The Cabinet Committee on Economic Affairs chaired by the Prime Minister, Shri Narendra Modi today gave its approval for restructured Centrally Sponsored Scheme of Rashtriya Gram Swaraj Abhiyan (RGSA).   

Expenditure:

The Scheme will be implemented during the period from 01.04.2018 to 31.03.2022 at the total cost of ₹ 7255.50 crore with the Central Share of ₹ 4500 crore and that of State Share of ₹ 2755.50 crore as per details given below:

Year	2018-19	2019-20	2020-21	2021-22	Total (Rs. Crore)
State share	585.51	877.84	712.63	579.52	2755.50
Central share	969.27	1407.76	1160.94	962.03	4500.00

Details:

(i)    This scheme will extend to all States and UTs of the Country and will also include institutions of rural local government in non-Part IX areas, where Panchayats do not exist,

(ii)    The scheme will have both   Central Component - National Level activities including "National Plan of Technical Assistance", "Mission Mode project on e-Panchayat", "Incentivization of Panchayats" and State component - Capacity Building of Panchayati Raj Institutions (PRIs),

(iii)   The Central Component will be fully funded by the Government of India. However, Centre:State funding pattern for State Component will be 60:40 for all States, except North East and Hill States where Centre:State funding pattern will be 90:10.  For all Union Territories (UTs) (with and without legislatures), the Central share will be 100%.

(iv)   The implementation and monitoring of the activities of the scheme will broadly be aligned for achieving the Sustainable Development Goals (SDGs) with main thrust on Panchayats identified under Mission Antyodaya and 115 Aspirational districts as identified by NITI Aayog.

(v)    The Scheme will converge capacity building initiatives of other Ministries with particular focus on those Ministries which will be impacted substantially by this Scheme,

(vi)   Sunset date for RGSA will be 31.03.2030.

States/districts covered:

This scheme will extend to all States and UTs of the country and will also include institutions of rural local government in non-Part IX areas, where Panchayats do not exist.

Impact:

The approved scheme of RGSA will help more than 2.55 lakh Panchayati Raj Institutions (PRIs) to develop governance capabilities to deliver on SDGs through inclusive local governance with focus on optimum utilisation of available resources. The key principles of SDGs, i.e. leaving no one behind, reaching the farthest first and universal coverage, along with gender equality will be embedded in the design of all capacity building interventions including trainings, training modules and materials. Priority will be given to subjects of national importance that affects the excluded groups the most, e.g. poverty, primary health services, nutrition, immunization, sanitation, education, water conservation, digital transactions etc.

The scheme is designed keeping in view programmatic convergence with Mission Antyodaya GPs and 115 Aspirational districts as identified by NITI Aayog. As Panchayats have representation of Schedule Castes, Schedule Tribes and women, and are institutions closest to the grass­roots, strengthening Panchayats will promote equity and inclusiveness, along with Social Justice and economic development of the community.

Increased use of e-governance by PRIs will help achieve improved service delivery and transparency. The scheme will strengthen Gram Sabhas to function as effective institutions with social inclusion of citizens particularly the vulnerable groups. It will establish the institutional structure for capacity building of PRIs at the national, state and district level with adequate human resources and infrastructure. Panchayats will progressively be strengthened through incentivisation on the basis of nationally important criteria which will encourage competitive spirit among them.

Implementation strategy and targets:

The Central Government and the State Governments will take action for performing and completing the activities approved for their respective roles. The State Government will formulate their Annual Action Plans for seeking assistance from the Central Government as per their priorities and requirement. The scheme will be implemented in a demand driven mode.

Background:

The Finance Minister, in his budget speech for 2016-17, announced the launch of new restructured scheme of Rashtriya Gram Swaraj Abhiyan (RGSA), for developing governance capabilities of Panchayati Raj Institutions (PRIs) to deliver on the Sustainable Development Goals (SDGs). A Committee under the Chairmanship of the Vice Chairman-NITI Aayog was constituted to restructure the existing scheme of this Ministry as Rashtriya Gram Swaraj Abhiyan.

The Committee held several meetings, consultations etc. with various stakeholders and submitted its report with set of recommendations which were accepted by Government and formed the basis for the formulation of this scheme.

In his Budget Speech for 2017-18, the Finance Minister announced to undertake a Mission Antyodaya to bring one crore households out of poverty to make 50,000 Gram Panchayats poverty free. Accordingly, convergent action with Mission Antyodaya has been integrated into this scheme.

Centrally Sponsored Scheme reorientation expands Panchayati Raj capacity building and funding patterns to advance SDG aligned local governance. Approval establishes the Rashtriya Gram Swaraj Abhiyan as a national capacity building Centrally Sponsored Scheme for PRIs, combining a fully centrally funded national component with a State component funded on specified Centre:State ratios; it extends to all States, UTs and non Part IX rural local institutions, aligns implementation with SDGs, Mission Antyodaya and aspirational districts, and requires demand driven State Annual Action Plans, programmatic convergence with other ministries, institutional structures at national/state/district levels, prioritisation of social inclusion and incentivisation of Panchayats.