Lok Sabha Question No. 2789 (UNSTARRED), answered on 2025-03-18
Subject: Development of Gram Panchayats
Ministry: PANCHAYATI RAJ
Asked by: Shri Devesh Shakya

## GOVERNMENT OF INDIA MINISTRY OF PANCHAYATI RAJ

## LOK SABHA UNSTARRED QUESTION NO. †2789

ANSWERED ON: 18.03.2025

## DEVELOPMENT OFGRAM PANCHAYATS

## † 2789: SHRI DEVESH SHAKYA

## Will the Minister of PANCHAYATI RAJ be pleased to state:

- (a) the details of the funds allocated by the Government to the State Government of Uttar Pradesh for development of Gram Panchayats under various schemes during last three years, scheme and Gram Panchayat-wise particularly for Gram Panchayats of Etah, Kasganj parliamentary constituency;
- (b) whether utilization of financial assistance received by the State Government of Uttar Pradesh has been made and in particular for Etah-Kasganj; and
- (c) if so, the details of utilization and expenditure of funds and related development works?

## ANSWER

## THE MINISTER OF STATE FOR PANCHAYATI RAJ

## (SHRI KAPIL MORESHWAR PATIL)

(a) to (c) Panchayat is a State subject and the Ministry of Panchayati Raj (MoPR) supplements and complements the efforts of States Governments, including fund support under the schemes as well as grants under Finance Commissions towards functioning of the Panchayati Raj Institutions (PRIs) and development thereof. Currently, Fifteenth Finance Commission (XV FC) Grants are provided to the Rural Local Bodies (RLBs) in all the three tiers of Panchayats and Traditional Bodies in 28 States.

The details of funds released to the state Government of Uttar Pradesh for development of Gram Panchayats under the (i) Fifteenth Finance Commission (ii) the Scheme of Rashtriya Gram Swaraj Abhiyan (RGSA) for capacity building of the elected representatives and their

functionaries of the Panchayati Raj Institutions (PRIs), and (iii) Incentivization of Panchayats(IoP) under which awards including financial incentives are given to the best performing Panchayats in recognition of their good work for improving delivery of services and public goods during the last three years are as under:

## (Rupees in crore)

| Year    | Central Finance Commission   |    RGSA |   IoP |
|---------|------------------------------|---------|-------|
| 2021-22 | 7,208.00                     |  83.08  |  4.78 |
| 2022-23 | 7,466.00                     |  85.05  |  3.83 |
| 2023-24 | 7,547.00                     |  84.126 |  1.75 |
| Total   | 22,221.00                    | 252.256 | 10.36 |

The Central Finance Commission grants are not directly released to the Panchayats, but the States and the States are mandated to release the funds to all tiers of the Panchayat. Also, under the scheme of RGSA, funds are not provided directly to the Districts or Gram Panchayats and released to the States that spends for the Panchayats for various purposes as per the scheme objectives. Under IoP scheme, Funds are directly released to the Panchayats with effect from 2021-22 and in 2021-22, Rs.8 lakh was released to Gram Panchayat Khawa in the Etah District.

The fund arrangement under the Central Finance Commission and under the schemes of the Ministry are meant for all Panchayats including the Panchayats in Etah and Kasganj parliamentary Constituency.

XV FC Grants have been utilised for the felt needs of basic facilities under the 29 subjects enshrined in the XI schedule, except for salaries and other establishment costs. The Tied Grants are to be utilized for basic facilities, specifically, for drinking water and sanitation. Funds under RGSA scheme has been utilised for capacity building of the elected representatives and their functionaries of the PRIs and for infrastructure like Gram Panchayat Bhawan, computers and peripherals. The funds under IoP scheme has been utilised as financial incentives to the best performing Panchayats in recognition of their good work for improving delivery of services and public goods selected under the National Panchayat Award competitions. The fund utilisation information can also be accessed at eGramSwaraj portal of the Ministry.

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