Ailing panchayats
Compromise on fund allocation unacceptable
Updated At : 06:54 AM Jul 31, 2025 IST
Financial and administrative empowerment of panchayats can contribute in a big way to the country’s inclusive and sustainable development. File photo
The world’s fastest-growing major economy is apparently giving a raw deal to rural local bodies, which are the pillars of grassroots governance. The Standing Committee on Rural Development and Panchayati Raj has expressed concern over the “steady decline” in the allocation of funds to Panchayati Raj Institutions (PRIs), as reflected in Union Budgets in recent years. The panel has urged the Centre to ensure on priority that village bodies get adequate performance-linked funds so that they can effectively discharge their duties. Failure to do course correction would strike at the root of fiscal decentralisation enshrined in the 73rd Amendment, which granted much-needed constitutional status to PRIs over three decades ago.
