This Results in reduced govt grants and other associated expenditures 

CHANDIGARH: In a move aimed at streamlining administrative efficiency, the Punjab government is set to merge several panchayats that were divided into multiple units seemingly without valid reason. Many villages in the state currently have two panchayats despite having a relatively small population. The consolidation effort, once implemented, is anticipated to reduce the total number of panchayats in Punjab from the current count of 13,241 to approximately 12,200, with an estimated reduction of about 1000 panchayats.

This Strategic merger is expected to result in reduced government grants and other associated expenditures. Officials from the Panchayat Department noted that over the years, several "Dhanis" (hamlets) had been declared as separate villages, each having its own panchayat, even though they were originally part of neighboring villages. This expansion of panchayat units contributed to the continuous growth in the number of panchayats across the state.

Significantly, The government has also announced a special grant of Rs 5 lakh for villages that elect a Sarpanch unanimously. Smaller panchayats stand to benefit more from this grant, as they often require additional resources to fulfill their local development needs. Official orders related to this grant allocation are expected to be issued in due course, with the government ensuring compliance with all relevant legal aspects.

The Punjab government's initiative to merge small panchayats reflects its commitment to improving governance efficiency, rationalizing administrative structures, and optimizing resource allocation for the betterment of rural communities in the state.