IN NEWS:

2022 marked the 30th anniversary of the Panchayati Raj Institutions.

PANCHAYATI RAJ INSTITUTION:

The Panchayati Raj is a system of local self-government in India.

It is a three-tiered Indian administrative organisation for the development of rural areas.
Panchayati Raj Institution (PRI) aims to establish local self-government in villages, zones and districts.
PRI was established by the 73rd Constitutional Amendment Act, 1992.
It aims to promote democracy at grassroots level and to oversee the country's regional development.

SALIENT FEATURES OF 73RD AMENDMENT ACT OF 1992:

This act has added a new Part-IX to the Constitution of India.

This part is entitled as ‘The Panchayats’ and consists of provisions from Articles 243 to 243 O.
In addition, the act has also added a new Eleventh Schedule to the Constitution. This schedule contains
29 functional items of the panchayats. It deals with Article 243-G.
The act has given a practical shape to Article 40 of the Constitution
Justiciable part of the Constitution:
The act gives a constitutional status to the panchayati raj institutions. It has brought them under
the purview of the justiciable part of the Constitution.
In other words, the state governments are under constitutional obligation to adopt the new
panchayati raj system in accordance with the provisions of the act.
The provisions of the act can be grouped into two categories—compulsory and voluntary
Compulsory provisions:
Organisation of Gram Sabha in a village or group of villages.
Establishment of panchayats at the village, intermediate and district levels.
Direct elections to all seats in panchayats at the village, intermediate and district levels.
Indirect elections to the post of chairperson of panchayats at the intermediate and district levels.
21 years to be the minimum age for contesting elections to panchayats
Reservation of seats (both members and chairpersons) for SCs and STs in panchayats at all the
three levels.
Reservation of one-third seats (both members and chairpersons) for women in panchayats at all
the three levels.
Fixing tenure of five years for panchayats at all levels and holding fresh elections within six
months in the event of supersession of any panchayat.
Establishment of a State Election Commission for conducting elections to the panchayats.
Constitution of a State Finance Commission after every five years to review the financial position
of the panchayats.
The following areas have been exempted from the operation of the Act because of the socio-cultural
and administrative considerations:
Scheduled areas listed under the Schedule V of the Constitution.
The states of Nagaland, Meghalaya and Mizoram.
The hill areas of district of Darjeeling in the state of West Bengal for which Darjeeling Gorkha
Hill Council exists

PANCHAYAT RAJ INSTITUTIONS' SIGNIFICANT ACHIEVEMENTS:

Women’s representation increased:

 The most noteworthy development is significant women’s representation in Panchayats. The
proportion of elected women representatives has been steadily rising since the enactment of the
73rd amendment Act.
Currently, India has 260,512 Panchayats with 3.1 million elected representatives, of which a
record 1.3 million are women.
Thus far, this is India’s most transformative affirmative action policy for women as far as
grassroots politics goes.
While there is merely 7–8 percent representation in Parliament and State Assemblies for women
, an astounding 49 percent of elected local representatives (in states like Odisha it has crossed 50
percent) are women.
Healthy competition among states and improved democratic decentralization:
73rd amendment act has also created healthy competition among various states regarding
devolution (the 3Fs: funds, functions, and functionaries).
For example, while Kerala has devolved all 29 functions to Panchayats, Rajasthan took the
inspiration from Kerala to devolve many key departments such as health, education, women,
and agriculture to PRIs.
Similarly, Bihar came out with the idea of “Panchayat Sarkar” and states such as Odisha have
increased 50 percent seats for women.
In other words, democratic decentralisation has taken a deep root and looks very much
‘irreversible’.
Positive impacts due to political representation of women and SC/STs:
Various research using PRIs has shown that having female political representation in local
governments makes women more likely to come forward and report crimes.
Also, female PRI leaders are more likely to focus on issues pertinent to women.
For instance, Esther Duflo and Raghavendra Chattopadhyay, in a major field study involving the
working of PRIs in West Bengal and Rajasthan observed that women’s representation in the
local bodies has had a net positive impact on the delivery of local public goods (eg. greater
investments are made in drinking water) to marginalised communities.
They also show that SC sarpanch/pradhans are more likely to invest in public goods in SC
hamlets—an important change in the severely segregated villages of India.
In a country where access is determined by gender and caste, even more than economic status, these
changes are remarkable.

ISSUES FACED BY PRIs:

Lack of devolution of power by State government:

While some States like Kerala, West Bengal, Karnataka have devolved as many as 26 departments
to Panchayats, several States have devolved only as low as three functions.
In large number of cases, states that have devolved these departments to PRIs do so on paper. It
is respective line departments and bureaucrats who call the shots.
Parallel bodies to take over the functions assigned for Panchayat:
Many states have created parallel bodies to take over the functions assigned for panchayats.
For instance, recently the Haryana government created a Rural Development Agency under the
chairmanship of the chief minister to oversee the works of local bodies.
Little effort to build capacity:
Despite 30 years of their existence, there have been little efforts to strengthen the capacities of
these institutions.
Not only very few States have done some work on internalising the planning process (mapping core
activities) of panchayats, several States have not even paid any attention to build the capacities of
the newly elected representatives, many of whom are first-timers and belongs to the most
 vulnerable sections particularly the Scheduled Caste, Scheduled Tribes and women.
Inadequate financial powers:
Inadequate financial powers have kept these self-governing institutions at the mercy of state and
central governments.
Financial resources generated by PRIs fall far short of their requirements >> more than 93 per
cent of the total revenues of rural bodies were derived from external sources.
Further, their power of taxation has been very restricted. The major sources of income for local
governments like property tax etc. are woefully inadequate to meet their obligations both due to
their inherent nature and inefficiency in collecting them.
Issues with State Finance Commissions:
Recommendatory in nature
The recommendations of the Central Finance Commissions are not mandatory but from the
beginning, successive Union Governments have established a healthy tradition of
accepting the devolution package suggested by the Finance Commission without any
deviation.
However, this tradition has not been established in the States, as a result even if
recommended by the SFCs, State Governments often do not commit adequate resources
for the local governments.
No adequate emphasis on outcome of devolutions.
Although SFCs, while making their recommendations about devolution of funds also give
their recommendations on other matters affecting the resources of the local bodies, there has
not been adequate emphasis on the outcomes of such devolutions.
Politicization of PRIs:
It is being increasingly noticed that the Panchayati Raj Institutions are viewed only as
organisational arms of political parties, especially of the ruling party in the state.
Interference of MPs and MLAs:
The interference of area MPs and MLAs in the functioning of panchayats also adversely affected
their performance.
Proxy representation:
Though women and SC/STs has got representation in PRIs through reservation >> there is a
presence of Sarpanch-Pati and proxy representation in case of women and SC/STs
representatives respectively.
Issues with State Election Commission:
The tenure and conditions, qualifications and conditions of service of State Election Commissions
vary greatly across States
Unscientific distribution of functions:
Distribution of functions between the structures at different levels has not been made along
scientific lines.
The blending of development and local self-government functions has significantly curtailed
the autonomy of the local self-government institutions >> again it has converted them into
governmental agencies.
Incompatible relation between the three-tiers:
The three-tiers do not operate as functional authorities. The tendency on the part of the higher
structure to treat the lower structure as its subordinate is markedly visible.
Lack of accountability:
In many cases, local governments face the problems of corruption, patronage, arbitrary exercise of
power and inefficiency which have bedevilled governance. This failure is part of a larger process of
democratic evolution.

STEPS TAKEN TO STRENGTHEN PRIs:

 Rashtriya Gram Swaraj Abhiyan (RGSA):
It is a centrally sponsored scheme.
It aims for developing and strengthening the capacities of Panchayati Raj Institutions (PRIs)
for rural local governance to become more responsive towards local development needs.
e-GramSwaraj:
To strengthen e-Governance in Panchayati Raj Institutions (PRIs) across the country, Ministry of
Panchayati Raj (MoPR) has launched eGramSwaraj, a user friendly web-based portal.
It unifies the planning, accounting and monitoring functions of Gram Panchayats.
AuditOnline:
As a critical institutional reform, Ministry of Panchayati Raj has launched the AuditOnline
application in 2020 for carrying out online Audits of Panchayat accounts.
People’s Plan Campaign (PPC)- Sabki Yojana Sabka Vikas
The central government launched People's Plan Campaign, also known as “Sabki Yojana Sabka
Vikas” from September 2019.
It aims to draw up Gram Panchayat Development Plans (GPDPs) in the country and place
them on a website where anyone can see the status of the various government’s flagship schemes.
National Institute of Rural Development and Panchayati Raj
It is an autonomous organisation under the Union Ministry of Rural Development and is a
premier national centre of excellence in rural development and Panchayati Raj.
It builds capacities of rural development functionaries, elected representatives of PRIs,
bankers, NGOs and other stakeholders through inter-related activities of training, research and
consultancy
National Panchayat Awards:
Under this programme best performing Panchayats were selected based on various criteria and
indicators.
SWAMITVA Scheme
SWAMITVA stands for Survey of Villages and Mapping with Improvised Technology in
Village Areas
The scheme aims to provide the ‘record of rights’ to village household owners possessing
houses in inhabited rural areas in villages and issuance of property cards to the property owners
>> This empowers PRIs with better data on land ownership.

WAY FORWARD:

Capacity building:
Training of elected representatives and personnel should be regarded as a continuing activity.
State Governments should encourage local bodies to outsource specific functions to public or
private agencies, as may be appropriate, through enabling guidelines and support.
A pool of experts and specialists (e.g. engineers, planners etc.) could be maintained by a
federation/consortium of local bodies. This common pool could be then accessed by the local bodies
whenever required for specific tasks.
More devolution of financial powers to the PRIs
This is the need of the hour to make them as viable institutions to effect change in the socio-
economic development of the rural India.
Role of Union Government in ensuring devolution of power to PRIs:
The Union Government also needs to financially incentivize states to encourage effective devolution
to the panchayats in functions, finances, and functionaries.
Recommendations of 2nd ARC:

Devolution of Powers and Responsibilities

There should be clear delineation of functions for each level of local
government in the case of each subject matter law.
Electoral process:
The task of delimitation and reservation of constituencies should be
entrusted to the State Election Commissions
Local government laws in all States should provide for adoption of the
Assembly electoral rolls for local governments without any revision of
names by SECs.
Reforms in SECs
State Election Commission should be brought under the control of the
Election Commission of India. Such a measure would give the State
Election Commission the required independence from State Governments
and they would be able to discharge their duties in an objective manner.
Constitution of Legislative Council
Parliament should provide for constitution of a Legislative Council in each
State, consisting of members elected by the local governments.
Accountability and Transparency
Evaluation of Performance of Local Bodies:
Local bodies have to be evaluated in terms of efficiency, effectiveness
and resource mobilisation, apart from the efforts to promote
participation and transparency as indicated above.One way of
achieving this would be to benchmark the performance of local
bodies.
Legislative Oversight:
Howsoever independent the third tier of governance may become, it
should still be responsible to the State Legislature.The Commission
is of the considered view that legislative supervision can be ensured
by institutionalising a separate Committee on Local Bodies in the
State Legislature.
Independent Grievance Redressal Mechanism (Local Body
Ombudsman):
This would provide a platform to the citizens for voicing their
complaints and also bring out the deficiencies in the system for
suitable remedial action.
Social Audit
Institutionalising a system of social audit is essential for improving
local service delivery and for ensuring compliance with laws and
regulations.
An effective system of social audit will have to be based on two
precepts; first, that service standards are made public through
citizens’ charters and second, that periodic suo motu disclosure is
made on attainment of service delivery standards by the local
bodies.
Social audit processes are also important to ensure effectiveness.
 For extra reading: https://ilearncana.com/details/Role-of-Panchayati-Raj-
Institutions/2489

PRACTICE QUESTION:

Q. “PRI has been in existence for 30 years in its current shape and organisation. However, there is still more
work to be done in terms of decentralisation and strengthening democracy at the grassroots level.” Discuss.