MoPR Accelerates Panchayat Digitalisation, Fiscal Devolution & Revenue Reform for Stronger Local Governance
SDG 16: Peace, Justice & Strong Institutions | SDG 11: Sustainable Cities & Communities
Institutions: Ministry of Panchayati Raj (MoPR)
India’s rural governance system is undergoing a coordinated modernisation push that brings together four interconnected developments: digitalisation of Panchayat operations, strengthened capacity-building under RGSA, improved financial devolution through 15th Finance Commission grants, and new pathways for Panchayats to enhance their own-source revenue. Collectively, these measures represent a national strategy to professionalise and modernise Panchayati Raj Institutions (PRIs).
Under the e-Panchayat Mission Mode Project, the government is expanding the digital governance architecture with e-GramSwaraj as a unified platform for planning, budgeting, accounting, work monitoring and real-time payments through PFMS. Complementary tools—including AuditOnline, Gram Sabha recording applications and dashboard-based monitoring—aim to strengthen transparency, improve documentation and reduce administrative leakages across Panchayat tiers.
Supporting this shift, the Rashtriya Gram Swaraj Abhiyan (RGSA) is strengthening institutional capacity through structured training programmes for elected representatives and Panchayat functionaries. States and UTs are receiving support for upgrading physical and ICT infrastructure—new Panchayat Bhawans, computer systems and connectivity—to ensure local bodies can operate effectively within the expanding digital ecosystem.
Parallelly, financial devolution under the 15th Finance Commission continues to flow to Rural Local Bodies in both tied and untied forms. Combined with digital financial-management tools, this strengthens accountable utilisation, eases audit processes and allows Panchayats to manage funds with greater procedural clarity and real-time visibility.
To advance fiscal self-reliance, the Ministry has established a Panchayat Revenue Enhancement Cell (OSR Cell) and launched the SAMARTH Panchayat Portal to digitise tax and non-tax revenue administration. These tools maintain registers, track revenue flows and streamline collections—laying a foundation for autonomous, development-oriented Panchayats. To incentivise leadership, the newly introduced Atma Nirbhar Panchayat Special Award (ANPSA) will recognise Panchayats that demonstrate progress in own-source revenue mobilisation and fiscal independence.
Taken together, these developments reflect a multi-pronged transformation agenda for Panchayati Raj—combining digital reforms, fiscal empowerment, capacity-building and performance incentives to build accountable, transparent and self-reliant grassroots institutions.
Policy Relevance:
The modernisation of PRIs is central to India’s decentralisation agenda. By integrating digital workflows, strengthening institutional capabilities and enhancing fiscal autonomy, the reforms address long-standing governance bottlenecks—poor documentation, weak financial controls and limited local autonomy. The approach supports more responsive development planning, strengthens vertical accountability, and enables Panchayats to take on larger roles in service delivery, infrastructure management and local economic development.
Relevant Question for Policy Stakeholders:
How can states institutionalise long-term technical support, continuous training and data-governance protocols so that Panchayats fully leverage digital tools and progress toward sustainable fiscal autonomy?
Follow the full news here:
https://www.pib.gov.in/PressReleasePage.aspx?PRID=2197541®=3&lang=1 https://www.pib.gov.in/PressReleasePage.aspx?PRID=2197540®=3&lang=1 https://www.pib.gov.in/PressReleasePage.aspx?PRID=2197537®=3&lang=1 https://www.pib.gov.in/PressReleasePage.aspx?PRID=2197538®=3&lang=1