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.
