SYLLABUS

GS-2: Indian Constitution—Features, Amendments, Significant Provisions; Devolution of Powers and Finances up to Local Levels and Challenges Therein. 

Context: The Ministry of Panchayati Raj celebrated the National Panchayati Raj Day (NPRD) on 24th April 2026 at Vigyan Bhawan in New Delhi. 

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• The day highlights the importance of decentralised governance, grassroots democracy, and participatory development in India.

• A key highlight of the occasion was the launch of the Panchayat Advancement Index (PAI)–2.0, aimed at improving monitoring and evaluation of Panchayat performance.

• The government reiterated its commitment to “Viksit Bharat @ 2047” through empowered local bodies, emphasising last-mile service delivery. 

About Panchayat Advancement Index (PAI)–2.0 

• PAI is a composite index designed to assess the performance of Gram Panchayats (GPs) across multiple development indicators. 

• Under it, the United Nations' Global SDGs have been localized into 9 thematic LSDGs (Localized Sustainable Development Goals), namely – s

• Poverty-Free and Enhanced Livelihoods Panchayat 
• Healthy Panchayat 
• Child-Friendly panchayat 
• Water-Sufficient panchayat 
• Clean and Green panchayat 
• Self-Sufficient Infrastructure Panchayat 
• Socially Just and Secured Panchayat
• Panchayat with Good Governance 
• Women-Friendly Panchayat

• The revised PAI 2.0 rationalises the indicator framework, reducing it from 516 indicators in PAI 1.0 to 150 indicators, thereby improving data quality, ease of reporting, and usability. 

About the National Panchayati Raj Day

• National Panchayati Raj Day is observed annually on 24th April to commemorate the enactment of the 73rd Constitutional Amendment Act, 1992, which came into force on 24 April 1993.

• This amendment granted constitutional status to Panchayati Raj Institutions (PRIs).

• The provisions related to Panchayats are laid down in Part IX of the Constitution of India. 

• The day was first observed on 24 April 2010, when it was declared by the then Prime Minister Manmohan Singh. 

About the Panchayati Raj System and its Historical Background

• The Panchayati Raj system refers to local self-government institutions in rural India, structured as a three-tier structure: Gram Panchayat (GP), Block Panchayat (BP), and District Panchayat (DP). 

• The Panchayati Raj System has roots in ancient India, where village assemblies (sabhas and samitis) managed local affairs. 

• After independence, the need for decentralized governance led to the recommendation of the Balwant Rai Mehta Committee (1957), which proposed a three-tier Panchayati Raj structure. 

• This system was formally strengthened by the 73rd Constitutional Amendment Act, granting constitutional status to Panchayats and making Panchayati Raj institutions mandatory.

• Rajasthan became the first state to implement it in 1959, when this system was inaugurated in the Bagdari village in the Nagaur district on 2nd October 1959 by Prime Minister Jawaharlal Nehru.

Objectives of the Panchayati Raj System

• The Panchayati Raj System is guided by a set of core objectives aimed at strengthening local governance and improving developmental outcomes:

• Ensuring active participation of people in the planning and implementation of development programmes.
• Enhancing accountability by making elected representatives directly answerable to local communities.
• Improving the efficiency and responsiveness of public service delivery in rural areas.
• Enabling more targeted and effective implementation of government schemes through local institutions.
• Promoting inclusive development by ensuring representation of marginalised groups, including women, Scheduled Castes, and Scheduled Tribes. 

Initiatives Taken to Strengthen the Panchayati Raj System

• e-Gram Swaraj Platform: The government has developed the e-Gram Swaraj portal as an integrated digital platform for planning, budgeting, accounting, and monitoring Panchayat activities, thereby improving transparency, accountability, and real-time tracking of development works. 

• AuditOnline: The AuditOnline system enables online auditing of Panchayat accounts, ensuring timely financial scrutiny, reducing leakages, and strengthening fiscal discipline at the grassroots level. 

• Rashtriya Gram Swaraj Abhiyan (RGSA): Under RGSA, the government focuses on capacity building of elected representatives and Panchayat functionaries through structured training, institutional strengthening, and knowledge-sharing initiatives to improve governance outcomes. 

• SVAMITVA Scheme: This scheme uses drone-based mapping technology to provide legal ownership records of rural properties, thereby empowering Panchayats with better revenue generation capabilities and reducing land-related disputes. 

SOURCES:
Newsonair
PIB
PIB