The Hindu Editorial Analysis
17 February 2025
The panchayati raj movement is in distress
(Source – The Hindu, International Edition – Page No. – 8)
Topic: GS 2: Devolution of powers and finances up to local levels and challenges therein
Context
- Panchayats are currently operating within a new development paradigm.

Introduction
- Recently, Parliament discussed the 75th anniversary of the Indian Constitution.
- Important governance issues, particularly regarding local governance, were largely overlooked.
73rd Amendment to the Constitution
- Landmark Legislation: The 73rd Amendment (1992) established the panchayati raj system, crucial for India’s constitutional journey.
- Stalled Progress: Efforts to deepen local governance have stalled.
- Challenges: Technological and societal shifts threaten the relevance of panchayats without rethinking their roles.
- Decentralisation Initiated: Institutionalized decentralization in rural areas began with this amendment.
- Three-Tier System: Introduced a system with village, block, and district levels, ensuring local elections and 50% reservations for women and marginalized groups.
Positive Developments
- Keen Elections: Panchayati raj elections are actively contested nationwide.
- Women’s Leadership: Nearly 1.4 million elected women representatives highlight success in inclusion.
- Financial Support: State Finance Commissions are mandated to allocate funds to local governments.
- Social Sector Implementation: Many social programs are executed through local governance, especially at the gram panchayat level.
Challenges in the Panchayati Raj Movement
- Declining Participation: There’s a noticeable drop in public involvement.
- Dependence on Central Schemes: Overreliance on centrally sponsored schemes hampers local governance.
- Politicisation: Engagement of political parties has distorted the essence of Panchayati Raj.
- Concerns in Progressive States: Declines are evident even in states with a strong history of panchayati raj, like Kerala.
Systemic Challenges and Changing Paradigm
- Longer-Term Issues: Structural challenges affect the panchayati raj movement’s evolution.
- New Development Paradigm: The context around panchayatis has shifted significantly since their inception.
- Spirit at Risk: There’s a genuine threat of losing the foundational spirit of the panchayati raj movement.
Decline and Major Shifts
- Administrative Decentralization: Effective local governance needs devolution of power and resources from state governments.
- Erosion of Financial Autonomy: While financial transfers to panchayats increased, untied grants shrank from 85% to 60%.
- Welfare State Reimagined: Direct cash transfers have minimized panchayats’ traditional roles in welfare delivery.
- Urbanization Impact: Rapid migration to urban areas has shifted focus away from rural governance, necessitating municipal reforms.
Revitalizing the System
- Panchayats as Delivery Instruments: The perception of panchayats as mere service delivery points needs to change.
- Reviving Local Governance: Substantial revival is essential for the rural population, which still represents a significant part of India.
- Utilizing Technology: Leveraging technology can enhance citizen engagement in local governance.
- Role in Sustainability: Panchayats could lead initiatives in water conservation and renewable energy management.
- Community-Based Disaster Management: They can also implement disaster risk management programs, enhancing community resilience.
Conclusion
- A renewed vision for panchayati raj is crucial to support rural communities and regain momentum for local governance reforms. Engaging with the population is essential for shaping this future.