Approach

Introduction: Mention about 73rd Constitutional Amendment Act which is known as the landmark for grassroots democracy.

Body: Mention the significance of PRIs and the issues faced by local self-governments.

Conclusion: Suggest a way forward by giving recommendations of the ARC report.

Answer:

The 73rd Constitutional Amendment Act, of 1992, established the third tier of governance and granted constitutional status to Panchayati Raj Institutions (PRIs). Since then it has become a constitutional mandate on the part of the states to make sure that local self-governments work properly. There was a considerable improvement in the working style, activities performed, public participation etc. It aims to fulfil Gandhi's vision of Gram Swaraj.

Significance of PRIs:

1. Democratic Decentralization: The 73rd Amendment provisioned for 29 subject matters in the 11th schedule, over which PRIs would have complete power to plan, execute, and monitor. Further, Gram Panchayats provide opportunities for the rural population to participate in the governance process at the local level.
2. Inclusive Development: As per the available data, in 2014, there were 29,50,128 elected Panchayati Raj representatives (the recent figures would be around three million), of which 19% were from Scheduled Caste, 12% from Scheduled Tribe communities, and 46% were women. The PRI system has therefore definitely deepened political representation in the country.
3. Rural development: Gram Sabha enables effective public service delivery as per the needs of the local population through Local Self Government allowing for a bottom-up approach. Example: Ibrahimpur, Telangana with intensive community involvement of youth, women SHGs, and active Gram Sabhas along with an extensive awareness generation, Ibrahimpur transformed into a model village for sustainable development.
4. Grassroots participation: With the involvement of PRIs in implementing social sector schemes, Gram Panchayats and Gram Sabhas can now decide the types of work to be undertaken in the village and the use of funds earmarked under the scheme. Further, the Gram Sabhas have been vested with the powers for direct supervision of the rural programmes and projects, and to ensure accountability of Gram Panchayats. 
5. Political awareness: The e-Panchayat is one of the Mission Mode Projects under the National e-Governance Plan (NeGP), to completely transform the functioning of PRIs – making them more transparent, accountable, and effective as organs of decentralized self-governing institutions. Further, the creation of Gram Panchayat Development Plans enables community participation in planning and decision-making processes.
6. Discarded archaic social institutes: It has lessened the importance of Caste Panchayats and political power is now less connected with the ownership of land.

Issues faced by PRIs:

1. Lack of effective Devolution: A devolution report published by the Ministry of Panchayati Raj in 2015-16, mentioned that devolution has two main aspects: the operational core that includes funds, function, and functionaries, and the support system that includes capacity building of PRIs. In terms of devolving function, functionary and finance, Kerala, Tamil Nadu, Maharashtra, and Karnataka top the list, whereas Punjab, Jammu and Kashmir, and Jharkhand are at the bottom.
2. Weak capacity and lack of trained personnel: Many PRIs lack the capacity and trained personnel to carry out their functions effectively. This can lead to poor planning and implementation of development projects.
3. Limited participation of women and disadvantaged groups: PRIs often have low levels of participation from women and disadvantaged groups, which can limit their ability to represent the needs and interests of the entire community. Also, the vulnerable sections of the village community hesitate to voice opinions due to inhibitions on account of their financial and social standing.
4. Creation of Parallel bodies: The state and central government have also started creating separate structures or units for implementing specific projects on education, health, and so on; this limits the role and powers of the PRIs. For example: State water boards.
5. Infrastructural Challenges: Some of the Gram Panchayats (GPs) do not have their own building and they share space with schools, Anganwadi centres etc. While others which have their building lack basic facilities like toilets, drinking water, and electricity connection. The internet connections to the GPs are not functional in many cases. So, for any data entry purposes, panchayat officials have to visit Block Development offices which delays the work.

Way Forward: The Second ARC made several recommendations for improving Panchayati Raj Institutions (PRIs) in India. Some of these recommendations include

1. Strengthening the financial position of PRIs: There should be a clear-cut demarcation of functions of each tier of the government. The State Finance Commissions should evolve objective and transparent norms for devolution and distribution of funds.
2. Activity Mapping: State governments should undertake the process of activity mapping of functions, finances and functionaries as recommended by the Aiyar Committee.
3. Improving the capacity and training of PRI functionaries: Establishment of a National Institute for Panchayat Leadership and Training to provide capacity-building and training to PRI functionaries. Capacity-building efforts must attend to both the organization-building requirements as also the professional and skills upgradation of individuals associated with these bodies.
4. Ensuring Accountability: In this pursuit, the initiative of the Meghalaya government to make social auditing mandatory is worth emulating by other states.

Enhancing Citizen’s Participation: To augment people's participation in Gram Sabhas the minimum quorum for the meeting should be 10% of the members out of which at least 30% should be females. The services of elected representatives, SHGs, ASHA workers, Rozgar Sahayaks, etc., should be utilized to create awareness about participation.