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INDIA
SUMMARY
India is a federal republic with three spheres of government: central (union), state and
local. The 73rd and 74th constitutional amendments give recognition and protection
to local government and in addition each state has its own local government
legislation. The Ministries for Housing and Urban Affairs, Panchayati Raj and Rural
Development all have oversight responsibility for local government at the national
level and each state has its own enabling legislation. As of summer 2017, there are a
total of 267,428 local government bodies of which 262,771 are rural and 4,657 urban.
Of the rural local governments, 632 are zila parishad at the district level, 6,672 are
panchayat samaiti at the block level, and 255,466 are gram panchayat at the village
level. Urban local bodies include municipal corporations for cities, municipalities
for larger towns and town panchayats for smaller towns. Both urban and local
government are governed by state-level legislation, which determines local tax-raising
powers. Following the 2013 Local election 37.1% of councillors were women and in
2015/16 local; government expenditure was 16.3% of total government expenditure.
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TOTAL (29+7) 36 4,657 632 6,672 255,466 267,428 1,210,193,422 1,268,961,000 68.8
Source: Consolidated list of panchayat and urban local bodies, August 2017, population census 2011 , and population projection 2011-201617.3b
17.3a
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THE LOCAL GOVERNMENT SYSTEM IN india COUNTRY PROFILE 2017–18
in reforms into the design to ensure smaller towns. In line with their respective and tribes must also adhere to the
sustainability of the initiatives beyond the state-level municipal acts, these 4,657 one-third allocation to women. Election
duration of the projects. Two missions urban local bodies have a range of standing processes are defined in state municipal
are the Atal Mission for Rejuvenation and committees which include finance, law. These structures are consultative
Urban Transformation (AMRUT) which is education, water supply and sanitation. and also play a role in monitoring the
linked to promotion of reforms in urban The standing committees are deliberative delivery of services.
planning, execution and governance bodies only and decision-making powers
for better service delivery, and the remain with the full council. 4.3 Elected representatives
Pradhan Mantri Awas Yojana (Urban) is
Whilst specifics vary from state to
an initiative to ensure affordable housing Councils have the discretion to establish state, broadly, in the urban sector, all
for all. a wide range of other committees. municipalities with a population over
Powers of the mayors and executive 300,000 are required to establish ward
3. STRUCTURE OF LOCAL GOVERNMENT committees are determined by the committees chaired by the local ward
3.1 Local government within the state respective state municipal acts. councillor. Municipal corporations, as
In 1989 the national government took Each municipal body is assisted by a stipulated in the state municipal acts,
steps to enhance the role of rural local commissioner or chief executive officer, work within a committee system in
governments through direct funding. who coordinates the activities of all which councillors report to council with
The aim was to create units responsible municipal employees. recommendations. Mayors are elected
for economic development at the local directly or indirectly, depending on the
level, and to create jobs directly. Local 3.3.2 Panchayati system in rural areas: state. Councillors are elected for a five-year
government is divided between rural The 73th Constitutional Amendment term of office; mayors for either one or five
authorities (panchayats) and urban Act provides for three types of rural years. The position of mayor/chairperson
authorities (municipalities), and as of council – known as Panchayati Raj is also assigned through reservation to
summer 2017 there are a total of 267,428 Institutions (PRIs). There are three types: scheduled tribes and castes, women and
local government bodies across the 632 are zila parishad at the district level, minorities on a rotating basis.
country (see table 17.1a). 6,672 are panchayat samaiti at the block
level, and 255,466 are gram panchayat 4.4 Women’s representation
3.2 Ministerial oversight at the village level. In 23 states there are In 2013 across all local government
three tiers in the panchayati system, in women made up 37.1% of all councillors.
Whilst local development is a state
Goa there are two tiers, and in Jammu By law a minimum of one-third of seats
subject,the central government has
and Kashmir, Manipur, Meghalaya, across all types of local government bodies
the important role to guide, motivate
Mizoram and Nagaland there is a single must be reserved for women, and in many
support, engage and handhold the
tier. States with populations of less than states this has now been raised to 50%. Six
states to promote local governments and
two million are not required to adopt months prior to local elections, one-third/
development. The Ministry of Housing and
the three-tiered system. The tiers are not half of wards are earmarked for women
Urban Affairs17.3b (MoHUA) and the Ministry
strictly hierarchically organised; rather representatives, on a rotation basis.
of Panchayati Raj17.3c (MoPR) responsible
there is a division of duties between
for urban and rural local government
them. There is a limited coordination
respectively, are guided by constitutional 5. SYSTEMS FOR
role for higher levels of the panchayati
provisions and are responsible for COMMUNITY INVOLVEMENT
authorities (see Annex 17a). State law
developing nationwide policy for each 5.1 Legal requirement
establishes mandatory committees;
sector. In each state there are ministers
these consequently may vary from state The 73rd and 74th amendments to
responsible for both urban and rural
to state, however, generally all have the constitution have led to wider
local government who must oversee the
executive committees. The zila parishads participation and citizen awareness at
administration of the relevant state-level
are required to have general, finance and the local level. Citizens’ charters are also
legislation. In extraordinary circumstances,
audit, planning, social justice, education, used to streamline participation.
the minister or state government may
health, agriculture and industrial
dissolve local government bodies,
committees. The gram panchayats have 5.2 Implementation
and govern them directly for up to six
production, social justice and amenities Community structures are in existence
months. The ministries are involved in
committees. Most states provide the at grassroots level. Community structures
the preparation of model acts, laws, by-
panchayats with little discretion to under local employment schemes,
laws, manuals, guidelines, checklists and
establish other committees. were created as part of the National
capacity-building programmes for a range
of functions. Rural Livelihoods Mission at grass root
4. ELECTIONS level in the form of women’s self-help
4.1 Recent local elections groups. Resident welfare associations
3.3 Council types
These vary from state to state.17.4a are also playing an inportant role in the
The local government system consists of
managment of basic services in the local
both urban and rural councils.
area, especially within urban bodies.
4.2 Voting system
3.3.1 Urban councils: The 74th All councillors are directly elected by the
5.3 ICT use in citizen engagement
Constitutional Amendment Act provides first-past-the-post system. In accordance
with the 74th Constitutional Amendment No information available.
for three types of municipalities depending
on size and area, namely: nagar panchayat Act, one-third of all seats are reserved for
for an area in transition from rural to urban; women, and this is being extended to 50% 6. ORGANISED LOCAL GOVERNMENT
municipal council for smaller urban areas; in some states. There are further reserved 6.1 National local government associations
and municipal corporation for larger urban places for scheduled castes and scheduled There is currently no active national
areas. Urban local bodies include municipal tribes, determined by their proportional local government associations, though
corporations for cities, municipalities for representation within the local population. previously the All-India Council of
larger towns and town panchayats for The places reserved for scheduled castes Mayors, represented the municipal
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Table 17.1b Key facts and legislation by state and union territory
State/ Union Territory Key legislation State Key legislation
Andhra Pradesh Panchayat Raj Act 1994 Municipal Corporation Act 2003
Arunachal Pradesh Central Laws Act 1993 Local Government Act 2013
Panaji City Corporation Act 2002 Urban Local Bodies Act 1998
Himachal Pradesh Panchayati Act 1994 Uttar Pradesh Panchayati Act 1947
Madhya Pradesh Panchayati Act 1993 Andaman & Nicobar Islands Panchayats Regulation 1994
Maharashtra Panchayati Act 1993 Dadra & Nagar Haveli Panchayati Regulation Act 2012
Manipur Panchayati Act 1994 Dadra& Nagar Haveli Panchayat Rules 2014
Meghalaya Municipal Act 1973 Town and Country Planning Act 1984
Mizoram Municipalities Act 2007 Daman & Diu Panchayats Regulation 2012
Urban and Regional Development Act Delhi Municipal Council Act 1994
1990
Nagaland Village and Area Councils Act 1978 Lakshadweep Panchayats Regulation 1994
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THE LOCAL GOVERNMENT SYSTEM IN india COUNTRY PROFILE 2017–18
Table 17.1c Women councillors and mayors following the last two election periods 9.3 Local authority staff
Election 2010–14 2015–19 Local government staff are not recruited
by a central body. In some states there
Councillors # % # % is a commission for recruitment, in
others staff are recruited directly by the
Female councillors na 37.1 na na local authorities. The body responsible
for recruitment is also responsible for
Male councillors na 62.9 na na
disciplinary and dismissal matters.
Total councillors na 100.0 na 100.0 A number of officers are required by law
in the different types of local councils,
Chairpersons/ Mayor including a municipal commissioner
in the municipal corporations and an
Female Mayors na na na na
executive officer, health officer and
Male Mayors na na na na sanitary inspector in the municipalities.
The head of the paid service is normally
Total Mayors na 100.0 na 100.0 referred to as the chief executive officer.
The staffing structure of first-tier councils
Source: MoHUA communication with CLGF differs from state to state, but generally
corporations, and Nagar Palik Pramukh municipal bonds and has set up a the municipal commissioner is the head
Sangthen, represented the other urban national fund, the Pooled Finance of the administrative service at municipal
municipalities. Development Fund. This fund provides corporations, assisted by deputy municipal
credit enhancement grants, through commissioners and other officers.
6.2 Other associations of local government pooled financing bonds issued on behalf The health officer is responsible for area
of identified urban local governments, health services. The staffing structures of
There are some state-level organisations
which enable them to access market second-tier councils (municipalities) also
of elected representatives and elected
borrowing for investment in urban differ from state to state, but generally
women’s representatives; and some
infrastructure projects. Nevertheless, the executive officer is the head of the
city managers’ associations. There are
estimates from the XIII Central Finance administrative service, assisted by deputy
however other institutions active in local
Commission (‘XIII CFC’) report indicate executive officers and other officers.
government such as the Association
that that less than half of municipal The health officer is responsible for
of Municipalities and Development
expenditure is financed through own health services in their municipal area.
Authorities (AMDA) and the Institute of
sources. Councils are empowered to levy Maharashtra and West Bengal have
Town Planners of India (ITPI) which has
house and land taxes and to borrow a state-level cadres. There is an increasing
local chapters.
limited amount of money. Other sources focus on developing a municipal cadre
of revenue include special projects and to enable the systematic deployment
7. INTERGOVERNMENTAL RELATIONS fundraising through events. of staff at different levels of seniority. For
The central government ministries example, the government of Madhya
are in constant dialogue with relevant Pradesh has developed five different
9.2 Transfers
state-level ministries and with local staff grades, within which context it
The government’s XIV Central Finance
government representatives. Local can appoint the requisite numbers
Commission (‘XIV CFC’) allocated a sum
government representatives also seek of staff to carry out interdisciplinary
of IN₹2.87 lakh crore (2.87 trillion) to
meetings with officials and ministers in tasks related to urban management. A
be given as grants to gram panchayat
the relevant ministries on an ad-hoc basis. similar approach is under consideration
and municipalities. This is a huge
in several other states. Following the
increase of 228% over the previous
8. MONITORING SYSTEMS governance principles of reduction in
five-year period, and equates to an
fiscal deficit,the city governments of india
Local governments are subject to audit, average assistance of over IN₹80 lakh
are also resorting to PPPs (Public Private
which is carried out by their state (8 million) per gram panchayat and over
Partnerships) and outsourcing leading
government. Monitoring may include IN₹21 crore (210 milion) per urban local
to substantial reduction in their revenue
auditing processes; ministerial oversight body. The XIV CFC has recommended
expenditure and savings along with
(eg of budgets); scrutiny by independent grants in two parts – a basic grant and a
de-facto resource mobilisation. The cities
regulatory bodies; council committees, performance grant for duly constituted
of Ahmedabad,Hyderabad,Bengaluru
including members of opposition parties gram panchayats and municipalities.
and Pune have revenue surplus running
within them; and parliamentary review In the case of gram panchayats, 90%
into millions of rupees. For example
bodies. Third-party audit/assessment has of the grant will be the basic grant and
Ahmedabad Municipal Corporation has
been introduced on urban local projects. 10% will be the performance grant. In
two Special Purpose Vehicles (SPVs) for
Social audit is also being applied by the case of municipalities, the division
Sabarmati Riverfront Development and
several local governments to promote between basic and performance grant
Bus Rapid Transport System (BRTS), saving
community awareness and transparency. will be 80% to 20%. The government of
liability on staff.
India has constituted XV National finance
9. FINANCE, STAFFING AND RESOURCES Commission in 2017 to suggest sharing
10. DISTRIBUTION OF SERVICE
9.1 Locally raised revenue of central taxes and fees for the period
DELIVERY RESPONSIBILITY
Most urban infrastructure projects 2020-25. Under Article 243 of the 74th
Constitutional Amendment Act, state 10.1 Overview of local government
undertaken by municipal local service delivery responsibility
governments depend predominantly governments must consult their state
finance commission every five years to Service delivery varies from state to state,
on funds from state governments but Annex 17a gives an overview. Local
and other agencies. However, in order review the financial position of their
panchayats and urban local governments government responsibilities typically
to raise resources from the market/ include a range of core services and
financial institutions for investment in and to make recommendations for the
subsequent five-year period. infrastructure provision, including: water,
infrastructure, the central government sanitation, solid waste management,
has allowed the issue of tax-free
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Table 17.2b Local government expenditure as a percentage of total government expenditure 2012–2017
2017 I actual
N₹ crore
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THE LOCAL GOVERNMENT SYSTEM IN india COUNTRY PROFILE 2017–18
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