Punjab Trails in Panchayat Funding: A Devolution Review

The central government has no role in devolving funds to Panchayati Raj Institutions; this responsibility lies with the states. Punjab's performance in this respect is below the national average. The Ministry of Panchayati Raj has released a report assessing the status of devolution across states, highlighting Punjab's poor standing.

In a recent session of the Rajya Sabha, the government clarified that the central government plays no part in the devolution of funds to Panchayati Raj Institutions (PRIs). Instead, the states bear full responsibility, with Punjab notably lagging in performance compared to the national average.

Minister of State for Panchayati Raj, S P Singh Baghel, underscored during the Question Hour that Punjab, ranking 18th among the reviewed states, has a critical need to improve its panchayat funding processes. He explained that while funds are transferred by the central government, the actual distribution is managed at the state level.

A report titled 'Status of Devolution to Panchayats in States - An Indicative Evidence-Based Ranking, 2024', published by the Ministry, evaluates devolution effectiveness based on several dimensions. The findings emphasize Punjab's deficiencies, urging an enhancement of roles to bolster grassroots democracy.