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
Stepping up investment in rural areas, in rural infrastructure and agriculture.
Increased credit availability, particularly to farmers and others, and offering them
remunerative prices for their crops.
Increased rural employment, including the provision of an unique social safety net in the
shape of the National Rural Employment Guarantee Programme.
Increased public spending on education and health care, including strengthening the mid-
day meal programme and offering scholarships to the needy.
Plot No. 334,Visalakshinagar, Visakhapatnam - 530043. Andhra Pradesh, India.