2017 · GS Paper 2 · Q1 · 10 marks

The local self-government system in India has not proved to be effective instrument of governance. Critically examine the statement and give your views to improve the situation.

In short

Local self-government in India has underperformed mainly because states withhold funds, functions and functionaries, though it has widened inclusion and participation. Overall devolution to Panchayats rose only from 39.9% in 2013-14 to 43.9% in 2021-22 on the Panchayat Devolution Index.

Model answer

Ghissu Editorial · Verified 4 Oct 2026

Introduction
Three decades after the 73rd and 74th Amendments, the Panchayat Devolution Index shows devolution rising only from 39.9% (2013-14) to 43.9% (2021-22). The statement is largely true, but the fault lies in what states withhold.
Why Local Self-Government Falls Short
•

Funds without autonomy

The RBI's 2024 study found Panchayats' own revenue at about 1% of total revenue, so they spend tied grants rather than set priorities.

•

Functions withheld

Line departments keep the staff and schemes of the 29 Eleventh Schedule subjects, a gap the Second ARC's report on local governance (2007) flagged.

•

Elections and capture

In Suresh Mahajan (2022) the Supreme Court had to order overdue local polls, and proxy "sarpanch-pati" rule led to the Sushil Kumar Committee (2023).

Where Local Bodies Have Delivered
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Inclusion

Reservation under Article 243D has brought women to nearly half of elected Panchayat seats (PIB, 2026).

•

Participatory delivery

Kerala's People's Plan Campaign (1996) and MGNREGA social audits show that empowered Gram Sabhas plan better and curb leakage.

Making Local Governance Effective
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Activity mapping

Devolve the 3Fs subject by subject and give panchayats their own cadre.

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Fiscal muscle

Enforce property tax floors, timely State Finance Commissions and untied grants.

•

Capacity and audit

Scale RGSA training, e-GramSwaraj accounting and social audits.

Conclusion
Local self-government has underperformed because it was designed to depend on the state. Real devolution of funds, functions and functionaries will make it the democratic base that Article 40 envisaged.

This model answer is indicative and the model can make mistakes; please verify key facts independently.

Hand-drawn diagram: Why Local Bodies Underperform. Why Local Bodies Underperform. Diagram (fishbone): Why Local Bodies Underperform; Weak local governance; Few functions devolved; Thin own revenue; Borrowed staff; Delayed elections; Proxy representation; Parallel agencies
Diagram: Why Local Bodies Underperform

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This chapter in the exam

Devolution — Panchayati Raj6 questions

Asked in 6 of 14 sittings since 2013

2013
1
2014
–
2015
1
2016
–
2017
1
2018
1
2019
–
2020
1
2021
–
2022
1
2023
–
2024
–
2025
–
2026
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Question from the official UPSC Civil Services (Main) Examination 2017 paper. Answer written by Ghissu's engine and checked against our editorial standards. Found an error? Tell us and we correct it within 48 hours.

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