In India, Panchayats are local government bodies that help run villages and rural areas. They play a vital role in making decisions about local development, like building roads, providing water, and organizing schools. A new government report has studied the condition of these panchayats in different states of India. The report looks at how well the panchayats are functioning, how much power they have, and how they are helping improve the lives of people in rural areas. The study, done by the Union Ministry of Panchayati Raj and the Indian Institute of Public Administration (IIPA), ranks the states based on how well they have devolved power to the panchayats.

Karnataka, Kerala, and Tamil Nadu are the top three states where panchayats are performing very well. These states have given enough power to their local governments to function effectively. On the other hand, states like Uttar Pradesh and Bihar have shown a lot of improvement in recent years. However, the study also points out some challenges that many panchayats still face, such as lack of funds, infrastructure, and technology.

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About the Panchayat Devolution Index

The Panchayat Devolution Index (PDI) is a tool developed by Indian Institute of Public Administration (IIPA) that helps evaluate the status of Panchayati Raj Institutions (PRIs) in various states in India. The measure focuses on how much power, responsibilities, and resources have been devolved to the panchayat, which is a local self-government body for rural areas. The index classifies states according to six important parameters: framework, functions, finances, functionaries, capacity, and accountability. These parameters are very important in assessing the performance of panchayats in local governance. The states receive scores on a scale of 0-100: the higher the score, the better the level of devolution. The index is helpful in charting the course of decentralization and recognizing the areas that are being resolved by panchayats or finding them hard to cope with. The latest report, published in 2024, reveals that states like Karnataka, Kerala, and Tamil Nadu are at the forefront of the devolution process, while states like Uttar Pradesh and Bihar have shown commendable improvement. The PDI is also an indicator of where the government must focus and may need to act in terms of giving additional support or reforms to enhance functioning by panchayats and strengthen grassroots democracy in India.

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Key Findings of the Devolution to Panchayats in States 2024 Report

The 2024 Panchayat Devolution Index (PDI) report tells us how well panchayats in different states are doing. The report looked at six main areas: framework, functions, finances, functionaries, capacity building, and accountability. Based on these factors, the states were given scores, and some states did much better than others.

• Top-performing States: States like Karnataka, Kerala, and Tamil Nadu are the leaders in empowering their panchayats. These states have given their local governments enough resources, powers, and responsibilities to help their communities grow.
• Improvement in Uttar Pradesh and Bihar: Uttar Pradesh and Bihar, which had weaker panchayats in the past, have made big improvements. These states have worked hard to give more power to their local bodies.
• More Panchayats: There are now 2.62 lakh panchayats in India, up from 2.48 lakh in 2013-14. This shows that more villages are getting their own local governments.

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Current Status of PRI Funding in India

Panchayats in India don’t earn enough money on their own. They mostly rely on money from the state and central governments to function.

• Money from the Government: In the year 2023-24, the states planned to give Rs 47,018 crore to panchayats, but only about Rs 10,761 crore was actually released by November 2023. This shows that the money that is promised is not always given on time.
• Low Revenue from Taxes: Panchayats earn only about 1% of their revenue through taxes. This means they don’t have enough money to run everything on their own and have to depend on other sources of funding.
• Help from Central and State Governments: Around 80% of the money for panchayats comes from the central government, and 15% comes from the state governments. This high dependence on external funds can slow down development work in many villages.

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Challenges Faced by Panchayati Raj Institutions in India

Despite some progress, panchayats in India face several challenges that make it hard for them to work efficiently. These challenges include:

• Poor Infrastructure: Many panchayats still don’t have proper buildings. Only a few states have 100% of their panchayat offices in pucca (strong, permanent) buildings. In states like Arunachal Pradesh, only a small percentage of panchayat offices are in pucca buildings.
• Lack of Technology: Some panchayats don’t have access to computers or the internet, making it difficult for them to function smoothly. Arunachal Pradesh and Odisha are examples where panchayats have limited access to technology.
• Financial Problems: The low amount of money that panchayats generate on their own through taxes makes them dependent on external funds. Without enough local resources, panchayats find it difficult to support their activities and provide services to their communities.
• Limited Representation of Women: Although there is a 50% reservation for women in panchayats, some states are not meeting this quota. States like Madhya Pradesh and Haryana have fewer women in panchayat positions than the required number. However, states like Odisha and Tamil Nadu have done well in ensuring high female representation.

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Way Forward

To make panchayats more effective, several changes are needed:

• Increase financial independence: Panchayats should be given a freer hand in self-generating revenue so that they become less dependent on government grants. This way, they can become more self-sufficient and more efficient in operating their services.
• Improving Infrastructure: All panchayat offices should have proper buildings, computers, and internet access. This would help panchayats to communicate better, track their work, and serve the public more efficiently.
• Building Capacities: Panchayat representatives need to be trained regularly so they can make informed decisions about the development of their communities. This will help them handle responsibilities effectively.
• Ensuring Equal Representation: States should ensure that women and other backward classes are properly represented in panchayats, which will lead to more inclusive governance.
• Strengthening Accountability: Panchayats should be made more accountable by introducing systems to monitor their activities and finances. This will make panchayats more transparent and trustworthy.

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UPSC Previous Year Question

Assess the importance of the Panchayat system in India as a part of local government. Apart from government grants, what sources can the Panchayats look out for financing developmental projects? (2018)

UPSC Mains Practice Questions

1. How do Panchayati Raj Institutions contribute to decentralized governance in India? Discuss the challenges they face and the measures needed to strengthen them.
2. Discuss the key findings of the Panchayat Devolution Index 2024. How does it reflect the progress of decentralization in India, and what are the major challenges that remain?