Economic Survey 2025-26 calls for panchayat custodianship of commons

The Economic Survey 2025-26 has flagged a policy blind spot by recognising that water bodies, grazing lands and other community assets covering nearly 15 per cent of India’s geographic area are not idle spaces but living resources that sustain village economies. LiveLaw reports that the document argues the central challenge facing these commons is not the absence of ownership but the absence of custodianship by panchayats.

The survey notes that policy debates have long focused on which line department controls commons, treating them as sectoral fragments rather than integrated socio-ecological systems. LiveLaw states that despite being vested with panchayats under the 73rd Constitutional Amendment Act and State Panchayati Raj Acts, these lands are often poorly managed because custodianship, sustainable use, preventing encroachments and ensuring equitable access, has not become common practice.

The Supreme Court has clarified that vesting does not give gram panchayats unfettered title, and the government can impose restrictions. The public trust doctrine, which holds natural resources in trust for the people, also supports panchayats as trustees by virtue of constitutional decentralisation, LiveLaw adds.