Previous Year Question

The fundamental principle of the Panchayati Raj system is Decentralisation. Its purpose is to ensure that powers of governance and decision-making are not concentrated only at the Union or State level but are carried down to the local level, enabling elected local representatives to take decisions and participate in development according to local needs.

Under this system, governance is brought closer to the people. A democratic institutional structure operates through the Gram Panchayat at the village level, Panchayat Samiti/Block Panchayat at the intermediate level and Zila Panchayat at the district level.

After the 73rd Constitutional Amendment, this decentralised framework of Panchayati Raj received constitutional strength. Article 243G enables State Legislatures to devolve such powers and responsibilities upon Panchayats as may be necessary to enable them to function as institutions of self-government and to prepare and implement plans for economic development and social justice.

Therefore, the purpose of Panchayati Raj is not merely to make people politically aware or to educate peasants. Political awareness and public participation may result from the system, but its fundamental institutional objective is the decentralisation of democratic power and administration.

In practical terms, decentralisation also involves the transfer of Functions, Funds and Functionaries towards local institutions. The actual extent of devolution may differ among States because Panchayats, as “Local Government”, fall within the State sphere and their practical functioning is shaped by the respective State laws.