Policy Research Working Paper released by the World Bank Group analyzed the role of 73^rd Constitutional Amendment in shaping India’s democratic trajectory.

• Constitution (Seventy-third Amendment) Act, 1992 enshrined certain basic and essential features of Panchayati Raj Institutions (PRIs) in the Constitution to impart certainty, continuity, and strength to them.

Key Findings of the Paper

• Lack of Funds: PRIs rely almost entirely on grants made by state and national authorities.
• Lack of Functionaries: Scarcity of Panchayat Secretaries. e.g., on average, 0.67 Panchayat Secretaries per Gram Panchayat, with the number falling to 0.33 in states like Uttar Pradesh.
• Recentralisation Process: Autonomy of local governments are being eroded due to MIS-based beneficiary selection, digital tracking of beneficiaries, etc.
• Effects of reservation: Reservation for women and castes changed profile of households that produce candidates.

Key Recommendations

• Build local tax capacity: Build better property records, give Panchayats more freedom to levy taxes, etc.
• Strengthen Gram Sabhas: Increase their frequency and expand their powers to encompass critical areas such as village planning and the selection of beneficiaries for public programs.
• SHG-Panchayat linkages: Creating more convergence and coordination between the two would also improve the functioning of Panchayats and balance their decisions more towards the needs of women.