New Delhi, July 7 -- The Centre is set to roll out model Own Source Revenue (OSR) guidelines for India's 262,000 gram panchayats to strengthen their financial independence and reduce their reliance on grants from the Centre and states, according to two people familiar with the development.

The 16th Finance Commission (2026-27 to 2030-31) places renewed focus on enhancing OSR so that village councils become more financially self-reliant while improving public service delivery.

With 42% of India's gram panchayats collecting less than Rs.1 lakh annually in OSR in FY22 and 21 states having framed their own OSR rules, the model framework prepared by the ministry of panchayati raj is intended to serve as a template for states to formulate or ...