Standing Committee on Rural Development and Panchayati Raj Report

Standing Committee on Rural Development and Panchayati Raj Report: Key Observations and Recommendations

The committee's report highlights a modest increase in the Budget Estimates (BE) allocation for 2025-26, compared to the 2024-25 allocation.

Key Observations:

1. Budget Estimates (BE) vs. Revised Estimates (RE):
   A continuous trend has been observed where the BE is lower than the RE, mainly due to the demand-driven nature of schemes. The report recommends that States ensure timely submission of fund demands and fully utilize the allocated budgets.

2. Panchayats Extension to Scheduled Areas (PESA) Act, 1996:
   The effective implementation of the PESA Act remains a challenge due to low public awareness and lack of sensitization. The report suggests focusing on action-oriented capacity building and developing a robust monitoring framework.

3. Support Staff Shortage:
   There is a severe shortage of support staff, for example, in Bihar, where one official manages 5 to 6 Gram Panchayats. The committee recommends introducing digital governance initiatives to reduce workload and improve service delivery.

4. Tied and Untied Grants:
   The current allocation of tied grants (60%) is restrictive, while untied grants (40%) can be used for local needs. The report proposes merging tied and untied grants to increase flexibility for local bodies.

5. Delay in Panchayat Elections:
   Delays in conducting panchayat elections in various states, such as in Karnataka (2021), have been noted. The report stresses the need for timely elections as mandated by the 73rd Constitutional Amendment.

6. Revenue Generation by Panchayats:
   Panchayats remain heavily reliant on government grants. The committee recommends empowering panchayats to generate their own revenues through property taxes, user fees, and other local levies.

7. Revamped Rashtriya Gram Swaraj Abhiyan:
   The scheme has seen limited uptake, with 14 out of 34 States/UTs not receiving any funds for FY 2024-25. The committee calls for measures to ensure the timely submission of requisite documents by States for the release of funds.

8. SVAMITVA Scheme:
   The Ministry has failed to achieve its physical targets under the Survey of Villages and Mapping with Improvised Technology in Village Areas (SVAMITVA) scheme, with no progress in Bihar. The report recommends developing a concrete action plan and setting realistic targets for implementation.

Recommendations:

• Ensure timely submission of fund demands by States.
• Focus on capacity-building programs and robust monitoring for better implementation of schemes.
• Introduce digital governance initiatives to streamline processes and improve efficiency.
• Merge tied and untied grants to allow greater flexibility for local needs.
• Strengthen efforts to empower panchayats to generate their own revenue.
• Revamp schemes like Rashtriya Gram Swaraj Abhiyan for more effective fund distribution.
• Set clear targets and action plans for the successful implementation of the SVAMITVA scheme.

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