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Bhubaneswar, Jul 21: The Odisha government is set to strengthen the role of Gram Sabhas by giving them greater powers to monitor how Panchayats spend public funds. The move is aimed at ensuring greater transparency and accountability in the utilisation of grants received under the Central Finance Commission (CFC).
Under the new plan, every Panchayat will have to present a detailed account of its expenditure before the Gram Sabha. The Panchayati Raj Department has also proposed stronger social audits at the Panchayat level, in addition to district-level audits, and plans to establish a dedicated vigilance cell to monitor the use of public funds.
Stricter rules for spending CFC grants
The department has issued detailed guidelines specifying how funds received by Gram Panchayats, Panchayat Samitis, and Zilla Parishads can be utilised.
The guidelines prohibit the use of Central Finance Commission grants for:
All Gram Panchayats have been directed to submit their Gram Panchayat Development Plan (GPDP) by August 15. The GPDP, which serves as the annual development and budget plan of a Panchayat, will outline proposed projects, expenditure, and sources of revenue for the coming financial year.
The allocation of funds will be based on factors such as population, tied and untied grants, and other prescribed criteria. After approval by the Block Development Officer (BDO), the GPDP will be uploaded to the e-Gram Swaraj Portal, and only then will funds be released.
₹1,442 crore for panchayats in 2026–27
For the 2026–27 financial year, Odisha's Gram Panchayats will receive a Basic Grant of ₹1,442 crore.
The allocation includes:
₹721.20 crore as Tied Grants
₹721.20 crore as Untied Grants
In addition:
Panchayat Samitis (Blocks) will receive ₹360 crore each as tied and untied grants.
Zilla Parishads will receive ₹120 crore each as tied and untied grants.
How the Funds Can Be Used
The tied grant can only be spent on:
Drinking water supply and maintenance
Sanitation
Solid and liquid waste management
The Untied Grant can be utilised according to the decisions of the Gram Sabha for local development works. However, a maximum of 20% of the untied grant may be spent on the construction and repair of roads.
The remaining funds can be used for projects such as:
· Repair of primary schools and Anganwadi centres
· Construction of culverts
· Development of village markets and parks
· Sports infrastructure
· Maintenance of revenue-generating public assets
· Focus on Clean Villages
The government has also directed Panchayats to align their GPDPs with the objectives of Swachh Bharat Mission (Gramin) Phase II. The plans must include projects for community sanitation, solid waste management infrastructure, and achieving ODF Plus status to improve rural cleanliness and public health.
The initiative is expected to make Gram Sabhas more effective in overseeing local governance while ensuring that public funds are utilised transparently and for intended developmental purposes.
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