Sources say 750 proposals unlikely to be considered; only 43 partially cut Panchayats to be reorganized
Shimla – The Himachal Pradesh government is likely to shelve the formation of new Gram Panchayats this year, with sources indicating that the Panchayati Raj Department has taken a step back from the earlier move to expand panchayat boundaries. Around 750 proposals received for new panchayats may not be considered, according to reliable sources in the department.
As per information, the department has communicated to the Panchayati Raj Minister that, given the limited time left before the Panchayat elections and the state’s current financial situation, there is neither the feasibility nor the necessity to form new administrative units. The State Election Commission had directed that any reorganization should be completed by June 30, as it begins preparations for elections scheduled at the end of this year. Mapping of voter lists is expected to start in July.
Out of the 3,615 existing panchayats in Himachal Pradesh, the number has already decreased to 3,577 due to the complete merger of 42 panchayats into newly created Municipal Corporations, Municipal Councils, and Nagar Panchayats. Meanwhile, 43 panchayats that were partially affected by urban expansion have been notified and are being reconstituted as separate units. Four additional Panchayats have been formed in the Yol Cantonment area.
The reorganization has affected multiple districts, including Kangra, Solan, Shimla, Una, Bilaspur, and Hamirpur. However, beyond these specific cases, no new Panchayats are expected to be created.
Officials familiar with the matter say the Resource Mobilization Committee, constituted to streamline finances and reduce expenditure, has also advised against creating new institutions this year. The state government is already grappling with a rising fiscal deficit, compounded by a significant cut in the revenue deficit grant from the Centre.
“There is internal assessment suggesting that, with improved road and digital connectivity, there is now more need to consolidate panchayats than to expand them. This could help manage infrastructure and staffing challenges more efficiently,” a source said.
While no official announcement has been made yet, the direction of internal communication and planning indicates a likely freeze on further expansion. If confirmed, this would mark a significant shift from earlier expectations of widespread panchayat restructuring, and it signals the government’s emphasis on economic management over administrative expansion in the run-up to elections.
