panchayat.gov.in PEAIS Panchayat Empowerment and Accountability Incentive Scheme

Organisation : Ministry of Panchayati Raj
Scheme Name : Panchayat Empowerment and Accountability Incentive Scheme PEAIS
Home Page : https://panchayat.gov.in/
Terms & Conditions : https://www.statusin.in/uploads/22837-PEAIS.pdf

PEAIS :

Objectives :
The scheme aims to :
(a) Incentivize States to empower Panchayats through devolution of 3Fs (functions, funds and functionaries) in accordance with Article 243G read with Eleventh Schedule of the Constitution.

Related : Panchayati Raj PMEYSA Panchayat Mahila Evam Yuva Shakti Abhiyan Scheme : www.statusin.in/22830.html

(b) Incentivize Panchayats to put in place accountability systems to make their functioning transparent and efficient.

Implementation :
** So far PEAIS has focused on part (a) of the objective, i.e. incentivizing States to devolve 3Fs to PRIs. The methodology has been to commission an independent agency to conduct a study to prepare a Devolution Index (DI) and rank States on it.

The best performing States are then given incentive amounts. The DI has been continuously improved and refined over the years.

** Though the amount of incentive given is small, there is considerable interest and competition among States in the ranking and incentivization process, and as the winning States are accorded public recognition, the scheme plays a vital role in focusing interest in the devolution process.

** However, because of the paucity of funds, the second goal of the scheme, i.e., incentivization of Panchayats, has not been operationalized so far.

Incentivization of States :
** The incentivization of States on the basis of DI would be as per the pattern followed so far, with improvements as needed.

** The essential features would be :
(i) MoPR will commission an independent agency annually or once in two years, as the need may be, to prepare a DI to measure the devolution of 3Fs, and rank States on the DI.

(ii) Such ranking may be based on cumulative or annual performance or both.

(iii) Prize money would be given to States that rank high on the DI. The number of States to be awarded and the amount of prize money would be decided by MoPR, based on the availability of funds.

(iv) Funds for and study or any other exercise to prepare the DI and rank States may be accessed from PEAIS funds or from any other scheme of MoPR.

(v) 10% funds would be set aside for the best performing North Eastern States

Incentivization of Panchayats :
SPPAC :
** Best performing Panchayats at all three levels as well as best performing elected Village and District Councils in the North East will be identified in a systematic manner, as given below, and incentivized.

** The State Government shall set up a Committee under the chairmanship of Principal Secretary/Secretary, Panchayati Raj to guide the selection of best PRIs.

The Committee will include representatives of two other Departments, namely the Deptt. of Health and Education, State Institute of Rural Development (SIRD) or equivalent institution and two non-government experts.

In case, the Panchayati Raj & Rural Development Departments are separate in a particular State/UT, this SPPAC will include a representative for Rural Development Departments and a representative from either the Health or the Education Department.

This Committee will be known as State Panchayat Performance Assessment Committee (SPPAC). SPPAC will oversee the whole process of selection of best performing PRIs and make recommendations to MoPR.

Need for elaboration of guidelines :
** The first aspect of PEAIS, i.e. incentivizing States vis-à-vis devolution, needs to be continued as devolution to PRIs is far from complete, and States need to be encouraged continuously in the process.

A well-constructed DI can ultimately be a critical criteria for all Central grants to the States.

** At the same time, there is a need to focus on part (b) of the objective of PEAIS as set out in para 2 above.

There are around 2.4 lakh Panchayats (2,39,645 Gram Panchayats (GPs), 6,109 Intermediate Panchayats (IPs) and 554 District Panchayats (DPs) across the country as on date. These PRIs have differential performance based on

(a) the devolution and capacity building from the State level and

(b) the efforts made by PRI leadership as well as the community. Similarly elected district/ village councils in North- East States also need to be incentivised, to give due recognition to grassroots democratization undertaken.

** Just as it is important to incentivize States to devolve the 3Fs to PRIs and build their capacities, it is important to incentivize PRIs to perform their role optimally. Due recognition of PRIs that perform their role well and correct feedback to those that do not, can

(a) be an incentive for PRI representatives to improve PRI performance,
(b) bring the issue of PRI performance into prominence and focus the attention of policy makers,

(c) encourage State Governments to develop their systems of assessment and direct their attention to putting in place initiatives to maximize PRI performance and

(d) consolidate public expectations from PRIs, which can create pressure for better performance.

** It is, therefore essential that incentivization of Panchayats, including elected district/ village councils in North-East States, under PEAIS framework be operationalised.

** As the allocation under PEAIS has been enhanced from Rs.10 crores in pervious years to Rs.31 crores in 2011-12, it is possible to incentivize Panchayats and elected councils in NE States.