Panchayati Raj Movement is in Distress

Context: After 75 years of adoption of the Constitution of India and over 32 years of the enactment of the 73^rd Constitutional Amendment Act, the Panchayati Raj Institution (PRI) is going through a phase of decline. 

Relevance of the Topic:Mains: Critical analysis of the achievement and functioning of Panchayati Raj Institution. 

Background of the 73^rd Constitutional Amendment Act

• The 73rd Amendment (1992) institutionalised decentralisation in rural India by establishing a three-tier system (village, block, district levels).
• Key features: Regular elections, 50% reservation for women, SCs, and STs, democratic decentralisation and institution of State Finance Commissions to allocate funds.
• Despite initial success, the momentum of local governance has recently been stalled, and panchayats risk becoming irrelevant due to societal and technological changes.

Achievements of the Panchayati Raj Institution

• Increased political participation: Panchayat elections are keenly contested across states.
• Women’s leadership: 14 lakh+ elected women representatives have assumed leadership roles.
• Establishment of village level bureaucracy: Constitution has mandated State Finance Commission and administrative mechanism to strengthen the PRIs.
• Implementation of social sector programs: Gram panchayats play a key role in executing welfare schemes.

Decline of Panchayati Raj Institution

However, it is seen that the institution is going through a phase of decline, the general and systemic reasons leading to decline are:

1. General reasons for the decline:

• Declining public participation: Local governance is losing significance in decision-making.
• Overdependence on centrally sponsored schemes: Panchayats lack autonomy due to conditional funding.
• Politicisation: Panchayats are increasingly influenced by political parties, affecting their neutral functioning.

2. Systemic issues leading to decline:

• Stagnation in administrative decentralisation: 
  • State governments have not devolved staff and full control over 29 subjects listed in the Eleventh Schedule.
  • Less than 20% of states have fully devolved all 29 subjects (Ministry of Panchayati Raj Report, 2022).
  • Panchayats lack bureaucratic support and decision-making power.
• Reduced Fiscal Autonomy: 
  • While direct transfers increased from ₹1.45 lakh crore (13th FC) to ₹2.36 lakh crore (15th FC), untied grants fell from 85% to 60%.
  • Tied grants allow the central government to control local spending.
  • Thus, Panchayats are financially constrained and cannot decide their own development priorities.
• Shift in Welfare Delivery Model: 
  • Direct Benefit Transfers (DBTs) via Jan Dhan-Aadhaar-Mobile (JAM) have reduced panchayat involvement.
    • Example: PM-KISAN (₹6,000 per farmer annually) operates without panchayat participation, reducing local accountability.
• Rapid Urbanisation & Policy Shift: 
  • The rural population has declined from 75% (1990) to 60% (present); subsequently, the focus on urban governance and issues has increased.
  • Policy priority has shifted towards urban governance and municipal reforms.

Ways to revive Panchayati Raj Institution: 

• Strengthening Decentralisation:
  • Full devolution of 29 subjects under the Eleventh Schedule.
  • Increased untied funds for local decision-making.
  • Strengthening administrative autonomy by deploying staff at the panchayat level.
• Implementing technology for governance: Digital tools to enhance citizen participation in planning, budgeting, and grievance redressal.
  • A networked Panchayati raj system can bridge the rural-urban divide.
• Expanding Panchayat roles in key areas:
  • Migration support: Panchayats can assist in safe internal migration and ensure social security for migrant families.
  • Water conservation & renewable energy: Panchayats can manage common resources using scientific & traditional knowledge.
  • Disaster risk management: Implement early warning systems, resilient infrastructure, and community preparedness programs, disaster-resilient infrastructure, and capacity-building for residents.
• Strengthening women’s and marginalised groups’ participation:
  • Improve capacity-building programs for elected women representatives & SC/ST leaders.
  • Ensure gender-sensitive governance and reduce bureaucratic resistance to women-led panchayats.
• Balancing Rural-Urban development:
  • Recognise semi-urbanising villages and create rural-urban governance models (PURA Model).
  • Introduce special financial provisions for peri-urban panchayats dealing with rapid urbanization.
• Creating a National Policy for Panchayati Raj 2.0:

• Revisit the constitutional framework of local governance to align with modern challenges.
• Establish a national commission to reassess panchayat powers, finances, and roles in development.
• Ensure consistent monitoring and reform based on periodic performance evaluations.

Over 95 Crore people still live in rural India. A new vision is needed to redefine the role of panchayats in changing the development landscape of India.