Index of Panchayat Devolution 2024 – Reported in 2025

Introduction

The Index of Panchayat Devolution 2024, a crucial tool for assessing local governance indicators, has been meticulously prepared by the Indian Institute of Public Administration (IIPA) in collaboration with the Ministry of Panchayati Raj. This comprehensive evaluation provides insights into the effectiveness of rural empowerment and the financial devolution of power to Panchayati Raj Institutions (PRIs) across Indian states. The index is instrumental in gauging the depth of community-led governance under the 73rd Constitutional Amendment, which aims to strengthen grassroots development and promote village-level autonomy.

Six Dimensions of the Devolution Index

The Index of Panchayat Devolution evaluates the following six dimensions to measure the extent of devolution and rural transformation:

1. Framework: Legal and institutional setup supporting PRIs, including the implementation of Article 243G
2. Functions: Range and depth of responsibilities devolved to Panchayats, emphasizing functional devolution
3. Finances: Financial decentralization, fiscal autonomy, and timely fund transfers
4. Functionaries: Availability and deployment of staff at local levels for effective village administration
5. Capacity Building: Training and skill development for PRI members, focusing on local capacity building
6. Accountability: Transparency, audit, and citizen grievance redressal mechanisms to ensure democratic engagement

Top 5 States in 2024 Rankings

These rankings reflect the success of rural policy implementation and the degree of community-led governance achieved in these states.

State-wise Highlights

Karnataka:

• Rank 1 overall
• Tops in Finances and Accountability
• Strong mechanisms for financial devolution, timely grants, and data transparency
• Exemplary in local resource mobilization

Kerala:

• Ranks 1st in Framework dimension
• Strong legal support and consistent performance in Finances and Transparency
• Leader in community-driven development initiatives

Tamil Nadu:

• Highest score in Functions
• Second in Capacity Building and Functionaries
• Known for effectively devolving administrative control and responsibilities
• Successful implementation of participatory planning processes

Areas of Concern

Manipur, Arunachal Pradesh, and Jharkhand:

• Among the lowest-ranked states
• Weak performance across most devolution parameters
• Challenges in rural decision-making and grassroots governance

Maharashtra:

• Despite being in the top 5, it is the only state with a declining score since the last index
• Signals stagnation in reforms and need for renewed focus on empowering Panchayats

Importance for Competitive Exams

The Devolution Index Report is significant under topics like:

• Constitutional Bodies & Panchayati Raj
• Governance and Decentralization
• Current Affairs on Rural Development and Federalism
• Viksit Bharat initiatives and cooperative federalism

It directly connects to GS Paper II (UPSC), Polity, and Rural Development modules in State PCS syllabi. The Index of Panchayat Devolution is crucial for understanding the progress of local self-government, community-based organisations, and sustainable development in rural areas.

Quick Recap for MCQ Prep

• Prepared by: Indian Institute of Public Administration (IIPA)
• In collaboration with: Ministry of Panchayati Raj
• Top State: Karnataka
• Dimensions Evaluated: Framework, Functions, Finances, Functionaries, Capacity Building, Accountability
• Purpose: To assess the strength of devolution of power and empower rural local self-governance
• Key initiatives: Rashtriya Gram Swaraj Abhiyan and Sashakt Panchayat-Netri Abhiyan
• Important aspects: State Finance Commission recommendations, own-source revenue generation, and elected women representatives in PRIs

The Index of Panchayat Devolution serves as a vital tool for policymakers, researchers, and aspirants to understand the progress and challenges in India’s journey towards effective community-led governance and rural transformation. The Devolution Index Report provides comprehensive insights into the state of financial devolution and grassroots democracy across the country, making it an essential resource for those studying or working in the field of local governance.