Devolution of Funds under Panchayati Raj System

On 29th July 2025, the Standing Committee on Rural Development and Panchayati Raj (2024-25) presented to Lok Sabha the Fifteenth Report on ‘Devolution of Funds under Panchayati Raj System’.

Concerns Raised by the Committee

Decline in Fund Allocation to RLBs

  • There has been a steady decline in the allocation of funds to Rural Local Bodies (RLBs) in recent years.
  • This trend undermines the principle of fiscal decentralization established through the 73rd Constitutional Amendment.

Reduced Untied Grants and Scheme-based Transfers

  • The developmental role of Panchayati Raj Institutions (PRIs) is being restricted due to reduced untied grants and scheme-based transfers.
  • Untied ....
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