The Panchayati Raj system in India is a decentralized form of

governance where local self-governments are set up at the

village, intermediate, and district levels to ensure grassroots
participation in the administration. The primary goal of the
Panchayati Raj Institutions (PRIs) is to empower rural
populations, promote local democracy, and facilitate
development at the grassroots level.

Constitutional Provisions and the 73rd Amendment

The 73rd Amendment to the Indian Constitution, which came

into force on April 24, 1993 . This amendment inserted Part
IX in the Constitution, which laid down provisions for the
establishment of Panchayats, and also added the Eleventh
Schedule listing 29 subjects that fall under the purview of
Panchayats.

The key features of the 73rd Amendment Act include:

 Gram Sabha:

The Act recognizes the Gram Sabha as a foundation for

the Panchayati Raj system, empowering the people at
the village level to make decisions on matters affecting
them directly.

 Three-Tier Structure:

The Panchayati Raj system is structured at three levels

—Gram Panchayat (village level), Panchayat Samiti
(intermediate level), and Zilla Parishad (district level).

 Direct Elections:

Panchayat members at all levels are directly elected by

the people for a five-year term. This ensures that power
resides with the people and that Panchayats are
accountable to them.

 Reservation of Seats:

A significant aspect of the 73rd Amendment is the

reservation of seats for women (at least one-third),
Scheduled Castes (SCs), Scheduled Tribes (STs), and
 other backward classes (OBCs). This promotes gender
equality and social justice in rural governance.

 State Election Commissions:

The establishment of State Election Commissions

ensures the smooth and fair conduct of Panchayat
elections.

 Powers and Functions:

The Panchayats are entrusted with the responsibility of

planning and executing various functions related to
rural development, social welfare, education, health,
water supply, and sanitation. They are involved in the
implementation of centrally and state-sponsored
schemes.

Structure of Panchayati Raj Institutions

The Panchayati Raj system in India is structured at three

levels, each responsible for different administrative and
developmental functions.

 Gram Panchayat (Village Level):

The Gram Panchayat is the lowest level of local

governance and is responsible for the administration of
a single village or a group of villages. It comprises a
Sarpanch (elected head) and members (Panchs), who
are elected directly by the village residents. The Gram
Panchayat is responsible for managing local resources,
implementing government schemes, and addressing the
needs of the village community.

 Panchayat Samiti (Intermediate Level):

The Panchayat Samiti functions at the block level,

overseeing multiple Gram Panchayats within a block. It
plays a critical role in coordinating the activities of
various Gram Panchayats and ensuring the effective
implementation of development programs. The
 Panchayat Samiti is headed by a Chairman, elected by
its members.

 Zilla Parishad (District Level):

The Zilla Parishad is the highest level of Panchayati Raj

Institutions and is responsible for coordinating and
monitoring the activities of the Panchayat Samitis. It
handles the implementation of state and national-level
programs at the district level. The Zilla Parishad is
headed by a Chairman, elected from among the
members.

Functions and Responsibilities of Panchayati Raj Institutions

 Rural Development:

Panchayats play a key role in the implementation of

government programs for rural development, including
the Mahatma Gandhi National Rural Employment
Guarantee Act (MGNREGA), National Rural Health
Mission (NRHM), and Pradhan Mantri Awas Yojana
(PMAY).

 Education and Health:

Panchayats are tasked with managing local schools,

healthcare centers, and sanitation programs. They are
responsible for ensuring that basic services such as
education and healthcare are accessible to all villagers.

 Agriculture and Irrigation:

The Panchayats are involved in promoting agricultural

activities, ensuring the availability of irrigation
facilities, and supporting farmers with subsidies, loans,
and training programs.

 Infrastructure Development:

Local governments are responsible for the construction

and maintenance of roads, public markets, drinking
water facilities, and rural electrification.

 Social Welfare:
 Panchayats help implement welfare schemes for
marginalized groups, such as women, children, the
elderly, and people with disabilities. They also oversee
the distribution of government welfare benefits.

 Environment and Forest Management:

Local bodies play a role in the management of natural

resources, promoting environmental conservation, and
sustainable agricultural practices.

Achievements of Panchayati Raj

Institutions
1. Decentralized Governance and Empowerment

The most significant achievement of PRIs is the

decentralization of power. Before the amendment, decision-
making was highly centralized. With the establishment of
Panchayats, local bodies are empowered to make decisions
related to local development, ensuring that the benefits of
governance reach rural areas.

2. Increased Political Participation

One of the key goals of the 73rd Amendment was to increase

political participation, especially among marginalized
sections of society. Panchayati Raj has played a pivotal role
in this regard. There is now a higher degree of involvement
of women, Scheduled Castes (SC), Scheduled Tribes (ST),
and other disadvantaged communities in local governance.
The reservation of seats for women (33%) and marginalized
groups has significantly contributed to their empowerment.

3. Improved Service Delivery

Panchayats have been responsible for the delivery of basic

services such as sanitation, water supply, and primary
health care. Several rural development programs, like the
Mahatma Gandhi National Rural Employment Guarantee Act
(MGNREGA) and the National Rural Health Mission (NRHM),
have been successfully implemented at the local level
through Panchayats.
4. Enhancing Rural Development

The Panchayati Raj system has been a key factor in

promoting rural development in India. Through local
participation, rural areas have been able to tap into
government schemes for infrastructure development,
agriculture, education, and healthcare.

5. Financial Devolution

The PRIs were also provided with financial devolution

through the creation of State Finance Commissions, which
recommend the distribution of resources between the state
and local bodies. This fiscal autonomy has enabled PRIs to
implement development schemes more effectively.

6. Transparency and Accountability

Panchayats are now required to hold regular meetings,

conduct audits, and submit reports on their functioning. This
has led to a greater degree of transparency and
accountability in the implementation of government
schemes. Public participation in decision-making has
encouraged local authorities to be more answerable to the
people

Challenges Faced by Panchayati Raj Institutions

1. Lack of Financial Autonomy

While Panchayats have been given some financial powers,

But these are often insufficient. Local bodies depend heavily
on state governments for financial resources, and the
allocation of funds is often inadequate.

2. Devolution of Power

Although the 73rd Amendment mandated the devolution of

power to Panchayats, the implementation has been slow and
uneven across different states. Many state governments
have not fully devolved administrative and financial powers
to Panchayats. While in some states, local bodies continue to
 lack the authority to make critical decisions regarding local
development.

3. Political Interference and Co-option

Panchayats, especially at the district and block levels, often

face significant political interference. Local elites, political
parties, and even government officials exert influence over
Panchayats, leading to inefficiency and corruption. This
reduces the autonomy of PRIs and prevents them from
effectively fulfilling their duties.

4. Limited Capacity and Lack of Skilled Personnel

A major constraint for Panchayats is their limited

administrative and managerial capacity. In many areas,
elected representatives of Panchayats lack the technical
knowledge and expertise needed to implement complex
development programs.

5. Gender Discrimination and Social Exclusion

Despite the reservation of 33% seats for women in

Panchayats, gender-based discrimination persists. In many
instances, women representatives are sidelined and are not
allowed to take real decisions. Similarly, marginalized
groups continue to face exclusion and a lack of real power.

6. Inadequate Infrastructure

Many Panchayats, particularly at the village level, lack the

basic infrastructure necessary to function effectively. This
includes poor office facilities, limited access to
communication technologies, and insufficient staff. This
Restricts the ability of Panchayats to perform their roles
efficiently.

7. Corruption and Mismanagement

In certain areas, Panchayats are also involve in corruption and

mismanagement of funds. Inadequate monitoring and weak
accountability structures led to the misuse of funds, which
affects the implementation of development schemes.
Reforms and Recommendations

To overcome these challenges, several reforms and initiatives

have been suggested:

Increased Financial Autonomy:

Panchayats need more control over financial resources.

Greater devolution of funds from the state government, and
improved mechanisms for raising local revenues, will help
enhance the capacity of PRIs to deliver services.

Decentralization of Administrative Power:

Full devolution of powers related to decision-making, planning,

and implementation of developmental schemes will enhance
the autonomy of Panchayats. The creation of an enabling legal
and institutional framework is essential for this.

Strengthening Accountability Mechanisms:

Effective monitoring and evaluation mechanisms, transparency

in financial dealings, and regular audits can help reduce
corruption and ensure accountability.

Social Inclusion:

Ensuring that women, Scheduled Castes, and Scheduled Tribes

are not only represented but also have real decision-making
power is crucial. Panchayats need to empower these
marginalized sections of society to play an active role in local
governance.

Improving Infrastructure:

Investments in infrastructure and technology can help PRIs

function more efficiently. This includes better office facilities,
improved access to information, and communication
technologies, and better transportation networks for rural
areas.