Grassroots Governance: Strengthening Panchayats for Sustainable Growth

Syllabus:  GS2/Governance; Government Policy & Intervention

Context

• Panchayats in India remain underutilized due to financial constraints, fragmented efforts, and limited institutional capacity.
  • Strengthening panchayats is essential for achieving holistic and inclusive development across India’s diverse rural landscape.

About the Panchayati Raj Institutions (PRIs) in India

Historical Evolution:

• Ancient Period: The concept of local self-governance in India dates back to ancient times, with Village Councils (Panchayats) playing a crucial role in local administration and dispute resolution. These councils were informal and operated based on local customs and traditions.
• British Era: During the early British period, the traditional Panchayat system was weakened due to the introduction of centralized revenue collection systems.
  • Reforms in the later British period, such as Lord Ripon’s Resolution (1882) and the Royal Commission on Decentralization (1907-09), sought to revive local self-governance.
• Post-Independence Era: The Constitution of India emphasized the importance of village Panchayats as units of self-governance.
  • The Balwant Rai Mehta Committee (1957) recommended the establishment of a three-tier Panchayati Raj system, which was implemented in Rajasthan in 1959. 
  • Subsequent committees, such as the Ashok Mehta Committee (1978), further refined the structure and functions of PRIs.
• Constitutional Recognition (1992): The 73rd Constitutional Amendment Act granted constitutional status to PRIs, making them a mandatory feature of governance in rural India.
  • It came into effect on April 24, 1993, thus April 24th is celebrated as the National Panchayati Raj Day every year.
  • It introduced a Three Tier System:
    • Gram Panchayat (Village Level): The lowest tier, responsible for addressing local issues such as sanitation, water supply, and rural housing.
    • Panchayat Samiti (Block Level): The intermediate tier, coordinating development programs across multiple villages.
    • Zila Parishad (District Level): The apex tier, overseeing and integrating development activities at the district level.
  • It mandated reservations for women, Scheduled Castes (SCs), and Scheduled Tribes (STs), and the appointment of a State Finance Commission to recommend the financial powers of Panchayats.

Key Features of the Modern Panchayati Raj System

• Decentralized Governance: PRIs enable decision-making at the grassroots level, ensuring that local needs and priorities are addressed effectively.
• Participatory Democracy: The system promotes citizen participation through Gram Sabhas (village assemblies), where residents can voice their concerns and influence decisions.
• Inclusive Representation: Reservations for women, SCs, and STs ensure that marginalized groups have a voice in governance.
  • Nearly 14 lakh women representatives have been elected to PRIs, showcasing the success of reservation policies.
• Integration with Development Goals: PRIs play a critical role in implementing government schemes and achieving SDGs at the local level.

Role of Panchayats in Grassroots Governance

• Localizing Development: Panchayats are uniquely positioned to tailor strategies to the specific socioeconomic, cultural, and environmental needs of villages.
  • Unlike top-down models, a panchayat-led approach ensures that development initiatives are contextually relevant and community-driven.
• Implementing Sustainable Development Goals (SDGs): The recently launched Panchayat Advancement Index (PAI) ranks over 216,000 panchayats on their progress in areas such as poverty alleviation, health, water sufficiency, infrastructure, and governance.
  • It underscores the critical role of panchayats in achieving India’s sustainable development agenda.  

Challenges Facing Panchayats in India

• Inadequate Financing: Most panchayats rely heavily on funds from higher tiers of government, with limited avenues for generating their own revenue.
  • A study by the Reserve Bank of India (RBI) revealed that in 2022-23, the average revenue per panchayat was ₹21.23 lakh, with only 1.1% coming from local taxes and fees.
• Technological and Digital Literacy Gaps: Limited technological infrastructure and low digital literacy hinder effective monitoring, evaluation, and reporting of progress.
  • Without digital tools, real-time tracking of SDG progress remains a challenge.
• Fragmentation in Rural Governance: Multiple government departments operate in villages without proper coordination, leading to duplication of work and inefficient use of resources.
  • The lack of convergence between different schemes and departments makes holistic development difficult to achieve.

Strengthening Panchayats for Development

• Enhancing Institutional Capacity: Targeted training programs to equip panchayat officials with technical and managerial skills.
  • Promoting digital inclusion to streamline administrative processes and improve governance.
• Enhancing Financial Autonomy: PRIs should be empowered to generate revenue through property taxes, market fees, and local businesses.
  • Timely devolution of funds from higher tiers of government is essential.
• Fostering Community Participation: Encouraging citizen involvement in decision-making processes to ensure local needs are addressed.
  • Strengthening transparency mechanisms for better accountability.
• Better Coordination Between Departments: Establishing integrated development plans that align efforts across multiple sectors.
  • Strengthening accountability measures to prevent resource wastage.

Key Initiatives and Efforts Strengthening Panchayats in India

• Infrastructure Development:
  • Funds For Gram Panchayat Bhawans: To ensure dedicated office premises for panchayats with populations exceeding 3,000.
  • Digital Infrastructure: To streamline governance.
• Financial Empowerment:
  • Own Source Revenue Training: Specialized modules have been introduced to help panchayats generate revenue through local taxes and fees.
  • Samarth Portal: It facilitates revenue generation and fund management for panchayats, promoting financial independence.
• Technological Integration:
  • eGramSwaraj: A digital governance initiative available in 22 languages, enabling transparent fund management and real-time monitoring.
  • SVAMITVA Scheme: Drone surveys have been conducted in 3.17 lakh villages, issuing over 2.19 crore property cards to empower rural property owners.
• Capacity Building:
  • Training for Women Representatives and Development of Panchayat Leaders: Specialized modules have been developed to strengthen the political voice of women in panchayats.
• Environmental and Social Initiatives:
  • Localized Climate Data: Over 2.5 lakh panchayats now receive weather forecasting data to support climate-resilient planning.
  • Community Engagement Campaigns like ‘Healthy Panchayat’ and ‘Siti Bajo aur School Aao’ to address health and education challenges.

Conclusion

• Strong panchayats are the cornerstone of grassroots governance and sustainable development in India.
• Addressing challenges such as inadequate financing, technological gaps, and fragmented efforts is crucial to unlocking their full potential.
• By enhancing institutional capacity, improving financial autonomy, and fostering community participation, panchayats can drive inclusive and holistic development, ensuring that no village is left behind.

Source: BS