Mains Advanced Batch 2021

Faculty: Jatin Gupta

Jatin.g@visionias.in
Notes on local governments

By

Jatin Gupta

History of Panchayati Raj in India

Following independence, the first draft of India‘s Constitution did not include any provision for the
Panchayats even though Gandhiji had sought to make village Panchayats the very foundation of
democracy in independent India. But it was included finally through the DPSP.

Article 40 reads: “The state shall take steps to organise village panchayats and endow them with
such power and authority as may be necessary to enable them to function as units of
selfgovernment.”

Community Development (CDP) projects were inaugurated in 1952 but could not achieve their full
potential in the absence of effective institutions for people‘s participation. It encompassed almost all
activities of rural development which were to be implemented with the help of village panchayats
along with the participation of people. In 1953, the National Extension Service was also introduced as
a prologue to CDP. But the programme did not yield much result. There were various reasons for the
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failure of CDP like bureaucracy and excessive politics, lack of people participation, lack of trained and
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qualified staff, and lack of local bodies interest in implementing the CDP especially the village
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panchayats.
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A historic breakthrough in establishing Panchayati Raj was effected through the Report of the
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Balwantrai Mehta Committee in 1957 which recommended: Public participation in community works
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should be organized through statutory representative bodies. It was of the view that without an
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agency at the village level that could represent the entire community, assume responsibility and
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provide the necessary leadership for implementing development programmes, real progress in rural
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development could not come about at all. It was during this period that the term ―Panchayati Raj
gained currency as a process of governance organically linking the will of the people from the Gram
Sabha to the Lok Sabha. Prime Minister Nehru inaugurated the 3-tier Panchayati Raj in Nagaur,
Rajasthan on 2 October, 1959.

By the early seventies, however, the Panchayats had gone from a phase of early ascendancy to one of
decline and stagnation. The Ashok Mehta Committee (formed in 1978) made far reaching
recommendations to amend the situation and recommended that Panchayati Raj be included in the
Constitution. In keeping with the spirit of the Ashok Mehta Committee recommendations, some states
– including West Bengal, Karnataka and Andhra Pradesh – revisited their respective Panchayati Raj
systems and undertook several new initiatives to endow local bodies with more powers which served
as a prime inspiration and example for subsequent reform.

In subsequent years in order to revive and give a new lease of life to the panchayats, the Government
of India appointed various committees. The most important among them are the Hanumantha Rao
Committee (1983), G.V.K. Rao Committee (1985), L.M.Singhvi Committee (1986) and the Sarkaria
Commission on Centre-State relations (1988), P.K. Thungan Committee (1989) and Harlal Singh
Kharra Committee (1990). The G.V.K. Rao Committee (1985) recommended making the “district” as
the basic unit of planning and also holding regular elections while the L.M.Singhvi
committee recommended providing more financial resources and constitutional status to the
panchayats to strengthen them.

In May 1989, Prime Minister Rajiv Gandhi introduced the Constitution (64th Amendment) Bill and 65th
CA Bill but it failed in the rajya sabha.

Finally, the 73rd and 74th CAA was introduced by the P.V Narsimha Rao government. In June 1993
Panchayats and Municipalities were endowed "with such powers and authority as may be necessary
to enable them to function as institutions of self-government". These amendments added two new
parts to the Constitution, namely, added Part IX titled “The Panchayats” (added by 73rd
Amendment) and Part IXA titled “The Municipalities” (added by 74th Amendment).

Highlights of 73rd CAA

Compulsory provisions

• Organization of Gram Sabhas

• Creation of a three-tier panchayat system
• Direct elections
• Minimum age for contesting would be 21 years
• Indirection elections to post of chairman om
• Reservation of seats for SC/STs in proportion to population
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• Reservation for the women

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• Creation of SECs
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Creation of SFCs
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• In the event of dissolution, elections compulsorily within six months

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Voluntary provisions
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Voting rights to MPs and MLAs and in these bodies

• Reservation for backwards classes
• Devolution of functions under schedule XI
• Giving the PRIs financial powers

Basic Structure of the Act

• Article 243 A provides for the Constitution of GS

• 243 B talks about creation of panchayats at three levels
• 243C talks about composition of GPs : states by law may provide for rep of members of Ls
and LA , members or RS and LCs
• 243 D talks about reservation of seats in panchayats
• 243 E talks about duration of panchayats
• 243G talks about state government endowing the panchayats with such powers and
authority as may be necessary for them to function as institutions of self-governance.
 • 243 H talks about empowering a state legislature to make laws for imposing taxes by
panchayats and provide them powers to tax. Assign to panchayats such taxed and duties
collected by the state. Provide for Grant in aids to the GPS
• 243 I w.r.t SFC: Recommendations on above matters plus measures needed to improve the
position of GPs
• 243K for SEC

Significance of Local Self Govt.

• Builds foundation from below

• Acts as a school of democracy
• Direct Democracy becomes possible at this level
• More durable and participative in character

Positive outcomes of 73rd CAA

• PRI has succeeded in creating another layer of government and political representation at the
grass-roots level
• With respect to the mandatory provisions of the Constitution for panchayati raj, we have
achieved almost 100% success.
• We have as many as 2.5 lakh institutions of local self-governance elected in this country and
to these bodies we have elected some 3.2 million representatives and
• Women have entered public life in a big way. ln 2015, 13+ lac women got elected to local
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governments and more than three times of this number contested the elections. There are
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more elected women in India alone than in the rest of the world put together. At 1.4 million,
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India has the most women in elected positions.

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Of late, schemes have been envisaged to promote digital financial transactions at the village
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level to promote the benefits of cashless and paperless processes to benefit villagers in rural
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parts of the country

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Other schemes such as financial inclusion projects in tribal areas, working women hostels, geo
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informatic block panchayats etc. are all examples of progressive Panchayati raj
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institutionalism spread across the length and breadth of the nation.

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• Today, the elections to the local-self-government institutions every five years have become
a norm although in the initial years, almost all the states irrespective of the party in power,
had defied the constitutional provision with all the power at their command
• We have also witnessed a steady progress as far as the inclusion of excluded sections of our
population in the decision-making process from village to the district level is concerned-
• The concept of 'social audit' has emerged from these innovative steps.

Two of fundamental changes have come about in Indian democratic polity

(i) The democratic base of the Indian polity has widened, and
(ii) It has brought significant changes in India’s federalism making it a multi-level federation

Issues with the 73rd CAA

• No automatic transfer of powers to the PRIs rather the states have to transfer the power
 • Grossly inadequate devolution: Many States have not taken effective steps to devolve 3Fs to
the PRIs to enable them to discharge their constitutionally stipulated function.
• No uniformity in allocation of functions across the states
• GS powers have not been defined properly anywhere.
• Independence of SEC has come into question time and again
• Issues with respect to the functioning of the SFCs
• Decentralization of corruption
• Act doesn’t lay down the role of bureaucracy: In some States, the Gram Panchayats have
been placed in a position of subordination: Gram Panchayat Sarpanches have to spend
extraordinary amount of time visiting Block Offices for funds and/or technical approval.
These interactions with the Block staff /office distort the role of a Sarpanchs as elected
representatives.
• Further, it is imperative that the PRIs have financial resources and manpower to match the
responsibilities entrusted to them. While SFCs have submitted their recommendations, not
many States have implemented these or taken steps to ensure PRI‘s fiscal viability

Problem areas in the functioning of the PRIs in India

Domination of PRIs by the bureaucracy has been the biggest hurdle.

• B’cy is supposed to provide technical support but it has been seen that they have come to
dominate these institutions. DRDAs have deprived the PRIs of their core functions such
poverty alleviation and employment generation. But some states have taken steps to merge
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the DRDAs now with the Zila Parishads.
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Several government registered societies have sprung up to the implement the schemes of
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the government and they have by-passed the PRIs in the country.
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• Central government has launched schemes that have by passed the mandate of the PRIs. For
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example the Intensive Agricultural District Program.

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• PRI service is not really a service in the real term but they are merely on deputation and thus
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owe their loyalty to the original department

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• Frequent transfers of the officials also create problems for the functioning of the PRIs
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Lack of participation

• Meetings are not held regularly

• No specific agenda to the meeting a lot of times
• People’s participation has been limited to receiving the benefits in rural programs

Lack of training

• No efforts have been made to motivate, guide and train the rural people.
• They lack direction without training

No mechanisms for inter-institutional coordination

• As a result reliable feedback is not obtained on the functioning of these PRIs

Lack of systemic planning at the PRI level

• Planning function has not been devolved to the PRIs.

Lack of adequate resources

• Their main sources of revenue include taxes, levies and fee but they are mainly dependent
on the states for the Grants-in-aid that are not made available on time and are grossly
inadequate in nature.
• Even the PRIs have shown reluctance in garnering their own resources

Corruption and misuse of money

• Provisioning of the funds directly to the PRIs has led to the tussle between different groups
to gain control over these resources to misappropriate them

Hostility from the higher level leaders

• MPs and MLAs look at the PRIs as a threat to their existence.

Traditional structures in the society

Structural variations in the implementation of the act

• Average population in PRIs varies from state to state: AP, UP, MP have less than 3000
population,In Odisha and Raj figure is between 3000-6000.Assam, Bihar : 6000-10000
• Rajs, Guj, Mah have special services for the panchayati raj. For example Rajasthan has Raj
Development services.

Problems of financing the local bodies in India

• Taxes devolved to the PRIs are inelastic in nature

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• There is also a reluctance on the part of the PRIs to impose taxes

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PRIs generate only 5% of their finances through own sources and are highly dependent on
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the state government for their functioning

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• Limited borrowing powers

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States such as Kerala, AP and Karnataka have done well when it comes to finances and thus
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the PRIs are more autonomous and function in a more effective manner.
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• States are not implementing the recommendations of the SFCs

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Issues with the SFCs

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As per the Constitutional provisions, setting up of fifth SFC became due in 2014-15 in all the
states. Only thirteen states have constituted their fifth SFC till date.

This could be due to a number of reasons namely,

(i) SFCs have taken a lot of time to submit their reports,
(ii) State governments have taken considerable time in tabling the action taken report (ATR) in the
state legislatures,
(iii) States have not constituted the SFCs in a timely manner,
(iv) and/or a combination of all of the reasons

Other issues with the SFCs

• Not a permanent body and hence no permanent office space. Every time it is constituted, it
has to look for office space, recruit technical staff and arrange for office infrastructure. This
takes a lot of time.
 • Additionally, workings of SFCs have also been delayed by non-availability of data relating to
local governments. Considerable time is spent in designing questionnaires and collecting
data on the finances of local governments. Moreover, the concerned departments also do
not provide data in a timely manner.

• SFC reports are also delayed due to delays in the appointment of chairpersons/members,
reconstitution of SFCs and due to state/local body elections which affect the working
schedule of the Commission.

• Another important reason for the delay in SFC reports is the unreasonable time assigned to
SFCs by state governments to submit the reports

• We see that the composition of divisible pool varies considerably across SFCs which make
comparison of SFC awards to local governments across different states difficult.

ARC II recommendations on the PRIs

• Replace the word may in 243(g) with the word shall

• Local legislators should not be made members of the PRIs
• Set up LCs in all states to provide representation to the members of the PRIs
• SEC be appointed through a collegium system
• SFC report and ATR to be submitted in 6 months
• Abolish the MPLADS and MLALADS scheme
• Parastatal bodies should be closed down om
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PRIs should have the right to recruit their own personnel and regulate their conditions of
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service
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• States should adopt the concept of ‘activity mapping’, wherein each state clearly delineates
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the responsibilities and roles for the different tiers of the government in respect to the
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subjects listed in the Schedule XI.

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Karnataka has created a separate bureaucratic cadre for Panchayats to get away from the practice
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of deputation of officials who often overpowered the elected representatives. Such practices need to
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be replicated in other states for strengthening the true character of local self-governance.
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Recommendations on financing specifically

Broadening and deepening of revenue base for the PRIs, keeping in view

1. Their potential for taxation

2. Fixation of realistic tax rates
3. Widening of the tax base and improved collection of the taxes

State government should release timely funds to the PRIs and should be released in two instalments.

The centre also needs to financially incentivize states to encourage effective devolution to the
panchayats in functions, finances, and functionaries.

Impact of 73rd CAA on women

It’s quite clear that a very large number of women have been politically and socially empowered
because of panchayati raj and this is seen as desirable by the political class
 • 30 lac women contest elections to the GPs thus taking democracy to the women
• Participation of the women in GSs have increased
• They have gained a sense of empowerment by asserting control over resources, officials &
most of all, by challenging men.
• They have become articulate & conscious of their power.
• Despite their low- literacy level, they have been able to tackle the political and bureaucratic
system successfully
• Concept of Panchayat patis is showing a declining trend
• They have used their elected authority to address, critical issues such as education, drinking
water facilities, family planning facilities, hygiene & health, quality of healthcare & village
development
• Research using PRIs has shown that having female political representation in local
governments makes women more likely to come forward and report crimes.

Challenges faced by the women

• Overburdened with family responsibilities.

• They feel inhibited to speak especially when they are in large male dominated assemblies.
Those who muster up enough courage and strength to speak receive very little respect or
attention.
• It has been observed that women are invited only to complete the quorum.
• Further, the officials also pay heed to the needs of upper class women in preference to the
needs of peasant women. om
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• Lack of literacy in women (talk about even the restrictive qualifications)

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Problems of rotation policy every 5 years

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• Women are threatened by increasing number of criminals in the politics

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• Women are rarely nominated in the unreserved seats

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Male family members and also leaders from the caste group/community come in the way of
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the affairs of the Panchayats.

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Issues with urban governance in India

Some context and figures

• By 2025 more than 40% population in the urban areas

• They are the engines of growth
• Contribute to 65% of the GDP

• Financial paucity- Their chief sources of income are the varied types of taxes, most of which
is levied by the union and state governments and, the taxes collected by the urban bodies are
not sufficient to cover the expenses of the services provided.
• Corruption- The administrative machinery, at the disposal of these local bodies is insufficient
and ineffective. The staff which is often underpaid indulges in corrupt practices which lead to
loss of income.
• Excessive State Control- The state governments have the power to supersede and dissolve
municipal bodies under certain circumstances. Further, state governments have powers like
They approve municipal budget (except that of corporation).
• Even the modified local tax structure needs government’s prior approval and later ratification.
o Control through accounting and audit system, etc.

• Unplanned urbanization- The municipal services have failed to cope with the increasing
needs of the population, both qualitatively and quantitatively. The situation is worsening
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because the rural influx in town and cities has increasingly converted them in ghettos.
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• Multiplicity of Agencies- Usually works are not well allocated among different agencies which
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causes overlap of authority and responsibility. This further leads to diffused accountability.
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• Dilution of Efforts- Due to multiple layers of planning, administration and resource allocation
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to tackle deprivations, the efforts are often dispersed in time and space, leading to suboptimal
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results.
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• Headed by bureaucrats- The single purpose agencies are all dominated by bureaucrats, which
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goes against the basic philosophy of local government. The people’s representatives have a
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secondary role to play.

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• Substandard Personnel-Urban government increasingly needs professional services of

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experts.
• Land titling in urban areas- A study has reported that most, over 90% by one estimate, of the
land titles in India are ‘unclear’ and land market distortions and unclear land titles cost India
around 1.3% of gross domestic product.
• Low level of People’s Participation- People’s apathy towards participating in the governance
system pushes such institutions into a state of complacency and irresponsibility

• Ecological challenges- The growth of population and industries presents an unprecedented

challenge of ecological degradation and pollution of water, air and land.
ARC II recommendations on ULBs in India
• Set up a second national commission on urbanization
• Put in place a four tier mechanism for the ULBs : Area Sabhas to
• Direct election of the mayors

Finances of the ULBs ARC II recommendations

• Abolish octroi
• Fastracking of property tax reforms
• Enhancement of civic fines eg. Spitting
• Incentivize the revenue collection of the ULBs by linking with the state govt grants
• Access capital markets through the municipal bonds

Issues with the property taxes

• Few states have not delegated and where done it is not clearly defined through the rules
• Inadequacy of database
• No frequent revision of PTs
• Several exemptions
• Lack of political will
• Corruption in the MCs

Problems of Grassroots planning bodies om

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• Delay in setting up
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• Don’t exist in states. Only on paper

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• No appointment of experts
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• State level cabinet ministers are chairperson in many states

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• No fiscal decentralisation which makes planning exercise useless in nature

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• Rural and urban linkages not achieved on this matter.

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Theme 1: 5th and 6th Schedule

Highlight the reasons behind underperformance of the Autonomous District Councils (ADCs). How
can their performance be improved? (150 words) 10

The Sixth Schedule of Indian Constitution provides an innovative tool of self-government by creation
of Autonomous District Councils for the tribal residing in the states of Assam, Meghalaya, Tripura and
Mizoram. Though the ADCs are provided with sufficient autonomy to function as an independent body
in legislative, financial, judicial and executive spheres but there are some inherent constraints which
have led to their underperformance.

Reasons for underperformance

 • Lack of financial independence: The Councils are dependent on their respective state
governments for funds. At times, there is a shortfall between the approved budget and funds
received by ADCs.
• Misuse of funds: Some ADCs misuse government funds since there is no dedicated official
inspecting and auditing the initiatives undertaken by ADCs. Not completely representative:
Generally, councils are not able to fully represent the numerous major and minor tribes within
their jurisdiction in 30 members of the council. Further, there is very less participation of
women in these councils.
• Overlapping functional responsibilities: Despite the fact that Sixth Schedule has declared
that certain matters stand fully transferred to District and Regional Councils, some matters
are not fully transferred to the Councils. Also, there is lack of coordination at different levels
as there is no provision for coordination of the activities among the District Council, the
Regional Council and the State Government.
• Lack of proper planning: Since these Councils do not have access to planning professional, as
a result development projects are undertaken without proper technical and financial
considerations.

Steps to improve performance of council

• Village level bodies should be revived and empowered to formulate plans so as to make the
Sixth Schedule even more democratic.
• Recommendations of State Finance Commission should be considered for channelizing funds
to the Councils. om
• Clear delineation of roles at state and local level to remove overlaps in functional
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responsibilities between the State and District Council.

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• Inducting professionals in the planning mechanism of the Councils to improve planning and
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project formulation policy.

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• Ensuring accountability through independent as well as social audit mechanisms in order to

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prevent embezzlement of funds.

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• Clear-cut identification powers under the Sixth Schedule that Governors may exercise at their
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discretion without having to act on the ‘aid and advice’ of the Council.
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• Periodic review of the administration of the Councils should be done by an independent

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commission working under Union Government.

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In spite of criticism, these Autonomous District Councils have provided a fair degree of autonomy for
the tribal people. The need of the hour is to introduce these reforms so that the mandate of Sixth
Schedule gets implemented in true letter and spirit.

"If district and regional councils are keys, then Governor is the master key". Critically analyse in the
context of the Sixth Schedule of the Constitution.

Constitution under 6th schedule contains the special provisions for the administration of tribal areas
in the state of Assam, Meghalaya, Tripura and Mizoram. The tribes in these states have distinct ethnic-
anthropogenic and cultural identity not found in any other tribal areas of the country. Similarly they
are backward in the terms of socio-eco development.
Considering this background constitution has provided them a special treatment. Major objective of
the government is to provide them with considerable amount of autonomy for promoting self-rule
under democratic framework.

Sixth Schedule is known as the mini-constitution. It envisages formation of the autonomous district
councils with elaborate Legislative, Administrative and Judicial powers.

(i) No law of the Centre or the State applies in any autonomous region without District
Council’s approval. The district councils are also empowered to constitute Village
councils and Village courts. Hence the district councils are very powerful but the
governor exercises power over them as the Governor may, by public notification —

(a) Create a new autonomous district,

(b) Increase or diminish the area of any autonomous district,
(c) Unite two or more autonomous districts or parts thereof so as to form one
autonomous district,
(d) Alter the name and define the boundary of any autonomous district,
(ii) Governor also decides the fate of the Autonomous councils by using its following
powers:
(iii) If there are different Scheduled Tribes in an autonomous district, the Governor may, by
public notification, divide the area or areas inhabited by them into autonomous regions.
(iv) The Governor may appoint a Commission to examine and report on any matter specified
by him relating to the administration of the autonomous districts and autonomous
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regions.
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• Executive Committee: The Sixth Schedule provides for an Executive Committee (EC)
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of the District Council to carry on its executive functions, it acts like a miniature
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parliament at district level.

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But the governor has an upper hand in this regard as the executive committee is
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appointed by the Governor on CEM’s recommendation.

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• Legislative Functions: The District Councils have powers to make laws on a wide
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ranging issues covering land, agriculture, primary education, health, establishment of

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village councils and town committees etc.

But the Governor has power to alter the laws passed by the District Councils, if they
are in violation of the sixth schedule
• Executive and Judicial Functions: The District Council is authorized to constitute
Village and District Council Courts to try cases according to customary laws where
both the parties are tribals.

Hence the district and the regional autonomous councils hold the key to expression of democratic
rights of tribal, maintenance of their autonomy and preserve their unique culture. Yet the governor
ensures that they are in tandem with the national plan of development, and follow basic principles of
the constitution. So, it can be rightly said that, if district and regional councils are keys, then Governor
is the master key with regard to schedule 6th of Indian constitution

Theme 2: Urban Governance

Absence of a powerful and politically accountable leadership in the cities is considered as one of the
primary reasons for urban woes. Do you think that direct election of mayor can help in overcoming
this issue? What other alternatives can be explored for improving the working of urban local bodies?

By 2050, about 60 percent of the Indian population will reside in urban areas. This rapid speed of
urbanization poses the challenge of improving the quality of urbanization, which needs to be tackled
by reforming urban governance.

Position of Mayor

• The Constitution provides discretion to states in manner of election – direct or indirect of

the Mayor. Thus, in most of the states, Mayors are appointed indirectly and not through
direct elections.
• The Mayor has been reduced to a figurehead while most powers reside with the Municipal
Commissioner appointed by the state government.

As a result, the municipal government lacks accountability to the public which is one of the important
reasons for the poor performance of the municipalities.

Necessity of direct elections

Direct elections of mayors will help to address these lacunae in the following ways:

• Responsiveness of directly elected mayor will be greater than that of indirectly elected.
• It will strengthen grass root democracy. om
• Direct elections combined with greater executive and financial powers to the Mayor will
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improve his performance.

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• Since mayor is directly elected he can be held accountable by people.

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• The Mayor will be more attuned with problems of people.

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It will reduce interference of the local MPs/MLAs in municipal functioning.

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However, it is also fraught with certain issues and this system has not been too encouraging in some
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states like Tamil Nadu, which are reverting to indirect elections. This is because of the following
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reasons:
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• Less Powers: Not only direct elections but devolving financial and executive powers
municipalities is also needed which states are reluctant to do.
• Political Deadlock: If the mayor is of different political party and majority of council
members are from different parties then it leads to deadlock in decision making, which is
often the case.
• Due to the party system, Mayors are still more inclined towards party than being
accountable to people.

Yet, these issues are not impossible to smoothen out and strong will on the part of state governments
and personality characteristics of mayors can make the system a success like that in Kolkata.

Alternative to direct elections

Since, these reforms are still far-fetched, some alternatives of improving the efficiency of the
municipalities can be:
 • Greater devolution of funds, functions and functionaries (3Fs) to local bodies.
• The Commissioner to be responsive to mayor. This will enhance accountability.
• Municipal officials and staff should be provided training and imparted skill sets needed
for specialised functions like waste management, sewage treatment, city planning etc.
• Greater synergy between elected members and officials who should be brought under
elected members and appointed as full time members rather than birds of passage.
• Building transparency and implementing citizen’s charter.

These measures will help to improve the efficiency of the local bodies and fulfil its purpose as
envisioned by constitution.

Theme 3: PESA

Discuss the role of PESA as an effective tool in ensuring participative democracy and development
of the tribal people. Also, examine the reasons for its poor implementation.

Panchayat (Extension to Scheduled Areas) Act was enacted under the Fifth Schedule, which extended
panchayat rule to the tribal areas. The fundamental spirit of PESA is that it does not delegate powers
but devolves them to the village-level gram sabhas, paving the way for participatory democracy.
The PESA Act gives radical governance powers to the tribal community and recognizes its traditional
community rights over local natural resources. It not only accepts the validity of “customary law, social
and religious practices, and traditional management practices of community resources”, but also
directs the state governments not to make any law which is inconsistent with these.
Gram Sabha are endowed specifically with powers such as to exercise control over money lending to
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the Scheduled Tribes, control over institutions and functionaries in all social sectors and even control
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over local plans and resources for such plans including tribal sub-plans. Such involvement in planning
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process is the part and parcel for participative democracy.

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However, hurdles remain in proper implementation of the Act. While the provision of control of Gram
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Sabha over minor forest produce in the Act is to empower the local people in having a voice in the
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decisions regarding use and control of natural resources, it has come to empower the Forest
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Department officials who ignore the gram sabha if any. Forest department officials have long viewed
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the resource rich tribal regions as source of revenue. They often collude with timber mafias for petty
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gains. In Uttarakhand there have been reports of forest depots selling bamboos to companies at highly
subsidized rates.

Land litigations are another headache of tribals who have been rendered landless by the rich or
powerful. The B.D Sharma Committee suggested issuing notification of a date, when all pending cases
in any Court of Law in which the land of a tribal is alleged to have been illegally transferred or occupied
by any person or body, shall stand transferred to the Gram Sabha in whose jurisdiction the land is
situated.

Two different ministries, the Ministry of Panchayati Raj and the Ministry of Tribal Affairs, have
overlapping influence on the implementation of PESA and they lack the necessary coordination. Only
four States have framed their Rules for implementation of PESA.

An honest implementation of the PESA Act would empower the marginalized tribals so that they can
take care of their developmental needs. Only PESA has the real potential to deal a fatal blow to the
leftwing extremists thriving on their backwardness, ignorance, and isolation.
Theme 4: State vs Local governance

A clear delineation of functions of local governments vis-à-vis State Governments will only
strengthen the principle of subsidiarity. In this context, discuss the challenges and the reforms
required for effective democratic decentralization in India.
Principle of Subsidiarity states that a central authority should only have a subsidiary function,
performing only those tasks which cannot be performed effectively at a more immediate or local level.
Therefore, it is expected to devolve the local functions to local authorities. This principle was at the
core of 73rd and 74th Constitutional Amendment Acts. However, this principle is flouted vehemently in
practice.
Challenges faced by the local governments in effective decentralization
• Devolution of Functions: While the 73rd and 74th amendments provide for devolution of
functions and corresponding powers to the local government, the State governments have
been reluctant in devolving the same (devolution being a voluntary provision). As a result,
the district administration continues to be the focal point despite having elected local
governments.
• Fund: Local government’s major source of revenue remains the grants from the state and
centre. The devolution of taxation powers to local government is voluntary. Due to
inadequate man power, lack of digitization, and awareness these bodies fail to collect tax
and generate revenue wherever they have the power to do so.
• Functionaries: Due to uncertainty in flow of funds, local Government fail to attract human
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• Lack of Awareness: lack of adequate information and exposure about their roles and
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responsibilities also bar them to function effectively. It has been found that women do not
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have closer interaction with the local bureaucracy as it is dominated by males.

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• Excessive state control: Although, Act of 1993 guarantees autonomy to local

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governments, but still the state governments maintain strict control over them.
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• Multiplicity of agencies (parastatals): These bodies are made responsible for specific
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tasks, like water management, land planning etc. These are headed by the bureaucrats
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who encroach upon the powers of local governments.

• Lukewarm implementation of the PESA Act 1996.
• Proliferation of Centrally Sponsored Schemes and schemes like MPLAD, which undermine
the authority of Panchayats.
Suggested reforms
• Principle of Subsidiarity: It must be upheld by appropriately amending the constitution
(Articles 243G & 243W). It will not only uphold the spirit of 73rd and 74th Amendments but
also enhance popular trust in local governance.
• Voice of local bodies must be strengthened: enabling each state to create legislative
council with membership coming from the local bodies.
• Devolution of powers and responsibilities: clear delineation of functions for each level of
local government.
• Devolution of funds: devolving taxation powers so that their dependence on state
government is reduced. Promoting instruments like Municipal bonds to make local bodies
self-sustainable in the long run.
 • Capacity building: Investing in human resource development and local institutional
building.
As per devolution index 2014-15 prepared by Ministry of Panchayati Raj, Kerala ranks first with
80% devolution achieved on specific parameters. However, 92% of states have not even
crossed 50% mark on this index. The Kerala model of local governance is a shining example
where functions are adequately devolved to the local bodies which are also involved in the
planning process.

Theme 5: Issues related to PRIs and local governance

Panchayati raj institutions (PRIs) are simultaneously a remarkable success and a staggering failure,
depending on the goalposts against which they are evaluated. Discuss. (150 WORDS) 10
With the constitutional mandates deriving from the 73rd amendment the Panchayati Raj Institutions
(PRIs) are key pillars of democratic governance in India. In more than two decades of their existence
the PRIs have some impressive achievements along with unrealized potential seen as their failure.
Success:
• Number of elected Representatives: with nearly 3 million elected representatives at the
village, intermediate and district level, the PRIs have enhanced representation
• Empowerment of women: A constitutional mandate of 33% reservation for women has
yielded excellent results. Many states have provided for 50 percent reservation for
women. Female PRI leaders are more likely to focus on issues pertinent to women.
• Political representation at the grassroots level for marginalized: This is the only level of
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government, where SC/ST candidates have a genuine voice in governance. Reports
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suggest that SC Sarpanchs are more likely to invest in public goods in SC hamlets. Female
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political representation in local governments makes women more likely to come forward
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and report crimes.

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Failures:
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Authority and functions: State government, meant to transfer functions listed as per 73rd
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AA has undertaken very little devolution of authority and functions to PRIs. Core functions
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like water, sanitation, maintenance of community assets, etc. continue to be in the hands
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of State governments. No activity mapping has been done by the states except Kerala.
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MPLAD and MLALAD continue to bypass the local governments. Since functions were
never devolved, state executive authorities have proliferated to carry out these functions.
The most common example is the state water boards across states.
• Finances: The power to tax, even for subjects falling within the purview of PRIs, has to be
specifically authorized by the state legislature. Though State Finance Commissions have
advocated for greater devolution of funds, there has been little action by states. Local
expenditure as a percentage of GDP is only 2% compared with the OECD (14%), China
(11%), Brazil (7%). States like Punjab, Haryana and Rajasthan abolished property taxes.
PRIs are so starved for funds that they are often unable to meet even payroll obligations
and are reluctant to take on projects that require any meaningful financial outlay, and are
often unable to solve even the most basic local governance needs.
• Functionaries: Many State Governments have not transferred the required staff to the
PRIs after the devolution of powers. Government officers are not willing to work under
the administrative control of elected PRIs and administrative personnel serving under
Panchayats are accountable to state government and not local bodies.
 • District Planning Committee: The mandate to establish a DPC to prepare a draft
development plan has been violated and distorted in most States. Parallel bodies
encroach upon the domain of Local Governments (LGs).
• Capacity Building: There haven’t been adequate capacity building exercises for members
of Panchayats belonging to weaker section. For example, women participation has been
mired by challenges such as ‘sarpanch patis’.
• Parallel schemes and agencies such as MPLAD and MLALAD continue to bypass local
governments.
Hence for governance efficacy at grassroots level, the only long-term solution is to foster genuine fiscal
federalism where PRIs have authority to levy, collect and appropriate taxes to augment their resources
and there is adequate devolution of functions making PRIs well equipped to solve their problems.

Decentralisation in India has been fairly successful at the political level, however on the fiscal and
administrative fronts progress is marred by several bottlenecks. Comment. (250 words) 15

Decentralization signifies the devolution of political, administrative and fiscal responsibilities of the
Union Government and State Governments to the sub-state level organizations i.e. locally elected
bodies in urban and rural areas. According to World Bank, India is among the best performers on
political decentralization, but ranks in the middle on fiscal decentralization, and fares poorly on the
administrative dimension.

On the political front, by putting in place the essential legal framework through 73rd and 74th CA acts,
India has democratised and empowered local administrative institutions beyond the two tiers of the
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Centre and the States in the third tier of local governance. Further, it has also created parity in political
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representation of women with about half of the 3 million elected representatives being women. These
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members represent more than 2.4 lakh gram panchayats, about 6,000 intermediate level tiers and
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more than 500 district panchayats.

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However, the political decentralization has not resulted into effective devolution of power on the fiscal
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and administrative fronts. Under the 73rd and 74th amendment acts, transfer of administrative and
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fiscal powers and responsibilities was left to the discretion of states. Consequently, the powers and
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functions vested in local self-government institutions vary from state to state.

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Fiscal decentralization i.e., the transfer of revenue and expenditure authority, in India has largely been
unsuccessful due to:

• Issues with resource allocation: Although each state has set up a State Finance Commission
for recommending resource allocation and creation but in the absence of clear transfer of
functions and reliable information, all SFCs face the problem of accessing the resource
requirements of local bodies.
• Dependence on state for resources: With only a few taxes and fees in the hands of local
government, the amount of internal revenues generated remains low. This creates high level
of dependency on fiscal transfers from the State. Most of the states transfer only 1-4% of their
revenue to local level which is not sufficient enough to perform essential local service delivery
functions.

Bottlenecks in administrative decentralization i.e., the transfer of functional responsibilities and staff
resources:
 • Continued control of the third tier by States: Most of the states have only broadly defined
powers and functions to be devolved to PRIs, from the indicative list of 29 functions in the XIth
Schedule of the Constitution.
• Lack of clear demarcation of functions:
o Jurisdictional limit between administration & local government has not been clearly
defined.
o There is overlap of functions between the three tiers of the Panchayats, generating
confusion and undermining accountability.
• Interference by state bureaucracy: More often than not, state bureaucracies have kept
control over key decisions involving resource and function allocation to local bodies.
• Lack of required administrative reforms: Even where roles are defined distinctively, most of
the states are yet to bring the requisite administrative reforms related to personnel
management, staff transfer, issuance of orders etc. which would enhance their productivity
significantly.

These imbalances in decentralization hamper effective public participation in the local government.
Identification of activities via activity mapping, clear delineation of function, devolution of powers by
legislative action and empowering local bodies to impose newer forms of tax(advertisement tax,
entertainment tax etc) would go a long way in leveraging local self-government institutions for
effective delivery of public goods and services.

Examine the significance of Gram Sabhas, as mentioned in Article 243A of the Indian
constitution, in the development process with special reference
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to Fifth Schedule areas. (10)
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Article 243 of the Indian Constitution defines the Gram Sabha (GS) as a body of persons registered in
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the electoral rolls relating to a village, within the area of the Panchayat at village level. As per Article
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243A Gram Sabha may exercise such powers and perform such functions at the village level as the
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Legislature of a State may, by law, provide. The Gram Sabha is the cornerstone of the entire scheme
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of democratic decentralization in India. Its significance in the developmental process lies in the
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following:
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Every adult of the village directly becomes a stakeholder in development process.

• Discussing the report on socio-economic development programmes implemented by the
Gram Panchayat (GP).
• Examining the annual statement of the accounts and audit report and the annual report of
administration of the Gram Panchayat.
• Identification of beneficiaries of various anti-poverty and rural development programmes.
• Mobilisation of voluntary labour and conducting community welfare programmes.
• Activities associated with development programmes like land acquisition or changes in forest
rights need consent of Gram Sabha.

In reference to the Fifth Schedule Areas the Gram Sabha has been vested with wide ranging powers
under Panchayats (Extension to Scheduled Areas) Act, 1996 to safeguard and preserve:

• Traditions and customs of the people and their cultural identity

• Community resources
• Customary mode of dispute resolution
These powers include:

• Ownership of minor forest produces.

• Mandatory consultation during Land Acquisition.
• Management of minor water bodies and control over mineral leases for minor minerals.
• Prevent alienation of Schedule Tribes and also work to restore unlawfully alienated lands.
• Controlling the business of money lending to Schedule Tribes.
• Issue a certificate of utilisation of funds by the Panchayat for the plans; programmes and
projects,

Gram Sabhas have been very crucial in Schedule V areas in creating awareness about traditional and
cultural rights of tribals and in prevention of illegal mining, deforestation and encroachments. This has
been demonstrated by cases like rejection of the Vedanta Mining Project in the interest of the
Niyamgiri Tribe.

However, states have been circumventing the authority of Gram Sabhas by diluting the provisions of
Fifth Schedule and PESA through laws and regulations to promote ease of doing business and
attracting investments. This does not augur well for grassroot democracy and inclusive development
and states must be more sensitive to concerns of local folks and work towards empowering Gram
Sabhas.

Theme 6: DPCs

District Planning Committees (DPCs) have been envisaged as a vital link in the process of bottom-up
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planning. In this context, highlight the factors that are hampering the bottom up planning process
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through DPCs. What measures can be taken to strengthen the DPCs? (250 words) 15
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District Planning Committees (DPC) is a Constitutional institution mandate Under the PRI Act, 1992 to
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prepare the development plan for the district as a whole with a focus on resource endowments,
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environmental conservation, infrastructural development and spatial planning and to act as a vital link
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in the process of bottom up planning.

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However, after so many years looking at the status of DPCs across various states it can be said that
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the intended objectives of decentralization planning through constitution of DPCs have not been
achieved or in few states with very little success and efficiency.

Various reasons that are hampering the bottom up planning process through DPCs are:
• The Devolution Report, 2015, published by the Ministry of Panchayati Raj says that several
states have not constituted DPCs despite Constitutional mandate.
• Even in states DPCs are established, their autonomy and functioning is hampered by
interference by state governments. Few states like Chhattisgarh, Gujarat, Punjab etc. have
ministers as Chairpersons of DPCs which severely hampers the participative nature of the
planning process.
• DPCs are functioning regular in few states only but with lack of efficiency and capacity in
terms of funds, expertise to sort out issues and deliver on time
• In almost all the states parallel bodies encroach on the functional domain of the DPCs.
• Inability of the DPCs to consolidate plans of village panchayats into a district perspective
plans.
Some measures that can be taken to strengthen DPCs:
• All states need to establish DPCs as per Constitutional guidelines with minimal interference in
terms of appointments or chairperson.
• DPCs need to be given adequate financial support, permanent office and secretariat in order
to enable them to perform their tasks effectively.
• Capacity building of members on the roles and functions of DPC and on the tenets of
integrated planning for social and economic development and to implement the decentralized
plans so prepared.
• A campaign approach can be adopted for orienting people towards participatory planning.
• Integration of urban and rural local bodies in their approach to planning as they have to keep
in mind the medium and long term vision and goals for the district in terms of expansion and
urbanization.
• Minimal interference of Centre as well as state government as they interfere in the domain of
DPCs via various Centrally Sponsored Schemes.

Strengthening DPCs can be done by sincerely implementing the recommendations of Ramachandran

Committee and Planning Commission Task Force on Integrated District Planning. NITI Aayog must
think of reviving DPCs and strengthening them so that it can emerge as the nodal institutions for
grassroots planning in India

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