Latest news with #UPPanchayatRajAct
Hindustan Times
31-05-2025
- Business
- Hindustan Times
Own-source income incentive scheme for low-population panchayats in U.P.
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. Many of these smaller panchayats, the GO points out, face a financial crunch due to increasing responsibilities at the village level. With the expansion of rural development activities and establishment of panchayat secretariats, they are now required to meet recurring expenses such as salaries of pradhans, panchayat assistants/accountants-cum-data entry operators, caretakers as well as pay electricity bills, like for stray cow shelters and panchayat secretariats etc. However, limited fund allocation based on population often falls short of meeting these obligations by small local rural bodies. Eligible panchayats under the new incentive-based scheme will be compensated based on verified own-source revenue (OSR) collected in the previous financial year from local resources like market stalls, ponds, waste collection, community halls, common service centres and other assets listed under Section 37 of the UP Panchayat Raj Act, 1947. They can collect revenue from local sources such as taxes, fees, fines and rents. District magistrates will certify these earnings. Funds under the scheme will be routed through the State Finance Commission and can only be used for approved development activities — not for honorariums or salaries. A dedicated digital portal will be developed to monitor panchayat income and disbursal, with 0.05% of the scheme's allocation set aside for its upkeep. As per the 2011 Census, out of over 57,,691 gram panchayats in the state, nearly 25% have populations below 1,500. These panchayats often get disproportionately lower funds compared to larger panchayats due to the 90:10 allocation ratio based on total and Scheduled Caste/Tribe populations respectively. The scheme will not only reward such panchayats but also promote transparency and accountability by mandating proper documentation of income sources through the OSMARO portal. Panchayats will have to upload records of income from markets, tourism-related receipts, community hall rentals, and other services. District-level committees led by the district magistrate will assess the eligibility of panchayats and recommend the amount of incentive to be awarded. The incentive could go up to five times the panchayat's own income deposited in the designated account. The GO mandates that all incentive amounts be used strictly as per the guidelines set by the state and central governments. 'Despite having functional secretariats and sanitation infrastructure, most gram panchayats lack mobility and operational resources. This scheme marks a shift towards rewarding self-reliance and incentivising rural bodies to build their own financial base,' a senior panchayati raj official said. The initiative, he pointed out, was in line with the spirit of the 73rd Constitutional Amendment, which sought to empower panchayati raj institutions and decentralise development planning to the grassroots.
Hindustan Times
24-05-2025
- Politics
- Hindustan Times
U.P. panchayat polls 2026: GO mandating villages' delimitation issued
The Uttar Pradesh government has initiated the process for the village panchayat elections scheduled for May next year by issuing a government order (GO) mandating the delimitation of village panchayats. This exercise has become necessary due to the merger of hundreds of villages into urban local bodies like nagar panchayats, municipal councils and municipal corporations since the last panchayat elections in 2021. Currently, there are around 58,000 village panchayats in the state, but the number is expected to decrease following the delimitation. 'We have issued the GO asking district magistrates to initiate the process for the delimitation of village panchayats, redrawing their boundaries in view changes in their status since the last panchayat elections,' principal secretary (panchayat) Anil Kumar told the HT. 'The existing number of village panchayats is expected to come down following the delimitation exercise,' he added. According to the GO issued on Friday, the reorganisation move stems from the fact that the creation and expansion of urban bodies have resulted in many revenue villages being absorbed into urban areas. This shift has left several village panchayats with reduced populations—some even falling below the required threshold of 1,000 residents—necessitating structural changes. The GO directs if a panchayat is left with a single revenue village that no longer qualifies independently, it will be merged with a nearby panchayat. However, if it still meets the eligibility criteria, it can be retained or reconstituted. Those partially affected panchayats that retain a population of around 1,000 will continue to function as before. The entire restructuring is being carried out under Sections 3 and 11(c) of the UP Panchayat Raj Act, 1947 (as amended in 1994), which governs the constitution of Gram Sabhas and the declaration of panchayat areas. A committee headed by the district magistrate has been constituted in each district to implement the exercise, with other key members including the chief development officer, additional chief officer (zila panchayat) and the district panchayati raj officer. 'District magistrates have been asked to submit finalised and approved proposals to the panchayati raj directorate by June 5, 2025. These must include comparative details of affected panchayats and certifications to ensure that no rural area remains outside the panchayat framework,' Kumar said.
