| Abstract: | Panchayati Raj Institutions are an important foundation of democratic decentralisation in India. The 73rd Constitutional Amendment Act, 1992 gave constitutional status to local self-government and created a framework for greater participation in rural governance. However, the existence of elected Panchayats has not always resulted in meaningful local autonomy or effective decision-making. This paper examines the role of Panchayati Raj Institutions in strengthening grassroots democracy and identifies the major challenges that affect their functioning. It focuses particularly on the incomplete devolution of functions, funds and functionaries, financial dependence, administrative limitations, weak participation in Gram Sabhas, and gaps in institutional capacity. The paper also explores pathways for strengthening local governance through genuine devolution, greater fiscal autonomy, capacity building, digital governance, wider citizen participation and stronger accountability mechanisms. It argues that effective democratic decentralisation requires more than constitutional recognition. It requires Panchayats to have adequate authority, resources and institutional capacity to respond to local needs. |
