Policy Update
Anamitra Sinha
Background
The Rashtriya Gram Swaraj Abhiyan (RGSA) is a significant initiative aimed at empowering Panchayati Raj Institutions (PRIs) across India. Its origins trace back to 2018, when the Cabinet approved the scheme for the initial period of 2018-2021, recognizing the critical need for strengthening local governance in rural areas. Since then, this policy has been revamped, with a renewed commitment running from 2022 to 2026, aligning it with the 15th Finance Commission period. This extension and restructuring reflect a broader vision: fostering self-sustained, inclusive rural communities that play an active role in national development.
The concept of the RGSA stems from the idea that Panchayati Raj Institutions are instrumental in improving governance at the grassroots level. India has over 2.78 lakh rural local bodies (PRIs), each with unique challenges in service delivery, infrastructure, and community development. Local governance has vast potential to address these needs efficiently, but without structured support, PRIs often face difficulties in providing basic services or addressing specific regional needs.
Since 2018, the Ministry of Panchayati Raj has implemented RGSA, which evolved to encompass key areas vital to rural development. The scheme includes capacity building, technology adoption, and skill training to improve governance capabilities of PRIs. The early phase aimed to bring foundational improvements, while the current extension focuses on sustainable practices and adapting to emerging developmental challenges aligned with the United Nations’ Sustainable Development Goals (SDGs).
Functioning
One of RGSA’s unique strengths is its collaborative structure, with both Central and State governments funding and executing the scheme. This dual funding approach supports flexibility, allowing regions to prioritize local needs while staying aligned with national development goals. The Centre covers 100% of costs for critical components like e-Panchayat—a digital initiative designed to make governance transparent, efficient, and accountable. At the state level, funding ratios are generally 60:40 (90:10 for Northeastern and hilly regions), helping states tackle regional challenges like geographical remoteness, low connectivity, and workforce shortages.
A defining feature of RGSA is its commitment to enhancing PRI capacities through Capacity Building and Training (CB&T) modules. As of 2023, approximately 3.1 crore Panchayat members have undergone training, covering a range of topics from financial management to sustainable development. By incorporating practical modules focused on everyday governance issues, such as budgeting, resource mobilization, and participatory planning, RGSA aims to transform how rural governance operates, making it both responsive and resilient.
Impact
The RGSA’s impact goes beyond conventional development metrics, focusing on empowering communities, particularly underrepresented groups, to take an active role in their own governance. Women, for instance, now hold 44% of all PRI seats, a notable shift that reflects India’s commitment to inclusive governance. The scheme’s mandatory 33% reservation for women and targeted training programs have helped break down barriers, enabling women to influence local decision-making, especially on issues impacting health, education, and water.
By introducing digital governance tools like the Panchayat Enterprise Suite (PES) and the Public Finance Management System (PFMS), RGSA has also pushed for technological transformation within rural governance structures. Nearly 1.7 lakh Panchayats have adopted PES applications for financial transactions, asset management, and tracking development projects, resulting in faster fund disbursements, reduced paperwork, and enhanced transparency. For example, the average time for fund allocation has decreased from months to weeks in many Panchayats, as transactions and approvals move through secure digital channels.
One area where RGSA’s impact is visible is in the formulation of Gram Panchayat Development Plans (GPDPs). These annual plans, shaped by community input, ensure that development aligns with local priorities. Data from the Ministry of Panchayati Raj indicates that 87% of Gram Panchayats now engage actively in GPDP formulation, compared to just 54% in 2019. With these plans in place, Panchayats are able to better allocate resources to areas like water conservation, sanitation, and healthcare, directly impacting their communities. Notably, almost 1.5 lakh Panchayats reported improvements in water management through small-scale, locally managed projects that contributed to the “Water-Sufficient Village” target.
Strengthening the Gram Sabha
While the Panchayats are central to local governance, the Gram Sabha, or village assembly, is equally crucial. It is the primary forum where citizens participate, voice concerns, and hold their representatives accountable. However, challenges remain: while the RGSA has successfully encouraged more people to attend Gram Sabha meetings, overall attendance remains low in many states due to factors like migration, limited awareness, and logistical challenges. To address this, the scheme has recently started emphasizing public awareness campaigns, alongside efforts to make Gram Sabha meetings more accessible by co-locating them with Common Service Centres (CSCs) in Gram Panchayat buildings.
The importance of revitalizing the Gram Sabha cannot be understated. It acts as a powerful check on local power, offering community members an opportunity to review and assess ongoing projects, resource allocation, and even the actions of their elected representatives. Greater investment in strengthening the Gram Sabha—through incentives, logistics support, and awareness campaigns—could enhance its role as the heartbeat of rural democracy.
Way Forward
While the RGSA has led to substantial improvements, challenges persist, particularly regarding connectivity, literacy, and revenue generation. Many Panchayats still struggle with low digital literacy, limited internet access, and inadequate funding. While the PES system and e-Panchayat initiatives have improved transparency and accountability, more support is needed to ensure all Panchayats have the digital infrastructure to participate fully in the scheme.
Another challenge lies in sustaining the infrastructure and human resources required for effective local governance. While the RGSA has made strides in capacity building, many Panchayats face significant turnover in trained staff, creating gaps in knowledge and operational continuity. Building a steady pipeline of trained personnel, possibly through local institutes or partnerships with academic institutions, could bridge this gap and help ensure that knowledge and skills are retained within PRIs.
A critical next step for RGSA is to deepen its focus on revenue generation, making Panchayats financially independent. A more self-reliant Panchayat is not only empowered to make decisions aligned with local needs but can also respond more effectively to unforeseen challenges. In some regions, pilot projects focusing on property tax collection, leasing community assets, and offering paid services have shown promise in boosting Panchayat revenue. Scaling these models across different regions could help create financially resilient local bodies capable of sustaining development projects independently.
The Vision of “Sabka Sath, Sabka Gaon, Sabka Vikas”
Ultimately, the RGSA’s vision “Sabka Sath, Sabka Gaon, Sabka Vikas”—captures the ambition to create self-reliant, resilient rural communities that are drivers of national progress. The scheme’s focus on capacity building, technological adoption, and inclusive governance equips PRIs to address complex rural challenges in real-time. With rural India home to nearly 65% of the national population, a resilient, capable PRI system is essential for sustainable national growth.
Moving forward, RGSA can continue to push the boundaries of rural governance by embracing new technological tools, investing in community awareness, and fostering public-private partnerships to supplement local resources. It is a dynamic blueprint for rural empowerment, positioning Panchayats not just as local administrative units but as active shapers of India’s future.
References
- Drishti IAS. (n.d.). Rashtriya Gram Swaraj Abhiyan (RGSA). Retrieved from https://www.drishtiias.com/daily-updates/daily-news-analysis/rashtriya-gram-swaraj-abhiyan
- Government of India. (n.d.). Rashtriya Gram Swaraj Abhiyan (RGSA). MyScheme. Retrieved from https://www.myscheme.gov.in/schemes/rgsa
- Ministry of Panchayati Raj. (n.d.). Rashtriya Gram Swaraj Abhiyan (RGSA) Home Page. Retrieved from https://rgsa.nic.in/index.htm
- Ministry of Panchayati Raj. (n.d.). Rashtriya Gram Swaraj Abhiyan (RGSA). Retrieved from https://panchayat.gov.in/rgsa/
- Press Information Bureau. (2022, March 9). Cabinet approves continuation of revamped Rashtriya Gram Swaraj Abhiyan (RGSA) for the period 2022-2026. Retrieved from https://pib.gov.in/PressReleasePage.aspx?PRID=1806652
- Press Information Bureau. (2023, July 19). Revamped Rashtriya Gram Swaraj Abhiyan (RGSA) to strengthen Panchayati Raj Institutions across India. Retrieved from https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1946678
About the Contributor: Anamitra Sinha, Policy Research Intern at IMPRI Institute and Master’s student in Development, Policy Planning, and Practice at Tata Institute of Social Science, School of Rural Development, Tuljapur (Off-Campus).
Acknowledgment: This article was reviewed by IMPRI experts such as Dr. Arjun Kumar and other collaborators along with peer reviewers.
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