Decentralisation Efforts in India: An Analysis

A recent report by the Ministry of Panchayati Raj and the Indian Institute of Public Administration examines India's decentralisation via a state-level devolution index (DI).

Key Aspects Assessed

• Institutional framework guiding Panchayati Raj Institutions (PRIs)
• Operations of Gram Panchayats (GPs)
• Finances
• Local capacity building
• Accountability

Findings and Rankings

• Devolution to rural bodies increased from 39.9% in 2013-14 to 43.9% in 2021-22.
• Southern states like Karnataka, Kerala, and Tamil Nadu outperform others.
• Karnataka leads with a DI value of 72.23.
• Other good performers: Maharashtra, Uttar Pradesh, and Tamil Nadu.
• Biggest improvements: Uttar Pradesh and Bihar.
• Poor performers: Manipur, Arunachal Pradesh, Jharkhand, and Punjab.

Challenges Highlighted

• Inadequate finances and low own revenue.
• Shortages in infrastructure and manpower.
• Financial constraints leading to dependence on upper government tiers.
• Irregular constitution of State Finance Commissions (SFCs); only 10 states have a sixth SFC.
• Revenue expenditure of PRIs less than 0.6% of GSDP for all states.
• Lack of support staff and infrastructure, especially in northeastern and hilly states.

Representation of Women

• States like Punjab, Madhya Pradesh, and Karnataka fail to meet representation thresholds.
• Jharkhand, Tamil Nadu, and Chhattisgarh exceed mandated quotas.

International Examples

Switzerland and some Scandinavian countries showcase effective decentralisation yielding better developmental outcomes.

Recommendations

• Rethink rotation terms for reservations to once every two-three tenures.
• Align electoral rolls across different elections.
• Timely constitution of SFCs.
• Empower GPs to levy property tax.
• Regular recruitment and training for support staff.
• Appoint a local government ombudsman to ensure accountability.