Agriculture and Rural Development Panchayati Raj

Empower Panchayati Raj Institutions with extensive devolution of the 3 Fs - Functions, Functionaries, and Funds.

In Progress
Last Updated: Friday 05 January 2018
Tuesday 24 February 2015Press Information Bureau

Functions and Functionaries

Panchayats being ‘Local Bodies’ is a State subject mandated under Part IX and List II  (State List) of Seventh Schedule (Article 246) of the Constitution of India. The Panchayati  Raj system has been structured according to the relevant provisions in the Constitution. Under  Article 243G of the Constitution, State Legislatures are to endow, to the Panchayats with  powers and authority to enable them to function as institutions of self-governments. Article  243G allows discretion to the States in the matter of devolution of powers to Panchayats and  States vary significantly in the extent to which they have devolved powers to the Panchayats  to plan, implement and monitor schemes for economic development and social justice.

The Ministry of Panchayati Raj conducts an annual study to assess the extent of  devolution of powers to various tiers of Panchayats. States have been encouraged to devolve  powers (Functions, Functionaries and Finances) to Panchayati Raj Institutions (PRIs) through  advisories and incentivization of States that devolve most powers to PRIs.


The Fourteenth Finance Commission (FC-XIV) has recommended devolution of grants to the tune of Rs. 2,00,292.20 crores to Gram Panchayats for the award period 2015-20. This amount is more than three times the grant of the 13th FC. The grants are intended to be used to improve the status of basic services including water supply, sanitation including seepage management, sewerage and solid waste management, storm water drainage, maintenance of community assets, maintenance of roads, footpaths and street-lighting, and burial and cremation grounds.

Vaada Raha Note: With the acceptance of the FC-XIV recommendations, the Government has fulfilled the promise of empowering one 'F' - Funds. Information pertaining to the annual study conduct by the Ministry is not readily available, but access to the same has already been requested and this promise will be updated as and when it is received.

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