Panchayat Empowerment and Accountability Incentive Scheme

Panchayat Empowerment and Accountability Incentive Scheme (PEAIS) is a Central Sector Plan Scheme being implemented by the Ministry of Panchayati Raj since 2005-06.  PEAIS aims to (i) incentivize States to devolve 3Fs (functions, funds and functionaries) to Panchayats and (ii) incentivize Panchayats to put in place accountability systems to make their functioning transparent and efficient.  Performance of States is measured through a Devolution Index (DI) prepared through an independent agency.  Awards are given to best performing States/UTs based on their rank on DI annually.  From 2011-2012, Panchayats have been incentivized for their performance during the year 2010-2011. The State/UT Governments have been advised to utilise the amount released for the development of Panchayati Raj in the State.