Context: 

The Ministry of Panchayati Raj recently unveiled the report titled “Status of Devolution to Panchayats in States - An Indicative Evidence-Based Ranking.”

More on the News

• The Indian Institute of Public Administration (IIPA) had been responsible for conducting the study for 2023-24 and prepared a report comparing the devolution of functions, finances, and functionaries. 
• This comprehensive assessment by IIPA not only celebrates the achievements of high-performing States but also provides a road map for others to enhance their rural governance frameworks.

About the Devolution Index report:

The Devolution Index, based on meticulous research and empirical analysis, provides insights into the progress of decentralization across States and Union Territories in India.

Six Key Evaluation Dimensions: The Index goes beyond traditional metrics to assess six critical dimensions:

• Framework 
• Functions 
• Finances 
• Functionaries 
• Capacity Enhancement
• Accountability 

The Index particularly examines how much freedom Panchayats have in making and executing their own decisions reflecting the true essence of Article 243G of the Indian Constitution.

• Which empowers State legislatures to devolve powers and responsibilities to Panchayats on 29 subjects listed in the Eleventh Schedule.

Key Highlights of the Report

• This latest report reveals that devolution has increased from 39.9% to 43.9% between the period 2013-14 to 2021-22.
• With the launch of the Rashtriya Gram Swaraj Abhiyan (RGSA, 2018), the capacity enhancement component of the Index during this period has increased substantially from 44% to 54.6% i.e. an increase of more than 10%.
• The functional component of the Index has seen a substantial jump of more than 10% (from 39.6% to 50.9%).
• Top five states: -(1) Karnataka, (2) Kerala, (3) Tamil Nadu, (4) Maharashtra, (5) Uttar Pradesh.

• Uttar Pradesh jumped from 15th to 5th place because the state has revolutionized its accountability framework through innovative transparency initiatives and robust anti-corruption measures.
• Tripura's impressive leap from 13th to 7th place, particularly in revenue generation and fiscal management, demonstrates how smaller states are equally capable of achieving excellence in local governance.

Dimensions-wise top-scoring states: - 

• Framework – Kerala
• Functions – Tamil Nadu
• Finance – Karnataka
• Functionaries – Gujrat
• Capacity Enhancement – Telangana
• Accountability – Karnataka

Significance of the Index

It will serve as a tool for strengthening cooperative federalism and local self-governance. 

It enables States to identify areas that need improvement and adopt best practices for more empowered and effective Panchayats.

It offers transparency in tracking how Panchayats function and how resources are allocated.

It supports the vision of Viksit Bharat, where Panchayats play a foundational role in rural transformation, driving inclusive growth and sustainable development at the grassroots level.

It marks a key milestone in India's journey towards empowering PRI.

• It aligns to realize the vision of “Local Self Government” as outlined in the 73^rd Constitutional Amendment.