Funds for Panchayats

Panchayats are functioning in States/UTs to which provisions of Part IX of Constitution applies, except in Jharkhand. J&K has its own Panchayati Raj Act but elections to Panchayats have not been held.

In the Constitution, under Article 243G, State Legislatures are to endow Panchayats with such powers and authority as may be necessary to enable them to function as institutions of self-government and to plan and implement schemes for economic development and social justice including those in relation to matters listed in the Eleventh Schedule and under Article 243H authorize Panchayats to collect taxes, duties etc. and provide for grants in aid. As per the Constitution, the responsibility of devolving appropriate funds, functions and functionaries (3Fs) to Panchayats vests with States and States vary in the extent to which they have devolved the 3 Fs.

Ministry of Panchayati Raj has supported States in Activity Mapping to systematically delineate activities to be performed by various tiers of Panchayats across subjects; issued guidelines on devolution of functions, funds and functionaries; incentivized States to devolve 3Fs under the Panchayat Empowerment Accountability Incentive Scheme (PEAIS); and held discussions and reviews with States to devolve powers to Panchayats.

This information was given by the Union Minister of Panchayati Raj Dr. C.P. Joshi in reply to a written question in the Rajya Sabha today.

(Release ID :61376)