Parliament panel calls for boosting panchayats' own-source revenue

A parliamentary panel has urged the government to boost gram panchayats' own revenues and chart a roadmap for next-generation Panchayati Raj reforms

A standing committee of Parliament has directed the government to formulate a comprehensive strategy to strengthen own source revenues of gram panchayats and promote financial decentralisation.

 

This comes as panchayats continue to depend predominantly on external transfers as their capacity to mobilise own source revenues remains limited.

 

The panel also directed the government to undertake a comprehensive review of the functioning of Panchayati Raj institutions (PRIs) and formulate a roadmap for the “next generation of panchayat reforms.”

 

This would strengthen democratic decentralisation, financial sustainability and citizen participation.

 

In a report tabled in Parliament on Wednesday, the department-related Parliamentary Standing Committee on Rural Development and Panchayati Raj said while PRIs have emerged as important instruments of democratic decentralisation over the past three decades, several structural challenges continue to persist.

 

“The committee is 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.

 

It 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 generation of panchayat reforms.”

 

The roadmap, it said, should focus on “deepening democratic decentralisation, strengthening institutional capacities, enhancing financial sustainability, promoting digital governance and ensuring greater citizen participation.”

 

The committee also expressed concern that Gram Sabha meetings were losing their vitality.

 

“The committee notes with concern... that in many areas, Gram Sabha meetings are becoming ceremonial in nature and public participation has declined considerably,” it said.

 

Warning that this would weaken grassroots democracy, the report said, “The committee is of the view that weakening of Gram Sabhas would adversely affect the spirit of democratic decentralisation envisaged under the Constitution.”

 

It recommended that the ministry, in coordination with states and Union Territories (UTs), take “concerted measures for revitalisation of Gram Sabhas through awareness campaigns, use of digital platforms, social mobilisation and greater participation of women, youth and vulnerable sections” and evolve mechanisms to periodically assess the quality and effectiveness of Gram Sabha functioning.

 

The committee further noted concerns regarding “excessive concentration of powers at the Gram Panchayat level and inadequate empowerment of intermediate and district panchayats.”

 

It said weakening higher tiers “adversely affects integrated planning and coordinated development and undermines the spirit of democratic decentralisation.”

 

It recommended that the ministry encourage states and UTs to strengthen Panchayat Samitis and Zila Parishads and examine ways to enhance the role and authority of elected representatives in PRIs.

 

The committee also highlighted concerns over the functioning of women's reservation in PRIs.

 

It appreciated that reservation has resulted in women constituting nearly half of the elected representatives in PRIs.

 

The panel noted “with concern reports of proxy representation by male family members and inadequate institutional support available to newly elected women representatives.”

 

The panel recommended effective implementation and periodic monitoring of the ministry's advisory on the issue.

 

It called for “separate training modules and mentoring mechanisms involving self-help groups and experienced women representatives,” with special focus on Scheduled Caste and Scheduled Tribe women representatives.