The Panchayati Raj Movement is in Distress

Context

• The 73rd Amendment to the Indian Constitution, enacted in 1992, marked a transformative moment in India’s governance, introducing a decentralised system through panchayati raj institutions (PRIs).
• This amendment sought to bring democracy to the grassroots by establishing local self-government, ensuring representation, and empowering marginalised communities.
• However, despite its initial success, the panchayati raj system is currently facing a crisis due to systemic and policy-level challenges.

An Overview of Panchayati Raj System

• The Panchayati Raj System was introduced through the 73rd Constitutional Amendment Act, 1992, to establish decentralised governance at the grassroots level.
• The system is based on the principle of democratic decentralisation, giving power to local self-governments in rural areas.
• Its roots trace back to ancient India, but it was formally recommended by the Balwant Rai Mehta Committee (1957), which proposed a three-tier structure, Gram Panchayat, Panchayat Samiti, and Zila Parishad.
• The primary purpose of the system is to promote participatory democracy, empower rural communities, and ensure effective local administration.
• Panchayats have been given constitutional status under Article 243, with elections held every five years to ensure accountability.
• They are responsible for local governance, including rural development, sanitation, water supply, education, and poverty alleviation programs.
• States have been granted flexibility in structuring their PRIs, leading to variations across India.
• Over the years, the system has strengthened grassroots democracy but still faces challenges like lack of financial autonomy, political interference, and capacity building issues.

The Achievements of Panchayati Raj Institutions

• The panchayati raj system has made significant strides in democratising local governance.
• Elections to PRIs have become highly competitive, and political participation at the grassroots level has increased.
• One of the most notable achievements has been the empowerment of women in leadership roles, with nearly 14 lakh elected women representatives currently serving in panchayats.
• Furthermore, PRIs have played a crucial role in implementing various social sector programs, particularly in rural development initiatives.
• The Constitution mandated State Finance Commissions to allocate financial resources to local governments, ensuring that panchayats had the necessary funds to carry out their responsibilities.
• These achievements underscore the importance of panchayati raj institutions in developing inclusive and participatory governance.
• Despite these accomplishments, the panchayati raj system is facing a decline due to several structural and policy-related challenges.

The Decline of Panchayati Raj: Key Challenges

• Stagnation in Administrative Decentralisation
  • While the initial phase of the panchayati raj movement saw significant progress in administrative devolution, momentum has since stalled.
  • Effective local governance requires state governments to delegate administrative control and staff to PRIs, yet this has not been fully realised.
  • A 2022 report by the Ministry of Panchayati Raj revealed that less than 20% of Indian states have transferred all 29 subjects listed in the Eleventh Schedule of the Constitution to local bodies.
  • Without adequate administrative authority, panchayats struggle to function effectively.
• Erosion of Fiscal Autonomy
  • Financial autonomy is crucial for effective local governance, but panchayats have increasingly become dependent on centrally sponsored schemes.
  • While direct financial transfers to PRIs have increased over time, untied grants, which allow local governments to make independent decisions, have been significantly reduced.
  • The proportion of untied grants dropped from 85% under the Thirteenth Finance Commission (2010–15) to 60% under the Fifteenth Finance Commission (2021–26).
  • This reduction limits the flexibility of panchayats in addressing local issues, thereby weakening their decision-making power.
• The Changing Nature of Welfare Delivery
  • Over the past decade, India has witnessed a shift in welfare delivery mechanisms.
  • With the advent of digital financial systems like the Jan Dhan-Aadhaar-Mobile (JAM) platform, direct cash transfers have become a preferred method for implementing welfare schemes.
  • While this approach enhances efficiency, it sidelines PRIs, reducing their role in beneficiary selection and grievance redressal.
  • For instance, the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) scheme provides direct cash transfers to farmers, bypassing local governance structures.
  • This shift diminishes the accountability and engagement that PRIs traditionally ensured in rural welfare programs.
• The Impact of Urbanisation
  • India’s rapid urbanisation has also contributed to the declining relevance of PRIs.
  • In 1990, nearly 75% of India’s population lived in rural areas; today, this figure has decreased to around 60% and continues to decline.
  • As a result, policy priorities have increasingly shifted toward urban governance and municipal reforms, relegating rural development to the background.
  • This demographic change threatens to marginalise PRIs, as attention and resources are increasingly directed toward cities and towns.

Ways to Revitalising Panchayati Raj

• Strengthening Administrative and Fiscal Decentralisation
  • State governments must commit to fully devolving administrative powers and resources to PRIs.
  • This includes granting panchayats greater control over local staff and increasing the proportion of untied financial grants.
  • By doing so, PRIs can regain their autonomy and play a more proactive role in local decision-making.
• Leveraging Technology for Citizen Engagement
  • The integration of digital tools in governance presents an opportunity to strengthen citizen participation in local decision-making.
  • By adopting digital platforms for planning, monitoring, and accountability, PRIs can enhance transparency and efficiency in service delivery.
  • A networked panchayati raj system can also bridge the rural-urban divide by facilitating better coordination between urban and rural development initiatives.
• Reimagining the Role of Panchayats in Rural Development
  • PRIs can play a crucial role in addressing emerging challenges such as water conservation, renewable energy generation, and disaster risk management.
  • By leveraging scientific practices, traditional knowledge, and public financing, panchayats can contribute to sustainable development at the grassroots level.
  • Additionally, they can support internal migration by providing social security measures for migrant workers and their families.
• Reviving Public Participation in Local Governance
  • Efforts must be made to rekindle public interest and participation in the panchayati raj system.
  • Encouraging community involvement in decision-making, conducting awareness campaigns, and ensuring that local governance remains transparent and accountable can help restore trust in PRIs.

Conclusion

• The panchayati raj system was envisioned as a means to bring democracy closer to the people and empower local communities.
• However, systemic constraints, financial dependency, and shifting governance priorities have undermined its effectiveness.
• To ensure that PRIs remain relevant and impactful, India must adopt a renewed approach that prioritises administrative and fiscal decentralisation, integrates technological advancements, and redefines the role of panchayats in rural development.
• As 94 crore Indians still reside in villages, revitalizing the panchayati raj system is not just a necessity but a fundamental step toward inclusive governance and sustainable development.

Q1. What was the primary goal of the 73rd Amendment to the Indian Constitution?
Ans. It aimed to establish a decentralized governance system through panchayati raj institutions (PRIs) and strengthen local self-governance.

Q2. Why has the financial autonomy of panchayats declined in recent years?
Ans. The reduction in untied grants and increased dependence on centrally sponsored schemes have limited their financial independence.

Q3. How has urbanization affected the panchayati raj system?
Ans. With a declining rural population, policy focus has shifted towards urban governance, marginalizing PRIs.

Q4. What role can technology play in strengthening PRIs?
Ans. Digital tools can enhance citizen engagement, improve transparency, and bridge the rural-urban governance gap.

Q5. How can PRIs contribute to sustainable rural development?
Ans. By focusing on water conservation, renewable energy, disaster management, and internal migration support. 

Source:The Hindu