Panchayat being a State subject, providing Panchayat Building in Gram Panchayats (GPs) is primarily the responsibility of State Governments.
The States are expected to mobilise funds for construction of Panchayat Buildings from various sources.
However, to supplement efforts of states, the Ministry under its different scheme/s has been providing financial assistance to States/UTs for construction of Panchayat Bhawans.
Under the Centrally Sponsored Scheme (CSS) scheme of Rashtriya Gram Swaraj Abhiyan (RGSA), being implemented w.e.f 2018-19
also has a provision to provide funds to States/UTs
for construction of GP building on limited scale
at the rate of Rs. 20 lakhs per GP building and
Construction of approx 4500 GP buildings have been approved under the scheme.
States have been advised to ensure that the construction of GP buildings are taken up on priority by
converging funds / resources under Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS),
unspent funds of 14th Finance Commission ,
funds from 15th Finance Commission and
Also those from State schemes etc., so as to saturate the gap by the end of year 2022.