Status of Devolution to Panchayats in States 2024 Report

24-03-2025

The Panchayati Raj system, institutionalized through the 73rd Constitutional Amendment Act, 1992, stands as the cornerstone of decentralized governance in India.
To measure the extent of decentralization, the Ministry of Panchayati Raj (MoPR) has introduced the Panchayat Devolution Index (PDI) — a comprehensive tool to assess the actual empowerment of Panchayats across states.

What is the Panchayat Devolution Index (PDI)?

Developed by the Indian Institute of Public Administration (IIPA), the PDI is a quantitative index designed to evaluate how effectively states have devolved the 3Fs — Functions, Finances, and Functionaries to the Panchayati Raj Institutions (PRIs).

Key Dimensions of the Index:

The index scores states on a scale of 0 to 100 based on six dimensions:

Dimension/Weights)	Key Focus
Framework (10)	Constitutional compliance [elections (Article 243E), reservations (243D)]
Functions (15)	Actual assignment and execution of functions
Finances (30)	Fund flow efficiency and autonomy
Functionaries (15)	Staffing strength and deployment
Capacity Building (15)	Training and institutional development
Accountability (15)	Transparency, audits, Gram Sabha functioning
Total-100

Why is the Devolution Index Needed?

Strengthening Cooperative Federalism: Encourages states to adopt best practices and secure performance-based grants (as per 15th Finance Commission recommendations).
Measuring Multidimensional Devolution: Standardizes assessment of political, administrative, and financial devolution across diverse state contexts.
Assessing Local Government Autonomy: Helps gauge the independence of Panchayats in service delivery and decision-making.
Fostering Competitive Governance: Ranking and benchmarking stimulate states to improve performance, akin to Ease of Living Index for urban areas.
Identifying Governance Gaps: Pinpoints disparities and aids in targeted policy interventions (e.g., NITI Aayog’s Aspirational Districts Programme).

Benefits of the Devolution Index

Stakeholder	Benefits
Citizens	Better transparency and service delivery (e.g., MGNREGA Social Audits)
Elected Representatives	Data-driven advocacy for stronger decentralization (e.g., Himachal Pradesh’s PESA advocacy)
Government Officials	Policy roadmap for improving governance (e.g., Chhattisgarh’s Gram Mitra Initiative)
Policymakers	Evidence-based insights to design effective policies

PDI 2024: Top three State/UTs

Rank	State	Score
General category State
1	Karnataka	72.23
2	Kerala	70.59
3	Tamil Nadu	68.38
Northeastern/Hilly States
1.	Tripura	57.58
2.	Himachal Pradesh	53.17
3.	Uttarakhand	49.11
Union territories
1.	Jammu and Kashmir	27.85
2.	Andaman & Nicobar Islands	27.15
3.	Lakshadweep	18.32
National Average Score		43.89

Devolution Index Category-Wise Classification

Category	Score Range	States
Very High	>60	Karnataka, Kerala, Tamil Nadu, Maharashtra, Uttar Pradesh
High	55–60	Gujarat, Rajasthan, Chhattisgarh, Tripura, etc.
Medium	50–55	Andhra Pradesh, Odisha, HP
Low	44–50	Bihar, Assam, Uttarakhand, Sikkim
Very Low (Below national Average)	<43.89	Jharkhand, Puducherry, Haryana, Punjab, etc.

Key Highlights of PDI Report

Overall Devolution: Rose from 39.9% (2013-14) to 43.9% (2021-22).
Functionaries Index: Increased by 28.5%, from 39.6% to 50.9%.
Capacity Building Index: Improved by 24%, supported by RGSA 2018.
Financial Devolution: Rose from 32.05 to 37.04 nationally.
Top Performers: Karnataka, Kerala, Tamil Nadu.
Notable Reforms:

State	Initiative	Outcome
Kerala	People’s Plan Campaign	Bottom-up project execution
Karnataka	Decentralized Finances	Timely fund disbursement
Tamil Nadu	E-Governance	Transparency and monitoring
Maharashtra	GPDP	Community-based development
Rajasthan	50% Women Reservation	Enhanced female participation

Representation & Inclusiveness in Panchayats (2024)

Total Panchayats: Increased from 2.48 lakh (2013) to 2.62 lakh (2024)
Average Population per Panchayat: 3,087 → 4,669 (indicating consolidation)
Women’s Representation:

Highest: Odisha (61.5%), HP (57.5%), TN (57.32%)
Lowest: UP (33.33%)
States with 50%+ representation: Increased from 11 → 16

SC/ST/OBC Representation:

Group	Highest Representing State	National Avg.
SCs	Punjab (36.34%)	18.03%
STs	Chhattisgarh (41.04%)	16.22%
OBCs	Bihar (39.02%)	19.15%

Challenges in Effective Panchayat Empowerment

Over-centralization & Fund Delays (e.g., only 60% 15th FC grants utilized in Bihar & Jharkhand)
Uneven Devolution & Political Interference
Inadequate Infrastructure & Staffing (e.g., AP: 5% pucca buildings, Odisha: only 13% panchayats with computers)
Digital Divide: Haryana, Arunachal have <1% internet access in Panchayats
Gender Gaps & Sarpanch-Pati Syndrome
Low Capacity & Illiteracy among Functionaries
Data Inaccuracies (45% Gram Sabhas lack financial recordkeeping)

Milestones in the Evolution of Panchayati Raj in India

Year	Milestone / Event
1687	Royal Charter issued for the creation of Madras Municipal Body—considered the first step in formal local governance in India.
1842	Act X of 1842 provided the first formal legal measure for municipal bodies in British India.
1857	Aftermath of the Revolt of 1857 led to fiscal stress—Fiscal decentralization began to be explored as a solution.
1870	Lord Mayo’s Scheme introduced fiscal and administrative devolution; also saw enactment of the Bengal Chowkidari Act.
1882	Lord Ripon’s Resolution on Local Self-Government—considered the foundational step for democratic decentralization in India.
1907	Royal Commission on Decentralisation was constituted to examine decentralisation in governance.
1948	Intense debates between Gandhi and Ambedkar on the idea of Gram Swaraj (village self-rule).
1957	Balvantray Mehta Committee recommended: Three-tier Panchayati Raj structure at district, block, and village levels Elected bodies with a five-year term Devolution of powers to Panchayats Creation of Block Development Officer (BDO) post
1963	K. Santhanam Committee recommended Revenue raising powers to Panchayats Establishment of State Panchayati Raj Finance Commissions
1978	Ashok Mehta Committee suggested: Two-tier Panchayati Raj structure (district and block levels) Making district the key administrative unit
1985	G.V.K. Rao Committee recommended strengthening of Block Development Offices (BDOs) to plan, implement, and monitor rural development programmes.
1986	L.M. Singvi Committee recommended: Constitutional status to Panchayati Raj Institutions (PRIs) Emphasized the Gram Sabha as the base of decentralized democracy
1993	73rd Constitutional Amendment Act passed: Granted constitutional status to Panchayati Raj Introduced Part IX in Constitution Added 11th Schedule with 29 functional areas for Panchayats Mandated three-tier structure—Village, Intermediate (Block), and District levels
1996	PESA (Panchayats Extension to Scheduled Areas) Act enacted to extend Panchayati Raj provisions to Fifth Schedule tribal areas. Ten States Covered under PESA: Andhra Pradesh, Chhattisgarh, Gujarat, Himachal Pradesh, Jharkhand, Madhya Pradesh, Maharashtra, Odisha, Rajasthan and Telangana
2004	Union Ministry of Panchayati Raj was created.
2013	Thirteenth Finance Commission recommended a share for Panchayats in the Union divisible pool.
2020	Prime Minister Narendra Modi launched the 'Vocal for Local' initiative, further encouraging rural economic empowerment through local governance.

Mandatory Framework of Panchayats

Legal & Constitutional Framework of Panchayats

Key Articles of the Constitution under Part IX:

243B: Three-tier Panchayats (village, intermediate, district)
243D: Mandates reservation of seats for SCs, STs, and women (including SC/ST women)
243E: Regular elections every 5 years
243F: Disqualifications
243I: Mandates the constitution of State Finance Commission
243K: Provides for the constitution of State Election Commission (SEC) to oversee Panchayat elections
243ZD: Mandates the establishment of District Planning Committees

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