Sikkim’s Panchayati Raj Institutions (PRIs) have not yet received full powers envisaged under the Constitution, according to a Comptroller and Auditor General of India (CAG) audit. The audit found that only 15 of the 29 subjects listed under the Eleventh Schedule have been devolved to panchayats. The remaining 14 subjects continue to remain outside the full control of elected local bodies.
The findings come as Sikkim prepares for its next panchayat elections, expected around 2027.The audit has raised questions over the administrative, financial and decision-making powers available to elected panchayat institutions in the state.
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Key Facts
- State: Sikkim
- Audit agency: Comptroller and Auditor General of India
- Subjects devolved: 15 out of 29
- Subjects pending: 14
- Constitutional provision: 73rd Amendment and Eleventh Schedule
- Next panchayat elections: Expected around 2027
- Main concerns: Limited powers, financial autonomy and irregular fund transfers
Only 15 of 29 Subjects Devolved
The 73rd Constitutional Amendment envisages panchayats as institutions of self-government.
It provides for the devolution of functions, powers and responsibilities connected with 29 subjects listed under the Eleventh Schedule. These include important areas such as agriculture, education, healthcare and rural development.
According to the CAG findings, Sikkim has devolved only 15 subjects to its PRIs. The remaining 14 subjects have not yet been fully transferred to elected panchayat bodies.
As a result, state government departments continue to play a major role in planning, funding and implementing programmes in several sectors.
Financial Autonomy Remains Limited
The CAG also highlighted concerns over the financial independence of Gram Panchayats.
Although panchayats have legal authority to impose local taxes, fees and other charges, the audit found that these powers were largely not being exercised.
Only isolated instances of local revenue collection were recorded, limiting the ability of panchayats to generate their own financial resources.
Irregular Fund Transfers Flagged
The audit also pointed to inconsistencies in the transfer of funds from state departments to PRIs.
An irregular flow of funds can make it difficult for panchayats to prepare budgets, plan projects and execute expenditure efficiently.
The lack of predictable funding could therefore affect the ability of elected local bodies to perform their responsibilities effectively.
Gaps in Legislative Oversight
The CAG further highlighted shortcomings in legislative oversight of earlier audit findings relating to PRIs.
According to the audit, some previous findings had not been taken up for discussion by a legislative committee.
The lack of follow-up, the audit noted, can weaken accountability and reduce the effectiveness of corrective action on issues identified during audits.
Panchayat Elections Expected Around 2027
Under Article 243E of the Constitution, panchayats have a five-year term.
Sikkim’s existing panchayat bodies are nearing the end of their term, with the next elections expected around 2027. The State Election Commission, which is constitutionally responsible for conducting the polls, is yet to announce the election schedule.
The CAG findings could become an important issue ahead of the next round of elections.
What Did the CAG Find?
The CAG found that only 15 of the 29 subjects listed under the Eleventh Schedule have been devolved to Sikkim’s Panchayati Raj Institutions.
Why Are the Remaining 14 Subjects Important?
The 29 subjects cover key areas of rural development and public services. Limited devolution means elected panchayats may not have complete authority over planning and implementation in these areas.
What Are the Financial Concerns?
Gram Panchayats have legal powers to collect certain taxes, fees and charges, but these powers have largely remained unused. Fund transfers from state departments have also lacked consistency.
When Are the Next Panchayat Elections?
The next Sikkim panchayat elections are expected around 2027, although the State Election Commission has not yet announced the official schedule.
Why Is This Important for Sikkim and Northeast India?
Sikkim is a strategically important state in Northeast India, and strong grassroots institutions are crucial for effective rural development and local governance. The CAG findings highlight the need for greater administrative authority, predictable funding and stronger financial autonomy for elected panchayat bodies.
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