PM IAS FEB 17 EDITORIAL ANALYSIS

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.
Key Committees Related To Panchayati Raj Institutions
– Balwant Rai Mehta Committee (1957): This landmark committee recommended the three-tier Panchayati Raj system, with Gram Panchayats (village level), Panchayat Samitis (block level), and Zilla Parishads (district level).
– Ashok Mehta Committee (1977): Focused on strengthening financial resources and functional autonomy of Panchayats.
– G.V.K. Rao Committee (1985): Emphasized the need for regular elections and greater participation of women and marginalized communities.
– L.M. Singhvi Committee (1986): Recommended measures to address financial constraints and improve administrative efficiency of Panchayats.
– P.K. Thungan Committee (1989): Proposed electoral reforms and devolution of more power and functions to Panchayats.
– Natarajan Committee (1996): Assessed the implementation of the 73rd Amendment and recommended further devolution of power and resources.
– Sachar Committee (2006): Highlighted the need for greater representation and empowerment of women in Panchayats.
– M.V. Rajwade Committee (2017): Reviewed the functioning of Gram Sabhas and recommended steps to enhance their participation and effectiveness.

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.

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