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Devolution Index for Panchayats: State Rankings and Gaps

26 February 20251 min read
REPORTS & INDEXESDevolution Indexfor Panchayats:State Rankingsand Gaps26 February 2025safalsetu.com

Why in the news

A report from the Ministry of Panchayati Raj and the Indian Institute of Public Administration offered a state-wise Devolution Index (DI) of how far power reaches local bodies.

Key facts

  • Measures: institutional framework, financial strength, capacity building and accountability of PRIs.
  • Scores: overall devolution 39.9% (2013-14) to 43.9% (2021-22).
  • Best: Karnataka (72.23), with Kerala and Tamil Nadu also strong; weak: Manipur, Arunachal Pradesh, Jharkhand, Punjab.
  • Biggest movers in a decade: Uttar Pradesh and Bihar.

Concerns

  • Money: own revenue of gram panchayats is tiny; even Kerala, the highest, had 2.84% share of state own revenue in 2021-22. An RBI study put PRI revenue spending under 0.6% of GSDP in every state.
  • Capacity: staff shortages and poor physical and digital infrastructure, notably in the northeast and hill states.
  • Representation: Punjab, Madhya Pradesh, Karnataka and J&K fall short of women’s reservation, while Jharkhand, Tamil Nadu and Chhattisgarh exceed it; no accountability mechanism.

Way forward

  • Rotate reserved seats once in two or three terms.
  • Common electoral rolls for Lok Sabha, Assembly, municipal and GP polls.
  • Constitute SFCs on time; give GPs power to tax properties.
  • Recruit and train staff; set up a local government ombudsman.

Test yourself

1. Which state topped the Devolution Index for Panchayati Raj with a score of 72.23?

Karnataka ranked highest at 72.23.

2. Which two bodies prepared the report containing the Devolution Index for Panchayati Raj?

The report came from the Ministry of Panchayati Raj and the Indian Institute of Public Administration.

3. How many states have constituted their sixth State Finance Commission, per the report?

Only 10 states have constituted their sixth SFC.