What is the Panchayat Advancement Index (PAI)?
The Panchayat Advancement Index is designed as a composite performance metric that evaluates grassroots-level governance through the lens of Sustainable Development Goals (SDGs). It employs 435 carefully selected indicators, mapped across nine thematic areas aligned with the framework of Localisation of Sustainable Development Goals (LSDGs). This index seeks to identify gaps in development, encourage data-based decision-making, foster transparency, and promote participatory governance at the rural level. Importantly, the PAI aligns with the National Indicator Framework formulated by the Ministry of Statistics and Programme Implementation (MOSPI), thereby integrating local assessments with national priorities.
In its current form, the PAI has successfully captured data from 2.16 lakh Gram Panchayats across 29 States and Union Territories, reflecting the scale and depth of its coverage. The index classifies panchayats into five performance categories: Achiever, Front Runner, Performer, Aspirant, and Beginner. These categories are defined by score ranges, with ‘Achiever’ denoting the highest level of performance and ‘Beginner’ indicating the most nascent stage. However, data from 2022–23 reveals that no panchayat managed to achieve the highest category. A significant proportion, over 61 per cent, fell into the ‘Aspirant’ category, underlining the substantial developmental challenges that remain at the grassroots level.
The constitutional foundation for Panchayati Raj in India was laid by the 73rd Constitutional Amendment Act of 1992, which institutionalised PRIs as the third tier of government. This act introduced a three-tier structure comprising the Gram Panchayat at the village level, the Panchayat Samiti at the intermediate level, and the Zila Parishad at the district level. It also added Part IX to the Constitution, covering Articles 243 to 243-O, and introduced the Eleventh Schedule, which lists 29 subjects to be devolved to PRIs. These include critical areas such as agriculture, health, education, and rural development. Moreover, Article 40 of the Directive Principles of State Policy urges the State to organise and empower village panchayats, reinforcing the constitutional commitment to decentralisation.
Despite this strong legal framework, the functioning of PRIs in India is marred by several challenges. Financial autonomy remains severely constrained. Most panchayats rely heavily on grants from the state and central governments, with minimal generation of their revenue. A report by the Reserve Bank of India in 2022–23 showed that local revenue accounted for merely 1.1 per cent of their total income. Further compounding this issue is the irregular formation and weak capacity of State Finance Commissions, which are supposed to recommend devolution of financial resources to local bodies. Another major obstacle is the incomplete devolution of the 29 subjects listed in the Eleventh Schedule. In practice, many states have not transferred these functions in a meaningful way, resulting in panchayats being burdened with responsibilities without corresponding authority or resources. Technological and human resource deficits further impede effective governance. Only a limited number of states have achieved full computerisation of panchayat offices, and in several regions, such as Arunachal Pradesh and Odisha, internet penetration and digital literacy are markedly low. The absence of trained personnel and technical support hampers the ability of local bodies to plan and execute development projects efficiently.
Infrastructure gaps continue to hinder progress. In many states, Gram Panchayat offices lack basic amenities such as pucca buildings, electricity, internet access, and sanitation facilities. Although women constitute nearly 46.6 per cent of elected representatives in PRIs, their actual decision-making power is often undermined by patriarchal norms. The fragmentation of development efforts due to poor inter-departmental coordination also poses a serious concern. Multiple schemes implemented by various line departments often overlap or operate in silos, leading to inefficient resource use and duplication of efforts. Addressing these systemic challenges requires a multi-pronged approach. Financial empowerment is critical, and this can be achieved by strengthening State Finance Commissions, ensuring timely transfer of funds, and improving local revenue generation through modern tools like GIS-based property tax mapping.
References:
- The Hindu Business Line – 97% of claims settled under PMFBY; Andhra Pradesh tops in pending payouts
- The Indian Express – How the new Panchayat Advancement Index ranks rural local bodies
- The Wire – Panchayat Advancement Index: A Transformative Step Towards Keeping Children in Families
- Image by Freepik
