Strengthening Panchayati Raj Institutions in India

• 05 Nov 2025

This editorial is based on “The vision of Model Youth Gram Sabhas”, which was published in The Hindu on 03/11/2025. The article discusses the Model Youth Gram Sabha initiative, which aims to empower Indian students with practical experience in grassroots democracy by simulating Gram Sabha processes in schools, thereby fostering informed and active citizenship rooted in local self-governance.

For Prelims: 73rd Constitutional Amendment, Panchayati Raj Institutions, Model Youth Gram Sabha Initiative, People's Plan Campaign, Panchayat NIRNAY, 15th Finance Commission, State Election Commission (SEC), SabhaSaar, SVAMITVA Scheme,eGramSwaraj, Rashtriya Gram Swaraj Abhiyan (RGSA), Sustainable Development Goals (SDGs)

For Mains: Key Factors that have Shaped the Growth Trajectory of Panchayati Raj Institutions (PRIs) in India, Key Challenges Faced by Panchayati Raj Institutions in India, Required Measures to Empower Panchayati Raj Institutions (PRIs) in India

Indian democracy draws its strength from grassroots participation, yet a large section of young citizens remains disengaged from local governance bodies like Gram Sabhas. The Model Youth Gram Sabha initiative aims to bridge this disconnect by involving students in simulated village governance, thereby transforming civic learning into hands-on democratic practice. Despite these reforms, Panchayati Raj Institutions (PRIs) continue to struggle with financial dependency, political interference, social hierarchies, and restricted administrative powers. 

What are the Key Factors that have Shaped the Growth Trajectory of Panchayati Raj Institutions (PRIs) in India?

• Constitutional Empowerment & Enhanced Representation:  The 73rd Amendment transformed Panchayati Raj from a discretionary state policy into a constitutionally mandated system of local self-government, ensuring democratic decentralisation, accountability, and participatory governance across India.
  • The Amendment also introduced reservations for women (minimum 33%) and Scheduled Castes/Tribes, promoting social inclusion and grassroots leadership.
  • India now has roughly 14–14.5 lakh elected women representatives (~46%), and 21 states have moved to 50% reservation for women — a major step in inclusive governance and women’s leadership at the grassroots.
    • For instance, under the Nari Shakti Se Jal Shakti initiative in Rajasthan, women PRI leaders revitalised traditional water bodies, built check dams, and promoted rainwater harvesting, improving groundwater levels and ensuring year-round water availability. 
  •  In the Bastar district, tribal PRI leaders have successfully implemented traditional forest rights with government collaboration.
• Participatory Governance via Gram Sabhas:  Gram Sabhas are platforms for direct citizen participation in decision-making. 
  • To enhance people’s participation in preparing Panchayat Development Plans, the People’s Plan Campaign (PPC) was launched on 2nd October 2018 under the theme “Sabki Yojana, Sabka Vikas.” 
    • Encouraged by the positive outcomes of Gram Sabhas, stakeholder engagement, and participatory planning, the campaign has been conducted annually in a mission mode with active involvement of Elected Representatives, frontline workers, Self Help Groups (SHGs), Community-Based Organisations (CBOs), and other local stakeholders.
    • Experts laud the contribution of the People’s Plan to the strides Kerala has made in crucial fields like education, health, local infrastructure, and the like, while reducing poverty.
  • Social Accountability & Participatory Mechanisms tools like social audits (MGNREGA), citizen charters, public hearings and civil-society engagement have deepened political accountability. 
• Financial Decentralisation and Own Source Revenue (OSR): Traditionally, Panchayati Raj Institutions (PRIs) relied heavily on central and state grants, limiting their fiscal autonomy. 
  • However, some states have taken the lead in local revenue mobilisation, with Karnataka, Kerala, Andhra Pradesh, Telangana, and Tamil Nadu together contributing over 60% of the ₹25,595 crore OSR generated by Gram Panchayats nationwide between 2017–18 and 2021–22.
  • Innovations such as the Ministry of Panchayati Raj’s Samarth Panchayat  Portal, piloted in Chhattisgarh and Himachal Pradesh, are helping streamline and enhance OSR management. 
  • The 15th Finance Commission further strengthened financial devolution by recommending around ₹2.4 lakh crore for rural local bodies (2021–26), expanding their fiscal space and enabling greater focus on local development priorities.
  • Recent Finance Commission conclaves (2024) and policy initiatives continue to deepen fiscal federalism, promoting predictable, un-tied funds and empowering PRIs to achieve true financial autonomy.
  • As per the Panchayat Devolution Index 2024, the overall devolution to rural local bodies increased from 39.9% in 2013-14 to 43.9% in 2021-22.
• Capacity Building, Decentralised Planning & Digital Tools: Rashtriya Gram Swaraj Abhiyan (RGSA,revamped in 2022) trains elected members and officials on governance, finance, and planning. 
  
  • In Tamil Nadu, this has led to improved budgeting and public works execution, bridging skill gaps at the grassroots.
  • Institutional mechanisms like Gram Panchayat Development Plans (GPDP) and the e-GramSwaraj portal have operationalised bottom-up planning and transparency; thousands of GPDPs are uploaded and monitored online, enabling localisation of development priorities and real-time accounting of works and funds. 
  • This digitalisation strengthens accountability and citizen oversight. 
    • Platforms like Panchayat NIRNAY provide real-time monitoring of scheme implementation, increasing transparency. 
    • In Maharashtra, digitization of Gram Sabha proceedings reduced corruption allegations and led to timely execution of public health initiatives during the COVID-19 pandemic.
  • The Model Youth Gram Sabha initiative actively nurtures youth participation, especially tribal students, fostering democratic values from the grassroots. 
    • In Phase 1, the Model Youth Gram Sabha is being launched in over 1,000 schools across 28 States and 8 Union Territories (UTs).

What are the Key Features and Provisions of the 73rd Constitutional Amendment Act (1992)?

• Constitutional Status and Scope: The 73rd Constitutional Amendment Act, 1992, inserted Part IX (Articles 243–243O) and the Eleventh Schedule into the Constitution, granting constitutional recognition to Panchayati Raj Institutions (PRIs). 
  • It fulfilled Article 40 of the Directive Principles, mandating the organization of village panchayats with adequate powers and responsibilities. 
• Institutional Framework: The Act established a three-tier structure:
  • Gram Panchayat at the village level,
  • Panchayat Samiti at the intermediate level, and
  • Zila Parishad at the district level.
• Gram Sabha: The Gram Sabha was recognized as the base unit of the PRI system, comprising all registered voters in a village.
  • It acts as the platform for direct citizen participation, transparency, and accountability in local governance.
• Regular Elections and Fixed Tenure: The Act mandates regular elections every five years for all levels of PRIs. 
  • In case of early dissolution, elections must be held within six months, ensuring continuity of democratic functioning.
  • The Act established an independent State Election Commission (SEC) in each state to supervise, direct, and control PRI elections, ensuring autonomous and impartial electoral processes.
• Reservation for Social Justice and Inclusion: To promote inclusivity, the Act reserves:
  • Seats for Scheduled Castes and Scheduled Tribes in proportion to their population.
  • One-third of all seats (including chairperson positions) for women.
• Financial Empowerment: Each state must constitute a State Finance Commission (SFC) every five years to recommend principles for:
  • Distribution of state revenues between the state and Panchayats,
  • Grants-in-aid, and
  • Measures to strengthen PRI finances. 
• Devolution of Powers and Responsibilities: State legislatures are empowered to endow PRIs with functional authority over 29 subjects listed in the Eleventh Schedule—covering agriculture, health, education, and social welfare—promoting decentralized planning and local development.
• Bar on Judicial Interference: The Act prohibits courts from questioning laws concerning the delimitation of constituencies or allocation of seats for Panchayat elections. Only election petitions under state law can challenge results.

What are the Key Challenges Faced by Panchayati Raj Institutions in India? 

• Incomplete Functional Devolution: The 73rd Constitutional Amendment mandates the devolution of 29 subjects listed in the Eleventh Schedule to PRIs. 
  • According to the 2022 Ministry of Panchayati Raj report titled “Status of Devolution to Panchayats in States,” functional devolution has declined from 35.34% to 29.18%, indicating that a significant number of Panchayats still lack control over essential core services, thereby limiting effective governance and accountability at the local level.
  • Many important sectors, such as rural electrification and vocational training, remain under state-level control, limiting the PRIs' ability to govern comprehensively and diminishing local accountability.
• Fiscal Dependence and Financial Constraints:  Despite increased transfers under the 15th Finance Commission (₹2.36 lakh crore for 2021–26), PRIs suffer from financial dependence on the state and central governments. 
  • Panchayats generate only about 1% of their revenue through local taxes, reflecting minimal fiscal autonomy.
  • The majority of their income comes from grants — approximately 80% from the Central Government and 15% from State Governments, underscoring their high dependency on external funding for local development.
  • Delays in fund flow through schemes like MGNREGA and Finance Commission grants weaken planning and execution.
  • Centrally sponsored schemes often bypass PRIs or run parallel to them, creating overlapping avenues for rural development funds. 
    • PM-KISAN transfers cash directly to beneficiaries, minimizing PRI involvement in identification and delivery, which reduces their role to mere implementers, eroding their political legitimacy and capacity for local planning.
• Sarpanch Pati Phenomenon and Gender Marginalization: Though women hold about 43% of PRI seats nationally, patriarchal norms often inhibit their substantive participation. 
  • The ‘Sarpanch Pati’ phenomenon—where male relatives unofficially control women elected representatives—remains widespread, particularly in states like Uttar Pradesh and Bihar. 
  • This severely undermines the constitutional goal of women’s empowerment and participative democracy.
• Declining Gram Sabha Participation: Gram Sabhas are constitutionally the highest decision-making bodies at the village level, but irregular meetings, low turnout, and social exclusion of marginalized groups dilute their democratic potential. 
  • Participation is often restricted by caste divisions and gender biases, limiting the effectiveness of participatory governance mechanisms.
    • According to the National Council of Applied Economic Research (NCAER) survey, only 13% of villagers on average attended Gram Sabha meetings, reflecting limited citizen participation in grassroots governance. 
    • Notably, men’s attendance (21%) was nearly three times higher than that of women (7%), highlighting a significant gender gap in local political engagement.
  • Digital platforms like eGramSwaraj and Panchayat NIRNAY have improved transparency, but adoption is uneven across states.
• Capacity Gaps & Bureaucratic Hurdles: Many PRIs lack basic infrastructural facilities such as office buildings, internet connectivity, and trained support staff.
  • Administrative personnel shortages lead to bottlenecks in planning, budgeting, and scheme implementation. 
  • The Rashtriya Gram Swaraj Abhiyan’s capacity-building efforts improve this, but coverage is still limited. 
  • PRIs are frequently subject to political manipulation by state and party actors, undermining their autonomy. 
  • Bureaucratic dominance through Panchayat secretaries and district officials restricts elected representatives’ decision-making. 
  • Parallel institutional structures, like District Rural Development Agencies (DRDAs), siphon resources and authority away, leading to administrative inefficiencies and accountability gaps.

What are the Key Government Initiatives Driving Digital Transformation in Gram Panchayats?

• SabhaSaar: An AI-powered meeting summarizer launched in 2025 to create accurate, real-time minutes of Gram Sabha meetings, enhancing transparency and efficiency.
• SVAMITVA Scheme: Uses drone and mapping technology to provide legal landownership documents to rural households, improving land management, dispute resolution, and revenue collection.
• BharatNet:  Launched in 2011, BharatNet aims to connect all Gram Panchayats with high-speed internet, with over 2.14 lakh Panchayats already linked, supporting e-education, health, and governance services.
• eGramSwaraj: A comprehensive platform for planning, budgeting, and monitoring Panchayat activities, adopted by over 2.7 lakh Panchayats, streamlining local governance.
• Meri Panchayat App: Enables citizens to access Panchayat data, track schemes, and communicate directly with their elected representatives, promoting transparency and participation.
• Gram Manchitra GIS Tool: Supports geo-spatial planning for development projects, asset management, and evidence-based decision-making, improving rural planning.
• Recognition and Awards: The National Awards for e-Governance 2025 recognise grassroots innovations, with over 1.45 lakh entries, emphasising the growing digital momentum at the village level.

What Comprehensive Measures are Required to Empower Panchayati Raj Institutions (PRIs) in India? 

• Full Devolution of Powers, Functions, and Functionaries (3Fs): States must fully devolve the 29 subjects under the Eleventh Schedule to PRIs, as mandated by the 73rd Amendment. 
  • Full functional devolution enables PRIs to take autonomous decisions and plan local development. 
  • According to the 2nd Administrative Reforms Commission (ARC), there must be a clear delineation of functions for each tier of local government under every subject-matter law.
  • Kerala’s decentralized governance model exemplifies effective functional devolution with strong Gram Sabhas.
• Enhance Financial Autonomy and Resource Mobilization:  The government should empower PRIs by enabling them to generate significant Own Source Revenues (OSR) through enhancing tax collection mechanisms, user fees, and local levies.
  • Implement technological solutions like the Samarth Panchayat portal for better revenue management. 
  • Administrative decentralization must strengthen and privatize certain functions to reduce bureaucratic red tape.
    • The 2nd ARC also advised that state governments should encourage local bodies to outsource specific functions to public or private agencies, wherever appropriate, by providing enabling guidelines and institutional support.
• Strengthen Gram Sabhas and Citizen Participation: Revitalising Gram Sabhas through awareness campaigns and legally mandating regular meetings ensures community involvement and accountability. 
  • Digitally recording Gram Sabha proceedings using AI tools like SabhaSaar enhances transparency and documentation. 
  • Maharashtra’s success in using digital tools to boost governance transparency during the pandemic is illustrative.
• Expand Capacity Building and Professional Development: Scaling the Rashtriya Gram Swaraj Abhiyan (RGSA) to provide comprehensive training on governance, financial management, and digital literacy to all PRI representatives is essential. 
  
  • The state government should institute full-time, professionally trained Panchayat secretaries to bridge administrative gaps and promote technical efficiency.
  • Independent and well-resourced State Election Commissions (SECs) should conduct timely, free elections insulated from political influence. 
  • Regular audits and vigilance committees with citizen involvement should monitor PRI functions to deter corruption and misuse of power. 
    • In 2017, Meghalaya became the first Indian state to mandate social auditing for welfare schemes, with the enactment of the Meghalaya Community Participation and Public Service Social Audit Act. 
    • The Act mandates the implementation of social audits for over 20 welfare schemes, including Pradhan Mantri Awas Yojana - Gramin, National Social Assistance Programme, and National Food Security Act.
  • Promote Social and Digital Inclusion with Safeguards:  Address the ‘Sarpanch Pati’ phenomenon by enforcing strict legal sanctions and sensitisation training for elected women members.(MoPR partnered with the “Panchayat” web series to raise awareness on gender equality and Panchayati governance via YouTube which is a significant step in the right direction.)
    • Model Youth Gram Sabha initiatives should be expanded to nurture democratic engagement of women and youth, ensuring lasting social inclusion.
    • Leverage Digital Governance and Data-Driven Planning with the adoption of platforms like eGramSwaraj, SVAMITVA for property mapping, and Gram Manchitra for spatial planning to aid transparent, evidence-based governance.
    • Integrate procurement portals such as GeM at the local level to promote efficiency and reduce corruption.

Conclusion: 

As Mahatma Gandhi said, “The soul of India lives in its villages.” With 68.84% of Indians residing in rural areas, achieving the Sustainable Development Goals (SDGs) requires empowering Panchayati Raj Institutions (PRIs). The government must ensure full devolution of powers and funds, enhance financial autonomy, and strengthen capacity building through Rashtriya Gram Swaraj Abhiyan. Leveraging digital tools like eGramSwaraj, revitalising Gram Sabhas, and promoting women’s participation will drive inclusive, democratic, and sustainable rural development.

Drishti Mains Question: 

"Democracy flows strongest through empowered local streams."Examine the hurdles that impede Panchayati Raj Institutions from realising their full potential of grassroots democracy. Suggest remedial reforms.

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Frequently Asked Questions (FAQs)

Q1.What is the Model Youth Gram Sabha and its significance?
A school-based simulation of Gram Sabha processes launched to cultivate civic literacy and youth engagement in local self-government; Phase-1 covers 1,000+ schools across 28 States & 8 UTs, training teachers and embedding participatory governance at the grassroots.Q2.Which factors have driven the growth trajectory of PRIs in India?
Constitutionalisation via the 73rd Amendment, reservations for women/SC/ST, financial devolution (notably 15th FC grants ~₹2.36 lakh crore, 2021–26), digital tools (e.g. eGramSwaraj — adopted by ~2.7 lakh Panchayats; BharatNet — 2.14 lakh Panchayats connected) and capacity building under RGSA.

Q3.What are the principal challenges confronting Panchayati Raj Institutions?
Incomplete functional devolution (devolution fell from 35.34% to 29.18% per MoPR 2022), fiscal dependence (Panchayats raise ~1% revenue locally; OSR totaled ₹25,595 crore in 2017–22 with 60% from southern states), capacity gaps, low Gram Sabha participation, and political/bureaucratic interference.

Q4.What comprehensive measures are recommended to strengthen PRIs?
Ensure full 3-F devolution (functions, functionaries, funds), boost OSR (property tax, user fees; pilots like Samarth), scale RGSA and professionalise secretariats, revitalise Gram Sabhas (AI tools like SabhaSaar for minutes), promote genuine women’s participation, and institutionalise predictable, untied funding with stronger State Election & Finance Commissions.

Q5.Which digital initiatives enhance transparency and local planning?
Key platforms include eGramSwaraj (planning, budgeting), SVAMITVA (digital land records), Gram Manchitra (GIS planning), Meri Panchayat (citizen access) and SabhaSaar (AI meeting summariser) — collectively improving accountability, asset management, and evidence-based local governance.

Status of Devolution to Panchayats | Local Governance | To The Point | Drishti IAS English

UPSC Civil Services Examination, Previous Year Questions (PYQs)

Prelims

Q1. Local self-government can be best explained as an exercise in (2017)

(a) Federalism

(b) Democratic decentralisation

(c) Administrative delegation

(d) Direct democracy

Ans: (b)

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

1. People’s participation in development

2. Political accountability

3. Democratic decentralisation

4. Financial mobilisation

Select the correct answer using the code given below

(a) 1, 2 and 3 only

(b) 2 and 4 only

(c) 1 and 3 only

(d) 1, 2, 3 and 4

Ans: (c)

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Mains

Q1. 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? (2018)

Q2. To what extent, in your opinion, has the decentralisation of power in India changed the governance landscape at the grassroots? (2022)

Q3. 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. (2015)