Abstract

This policy brief delves into the utilisation of XIV CFC grants and the implementation of Gram Panchayat Development Plans (GPDP) in Odisha, shedding light on critical findings and implications. With the XIV CFC disbursing substantial funds to Gram Panchayats (GPs) nationwide for basic services enhancement, including water, sanitation, and roads, the study examines how these resources are allocated and utilised in Odisha, a state with a significant young population. The GP Planning Process, mandated by the Ministry of Finance, empowers local governments to address grassroots challenges effectively, emphasising the well-being of children and local community involvement.
Employing a mixed-methods approach, the study analyses both secondary data from audited GP accounts and primary data from 30 GPs across 6 blocks in 3 districts of Odisha. With a focus on the period spanning 2015-2018, the study reveals insights into fund devolution mechanisms, expenditure patterns, and challenges encountered in implementing GPDPs. Despite significant grant allocations, the brief highlights issues such as low absorption rates, discrepancies in fund utilisation, and the need for enhanced planning processes to align expenditure with community needs effectively.

The policy implications underscore the necessity of refining planning processes, enhancing capacity building efforts, and fostering greater transparency and accountability in fund utilisation. Clearer guidelines for resource estimation and convergence, improved data availability, and strengthened governance structures are essential. By prioritising strategic interventions to address infrastructure gaps and optimise resource allocation, policymakers can leverage XIV CFC grants and GPDPs to drive inclusive growth and sustainable development at the grassroots level in Odisha.

CBPS. (2018). XIV CFC grants and Gram Panchayat Development Plans (GPDP). Bengaluru: Centre for Budget and Policy Studies. CBPS. (2018). XIVCFC grants and Gram Panchayat Development Plans (GPDP). Bengaluru: Centre for Budget and Policy Studies.