NEW DELHI: The government should undertake a comprehensive review of the functioning of Panchayati Raj Institutions (PRIs) and prepare a roadmap for the “next generation of panchayat reforms” to strengthen democratic decentralisation, financial sustainability and citizen participation, a parliamentary committee has recommended.
In a report tabled in Parliament on Wednesday, the Department-related Parliamentary Standing Committee on Rural Development and Panchayati Raj said that while PRIs have emerged as key instruments of grassroots democracy over the past three decades, several structural and institutional challenges continue to limit their effectiveness.
“The Committee are of the considered view that after more than three decades of experience, the time has come to move beyond the mere creation of institutions and focus on strengthening their effectiveness, responsiveness and capacity to deliver sustainable and inclusive development,” the report said.
The committee recommended that the Ministry of Panchayati Raj undertake a comprehensive review of the functioning of PRIs in consultation with states, experts and other stakeholders and formulate a roadmap for the next phase of reforms. It said the roadmap should focus on "deepening democratic decentralization, strengthening institutional capacities, enhancing financial sustainability, promoting digital governance and ensuring greater citizen participation". It also called for robust performance assessment and monitoring mechanisms, backed by evidence-based planning and data-driven decision-making at the grassroots.
The panel expressed concern over the declining vitality of Gram Sabhas, saying that in many areas they were becoming increasingly ceremonial. “The Committee note with concern... that in many areas Gram Sabha meetings are becoming ceremonial in nature and public participation has declined considerably,” it said, warning that “weakening of Gram Sabhas would adversely affect the spirit of democratic decentralisation envisaged under the Constitution.”
To address the trend, the committee recommended coordinated efforts by the Centre, states and Union Territories to revitalise Gram Sabhas through awareness campaigns, digital platforms, social mobilisation and greater participation of women, youth and vulnerable sections. “Revitalizing Gram Sabha is critical for realising Mahatma Gandhi's vision of Gram Swaraj,” the report said.
The committee also flagged concerns over the excessive concentration of powers at the Gram Panchayat level and inadequate empowerment of Panchayat Samitis and Zila Parishads, saying stronger intermediate and district-level institutions were essential for integrated planning and coordinated development.
On finances, it observed that despite increased grants from successive Central Finance Commissions, panchayats continue to rely heavily on such transfers. “The Committee are of the view that excessive dependence upon external grants adversely affects the autonomy, sustainability and effectiveness of Panchayati Raj Institutions,” it said, recommending a strategy to strengthen panchayats' own-source revenues, ensure timely constitution of State Finance Commissions and introduce performance-based incentives to improve financial management and accountability.
The panel also highlighted concerns over the functioning of women’s reservation in PRIs. While noting that women now constitute nearly half of all elected representatives in panchayats, it cited reports of proxy representation by male family members and inadequate institutional support for newly elected women representatives. “The Committee are of the view that proxy representation defeats the spirit of reservation and undermines the objective of women empowerment," the report said, recommending stricter monitoring of the ministry's advisory and dedicated training and mentoring programmes, particularly for Scheduled Caste and Scheduled Tribe women representatives.