Dr Gyan Pathak

Even 32 years after the passage of the 73rd amendment of the Constitution of India, Panchayati Raj as a system of governance is being systematically crippled by the higher political and bureaucratic layers. Moreover, digitalization has been adversely impacting the Panchayat’s power and functioning in a way that was not ever imagined before. Panchayats are far from the ideal of the amendment brought in 1992.

Numerous examples of these are given in the latest World Bank study titled “Two Hundred and fifty-thousand Democracies: A Review of Village Government in India” authored by Siddhartha George, Vijayendra Rao, and MR Sharan. It should be noted that there are about 250,000 Gram Panchayats in the country covering about 80 crore village citizens.

The paper mentions considerable progress in local governance, but it also flags the very poor level of decentralization of powers and devolution of funds from the States and the Centre. Most Panchayat heads today will argue that the devolution of funds, functions and functionaries is insufficient, the study says; adding that the typical Panchayat’s decision-making powers are strictly circumscribed by the rules formulated by politicians and bureaucrats at higher tiers.

Take for instance, the implementation of MGNREGA scheme. The MGNREGA Act mandates that the Panchayat provide work on demand to unskilled workers in the village. Panchayat leaders are empowered to generate work by assigning workers to village-based projects. Panchayats, after consultations with citizens via the Gram Sabha, are allowed to formulate their own “shelf of works” – a list of projects to be undertaken over the next year – but these are subject to approval from higher-tiered officials.

Moreover, once a project is approved, there are strict guidelines on how much labour costs to incur, what materials to procure, from whom, and at what cost?

Muster rolls – attendance sheets for workers – are generated online. Attendance is marked digitally using finger-prints/photographs. Payments are automated and sent directly to workers’ bank accounts. Thus, while Panchayats are responsible for the NREGA, they do not have a strong say in project selection, project implementation or payments.

This makes fixing accountability particularly problematic. When citizens complain about wage delays from their Panchayat heads, Panchayats often point to the fact that delays occur elsewhere.

The present study has given examples from several other studies conducted earlier and concluded that perhaps there is not enough decentralization in Panchayats, both in terms of jurisdiction size and functionaries. Panchayats are not quite independently functioning units.

They rely almost entirely on grants made by state and national authorities. “Most local governments spend most of their time negotiating with their principals, officers in higher levels of governments, rather than carry out their functions.” Consequently, both elected and bureaucratic members of Gram Panchayats find themselves spending an exorbitant amount of time in corridors of Block Development Officers and District Collectors.

Their days are consumed with soliciting funds or personnel, inputting data on various schemes, gathering information on new initiatives, or seeking redress for grievances with staff.

This routine fosters a peculiar equilibrium where Panchayats don’t quite see themselves as the architects of their community’s welfare. They act as intermediaries tasked with project implementation-glorified middle-men, so to speak-rather than empowered decision-makers charting their own course.

The study suggests several actions can be taken to break the status quo and make Panchayats more citizen-orientated; bring them closer to the ideals enshrined in the 73rd Amendment of the Constitution of India.

The first suggestion is to pay more attention to the three critical ‘Fs’ -functions, finance, and functionaries-and delegate more authority to panchayats rather than stripping them of power. Enhance their capacity to generate revenue and grant them broader decision-making authority over local matters.

These steps are crucial in an era where the proliferation of online payment systems, MIS-based beneficiary selection, and digital tracking of beneficiaries has led to a “recentralization” process, eroding the autonomy of local governments over key functions. A reassessment of the levels of devolution is suggested.

The study has also suggested building the local tax capability of the Panchayats. Panchayats’ autonomy will always be curtailed if they cannot raise revenue levels from above the very low levels at which they stand, it says.

It recommends strengthening Gram Sabhas which are central to effective village governance. To enhance their efficacy, it recommends increasing their frequency and expanding their powers to encompass critical areas such as village-planning and the selection of beneficiaries for public programs.

Utilising Gram Sabhas as platforms to actively listen to citizens is essential; attendees often voice a range of concerns, complaints, and aspirations. Addressing these inputs can significantly improve Governmental performance if these insights are not only heard but also acted upon.

Enhance the quality of administrative data and ensure its public availability in an accessible format that does not necessitate a college education to interpret, the study suggested.

Employ effective visualizations, maps, and interactive dashboards, co-created with citizens, to facilitate comprehensive understanding and analysis by all community members. This approach empowers citizens to utilise the data for informed decision-making.

Developing an independent and credible scoring system for Panchayats has also been recommended along with building a grievance redressal system, and integrating women’s self-help groups (SHGs) with panchayats. Even when formally not in government, SHGs also double up as local arms of the higher bureaucratic state: For instance, SHG leaders have been tasked with setting up village kitchens, distributing masks during covid or taking over as “mates” for NREGA projects.

Yet, their roles are seen as being parallel to the Panchayats. Creating more scope for SHG-Panchayat coordination would not only improve the functioning of the SHGs (by making their functioning subject to scrutiny by elected representatives), it would also improve the functioning of panchayats and balance their decisions more towards the needs of women.

The study suggested applying the lesson learnt from 73rd Amendment to the urban areas for their benefit, since urban government is regulated by the 74th amendment to the Constitution that has well-known weaknesses. It is still largely dominated by bureaucratic rule vested in powerful municipal commissioners.