Structure and Major Functions of Panchayati Raj Institutions (PRIs) in India

The Panchayati Raj Institutions (PRIs) in India represent the framework of rural local self-government, established to ensure democratic decentralisation of power and promote participatory governance at the grassroots level. They constitute a three-tier system of governance designed to enable local decision-making, planning, and development. The institutionalisation of Panchayati Raj was a landmark reform that strengthened India’s democratic fabric by giving people a direct role in managing local affairs.

Historical Background

The concept of Panchayati Raj draws its roots from India’s ancient village governance systems, where the panchayat (council of five elders) managed local administration and dispute resolution. However, the modern structure of PRIs was formally introduced after independence.
Key milestones include:

• 1957: The Balwantrai Mehta Committee recommended the establishment of a three-tier Panchayati Raj system to promote democratic decentralisation.
• 1959: Rajasthan became the first state to implement the Panchayati Raj system, followed by Andhra Pradesh.
• 1977: The Ashok Mehta Committee suggested a two-tier system and greater powers for local bodies.
• 1992: The 73rd Constitutional Amendment Act institutionalised the Panchayati Raj system in India, providing it with constitutional status.

This amendment inserted Part IX (Articles 243–243O) into the Constitution and added the Eleventh Schedule, which lists 29 subjects to be transferred to Panchayati Raj bodies.

Constitutional and Structural Framework

The 73rd Constitutional Amendment Act, 1992, provides the legal and institutional framework for PRIs in India. It mandates the creation of a three-tier system in every state, ensuring uniformity and decentralisation across rural governance structures.
The three levels of Panchayati Raj Institutions are:

1. Gram Panchayat (Village Level)
2. Panchayat Samiti (Block or Intermediate Level)
3. Zila Parishad (District Level)

Each tier functions as a distinct body of governance with defined composition, powers, and responsibilities.

1. Gram Panchayat

The Gram Panchayat operates at the village level and is the basic unit of rural governance.

• Composition:
  • Headed by the Sarpanch (Pradhan), elected directly by the villagers.
  • Members (Panchs) are elected from the wards of the Gram Sabha area.
• Gram Sabha:The Gram Sabha consists of all registered voters in a village. It acts as the foundation of the Panchayati Raj system, deliberating and approving local development plans, budgets, and welfare schemes.
• Functions:
  • Maintenance of public infrastructure such as village roads, water supply, and sanitation.
  • Implementation of poverty alleviation and welfare schemes.
  • Maintenance of birth and death records.
  • Promotion of education, health, and agricultural extension services.
  • Mobilisation of local resources and collection of certain taxes and fees.

2. Panchayat Samiti

The Panchayat Samiti functions at the block or intermediate level, serving as a link between the village and district levels.

• Composition:
  • Headed by a Chairperson, elected by the members of the Panchayat Samiti.
  • Members include elected representatives from Gram Panchayats, Members of Legislative Assembly (MLAs), and Members of Parliament (MPs) from the area.
• Functions:
  • Coordination and supervision of the activities of Gram Panchayats.
  • Implementation of development programmes relating to agriculture, irrigation, animal husbandry, health, and rural industries.
  • Preparation of block-level development plans.
  • Management of community assets such as tanks, roads, and public buildings.
  • Monitoring of centrally sponsored and state development schemes.

3. Zila Parishad

The Zila Parishad operates at the district level, forming the apex body in the three-tier system.

• Composition:
  • Headed by a President (Adhyaksha) and Vice-President, elected from among the members.
  • Members include elected representatives from the Panchayat Samitis, MLAs, MPs, and representatives from reserved categories (SC/ST/Women).
  • The District Collector/Chief Executive Officer (CEO) acts as the administrative head and ensures coordination with government departments.
• Functions:
  • Preparation and approval of district development plans integrating plans from lower tiers.
  • Coordination and supervision of Panchayat Samitis and Gram Panchayats.
  • Implementation of major rural development and poverty alleviation schemes.
  • Monitoring of health, education, agriculture, and social welfare programmes.
  • Management of district-level infrastructure and public utilities.

Functions and Powers of PRIs

The Eleventh Schedule of the Constitution lists 29 subjects that can be devolved to PRIs by state governments. These subjects cover diverse aspects of rural development, social welfare, and economic planning.
Major functional areas include:

• Agriculture and Allied Activities: Development of agriculture, irrigation, horticulture, and animal husbandry.
• Land and Water Management: Minor irrigation, watershed development, and land improvement.
• Health and Sanitation: Maintenance of primary health centres, safe drinking water, and public sanitation.
• Education: Promotion of primary and adult education, management of schools and literacy programmes.
• Social Welfare: Welfare of women, children, Scheduled Castes (SCs) and Scheduled Tribes (STs).
• Rural Infrastructure: Development of village roads, housing, and electrification.
• Poverty Alleviation: Implementation of employment generation schemes such as MGNREGA.
• Natural Resource Management: Afforestation and environmental conservation.

Financial Structure of PRIs

Panchayati Raj Institutions derive their financial resources from three primary sources:

1. Own Sources: Local taxes, fees, and charges such as property tax, water tax, market fees, and license fees.
2. State Government Grants: Financial assistance for specific schemes and general functioning.
3. Central Government Transfers: Allocation under centrally sponsored schemes and Finance Commission grants.

The State Finance Commissions (SFCs), constituted every five years, recommend the distribution of financial resources between the state and PRIs. The Central Finance Commissions (CFCs) also recommend grants-in-aid to strengthen local bodies.

Reservation and Representation

To ensure inclusivity, the 73rd Amendment mandates:

• Reservation of Seats:
  • For Scheduled Castes (SCs) and Scheduled Tribes (STs) in proportion to their population.
  • For Women, at least one-third of total seats (some states have increased it to 50%).
• Rotation Policy: Reservation applies to different constituencies in successive elections.
• Direct Elections: Members of all three levels are directly elected by the people.

This has led to significant political empowerment of women and marginalised groups in rural governance.

Major Functions of PRIs

The Panchayati Raj system performs multiple functions that collectively contribute to rural development and local governance. Major functions include:

• Administrative Functions: Implementation of rural development programmes and local governance.
• Planning Functions: Preparation of local development plans in coordination with district authorities.
• Regulatory Functions: Regulation of trade, markets, land use, and public services.
• Developmental Functions: Execution of projects related to agriculture, infrastructure, education, and health.
• Social Justice Functions: Promotion of equality, dispute resolution, and protection of vulnerable groups.

Role in Rural Development

PRIs have become the cornerstone of India’s rural development strategy. Through decentralised planning and community participation, they have contributed to:

• Effective implementation of programmes like MGNREGA, PMAY-G, NRLM, and Swachh Bharat Mission.
• Promotion of local entrepreneurship and livelihood generation.
• Improved delivery of essential services such as health, education, and sanitation.
• Strengthened accountability through people’s participation in decision-making.

Challenges in the Functioning of PRIs

Despite their constitutional backing, PRIs face several challenges:

• Inadequate Devolution of Powers: States have not uniformly transferred the 29 subjects listed in the Eleventh Schedule.
• Financial Dependence: Limited revenue-generating capacity and dependence on higher-level grants.
• Capacity Deficit: Lack of administrative and technical expertise among elected representatives.
• Political Interference: Overlap between bureaucratic control and political autonomy.
• Gender and Social Barriers: Despite reservations, women and marginalised representatives often face constraints in effective participation.

Recent Reforms and Strengthening Measures

• Digital Governance Initiatives: Introduction of platforms like e-Panchayat Mission Mode Project for online service delivery and record management.
• Devolution Index: Annual evaluation by the Ministry of Panchayati Raj to assess state-level progress in decentralisation.
• Training and Capacity Building: Establishment of State Institutes of Rural Development (SIRDs) for training local representatives.
• Gram Panchayat Development Plans (GPDPs): Mandated participatory planning process integrating local needs with national priorities.

Significance of PRIs

Panchayati Raj Institutions embody the vision of “Gram Swaraj” (village self-rule) envisioned by Mahatma Gandhi. They serve as vehicles of participatory democracy, bridging the gap between citizens and administration. By empowering rural communities to identify and address their developmental priorities, PRIs contribute to inclusive growth, social equity, and democratic deepening at the grassroots level.