Question : Funding of Gram Panchayats

(a) the efforts made by the Government to review the functioning of Gram Panchayats during the last three years;
(b) whether any efforts have been made to provide more basic services in the Block and District Panchayats of the country;
(c) if so, the details thereof;
(d) if not, the reasons therefor; and
(e) whether there is any mechanism to monitor developmental activities at Block and District Panchayat levels, if so, the details thereof?

Answer given by the minister

MINISTER OF STATE IN THE MINISTRY OF PANCHAYATI RAJ
(SHRI PARSHOTTAM RUPALA)
(a) The Ministry of Panchayati Raj (MoPR) regularly reviews the functioning of Panchayats including the Gram Panchayats through studies, periodic review meetings with Principal Secretaries/Ministers of Panchayati Raj Department of States, video conferences and visits to the States by the officers of the Ministry. MoPR also regularly reviews the status of devolution of funds, functions and functionaries to Panchayats through assessment by an Independent Agency.

(b) to (d) Under Fourteenth Finance Commission (FFC) award (2015-20) grants to the tune of Rs. 2,00,292.20 crore have been allocated to duly constituted Gram Panchayats only for delivery of basic services within the functions assigned to them under the relevant legislations. The allocation is more than three times the allocation under the Thirteenth Finance Commission award. The FFC has not recommended any grant for District and Intermediate (Block/Mandal) Panchayats. The State Governments are expected to take care of the needs of the District and Intermediate Panchayats and it is incumbent upon the State Governments to utilize the enhanced fiscal space made available to them by the FFC on account of higher devolution from 32% to 42% of the Centre’s net tax receipts. The State Governments are also expected to transfer certain percentage of their own tax and non-tax revenues to local bodies based on the recommendations of State Finance Commissions.



(e) Monitoring development activities at Block and District Panchayat levels is undertaken in accordance with schematic guidelines. Further, the States, where the constitutional provisions of the Panchayats apply, have also set up empowered committees at State, District and Block level for monitoring and facilitation of convergent planning by the Gram Panchayats under respective Gram Panchayat Development Plan guidelines. Furthermore, under e-Panchayat, a Mission Mode Project (MMP) is being implemented by MoPR, wherein a suite of core common software applications (Panchayat Enterprise Suite) has been developed to address various aspects of Panchayats’ functioning including planning, budgeting, implementation, accounting, monitoring, social audit and delivery of citizen services like issue of certificates, licences, etc. These web-based applications, inter alia, enable monitoring of development works at block and district levels.

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