The Odisha government led by the Bharatiya Janata Party (BJP) introduced the Odisha Panchayat Samiti Accounting Procedure (Amendment) Rules, 2025. These rules were approved by the state cabinet recently. The changes grant greater financial authority to officials at the grassroots level. However, opposition parties Biju Janata Dal (BJD) and Congress have criticised the amendments, arguing they undermine elected representatives of Panchayati Raj Institutions (PRIs).
Key Changes in Financial Authority
The amended rules increase the financial limits for officials to sanction bills independently. Block Development Officers (BDOs) can now approve bills up to ₹10 lakh without needing the signature of Panchayat Samiti chairpersons. Previously, BDOs could only clear bills up to ₹2 lakh independently. Similarly, Chief Development Officers-cum-Executive Officers of Zilla Parishads, senior bureaucrats, have been given the power to approve Panchayat Samiti plans and estimates, reducing the role of elected chairpersons.
Expanded Powers for Engineers
Engineers now have enhanced authority to accord technical sanction for development projects. Depending on their rank, they can clear projects ranging from ₹5 lakh to ₹4 crore, rise from earlier limits. This also applies to projects under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), allowing engineers more control in implementation.
Revised Approval Limits for Development Schemes
The amendment revises administrative approval powers for general development schemes. BDOs can approve projects up to ₹20 lakh, while Panchayat Samiti Chairpersons have been given authority up to ₹50 lakh. This restructuring aims to speed up project approvals and ensure timely implementation.
Opposition’s Criticism and Political Context
The BJD and Congress have criticised the amendments, claiming they dilute the authority of elected PRI representatives. The BJD views this as a political move by the BJP to weaken its grassroots influence. The BJD had a dominant victory in the 2022 rural polls, winning most Zilla Parishad seats. The BJP’s recent electoral success in 2024 has increased its focus on strengthening control at the local level through bureaucratic channels.
BJD’s Concerns Over PRI Legacy and Scheme Changes
The BJD argues that the BJP’s move threatens the legacy of strengthening PRIs, a cause championed by Biju Patnaik and Naveen Patnaik. The party marks the introduction of women’s reservation in PRIs and chairperson posts as a key achievement. Additionally, the BJD opposes the rebranding and reduction in funds of its flagship scheme, Ama Odisha Nabin Odisha, now renamed Bikashita Gaon Bikashita Odisha, where allocations dropped from ₹50 lakh to ₹7-8 lakh per panchayat.
Impact on Panchayati Raj Institutions
The amendments shift financial and administrative powers from elected representatives to bureaucrats and officials. This may affect the autonomy and role of PRIs in local governance. Supporters argue it will enhance efficiency and reduce delays, while critics warn it could weaken democratic decentralisation and local political accountability.
Questions for UPSC:
- Point out the significance of Panchayati Raj Institutions in India’s democratic decentralisation and how financial autonomy impacts their functioning.
- Critically analyse the role of bureaucracy in local governance and its effects on elected representatives with suitable examples from state of Indias.
- Estimate the impact of women’s reservation in Panchayati Raj Institutions on rural governance and social empowerment in India.
- What are the challenges faced in implementing rural development schemes like MGNREGA? How can administrative reforms improve their effectiveness?
