Panchayat Empowerment and Accountability Incentive Scheme


It is a central sector scheme aimed at incentivization of States for devolving funds, functions and functionaries (3Fs) to Panchayats and incentivization of Panchayats to put in place accountability systems to make their functioning transparent and efficient.

The scheme is 100% centrally funded.

State Governments/UTs are ranked on a Devolution Index which measures the extent of devolution of 3Fs by States to Panchayats.

Based on the index, the best performing states and panchayats have been incentivized since 2011.