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The Panchayati Raj Movement is in Distress
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Context
The 75th anniversary of the Indian Constitution has passed, but the critical issue of strengthening panchayati raj institutions has been sidelined. Despite the 73rd Constitutional Amendment of 1992, which established a three-tier system of local governance, the momentum towards decentralization in India has stalled, with new shifts in technology, governance, and urbanization challenging the relevance of panchayats.
Decline in Public Participation and Political Impact
- Limited Local Involvement: The initial enthusiasm around panchayati raj institutions has waned due to a decline in local participation.
- Dependence on Centralized Schemes: Panchayats have become heavily dependent on centrally sponsored schemes for funding, reducing their autonomy.
- Politicization of Local Governance: Political parties' involvement in panchayat elections has led to politicization, diminishing the original intent of empowering local self-governance.
Fiscal and Administrative Constraints
- Stagnation of Administrative Decentralization: States have not devolved full administrative control to local bodies, with less than 20% of states implementing all the 29 subjects from the Constitution’s Eleventh Schedule.
- Loss of Fiscal Autonomy: The reduction in untied grants, from 85% under the 13th Finance Commission to 60% under the 15th, has limited the financial independence of panchayats.
- Centralization of Control: The central government has gained more control over local funds, marginalizing state governments in the process.
Shifting Focus Towards Direct Welfare Models and Urbanization
- Erosion of Panchayats' Role in Welfare: The rise of direct cash transfer schemes (like PM-KISAN) has reduced the role of panchayats in welfare delivery and grievance redressal.
- Urbanization and Shift in Development Focus: Rapid urbanization has led to a policy shift, with increased focus on urban governance and municipal reforms rather than rural governance.
- Declining Relevance in Modern Governance: The shift towards technology-driven, centralized welfare models and urban-centric policies threatens the future of panchayats as significant governance institutions.
Practice Question:
Discuss the challenges faced by the Panchayati Raj system in India and suggest measures to revive its relevance in contemporary governance.
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