July 12 – GS2/Governance: 2026 | UPSC Daily Answer Writing Practice PDF Download

The strength sustenance of local institutions in India has shifted from their formative phase of ‘Functions, Functionaries and Funs’ to the contemporary stage of ‘Functionality’. Highlight the critical challenges faced by local institutions in terms of their functionality in recent times. (UPSC GS2 Mains)

Panchayati Raj Institutions (PRIs) and Urban Local Bodies (ULBs) as envisaged by 73rd and 74th Constitutional Amendment Acts respectively have evolved recently in Indian democratic horizon and have started to yield better results, leaving behind its formative state. Now democratic credentials as shown by these local bodies and ground level development envisaged by them has started to quantify in India’s development process. However, there are some of the challenges faced by these local institutions in terms of their functionality in recent times. 

Challenges faced by these local institutions in terms of their functionality 

• Apart from some of the states like Kerala, Karnataka, Madhya Pradesh etc. Most states have conformed to the 73rd and 74th Constitutional Amendment Acts only on paper and are yet to devolve powers and autonomy to their local bodies. 
• Financial constraints of these local bodies are yet to be fully realized as these bodies rely on central grants and limited revenue sources in their periphery. 
• Further, there are limitations in terms of exercising power as there are various subjects where power of state and PRIs overlap. These subjects are related to management in area of education, health, sanitation and water. 
• Intervention of state’s executive in functioning of these institutions further belittles their autonomy and powers. 
• There is lack of clear demarcation of powers in administrative setup and inconsistency across vertical and horizontal cooperation. 
• PRIs and ULBs have been inconsistent in delivery of services due to lack of human resource and physical infrastructure. 
• In some of the states, log pending elections and deliberate scrapping of PRIs by state government has shown the loopholes which need to be corrected. Conclusion: Although, Indian constitution clearly mandates for division of subjects among different level of governance, there are some overlapping powers assigned at different levels. 
• These powers are exploited by legislatures and executive at higher rung of the government leading to limited exercise of power by lower rung. Further, financial and infrastructure constraints of local institutions have limited their role in democratic setup. 
• Decentralization of power was the motive of “Gandhian Philosophy’ which can only be realized by strengthening local institutions. Then only India will be able to deliver ‘Citizen Centric Services’ to the tizens on the last rung of democracy.

Topics covered - Panchayati Raj Institutions and Urban Local Bodies