Panchayati Raj · Local Governance

Panchayati Raj Institutions were strengthened by the 73rd Constitutional Amendment in 1993. Local government remains a State subject, and Panchayats work under each State's Panchayati Raj Act. Article 280(3)(bb) provides the basis for the Union Finance Commission to recommend grants that supplement Panchayat resources. The Fourteenth Finance Commission awarded ₹2,00,292.20 crore for 2015-16 to 2019-20, which a 2015 release described as more than three times the grant of the Thirteenth; unlike the Thirteenth, it was for Gram Panchayats only.

On National Panchayati Raj Day, 24 April 2020, the Ministry launched eGramSwaraj, a single portal for Panchayat planning, accounting and payments. Plan uploads have stayed above 96% of Gram Panchayats:2,55,042 Gram Panchayats (97.25%) for 2023-24, 2,55,638 (97.35%) for 2024-25 and 2,55,262 (96.54%) for 2025-26. On 24 April 2026 the Ministry released the Panchayat Advancement Index 2.0 for FY 2023-24, a report card for each Gram Panchayat based on 150 indicators. Participation rose to 97.30%, from 80.79% in the first edition.

Each year Gram Panchayats prepare a Gram Panchayat Development Plan through Gram Sabhas and upload it on eGramSwaraj. Fifteenth Finance Commission grants reach States in two instalments a year, and States must pass them to Panchayats within ten working days or pay interest. Untied grants can be spent on needs under the 29 subjects of the Eleventh Schedule, except salaries; tied grants go to drinking water and sanitation. Under the revamped Rashtriya Gram Swaraj Abhiyan, approved on 13 April 2022 with an outlay of ₹5,911 crore, 1,23,37,506 participants were trained between 2022-23 and 31 July 2025.

The Sixteenth Finance Commission has recommended ₹4,35,236 crore for rural local bodies for 2026–31. Its tied basic grant, ₹1,74,094 crore, is meant for sanitation and solid waste management and/or water management, and it stresses that local bodies should raise their own resources. By February 2026, 2,24,379 participants had been trained under an own-source-revenue module developed with IIM Ahmedabad. For 2021-26, ₹14,922.66 crore of the Fifteenth Finance Commission's rural allocation was not released because States or Panchayats did not meet the conditions. A 2025 Ministry report found that devolution to Panchayats rose from 39.9% to 43.9% between 2013-14 and 2021-22.

₹2,00,292.20 crore Fourteenth Finance Commission grants (2015-16 to 2019-20). ₹2,97,555 crore Fifteenth Finance Commission grants (2020-21 to 2025-26). ₹4,35,236 crore recommended by the Sixteenth (2026–31). 24.04 lakh elected representatives, 49.75% women (Apr 2026). 2,55,262 Gram Panchayat Development Plans uploaded for 2025-26. 3,635 Front Runner Gram Panchayats in PAI 2.0. Sources: Ministry of Panchayati Raj via PIB (Rajya Sabha replies of 24 Mar and 22 Jul 2026; Basic Statistics of Panchayati Raj Institutions 2025; PAI 2.0 report).