Ministry of Panchayati Raj today organised a National Workshop of State Panchayati Raj Ministers in New Delhi today to deliberate on the recommendations of the Sixteenth Finance Commission.

 

The Ministry informed that four lakh 35 thousand 236 crore rupees have been recommended for Rural Local Bodies under the 16th Finance Commission, marking an increase of around 84 percent over the comparable five year allocation under the 15th Finance Commission. It added that as India advances towards Viksit Bharat, financially empowered, digitally enabled and accountable Panchayats will play an increasingly important role in delivering inclusive and sustainable development.  

 

Talking to the media, Union Minister of Panchayati Raj Rajiv Ranjan Singh (Lalan Singh) said that the 16th Finance Commission has proposed 80 per cent basic grants for Panchayats and 20 per cent performance-based grants.

 

Mr Singh said that the workshop was aimed at preparing states to effectively implement the Commission’s recommendations and enable them to maximise the benefits of the performance-linked grants. He added that Panchayati Raj is a State subject under the 73rd Constitutional Amendment, and close cooperation between the Centre and the states is essential to achieve these objectives. Mr Singh said that Panchayati Raj Ministers from 18 states participated in the workshop.

 

The Ministry said that 2.76 lakh Rural Local Bodies are covered under the recommendations of the 16th Finance Commission. It said the Commission is focusing on enhancing Own Source Revenue, transparency and digital governance to strengthen Panchayats and enable them to progressively become financially self-reliant while improving public service delivery.