A review of finances of PRIs revealed that though the functions related to 20 departments of the State Government were devolved to PRIs in September 2001, the provisions of devolved functions and responsibilities to be performed by the panchayats were not clear and practical and operational guidelines for implementation of functions devolved to PRIs were not framed. The Zila Parishads did not have adequate staff to discharge the devolved functions and 71 per cent of the sanctioned posts were vacant.
District Planning Committees consolidated plans under BRGF scheme only and works taken under centrally/state sponsored schemes by the PRIs were not considered. There was increasing trend of outstanding audit paragraphs. Eighty-three per cent audit paragraphs were pending for settlement. Social audit was not conducted for works executed under BRGF scheme. There was short release of Fourth State Finance Commission grant of ` 953.11 crore for the year 2014-15.