Panchayati Raj in India: Karnataka Tops the Devolution Index 2024

Introduction:

The Devolution Index (DI) 2024 report, created by the Union Ministry of Panchayati Raj and the Indian Institute of Public Administration (IIPA) in New Delhi, ranks Indian states based on how effectively they implement the Panchayati Raj system. This system focuses on empowering local governments to ensure decentralized governance. The report evaluates each state on six important aspects: Framework, Functions, Finances, Functionaries, Capacity Enhancement, and Accountability.

In the 2024 report, Karnataka has emerged as the best-performing state, followed by Kerala and Tamil Nadu. These states stand out for their strong local governance, good financial management, and the ability to transfer powers effectively to local authorities. This report serves as a guide to highlight best practices and identify areas where other states can improve.

Key Findings of the Devolution Index Report 2024:

• Karnataka tops the list with a score of 72.23.
• Kerala follows with 70.59.
• Tamil Nadu is in third place with 68.38.
• Maharashtra (61.44), Uttar Pradesh (60.07), and Gujarat (58.26) are also among the top six states.
• The national average score is 43.89, showing a gap between top states and others.
• Bihar, Assam, Sikkim, and Uttarakhand are closer to the national average, indicating room for improvement.

Performance Across Key Dimensions:

1. Framework (Legal and Institutional Structure):

   • Top State: Kerala (83.56)
   • Other High Scorers: Maharashtra (74.74), Karnataka (74.43), Haryana (73.3)
     This dimension looks at the legal framework governing Panchayats, such as elections, reservation policies, and oversight commissions.

2. Functions (Powers Delegated to Panchayats):

   • Top State: Tamil Nadu (60.24)
   • Karnataka ranks second with 57.62, just ahead of Odisha (57.46).
     Karnataka gives Gram Panchayats the maximum taxation powers, making them more independent and capable of managing local finances.

3. Finances (Fiscal Decentralization and Funding):

   • Top State: Karnataka (70.65)
   • Other High Scorers: Kerala (62.89), Tamil Nadu (55.78), Rajasthan (54.56)
     Karnataka stands out for ensuring timely release of funds, giving Panchayats financial independence to manage their operations efficiently.

4. Accountability (Transparency and Governance Monitoring):

   • Top State: Karnataka (81.33)
   • Other High Scorers: Kerala (81.18), Maharashtra (80.36), Uttar Pradesh (76.07)
     Karnataka is known for its strong social audits, well-functioning Gram Sabhas, and high financial transparency.

5. Functionaries (Manpower and Resources at Panchayats):

   • Top State: Gujarat (90.94)
   • Other High Scorers: Tamil Nadu (84.25), Kerala (82.99)
     Karnataka has a high number of Panchayat officials, ensuring that local governance functions smoothly.

6. Capacity Building (Training and Skill Development for Officials):

   • Top State: Telangana (86.19)
   • Other High Scorers: Tamil Nadu (84.29), Gujarat (83.96)
     Karnataka ranks among the top 10 for its focus on training Panchayat officials and elected representatives to improve governance.

Reasons for Karnataka Leading in Panchayat Governance:

• Strong Fiscal Autonomy: Karnataka ensures timely release of funds, allowing Panchayats to manage finances independently and efficiently.

• Effective Local Governance: The state has well-functioning Gram Sabhas and effective social audit mechanisms, ensuring transparency and citizen participation.

• Empowered Gram Panchayats: Gram Panchayats in Karnataka have significant powers in taxation and local decision-making, which strengthens their role in local governance.

• Capacity Building Programs: Karnataka prioritizes training for Panchayat officials to help them manage local governance challenges effectively.

• Digitization and Transparency: Through e-Governance initiatives, Karnataka has improved service delivery and reduced corruption, promoting transparency in local governance.

Challenges and Areas for Improvement:

• States with Moderate Performance: Bihar, Assam, Sikkim, and Uttarakhand need to improve financial support and institutional reforms to strengthen their Panchayati Raj systems.

• State Finance Commissions (SFCs): Many states, including Karnataka, need to better implement the recommendations of State Finance Commissions (SFCs) to ensure effective resource distribution.

• Capacity Building: While Karnataka excels in training programs, rural Panchayat functionaries in other states need broader coverage for better governance.

Conclusion:

Karnataka's top ranking in the Devolution Index 2024 reflects its strong commitment to empowering Panchayati Raj institutions and ensuring financial autonomy, accountability, and transparency at the local level. The state’s success, along with Kerala and Tamil Nadu, provides an example for other states to follow. To improve, other states should focus on strengthening financial management, expanding training programs, and reinforcing institutional frameworks. A well-functioning Panchayati Raj system is vital for achieving inclusive rural development and fostering participatory democracy across India.