The panchayati raj movement is in trouble.

The 73rd Amendment to the Indian Constitution

• Established the panchayati raj system, a key part of India’s constitutional republic journey.

• The amendment initiated decentralisation in rural India, emphasizing local representation and inclusion in political leadership.

Panchayati Raj Elections

• Panchayati raj elections are now widely contested, with significant success stories, including women’s participation in leadership.

• The Constitution mandates State Finance Commissions to recommend the amount of funds and administrative mechanisms for local governments.

Decline of Panchayati Raj Movement

• Decrease in public participation, overdependence on centrally sponsored schemes, and politicisation through political parties are contributing factors to the decline of panchayats.

• Long-term systemic factors have affected the evolution of the panchayati raj movement, with a risk of the spirit of the panchayati raj movement dying.

Big Shifts in Panchayati Raj

• Administrative decentralisation has plateaued, with less than 20% of states devolving all 29 subjects listed in the Eleventh Schedule of the Constitution.

• Panchayats have been forced to cede fiscal autonomy, with direct transfers to panchayats increasing from ₹1.45 lakh crore under the Thirteenth Finance Commission (2010-15) to ₹2.36 lakh crore under the Fifteenth Finance Commission (2021-26).

• The reimagination of the welfare state in India has led to a reduction in the role of gram panchayats as intermediaries for beneficiary selection or grievance redress.

• Rapid urbanisation has led to a shift in policy focus from rural areas to cities and towns, with municipal reforms being the main priority.

Reviving Panchayati Raj System

• Panchayats need to be revived in substantive terms, with advancements in technology enabling citizen engagement in local planning, decision-making, and accountability processes. • A networked panchayati raj system could support safe and dignified internal migration, water conservation, renewable energy generation, community-based disaster risk management, and capacity-building for residents