Panchayat Advancement Index: Measuring Grassroots Development and Governance

Why is it in the news?

The Ministry of Panchayati Raj recently organised a two-day national write-shop in New Delhi to officially roll out the Panchayat Advancement Index (PAI) Version 2.0 for the financial year 2023-24. This new version aims to better assess and support the holistic development of Panchayats across India, advancing the localisation of Sustainable Development Goals (SDGs).

Background

What is the Panchayat Advancement Index (PAI)?

• The PAI is a comprehensive multi-domain and multi-sectoral index designed to assess the overall development, performance, and progress of Panchayats (village-level local self-government institutions).
  Purpose:
• To track and measure how Panchayats contribute to achieving the Sustainable Development Goals (SDGs) locally by evaluating socio-economic indicators that reflect the well-being and development of their communities.
• Previous Version:
  • PAI 1.0, launched earlier, served as the baseline index covering 2.16 lakh Gram Panchayats across 29 states and union territories.

Features of PAI Version 2.0

• Improved Framework:
  PAI 2.0 is a significant upgrade from Version 1.0, with sharper and more practical indicators that enhance usability, reliability, and efficiency.
• Indicators and Data Points:
  The index uses 435 unique local indicators (331 mandatory and 104 optional) comprising 566 unique data points across 9 themes aligned with the National Indicator Framework (NIF) of the Ministry of Statistics and Programme Implementation (MoSPI).
• Themes:
  These themes relate to the localisation of SDGs and cover diverse socio-economic dimensions impacting Panchayats.
• Classification of Panchayats:

Based on their scores, Gram Panchayats are categorised as:

• Achiever: 90+
• Front Runner: 75 to below 90
  Performer: 60 to below 75
• Aspirant: 40 to below 60
• Beginners: below 40
• Evidence-based Planning:
  By identifying development gaps and strengths through these scores, Panchayats can adopt evidence-based planning to prioritise interventions.

Challenges

• Data Collection & Quality:
  Collecting reliable and timely data from grassroots Panchayats can be difficult due to varying capacities and infrastructure.
• Capacity Building:
  Panchayat-level officials may need training to understand and use the index effectively for planning and implementation.
• Harmonising Indicators:
  Ensuring that the selected indicators comprehensively cover local needs while remaining aligned with national frameworks requires continuous refinement.
  Technology and Accessibility:
  Ensuring that the index platform is accessible and user-friendly across diverse geographies with differing levels of digital penetration.

Way Forward

• Capacity Strengthening: The Ministry will likely focus on training Panchayat representatives to interpret PAI scores and integrate findings into local development plans.
• Continuous Refinement:
  Regular updates to the index to include emerging local priorities and improve indicator relevance.
• Integration with SDG Monitoring:
  Using PAI as a critical tool for real-time monitoring and feedback to track India’s progress towards the SDG 2030 agenda at the grassroots level.
• Incentivising Panchayats:
  Encouraging higher performance through recognition, funding, and technical support for top-performing Panchayats.
  Collaborative Approach:
  Involving state governments, local bodies, and civil society for data validation and localised problem-solving.

PRELIMS PRACTICE QUESTION

Question: Which of the following statements about the Panchayat Advancement Index (PAI) Version 2.0 is CORRECT?

A) PAI Version 2.0 uses fewer indicators than Version 1.0 to simplify data collection.
B) The index categorises Gram Panchayats into five performance groups based on their scores.
C) PAI Version 2.0 focuses solely on the financial performance of Panchayats.
D) The index is not aligned with the Sustainable Development Goals (SDGs).

Answer: B) The index categorises Gram Panchayats into five performance groups based on their scores.

Also Read : Grassroots Governance: The Micropicture at the Panchayat Level