Lok Sabha Question No. 1114 (UNSTARRED), answered on 2017-12-21
Subject: Funding of Gram Panchayats
Ministry: PANCHAYATI RAJ
Asked by: (SMT.) RATNA DE(NAG)

## GOVERNMENT OF INDIA MINISTRY OF PANCHAYATI RAJ LOK SABHA UNSTARRED QUESTION NO. 1114 TO BE ANSWERED ON 21/12/2017

## Funding of Gram Panchayats

## 1114. DR RATNA DE (NAG):

Will the Minister of PANCHAYATI RAJ be pleased to state:

(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

## 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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