The Kudumbashree Story

Women Empowerment

GP2RP - Gram Panchayat Poverty Reduction Plan


Gram Panchayat Poverty Reduction Plan (GP2RP) is the consolidated demand plan for local development prepared by the community network in partnership with respective Gram Panchayat. 

GP2RP has emerged as an important tool for PRI-CBO Convergence under the Naitonal Rural Livelihoods Mission (NRLM). 

The Context

The Fourteenth Finance Commission awarded a grant of Rs 200,292.20 crore to Gram Panchayats. This unprecedented size of grant offers substantial resources to address local development issues. Funds are now available for provision of basic services to rural communities. 

In addition to the grant awarded by the Fourteenth Finance Commission, MGNREGS is expected to provide Rs 1.5 lakh crore to Rs 2 lakh crore to GPs over a period of five years. In addition, GPs in certain States get the grant awarded by the State Finance Commission; GPs in many States also have their own revenue collected from taxes and licences, and also States’ scheme funds.

However, the effective and transparent utilisation of these funds would depend on proper planning and implementation of programmes by the Panchayats. This in turn depended on the extent of devolution and the strength of the Panchayats in different States. This was the context in which GP2RP was proposed wherein local level resource demand is reported and consolidated through the community network and presented to the Gram Panchayats. 


  • To prepare comprehensive and inclusive demand plans for local development under the leadership of the community network in consultation with local governments.
  • To strengthen the community based organisations and their leadership for active participation in poverty reduction activities.
  • To facilitate the development of organic interface between the federations of Self-Help Groups (SHGs) and Panchayat Raj Institutions (PRIs) for the socioeconomic development of the villages through appropriate mechanisms. 


Community network consisting of SHGs and their federations has been evolving across the country under NRLM. GP2RP is prepared by the SHGs, consolidating the demands for livelihoods, health and sanitation, social security, natural resource management, and basic infrastructure development expressed by poor families. I has an element of inclusion as well, wherein attempts are made to bring in households that are left out into the SHG fold. 

Components Description
Social Inclusion Plan  Plan for inclusion of vulnerable people / households into SHGs under NRLM
Entitlement Plan  Consolidated demand for entitlements based on Participatory Assessment of Entitlements (PAE)
Livelihoods Plan Specific demands for livelihood enhancement through agriculture, animal husbandry, skill training etc. 
Credit Plan Demand for financial services under NRLM and bank linkage  
 Infrastructure Development Plan Demand for new infrastructure and renovation of existing infrastructure 
Resource Development Plan  Demand for protection and development of natural resources


The GP2RP Process

Facilitator groups are formed at Gram Panchayat level. Participatory Assessment of Entitlements (PAE) are held at every SHG. Following this, consultations are held with the Gram Panchayat. This is followed by the preparation of SHG level Entitlement Plans, which are consolidated at the GP level. The plan is then presented to the Gram Panchayat. The last step is to present the plans at the Gram Sabha. 

Steps for preparing GP2RP include capacity building of CBO leaders and SHG office bearers by Local Resource Groups (LRG), preparation of SHG Register and SHG level Livelihoods and Entitlement Plans, preparation of VO Register and VO level Livelihoods and Social Security Plan, and preparation of GP Register and sectoral Gram Panchayat Poverty Reduction Plans. 

In the context of the Fourteenth Finance Commission awarding significant grants to Gram Panchayats, the integrating GP2RP with the development of Gram Panchayat Development Plan (GPDP) is critical. The following institutional framework has been conceptualised for the integration of GP2RP with GPDP. 

Line departments of the State Governments as well as NRLM have resources that could be used for responding to the demand plans prepared through the CBOs in consultation with Gram Panchayats. Aligning these resources with the demand from the field for effective utilisation of the resources for meeting the demands is another important area of work.  




GP2RP has been about seizing a moment of opportunity; an opportunity when the Gram Panchayats got access to unprecedented extent of resources on the one hand, and a community network getting formed through social mobilisation with focus on inclusion on the other. GP2RP has thus been the bridge between the community demand, expressed and consolidated through the community network and integrated with the pools of resources available. The process generated substantial enthusiasm among the members of the community network as they participated in the process of demand generation and consolidation. The Gram Panchayats realised the potential of the community network and the possibility of it being a partner in development.