Panchayati Raj is declining despite grassroots success

Source: The post Panchayati Raj is declining despite grassroots success has been created, based on the article “The panchayati raj movement is in distress” published in “The Hindu” on 17th February 2025

UPSC Syllabus Topic: GS Paper2- devolution of powers and finances up to local levels and challenges therein.

Context: The article discusses the decline of panchayati raj in India despite its success in grassroots democracy. It highlights issues like reduced autonomy, urbanization, and reliance on cash transfers. It suggests reforms to revive panchayats for rural development and governance.

For detailed information on Panchayat Raj Institution(PRI) in India read this article here

Why is the Panchayati Raj system important?

1. Decentralized Governance: Established by the 73rd Amendment (1992), it created a three-tier system at village, block, and district levels for better local governance.
2. Women’s Leadership: 50% reservation for women, SCs, and STs has led to 14 lakh women representatives, strengthening grassroots democracy.
3. Social Sector Implementation: Panchayats help execute key programs like MGNREGA and PM Awas Yojana, ensuring local development.
4. Large Rural Population: 94 crore Indians still live in villages, with 45% engaged in agriculture, making local governance crucial.

What are the major challenges faced by Panchayats?

Despite early success, Panchayati Raj is facing a decline due to multiple factors:

1. Limited Administrative Power:

• States have not fully transferred administrative control.
• Only 20% of states have given all 29 subjects listed in the Eleventh Schedule to panchayats.

2. Reduction in Financial Autonomy:

• Central transfers increased from ₹1.45 lakh crore (2010-15) to ₹2.36 lakh crore (2021-26).
• Untied grants have decreased from 85% (Thirteenth Finance Commission) to 60% (Fifteenth • Finance Commission), limiting local decision-making.

3. Decline in Local Accountability

• Direct benefit transfers (DBT) through Jan Dhan-Aadhaar-Mobile (JAM) platform bypass panchayats.
• Schemes like PM-KISAN (₹6,000 per year to farmers) are executed without panchayat involvement.

4. Impact of Urbanization

• In 1990, 75% of Indians lived in villages; now, only 60% do.
• The focus has shifted to urban governance and municipal reforms.

For detailed information on Issues with Panchayati Raj Institutions (PRIs) read this article here

How can the Panchayati Raj system be revived?

To strengthen panchayats, reforms are needed in various areas:

1. Improve Citizen Engagement: Technology can help in local planning, decision-making, and transparency.
2. Support Migration Management: Panchayats can assist migrants and their families to reduce distress migration.
3. Enhance Environmental Roles:

• Panchayats can lead water conservation and renewable energy initiatives.
• They can help manage common property resources with scientific and traditional knowledge.

4. Disaster Risk Management Panchayats can implement early warning systems, disaster-resistant infrastructure, and community preparedness programs.

What is the way forward?

Panchayats should not be treated as mere delivery agencies for government schemes. Rural governance must be revived to support 94 crore people still living in villages. A new vision for panchayati raj is needed to balance rural and urban development.

Question for practice:

Examine the factors contributing to the decline of the Panchayati Raj system in India and suggest reforms to strengthen it.