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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