Tamil Nadu Ranks 3rd in Panchayat Devolution Index 2025, Tops in Functional Devolution

National Index on Local Governance Released

Tamil Nadu Ranks 3rd in Panchayat Devolution Index 2025, Tops in Functional Devolution: The Ministry of Panchayati Raj unveiled the 2025 edition of the Panchayat Devolution Index on February 13 in New Delhi, presenting a comparative assessment of how states and Union Territories are empowering their Panchayati Raj Institutions (PRIs). This index, compiled by the Indian Institute of Public Administration (IIPA), evaluates the practical transfer of governance, finance, and responsibility from state governments to village-level bodies.

Tamil Nadu’s Dominance in Functional Devolution

Among all Indian states, Tamil Nadu secured the top spot in Functional Devolution and placed third overall in the national rankings. This achievement reflects the state’s firm commitment to local democracy, especially through effective implementation of the 73rd Constitutional Amendment, which aims to decentralise power and encourage self-rule at the grassroots level.

Six Dimensions of Grassroots Empowerment

The Index examines six essential areas: Legal Provisions, Powers Transferred, Budget Allocation, Staffing Support, Capacity Building, and Transparency Mechanisms. Tamil Nadu scored particularly high in the “Functions” category, where it stood out for giving real administrative and developmental powers to Panchayats.

Ground-Level Accountability and Active Participation

The report highlighted that Tamil Nadu’s local bodies are actively engaged in planning and implementing a wide range of rural development programs. Village-level staff work in close coordination with elected Panchayat members, ensuring that decisions are both transparent and participatory. This collaborative model strengthens democratic accountability.

Structured Training for Local Representatives

In terms of training and capacity development, Tamil Nadu emerged as the second-best performer. The state has invested in identifying learning needs of Panchayat representatives and created formal institutions for training. These efforts have built professional leadership among local governance actors and improved administrative efficiency at the rural level.

Strong Fiscal Support and Staffing

Tamil Nadu also secured the third rank in financial support, signalling consistent and adequate funding for rural development through PRIs. In terms of staffing, the state stood second, thanks to well-deployed human resources and effective coordination between departments and local governments.

A Leading Model for Decentralised Planning

Tamil Nadu’s overall performance reflects a well-established system where Panchayats are not only symbolic bodies but functional engines of local development. By building a framework that empowers village institutions, the state has become a national model for participatory governance and localised decision-making.

Static GK Snapshot: Panchayat Devolution in India