A Review of Village Government in India

#### Syllabus: Polity: Panchayati Raj

#### Source: BS

Context: The World Bank Group released a Policy Research Working Paper titled “Two Hundred and Fifty-Thousand Democracies: A Review of Village Government in India,” analyzing the impact of the 73rd Constitutional Amendment on India’s democratic path.

What is Panchayati Raj (PRI)?

A Panchayati Raj Institution (PRI) is a local self-government system in rural areas of India, established to decentralize administration and promote grassroots democracy.

What was the 73rd Constitutional Amendment?

It added Part IX to the Constitution, encompassing provisions from Article 243 to 243-O. Its salient features include the establishment of Gram Sabha as a permanent unit comprising all registered village residents and the implementation of three tiers of Panchayati Raj Institutions (PRIs) at the village, intermediate, and district levels, although states with populations below 20 lakh may not have the intermediate level. Additionally, the amendment mandates reservation of seats for Scheduled Castes (SCs) and Scheduled Tribes (STs) at every level of the Panchayat, proportionate to their population, along with 1/3rd reservation of seats for women.

The 73rd Constitutional Amendment of 1992, sought to revolutionize rural governance in India by empowering Panchayats with greater autonomy and resources. While this amendment ushered in a new era of decentralization, Panchayats have yet to fully realize their potential as effective entities for planning and service delivery in rural areas.

Competitive political landscape post the 73rd constitutional amendment:

• Increased Political Participation: The amendment led to a surge in political participation at the grassroots level, with more candidates contesting Panchayat elections.

• Empowerment of Marginalized Communities: Reserved seats for marginalized communities, including Scheduled Castes, Scheduled Tribes, and women, played a pivotal role in enhancing political competition. Eg: 21 states in India have reserved 50% of seats in Panchayati Raj institutions (PRIs) for women.

• Eg: 21 states in India have reserved 50% of seats in Panchayati Raj institutions (PRIs) for women.

• Formation of Multiple Political Parties: The competitive landscape saw the emergence of multiple political parties at the local level, leading to a vibrant political environment within Panchayats.

• The shift in Power Dynamics: The competitive nature of Panchayat elections signalled a shift in power dynamics, emphasizing the importance of local governance in shaping policies and addressing community-specific issues.

• Enhanced Accountability: The competitive political landscape was envisioned to enhance accountability as elected representatives would be mindful of their performance to secure re-election in subsequent terms.

Key Findings of the World Bank Report:

• Funding Dependency: PRIs rely heavily on grants from state and national authorities.

• Shortage of Functionaries: Scarcity of Panchayat Secretaries, with an average of 0.67 per Gram Panchayat.

• Recentralization Trends: Local government autonomy eroded by MIS-based beneficiary selection and digital tracking.

• Revenue Composition: Only 1% of revenue is generated by taxes, majority from grants.

• Revenue Per Panchayat: Average tax revenue per panchayat is Rs 21,000, while grants from central and state governments total Rs 17 lakh and Rs 3.25 lakh respectively.

• Inter-State Disparities: Kerala and West Bengal lead in revenue per panchayat, while Andhra Pradesh, Haryana, Mizoram, Punjab, and Uttarakhand lag behind.

Othe issues with the Panchayats:

• Inadequate Capacity Building: Many Panchayat members lack the necessary skills and knowledge to manage finances, plan projects, and monitor progress. This leads to inefficient resource utilization and poor project outcomes.

• Financial Constraints: Panchayats heavily rely on central government grants, which are often delayed or inadequate. Eg: Panchayats received 95% of their revenues from the devolved funds from the Centre/State while generating only 5% from own powers.

• Eg: Panchayats received 95% of their revenues from the devolved funds from the Centre/State while generating only 5% from own powers.

• Lack of Transparency and Accountability: Weak monitoring systems and limited public access to information make it difficult to hold Panchayats accountable for their actions.

• Socio-economic Inequalities: Existing social inequalities and discrimination can hinder equitable development within Panchayat jurisdictions. This requires specific interventions to address the needs of marginalized communities and ensure inclusive development.

• Limited Community Participation: Many citizens remain unaware of their rights and responsibilities in the Panchayati Raj system.

Key Recommendations of the World Bank Report:

• Enhance Local Tax Capacity: Improve property records and grant Panchayats more authority to levy taxes.

• Empower Gram Sabhas: Increase their frequency and broaden their authority, including village planning and beneficiary selection.

• Strengthen SHG-Panchayat Linkages: Foster greater coordination between Self-Help Groups (SHGs) and Panchayats to better address women’s needs and improve decision-making.

Other Suggested Measures:

• Fiscal autonomy: Grant Panchayats greater fiscal autonomy by empowering them to raise and manage their own finances. Eg. Kerala’s decentralized planning model has empowered Panchayats.

• Regular elections: Ensure regular, timely elections to maintain the democratic functioning of Panchayats.

• Citizen participation: Promote awareness campaigns and civic education to enhance citizen understanding and participation in local governance and enhance regular meetings and participation in Gram Sabha.

• Social audit: Strengthen social audit mechanisms by providing training to villagers, ensuring transparency in financial records, and addressing concerns raised through audits. Eg: Social audits in Rajasthan have led to the identification and correction of irregularities.

• Eg: Social audits in Rajasthan have led to the identification and correction of irregularities.

• Inter-panchayat coordination: Encourage joint planning and resource sharing through inter-panchayat forums, workshops, and knowledge exchange programs.

• Decentralisation: Devolve additional powers and responsibilities to Panchayats across sectors like education, health, and agriculture, while providing capacity-building support to ensure effective implementation.

Related Initiatives

• SVAMITVA Scheme: Survey of Villages and Mapping with Improvised Technology in Village Areas (SVAMITVA) scheme was launched on National Panchayati Raj Day 2020 to enable the economic progress of Rural India by providing a “Record of Rights” to every rural household owner.

• e-Gram Swaraj e-Financial Management System: e-Gram Swaraj is a Simplified Work Based Accounting Application for Panchayati Raj.

• Geo-Tagging of Assets: The Ministry of Panchayati Raj (MoPR) has developed “mActionSoft”, a mobile-based solution to help in capturing photos with Geo-Tags (i.e., GPS Coordinates) for the works which have assets as an output.

• Citizen Charter: In order to focus on the commitment of the PRIs towards its Citizens in respect of the Standard of Services, the MoPR has provided a platform to upload Citizen Charter documents with the slogan “Meri Panchayat Mera Adhikaar – Jan Sevaayein Hamaare Dwaar”.

Conclusion:

The Venugopal Committee report of 2018, highlighted the critical role of Panchayats in fostering rural development and achieving sustainable progress. It emphasizes the need to address the challenges faced by Panchayats, such as inadequate capacity building, financial constraints, lack of transparency, and limited citizen participation.

Insta Links:

• Local Self Governance

Mains Links:

To what extent, in your opinion, has the decentralisation of power in India changed the governance landscape at the grassroots? (UPSC 2022)

Assess the importance of the Panchayat system in India as a part of local government. Apart from government grants, what sources can the Panchayats look out for financing developmental projects? (USPC 2018)

In absence of a well-educated and organised local level government system,`Panchayats’ and ‘Samitis’ have remained mainly political institutions and not effective instruments of governance. Critically discuss. (USPC 2015)

Prelims Links:

Local self-government can be best explained as an exercise in (UPSC 2017)

(a) Federalism

(b) Democratic decentralisation

(d) Direct democracy

Ans: (b)

The fundamental object of Panchayati Raj system is to ensure which among the following? (UPSC 2015)

People’s participation in development

Political accountability

Democratic decentralisation

Financial mobilisation

Select the correct answer using the code given below

(a) 1, 2 and 3 only

(b) 2 and 4 only

(d) 1, 2, 3 and 4

Ans: (c)

Key Phrases: A Review of Village Government in India, 73rd Constitutional Amendment