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Local Government System in India Free e-book

LOCAL GOVERNMENT SYSTEM IN INDIA

Static GK is an important segment in General awareness. Questions related to Polity are

very commonly asked in several competitive exams such as SSC CGL, State PCS, Railways,
UPSC etc. In order to help you answer these questions, we bring you an ebook regarding
the ‘Local
System in Government
India’. This ebook will provide you with all the necessary information regarding the
Local Government system in India, salient features of the 73rd Constitutional Amendment Act,
various committees set-up for Panchayati Raj and other details regarding this topic.

Sample question:

Q. Which committee was established to review the working of Panchayati Raj?

A. Jagjivan Ram
B. K.N. Katju
C. Balwant Raj Mehta
D. Ashok Mehta
Answer: D. Ashok Mehta

Local government system or Panchayati Raj institutions

The 73rd and 74th constitutional amendments give recognition and protection to the local
government system in India. The Panchayati Raj System (1992) laid the foundation of the
present-day local self-government. Local government in India refers to governmental
administration below the level of the state. It is the government at the village and district level.

History of Panchayati Raj in India

The self-governing institutions, panchayats or village assemblies existed in ancient India as well.
They had distinct and well-defined functions. The institution of Panchayat represented the
collective will and wisdom of the entire rural community, but British rule introduced a highly
centralized system of administration. This changed the situation, and the system of village
Panchayats suffered a setback, but some attempts were made to introduce local governance
during British rule.

Panchayati Raj in India during the British Rule

• The famous Mayo’s resolution of 1870 gave impetus to the development of local
institutions by enlarging their powers and responsibilities.
• Lord Rippon in 1882 mandated two-thirds majority of non-officials who had to be
elected and the chairman of these bodies had to be from among the elected non-
officials. This is considered to be the Magna Carta of local democracy in India. Lord
Ripon is known as Father of Local Self Government in India.
Local Government System in India Free e-book

• Royal Commission on centralisation in 1907 under the Chairmanship of C.E.H.

Hobhouse recognized the importance of panchayats at the village level.
• Montagu Chelmsford reforms of 1919 transferred the subject of local government to
the domain of the provinces (States).
• Till 1925, eight provinces had passed the Panchayat Acts and by 1926, six native States
had also passed panchayat laws.

Thus, at the time of independence, Panchayats were functioning in some of the erstwhile
princely states, while in other states no such institutions existed.

Evolution of Panchayati Raj after independence

There were a number of committees appointed by the Government of India to study the
implementation of local self-government at the district and rural level. The committees
appointed are as follows:

• Balwant Rai Mehta Committee

• Ashok Mehta Committee
• G V K Rao Committee
• L M Singhvi Committee

Balwant Rai Mehta Committee (1957)

Balwant Rai Mehta Committee was the first committee set up in 1957 to analyse the problems
of decentralised democracy in Independent India. The committee reported on the community
development projects and the National Extension Service. The committee pointed out that the
community development projects failed as it could not invoke local initiative and interest
without which the projects would not be successful.

Recommendations of the Balwant Rai Mehta committee are:

• Establishment of an organically linked 3-tier Panchayati Raj system - Gram Panchayat

at the village level, Panchayat Samiti at the block level, and Zilla Parishad at the district
level.
• The gram panchayat was to be constituted by directly elected representatives whereas
the Panchayat Samiti and Zila Parishad was to be constituted by indirectly elected
representatives.
• All planning and developmental activities at all three levels should be entrusted to these
bodies with adequate power and resources to discharge their duties.
• The Panchayat Samiti should be the executive body while the Zilla Parishad should be
the advisory, coordinating and supervisory body.
• The District Collector should be the Chairman of the Zilla Parishad.
• A system should be evolved to effect further devolution of authority in future.
• Elections have to be constituted for every 5 years in a genuine way.
Local Government System in India Free e-book

It recommended the establishment of the scheme of 'democratic decentralisation' which

finally came to be known as Panchayati Raj. These recommendations were accepted by the
National Development Council in January 1958. This led to the establishment of a three - tier
Panchayati system:

• Gram Panchayat at the village level

• Panchayat samiti at the block level and
• ZiIla Parishad at the district level

The states could devise their own pattern in the establishment of these institutions based on
certain broad fundamentals that were the same throughout the country.

Ashok Mehta committee (1977)

The committee was appointed in 1977 to inquire into the causes responsible for the poor
performance of Panchayat Raj institutions and suggest measures to revive and strengthen the
declining Panchayati Raj system in India.

Suggestions of Ashok Mehta committee are:

• Two-tier system with Zilla Parishad at the district level and Mandal Panchayat at the
grass root level as against the three-tier system.
• District level to be the first point of decentralisation and supervision below the state
level.
• Zila Parishad to be the executive body responsible for planning at the district level.
• Panchayati Raj institutions must have compulsory powers of taxation to mobilise their
own financial resources.
• Seats for SCs and Sts should be reserved on the basis of their population.
• A Constitutional recognition should be accorded to the Panchayati Raj institutions.

Due to the fall of the Janata government, the Ashok Mehta recommendations were not
implemented. Few Indian states of Karnataka, Andhra Pradesh, and West Bengal passed new
legislation based on the recommendations of this committee.
Local Government System in India Free e-book

GVK Rao Committee (1985)

The committee was constituted to look into the aspects of Panchayati Raj Institutions (PRIs).
The committee was of the opinion that efforts must be focused on rural development with
PRIs playing a central role in it.

The recommendations of the committee were:

• Zila Parishad must be made as the basic unit of planning in the scheme of democratic
decentralization.
• The district and the lower levels of the Panchayati Raj system to be assigned with
specific planning, implementation and monitoring of the rural developmental
programmes.
• Post of District Development Commissioner is to be created who will be the chief
executive officer of the Zila Parishad.
• Elections to the levels of Panchayati Raj systems should be held regularly.

L M Singhvi Committee (1986)

The committee was appointed with the main objective to recommend steps to revitalise the
Panchayati Raj systems for democracy and development.

The recommendations of the L M Singhvi Committee were:

• Panchayati Raj systems should be constitutionally recognised and called for non-
involvement of political parties in the Panchayat elections.
• The committee recommended reorganisation of villages to make the gram panchayat
more viable.
• It recommended that village panchayats should be allocated more finances for their
activities.
• Judicial tribunals to be set up in each state to adjudicate matters relating to the
elections to the Panchayati Raj institutions and other matters relating to their
functioning.

As a result of the various committees, the scheme of democratic decentralization was

launched in Rajasthan on October 2, 1959. In Andhra Pradesh, the scheme was introduced on
1st November 1959. The necessary legislation had also been passed and implemented in
Assam, Gujarat, Karnataka, Madhya Pradesh, Maharashtra, Orissa, and Punjab etc.
Though there are variations among states, there are some features that are common. In most
of the states, the common three-tier structure includes:

• Panchayats at the village level

• Panchayat samitis at the block level
• Zila parishads at the district level
Local Government System in India Free e-book

In subsequent years in order to revive and give a new lease of life to the panchayats, the
Government of India had appointed various committees. The most important among them
are the and the Sarkaria Commission on Centre-State relations (1988), P.K. Thungan
Committee (1989) and Harlal Singh Kharra Committee (1990).

• The Amendment phase began with the 64th Amendment Bill (1989) which was
introduced by Rajiv Gandhi seeking to strengthen the PRIs, but the Bill was not
passed in the Rajya Sabha.
• The Constitution (74th Amendment) Bill,a combined bill for the PRIs and
municipalities, was introduced in 1990 but was never taken up for discussion.
• It was during the Prime Ministership of P.V.Narasimha Rao that a comprehensive
amendment was introduced in the form of the Constitution 72nd Amendment Bill in
September 1991.

73rd and 74th Constitutional Amendments were passed by Parliament in December 1992.
Through these amendments local self-governance was introduced in rural and urban India.

73rd and 74th Amendment Act, 1992 – Panchayati Raj Institutions (PRIs)

The passage of these acts provides constitutional status to the Panchayati Raj Institutions
(PRIs). The Panchayati Raj system exists in all states except Nagaland, Meghalaya, and
Mizoram, and in all Union Territories except Delhi.

The main features of the 73rd Amendment Act, 1992 are:

• A 3-tier system of Panchayati Raj for all States having a population of over 20 lakhs
• Panchayat elections regularly every 5 years
• Reservation of seats for Scheduled Castes, Scheduled Tribes, and women (not less
than one-third of seats)
• Appointment of State Finance Commission to make recommendations as regards the
financial powers of the Panchayats and
• Constitution of District Planning Committees to prepare development plans for the
district as a whole.

The Panchayati Raj Institutions enjoy powers and authority with reference to

• The preparation of plans for economic development and social justice

• The implementation of such schemes for economic development and social justice as
may be entrusted to them.

Salient Features of the 74th Amendment Act

• Constitutional status has been accorded to Urban Local Government bodies. Three-
tier structure has been envisaged, whereby there would be:
o Municipal corporations, for larger areas,
o Municipal councils for smaller areas, and
Local Government System in India Free e-book

o Nagar panchayats for villages in the transition to becoming towns.

• Direct election to these Municipal bodies by the people has been provided.
• Reservation of one-third of seats for women including women belonging to Scheduled
Castes and Scheduled Tribes is ensured.
• The State Finance Commission would ensure the financial viability of the
Municipalities. Municipal funds have been augmented through taxes, tolls, duties and
fees, grants-in aid.
• Urban municipal institutions of self-government have been endowed with power and
authority to formulate and implement schemes for economic development and social
justice on 18 subjects.
• Developmental Committees, namely, (DPC) and Metropolitan Planning Committees
have been constituted.
• For better proximity with citizens, wards committees have been constituted.

Salient Features of the Constitution 73rd and 74th amendments

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)

Basic units of democratic system-Gram Sabhas (villages) and Ward Committees

(Municipalities) comprising all the adult members registered as voters

Seats reserved for Scheduled Castes (SCs) and Scheduled Tribes (STs) and the chairpersons
of the Panchayats at all levels also shall be reserved for SCs and STs in proportion to their
population

One-third of the total number of seats to be reserved for women

Seats at all levels to be filled by direct elections Article 243C (2)

Three-tier system of panchayats at village, intermediate block/taluk/mandal and district

levels except in States with population is below 20 lakhs (Article 243B)

One third of the seats reserved for SCs and STs are also reserved for women

One-third offices of chairpersons at all levels reserved for women (Article 243D)

Uniform five-year term and elections to constitute new bodies to be completed before the
expiry of the term

In the event of dissolution, elections compulsorily within six months (Article 243E)

Independent Election Commission in each State for superintendence, direction and control
of the electoral rolls (Article 243K)

Panchayats to prepare plans for economic development and social justice in respect of
subjects as devolved by law to the various levels of Panchayats including the subjects as
illustrated in Eleventh Schedule (Article 243G)
Local Government System in India Free e-book

The 74th Amendment provides for a District Planning Committee to consolidate the plans
prepared by Panchayats and Municipalities (Article 243ZD)

Budgetary allocation from State Governments, share of revenue of certain taxes, collection
and retention of the revenue it raises, Central Government programmes and grants, Union
Finance Commission grants (Article 243H)

Establish a Finance Commission in each State to determine the principles on the basis of
which adequate financial resources would be ensured for panchayats and municipalities
(Article 243I)

The Eleventh Schedule of the Constitution places as many as 29 functions within the
purview of the Panchayati Raj bodies.

The following areas have been exempted from the operation of the Act because of the socio-
cultural and administrative considerations:

• Scheduled areas listed under the V Schedule in the states of Andhra Pradesh, Bihar,
Gujarat, Himachal Pradesh, Madhya Pradesh, Maharashtra, Orissa and Rajasthan.
• The states of Nagaland, Meghalaya and Mizoram.
• The hill areas of district of Darjeeling in the state of West Bengal for which Darjeeling
Gorkha Hill Council exists.

In conformity with provisions in the Constitution Amendment Act, an Act called the
Provisions of Panchayats (Extension to the Scheduled Areas) Act, 1996 was passed by the
Government of India.

PESA Act of 1996

Even though the provisions of Part IX are not applicable to the Fifth Schedule areas, the
Parliament has the power to extend this Part to such areas with modifications and exceptions
as it may specify. Under these provisions, Parliament enacted Provisions of the Panchayats
(Extension to the Scheduled Areas) Act, popularly known as PESA Act or the extension act.

Objectives of PESA Act of 1996

• To extend the provisions of Part IX to the scheduled areas.

• To provide self-rule for the tribal population.
• To have village governance with participatory democracy.
• To evolve participatory governance consistent with the traditional practices.
• To preserve and safeguard traditions and customs of tribal population.
• To empower panchayats with powers conducive to tribal requirements.
• To prevent panchayats at a higher level from assuming powers and authority of
panchayats at a lower level.
Local Government System in India Free e-book

India currently has 2,60,512 PRIs and urban local bodies with over 3 million elected members
out of which 1.4 million representatives are women. The Panchayati Raj institutions have
witnessed remarkable success and failure in the journey so far.

While the PRI has created another layer of government and political representation at the
grass-roots level, it has failed to provide better governance. Issues faced by PRIs include:

• Lack of funds
• Interference of MPs and MLAs in the functioning of panchayats
• Little devolution of authority and authority
• Structural deficiencies
• Lack of accountability are some of the issues

To overcome these issues, some steps that can be taken include:

• Fiscal autonomy with responsibility to PRIs

• Activity mapping of all the tiers of government
• Creation of separate bureaucratic cadre for Panchayats (as seen in Karnataka)
• Training of local representatives

The way forward is to provide clarity in the assignment of functions and clear and
independent sources of finance to the local governments, in the interest of democracy, social
inclusion and cooperative federalism.

This was all the information in this ebook about the local government system in India This topic is
important for several examinations. It is highly recommended to have thorough knowledge
regarding Panchayati Raj institutions to gain more marks in the examinations.
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