Self-Reliant Panchayats to Drive India's Journey Towards Viksit Bharat
The Secretary of the Ministry of Panchayati Raj, Shri Vivek Bhardwaj, has emphasised that self-reliant panchayats are central to India's vision of becoming a Viksit Bharat (Developed India) by 2047.
What happened
The Secretary of the Ministry of Panchayati Raj, Shri Vivek Bhardwaj, has emphasised that self-reliant panchayats are central to India's vision of becoming a Viksit Bharat (Developed India) by 2047. Panchayati Raj Institutions (PRIs) constitute the third tier of India's federal structure, empowered by the 73rd Constitutional Amendment (1992), which mandated devolution of powers, functions, and finances to local bodies. Despite constitutional provisions, many panchayats remain financially dependent on grants from state and central governments, limiting their autonomy and service delivery capacity. The push for self-reliance focuses on enhancing Own Source Revenue (OSR), digital governance, convergence of schemes, and capacity building of elected representatives. This initiative directly aligns with the government's broader agenda of grassroots democracy, inclusive growth, and achieving Sustainable Development Goals at the local level. For UPSC, this topic intersects governance, federalism, fiscal decentralisation, and rural development — all high-frequency areas across GS2 and GS3.
The 73rd Constitutional Amendment Act, 1992 gave constitutional status to Panchayati Raj Institutions and inserted Part IX (Articles 243–243O) into the Constitution.
●It mandated the establishment of a State Finance Commission (SFC) every five years to review financial positions of panchayats, and a State Election Commission for conducting panchayat elections.
●The Eleventh Schedule lists 29 subjects that may be devolved to panchayats.
●However, devolution remains discretionary for states — a critical limitation.
●Own Source Revenue (OSR) of panchayats in India is extremely low (often below 1% of total revenue), making financial self-reliance a governance challenge.
●The Gram Panchayat Development Plan (GPDP) and e-Gram Swaraj portal are key digital tools for planning and transparency at the panchayat level.
The 73rd Amendment created the constitutional framework for panchayat empowerment, but true self-reliance requires states to genuinely devolve the 3Fs — Functions, Functionaries, and Finances — to local bodies.
◎ In Simple Words
Think of India as a big tree — the central government is the trunk, state governments are the branches, and panchayats are the roots that actually touch the soil where most people live. Right now, many panchayats depend on money given by the government above them, like a child always asking parents for pocket money. The idea of 'self-reliant panchayats' means these village bodies should earn their own money — like through local taxes or fees — so they can make their own decisions and build better roads, schools, and hospitals. This is seen as a key step for India to become a fully developed country by 2047.
Factual Pointers
Practice · 1 question
Which of the following correctly describes the constitutional provision for State Finance Commissions (SFCs) under the 73rd Amendment?