APPSC GRP 1 2026

Panchayati raj
Meaning and constitutional position

• Panchayati raj in India refers to the system of rural local self-government.

• Established by state legislatures, but constitutionalised through the 73rd Constitutional

Amendment Act, 1992.

• Objective: build grass-root democracy and enable rural development.

• In the Seventh Schedule, State List – Entry 5 deals with local government → states have the
power to create panchayats.

Evolution of Panchayati raj

Panchayati raj: committees, recommendations and constitutionalisation
Balwantrai Mehta Committee (1957)

• Appointed by Government of India in January 1957 to review the Community Development

Programme (1952) and National Extension Service (1953).

• Submitted report in November 1957; introduced the idea of democratic decentralisation,

later known as panchayati raj.

Key recommendations

1. Three-tier structure:

o Gram panchayat (village)

o Panchayat samiti (block)

o Zila parishad (district)

2. Direct elections to gram panchayat; indirect elections to panchayat samiti and zila parishad.

3. Entrust planning and development functions to these bodies.

4. Panchayat samiti = executive body; zila parishad = advisory, supervisory, coordinating body.

5. District collector to be chairman of zila parishad.

6. Genuine devolution of power and responsibility.

7. Adequate financial resources to panchayati raj institutions.

8. Systematic mechanism for future devolution.

• National Development Council accepted these recommendations in January 1958.

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• Allowed states flexibility in structure, but basic principles to remain uniform.

Adoption by states

• Rajasthan: first state to adopt Panchayati raj → launched on 2 October 1959 at Nagaur.

• Andhra Pradesh followed soon after in 1959.

• By mid-1960s, almost all states introduced the system, but with variations in:

o Number of tiers (2-tier, 3-tier, 4-tier)

o Powers of samiti vs parishad

o Tenure, finances, functions

o Existence of nyaya panchayats (judicial panchayats)

Examples of variations

• Rajasthan model → 3-tier, block-level samiti dominant.

• Maharashtra–Gujarat model → zila parishad dominant (district as unit of planning).

• Tamil Nadu → 2-tier system.

• West Bengal → 4-tier system.

Ashok Mehta Committee (1977–78)

• Appointed by Janata government (Dec 1977); report submitted August 1978 with 132
recommendations to revive panchayati raj.

• Main recommendations:

o Replace three-tier with two-tier system: zila parishad (district) and mandal
panchayat (cluster of villages; population ~15,000–20,000).

o District to be the first point of democratic decentralisation below the state.

o Zila parishad as executive body responsible for district-level planning and

implementation.

o Official political party role: permit active participation of political parties in panchayat
elections.

o PRIs should have compulsory taxation powers to mobilise own resources.

o Regular social audit by district agencies and legislators’ committees for funds targeted
to vulnerable groups.

o Restrictions on state supersession: if superseded, elections within six months.

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o Nyaya panchayats maintained as separate judicial bodies, presided by qualified

judges.

o Panchayat elections to be organised by chief electoral officer in consultation with the

Chief Election Commissioner.

o Transfer development functions and staff to zila parishad; voluntary agencies to be

mobilised.

o Minister for panchayati raj at state level recommended.

o Reservation for SCs/STs on population basis; constitutional recognition for PRIs

recommended.

• Outcome: Central action stalled after Janata fall; some states (Karnataka, West Bengal, Andhra
Pradesh) adopted select recommendations.

G.V.K. Rao Committee (1985) - review of rural development administration

• Found bureaucratisation of development programs; “grass without roots”.

• Emphasised district (zila parishad) pivotal role for planning and development.

• Recommendations:

o Assign planning, implementation and monitoring of rural development to PRIs,

especially at district level.

o Transfer some state-level planning functions to district planning units.

o Create District Development Commissioner as CEO of zila parishad, overseeing

development departments.

o Ensure regular elections to PRIs — noted frequent overdue polls in many states.

L.M. Singhvi Committee (1986)

• Task: concept paper on revitalisation of PRIs.

• Key recommendations:

o Constitutional recognition of PRIs (new chapter in Constitution).

o Strengthen Gram Sabha; reorganise village units to make gram panchayats viable.

o Establish nyaya panchayats for clusters of villages.

o Improve financial resources for village panchayats.

o Set up judicial tribunals in states to adjudicate election/dissolution disputes of PRIs.

Thungon Committee (sub-committee, 1988)

• Examined district political/administrative structure for district planning.

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• Recommendations:

o Constitutional recognition of PRIs.

o Three-tier system (village, block, district).

o Zila parishad as planning and development pivot.

o Fixed five-year tenure for PRI bodies; maximum supersession period six months.

o Prepare a detailed list of subjects for PRIs in Constitution.

o Reservation for SC/ST (population basis) and women.

o State finance commission in each state.

o Suggested district collector as CEO of zila parishad (note: contrasts with G.V.K.
Rao/Centre-for-PR emphasis).

Gadgil Committee (1988, Congress party)

• Recommended:

o Constitutional status for PRIs.

o Three-tier system, five-year term, direct elections at all three levels.

o Reservation for SC/ST and women.

o Empower PRIs to levy taxes and duties; set up state finance commissions for fiscal
devolution.

o State election commissions for conducting PRI elections.

• These recommendations fed into draft amendment proposals.

Path to constitutionalisation (political developments)

• Rajiv Gandhi (1989): introduced 64th Constitutional Amendment Bill (Lok Sabha passed,
Rajya Sabha did not) — faced opposition on centralisation fears.

• V.P. Singh (1990): renewed push; introduced fresh bill but fell with the government.

• P.V. Narasimha Rao (1991–92): modified the proposals to remove controversial elements and
introduced the bill that became the 73rd Constitutional Amendment Act, 1992.

• 73rd Amendment Act, 1992 — key features (brief):

o Part IX (Panchayats) added to Constitution; came into force 24 April 1993.

o Mandated three-tier structure (subject to state exemptions by size), regular elections

every five years, reservation for SC/ST and one-third reservation for women (later
increased in many states), Gram Sabha recognition, State Finance Commission,

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State Election Commission, and provisions for devolution of functions, funds and
functionaries (subject to state statutes).

• Post-amendment: States had to enact/modify laws to comply with constitutional provisions;

long-term impact: nationwide institutionalisation of PRIs, though implementation and extent of
devolution varied across states.

73rd Amendment Act, 1992

Introduction

• Added Part IX (Articles 243 to 243-O) titled The Panchayats.

• Added Eleventh Schedule with 29 subjects for Panchayats.

• Gave constitutional status to Panchayati Raj Institutions (PRIs).

• Implemented Article 40 (village panchayats as units of self-government).

• Came into force on 24 April 1993.

Significance

• Made PRIs justiciable—states now constitutionally obliged to follow.

• Elections and formation of PRIs no longer at the discretion of states.

• Introduced compulsory and voluntary provisions.

• Aimed to shift democracy from representative to participatory.

Gram Sabha

• Body of all registered voters in a village within a Panchayat area.

• State legislature defines its powers and functions.

Three-Tier System

• Mandatory: village, intermediate, district levels.

• States with population ≤ 20 lakh may skip the intermediate level.

Election of Members and Chairpersons

• All members at all three levels: direct elections.

• Chairperson:

o Village level: method decided by state legislature.

o Intermediate & district levels: elected indirectly from among elected members.

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Reservation

• SCs & STs: seats + chairperson offices in proportion to population.

• One-third seats reserved for women (including SC/ST women).

• One-third chairperson offices reserved for women.

• States may reserve seats for backward classes.

• Reservation for SCs/STs ends as per Article 334 (currently till 2030).

• Provision not applicable to Arunachal Pradesh (no SC population).

Duration of Panchayats

• Five-year term.

• Elections:

o Before expiry of term.

o Within six months of dissolution.

• If remaining term < 6 months → election not required.

• Reconstituted Panchayat serves remainder of original term.

Disqualification

• Based on:

o Laws applicable to state legislature elections.

o State-made laws.

• Minimum age allowed: 21 years.

State Election Commission (SEC)

• Conducts elections to Panchayats.

• Headed by State Election Commissioner, appointed by Governor.

• Removal same as High Court judge (Governor cannot remove independently).

Powers and Functions

• State legislature to devolve:

o Planning for economic development and social justice.

o Implementation of schemes.

o 29 subjects under Eleventh Schedule.

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Finances

• State legislature may:

o Authorise Panchayats to levy/collect taxes.

o Assign taxes to Panchayats.

o Provide grants-in-aid.

o Create Panchayat funds.

State Finance Commission

• Constituted every five years.

• Recommends:

o Distribution of financial resources.

o Taxes assigned to Panchayats.

o Grants-in-aid.

o Measures to strengthen finances.

• Report + action taken report laid before state legislature.

• Central Finance Commission supplements resources based on state SFC reports.

Applicability / Exemptions

• Applies to Union Territories (with modifications by President).

• Not applicable to:

o Nagaland, Meghalaya, Mizoram.

o Scheduled Areas & Tribal Areas (Fifth & Sixth Schedule).

o Hill areas of Manipur.

o Darjeeling Gorkha Hill Council area.

• Parliament extended provisions to Scheduled Areas through PESA Act, 1996.

Courts Barred

• No court interference in:

o Delimitation of constituencies.

o Allotment of seats.

• Election disputes only via election petitions as per state law.

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Eleventh Schedule – 29 Subjects

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Compulsory and Voluntary Provisions of the 73rd Amendment Act

Compulsory (Mandatory) Provisions
These must be included in all state Panchayati Raj laws.

1. Organisation of Gram Sabha in each village or group of villages.

2. Three-tier PRI structure – village, intermediate, district levels.

3. Direct elections to all seats at all three levels.

4. Indirect election of chairpersons at intermediate and district levels.

5. Voting rights for all directly and indirectly elected members including chairpersons.

6. Minimum age: 21 years to contest Panchayat elections.

7. Reservation for SCs and STs (seats + chairpersons) in proportion to their population.

8. One-third reservation for women, including SC/ST women (seats + chairpersons).

9. Five-year tenure; fresh elections within six months if dissolved.

10. State Election Commission for supervision and conduct of Panchayat elections.

11. State Finance Commission every 5 years to review financial position of Panchayats.

Voluntary (Discretionary / Optional) Provisions

These may be adopted by states as per their needs.

1. Empowering Gram Sabha with specific powers/functions.

2. Deciding the method of electing village Panchayat chairperson.

3. Representation of village Panchayat chairpersons in intermediate/district Panchayats.

4. Representation of intermediate Panchayat chairpersons in district Panchayats.

5. Representation of MPs and MLAs in Panchayats at various levels.

6. Reservation for backward classes (seats + chairpersons).

7. Giving Panchayats powers & authority to function as self-governing institutions.

8. Devolution of powers to prepare plans for economic development and social justice;
performing 29 functions in Eleventh Schedule.

9. Authorising Panchayats to levy, collect and appropriate taxes/duties/tolls/fees.

10. Assigning state taxes to Panchayats.

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11. Grants-in-aid to Panchayats from the state’s Consolidated Fund.

12. Creating Panchayat funds for crediting all their revenues and grants.

PESA Act (Provisions of the Panchayats — Extension to the Scheduled

Areas), 1996
Background & Applicability

• Part IX (Panchayats) of the Constitution did not automatically apply to Fifth Schedule
(Scheduled) Areas. Parliament may extend Part IX to these areas subject to
exceptions/modifications.

• Using that power Parliament enacted the PESA Act, 1996 to extend Panchayat provisions to
Scheduled Areas with safeguards and modifications.

• Ten states currently have Fifth Schedule Areas: Andhra Pradesh, Telangana, Chhattisgarh,
Gujarat, Himachal Pradesh, Jharkhand, Madhya Pradesh, Maharashtra, Odisha and Rajasthan.
States amended their Panchayati Raj Acts to comply.

Objectives

1. Extend Part IX to Scheduled Areas with suitable modifications.

2. Provide self-rule for tribal populations.

3. Promote village governance with participatory democracy — make Gram Sabha the focal point.

4. Evolve administrative arrangements consistent with tribal/traditional practices.

5. Safeguard and preserve tribal traditions, customs and cultural identity.

6. Empower Panchayats with specific tribal-sensitive powers.

7. Prevent higher-level Panchayats from usurping powers of Gram Sabhas and lower Panchayats.

Key Features / Provisions

• Conformity with customary law: State legislation for Panchayats in Scheduled Areas must
align with customary law, social and religious practices, and traditional community resource
management.

• Definition of village: A village may be a habitation or group of habitations/hamlets forming a

community managing its affairs per traditions.

• Gram Sabha: Every village must have a Gram Sabha consisting of registered voters for the
village-level Panchayat; Gram Sabha is competent to safeguard traditions, cultural identity,
community resources, and customary dispute resolution.

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• Gram Sabha powers:

o Approve plans, programmes and projects for social and economic development before
implementation by the Panchayat.

o Identify beneficiaries for poverty-alleviation and other schemes.

o Certify utilisation of funds for such plans/programmes (village Panchayats must obtain
this certification).

• Reservation:

o Reservation in Scheduled Areas in proportion to the population for whom reservation is

sought under Part IX.

o Reservation for STs shall be not less than one-half of total seats.

o All seats of Chairpersons of Panchayats at all levels shall be reserved for Scheduled
Tribes.

• Nomination:

o State government may nominate STs (if unrepresented) to intermediate/district

Panchayats, but nominations shall not exceed one-tenth of total elected members of
that Panchayat.

• Consultation & consent:

o Gram Sabha/Panchayats at appropriate level must be consulted before land

acquisition in Scheduled Areas for development, and before resettlement/rehabilitation
of affected persons.

• Local resource management:

o Minor water bodies’ planning and management to be entrusted to Panchayats.

o Recommendations of Gram Sabhas/Panchayats are mandatory for grant of prospecting

licence or mining lease for minor minerals, and for concessions for exploitation of
minor minerals by auction.

• Specific powers to Gram Sabha/Panchayats (state legislatures should ensure):

o Enforce/regulate prohibition or restriction on sale/consumption of intoxicants.

o Ownership and management of minor forest produce.

o Prevent alienation of tribal land; restore unlawfully alienated land of Scheduled Tribes.

o Manage village markets.

o Control over money-lending to Scheduled Tribes.

o Control over institutions and functionaries in social sectors.

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o Control local plans and local resources (including tribal sub-plans).

• Safeguards: State laws must ensure higher-level Panchayats do not usurp powers of Gram
Sabhas or lower Panchayats.

• Administrative pattern: State legislatures are advised to follow Sixth Schedule patterns while
designing district-level arrangements in Scheduled Areas.

• Transitional provision: Any inconsistent state law ceases to be in force one year after the Act
received Presidential assent; existing Panchayats continue until their term expires unless
dissolved earlier.

Finances of Panchayati Raj

Overview

• Part IX mainly provides structural empowerment, but the actual strength of PRIs depends on:

o Their financial autonomy, and

o Their capacity to generate own resources.

Major Sources of PRI Revenue (Second ARC)

1. Grants from Union Government

o Based on Central Finance Commission (CFC) recommendations under Article 280.

2. Devolution from State Government

o Based on State Finance Commission (SFC) recommendations under Article 243-I.

3. Loans/grants from State Government.

4. Programme-specific allocations

o Through Centrally Sponsored Schemes (CSS) and Additional Central Assistance.

5. Internal Resource Generation (IRG)

o Tax and non-tax revenue.

Key Financial Issues Identified by Second ARC

1. Inadequate Fiscal Empowerment by States

• PRIs’ own resources are meagre, even in progressive states like Kerala, Karnataka and Tamil
Nadu.

• Panchayats are heavily dependent on government grants.

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2. Weak Internal Resource Generation

• Reasons:

o Thin tax domain assigned to Panchayats.

o Panchayats themselves often reluctant to collect taxes.

3. Dependence on Grants

• Most grants (both Union and State) are scheme-specific, leaving minimal flexibility in
expenditure.

4. State Fiscal Stress Limits Devolution

• States facing tight finances are reluctant to devolve adequate funds to PRIs.

5. State Government Dominance in Key Sectors

• For essential Eleventh Schedule functions such as:

o Primary education

o Healthcare

o Water supply

o Sanitation

o Minor irrigation

• State Governments still implement programmes directly and bear expenditure.

• Thus PRIs hold responsibility without resources.

6. Importance of Own Resource Generation

• Own taxes give PRIs:

o Financial stability

o Greater accountability to their citizens

o Local participation in governance

7. Gram Panchayat Advantage

• Gram Panchayats have a wider tax domain, so their IRG is better than intermediate or district
Panchayats.

• The upper tiers depend mostly on:

o Tolls

o Fees

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o Other non-tax revenues

8. Limited Tax Powers of Intermediate & District Panchayats

• Confined to secondary areas:

o Ferry services

o Markets

o Water and conservancy services

o Registration of vehicles

o Cess on stamp duty

o Miscellaneous fees

9. Tax Powers of Village Panchayats

• Many taxes, duties, tolls and fees fall under Village Panchayats, such as:

o Property/house tax

o Profession tax

o Land tax/cess

o Vehicle tax/toll

o Entertainment tax/fees

o Licence fees

o Tax on non-agricultural land

o Cattle registration fee

o Sanitation/drainage/conservancy tax

o Water tax

o Lighting tax

o Education cess

o Tax on fairs and festivals

Reasons for Ineffective Performance of Panchayati Raj

Despite constitutional status under the 73rd Amendment Act, PRIs have not performed to
expectations. Key reasons, as noted in the government’s Roadmap for Panchayati Raj, include the
following:

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1. Lack of Adequate Devolution (3Fs)

• Many states have not devolved the three essentials — functions, funds, functionaries.

• Responsibilities assigned to PRIs are not matched by resources.

• SFC recommendations are often ignored or poorly implemented.

• Weak fiscal devolution weakens autonomy.

2. Excessive Control by Bureaucracy

• Gram Panchayats in many states remain subordinate to the bureaucracy.

• Sarpanches spend substantial time visiting Block offices for approvals and funds.

• This distorts their role as elected representatives and reduces local initiative.

3. Tied Nature of Funds

• Most grants are scheme-specific, giving little flexibility.

• Centrally-designed schemes are not always suitable across regions.

• This leads to either irrelevant projects or under-utilisation of funds.

4. Overdependence on Government Funding

• PRIs largely depend on Union and State grants; own-source revenues are minimal.

• Lack of own resource mobilisation reduces community oversight (e.g., fewer demands for
social audit).

5. Reluctance to Use Fiscal Powers

• Gram Panchayats possess powers to levy taxes on property, businesses, fairs, markets, and
services.

• Very few use these powers, citing difficulty in taxing members of their own community.

• Leads to lack of financial autonomy.

6. Weak Status of Gram Sabha

• Gram Sabha was intended as a tool for accountability and inclusion.

• Many state Acts do not clearly define Gram Sabha powers or procedures.

• No penalties for non-compliance by officials; meetings often poorly attended.

7. Creation of Parallel Bodies (PBs)

• Parallel Bodies (missions, committees, special purpose vehicles) bypass PRIs for “efficient”
implementation.

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• But they often suffer from corruption, political capture, and lack of accountability.

• Their superior resources overshadow PRIs and demoralise them.

8. Poor Infrastructure and Human Resource Base

• Many Gram Panchayats lack:

o Full-time secretaries

o Office buildings

o Databases for planning/monitoring

• Many elected representatives are semi-literate or illiterate.

• Lack of capacity-building and training weakens institutional performance.

Political Empowerment of Women through Panchayati Raj

Constitutional Basis
73rd Constitutional Amendment Act, 1992

• Added Part IX (Articles 243–243O)

• Constitutional status to Panchayats

• Minimum 33% reservation for women (including SC/ST women)

• Reservation in:

o Seats

o Chairperson posts

74th Constitutional Amendment Act, 1992

• Added Part IX-A (Municipalities)

• Similar reservation for women in Urban Local Bodies (ULBs)

Many states (Bihar, Rajasthan, Madhya Pradesh, Andhra Pradesh, etc.) → 50% reservation.

Present Status

• Around 14 lakh women representatives in PRIs (MoPR data 2024)

• Women constitute nearly 46–50% of PRI members in many states

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• India = Largest experiment in grassroots women’s political participation

Scope of Political Empowerment

1. Numerical Representation

• Increased political participation at grassroots

• Greater presence in Gram Panchayat, Panchayat Samiti, Zilla Parishad

• Leadership positions: Sarpanch, Mukhiya, Chairperson

Example:

• Bihar’s 50% reservation significantly increased women leadership roles.

2. Substantive Representation

Studies (Chattopadhyay & Duflo, 2004):

• Women-led Panchayats invested more in:

o Drinking water

o Sanitation

o Roads linked to daily needs

UN Women & World Bank findings:

• Women leaders prioritise:

o Health

o Education

o Nutrition

o Social welfare

3. Social Transformation

• Breaks patriarchal norms

• Role-model effect for girls

• Increased female participation in Gram Sabha

• Enhances confidence and public speaking skills

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Example:

• Kerala: Integration of Kudumbashree SHGs with Panchayat planning.

4. Inclusion of Marginalised Women

• Reservation extends to SC/ST women

• Promotes intersectional empowerment

• Greater visibility of marginalised voices

5. Leadership Pipeline

• Panchayats act as training ground

• Many women leaders later contest Assembly and Parliamentary elections

Challenges

1. Proxy Representation (Sarpanch Pati Issue)

• Male relatives exercise real control

• Weakens substantive empowerment

2. Capacity Constraints

• Low literacy in some regions

• Limited knowledge of:

o Budgeting

o Governance procedures

o Digital systems

• Inadequate training support

3. Fiscal Dependence

• Limited financial autonomy of PRIs

• Delayed fund release

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• Weak own-source revenue

Finance Commissions stress:

• Performance-based grants

• Transparency conditions

4. Patriarchal Resistance

• Social restrictions on mobility

• Gender discrimination

• Political intimidation in some areas

5. Urban Governance Constraints

• Weak devolution under 74th Amendment

• Commissioner-dominated system

• Weak ward committees

• Limited financial powers

State of Local Governance Report (2023):

• Urban local bodies less empowered compared to rural PRIs.

Measures to Enhance Women Empowerment

1. Capacity Building

• Mandatory induction training

• Digital literacy programmes

• Budget and planning workshops

• Leadership mentoring networks

2. Strengthening Fiscal Autonomy

• Proper activity mapping

• Timely devolution of funds

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• Encourage own-source revenue generation

3. Legal Safeguards

• Action against proxy governance

• Transparency and social audits

• Gender-sensitive grievance redressal

4. Strengthening Gram Sabha & Ward Committees

• Ensure women participation

• Gender-responsive budgeting

• Community mobilisation

5. Urban Reforms

• Empower ward committees

• Strengthen Metropolitan Planning Committees

• Integrate SHGs in urban governance

6. Political Party Reform

• Ticket allocation beyond reserved seats

• Encourage women leadership in party structure

Conclusion

Panchayati Raj has ensured:

• Descriptive representation (numbers)

• Partial substantive empowerment

However, true empowerment requires:

• Capacity

• Financial autonomy

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• Social acceptance

• Institutional strengthening

Shift needed from symbolic participation to transformative leadership.

APPSC GRP1 MAINS PYQ

Q. Discuss the scope and challenges involved in the political empowerment of
women through the Panchayat Raj. Briefly suggest on how to enhance women
empowerment in rural and urban local governance. (2023)
Q. Discuss the significance of the 73 rd Constitutional Amendment Act in
strengthening grassroots democracy in India. (2025)

16th Finance Commission (2026–31) – Grants-in-aid

The 16th Finance Commission has recommended ₹9.47 lakh crore as grants-in-aid to states for the
period 2026–31.

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Major Changes Compared to 15th Finance

Commission

The 16th FC has discontinued:

1. Revenue deficit grants

2. Sector-specific grants

3. State-specific grants

Thus, the focus is now concentrated on:

• Local body grants

• Disaster management grants

Grants for Local Bodies (₹7.91 lakh crore)

1. Rural Local Bodies – ₹4.4 lakh crore

2. Urban Local Bodies – ₹3.6 lakh crore

These grants are divided into:

• 80% Basic Grants

• 20% Performance-based Grants

Entry-Level Conditions (Mandatory for All Local

Bodies)

Grants will be released only if:

1. Local bodies are constituted as per the

Constitution

2. Provisional and audited accounts are published in the public domain

3. State Finance Commission is constituted on time

Basic Grants (80%)

• 50% Untied – Can be used at the discretion of local bodies

• 50% Tied – For:

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o Sanitation and solid waste management

o Water management

Performance Grants (20%)

Two components:

A. State Performance Grants

Released when the state meets minimum benchmark for:

• Transfers to local bodies from its own resources

B. Local Body Performance Grants

Linked to:

• Growth in own-source revenue

• Achievement of minimum targets set by the Commission

Special Components for Urban Local Bodies

1. Special Infrastructure Grant – ₹56,100 crore

• Tied to comprehensive wastewater management systems

• Applicable to cities with population 10–40 lakh (Census 2011)

• Focus: Urban environmental sustainability

2. Urbanisation Premium – ₹10,000 crore

One-time grant for:

1. Merger of peri-urban villages into urban local bodies

2. Formulation of a Rural-to-Urban Transition Policy

Objective:

• Planned urban expansion

• Reduction in governance fragmentation

• Strengthening urban planning

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