Panchayat Empowerment and Accountability Incentive Scheme (PEAIS) is a Central Sector Plan Scheme aimed at
(i) incentivization of States for devolving funds, functions and functionaries (3Fs) to Panchayats and
(ii) incentivization of Panchayats to put in place accountability systems to make their functioning transparent and efficient. The scheme is 100% centrally funded.
Under PEAIS, State Governments/UTs are ranked on a Devolution Index which measures the extent of devolution of 3Fs by States to Panchayats. States are ranked on the DI through a study conducted by an independent organization. Since 2011-12, best performing Panchayats in the country have also been incentivized.
The assessment of States along the DI follows a two stage process. The States that fulfill mandatory provisions of the Constitution qualify for further assessment on the extent of devolution. A study has been commissioned to evaluate the performance of States in 2012-13. The indicators used in the study are given below. The ranking is under process.
Indicators for Panchayat Strengthening Index 2012-13
A. Basic Details of Panchayats
B. Panchayat Elections
C. Dissolution and Bye Elections
D. Constitution & Functions of District Planning Committee
E. Role of Panchayats in Parallel Bodies/Institutions
F. Autonomy to Panchayats
G. Functions Assigned to Panchayats and Actual Involvement of Panchayats
H. Involvement of Panchayats in Important Schemes
I. NFC Grants to the Panchayats
J. State Finance Commission & Fiscal Transfer to Panchayats
K. Empowerment of Panchayats to Impose and Collect Revenue
L. Fund Availability with Panchayats
M. Expenditure of Panchayats
N. Recent Initiatives related to Finance & Accounts
O. Accounting & Audit
P. Social Audit
Q. Gram Sabha
R. Transparency and Anti- Corruption
S. Physical Infrastructure of Panchayats & e-Connectivity
T. Panchayat Officials
U. Training Institutions
V. Training Activity
W. Panchayat Assessment & Incentivization
Indicators related to social audit have been included in the State level study as well as the model Panchayat level indicators.
Every year model indicators and questionnaire have been refined by the Ministry. These have been circulated to all the States/UTs for adoption with suitable modifications. The Ministry held a workshop to consider improvement on indicators under PEAIS on 11th May, 2012. Two workshops were held to improve the State level field verification process on 18-19 and 30-31 October, 2012.