Status of Devolution to Panchayats in States – 2025 Report

During an event in New Delhi, the "Status of Devolution to Panchayats in States" Report received a public release from Union Minister of State Prof. S.P. Singh Baghel. The document presents an evidence-based state ranking system describing the extent of power distribution between Panchayati Raj Institutions and states. The evaluation analyzes State-related efforts to strengthen Panchayati Raj Institutions (PRIs) according to the 73rd Constitutional Amendment. The report stimulates states to enhance their local governance structure by ensuring better transparency accountability and operational efficiency.

About the Report

Prepared by: 

• Indian Institute of Public Administration (IIPA) commissioned by the Ministry of Panchayati Raj (MoPR).

Key Findings of the Report

Overall Devolution Trends (2013-14 to 2021-22):

• Rural Local Bodies received increased devolution which evolved from 39.9% to 43.9%.

• The Rashtriya Gram Swaraj Abhiyan (RGSA) led to an enhanced Capacity Enhancement Index that rose by 11 percentage points to 54.6%.

• Affiliations within local government functions saw a noteworthy rise from 39.6% to 50.9% because Panchayats received more infrastructure along with an expanded workforce.

Top 10 States in Panchayat Devolution Index:

Medium Scoring States (DI Score between 50-55):

• Andhra Pradesh, Himachal Pradesh, Madhya Pradesh, Odisha.

Success Stories:

• Uttar Pradesh (Rank 5, from Rank 15):

  • The implementation of various transparency and accountability reforms produced major achievements throughout the state.

  • Strengthened financial audits and anti-corruption measures.

• Tripura (Rank 7, from Rank 13):

  • The state successfully managed both its revenue collection and economic money-handling processes.

Devolution Index: Six Key Dimensions

• The state of Kerala holds the top position regarding mandatory framework implementation for devolution purposes.

• Tamil Nadu presents the most advanced system for transferring governance authorities.

• The government of Karnataka demonstrates exceptional performance in managing funds alongside the distribution of finances.

• Gujarat leads other states when it comes to developing personnel capabilities and managerial talent.

• Telangana stands foremost for improving the capacity of its public institutions.

• Karnataka establishes superior standards as the most transparent regional authority for governance.

Government’s Vision & Future Prospects

• Strengthening Panchayat Bhawans:

  • These locations function as multi-purpose centers that administer rural benefits consisting of Ayushman Bharat benefits together with pension system benefits and vital community programs.

• Digital Transformation in Panchayati Raj:

  • The establishment of new office facilities alongside internet networks together with proper accounting and auditing systems.

• Monitoring Fund Utilization:

  • The monitoring system should stop financial irregularities and corruption in local bodies that serve rural areas.

• Viksit Bharat & Gram Swaraj:

  • Panchayati Raj follows Prime Minister Modi's goal of rural India's economic self-sufficiency by applying Gandhi's concepts of Gram Swaraj.

Conclusion

The Devolution Index 2025 establishes itself as a benchmark tool that gauges Panchayati Raj Institution's (PRI) advancement in India. The Devolution Index 2025 establishes itself as a benchmark tool that gauges Panchayati Raj Institution's (PRI) advancement in India. The Devolution Index 2025 represents a significant landmark in evaluating Panchayati Raj Institution (PRIs) advancement in India. More reforms are needed in financial transparency and decentralization with enhanced accountability throughout states with lower standing in local governance than leaders. The development of PRIs stands as the key factor for establishing grassroots democracy and advancing rural development and sustainable governance.