Status of Devolution to Panchayats in States
Kartavya Desk Staff
Syllabus: Polity
Source: PIB
Context: The Union Minister of State, released the “Status of Devolution to Panchayats in States” report in New Delhi, highlighting an increase in Panchayat devolution from 39.9% to 43.9% (2013-14 to 2021-22).
Key Data Insights on Present Panchayat Devolution:
• Karnataka secured the highest rank with a Devolution Index score of 72.23, followed by Kerala (70.59) and Tamil Nadu (68.38). Chhattisgarh, Gujarat, Maharashtra, Rajasthan, Telangana, Tripura, Uttar Pradesh, and West Bengal are categorized as high devolution states (>55 score). Andhra Pradesh, Himachal Pradesh, Madhya Pradesh, and Odisha fall under the medium devolution category (50-55 score). Assam, Bihar, Sikkim, and Uttarakhand scored between 43.89 and 50, indicating moderate devolution progress. 12 states and UTs, including Jharkhand, Punjab, Goa, and Arunachal Pradesh, ranked below the national average (43.89), marking them as low-performing states in panchayat empowerment.
• Chhattisgarh, Gujarat, Maharashtra, Rajasthan, Telangana, Tripura, Uttar Pradesh, and West Bengal are categorized as high devolution states (>55 score).
• Andhra Pradesh, Himachal Pradesh, Madhya Pradesh, and Odisha fall under the medium devolution category (50-55 score).
• Assam, Bihar, Sikkim, and Uttarakhand scored between 43.89 and 50, indicating moderate devolution progress.
• 12 states and UTs, including Jharkhand, Punjab, Goa, and Arunachal Pradesh, ranked below the national average (43.89), marking them as low-performing states in panchayat empowerment.
• Financial devolution saw an improvement from 32.05 (2013-14) to 37.04 (2023-24), but functional devolution declined from 35.34 to 29.18 in the same period.
• Capacity enhancement index increased from 44.01 to 54.63, indicating a stronger push for training and institutional support.
• Top Performers in Specific Dimensions: Finances & Accountability: Karnataka Functions: Tamil Nadu Framework & Institutional Setup: Kerala Training & Capacity Building: Telangana Role in Government Schemes: Uttar Pradesh
• Finances & Accountability: Karnataka
• Functions: Tamil Nadu
• Framework & Institutional Setup: Kerala
• Training & Capacity Building: Telangana
• Role in Government Schemes: Uttar Pradesh
Positives in the Report:
• Strengthened Financial Support: Panchayats benefited from timely 15th Finance Commission grants, improving fiscal autonomy.
• Enhanced Panchayat Capacities: States such as Telangana, Tamil Nadu, and Gujarat led in training programs and institutional support for Panchayats.
• Improved Digital & Administrative Infrastructure: States like Chhattisgarh, Gujarat, and Assam advanced in e-Governance adoption, online audits, and record-keeping.
• Higher Role in Centrally Sponsored Schemes (CSSs): Panchayats showed greater engagement in key schemes like MGNREGA, PMAY, ICDS, and NHM.
• Increased Gender & Social Inclusion: Many states increased women’s reservation to 50%, fostering better participation in local governance.
Challenges in Panchayat Devolution:
• Declining Functional Devolution: States are not transferring sufficient administrative powers to Panchayats despite financial devolution.
• Weak State Finance Commissions (SFCs): Several states delay SFC reports, affecting timely fund allocations and fiscal autonomy.
• Limited Own Revenue Generation: Panchayats rely heavily on state and central transfers due to weak taxation powers at the local level.
• Inadequate Human Resources: Shortage of Panchayat functionaries, with one secretary often managing multiple Panchayats, hinders efficient governance.
• Parallel Bodies Overlapping Panchayat Functions: Multiple line departments & parastatal bodies bypass Panchayats, weakening decentralization.
• Weak Transparency & Accountability: Inadequate social audits, low RTI compliance, and ineffective grievance redressal mechanisms undermine governance.
Way Forward:
• Strengthen Functional Devolution: Ensure activity mapping is completed, delegating real decision-making power to Panchayats.
• Revamp State Finance Commissions (SFCs): Institutionalize regular assessments, ensuring states implement SFC recommendations without delay.
• Enhance Own Revenue Mobilization: Empower Panchayats with property tax collection, ensuring financial self-sufficiency.
• Address Manpower Shortages: Establish Panchayat Service Commissions for structured hiring of skilled personnel.
• Improve Digital Infrastructure: Expand e-Governance, real-time audits, and digital public financial management systems (PFMS).
• Integrate Panchayats into CSSs: Amend guidelines to ensure Gram Panchayats manage and implement key welfare schemes.
• Strengthen Accountability Measures: Enhance RTI implementation, transparency in budgeting, and social audit mechanisms.
Conclusion:
Panchayat devolution has improved in financial transfers and capacity-building, but functional devolution remains a critical gap. Strengthening autonomy, financial independence, and governance mechanisms will be key to realizing true decentralized democracy. States must expedite structural reforms to ensure Panchayats function as genuine institutions of self-government.
• To what extent, in your opinion, has the decentralisation of power in India changed the governance landscape at the grassroots? (UPSC-2022)