More funds promised for local bodies in India

New Delhi, Feb 16 (ANI): Finance Minister Pranab Mukherjee today said that the Government proposes to substantially expand the Panchayat Empowerment and the Accountability Scheme (PEAIS) by making suitable allocations in order to empower the Panchayats and put in place accountability systems to make their functioning transparent and efficient.

Presenting the Interim Budget 2009-2010 in the Lok Sabha here, Mukherjee said that PEAIS is an existing scheme under the central sector plan, which has been recognized as a powerful instrument to incentivise States to devolve funds, functions and functionaries and set up an institutional framework for such devolution.

He also gave the highlights of Project Arrow, which has been launched by Department of Posts to revitalize its core operations and to provide new technology-enabled service to the common man.

Promising full Government support for the Project, he informed that so far it has been successfully implemented in 500 post offices in the country.

"The Project will enhance the services offered to masses and would also lay the foundation for a vibrant delivery mechanism for many social sector schemes such as pension and the National Rural Employment Guarantee Scheme (NREGS), Mukherjee added. (ANI)