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Panchayat Act Faces Crisis Of Relevance

By Dr.Vikash Agarwal

Rourkela: As Odisha’s rural landscape transforms under the dual pressures of climate change and youth migration, the foundational law of village self-governance, the Odisha Grama Panchayats Act, 1964, is at a critical crossroads. While the Act established a robust framework for local democracy, its full potential remains untapped due to persistent challenges.

Recent government discussions and news reports highlight key areas of concern. One of the most significant is the financial dependency of Grama Panchayats on the state government. While the Act grants them powers to raise revenue, a substantial portion of their funds comes from state grants. These grants, often tied to specific schemes and subject to delays, limit the autonomy and flexibility of local bodies. This financial constraint impedes their ability to initiate independent development projects that are specifically tailored to the needs of their communities.

Another major challenge is the lack of administrative and technical capacity. Many Panchayats do not have the necessary personnel, such as engineers and accountants, to effectively manage and monitor complex development projects. This capacity gap can lead to inefficiencies and a slowdown in the implementation of vital infrastructure and welfare schemes. The state government is actively seeking solutions to this, including plans to restructure panchayats ahead of the 2027 rural polls to improve service delivery and scheme implementation.

Additionally, reports indicate that low civic participation remains a persistent issue. The PalliSabha, a forum for direct democracy, often sees low attendance, which reduces the accountability of elected representatives and deprives the Grama Panchayat of valuable community input. Efforts are underway to address this by increasing public awareness and making governance more transparent. The introduction of state-level panchayat awards is one such initiative, aimed at incentivizing better performance and encouraging greater engagement.

In response to these challenges, the Odisha government has initiated several reforms. In a move to strengthen grassroots governance, the government is considering a comprehensive restructuring of Grama Panchayats before the 2027 elections. This initiative, guided by the Governor’s advice, aims to ensure that both central and state government schemes reach beneficiaries more effectively. Furthermore, new schemes are being introduced to enhance rural development and reduce disparities between urban and rural areas. For instance, the government has announced a new initiative to build schools in Gram Panchayat headquarters, with a focus on improving foundational education and aligning with the National Education Policy.

The future of the Odisha Grama Panchayats Act, 1964, hinges not only on legislative measures but also on the active collaboration of state agencies, elected representatives, and a vigilant citizenry. By addressing financial, administrative, and participatory roadblocks, Odisha can ensure its Panchayats evolve from mere compliance mechanisms into genuine engines of development, creating a more responsive and inclusive governance system for the villages and for the future.