HYDERABADPanchayat Raj and Rural Development Minister Danasari Anasuya Seethakka has urged the Centre to provide special relaxations for tribal, Scheduled Area and Backward Gram Panchayats under the proposed norms of the 16th Finance Commission governing performance-based grants and own source revenue (OSR).Presenting the State government’s views at the National Workshop of State Panchayat Raj Ministers on the recommendations of the 16th Finance Commission, organised by the Ministry of Panchayat Raj in New Delhi on Friday, Ms. Seethakka said the performance of Gram Panchayats should not be assessed solely on tax collection, but also on service delivery, sanitation, transparency, digital governance and public participation.While welcoming the proposal for performance-based grants, she said the eligibility criteria should not place an additional tax burden on Gram Panchayats in tribal, remote and economically-weaker regions with limited revenue-generating capacity.Many Gram Panchayats in Scheduled Areas have small populations and consequently limited own-source revenue, warranting special relaxations, she said. She also sought similar concessions for Gram Panchayats and mandal-level local bodies with a predominantly Scheduled Tribe or Scheduled Caste population.The Minister urged the Centre not to withhold development grants to Gram Panchayats where elections could not be conducted due to pending court cases, saying villagers should not suffer because of circumstances beyond their control.Ms. Seethakka also sought the continuation of untied basic grants to enable Gram Sabhas to address local priorities, noting that development needs vary across villages.She further urged the Centre to provide additional weightage in fund allocation for Scheduled Areas, Backward districts and geographically difficult regions, citing the higher cost of delivering public services in such areas. Published - July 03, 2026 06:50 pm IST