Incentive scheme launched for low-population panchayats

Own-source income village panchayats in U.P. to get funds five times the revenue they generate from local resources

- Brajendra K Parashar

LUCKNOW: Small-population village panchayats in Uttar Pradesh will now receive government assistance equal to five times the revenue they generate on their own under a new incentive scheme aimed at strengthening financially weak rural bodies.

The "Own Resource Income-Based Panchayat Compensation and Incentive Scheme," notified by the government, targets 12,087 gram panchayats with populations up to 1,500. These include 252 panchayats with fewer than 1,000 residents and 11,835 with populations between 1,001 and 1,500 as per the 2011 Census.

Additional chief secretary, panchayati raj, Anil Kumar issued a GO (government order) introducing the scheme here early this week. The scheme is aimed at addressing the long-standing funding gap that hampers the functioning of smaller panchayats, which often struggle to meet routine expenses such as sanitation, drinking water, electricity, and maintenance of community assets.

Population-based fund allocation leaves these panchayats with little support despite their critical role in grassroots governance.