What happened: MoPR released a Devolution Index and listed PRI empowerment initiatives

The Ministry of Panchayati Raj (MoPR) released “Status of Devolution to Panchayats in States - An Indicative Evidence-Based Ranking, 2024” in February 2025. MoPR’s stated objective was to assess how effectively States devolve powers to Panchayats and how local governments strengthen grassroots democracy, with attention to financial and administrative empowerment of Panchayati Raj Institutions (PRIs).

MoPR linked PRI empowerment with Finance Commission-linked releases, capacity building under Revamped Rashtriya Gram Swaraj Abhiyan (RGSA), and a digital governance ecosystem for Panchayats. MoPR highlighted tools such as eGramSwaraj, AuditOnline, SAMARTH Panchayat portal, and transparency tools including Meri Panchayat and Panchayat NIRNAY, besides training modules for OSR (own source revenue).

Background and constitutional position: Panchayat devolution depends on State legislation

MoPR stated that Panchayat is a Local Government and a State subject under the Seventh Schedule. MoPR also cited Article 243G, under which State Legislatures may devolve powers and responsibilities upon Panchayats at the appropriate level (subject to conditions specified by law). The devolution covers plans for economic development and social justice and implementation of entrusted schemes, including matters in the Eleventh Schedule.

MoPR stated that many Gram Panchayats face constraints in implementing local development works because of inadequate financial resources, shortage of manpower, and limited administrative powers.