Context: Recently, the Panchayati Raj Ministry has pitched for a fivefold increase in Finance Commission funding for rural local bodies.

• For forming up its recommendations for the years 2020-21 to 2025-26, the Finance Commission held a meeting with the Ministry of Panchayati Raj (MoPR) headed by the Union Minister of Rural Development, Agriculture and Farmers’ Welfare & Panchayati Raj.

Key Points

• The Panchayati Raj Ministry has pitched for a fivefold increase in Finance Commission funding for rural local bodies.
• The Ministry asked for Rs 10 lakh crore to be allocated for the 2020-21 to 2025-26 period, in comparison to the Rs 2 lakh crore allocated under the 14th Finance Commission.
• It noted that allocations had tripled between the 13th and 14th Commissions as well.
• An impact evaluation study showed a 78% utilisation rate for FC grants between 2015 and 2019.
• Road construction and maintenance, as well as drinking water supply have been the major projects carried out by panchayats using FC grants.
• The 2.63 lakh panchayats across the country have 29 functions under their ambit, according to the 11th Schedule of the Constitution.

Importance of Panchayats during the ongoing pandemic

• Panchayats have also gained importance as crucial nodal points in times of crisis.
• Going forward, the Garib Kalyan Rozgar Abhiyan will depend on panchayats to generate employment for newly returned migrant workers.
• The Ministry admitted that a major challenge during the pandemic and lockdown was that most panchayats could not provide cooked food at short notice. It has proposed that community kitchens be set up in each panchayat to be operated by local self-help groups.

About Garib Kalyan Rozgar Abhiyan

• It an employment scheme that will provide employment to the migrant workers and creates infrastructure in rural areas with Rs. 50,000 crore investment.
• The Ministry of Rural Development is the nodal Ministry for this scheme and it will be implemented in close coordination with the State Governments. 
• This campaign of 125 days, which will work in mission mode, will involve intensified and focused implementation of 25 different types of works
• The Abhiyaan will be a coordinated effort between 12 different Ministries/Departments, namely, Rural Development, Panchayati Raj, Road Transport & Highways, Mines, Drinking Water & Sanitation, Environment, Railways, Petroleum & Natural Gas, New & Renewable Energy, Border Roads, Telecom and Agriculture.

About Finance Commission

• Under Article 280 of the Constitution, the President of India is required to constitute a Finance Commission at an interval of five years or earlier.
• It is a constitutional body, that determines the method and formula for distributing the tax proceeds between the Centre and states and among the states as per the constitutional arrangement and present requirements.
• Recently, the 15th Finance Commission (15th FC) under the chairmanship of  N.K Singh submitted its final report in 2019 for the period 2021-2026.
• The 15th FC has recommended a 1% decrease in the net proceeds of tax collected by the Centre to be shared with states. So against the 42% of tax revenue that states were given, as per the 14th Finance Commission (2015-2020), the 15th FC has now recommended that the Centre devolve 41% to states.
• The 15th FC has used the 2011 Census as against the 1971 Census.
• 11th Schedule of the Constitution- The 11th Schedule of Indian Constitution was added in 1992 by the 73rd Constitution Amendment Act. 
• It contains the provisions that specify the powers, authority and responsibilities of Panchayats. It has 29 matters.