Report of the Commission on Centre-State Relations

9 needs. Articles 243G and 243W should be amended to mandate that devolution of
functions as listed out in the Eleventh and Twelfth Schedules, together with the powers
and authority to implement them should be done by the year 2015.
{para 8.4.03}
SUMMARY OF RECOMMENDATIONS
9.1.04 Model Law
9.1.01 Structure of Panchayats To guide the States in time bound devolution together with transfer of
activities with requisite funds and functionaries, a model law needs to prepared by the
The slow pace of empowerment is owing to the complex nature of the Centre and circulated for adoption by the States. The model law should also address the
system. Too many activities need to proceed simultaneously – transfer of funds, functions issue of inconsistencies of existing laws, rules and regulations with Parts IX and IXA.
and functionaries – and separately to three tiers. This complex matrix needs to be simplified.
There should be a two tier architecture of Local Government. Article 243B needs to be {para 8.5.01; 8.5.05; 8.5.06}
amended as follows : 9.1.05 Monitoring the devolution process
“243B – Constitution of Panchayats – A Commission be constituted in the year 2015 and thereafter regularly after every
five years to report on the ‘Status of Local Government Devolution of Powers’. For this
(1) There shall be constituted in every State, Panchayats at the village and dis-
requisite provision be made in Parts IX and IXA on the same lines as Articles 339 and
trict levels in accordance with the provisions of this Part.
340.
(2) Notwithstanding anything in clause (1), States may constitute Panchayats at
{para 8.6.01}
the intermediate level, if they so desire in the interest of good governance.
9.1.06 Streamlining institutional arrangements between parallel bodies
{para 8.2.17} and local governments
9.1.02 Rotation of seats (i) All parallel bodies would need to be harmonized with the Local Govenrment
set up. This may result in many parallel bodies being merged with Local Gov-
The concept of rotation of reserved seats for Scheduled Castes, Scheduled
ernment institutions, whereas others could continue for functional efficiency
Tribes and women to different constituencies as well as to offices of Chairpersons of
but with clear lines of accountability.
Panchayats is commendable. However the period should be long enough for the incumbent
to get familiar with such positions. The rotation should hence be after two terms of the {para 8.7.04}
Panchayat. Relevant clauses of Article 243D would need to be amended for the purpose. (ii) Each Ministry should come out with clear, unequivocal and detailed direc-
tives regarding the merger of parallel structures that they have mandated with
{para 8.3.01}
the appropriate Local Government level.
9.1.03 Time bound devolution of functions {para 8.7.05}
States have continued to drag their feet on the devolution of powers to (iii) The professional component of parallel bodies may be continued as cells or
Panchayats and Urban local bodies. There should be mandatory devolution of functions units within the appropriate local governments.
and it must be done by the year 2015. Priority should be given to items pertaining to basic {para 8.7.06}

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(iv) If for any reason it becomes inescapable and a parallel institution needs to be 9.1.10 Mega Cities
created it should be done in consultation with the Local Government and
made accountable to it. A representative local body for mega cities, which may have cities, towns
and rural areas within its geographical confines is not recommended.
{para 8.7.07}
{para 8.11.07}
(v) A common set of accounting practices should be prescribed which ensure
that the accounts of the parallel structures which remain or are created because 9.1.11 Common Electoral Rolls and Delimitation
of functional efficiency are captured in the accounts of the Local Government
concerned. (i) Laws of all States should prescribe that the rolls for the Assembly elections
be adopted for elections to local bodies also.
{para 8.7.08)
{para 8.12.06}
9.1.07 Coordination at the district level
(ii) Article 82 needs to be amended to provide for setting up of State Delimita-
(i) This aspect should be looked after by the District Planning Committee. The tion Commissions which should be required to align the Panchayats and Mu-
Collector should be a member of the DPC. nicipal Wards to the existing Assembly constituencies.
{para 8.8.21} {para 8.12.10}
(ii) The Collector is overburdened and hence there should be a separate adminis- (iii) The reservation of seats on the basis of the delimitation exercise should also
trative structure for the district Panchayat. be left to the State Delimitation Commissions.
{para 8.8.22} {para 8.12.11}
9.1.08 Dispute resolution and interaction mechanisms at the State level 9.1.12 Extension of Parts IX and IXA to Sixth Schedule Areas
A Council be established for the purpose with representation of local (i) It will be open to District Councils and Village Councils to adopt the salutary
governments and the State Government. It should function on the same lines as the Inter- recommendations which are made from time to time with the objective of
State Council at the Centre. making the Panchayat Raj institutions more efficient organs of socio-eco-
{para 8.9.01} nomic development.
{para 8.13.04}
9.1.09 Enhancing Democracy through empowerment of disadvantaged
groups and involvement of Civil Society. (ii) All schemes which seek to provide funds for capacity building, strengthening
the planning regime and such like emanating from Central sources should also
State Legislation concerning local bodies should mandatorily have be available to them.
provisions to involve civil society in specified activities and to take care of the special
{para 8.13.04}
requirements of the socially, economically and physically and mentally challenged members
of society. (iii) The Sixth Schedule Areas should also adopt the basic reforms that underlie
any good system of Local Government. These include activity mapping based
{para 8.10.06}
on subsidiarity, mechanism for engaging all stakeholders, devolution of ad-

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 Summary of Recommendations Report of the Commission on Centre-State Relations

equate untied funds and streamlining of schemes and putting in place a well (ii) All Central Funds should flow to local bodies only through the States.
laid system of accounting. {para 8.17.10}
{para 8.13.04}
9.1.17 Planning at District Level
(iv) Devolution of powers to the Councils in the North-East must be ensured on
a time bound manner by suitable amendments to the Sixth Schedule and Ar- (i) Plans should only be prepared at the district level.
ticles specific to the States of the Region on the same lines as suggested for {para 8.18.04}
the rest of the country.
(ii) One-fifth of the membership of the DPC should be of experts. Article 243ZD
{para 8.13.06}
needs to be amended for the purpose.
9.1.13 Extension of Part IX to Fifth Schedule Areas {para 8.18.05}
(i) All existing State and Central laws need to brought into alignment with the
objectives of PESA. 9.1.18 Planning for Mega Cities and Urban Agglomerations
{para 8.14.03} Metropolitan Planning Committees to be empowered to conduct all
planning activities for mega cities by exercising control over all local bodies within their
(ii) The Centre needs to fulfil its special responsibilities under various provisions
geographical confines. MPC also to be endowed with powers being exercised by other
of the Constitution towards the Fifth Schedule areas.
authorities including Government Departments. This should be done by State Legislation.
{para 8.14.04}
{para 8.19.01}
9.1.14 Discretionary powers of Governors in VIth Schedule Areas
All powers exercised by the Governor under the Sixth Schedule should be
in line with those of a Governor in other States.
{para 8.15.02}
9.1.15 Integrating Traditional Institutions with the Formal System
Traditional Institutions have their strengths and weaknesses. They need
to address their weaknesses but change is desirable not through imposition but must
come about voluntarily through introspection.
{para 8.16.03}
9.1.16 Funds to local bodies
(i) A change should be brought about in the manner of formulation of Centrally
Sponsored Schemes (CSSs) and fund transfers.
{8.17.08; Annexure 8.1}

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