Strengthening Grassroots Governance
In a significant step toward reinforcing grassroots democracy and accelerating welfare programs, the Odisha Cabinet has approved a proposal to expand the financial powers of Panchayati Raj officers. The move, led by Chief Minister Mohan Charan Majhi, aims to speed up project approvals, cut bureaucratic delays, and ensure that developmental initiatives at the village level are executed more efficiently.
This reform marks a major milestone in Odisha’s broader vision of “Vikshit Odisha 2036”, which prioritizes inclusive growth and rapid rural transformation.
Boosting Efficiency Through Enhanced Powers
One of the most notable changes is the empowerment of Block Development Officers (BDOs), whose authority to pass bills has increased fivefold—from ₹2 lakh to ₹10 lakh. This eliminates the need for countersignatures from Panchayat Samiti Chairmen, enabling quicker financial clearance for local projects.
In addition, administrative powers for approving plans and estimates at the Panchayat Samiti level will now rest with CDO-cum-EOs of Zilla Parishads, reducing the red tape that previously delayed the implementation of vital schemes.
Revised Sanction Limits Across Levels
Recognizing the rising scale of developmental works and fund flows, the Cabinet has introduced a tiered approval system for both general schemes and MGNREGA projects.
· General schemes: Junior and Assistant Engineers can now sanction projects up to ₹5 lakh, Assistant Executive Engineers up to ₹20 lakh, Executive Engineers up to ₹1 crore, and Superintending Engineers up to ₹4 crore. Projects exceeding that threshold will require approval from Chief Engineers.
· MGNREGA schemes: BDOs have been authorized to approve works up to ₹20 lakh, Panchayat Samiti Chairmen up to ₹50 lakh, while projects above that will fall under the jurisdiction of District Collectors.
This distributed structure ensures faster decision-making at every level without overburdening higher authorities.
Balancing Speed and Accountability
While the reforms grant officers greater autonomy, the state government has emphasized that checks and balances remain intact. Elected representatives will continue to play a supervisory role, maintaining transparency and accountability in the execution of rural projects. Officials believe this combination of decentralization and oversight will strike the right balance between efficiency and governance.
The new framework is expected to particularly benefit critical sectors such as infrastructure, housing, drinking water supply, and wage employment programs under MGNREGA. By addressing bottlenecks in financial clearances, the state hopes to deliver public services more quickly and effectively to rural households.
Part of a Larger Developmental Vision
The decision is also seen as an extension of Odisha’s broader developmental agenda. With increasing inflow of funds from both central and state schemes, aligning financial powers with on-ground realities has become essential. Experts note that empowering local institutions is critical for ensuring that resources are utilized optimally and that development reaches the last mile.
A Step Toward Inclusive Growth
The Cabinet’s decision to enhance sanctioning authority for Panchayat officers is more than just an administrative reform—it is a strategic investment in grassroots governance. By accelerating approvals and reducing procedural delays, Odisha is positioning itself to deliver faster, more accountable development.
If implemented effectively, these changes could significantly improve the state’s rural landscape, aligning with its long-term vision of a developed and inclusive Odisha by 2036. The challenge ahead lies in maintaining transparency while ensuring that greater autonomy translates into real benefits for the people at the village level.
(With agency inputs)
