and their financial management. This application was launched in April 2020 for transparent auditing of Central Finance Commission funds utilisation to strengthen financial management of Panchayats.
The Ministry has also undertaken a significant step to digitise the collection of Own Sources of Revenue (OSRs) of the Panchayats by developing the “SAMARTH Panchayat portal”, a dedicated digital platform that facilitates the generation of tax & non-tax demands and collection thereof, maintenance of tax registers, and online tracking of revenue. This digital empowerment is designed to bring transparency, efficiency, and scalability to local financial administration.
In 2025, the Ministry has launched the Atma Nirbhar Panchayat Special Award (ANPSA) to promote Atmanirbharta through the augmentation of OSR by Panchayats.
Moreover, to provide greater financial autonomy, enhance decision-making capacity at the grassroots level, and make Gram Panchayats self-reliant, the Ministry of Panchayati Raj, in collaboration with IIM Ahmedabad, has developed a training module on OSR to strengthen the financial self-reliance of Gram Panchayats. The module helps elected representatives and Panchayat functionaries understand how OSR is generated through tax and non-tax sources. Under the Specialised Module of OSR, 2,75,893 have been trained so far as on 10.07.2026.
Further, the Ministry has developed applications such as Meri Panchayat, which have endeavoured to bring transparency in Panchayat Governance by making information on planning, activities and progress of works in Panchayat accessible to the public. Similarly, Panchayat NIRNAY is an online application that aims at bringing transparency and better management in the conduct of Gram Sabhas by Panchayats. (ANI)
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