Panchayati Raj challenges after the 73rd Amendment and Odisha’s Gram Panchayats – OPSC OAS Mains GS Paper II PYQ

📝Model Answer

Introduction

The 73rd Constitutional Amendment Act, 1992, gave constitutional status to Panchayati Raj Institutions (PRIs), creating a three-tier structure of local self-government and inserting Part IX and the Eleventh Schedule, which lists 29 subjects for devolution to Panchayats. Despite institutionalising grassroots democracy, PRIs—including Gram Panchayats in Odisha—continue to face significant challenges that limit their effectiveness as units of local governance.

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Challenges Faced by PRIs (General and Odisha-Specific)

1. Incomplete devolution of powers — Many States, including Odisha, have not effectively transferred all 29 subjects, leaving PRIs without real functional authority over the "3 Fs" (functions, functionaries, funds).
2. Financial dependence — PRIs rely heavily on State and Central grants, with a weak own-revenue base; in Odisha, Gram Panchayats have limited taxation capacity and depend largely on tied funds.
3. Functionary deficit — Shortage of trained staff and over-dependence on line-department officials weaken administrative capacity at the panchayat level.
4. Bureaucratic dominance — Excessive control by State officials (e.g. BDOs and Collectors) over panchayat functioning curtails the autonomy of elected representatives.
5. Proxy representation — The phenomenon of "Sarpanch Pati" and elite capture undermines genuine participation of women, SC, ST and marginalised members despite reservations.
6. Capacity and awareness gaps — Low literacy, lack of training and limited awareness of rights and procedures among elected members reduce effective governance, a notable concern in tribal Odisha.
7. Irregular Gram Sabhas — Weak functioning of Gram Sabhas, low attendance and poor social audit limit transparency and accountability, including in Odisha’s rural areas.

Doable Reforms (General, All-India)

1. Genuine devolution — Implement activity mapping to clearly transfer functions, functionaries and funds for all 29 subjects to PRIs.
2. Strengthen financial autonomy — Empower PRIs to levy and collect local taxes, ensure timely untied State Finance Commission devolution, and reduce dependence on tied grants.
3. Capacity building — Institutionalise regular training and digital literacy for elected representatives through bodies like SIRDs and panchayat academies.
4. Empower Gram Sabhas — Make Gram Sabha meetings mandatory and effective, with social audits and citizen participation as the basis of accountability.
5. Reduce bureaucratic control — Redefine the role of officials as facilitators rather than controllers, granting PRIs genuine decision-making power.
6. Leverage technology — Use e-governance platforms (e.g. e-GramSwaraj) for transparency, fund tracking, online services and real-time monitoring.
7. Strengthen women’s leadership — Curb proxy representation through training, leadership programmes and strict enforcement against "Sarpanch Pati."

Reforms in the Specific Context of Odisha

1. Empower Gram Panchayats in tribal areas — Effective implementation of PESA, 1996, in Scheduled Areas to give Gram Sabhas control over minor forest produce, land and local resources.
2. Strengthen own-source revenue — Support Odisha’s Gram Panchayats in mobilising local revenue from markets, fisheries, minor minerals and property taxes.
3. Capacity building in local languages — Conduct training in Odia and tribal languages to bridge literacy and awareness gaps among elected members.
4. Convergence with State schemes — Integrate PRIs more closely with Mission Shakti SHGs, MGNREGA and rural livelihood missions for grassroots delivery.
5. Activate Gram Sabhas and Palli Sabhas — Strengthen Palli Sabhas (ward-level meetings) in Odisha to deepen participatory planning and social audit.
6. Fill vacancies and staff support — Provide adequate technical and administrative staff to Gram Panchayats to reduce dependence on block-level officials.
7. Digital and infrastructure push — Expand internet connectivity and Panchayat-level service centres in remote and tribal districts for better service delivery.

Conclusion