Panchayati Raj Movement in Distress: Challenges and Revival Strategies
Introduction
The Panchayati Raj movement in India, a landmark reform introduced through the 73rd Constitutional Amendment in 1992, aimed to institutionalize decentralization and empower local governance. However, recent developments indicate a decline in its effectiveness, raising concerns about its future relevance. The recent special discussion in Parliament on the 75th anniversary of the Indian Constitution hardly addressed this crucial issue, reflecting the diminishing focus on strengthening local governance.
Why is Panchayati Raj in Distress?
Several systemic factors have contributed to the weakening of the Panchayati Raj system:
1. Administrative Decentralization Stagnation
While decentralization initially gained momentum, state governments have failed to devolve administrative control effectively.
Less than 20% of states have transferred all 29 subjects listed in the Eleventh Schedule to Panchayats (as per the 2022 Ministry of Panchayati Raj report).
Lack of dedicated administrative staff at the Panchayat level hinders effective governance and implementation of policies.
2. Decline in Fiscal Autonomy
Direct transfers to Panchayats declined from ₹21.45 lakh crore under the 13th Finance Commission (2010-15) to ₹12.36 lakh crore under the 15th Finance Commission (2021-26).
Untied grants, which provide financial independence to local governments, have dropped from 85% to 60%.
Central schemes now dictate fund utilization, reducing the autonomy of local bodies.
3. Erosion of Panchayat’s Role in Welfare Distribution
The rise of Direct Benefit Transfer (DBT) schemes, facilitated through Jan Dhan-Aadhaar-Mobile (JAM) trinity, has diminished the role of Panchayats in beneficiary selection and grievance redressal.
Example: PM-KISAN scheme, which provides ₹16,000 annually to farmers, bypasses Panchayats, reducing local accountability.
4. Impact of Rapid Urbanization
India’s rural population has declined from 75% in 1990 to 60% today, shifting the policy focus towards urban governance.
Municipal governance reforms and urban development programs receive greater attention than rural local governance.
Success Stories Amidst the Crisis
Despite these challenges, some aspects of the Panchayati Raj system continue to thrive:
Increased Political Participation: Panchayat elections are highly competitive, with over 14 lakh elected women representatives, ensuring grassroots political representation.
Implementation of Social Sector Schemes: Local governments play a crucial role in programs related to health, education, and sanitation.
Strategies for Reviving the Panchayati Raj System
To reinvigorate local governance in India, the following strategies need urgent attention:
1. Re-establish Administrative Autonomy
State governments must devolve complete administrative control to Panchayats.
Panchayats should have authority over all 29 subjects in the Eleventh Schedule.
Recruitment and deployment of dedicated staff for Panchayats should be prioritized.
2. Enhancing Fiscal Empowerment
Increase untied grants to Panchayats for greater decision-making power.
Reduce dependence on centrally sponsored schemes, allowing flexible fund utilization at the local level.
3. Redefining Panchayats in the Digital Age
Digital technology can be leveraged to improve citizen engagement in local governance.
Panchayats should be equipped with e-Governance tools for better planning and implementation of development programs.
4. Strengthening Panchayats’ Role in Climate and Disaster Management
Panchayats can lead water conservation and renewable energy projects at the village level.
Local bodies should be integrated into community-based disaster risk management, ensuring early warning systems and disaster-resilient infrastructure.
5. Bridging the Rural-Urban Divide
A well-networked Panchayati Raj system can support safe migration and ensure social security for migrant workers.
Panchayats can act as facilitators for employment and skill development programs in rural areas.
Conclusion
India's rural population still constitutes over 94 crore people, with 45% of the workforce engaged in agriculture. The Panchayati Raj system cannot be allowed to stagnate. It is essential to redefine its role in contemporary governance, leveraging technology, ensuring financial autonomy, and strengthening administrative decentralization.
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By : team atharvaexamwise
