In News:

In a significant move to strengthen grassroots governance and fiscal autonomy, the Ministry of Panchayati Raj (MoPR) has launched a Training of Trainers (ToT)programme in collaboration with the Indian Institute of Management (IIM) Ahmedabad and the Indian Institute of Public Administration (IIPA). The initiative aims to enhance the capacity of Panchayats to generate Own Source Revenue (OSR) under the Rashtriya Gram Swaraj Abhiyan (RGSA).

Key Objectives:

• Enhance financial self-reliance of Panchayati Raj Institutions (PRIs).
• Build a cadre of Master Trainers equipped to train Panchayat-level functionaries.
• Shift local governance from a compliance-based model to proactive planning, innovation, and community engagement.
• Promote a culture of fiscal accountability, transparency, and efficient public service delivery at the grassroots level.

Core Focus Areas of Training

• Fundamentals of Own Source Revenue (OSR)
• Revenue enhancement strategiestailored to rural contexts
• Behavioural insights in tax collectionand compliance
• Revenue utilization for development and service delivery
• Village-level financial planningand Gram Panchayat Development Plans (GPDPs)
• Innovative financing mechanisms
• Project management and accountability tools

The training emphasized field orientation, peer learning, and evidence-based practices to ensure real-world applicability and long-term impact.

Institutional Reforms and Digital Integration

As part of the broader reform agenda:

• Model OSR Rules Framework is under development based on state-level legislative reviews.
• A Digital Tax Collection Portal is being created to facilitate:
  • Simplified and accountable revenue collection,
  • Digital integration with Panchayat-level financial systems.

Case Studies & Best Practices

The training showcased successful Panchayat-level revenue generation models from:Odisha, Gujarat, Goa, Uttar Pradesh, Maharashtra, and the Andaman & Nicobar Islands, highlighting scalable models of local innovation.

Rashtriya Gram Swaraj Abhiyan (RGSA): Background

A Centrally Sponsored Scheme (CSS) launched in 2018 and revamped for 2022–2026, aimed at developing and strengthening the Panchayati Raj System across rural India.

Key Objectives:

• Build governance capacity of PRIs to achieve Sustainable Development Goals (SDGs).
• Empower Panchayat representatives for effective leadership and participatory governance.
• Enhance OSR generation and financial planning at the Panchayat level.
• Promote inclusive development and convergence of schemes.
• Strengthen Gram Sabhas as platforms for citizen engagement.

Salient Features:

• Emphasis on capacity-building and leadership training.
• Promotes decentralisation and compliance with the PESA Act, 1996.
• Encourages use of technology-driven solutions for governance.
• Recognises and incentiviseshigh-performing Panchayats.
• Facilitates collaboration with international and national institutions.