Every rupee has gone directly to vendors and service providers in real time, with a full and transparent digital audit trail

In a major milestone for grassroots governance, more than 2.5 lakh gram panchayats across India have collectively processed over ₹3 lakh crore in online payments since April 2019 through eGramSwaraj, the Ministry of Panchayati Raj’s digital platform.

Every rupee has gone directly to vendors and service providers in real time, with a full and transparent digital audit trail, the Ministry officials explained, saying the move is aimed at curbing mismanagement of rural funding.

From Paper to Virtual

Developed under the e-Panchayat Mission Mode Project and seamlessly integrated with the Public Financial Management System (PFMS), eGramSwaraj has fundamentally changed the way gram panchayats plan, account for and spend public money, overwriting earlier regime of cash-based, paper-driven village-level expenditure. Now, the virtual system is fast, accountable and fraud-resistant, officials stated. PFMS is a web-based online transaction system of the government for fund management and e-payment to implementing agencies and other beneficiaries.

In Financial Year 2025-26 alone, Panchayati Raj Institutions transferred ₹53,342 crore through the eGramSwaraj-PFMS interface, with 2,55,254 gram panchayats uploading their development plans on the portal during the same period, said Ministry officials. Total vendors registered so far are 1,60,79,737.

Under the Fifteenth Finance Commission (15thFC), ₹2,36,805 crore was allocated for the FY 2021-26 to panchayats in all the three tiers and traditional local bodies and Sixth Schedule areas in 28 States, including Kerala. While under Fourteenth Finance Commission, ₹2,00,292.20 crore was allocated to the gram panchayats. Out of this total allocation, ₹1,83,248.54 crore has been released, including ₹3,774.20 crore to Kerala.

“This milestone is the direct result of the Ministry of Panchayati Raj’s sustained and unrelenting commitment to making every panchayat digitally empowered. It stands as proof of the trust that over 2.5 lakh gram panchayats have placed in technology as the backbone of panchayat-level financial governance,” Secretary Panchayati Raj Vivek Bharadwaj told businessline..

Panchayats recieve funds under various Central as well as State-sponsored schemes besides having their own sources of revenue. Over the years, the CAG has flagged several recurring issues regarding panchayat finances including diversion and misappropriation and tardy utilisation of grants. Besides there are other mismanagements which Ministry seeks to address through the virtual platform.

Published on March 30, 2026