THE PANCHAYATI RAJ MOVEMENT IS IN DISTRESS

THE CONTEXT: The 73rd Amendment to the Indian Constitution, enacted in 1992, established the Panchayati Raj system for decentralized governance. However, a recent report reveals that less than 20% of Indian states have fully devolved all 29 subjects listed in the Eleventh Schedule to local bodies, indicating a decline in the effectiveness of Panchayati Raj Institutions (PRIs) despite initial successes.

DISTRESS IN PANCHAYATI RAJ SYSTEMS:

• • Inadequate Devolution of Powers: Only 18 states have devolved all 29 subjects listed in the Eleventh Schedule to PRIs. Lack of administrative control and staff devolution from state governments hinders effective local governance.
  • Financial Constraints: PRIs earn only 1% of their revenue through taxes, indicating weak fiscal autonomy. Reducing untied grants from 85% (13th Finance Commission) to 60% (15th Finance Commission) limits local decision-making.
  • Changing Governance Paradigm: The shift towards direct benefit transfers (DBT) through the JAM (Jan Dhan-Aadhaar-Mobile) trinity has reduced PRIs’ role in beneficiary selection and grievance redressal. Centrally sponsored schemes often bypass PRIs, diminishing their relevance in local development.
  • Urbanization Challenges: Rapid urbanization (rural population decreased from 75% in 1990 to about 60% currently) has shifted policy focus towards urban areas. Many de facto urban areas remain classified as rural, leading to governance mismatches and inadequate service provision.
  • Capacity and Training Issues: There are insufficient training and capacity-building programs for elected representatives and functionaries. The Second Administrative Reforms Commission highlighted the need for enhanced skills and knowledge in local governance.
  • Political Interference: Excessive politicization of PRIs through political party engagement undermines their autonomy. State-level political interference often hampers decision-making at the local level.
  • Social and Gender Biases: Despite 50% reservation for women, deep-rooted social hierarchies often impede effective participation. Caste-based discrimination and groups continue to affect PRI functioning in many areas.
  • Multiplicity of Agencies: Lack of coordination among various rural development agencies leads to duplication of efforts and inefficient implementation. PRIs often lack the capacity to address pressing environmental issues like water conservation and renewable energy generation.

IMPACT OF DISTRESS IN PANCHAYATI RAJ SYSTEM ON RURAL DEVELOPMENT:

• • Weakened Local Governance: The reduced effectiveness of PRIs in addressing local needs has led to a governance deficit at the grassroots level. Only 18 states have devolved all 29 subjects listed in the Eleventh Schedule, hampering comprehensive regional development. The principle of subsidiarity, which advocates for decisions to be made at the lowest appropriate level, is compromised.
  • Limited Fiscal Resources: PRIs earn only 1% of their revenue through taxes, indicating weak fiscal autonomy. Reducing untied grants from 85% (13th Finance Commission) to 60% (15th Finance Commission) has constrained local decision-making and project implementation. This fiscal constraint has led to a dependency syndrome, with PRIs relying heavily on state and central funds.
  • Diminished Role in Social Welfare: The shift towards direct benefit transfers (DBT) through the JAM trinity has reduced PRIs’ role in beneficiary selection and grievance redressal. This has led to a disconnect between local needs and welfare program implementation, potentially reducing the efficacy of social welfare schemes.
  • Widening Rural-Urban Divide: With rapid urbanization (the rural population decreased from 75% in 1990 to about 60% currently), the policy focus has shifted towards urban areas. This has led to neglect of rural infrastructure and services, exacerbating the rural-urban divide. The concept of “Rurban” clusters, which aims to bridge this gap, has not been effectively implemented through PRIs.
  • Underutilization of Local Knowledge: The decreased incorporation of traditional and community-specific solutions has led to a mismatch between development initiatives and local contexts. This is particularly evident in areas like water conservation and sustainable agriculture, where local wisdom could be invaluable.
  • Weakened Disaster Management Capabilities: PRIs have limited capacity to implement community-based disaster risk management programs. This is critical given India’s vulnerability to various natural disasters, as highlighted in the National Policy on Disaster Management (NPDM). The potential of PRIs in early warning systems and local resilience building remains largely untapped.
  • Reduced Accountability: Weakened local oversight mechanisms have led to reduced transparency in development programs. The institution of Gram Sabha, which could ensure accountability, has not been effectively utilized.

THE WAY FORWARD:

• • Enhance Administrative Decentralization: Implement the recommendations of the L.M. Singhvi Committee (1986) to recognize PRIs and ensure free and fair elections7 constitutionally. Encourage states to devolve all 29 subjects listed in the Eleventh Schedule, as only 18 states have done so thus far. Adopt the “activity mapping” approach to delineate functions between different tiers of governance.
  • Restore Fiscal Autonomy: Increase the proportion of untied grants to panchayats, reversing the trend from 85% (13th Finance Commission) to 60% (15th Finance Commission). Strengthen State Finance Commissions to recommend appropriate fund allocation, as mandated by the 73rd Amendment Act. Implement the recommendations of the 2nd Administrative Reforms Commission for enhancing PRIs’ financial autonomy.
  • Leverage Technology for Citizen Engagement: Implement e-Panchayat Mission Mode Project to digitize PRI operations and enhance transparency. Utilize blockchain technology for maintaining land records and ensuring tamper-proof documentation. Develop mobile applications for real-time citizen feedback and grievance redressal.
  • Redefine Panchayat Roles in Modern Context: Focus on Sustainable Development Goals (SDGs) localization through PRIs. Empower panchayats in managing common property resources, drawing inspiration from successful models like Joint Forest Management. Integrate PRIs with the National Rural Livelihood Mission for enhanced economic development.
  • Strengthen Disaster Management Capabilities: Implement the recommendations of the National Policy on Disaster Management (NPDM) at the PRI level. Develop community-based early warning systems and disaster-resilient infrastructure. Train PRI members in climate change adaptation and mitigation strategies.
  • Bridge Rural-Urban Divide: Implement the “Rurban Mission” effectively through PRIs to develop cluster-based urbanized villages. Involve panchayats in supporting safe and dignified internal migration, addressing issues highlighted in the Economic Survey 2016-17. Develop programs to support both migrants and their families in rural areas, inspired by Kerala’s Kudumbashree model.
  • Enhance Capacity Building: Implement comprehensive training programs for elected representatives, focusing on the 3Fs: Functions, Finances, and Functionaries. Establish Panchayat Resource Centers in every district for continuous skill development. Collaborate with academic institutions to develop specialized courses on local governance.
  • Promote Women’s Leadership: Implement mentorship programs to build on the success of women’s participation (14 lakh elected women representatives). Address socio-cultural barriers through targeted awareness campaigns and support systems. Implement the recommendations of the High-Level Committee on the Status of Women (2015) to enhance women’s participation in PRIs.

THE CONCLUSION:

India must adopt a three-pronged approach: technological integration through initiatives like blockchain-enabled governance and AI-powered planning tools; fiscal empowerment by increasing untied grants beyond the current 60% threshold; and capacity building through specialized training programs for 14 lakh elected representatives. This transformation and integration with emerging priorities like climate resilience and digital governance, can help realize the vision of true Gram Swaraj in the 21st century.

UPSC PAST YEAR QUESTION:

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

MAINS PRACTICE QUESTION:

Q. Examine how the changing paradigm of welfare delivery through direct benefit transfers has impacted the relevance of Panchayati Raj Institutions in India. Suggest measures to revitalize their role in rural governance.

SOURCE:

https://www.thehindu.com/opinion/lead/the-panchayati-raj-movement-is-in-distress/article69227007.ece