73rd and 74th CAA are the embodiment of grass-root democracy and democratic decentralization in India. They are inspired by Gandhiji’s concept of “Oceanic Circles of Power” and “Swaraj”.
Positive Transformations in Governance Landscape
Rajni Kothari described local bodies as “schools of democracy” where political awareness and participation are cultivated at the grassroots level.
Democratic Deepening with over 32 lakh elected representatives across 2.6 lakh Panchayats and 4,000+ urban bodies.
Social Inclusion and Equity – Reservation for SCs, STs, and women enhanced representation of marginalised groups in decision-making. Eg- Women’s Representation at 46.44%
Panchayats manage programmes like MGNREGA, PMAY-G, Jal Jeevan Mission, bringing last-mile efficiency.
Participatory Planning – Gram Sabhas and Ward Committees have improved local accountability and need-based development. Eg- Social Audits of MGNREGA
Strengthened Disaster Response – Eg- during COVID-19 and Kerala floods.
Efficient Resource Management- Eg- Hiware Bazar in Maharashtra effectively managed water resources through watershed development.
Conflict Resolution- Reports indicate a 30% reduction in petty disputes reaching district courts due to effective Panchayat mediation.
Challenges
“PRIs exist as over-structured but underpowered organisations.” (2nd ARC)
No decentralisation of power, rather decentralisation of corruption – Mani Shankar Iyer Committee
Dependence on higher tiers- Around 95% of Panchayat funds come from Central/State transfers, limiting fiscal autonomy.
Limited own-source revenue- Poor tax collection efficiency (>1% own tax).
Barriers to Local Taxation- Freebie culture and fear of losing popularity discourage local taxation.
Incomplete devolution- less than 20% of States have transferred all 29 subjects under 11th Schedule (MoPR, 2022). (overall Panchayat Devolution Index is only 43.89% (2021-22))
Centralised Welfare via Cash Transfers – The welfare state now relies on DBT through JAM, bypassing panchayats and reducing local accountability and participatory governance
Shortage of staff- Average 0.67 Panchayat Secretaries per Gram Panchayat, as low as 0.33 in Uttar Pradesh.
Weak Gram Sabhas- Low participation, elite domination, and token meetings.
Gender and social barriers leading to proxy control. (Sarpanch Pati)
Manishankar Aiyar Committee recommendations.
Establish National Commission for Panchayati Raj.
Create Panchayat Ombudsman for grievance redressal.
Set up a separate cadre of Panchayat bureaucracy with a code of conduct.
Adopt activity mapping for clear delineation of 3Fs – Funds, Functions, Functionaries.
To realise the vision of “Gram Uday se Bharat Uday”, India needs second-generation Panchayati Raj reforms