Press Information Bureau
Government of India
Ministry of Panchayati Raj
22 DEC 2021 3:50PM by PIB Delhi
Devolution of Power and Funds to Panchayati Raj Institutions (PRIS)

Article 243G of the Constitution of India 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, 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 included in the Eleventh Schedule.  The State legislatures are to consider the 29 subjects illustratively set out in the Eleventh Schedule for devolution to the Panchayats. The performance of the Panchayats depends on the extent of powers and resources devolved to them, which varies from State to State. As ‘local government’, which includes Panchayats, is a State subject, Ministry of Panchayati Raj has been advocating to the States for increased devolution of powers to the Panchayats. Similarly, by successive Finance Commissions, more funds have been provided to the States for distribution among Panchayati Raj Institutions (PRIs) as under:-


  1. Tenth Finance Commission (1995-2000)


Rs. 4380.93 crore

  1. Eleventh Finance Commission(2000-2005)


Rs. 8000.00 crore

  1. Twelfth Finance Commission (2005-2010)


Rs. 20,000.00 crore

  1. Thirteenth Finance Commission (2010-15)


Rs. 63,050.00 crore

  1. Fourteenth Finance Commission(2015-2020)


Rs. 2,00,292.20 crore

  1. Fifteenth Finance Commission(2020-2026)


Rs. 2,97,555.00 crore

As the devolution of powers to Panchayats is within the purview of States, no request is required to be made by them to the Government of India. Regarding allocation of funds, in this regard, Finance Commission, prior to making recommendations holds detailed discussion with stakeholders, including all States and takes into consideration their suggestions in its recommendations.

A Committee was constituted under the chairmanship of Vice Chairman, NITI Aayog for restructuring of Rashtriya Gram Swaraj Abhiyan (RGSA) to address the challenges faced by the rural local bodies and increased fund flow to Gram Panchayats. Based on the recommendations of the Committee, a revamped Centrally Sponsored Scheme of RGSA was prepared for strengthening of PRIs for the period 2018-2019 to 2021-22.

This information was given by Union Minister of State for Panchayati Raj Shri Kapil Moreshwar Patil in a written reply in Rajya Sabha today.