Panchayati Raj Movement is in Distress

Syllabus: GS2/Governance;

Context

• Recent discussions in Parliament on the 75th anniversary of the Indian Constitution highlighted that the momentum towards deepening local governance has stalled.
  • Several factors are contributing to the distress of the Panchayati Raj movement, necessitating urgent reforms.

About the Panchayati Raj in India

• Historical Background: The concept of Panchayati Raj has its roots in ancient India, where village assemblies (Panchayats) played a crucial role in local governance.
• Mahatma Gandhi envisioned Panchayati Raj as the foundation of India’s political system, advocating for village self-governance (Gram Swaraj).
• The 73rd Constitutional Amendment Act of 1992 institutionalized this vision by creating a three-tier system of local governance:
  • Gram Panchayat at the village level;
  • Panchayat Samiti at the block level;
  • Zila Parishad at the district level;

Structure and Functioning of PRIs (As Per 73rd Amendment)

• The Panchayati Raj system operates through regular elections, held every five years, with reservations for women, SCs, and STs.
• It ensures inclusivity and representation of marginalized groups in local governance. 
• The Gram Panchayat, as the basic unit of local administration, is responsible for implementing various development programs and schemes at the village level.

Challenges Facing the Panchayati Raj System

• Administrative Decentralization Plateaued: Effective local governance requires state governments to devolve staff and administrative control to local governments.
  • However, less than 20% of states have fully devolved all 29 subjects listed in the Eleventh Schedule of the Constitution. It hampers the functioning of panchayats.
• Declining Fiscal Autonomy: While the 73rd Amendment mandates financial devolution, in practice, Panchayats still depend heavily on state and central grants.
  • While direct transfers to panchayats have increased from ₹1.45 lakh crore under the Thirteenth Finance Commission (2010-15) to ₹2.36 lakh crore under the Fifteenth Finance Commission (2021-26), there has been a significant reduction in untied grants.
  • Untied grants, which allow local decision-making, have fallen from 85% to 60%, reducing the autonomy of local governments.
  • 14th and 15th Finance Commissions recommended increased grants to PRIs, but fund utilization remains inefficient due to bureaucratic red tape.
• Gender and Social Inequality in Governance: Although the 73rd Amendment provides for 33% reservation for women, and many states have increased it to 50%, gender bias still exists in Panchayat politics.
  • The phenomenon of ‘Sarpanch Pati’ (where husbands or male relatives make decisions on behalf of elected women representatives) undermines the true empowerment of women in local governance. 
  • Additionally, caste-based politics often prevents marginalized communities from actively participating in decision-making.
• Poor Accountability and Transparency: Social audits, which were introduced to improve transparency, are either not conducted regularly or manipulated.
  • Misuse of funds in welfare schemes like Mid-Day Meal Scheme, PMAY-G, and PDS (Public Distribution System) has raised concerns about corruption in local governance.
• Shift in Welfare Distribution Mechanisms: The central government’s reliance on direct cash transfers, such as the Jan Dhan-Aadhaar-Mobile (JAM) platform, has bypassed gram panchayats in beneficiary selection and grievance redressal.
  • It has minimized the traditional roles of panchayats in welfare delivery.
• Political Interference and Weak Autonomy: Local governance is frequently overshadowed by state politics, where village representatives have little say in actual policy implementation.
  • State governments control funds, and many Panchayat leaders act as mere implementers of state schemes rather than decision-makers for local development.
• Bureaucratic Hurdles and Capacity Deficit: Many Panchayat functionaries lack proper training, leading to poor governance and inefficiency in implementing developmental schemes like MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act) and PMAY-G (Pradhan Mantri Awas Yojana – Gramin).
• Impact of Rapid Urbanization: With rapid urbanization, the focus of policy has shifted towards cities and municipal reforms rather than rural governance.
  • In 1990, nearly 75% of India’s population lived in rural areas, but this has now declined to around 60%. It has affected the relevance and functioning of panchayats.

Revitalizing the Panchayati Raj System

• Strengthening Financial Autonomy: 15th Finance Commission has recommended increased funding for Panchayats, but timely allocation and effective utilization must be ensured.
  • Panchayats should be given power to collect local taxes to reduce dependency on state and central grants.
• Enhancing Administrative Capacity: Proper training programs should be conducted for Panchayat representatives to improve governance.
  • Use of digital governance tools can improve efficiency in fund management and service delivery.
• Reducing Political and Bureaucratic Interference: State governments must ensure greater autonomy for Panchayats by reducing bureaucratic control.
  • Panchayat elections should be conducted fairly without political influence.
• Strengthening Social Audits and Accountability Mechanisms: Regular social audits should be mandated to reduce corruption and improve transparency.
  • Gram Sabhas must be strengthened to allow active participation of villagers in governance.
• Women Empowerment in Panchayats: Strict laws should be enforced to prevent proxy representation in women-reserved seats.
  • Leadership training programs should be provided to women representatives.
• Integration with Digital India and E-Governance: The use of e-Panchayat initiatives can enhance transparency and efficiency in governance.
  • Digital literacy programs should be promoted in rural areas to improve citizen participation in governance.

Conclusion

• The Panchayati Raj system remains a powerful tool for decentralized governance, but it is currently in distress due to financial, administrative, and political challenges. 
• Strengthening Panchayats with adequate financial autonomy, capacity building, and accountability mechanisms can revitalize the movement. 
• Empowering local self-governance is not just a constitutional mandate but a necessity for ensuring holistic rural development in India.

Source: TH