Why is it in news?
- In January 2026, the Union Government renamed MGNREGA to PM-GRAM (Pradhan Mantri Garib Rozgar Aur Maan), reviving debate on Mahatma Gandhi’s Gram Swaraj vision and grassroots self-rule.
- The renaming triggered political and constitutional discussions on decentralisation, federalism, and weakening of local self-governance institutions, central to Gandhi’s village-centric democratic philosophy.
Relevance
- GS 2 (Polity/Constitution): Decentralisation, 73rd Constitutional Amendment, Panchayati Raj system, cooperative federalism, and institutional capacity.
- GS 3 (Governance/Development): Local governance efficacy, fiscal decentralisation, public service delivery, and grassroots democracy.
Basics: what is Gram Swaraj?
Gandhian conception
- Gram Swaraj envisioned villages as self-reliant, self-governing republics, managing economic, social, and political affairs locally, with minimal dependence on distant central authority.
- Gandhi viewed villages not as backward units but as foundations of participatory democracy, ethical governance, and dignified livelihoods.
Core principles
- Political decentralisation through empowered Gram Sabhas
- Economic self-sufficiency via local production and employment
- Social justice through inclusivity and moral leadership
- Accountability through direct citizen participation
Constitutional and institutional framework in India
Constitutional mandate
- The 73rd Constitutional Amendment Act, 1992 institutionalised Panchayati Raj, recognising Panchayats as institutions of self-government under Part IX of the Constitution.
- The 11th Schedule lists 29 subjects intended for devolution to Panchayats, including agriculture, health, education, poverty alleviation, and rural development.
Gram Sabha’s legal role
- Gram Sabha is constitutionally recognised as the foundation of village democracy, empowered to approve plans, identify beneficiaries, and conduct social audits.
Reality check: limits of devolution in practice
Incomplete “3Fs” devolution
- Despite constitutional backing, functions, finances, and functionaries remain inadequately devolved, with States retaining significant administrative and fiscal control.
- As per multiple Finance Commission reports, Panchayats receive limited untied funds, constraining autonomous decision-making.
Fiscal dependence
- Own-source revenue of Panchayats remains below 5–7% of their total expenditure in most States, leading to dependence on State and Union transfers.
- Delays in fund release and tied grants further weaken local planning capacity.
Administrative centralisation vs local autonomy
Bureaucratic dominance
- Key development schemes are designed centrally, with Panchayats acting as implementing agencies rather than decision-makers.
- Line departments often bypass elected local bodies, undermining democratic accountability at the village level.
Scheme-centric governance
- Flagship programmes increasingly follow top-down templates, limiting flexibility for local innovation and context-specific solutions, contrary to Gram Swaraj ideals.
Gram Swaraj and MGNREGA: conceptual linkage
Original intent
- MGNREGA was conceived as a demand-driven, rights-based programme, anchored in Gram Sabha decision-making for work selection and social audits.
- It aligned closely with Gram Swaraj by promoting local employment, asset creation, and participatory planning.
Contemporary dilution
- Renaming and central branding raise concerns about political centralisation and weakening of community ownership over a grassroots entitlement.
Data and facts: decentralisation gap
- India has over 2.6 lakh Panchayats, but effective devolution varies sharply across States.
- Studies show only a fraction of 29 subjects are fully transferred in most States, often without corresponding staff or finances.
- India’s local government expenditure remains below 3% of GDP, compared to 8–15% in many OECD countries, indicating weak fiscal decentralisation.
Political economy constraints
Elite capture and capacity gaps
- Local elites often dominate Panchayats, limiting inclusiveness and accountability, especially for women, Dalits, and marginal farmers.
- Capacity deficits in planning, accounting, and technical expertise weaken Panchayat effectiveness.
Centralised political incentives
- Political leadership increasingly favours central visibility and control, reducing incentives to empower autonomous local institutions.
Why Gram Swaraj remains out of reach ?
- Decentralisation has been procedural rather than substantive, focusing on elections rather than real transfer of power.
- Economic centralisation, administrative control, and scheme-driven governance conflict with Gandhi’s vision of moral, participatory village republics.
Way forward: making Gram Swaraj meaningful
Institutional reforms
- Full devolution of 3Fs, with clear activity mapping and accountability frameworks.
- Strengthening Gram Sabhas through mandatory quorum, regular meetings, and enforceable decisions.
Fiscal empowerment
- Enhancing Panchayat own-source revenue through property tax, user charges, and predictable fiscal transfers.
- Increasing untied grants to allow local prioritisation of development needs.
Democratic deepening
- Capacity building of elected representatives, especially women and marginalised groups.
- Leveraging digital tools for transparency without replacing face-to-face deliberation.
