Rajiv Ranjan Singh Urges States To Focus On Own Source Revenue Mobilisation
New Delhi: Union Minister for Panchayati Raj, Rajiv Ranjan Singh, has described the unprecedented increase in financial devolution to Rural Local Bodies recommended by the 16th Finance Commission as an opportunity to strengthen grassroots democracy across the country.
Speaking to reporters on Friday, Singh said the enhanced allocation, compared with the recommendations of previous Finance Commissions, marks a significant step towards empowering Panchayati Raj Institutions and promoting inclusive rural development.
Singh assured the States that all constructive suggestions received during the workshop would be carefully examined and incorporated wherever feasible. He urged all States and Union Territories to ensure timely readiness and preparedness for implementing the Operational Guidelines for Rural Local Body Grants recommended by the Sixteenth Finance Commission for the award period from 2026-27 to 2030-31, with the objective of maximising the effective utilisation of the Commission's grants.
Emphasising the importance of fiscal self-reliance, Singh also called upon States to strengthen the generation of Own Source Revenue (OSR). He informed that the Ministry of Panchayati Raj is preparing a Model OSR Rules Framework to assist States in enhancing their revenue mobilisation efforts.
The Workshop was convened in the context of the recommendations of the 16th Finance Commission (2026 to 2031), which has recommended a devolution of Rs 4,35,236 crore to Rural Local Bodies for the period 2026-27 to 2030-31 and the Operational Guidelines issued by the Department of Expenditure, Ministry of Finance, for their effective implementation.
Highlighting the Centre's push towards digitally empowered and financially self-reliant Panchayats, Singh said the SAMARTH Panchayat Portal has been developed as a dedicated digital platform to transform the financial administration of Panchayati Raj Institutions. He noted that the portal is expected to enhance transparency, improve operational efficiency and strengthen financial management at the grassroots level.
Calling upon States and Union Territories to accelerate their onboarding onto the platform, the Minister also stressed the need to strengthen OSR mobilisation. He said these measures would help build Panchayats that are financially resilient, accountable and better equipped to drive sustainable rural development.
"The discussions focused on how Panchayats can effectively utilise the grants, how States can make their Panchayats more self-reliant, and how greater transparency can be brought into financial transactions," he added.
Responding to media queries, Bihar Panchayati Raj Minister Deepak Prakash said, "Today, a workshop was organised on the effective implementation of the 16th Finance Commission's recommendations for State Panchayati Raj Ministers. During the workshop, all key issues were discussed, and necessary clarifications were provided on all points."
Speaking to reporters on Friday, Singh said the enhanced allocation, compared with the recommendations of previous Finance Commissions, marks a significant step towards empowering Panchayati Raj Institutions and promoting inclusive rural development.
Singh assured the States that all constructive suggestions received during the workshop would be carefully examined and incorporated wherever feasible. He urged all States and Union Territories to ensure timely readiness and preparedness for implementing the Operational Guidelines for Rural Local Body Grants recommended by the Sixteenth Finance Commission for the award period from 2026-27 to 2030-31, with the objective of maximising the effective utilisation of the Commission's grants.
Emphasising the importance of fiscal self-reliance, Singh also called upon States to strengthen the generation of Own Source Revenue (OSR). He informed that the Ministry of Panchayati Raj is preparing a Model OSR Rules Framework to assist States in enhancing their revenue mobilisation efforts.
The Workshop was convened in the context of the recommendations of the 16th Finance Commission (2026 to 2031), which has recommended a devolution of Rs 4,35,236 crore to Rural Local Bodies for the period 2026-27 to 2030-31 and the Operational Guidelines issued by the Department of Expenditure, Ministry of Finance, for their effective implementation.
Highlighting the Centre's push towards digitally empowered and financially self-reliant Panchayats, Singh said the SAMARTH Panchayat Portal has been developed as a dedicated digital platform to transform the financial administration of Panchayati Raj Institutions. He noted that the portal is expected to enhance transparency, improve operational efficiency and strengthen financial management at the grassroots level.
Calling upon States and Union Territories to accelerate their onboarding onto the platform, the Minister also stressed the need to strengthen OSR mobilisation. He said these measures would help build Panchayats that are financially resilient, accountable and better equipped to drive sustainable rural development.
"The discussions focused on how Panchayats can effectively utilise the grants, how States can make their Panchayats more self-reliant, and how greater transparency can be brought into financial transactions," he added.
Responding to media queries, Bihar Panchayati Raj Minister Deepak Prakash said, "Today, a workshop was organised on the effective implementation of the 16th Finance Commission's recommendations for State Panchayati Raj Ministers. During the workshop, all key issues were discussed, and necessary clarifications were provided on all points."