Mains Practice Questions

Introduction:

The 73rd Constitutional Amendment institutionalised Panchayati Raj Institutions (PRIs) as the third tier of governance to strengthen democratic decentralisation. However, the inadequate and uneven devolution of the 3Fs—Funds, Functions, and Functionaries—continues to constrain the autonomy and effectiveness of PRIs. This gap remains the central bottleneck in grassroots empowerment

Challenges in Devolution of 3Fs

• Funds:
  • PRIs are still financially dependent on state and central governments. As per the Panchayat Devolution Index 2024, overall devolution increased only from 39.9% (2013–14) to 43.9% (2021–22).
  • State Finance Commissions (SFCs) are irregular, often delayed, and their recommendations remain poorly implemented.
  • Lack of untied funds reduces flexibility for local planning.
• Functions:
  • Despite the Eleventh Schedule’s 29 subjects, states have not fully transferred decision-making powers.
  • A 2022 study shows functional devolution fell from 35.34% to 29.18%.
  • Line departments continue to dominate areas like health, education, water, and agriculture.
  • Parallel bureaucratic structures bypass PRIs, creating confusion and weak accountability.
• Functionaries:
  • PRIs face chronic shortages of administrative, technical, and financial staff.
  • Existing staff often report to line departments, not Panchayats.
  • Weak capacity in planning, budgeting, engineering, audit, and service delivery persists.
  • Training under Rashtriya Gram Swaraj Abhiyan (RGSA) is uneven and inadequate.
• Institutional and Governance Gaps:
  • Weak Gram Sabhas reduce community participation.
  • Poor audit systems, limited transparency, and political interference undermine decentralisation.
  • Significant inter-state disparities exist, Kerala, Karnataka, and Tamil Nadu perform better, while many states lag.

Reforms for Effective Decentralisation

• Strengthen Fiscal Empowerment:
  • Implement SFC recommendations regularly.
  • Increase untied grants and reform local taxation to enhance OSR.
  • Ensure predictable financial transfers using Finance Commission mechanisms.
• Clear Activity Mapping:
  • Fully devolve all 29 functions with clear responsibility lines.
  • Dismantle parallel administrative structures and place field staff under PRIs.
• Professionalise Functionaries
  • Expand RGSA-based training.
  • Create a dedicated Panchayat cadre for planning, accounts, engineering, and social mobilisation.
  • Leverage e-GramSwaraj, GIS mapping, and digital dashboards for governance.
• Strengthen Gram Sabhas and Accountability:
  • Mandatory, regular Gram Sabha meetings.
  • Institutionalise social audits and enhance transparency.
  • Strengthen audit and monitoring institutions.
• Reduce Inter-State Disparities:
  • Promote peer-learning models from better-performing states like Kerala.
  • Adopt context-sensitive decentralisation policies based on local needs.

Conclusion :

Effective democratic decentralisation demands strong political will to devolve the 3Fs in both letter and spirit. By empowering PRIs with adequate funds, clear functions, and competent functionaries, Panchayats can become true engines of grassroots democracy and inclusive local development.