Ailing panchayats

The world’s fastest-growing major economy is apparently giving a raw deal to rural local bodies, which are the pillars of grassroots governance. The Standing Committee on Rural Development and Panchayati Raj has expressed concern over the “steady decline” in the allocation of funds to Panchayati Raj Institutions (PRIs), as reflected in Union Budgets in recent years. The panel has urged the Centre to ensure on priority that village bodies get adequate performance-linked funds so that they can effectively discharge their duties. Failure to do course correction would strike at the root of fiscal decentralisation enshrined in the 73rd Amendment, which granted much-needed constitutional status to PRIs over three decades ago.

Mahatma Gandhi envisaged panchayats as self-governing and self-sustaining institutions capable of managing their affairs “even to the extent of defending themselves against the whole world”. This vision is in sync with the Modi government’s emphasis on Aatmanirbharta, with the Prime Minister describing Gram Swaraj (village self-rule) as a step towards achieving the goal of Viksit Bharat. Thus, it is vital to loosen the purse strings so that the PRIs’ ability to address local development needs is not hampered.

Another matter of concern is the inadequate devolution of funds to PRIs from state coffers. States are duty-bound to set up State Finance Commissions on a regular basis so that the flow of Central grants continues uninterrupted. A robust mechanism is needed to deter state departments from diverting money meant for panchayats. It is important to monitor the utilisation of funds devolved to rural local bodies in order to prevent corruption and promote transparency. Accountability has to take precedence as around two-third of India’s population resides in rural areas. Financial and administrative empowerment of panchayats can contribute in a big way to the country’s inclusive and sustainable development. Central and state governments must go the extra mile to help villages shed the tag of “poor cousins” of cities and towns.

Editorials