The Panchayati Raj System in India

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The Panchayati Raj System in India

Introduction:

The Panchayati Raj system is a cornerstone of India’s grassroots democracy, designed to promote local governance and ensure the involvement of rural populations in decision-making processes. 

  • Instituted by the 73rd Constitutional Amendment Act of 1992, the system aimed to empower local bodies and decentralise power to foster more inclusive development. 

Evolution of the Panchayati Raj System

  • Ancient Period: Village republics governed by Panchayats existed in Vedic times, as evidenced by references in ancient texts like Manusmriti and Mahabharata.
  • British Period: British policies weakened traditional Panchayats, and local governance was managed by district-level officials under the Zamindari and Ryotwari systems.
  • Post-Independence:
    • The Directive Principles of State Policy (Article 40) promoted the establishment of village Panchayats.
    • The Balwantrai Mehta Committee (1957) and Ashok Mehta Committee (1978) laid the groundwork for the three-tier and two-tier systems of Panchayats.
    • The 73rd Constitutional Amendment (1992) formalised the system, establishing a uniform structure with provisions for elections, reservations, and financial autonomy.

Achievements of Panchayati Raj

  • Democratic Participation:
    • Increased voter participation in Panchayat elections, fostering local democracy.
    • Over 14 lakh women representatives have been elected, ensuring gender inclusion in governance.
  • Strengthening Grassroots Governance:
    • Local implementation of social sector programs has improved governance at the village level.
    • Enhanced delivery of essential services such as sanitation, education, and rural health.

Challenges to the Panchayati Raj System

  • Limited Administrative Decentralisation:
    • States have not fully devolved all 29 subjects under the Eleventh Schedule of the Constitution.
    • Panchayats still lack adequate human resources and autonomy in governance.
  • Fiscal Constraints:
    • Overdependence on central grants and reduced unrelated funds from 85% (13th Finance Commission) to 60% (15th Finance Commission).
    • Delays in fund release by state governments hinder Panchayat-led development initiatives.
  • Changing Welfare Delivery Model:
    • Direct Benefit Transfers (DBT) have diminished Panchayat’s involvement in welfare scheme implementation.
    • Loss of powers related to beneficiary selection has weakened local accountability.
  • Impact of Urbanisation:
    • Rural-to-urban migration has shifted focus towards urban governance, reducing the relevance of Panchayats.

Improvement in the Functioning of Panchayats

  • Strengthening Administrative and Financial Powers:
    • Panchayats need greater control over the 29 subjects outlined in the Eleventh Schedule.
    • Enhanced financial independence through untied grants and empowered State Finance Commissions is essential for effective governance.
  • Improving Human Resources and Capacity Building:
    • Reviving the Rajiv Gandhi Panchayat Sashaktikaran Abhiyan to train Panchayat representatives.
    • Recruiting qualified support staff such as junior engineers, secretaries, and IT personnel.
  • Leveraging Technology for Governance:
    • Promoting digital governance tools, including GIS-based planning, interactive dashboards, and online grievance redressal systems to enhance transparency.

Status of Funding for Panchayati Raj Institutions (PRIs) in India

  • Local body grants from the Central Finance Commission provide funding to Panchayats.
  • Central-sponsored schemes have been a primary source of funding for social development programs.
  • State Finance Commissions review the financial distribution between the state and Panchayats, but the funds remain insufficient to meet the demands of local governance.

Recommendations to Reform Panchayati Raj Institutions (PRI) in India

  • Strengthening Administrative and Financial Autonomy:
    • Full devolution of the 29 subjects as mandated by the Constitution.
    • Increased untied grants and empowered State Finance Commissions to ensure adequate financial resources.
  • Enhancing the Role of the Gram Sabha:
    • Ensuring regular meetings of the Gram Sabha with mandatory quorums.
    • Increasing awareness and training programs, particularly to improve the participation of women.
  • Capacity Building and Recruitment:
    • Reviving training programs for Panchayat representatives.
    • Recruiting necessary staff such as junior engineers, IT experts, and secretaries.
  • Promoting Digital Tools:
    • Using ICT platforms to improve transparency and citizen engagement in Panchayat governance.
  • Collaboration with Self-Help Groups (SHGs):
    • Strengthening collaboration between SHGs and Panchayats to enhance financial access and local governance.
  • Establishing Independent State Election Commissions:
    • Ensuring autonomy and independence in conducting Panchayat elections to maintain democratic integrity.
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