Role of Panchayati Raj in strengthening local governance

Indian Express

23-04-2025

(The Indian Express has launched a new series of articles for UPSC aspirants written by seasoned writers and scholars on issues and concepts spanning History, Polity, International Relations, Art, Culture and Heritage, Environment, Geography, Science and Technology, and so on. Read and reflect with subject experts and boost your chance of cracking the much-coveted UPSC CSE. In the following article, Dr. Akhil Kumar explores the evolution of the Panchayati Raj Institutions.)
Recognising the significant role of panchayats in local governance, the government on April 9 launched the Panchayat Advancement Index (PAI) – 'a key metric for assessing progress at the grassroots level and aiding in the formulation of localised strategies and targets for inclusive rural development'.
Additionally, the 2024 index published by the Union Ministry of Panchayati Raj and the effort towards addressing the practice of 'Pradhan Pati' or 'Mukhiya Pati' speaks volumes about the significance attached to the Panchayat Raj Institutions in strengthening an inclusive grassroots governance. But how has this institution evolved from traditional panchayats to constitutional local bodies over time ? Let's explore.
Evolution of Panchayati Raj Institutions
The Panchayati Raj Institutions play a very important role in the rural hinterland of India in the decentralisation of power and governance to the grassroots level. While these local self-governing bodies were formally institutionalised and strengthened through the 73rd and 74th Constitutional Amendments in 1992 – conferring the constitutional status upon rural local bodies (panchayats) and urban local bodies (municipalities) – their origins dates back to times immemorial. Traces of early forms of the panchayat raj system can be found in Vedas, Kautilya's Arthashastra, the Mauryan empire and other historical sources.
Over the decades, the institutions of the panchayat raj system have undergone significant changes in the pre and post-independence years. During British colonial rule, Lord Mayo's resolution of 1870 ushered in the decentralisation of power and advocated the devolution of finances to develop the villages and towns.
Lord Ripon's reforms in 1882 are considered a 'pioneering' framework for local governance in British India, as they recommended that the smallest administrative units must be placed under the auspices of local boards. Later, in 1909, the Royal Commission on Decentralisation, led by Sir Henry William, examined the functioning of these local boards and identified the lack of representation and inadequate powers as major constraints in their effective functioning. The commission made a few recommendations which were later incorporated in the the Government of India Act, 1919.
After attaining independence in 1947, India laid greater emphasis on decentralisation of administration to promote local self-governance in its villages. On November 25, 1948, K Santhanam, a Gandhian and a member of the Constituent Assembly, insisted upon the Chairman of the Drafting Committee to insert/include an amendment in support of this vision.
As a result, during the framing of the Constitution, a special provision on decentralisation was embedded in the Directive Principles of State Policy under Part IV in Article 40. The article states: 'The State shall take steps to organise village panchayats and endow them with such powers and authority as may be necessary to enable them to function as units of self-government.'
Community development programme, precursor to panchayats
As a precursor to the Panchayati Raj Institutions, the community development programme was initiated by the government during the First Five-Year Plan (1951-55). After independence, India grappled with several challenges, including food scarcity, poverty, and unemployment. The community development programme was introduced as a remedial measure aimed at involving all communities in rural areas in the process of development.
Prior to the inception of this programme, India had undertaken certain community development projects. Some notable initiatives were the Sriniketan Institute of Rural Reconstruction by Rabindranath Tagore in 1921/1922; the Marthandam Experiment by Dr. Spencer Hatch through the Young Men's Christian Association (YMCA) in Kanyakumari, Tamil Nadu; and the Firka Development Scheme by T. Prakasam in 1946 in the Madras presidency, to name a few.
Although major activities such as agricultural development (including land development, supply of fertilisers and pesticides), irrigation (such as digging wells), laying roads, prevention of epidemics were taken up under the community development programme, it did not yield the desired results. The programme faced challenges like lack of people's participation, bureaucratic red-tapism, and corruption. A study conducted by the Planning Commission found that artisans were neglected, and that only areas with existing irrigation facilities and large landholdings benefitted.
Three-tier system
Hence, the government constituted a committee in 1957 under the chairmanship of Balwant Rai Mehta to suggest improvements. In its report, the committee suggested the decentralisation of governance from the village to the district level. It proposed a three-tier structure – at the lowest level, the Village Panchayats, at the intermediary (taluk or block) level, Panchayat Samitis, and at the highest level, the Zilla Parishads. Rajasthan emerged as the first state to implement the proposed model on October 2, 1959, followed by Andhra Pradesh in November 1959.
To address the ineffective implementation of the proposed three-tier structure and to identify the lacunae in the functioning of these Panchayati Raj Institutions, a new committee was constituted under the chairmanship of Ashok Mehta in 1977 during the tenure of the first non-Congress government led by the Janata party. The committee recommended replacing the three-tier structure with a two-tier system, with Mandal Panchayats at the bottom and the Zilla Parishads at the top.
It also advocated for the reservation of seats for Scheduled Castes and Scheduled Tribes based on their population to safeguard their interests. Most importantly, it endorsed the participation of political parties in panchayat raj affairs. However, the implementation of these recommendations remained limited due to factors such as maintaining uniformity in a diverse nation and finances and other constraints.
Subsequently, several committees were formed over the years to review the functioning of the Panchayati Raj Institutions from time to time such as Hanumantha Rao Committee (1983), GVK Rao Committee (1985), L M Singhvi Committee (1986), P K Thungan Committee (1989) and Harlal Singh Kharra Committee (1990).
Evaluating the Functioning of panchayats
From the late 1980s onwards, the government made several attempts to empower Panchayati Raj Institutions by granting them constitutional status, with various amendments introduced in 1989, 1990, and 1991. It was during the tenure of the P V Narasimha Rao government when the goal was finally achieved in December 1992, with both Houses of Parliament passing the amendment which was ratified by 17 state assemblies.
Thereafter, two new parts were added to the Constitution: Part IX for 'The Panchayats,' and Part IX A for 'The Municipalities'. According to the Ministry of Panchayati Raj's Annual Report 2024-25, there are 2,55,397 gram panchayats, 6,742 intermediary panchayats, and 665 district panchayats in India.
To evaluate the functioning of the Panchayati Raj Institutions, the government devised the Panchayat Devolution Index to assess every state's performance of its local bodies across various dimensions such as finances, accountability, capacity building and others. This index was based on the concept paper presented by V N Alok and Laveesh Bhandari in 2004, which outlined three dimensions: Functions, Finances, and Functionaries (3Fs). Later, three other parameters – Capacity Building, Accountability, and Framework – were added to the index.
In the recently released Panchayat Devolution Index, Karnataka secured the top position followed by states such as Kerala, Tamil Nadu and others. The Ministry of Panchayati Raj released this index based on a study conducted by the Indian Institute of Public Administration (IIPA). The index also identified several challenges in the functioning of these institutions such as the lack of financial autonomy, financial constraints, transparency, inadequate human resources, holding elections and updating electoral rolls.
The Ministry also introduced the e-Gram Swaraj application to enhance the functioning of Panchayat activities. However, the lack of digital literacy came out as a major constraint, limiting its ability to strengthen the institutions. Such factors hinder the Panchayati Raj Institutions from functioning effectively and executing various socio-economic welfare programmes introduced by the governments to strengthen grassroots governance.
Post Read Questions
What were the earliest references to local self-governance? How did colonial administrative reforms, such as Lord Mayo's resolution of 1870, shape the early structure of village governance?
The 73rd amendment to the Constitution is seen as one of the landmark developments in India's journey as a constitutional republic, establishing the panchayati raj system. Comment.
How does the Ministry of Panchayati Raj assess the performance of these institutions across different states? What are the core dimensions of the Panchayat Devolution Index, and how has it evolved since its inception in 2004?
How does the e-Gram Swaraj application aim to improve Panchayat functioning?
Despite constitutional backing and digital interventions, why do Panchayati Raj Institutions still struggle with financial autonomy and transparency? Suggest the way forward.