India has also been a part of global governance in the era of 21st century and indeed the adoption of good governance policy in the most decentralized structure will lead to transparency and involvement of public at large. Change is the idealization of ‘good governance’. It is a far way for almost everybody to talk about good governance which means to enjoy the pertaining rights in the easiest way. Some call the process ‘one-step service’, then some call it ‘good administration’ then many call ‘good government’.[1] These terms overall mean a situation that ensures the maximum contentment in political system. This procedure lawfully termed as ‘good governance’ propagated by the World Bank. This century has also led the concept of good governance to undertake some broad features i.e. dedicated participation, transparency, accountability, democracy with decentralized governance, empowerment of weak and marginal slots of democracy, women and child empowerment, sustainable human the environmental development, promotion and protection of human rights.

This concept has been rooted in the Article- 40 of the Constitution of India which is enshrined in part IV of the Constitution of India under the Chapter of the Directive Principles of State Policy laying down that the State will yield steps to establish village Panchayats and give them with such influences the authority as may perhaps be necessary to allow them to act as units of self-government.[2]

Article 40: Organisation of Village Panchayats: The State shall take steps to organize village panchayats and endow them with such powers and authority as may be necessary to enable them to function as units of self government

It is measured that now it is an authoritative need to protect certain essential features of Panchayati Raj Institutions to impact certainty, continuity and strength to them. The Government of India had appointed Balwanta Rai Mehta Committee to examine rural problems and to make recommendations to solve the problems. On the basis of the recommendations of the Committee, Panchayat Raj bodies were constituted for implementation of the rural programs. Subsequently, it was realized that it is the best suited form of government to achieve the goal of good governance in the Indian social norms.

 India through Vedic era has been a nation that always involved its citizens in governance and perhaps the only country in the world which can boast over a history, culture, religion and society spanning over thousands of years in the richness of good-governance. In the medieval frame of time, India was known as the Golden Bird only because of its governance and utilization of its limited but rich resources.

 In 1993, the Government of India approved a sequence of constitutional improvements, which were envisioned to authorize and democratize India’s rural illustrative bodies– the Panchayats.[3] The 73rd Amendment to the Constitution recognized a three tier of government at the sub-State, so by creating the legal conditions for Panchayati Raj.

Pertaining to the vision of decentralization, Panchayat system of governance of a small village as a self-governing administrative unit is special in India. The word “Panchayat” means governance by five persons. At the time of independence, the situation in the country was depressive. There was everywhere poverty, low crops of agriculture, poor industrial base, no infrastructure for development, illiteracy, ill health, poor communication etc. Therefore, the primary the obvious task of the Central Government was to launch upon an era of comprehensive growth with a opinion to achieve a higher growth rate. In this procedure it was felt necessary to ensure people’s participation especially in rural governance in each of the Indian states.[4]

It is found that the state has made establishment of a three-tier PRI structure, with elected bodies at village, block and district levels. The state has accepted the recognition that the Gram Sabha constitutes a deliberative body at the village level. The state holds direct elections to five-year terms for all members at all levels. One-third of all seats are reserved for women; reservations for SCs and STs proportional to their populations. Reservations for chairpersons of the Panchayats – Sarpanches – following the same guidelines have been implemented. A State Election Commission (SEC) is created to supervise, organize and oversee Panchayat elections at all levels. A State Finance Commission (SFC) has been established to review and revise the financial position of the Panchayats on five-year intervals, and to make recommendations to the State government about the distribution of Panchayat funds.

Good governance provides such an environment in which all its members feel that

they have stake in it and do not feel excluded from the mainstream of society. This requires

all groups, but particularly the most vulnerable, have opportunities to improve their existing

status. Effectiveness and efficiency is of paramount importance in the process of good governance for making the best use of resources to meet the need of the society. Moreover,

accountability is a key requirement of good governance. In sum, it may be said in brief that good governance as a paradigm includes real multiplicity or plurality of institutions which are supposed to be acting in unison to influence development at and from different levels.[5]


Panchayati raj system, as it exists today, is not an entity altogether distinct and separate from the state and union governments. It is indeed, a circle within a large circle, bounded, on all sides and in every respect, by the latter. In the view of the future challenge, which are presently invisible but even then, some indications are that some states are not willing to hand over the power to the local government institutions in the true spirit of the constitutional amendment Act thus, there is need for a constant vigil. Institutions visualized under the 73th constitutional Amendment Act, taken place smoothly, which can eventually translate the dream of grass root democracy into reality.


[2] Bakshi, P.M., The Constitution of India, 8th Edition, Universal Law Publishing Co., Delhi, 2008