Granting Greater Authority to Panchayats

General Studies Paper -2

Context: A recent World Bank working paper has called for granting greater authority to Panchayats while strengthening local fiscal capacity to offset what it identified as “recentralisation”.

About

• Recentralisation is resulting from the widespread adoption of online payment systems, MIS-based beneficiary selection, and digital beneficiary tracking.
• The working paper highlighted the Gram Panchayat (GP) council members spend excessive time at Block Development offices and District Collectorates, acting as intermediaries rather than empowered decision-makers.

Recommendations

• Enhanced fiscal capacity and broader decision-making authority are deemed essential for improving governance.
• Empowering ward members (WMs) within village councils, who currently lack financial resources.
• Building local tax capacity is highlighted as vital for panchayat autonomy.
  • The improved tax collection can be achieved through filling bill collector vacancies, digitizing property records, and granting GPs more freedom to levy their own taxes and cesses.

Panchayati Raj System in India

• In the early 1950s, the first National Development Council (Balwant Rai Mehta Committee report) recommended the formation of a democratic system of governance at the grassroot level.
• In 1993, by the 73rd Constitutional Amendment Act, the Panchayat system came to be implemented in the rural areas to allow for development to happen at grassroot level.
• There are three levels:
  • Gram Panchayat: This is the village council, the most basic level.
  • Block Panchayat: This council looks after a group of villages.
  • Zila Panchayat: This is the district council, overseeing a larger area.
• Panchayati Raj is important because it brings democracy down to the village level.

Significance

• Decentralization of Power: The Panchayati Raj System decentralizes political power and administrative authority which empowers local communities to manage their own affairs and make decisions on local development issues.
• Promotion of Local Self-Government: It facilitates local self-government by providing a platform for villagers to participate in decision-making processes that affect their lives directly.
• Inclusive Development: PRIs ensure inclusive development by involving marginalized and vulnerable groups, such as women, Scheduled Castes (SCs), Scheduled Tribes (STs), and other backward classes, in local governance.
  • This helps in addressing social disparities and promoting social justice at the grassroots level.
• Accountability and Transparency: PRIs provide a platform for citizens to voice their concerns and hold local representatives accountable for their actions.
• Political Empowerment: The Panchayati Raj System serves as a training ground for grassroots leaders, nurturing political leadership at the local level.
  • It encourages political participation among citizens and prepares them for higher levels of governance.

Challenges

• Unequal Capacity and Resources: While some Panchayats are well-equipped with financial resources, infrastructure, and skilled personnel, others lack adequate resources and capabilities to effectively discharge their functions.
• Political Interference: In some cases, local Panchayats face interference from higher levels of political authority or local vested interests.
  • This undermine the autonomy and decision-making authority of local elected representatives, affecting the effectiveness of the Panchayati Raj institutions.
• Weak Financial Autonomy: PRIs often rely heavily on funds allocated by state and central governments, which can be delayed or insufficient.
  • This dependency affects their ability to plan and implement local development projects effectively.
• Social and Cultural Factors: In many rural areas, entrenched social hierarchies, caste dynamics, and gender biases influence local governance.
• Infrastructure and Service Delivery: Despite efforts to improve rural infrastructure and service delivery through PRIs, challenges such as inadequate roads, healthcare facilities, and educational institutions persist in many rural areas.

Way Ahead

• Addressing the concerns requires sustained efforts from both government authorities and civil society organizations.
• Strengthening the Panchayati Raj System involves enhancing financial autonomy, ensuring equitable distribution of resources, promoting inclusive governance practices, and empowering local communities to participate meaningfully in decision-making processes.
• By addressing these challenges, India can further harness the potential of decentralized governance to promote sustainable and inclusive development at the grassroots level.