(a) the norms and rules governing the utilisation of funds allocated to Panchayati Raj
Institutions(PRIs) under different schemes;
(b) whether the funds allocated to the States under different schemes have been fully
utilised by them;
(c) if not, the reasons therefor, State-wise; and
(d) the action taken by the Government to ensure full utilisation of funds allocated under
Panchayati Raj Scheme?
MINISTER OF PANCHAYATI RAJ (SHRI V.KISHORE CHANDRA DEO)
(a) to (d) Under the Rajiv Gandhi Panchayat Sashaktikaran Abhiyan (RGPSA), grants-in-aid
is provided to State Governments on the basis of approved State Plans to strengthen
Panchayats. RGPSA has become fully operational in 2013-14. Implementation of the scheme is
followed up. Under the Backward Regions Grant Fund (BRGF) Programme, untied grants are
released to the State Governments for development of basic infrastructure facilities and for
capacity building of Panchayats/Gram Sabhas in the backward districts/regions. For availing
grants from BRGF, the States/ districts are required to furnish district plans consolidated
by the District Planning Committees and utilisation certificates, progress reports and audit
reports for the grants availed earlier.
The main reasons for underutilisation of funds are delay in release of funds by the States to
the local bodies, procedural delays in preparation and implementation of Plans and delay in
reporting the progress of utilisation of the grants by the States. To ensure expeditious
utilization of grants, penal interest is to be paid if transfer of funds is delayed for more
than 15 days from the Consolidated Fund of the States to the implementation entities (IEs).