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Panchayati Raj in India: Achievements, Challenges and Reforms

17 February 20251 min read
NATIONAL AFFAIRSPanchayati Raj inIndia: Achievements,Challenges andReforms17 February 2025safalsetu.com

Why in the news

Governance shifts, economic policy and urbanisation are putting the panchayati raj system under strain, so its role needs a fresh look.

Achievements

  • Keenly contested panchayat elections.
  • Nearly 14 lakh elected women representatives.
  • Panchayats help implement rural development schemes; State Finance Commissions assist local bodies.

Challenges

IssueDetail
Administrative devolutionJust 20% of states transferred all 29 subjects of the 11th Schedule
Fiscal autonomyUntied grants: 85% (13th FC) to 60% (15th FC)
DBTSchemes such as PM-KISAN bypass panchayats, lowering accountability
UrbanisationRural population down from 75% (1990) to about 60%, shifting policy to municipalities

Way forward

  • Devolve all 11th Schedule subjects and move staff and authority to local bodies.
  • Raise untied grants, widen own revenue (property tax, service fees), lean less on centrally sponsored schemes.
  • Use online citizen platforms and GIS mapping for land and water.
  • Support migrant families, community renewable energy, water conservation and local disaster response.

Exam angle

  • Amendment: 73rd (1992); schedule: 11th with 29 subjects.

Test yourself

1. Which constitutional amendment of 1992 enshrined the panchayati raj system?

The 73rd Amendment of 1992 gave constitutional standing to panchayati raj.

2. How many subjects are listed in the 11th Schedule for devolution to panchayats, per the notes?

Only 20% of states have decentralised all 29 subjects of the 11th Schedule.

3. By what share did untied grants fall between the 13th and 15th Finance Commissions?

Untied grants dropped from 85% (13th FC) to 60% (15th FC).