Context:
According to a recent report of the Ministry of Panchayati Raj and Indian Institute of Public administration, India has a state level devolution index (DI) measure of the decentralized actions across the country.
Key Highlights
- It measures institutional frameworks, financial strength, capacity building, and accountability of Panchayati Raj Institutions (PRIs).
- Devolution to rural local bodies, which improved from 39.9% in 2013-14 to 43.9% in 2021-22, ranked Karnataka highest at 72.23 indices.
- Southern states (Karnataka, Kerala, Tamil Nadu) performed well, while Manipur, Arunachal Pradesh, Jharkhand, and Punjab lagged.
- Uttar Pradesh and Bihar have made the largest changes over the past decade.
Key Challenges Faced by Panchayati Raj Institutions
- Financial Constraints
- GPs’ own revenue remains minimal, making them highly dependent on state and central funding.
- This was Kerala’s GP revenue share in 2021-22, highest GP revenue share, with only 2.84% of the state’s own revenues.
- Direct constitutions of State Finance Commissions (SFCs) mean worsened financial autonomy, while only 10 states have constituted their sixth SFC.
- The study by the Reserve Bank of India found that PRI revenue expenditure is less than 0.6% of Gross State Domestic Product (GSDP) in all states.
- Administrative and Infrastructure Gaps
- Severe staff shortages limit governance capacity at the grassroots level.
- Inadequate physical, digital, or any other infrastructure, with special emphasis in case of northeastern and hilly states.
- Representation and Accountability Issues
- Some states do not fulfill women reservations, e.g., Punjab, Madhya Pradesh, Karnataka, and Jammu & Kashmir.
- In contrast, other states such as Jharkhand, Tamil Nadu, and Chhattisgarh exceed the quotas.
- Lack of an accountability mechanism for local governments hampers transparency.
Recommendations for Strengthening PRIs
- Rotate terms of reservation from every election round to those in two or three tenures to reflect stability.
- Unify electoral rolls for Lok Sabha, Assembly, municipal, and GP elections to coordinate better.
- An on schedule constituting SFCs for regular funding to PRIs will be ensured.
- Grant GPs the right to levy property tax on all residential and commercial properties.
- Regularly recruit and train support staff to improve efficiency in administration.
- Improve transparency and accountability through a local government ombudsman.
While Panchayati Raj Institutions have improved themselves through the years, financial autonomy, administrative capacity, and accountability remain major concerns. To do that, India has to learn from successful decentralized governance mo
