New Delhi, March 11 The central government has no role in the devolution of funds to Panchayati Raj Institutions (PRIs), and it is only the states that do so. The performance of Punjab in this regard is lower than even the national average, the government informed the Rajya Sabha on Wednesday.
Responding to supplementary questions during Question Hour, Minister of State for Panchayati Raj S P Singh Baghel said that monitoring of funds for PRIs revealed that among the 18 states reviewed, Punjab had performed poorly.
"Nothing happens from Delhi; it is only the states that have to devolve funds to panchayats. Delhi only transfers funds, and the states have to devolve funds to panchayats. The central government only does monitoring, training, and seminars for giving funds to panchayats," the minister said in response to a question from AAP MP from Punjab, Raghav Chadha.
Baghel said that in the 13th Finance Commission, Rs 65,000 crore was allocated to states for devolution to PRIs, while in the 15th Finance Commission, this figure was Rs 2.97 lakh crore.
He added that in the 16th Finance Commission, Rs 4.4 lakh crore has been allocated for devolution, which is nearly double the previous amount.
"As far as monitoring is concerned, if any state is in a poor state, it is Punjab. In the Panchayati Raj Index (PRI), of the total of 18 states, Punjab is at the 18th position... Punjab's situation in all parameters is lower than even the national average," Baghel told the House.
In his written reply, Minister for Panchayati Raj Rajiv Ranjan Singh said that the ministry reviews the performance of panchayats from time to time through studies, review meetings, field visits, video conferencing, and Information Technology applications.
"The Ministry released a report titled 'Status of Devolution to Panchayats in States - An Indicative Evidence-Based Ranking, 2024' in February 2025 to assess the effectiveness of devolution and the role of local governments in strengthening grassroots democracy," he said.
"This report presents the Devolution Index, which provides overall scores and ranks for all states/Union Territories covered under Part-IX of the Constitution, based on six identified dimensions: Framework, Functions, Finances, Functionaries, Capacity Enhancement, and Accountability," he added.