The Sarpanches would get Rs 3,000 instead of Rs 2,000 given earlier and Panches Rs 1,000 instead of Rs 600, he said while addressing the state-level oath-taking ceremony of newly-elected panchayat representatives.
The Chief Minister administered the oath and it was decided that the first meeting of all panchayats would be held on February 24.
Panchayat elections in Haryana were held last month.
Khattar congratulated the 56 per cent representatives elected unopposed and said Rs 210 crore would be given to the panchayats where they were chosen without contest.
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Arrangements have been made for systematic functioning of panchayats which include at least four meetings of gram sabhas every year in which 200 to 300 voters of small villages and more than 500 voters of big villages would be present, he said.
Khattar said an 11-member committee would be constituted to supervise the functioning of the panchayats and conduct 'social audit' of various schemes and works being done.
The Chief Minister asked the Sarpanches and Panches to ensure optimum use of funds, and said "seven times more work can be undertaken with the same budget."
There would be no hike in power tariff in the state for the next three years, and if there is a decline in losses, power tariff may also be reduced, Khattar said.
Speaking on the occasion, state Finance Minister Abhimanyu said Panchayats should fight corruption.
Well-educated persons with clean image have been elected as Sarpanches so that they could effectively implement the schemes of the state government, he said.
Panchayats Minister, O P Dhankar, said women have been elected to 480 posts in panchayats.