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Move To Boost Panchayat Funding

New Delhi: The Ministry of Panchayati Raj is set to organize a crucial National Workshop of State Panchayati Raj Ministers tomorrow, July 3, 2026, in New Delhi. The primary objective of the workshop is to deliberate on the recommendations of the Sixteenth Finance Commission, marking a significant step toward empowering grassroots governance in India.

Shri Sushil Kumar Lohani, Additional Secretary, Ministry of Panchayati Raj said that the event will be chaired by the Union Minister of Panchayati Raj and Fisheries, Animal Husbandry and Dairying, Shri Rajiv Ranjan Singh alias Lalan Singh. The workshop will also see the participation of Union Minister of State for Panchayati Raj, Prof. S. P. Singh Baghel, alongside State Panchayati Raj Ministers and senior administrative officials from across the country.

The core agenda centers on the allocations earmarked for the award period 2026–31. The Sixteenth Finance Commission has recommended a substantial devolution of 4.35 lakh crore rupees to Panchayati Raj Institutions (PRIs). Attendees will engage in extensive discussions regarding the Operational Guidelines for the implementation of these Rural Local Body (RLB) Grants, which were recently issued by the Department of Expenditure under the Ministry of Finance.

Key areas of focus during the deliberations will include the precise rules governing the release and utilization of the Finance Commission grants. State representatives and Union officials will examine compliance frameworks, grant release procedures, and the institutional preparedness required at the local level. Establishing efficient mechanisms to ensure timely and effective fund utilization by rural local bodies remains a top priority to further the goal of fiscal decentralization.

In alignment with the vision of the Sixteenth Finance Commission, the workshop will place a strong emphasis on reducing the dependence of rural local bodies on central transfers by boosting their financial self-reliance. This will involve strategies to enhance Own Source Revenue (OSR) mobilization at the panchayat level.

Additionally, the gathering will serve as an interactive platform for States and Union Territories to present successful case studies, air ground-level implementation challenges, and exchange actionable insights on rural funding execution. By fostering a closer center-state partnership, the Ministry aims to build a robust framework that drives improved governance, modern infrastructure, and public service delivery, thereby fueling inclusive growth toward the overarching goal of Viksit Bharat@2047.