By Surabhi Gupta
New Delhi: Union Minister of State for Panchayati Raj and Fisheries, Animal Husbandry and Dairying, Prof. SP Singh Baghel launched the newest Panchayat Devolution Index 2024 here on Thursday. The report, drawn up by the Indian Institute of Public Administration (IIPA), grades states and Union Territories (UTs) according to their initiative in strengthening Panchayati Raj Institutions (PRIs) through devolution of functions, finances, and administrative powers.
In a significant jump, Uttar Pradesh has moved from 17th to 5th position, being the top performer in providing accountability in Panchayati governance. Tripura, having risen from 14th to 7th position, performed well in facilitating Panchayats to raise revenue and obtain Finance Commission grants.
Vivek Bharadwaj, Secretary, Ministry of Panchayati Raj, told ETV Bharat, “In Uttar Pradesh, they have carried out large-scale recruitment, improved physical infrastructure, and strengthened accountability. Due to these factors, UP’s ranking has improved.”
Prof. SP Singh Baghel said, “If Uttar Pradesh has moved from 15th to 5th place, the national average also improved. Because if UP lags behind, the country lags behind. When UP’s production increases, the country benefits. If UP excels in education, the whole country moves ahead. Lakhs of people benefit, but moving from 15th to 5th place is just one step, why stop at 5th? Why not aim for 1st place?"
He added, "No state should use lack of funds as an excuse, because here, funds are allocated fairly. Whether a state is BJP-ruled or opposition-led, money is distributed based on area and population. So, no one can claim they are receiving less than they deserve. The real issue is state priorities, many times, funds are misused in unnecessary schemes. Sometimes, even the Prime Minister’s schemes are blocked at the state level, and welfare programs get renamed for political reasons. Some states even refused to implement Ayushman Bharat, and as a result, we saw people suffering and dying. If a state introduces its own scheme, then this Rs 5 lakh health coverage from Ayushman Bharat could have been an additional benefit. This Rs 5 lakh assistance can be life-saving, especially for severe health issues like transplants and other medical emergencies.”
Karnataka Leads, Kerala and Tamil Nadu Follow
The index measures six important dimensions of Panchayat governance: framework, functions, finances, functionaries, capacity building, and accountability. Karnataka topped the list with the best overall implementation of these dimensions.
Other top-ranking states include:
1. Karnataka – Best overall performer
2. Kerala – Second place
3. Tamil Nadu – Third place
4. Maharashtra – Fourth place
5. Uttar Pradesh – Fifth place (significant improvement)
Uttar Pradesh Takes the Lead in Accountability, Tripura Scores High on Revenue Collection
Uttar Pradesh has improved its accountability framework substantially since the last review, especially in the areas of transparency, anti-corruption, and timely publication of accounts and audits. This development is an indication of improved governance and financial management in PRIs.
Tripura, however, has concentrated on generating revenues and has made significant strides in enabling Panchayats to levy and collect taxes. The state has also ensured improved use of Finance Commission grants, resulting in enhanced financial autonomy in rural administration.
Importance of the Report in Enhancing Panchayati Raj
Addressing the gathering, Ministry of Panchayati Raj Additional Secretary Sushil Kumar Lohani referred to the report as an important milestone towards quantifying decentralisation progress under the 73rd Constitutional Amendment. He underscored that a robust Panchayati Raj system has a direct bearing on rural services like education, health, and infrastructure.
Consistent Progress in Panchayat Administration
The report brings to the fore that the total devolution of powers to Panchayats has risen from 39.9% during 2013-14 to 43.9% in 2021-22.
Improvements on key areas include:
• Launch of Rashtriya Gram Swaraj Abhiyan (RGSA) on April 21, 2018, increasing capacity-building from 44% to 54.6%.
• Government initiatives towards improving physical infrastructure and appointing officials for PRIs, contributing to a high increase in the functionaries index from 39.6% to 50.9%.
Report Released at IIPA Event
The Panchayat Devolution Index 2024 was released at a formal function organised at the IIPA, New Delhi. The launch was followed by a screening of the short documentary on the Devolution Index. The function was graced by senior Ministry of Panchayati Raj officials and IIPA faculty.
Measuring the Self-Reliance of Local Bodies
The report is consistent with Article 243G of the Constitution, where state legislatures are required to devolve power to Panchayats over 29 items in the Eleventh Schedule. The Panchayat Devolution Index compares states according to the success they have had in making local governments autonomous and self-sufficient.
To further inspire empowerment, the Ministry of Panchayati Raj annually ranks states and UTs using an evidence-based method to compare their performance.
Assessment Based on Six Key Dimensions
The Devolution Index 2024 assesses Panchayati Raj performance on six key pillars:
1. Framework – Legal and institutional framework for PRIs.
2. Functions – Level of powers and responsibilities devolved to Panchayats.
3. Finances – Fiscal independence, revenue collection, and fund allocation.
4. Functionaries – Presence of trained personnel and infrastructure.
5. Capacity Building – Training initiatives and institutional strengthening.
6. Accountability – Transparency, audit, and public participation features
Why the Devolution Index Matters
Panchayat Devolution Index is a key indicator of monitoring the advancement of local self-governance in India. It is useful for several purposes:
Strengthens Local Self-Governance – Facilitates states to pinpoint areas of improvement.
Encourages Best Practices – Fosters policy innovation and reform.
Enhances Transparency – Offers the public information regarding Panchayat performance.
Supports Decision-Making – Aids elected representatives and officials in planning policies.
Guides Policymakers – Assists government departments in evaluating governance trends and enhancing devolution plans.
The Road Ahead for Panchayati Raj
Even though the report indicates some progress, several states remain behind in completely empowering Panchayats. In order to overcome this deficiency, the report suggests:
Creation of a Consolidated Fund for Local Governments – Facilitating timely and direct transfers of funds.
Increased Taxation Powers for Panchayats – Enhancing revenue collection systems.
Regular Elections and Audits – Enhancing transparency and governance at the grassroots level.
Expansion of Digital Governance – Facilitating platforms such as e-Gram Swaraj for real-time monitoring of activities and funds.
