Ministry of Panchayati Raj
azadi ka amrit mahotsav

FUNCTIONING OF PANCHAYATI RAJ INSTITUTIONS

प्रविष्टि तिथि: 21 JUL 2026 6:18PM by PIB Delhi

“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 State Panchayati Raj Acts. States have made their own Panchayati Raj 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 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, to review the functioning of Panchayati Raj Institutions, to devolve greater administrative, financial and functional powers to Gram Panchayats, details of the funds, functions and functionaries devolved to Panchayats and to take steps to strengthen local self-Governance and ensure greater autonomy, accountability and capacity of Panchayati Raj Institutions, fall within the purview of State Government.

However, the Ministry of Panchayati Raj reviews performance of Panchayats, from time to time, through studies, review meetings, field visits, video conferencing, Information Technology applications etc. Year-wise details of the funds, functions and functionaries devolved to Panchayats by States are not maintained by Ministry of Panchayati Raj.

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 (UTs) 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 increased from 39.9% to 43.9% between the period 2013-14 to 2021-22. Ranking of States/UTs in Devolution Index and Sub-indices is attached as Annexure-I.

In these six identified dimensions, Framework includes reservation of seats for Scheduled Castes/ Scheduled Tribes and women, Panchayats elections & State Election Commission, Panchayats duration, dissolution & bye elections, constitution and function of District Planning Committee, role of Panchayats in Committees and parallel bodies/institutions, autonomy to Panchayats. Functions include functions assigned to Panchayats including Activity Mapping, expenditure incurred and actual involvement of Panchayats, involvement of Panchayats in important Schemes. Finances include Fifteenth Finance Commission Grants to the Panchayats, State Finance Commission (SFC), money transfers to Panchayat on accounts of the SFC recommendations, empowerment of Panchayats to impose and collect revenue, funds available with Panchayats, expenditure of Panchayats, initiatives related to finance, accounts and budget. Functionaries include physical infrastructure of Panchayats, e-connectivity of Panchayats, Panchayats officials. Capacity Enhancement includes training institutions, training activities–training of elected representative and officials. Accountability includes accounting and audit of Panchayats, social audit of Panchayats, functioning of Gram Sabha, transparency & anti-corruption, Panchayats assessment & incentivization.

To strengthen local self-Governance and ensure greater autonomy, accountability and capacity of Panchayati Raj Institutions, the Ministry has implemented a Centrally Sponsored Scheme, namely the Revamped Rashtriya Gram Swaraj Abhiyan (RGSA), w.e.f. financial year 2022-23, with the objective of supporting Panchayati Raj institutions by imparting trainings to Elected Representatives and other stakeholders to develop leadership abilities, thereby enabling Gram Panchayats to function effectively across all States/UTs. Under the scheme, capacity building support is provided to elected representatives, functionaries, and other stakeholders of Panchayats under different categories, viz. basic orientation and refresher programmes, thematic interventions, specialized trainings and Panchayat Development Plan-related programmes, etc. The scheme also supports exposure visits to facilitate experiential learning and replication of best practices for strengthening Panchayat governance, as well as development of training modules and materials etc.

Further, to enhance skills and knowledge, a major step has also been taken to build capacity and train elected representatives and functionaries of Panchayats through Institutes of excellence such as IIMs/IITs under the Leadership/Management Development Program (MDP).

The 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 functionaries understand how OSR is generated through tax and non-tax sources.

Additionally, the Ministry has launched a Specialized Training Module as a part of “Shashkta Panchayat Netri Abhiyan” for the capacity building of Women Elected Representatives of Panchayati Raj Institutions. The focus of this training module is to build the capacity of Women Elected Representatives across different aspects of rural governance and enhance their knowledge and practical skills for the effective discharge of roles and responsibilities as elected representatives, thereby promoting women-led governance.

ANNEXURE-I

Ranking of States/UTs in Devolution Index (DI) and Sub-indices

Rank

DI

Framework

Functions

Finances

Functionaries

Capacity Building

Accountability

State

Score

State

Score

State

Score

State

Score

State

Score

State

Score

State

Score

General Category States

1

Karnataka

72.23

Kerala

83.56

Tamil Nadu

60.24

Karnataka

70.65

Gujarat

90.94

Telangana

86.19

Karnataka

81.33

2

Kerala

70.59

Maharashtra

74.74

Karnataka

57.62

Kerala

62.89

Tamil Nadu

84.25

Tamil Nadu

84.29

Kerala

81.18

3

Tamil Nadu

68.38

Karnataka

74.43

Odisha

57.46

Tamil Nadu

55.78

Kerala

82.99

Gujarat

83.96

Maharashtra

80.36

4

Maharashtra

61.44

Haryana

73.3

Rajasthan

56.13

Rajasthan

54.56

Karnataka

80.11

Goa

77.7

Uttar Pradesh

76.07

5

Uttar Pradesh

60.07

Madhya Pradesh

70

Kerala

53.86

Odisha

53.57

Chhattisgarh

78.33

Andhra Pradesh

76.69

Tamil Nadu

71

6

Gujarat

58.26

Odisha

69.2

Uttar Pradesh

46.89

West Bengal

52.96

Bihar

75.13

Uttar Pradesh

74.44

Andhra Pradesh

60.49

7

Rajasthan

56.67

Rajasthan

68.54

Maharashtra

46.52

Uttar Pradesh

51.76

Maharashtra

73.63

Maharashtra

73.35

Telangana

60.43

8

West Bengal

56.52

Chhattisgarh

68.51

Chhattisgarh

42.39

Chhattisgarh

51.45

Andhra Pradesh

68.78

Karnataka

71.59

Chhattisgarh

58.17

9

Chhattisgarh

56.26

Tamil Nadu

66.83

Gujarat

41.23

Telangana

46.86

West Bengal

67.76

Kerala

71.11

West Bengal

57.87

10

Telangana

55.1

West Bengal

62.3

Madhya Pradesh

39.47

Bihar

43.86

Rajasthan

64.03

West Bengal

70.63

Odisha

51.92

11

Andhra Pradesh

54.43

Gujarat

61.65

Telangana

38.77

Andhra Pradesh

43.19

Uttar Pradesh

63.13

Madhya Pradesh

70

Bihar

51.64

12

Madhya Pradesh

50.94

Andhra Pradesh

60.08

West Bengal

33.07

Maharashtra

42.96

Madhya Pradesh

62.22

Rajasthan

61.43

Gujarat

47.9

13

Odisha

50.03

Uttar Pradesh

54.64

Punjab

31.97

Madhya Pradesh

42.34

Telangana

58.01

Bihar

55.27

Haryana

41.93

14

Bihar

48.24

Goa

52.88

Andhra Pradesh

30.5

Gujarat

41.63

Goa

46.31

Chhattisgarh

47.61

Rajasthan

41.43

15

Haryana

39.33

Bihar

49.76

Jharkhand

27.56

Haryana

40.38

Haryana

38.48

Odisha

43.43

Madhya Pradesh

36.55

16

Goa

37.71

Punjab

47.26

Bihar

18.69

Punjab

36.36

Jharkhand

27.83

Haryana

35.35

Goa

31.75

17

Punjab

29.34

Telangana

45.35

Haryana

16.82

Jharkhand

30.05

Odisha

27.42

Punjab

26.34

Punjab

24.87

18

Jharkhand

27.73

Jharkhand

42.3

Goa

6.63

Goa

26.88

Punjab

8.2

Jharkhand

24.72

Jharkhand

16.47

Northeastern / Hilly Area States

1

Tripura

57.58

Uttarakhand

70.95

Sikkim

42.59

Tripura

59.16

Himachal Pradesh

70.06

Himachal Pradesh

83.68

Tripura

70.69

2

Himachal Pradesh

53.17

Tripura

66.5

Assam

28.66

Himachal Pradesh

48.41

Assam

65.12

Tripura

76.82

Assam

57.14

3

Uttarakhand

49.11

Sikkim

65.27

Himachal Pradesh

23.01

Uttarakhand

47.11

Uttarakhand

60.49

Assam

71.96

Uttarakhand

52.72

4

Assam

49.06

Himachal Pradesh

62.22

Tripura

21.5

Sikkim

43.5

Tripura

52.22

Uttarakhand

56.02

Himachal Pradesh

39.41

5

Sikkim

43.81

Assam

54.04

Uttarakhand

16.68

Assam

34.06

Sikkim

31.42

Sikkim

53.23

Sikkim

34.94

6

Arunachal Pradesh#

17.96

Arunachal Pradesh#

41.5

Arunachal Pradesh#

12.7

Manipur#

13.17

Manipur#

21.4

Arunachal Pradesh#

37.4

Manipur#

28.75

7

Manipur#

17.13

Manipur#

34.05

Manipur#

11.23

Arunachal Pradesh#

6.83

Arunachal Pradesh#

5.74

Manipur#

3.75

Arunachal Pradesh#

22.56

Union Territories

1

Jammu and Kashmir

27.85

Andaman &Nicobar Islands

55.21

Jammu and Kashmir

11.88

Puducherry

16.16

Lakshadweep#

39.53

Jammu and Kashmir

55.08

Andaman &Nicobar Islands

45.73

2

Andaman &Nicobar Islands

27.15

Lakshadweep#

31.42

Ladakh

11.08

Jammu and Kashmir

13.29

Jammu and Kashmir

36.97

Andaman &Nicobar Islands

54.82

Jammu and Kashmir

39.76

3

Lakshadweep#

18.32

Jammu and Kashmir

23.07

Lakshadweep#

10.36

Andaman &Nicobar Islands

9.09

Dadra & Nagar Haveli and Daman & Diu#

31.69

Ladakh

29.32

Puducherry

29.33

4

Ladakh

16.18

Ladakh

22.21

Puducherry

4.63

Dadra & Nagar Haveli and Daman & Diu#

5.45

Ladakh

25.25

Lakshadweep#

15.18

Lakshadweep#

28.13

5

Puducherry

16.16

Dadra & Nagar Haveli and Daman & Diu#

22.06

Andaman &Nicobar Islands

4.5

Lakshadweep#

3.99

Puducherry

21.49

Puducherry

13.75

Ladakh

27.43

6

Dadra & Nagar Haveli and Daman & Diu#

13.62

Puducherry

9.31

Dadra & Nagar Haveli and Daman & Diu#

0

Ladakh

0

Andaman &Nicobar Islands

20.94

Dadra & Nagar Haveli and Daman & Diu#

8.57

Dadra & Nagar Haveli and Daman & Diu#

24.91

 

National Average

43.89

 

54.29

 

29.18

 

37.04

 

50.96

 

54.63

 

47.51

Source: Report titled “Status of Devolution to Panchayats in States - An Indicative Evidence-Based Ranking, 2024”

Note: #States for which previous data is used

This information was given by Union Minister Shri Rajiv Ranjan Singh alias Lalan Singh in a written reply in Lok Sabha on 21st July 2026.

***

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