GS2 – Governance
Context
The Ministry of Panchayati Raj launched a Training of Trainers (ToT) programme under the Rashtriya Gram Swaraj Abhiyan (RGSA) to enhance Panchayats’ capacity to generate Own Source Revenue (OSR).
Purpose:
- Train state-nominated Master Trainers in OSR generation and project implementation.
- Focus on local revenue mobilisation and financial self-reliance.
Constitutional Provisions:
- Art. 243H: States can empower Panchayats to levy taxes and fees.
- Art. 243I: Mandates Finance Commissions every 5 years to review Panchayat finances.
- Art. 280(3): Enables central recommendations to augment PRI resources.
Revenue Sources for Panchayats:
- Tax Revenue: Property tax, professional tax, land use conversion fees, etc.
- Non-Tax Revenue: Water charges, service fees, market fees, etc.
- Current Status: OSR accounts for only ~1% of PRI revenues (2022–23).
RGSA (Launched 2018, revamped in 2022, extended till 2026):
- Covers all States/UTs and ~3 lakh Panchayats.
- Objectives:
- Strengthen local governance for SDG implementation.
- Build institutional capacity and empower Gram Sabhas.
- Improve Panchayat revenue generation.
Components:
- Central Level: Digital platforms (e-GramSwaraj, PRIASoft), incentivisation, ICT infrastructure.
- State Level: Training, HR support, community engagement.