Constitutional Amendments (1992) | Public Administration Optional for UPSC (Notes) PDF Download

Introduction

The 73rd Constitutional Amendment, which revitalized Panchayati Raj, was inspired by Rajiv Gandhi's vision for responsive administration. He emphasized the need for district administration to be more representative and connected to the people, as the decay of Panchayati Raj Institutions had led to a disconnection between administration and citizens. The Amendment, effective from April 24, 1993, aimed to transform panchayats into genuine institutions of participatory self-government, not just implementing agencies for central and state schemes. The core objective was to achieve Gandhiji's idea of "Swarajya" through democratic decentralization. This unit will explore the features of the 73rd and 74th amendments in detail.

Initiatives towards Constitutional Status to Local Governance 

• The 64th and 65th Amendment Bills aimed at giving constitutional status to Panchayati Raj Institutions (PRIs) but faced opposition in Parliament, particularly from the Rajya Sabha. The main concern was that these bills would place local governance under the direct control of the Central government, which did not sit well with the states.
• Despite their failure, these bills sparked a national debate on the necessity of constitutional status for PRIs and allowed Parliament members to explore the details for future amendments. By the time of the mid-term Lok Sabha elections, a consensus had formed in favor of granting constitutional status to PRIs, enabling them to act as agents of change and development at the local level.
• When the Congress government took power in 1991, it prioritized PRIs and introduced the Constitutional 72nd Amendment Bill, which was passed by Parliament on December 22, 1992, and is now known as the Constitution 73rd Amendment Act.
• This marked a significant step in institutionalizing democratic decentralization and strengthening rural local self-government in India. The Amendment recognizes Panchayats as self-governing institutions with the autonomy to govern specific areas, effectively making them the third tier of governance. Additionally, it promotes administrative federalism by encouraging states to delegate administrative and financial powers to local bodies, although these powers are derived from state legislation.

Features of 73rd Constitutional Amendment

• Insertion of Part IX: Part IX was added to the Constitution, providing a legal framework for Panchayati Raj Institutions (PRIs).
• Eleventh Schedule: The Eleventh Schedule was introduced, detailing the functions to be performed by PRIs (Article 243G).
• Panchayat Structure: Panchayats are to be constituted at the village, intermediate, and district levels in every state, ensuring uniformity in the PR structure. States with a population not exceeding 20 lakh have the option to omit the intermediate level.

Election Process: Direct Elections: All members of the Panchayats at various levels will be elected directly by the voters. 

• Indirect Elections for Chairpersons: The Chairpersons at the intermediate and district levels will be elected indirectly. The method for electing the Chairperson at the village level will be determined by the State Government. Voting Rights: All members, including the chairperson, will have the right to vote.

Reservation of Seats: Seats for Scheduled Castes (SC) and Scheduled Tribes (ST) will be reserved in proportion to their population at each level of the Panchayat.

• Women's Reservation: Not less than one-third of the total membership will be reserved for women, including both reserved and general categories. These seats may be allotted by rotation to different constituencies within a Panchayat. Similar reservations apply to the office of the chairperson as well.

Term Duration:. uniform term of five years has been established for Panchayati Raj Institutions (PRIs). In cases of dissolution or supersession, elections to constitute the body must be completed within six months from the date of dissolution. If the remaining period is less than six months, fresh elections may not be necessary. Panchayats constituted upon dissolution may continue for the remainder of the period.

• Continuity Provision: To ensure continuity, the Act stipulates that all Panchayats existing before the commencement of this Amendment Act will continue until the expiry of their duration. This is unless they are dissolved by a resolution passed by the State Legislatures or by any law relating to Panchayats that was in effect before the amendment, which is not inconsistent with the new provisions.

Election Commission: An Election Commission will be established for conducting all elections to the Panchayats. This Commission will consist of a State Election Commissioner appointed by the State Government. The Commission will be responsible for the supervision, direction, and control of the preparation of electoral rolls.

• Financial Powers to Panchayats: State Legislatures will have the authority to empower Panchayats to levy, collect, and appropriate suitable local taxes. Additionally, they can provide for making grants-in-aid to the Panchayats from the consolidated fund of the concerned state.

State Finance Commission:. State Finance Commission will be constituted every five years to review the financial position of the Panchayats. The Commission will make recommendations to the Governor regarding the principles governing the distribution of revenue between the state and the Panchayats. This includes the net proceeds of taxes, duties, tolls, and fees levied by the state, or grants-in-aid. The Commission will also recommend measures to strengthen the financial position of the Panchayat bodies and address any other matters referred to it by the Governor.

• Central Finance Commission: The 73rd Amendment Act adds a sub-clause (bb) to Article 280 of the Constitution. This sub-clause mandates the Central Finance Commission, in addition to its other duties, to make recommendations to the President regarding measures to augment the Consolidated Fund of a State. This is aimed at supplementing the resources of the Panchayats in the State, based on the recommendations made by the State Finance Commission.

The 73rd Amendment Act was a significant step in strengthening democracy in India by providing constitutional recognition to Panchayati Raj Institutions (PRIs). It aimed to enhance the effectiveness and efficiency of local self-governance by ensuring regular elections, financial autonomy, and a uniform structure across states. However, challenges such as irregular elections and compliance issues remained, necessitating further interventions.

Provisions of the 73rd Amendment Act

• Constitutional Status: The Act granted PRIs constitutional legitimacy, elevating them from the Directive Principles of State Policy to a constitutional mandate.
• Three-Tier System: It established a permanent three-tier system of governance at the village, block, and district levels, ensuring uniformity across states.
• Regular Elections: The Act mandated regular elections for PRIs every five years, with the State Election Commission overseeing the process.
• Financial Autonomy: It enhanced financial autonomy by constituting State Finance Commissions to recommend the distribution of financial resources between the state and local bodies.

Observations on the 73rd Amendment Act

• Constitutional Recognition: The amendment was crucial in providing constitutional recognition to PRIs, addressing the earlier criticism that democratic decentralization was inadequately supported in the Constitution.
• Acknowledgment of Three Tiers: By recognizing PRIs as the third tier of governance, the amendment strengthened Indian federalism, although some experts suggested the need for a separate Panchayat List in the Seventh Schedule for clarity.
• Uniformity vs. Discretion: While the amendment aimed for uniformity in PRI structures, it still allowed states discretion in certain aspects, such as the size of Panchayats, which could lead to variations in implementation.
• Addressing Irregularities: The amendment tackled the chronic issue of irregular elections and the suppression of PRIs, but compliance varied across states, necessitating court interventions in cases like Orissa and Uttar Pradesh.
• Compliance and Reservation Issues: Courts had to step in to ensure compliance with the amendment’s provisions, including the reservation clause for scheduled castes and tribes in states like Punjab and Uttar Pradesh.

Conclusion

The 73rd Amendment Act was a landmark in enhancing the role and recognition of Panchayati Raj Institutions in India, aiming for a more robust and decentralized governance structure. However, its success depended on consistent implementation and adherence to the constitutional provisions across all states.

Gram Sabha and its Role

• The Gram Sabha is a crucial institution that allows all interested and capable individuals to participate meaningfully in governance and the development process at the village level.
• The 73rd Constitutional Amendment made the Gram Sabha mandatory, but it is up to State Governments to define its powers and jurisdictions.
• In many states, the Gram Sabha is given a limited and ceremonial role, such as endorsing proposals, making recommendations, and reviewing development plans.
• Some of its other functions include promoting village unity, mobilizing voluntary labor and contributions, assisting in the implementation of development schemes, and promoting adult education and family welfare programs.
• There are concerns about the direct election of village panchayat members, as it may create a hierarchy where the elected head is seen as more important than other participants.
• The presence of Members of Parliament (MPs) and Members of the Legislative Assembly (MLAs) in local bodies might also overshadow local leaders, further complicating governance at the local level.

Relationship between Bureaucracy and Elected Representatives

• The relationship between local-level bureaucracies and elected representatives of Panchayati Raj Institutions (PRIs) has been problematic, with both sides lacking defined roles and working harmoniously.
• This contentious relationship has contributed to the failure of PRIs in many cases.
• Cooperation from the bureaucracy is essential for the successful implementation of devolution of powers and functions as stipulated by the 73rd Amendment.
• If the bureaucracy does not cooperate, the implementation of programs and policies will face obstacles, making the ideal of local self-governance difficult to achieve.
• The bureaucracy plays a crucial but often unrecognized role in the empowerment of local self-governance and participatory democracy.
• Its perception of and commitment to this change will significantly impact the success of local governance initiatives.
• Devolution is an executive process that requires detailed administrative rules and procedures, such as procurement rules, reporting structures, and accounting systems.
• Without these details, the statutory provisions are just a skeletal framework and lack substance, reducing the 11th and 12th schedules to mere shopping lists.

Lastly, various issues pertaining to Panchayati Raj Institutions (PRIs) over the past thirty years have included the condition of Panchayat Samitis and Zilla Parishads, insufficient finances, and the lack of PRIs' involvement in rural development planning. The amendment aimed to address these issues by incorporating them into the legal framework. However, certain problems have continued to persist.

• There has been a general reluctance to grant political space to the underprivileged in panchayats. For instance, states like Punjab and Uttar Pradesh have reportedly failed to implement the reservation provision of the act effectively. This raises concerns about whether the backward sections will be articulate and effective or, more realistically, be overwhelmed by the power elite.
• Additionally, questions arise about whether the state bureaucracy will change its stance and collaborate with local government or if working with a panchayat could harm individual bureaucrats' career prospects. There are also uncertainties regarding the actual devolution of powers and functions as stipulated and the impact of increased private and foreign involvement in urban development on the urban poor. These issues require ongoing empirical research and policy adjustments.

Democratizing Decentralization:

• As per Palanithurai and Raghupathi, democratizing decentralization aligns with the new public management principle, aiming to enhance service delivery by stimulating demand through institutions like the District Planning Committee and the Gram Sabha while adjusting supply accordingly. This approach marks a shift from macro to micro concerns in planning, addressing the previous overemphasis on macro issues. 
• Democratic decentralization seeks to encourage interest articulation from the underprivileged and those 'unequally placed' at the local level. In response to the expanding market and shrinking state sector, it aims to counterbalance by broadening people's 'choice' through multiple service delivery and self-help options, moving away from the state's monopoly that fostered corruption and inefficiency. This shift allows the state to fulfill its constitutional obligations amidst the imperatives of globalization, liberalization, and privatization. 
• By institutionalizing public participation in administration, the state is creating an alternative service delivery mechanism to the shrinking bureaucracy, which is expected to diminish further as liberalization progresses. Chaudhari (2003) notes that the timing of the 1991 trade and industrial policy reforms coincided with the push for democratic decentralization. These reforms were a response to the economic crisis rooted in fiscal mismanagement, bureaucratic inefficiency, corruption, and the need for a systemic overhaul. 
• In 1991, following a severe balance of payments crisis, the government initiated a comprehensive package of economic reforms, including the dismantling of the industrial licensing regime, deregulation of domestic industry, trade liberalization, foreign direct investment, and financial sector reforms. The overarching goal was to reduce the non-performing state apparatus and create functional space for the private sector and civil society, particularly the non-government sector, in collaboration with state agencies acting as facilitators and catalysts rather than monopolists. This framework aligns with the concept of "reinventing government" for improved governance. 
• Although the idea of local governance reform emerged later, there was a consensus on the need for reform due to the Indian developmental state's failure in human development and poverty alleviation. The aim was to reconfigure the government's structure, as noted by Chaudhari (2003). While inertia in the old order transitioning to the new is expected, reform efforts must continue to address structural and attitudinal roadblocks as they arise. One indication of this is the discretionary provisions aimed at securing consensus for democratic decentralization within existing constraints. 

Limitations of the 73rd Amendment
The framework has several significant limitations:

• The 29 subjects in the 11th schedule do not grant local bodies the power to legislate but only to make decisions.
• State Finance commissions' recommendations are not mandatory, leaving it to State Governments to decide on devolving functions, functionaries, and resources to local bodies.
• The 29 items are managed by different ministries, not the Minister of Panchayati Raj and Rural Development, requiring coordination from various ministries for devolution.
• Rules for guiding Panchayat Raj administration need to be developed and disseminated in regional languages.
• Devolution of functions should follow a systematic process, including mapping activities, identifying and developing skills, and ensuring uninterrupted communication between state officials and local functionaries.
• Leaving the process to the discretion of State Governments is not effective, as evidenced by the varying commitment levels across different states.
• States like West Bengal, Karnataka, Gujarat, and Maharashtra have made progress in local self-governance, while others have been lackluster in their efforts.

Progress in Specific States

Gujarat and Maharashtra. In the 1960s, both states passed legislation transferring various activities, including primary health care and education, to district panchayats. They also established separate administrative services—the Panchayat Service in Gujarat and the Maharashtra Development Service in Maharashtra —to facilitate state-level bureaucrats working with district panchayats. Karnataka. In the mid-1980s, Karnataka devolved significant developmental functions to panchayats. However, the current devolution process is being carried out in a perfunctory manner without a systematic approach. West Bengal. The state has made concerted efforts to empower local bodies as developmental entities by devolving powers and functions, nurturing them as effective governance units. Overall, while some states have embraced the ideals of local self-governance and made substantial progress in devolving powers and functions to local bodies, others have lagged behind, indicating a lack of commitment to the principles of the 73rd Amendment.

Nomenclature of Panchayats and Chairpersons

• Nomenclature of Panchayats and Chairpersons: The nomenclature of panchayats and their chairpersons can vary based on the size of the population and the area covered at the village and intermediate levels.
• Composition of Panchayats: This includes decisions on whether to provide representation for chairpersons at the next higher level, as well as the inclusion of Members of Parliament (MPs) and Members of Legislative Assemblies (MLAs) from both state and union legislatures.
• Mode of Election: The method of electing the chairperson of the village panchayat, whether through direct or indirect means, is a crucial aspect.
• Reservations: Considerations regarding reservations for backward classes and the manner in which various seats will be circulated to implement these reservations are important.
• Powers and Functions of Gram Sabha: The powers and functions of the Gram Sabha in relation to preparation and implementation of plans for economic development, social justice, and matters listed in the 11th schedule are to be clearly defined.
• Taxation Powers: Deciding on taxes, duties, tolls, and fees that can be levied by panchayats and establishing procedures and limits for these levies is essential.
• Grants-in-Aid: Determining the amount of grants-in-aid from the consolidated fund of the state to panchayats is a key consideration.
• Panchayat Funds: Authorizing panchayats at different levels to create funds for receiving and withdrawing money is necessary.
• Finance Commission: Provisions regarding the composition, qualifications, selection, powers, and functions of the Finance Commission should be laid out.
• Maintenance of Accounts: Rules regarding the maintenance and auditing of accounts by panchayats need to be established.
• State Election Commissioner: The conditions of service and tenure of the State Election Commissioner, as well as provisions related to panchayat elections, should be determined. The State Election Commissioner’s office is designed to ensure neutrality and autonomy, with removal procedures similar to those of a High Court judge.

Amendment of Article 243 (A)

• Article 243 (A) gives the power to the State Legislature to make provisions regarding the composition and functions of the District Planning Committee (DPC) in connection with the planning and development of the district.
• Article 243 (A) (1) provides the State Legislature with the authority to make provisions regarding the composition and functions of the District Planning Committee (DPC).
• Article 243 (A) (2) states that the Chairperson of the DPC shall be elected by the members of the district-level panchayat and municipalities, in proportion to the population ratio of urban and rural areas in the district.
• Article 243 (A) (3) gives discretion to the State Legislature to continue existing laws related to panchayats if they are not dissolved, amended, or repealed.

Features of the 74th Constitutional Amendment

The 74th Constitutional Amendment was passed in 1992 and came into force on June 1, 1993. It aimed to strengthen urban local governance in India, similar to the 73rd Amendment for rural areas. Here are the key features:

• Constitutional Status: Urban local bodies were given constitutional status, ensuring their importance in governance.
• Three-Tier Structure:The amendment envisaged a three-tier structure of urban governance:
  • Municipal Corporations: For larger urban areas.
  • Municipal Councils: For smaller towns and cities.
  • Nagar Panchayats: For transitional villages moving towards urban status.
• Direct Elections: Municipal bodies are to be elected directly by the people, similar to Lok Sabha and State Assembly elections. The State Election Commission is responsible for conducting these elections.
• Reservation for Women: One-third of seats in urban local bodies are reserved for women, including those from Scheduled Castes and Scheduled Tribes.
• State Finance Commission: This commission ensures the financial viability of municipalities. Municipal funds can be augmented through various means, including taxes, tolls, duties, fees, and grants-in-aid.
• Empowerment of Urban Local Bodies: These bodies have been empowered to formulate and implement schemes for economic development and social justice across 18 subjects.
• Decentralized Planning: The amendment led to the establishment of District Planning Committees (DPCs) and Metropolitan Planning Committees (MPCs), decentralizing planning authority down to the grassroots level.

Overall, the 74th Constitutional Amendment was a significant step towards enhancing the role and capacity of urban local bodies in India, promoting decentralized governance and empowering local communities.

Wards Committees have been formed to enhance proximity and engagement with citizens.

The 74th Constitutional Amendment Act (CAA), along with the 73rd CAA concerning Panchayati Raj institutions, has established local self-government bodies across rural and urban India. These bodies have been granted specific powers—29 for rural areas and 18 for urban areas. The Amendments have also created the devolution, deliberative, and executive wings of government, defined their authorities and responsibilities, and set up Developmental Committees (DPC, MPC) and the Finance Commission. Within each municipality, Wards Committees and Zonal Committees have been constituted to facilitate local governance.

Observations on the 74th Amendment

• The 73rd and 74th Amendments to the Constitution represent a significant turning point in the development of local governance in India. For the first time, Panchayati Raj Institutions in rural areas and municipalities and municipal corporations in urban areas have been given constitutional recognition, elevating them to the status of ‘governments’ at the local level, akin to the Union Government at the national level and the State Government at the state level (Bhattacharya, 2004).
• The 74th CAA has led to the establishment of numerous small local governments across India, each with defined territorial jurisdictions. This has transformed India into a “federation of federations.” The Amendment has not only constitutionalised the status of urban local governments but has also enhanced their operational framework, structure, and financial capacity (Dash, 2004).

Despite these advancements, several challenges persist:

• Classification Confusion: The process of classifying areas as rural or urban is problematic. States like Gujarat, Kerala, Tamil Nadu, and West Bengal, despite having a high concentration of non-agricultural activities, have a significant number of census or non-municipal towns. These towns, due to their non-municipal status, miss out on the financial benefits that urban classification would confer.
• Grant Dynamics: State governments prefer to retain panchayat status for these towns because it allows them to access grants under rural development schemes. Conversely, classifying these areas as urban would require the state to provide grants, creating a financial burden.
• Financial Disparities: Urban local bodies have access to better financial resources, such as property tax, entertainment tax, and service charges. These resources are lost if towns are not classified as urban, creating an imbalance in revenue generation.
• Control Dynamics: Panchayats are easier for state governments to control compared to urban bodies, which adds to the preference for rural classification.
• Political Reconfiguration: In BIMARU states like Rajasthan, Uttar Pradesh, and Madhya Pradesh, political considerations often drive the carving out of districts, which does not align with theoretical classifications.
• Need for a New Classification System: There is a growing consensus that a threefold classification system—urban, suburban, and rural—would better reflect reality and enhance governance. This was suggested as early as the 1961 census.
• Urban Outgrowth Issues: Urban outgrowths, which are urban areas developing around the fringes of a cantonment board due to institutions like universities or ports, face governance issues. These areas, lying within the geographical limits of an adjoining village panchayat, are not governed by municipalities despite being urbanized. Their small size prevents the establishment of independent municipalities, leading to lost revenue. Addressing this issue is crucial to prevent revenue loss due to erroneous classification (R.B. Bhagat).

District Planning Committee

The District Planning Committees (DPCs), which were given constitutional status under Article 243Z(d) by the 74th Constitutional Amendment Act, are meant to play a crucial role in district-level planning. Unlike the Planning Commission, which is an extra-constitutional body but wields significant power, the DPCs have not been as effective despite their constitutional backing.

Need for Strengthening DPCs

• Effectiveness: There is an urgent need to make the DPCs more effective in their functioning.
• Approval Process: The district plans prepared by Panchayati Raj Institutions (PRIs) and municipalities should be approved by the State Government without any alterations.
• Guidelines: DPCs should have the authority to issue guidelines to lower-level units regarding their annual action plans and consolidated five-year plans.

Shift in Responsibilities

• The 74th Constitutional Amendment has shifted the responsibilities of municipal bodies from merely being "agency functions" to being responsible bodies for development planning.
• Traditional Functions: Previously, municipal bodies were responsible for basic amenities such as water supply, sanitation, roads, street lights, solid waste disposal, maintenance of public places, and regulatory functions related to public health.

Expanded Functions

• The range of functions for urban local bodies has broadened to include urban and town planning, land use regulation, slum improvement, urban poverty alleviation, and cultural and educational promotion.
• Safeguarding Weaker Sections: There is a specific emphasis on safeguarding the interests of weaker sections of society, including the handicapped and mentally retarded.
• Prevention of Animal Cruelty: The subject of cattle pounds has been extended to include the prevention of animal cruelty.

Democratic Representation

• There are approximately 73,000 elected representatives in urban local bodies (ULBs) across the country, indicating that democracy has been effectively implemented at the grassroots level.
• Future Role of ULBs: The immediate future role set out for ULBs includes various responsibilities that reflect their enhanced status and expanded functions.

Decentralised Planning in Context of 73rd and 74th Constitutional Amendment Act

Historical Background

• The effort to set up a proper planning system at the local level has been lacking. While there has been effective decentralisation in planning at the state level, its success varies depending on the size of the state. (Rao, 1989). At the district level, the planning system is weak due to a lack of technical expertise and financial resources. There is also a lack of a coordinating agency to link and implement various programmes and schemes effectively. Decentralised planning at the district level has been successful in states with better land reform performance, such as West Bengal, Karnataka, and Jammu and Kashmir.
• Before the 73rd and 74th Constitutional Amendment Acts, all committees advocated for decentralised planning. This led to the presentation of the 64th and 65th Constitutional Amendment Bills in 1989, aiming to provide constitutional status to local government institutions in rural and urban areas. Although these bills were crucial for decentralised planning, they could not pass in the Rajya Sabha. This indicates that the efforts towards decentralised planning in the post-independence era, before the 73rd and 74th Amendment Acts, did not meet the necessary requirements and did not yield the desired results. Decentralised planning remained an unachieved goal.
• To build and strengthen planning capabilities at the district and block levels, the 73rd and 74th Amendment Acts were enacted. With the constitutional status granted to Panchayati Raj Institutions (PRIs) and municipalities by these amendments, decentralised planning gained new responsibilities for formulating and implementing programmes for economic development and social justice. This marked the establishment of a three-tier planning process involving the centre, states, and Panchayats.

Initiatives Following Economic Reforms

In the aftermath of the economic reforms introduced by the Narasimha Rao-led Congress government in the early 1990s, there was a renewed recognition of the importance of democratic decentralization in planning. This recognition paved the way for the passage of the much-discussed constitutional amendment acts, which were seen as significant milestones in the journey towards decentralized governance and planning.

The 73rd and 74th Constitutional Amendment Acts aimed to establish a framework for decentralized planning and governance. To assess how closely these acts align with the principles of decentralized planning, it is essential to examine their adherence to specific prerequisites:

1. Creation of Regular Bodies in the Planning Hierarchy

• Article 243B of the 73rd Amendment Act provided for the establishment of a three-tier panchayat system at the village, block, and district levels.
• Article 243E ensured a fixed tenure of five years for these local bodies.
• State legislatures have created the necessary structures in both urban and rural areas and are conducting regular elections, indicating that the constitutional amendments meet the prerequisites for decentralized planning.

2. Decentralization of Power and Functions

• The 73rd and 74th Amendment Acts aimed at decentralizing power and functions to local government institutions, as outlined in the 11th and 12th Schedules of the Constitution.
• These schedules delineated the functional and fiscal powers devolved to local bodies.

3. Devolution of Financial Resources

• While the Acts favored the devolution of financial powers, they did not specify revenue resource subjects in the 11th and 12th Schedules.
• The state governments were given discretion over taxes, duties, tolls, fees, and grants-in-aid for local bodies.
• The Acts provided for the establishment of Panchayat Finance Commissions to assess the financial needs of rural and urban local bodies and make recommendations for financial autonomy.

4. Implementation Challenges

• Although many states constituted the Panchayat Finance Commissions, there have been delays in report submissions and action on recommendations.
• This indicates that the devolution of financial powers is still a work in progress and the third prerequisite for decentralized planning is not fully met.

5. Overall Assessment

• The 73rd and 74th Constitutional Amendment Acts represent a significant step towards decentralized governance and planning in India.
• However, challenges remain in the devolution of financial powers and the effective implementation of recommendations, highlighting the need for ongoing efforts to strengthen decentralized planning frameworks.

Subordination to Higher Political Echelons Rather than to Bureaucracy

Subordination of Bureaucracy to Elected Representatives

• A fundamental principle of democracy is that the bureaucracy should be subordinate to the democratically elected representatives of the people.
• Bureaucracy functions well as a servant but poorly as a master, and this principle applies at all levels: grassroots, state, and central.

Irony in State Enactments

• Despite this principle, many state enactments have strengthened the bureaucracy's position over that of the elected representatives at the local level.
• Higher bureaucracy in various states has been granted the power to suspend and even supersede local institutions.

District-Level Control

• In most states, district-level officials regulate and control the functioning of local institutions.
• For example, under the Haryana Panchayati Raj Act, 1994, district officials have the authority to suspend or prohibit actions taken by Gram Panchayats.

Bureaucratic Control in Various States

• Karnataka: The Panchayati Raj Act gives bureaucracy the power to assess panchayat performance.
• Bihar: Officials act as the controlling authority, and panchayat leaders must resign to bureaucrats.
• Haryana: Most powers are conferred to bureaucracy or government, limiting panchayat autonomy.
• Kerala: The Panchayat Act promotes bureaucratic control over local governance.
• Himachal Pradesh: The Panchayati Raj Act does not grant sufficient administrative and financial autonomy to panchayats.
• Punjab: The Panchayati Raj Act allows the Director to remove any Sarpanch.
• Uttar Pradesh: The Assembly ratified the Panchayati Raj Act hastily, limiting opposition discussion.
• Andhra Pradesh: The Panchayat Act reflects bureaucratic control over panchayats.

 (Source: Gangarde, 1995) 

Assigning Professionally Trained Manpower

• Planning is a specialized task that requires technical skills, information, and a database. People’s representatives in a democracy may not possess these qualifications as they are elected for a short period. In contrast, the bureaucracy is permanent and has extensive field experience and knowledge. Most of the relevant information is stored in official records, which are managed by the bureaucracy.
• Therefore, it is crucial in a democracy toassign professionally trained personnel to assist people’s representatives in planning, making the representatives subordinate to the professionals. This creates a dilemma because representatives are held responsible for formulating and implementing local plans, while the local bureaucracy remains in a position of authority. Historically, local government was part of district administration and was only later made a separate entity, but it is still viewed as an offshoot of district administration. Local government faces strong competition from district administration.
• The 73rd and 74th Amendment Acts and various state government acts have not improved the situation by assigning trained personnel to local bodies or bringing local bureaucracy under popular control. As a result, these amendments have not fulfilled the requirements for decentralized planning.

Devising Effective Coordination Mechanism

Multi-level planning is crucial for decentralized planning, but without proper coordination, it can lead to the misuse and wastage of scarce resources. Therefore, creating effective inter-linkages among plans formulated at different levels is essential. The 74th Amendment Act took a significant step in this direction by providing for the establishment of District Planning Committees (DPCs). These committees are tasked with coordinating the plans developed by various tiers of local bodies in both urban and rural areas.

Role of District Planning Committees

• Article 243ZD of the 74th Amendment Act mandates the setting up of DPCs in every district.
• These committees consist of elected representatives from both urban and rural areas and are responsible for preparing a composite plan for the entire district.

Current Status and Challenges

• Despite the provision, the implementation of DPCs has been lacking. Many states have yet to constitute these committees even years after the 74th Amendment Act.
• Some states have set up DPCs formally but have not made them operational. For instance, Andhra Pradesh has not established DPCs at all.
• While states like Kerala and West Bengal have made progress in decentralizing planning, the delay in other states limits the role of DPCs as instruments of decentralized planning.

Example of Karnataka

• In Karnataka, where panchayati raj institutions had previously set an example of decentralized planning under the 1985 Act, the DPCs are not functioning effectively.

Gujarat State Panchayati Raj Act

• Interestingly, the provision for constituting DPCs is not included in the Gujarat State Panchayati Raj Act, highlighting the inconsistencies in implementing the 74th Amendment Act across different states.

People’s Participation

People’s participation is crucial for the success of decentralized planning. It involves the direct involvement of people in both the formulation and implementation of plans. The importance of people’s participation was emphasized in the fifth five-year plan.

Gram Sabhas are considered the most effective system for securing people’s participation in decentralized planning. A Gram Sabha is a political institution at the village level, consisting of all registered voters in the area of the Panchayat.

• The 73rd Constitutional Amendment Act gave statutory recognition to the Gram Sabha, empowering it to exercise powers and perform functions as specified by State Acts.

• The Gram Sabha is unique as it operates direct democracy, allowing all citizens of a village to participate in decision-making, planning, and oversight of village activities.

• It serves as a forum for collective thinking, planning, and decision-making, aiming to uplift women and marginalized communities.

• The Gram Sabha acts as a watchdog of democracy at the grassroots level, ensuring transparency and accountability in the Panchayat’s actions.

• The 73rd Amendment Act aimed to strengthen and revitalize Panchayati Raj bodies to meet the needs of rural populations.

• Decentralization is seen as a vital mechanism for making democracy more representative and responsive by involving those most affected by decisions in the decision-making process.

• Delegating powers to people at the grassroots level is essential for linking effective administration with participation.

• Post-independence, the focus of governance shifted from regulatory to welfare administration, highlighting the need for operational decentralization in a country where the majority of people live in rural areas.

Functioning of Panchayati Raj Institutions (PRIs) in Various States After the 73rd Amendment

All states completed fresh legislation to strengthen Panchayati Raj Institutions (PRIs) by April 23, 1994, the day Panchayati Raj became part of the Indian Constitution. Some states even enacted their laws within 72 hours to meet the deadline. However, the 73rd Constitutional Amendment is not applicable to Jammu and Kashmir, Mizoram, Nagaland, and certain Scheduled Areas. It included a provision for future extension to Scheduled Areas, which was later enacted through the Panchayati Raj Extension to Scheduled Areas Act of 1996. Despite legislative enactments, the effectiveness of PRIs depends on their operationalization.

Andhra Pradesh

• The Andhra Pradesh Panchayati Raj Act was enacted on May 30, 1994.
• In Gram Panchayats, existing Sarpanchas were re-nominated as "in-charge Sarpanchas."
• Gram Panchayats in Andhra Pradesh are responsible for 12 obligatory functions and 27 optional functions, in addition to 29 subjects mentioned in Schedule I of the Act, which mirrors the Eleventh Schedule.
• Mandal Parishads must perform functions specified in Schedule I of the Act, along with additional functions under four broad categories: Community Development, Animal Husbandry and Fisheries, Agriculture, and Health and Rural Sanitation.
• Despite holding elections for Panchayati Raj bodies, powers, functions, and financial resources were not transferred to PRIs to the desired extent.
• The State Assembly amended the Act to require depositing funds received by Panchayats under the Jawahar Rozgar Yojana (JRY) and the Employment Assurance Scheme (EAS) in nationalized banks, cooperative banks, or post offices.

Bihar

• Although the Bihar Panchayati Raj Act came into force on August 6, 1993, elections for all three tiers of PRIs have not been conducted.
• The Central Government's threat to stop rural development funds for not holding elections on time has not been effective.
• The provision for reservation of seats was used to create vote banks for the State Assembly election.

Gujarat

The Gujarat Panchayati Raj Act came into effect on August 26, 1993, and elections for local bodies were held in May-June 1995. However, the autonomy of local bodies like Panchayats in Gujarat has been undermined by the increasing influence of MLAs and MPs, especially in the context of coalition governments. MLAs, by threatening to switch alliances, exert significant control over the Chief Minister and influence the activities of Panchayats even after the 73rd Amendment Act.

• Decentralization and Development: The decentralization process in Gujarat transferred all developmental activities to the Panchayati Raj Institutions (PRIs). However, funding remains under government control, and district bodies have limited say in fund allocations.
• Powers and Functions: The state government has delegated extensive powers and functions to the PRIs, including the District Panchayat, Taluk Panchayat, and Gram Panchayat. The Gram Panchayat can impose around 20 different taxes and fees, while the Taluk Panchayat can increase the taxation rates of Gram Panchayats.

Haryana

• Elections and Delegation of Powers: In Haryana, elections for all three tiers of Panchayati Raj were conducted in December-January 1994-95. The State Government has delegated more powers to the PRIs, allowing them to control and inspect schemes and programs launched by various departments, including food and supplies, education, public health, women and child welfare, agriculture, horticulture, animal husbandry, forests, and Panchayat Department schemes.
• Transparency and Accountability: Records of the PRIs are accessible to all voters and members of the Gram Sabha, promoting transparency. Gram Panchayats provide details of income and expenditure on various schemes through a board called ‘Vikas Patt’ displayed at each Panchayat, enhancing accountability.

Karnataka

• Early Legislation and Elections: Karnataka was the first state to pass new legislation on April 7, 1993, which became effective on April 30, 1993. Gram Panchayat elections were held on a non-party basis on December 29, 1993, with significant representation of women (43%) and SC/STs (32%).
• Review and Reforms: The Nayak Committee was appointed to address issues such as a weak gram Sabha, bureaucratic dominance, devolution of powers, and the need for Nyaya Panchayats. The committee’s recommendations led to the 3rd Amendment to the Act of 1993, moving towards the spirit of self-government as envisioned in the 73rd Amendment.
• Anti-Corruption Measures and Future Plans: The Government of Karnataka is working to curb corruption by bringing elected chairpersons under the Lokayukt’s purview. There are also plans to introduce a bill on Nyaya Panchayats and ensure the effective operation of District Planning Committees for genuine decentralized planning.

Kerala

•   In Kerala, the new Panchayati Raj system started on September 30, 1995.  

•   Each tier of the Panchayati Raj is independent and has its own exclusive functions, although there is a link between them through ex-officio membership.  

•   The People’s Campaign for the Ninth Plan was launched on August 17, 1996, aiming to involve people in all stages of development planning through local bodies.  

•   This campaign marked the beginning of a new development culture in Kerala, fostering unity and a heightened awareness of development issues among the people.  

•   The State Planning Board established new norms for distributing Plan funds to local bodies, with block and gram panchayats receiving a weighted allocation based on population.  

•   PRIs in Kerala are now in a stronger position compared to previous years, benefiting from constitutional protection and ample financial resources.  

Madhya Pradesh

•   Madhya Pradesh was the first state to conduct elections at all levels of Panchayati Raj under the new constitutional provisions, with elections held in May-June 1994.  

•   The elected Panchayats began their work in August 1994, and this day was celebrated as 'Adhikar Divas' to mark the transfer of power to the elected representatives.  

•   Initially, 23 out of 29 subjects were transferred to the PRIs, with the remaining subjects still under the concerned departments.  

•   The state government faced challenges in channeling funds beyond what it received from the center for various schemes, despite setting up the State Finance Commission (SFC).  

•   There were also concerns about the bureaucracy undermining the powers of the elected panchayats.  

Maharashtra

•   In Maharashtra, elections for the three tiers of Panchayati Raj Institutions (PRIs) were completed in September 1995.  

•   The state government changed the terms of Chairpersons of Zilla Parishads and Panchayat Samities from five years to one year.  

•   Out of 29 Zila Parishads, ten were reserved for various categories of people decided by a draw of lots.  

•   The Thane Zilla Parishad initiated an action program to activate the gram sabha, which received a positive response, especially in tribal areas.  

•   The Zilla Parishad also planned to enhance public participation in development works to ensure greater transparency and accountability in the functioning of Panchayats.  

Orissa

Reservation for Women. Orissa was the first state to implement 33% reservation for women in Panchayati Raj institutions, with 2,500 representatives in Panchayats.

• Orissa Gram Panchayat Act. This Act includes a unique provision where if the Gram Panchayat Sarpanch is not a woman, the Naib-Sarpanch position must go to a woman.
• Socio-Economic Development. Panchayats in Orissa are playing an effective role in socio-economic development, and their role is being publicized through various means like films, photographs, and group discussions.
• Concerns Over Powers. In October 1997, Presidents and Vice-Presidents of over 20 Zila Parishads expressed concern about the state government’s failure to transfer powers as per the 73rd Amendment.
• Autonomous Functioning. In early 1998, the state government directed district collectors to ensure the autonomous functioning of Panchayat institutions.
• Issues in Panchayat Functioning. It was observed that Sarpanchas were not informing people about ‘palli sabhas’ and ‘gram sabhas’ meetings, which were being called without prior notice and not held regularly.
• Effective Gram Panchayats. Some Gram Panchayats, like Ghanantri, Kotapeta, and Padmapur, are functioning effectively and have been awarded for their good performance in various development areas.

Punjab
Sarpanchas and Chairpersons in Punjab:

• Economic Background: Most Sarpanchas, Chairpersons, and Vice-Chairpersons come from relatively well-off families, with leading agricultural families dominating these positions.
• Family Connections: Many positions are filled by the relatives of state-level leaders, including sons, brothers, and nephews.
• SC Majority Villages: Surprisingly, in villages where Scheduled Castes (SCs) are in the majority, land-owning Jat Sikhs have been elected as Sarpanchas.

Election Overview:

• Dissolution and Re-Election: The State Government dissolved all panchayats, and elections for all three tiers of Panchayati Raj Institutions (PRIs) were held in June-July 1998.
• Non-Party Basis: Elections were conducted on a non-party basis, but various political parties fielded candidates as independents.
• Women’s Representation:. record 4,124 women were elected as Sarpanchas in the 1998 panchayat elections.

Rajasthan

• Election and Establishment: Elections for the three tiers of Panchayati Raj Institutions (PRIs) in Rajasthan were held in 1995 under the supervision of the State Election Commission (SEC), and these institutions became operational after March 1995.
• Financial Transfer: The State Government transferred Rs. 164 crores to Panchayat Samitis for various development works, shifting the expenditure responsibility from concerned departments to the Samitis.
• Decision-Making Authority: Panchayat Samitis now have the authority to spend money on works identified in meetings of elected representatives, although supervisory powers were previously held by Zila Parishads.
• Fund Utilization: Panchayat Samitis and village Panchayats were authorized to utilize funds for development, with the Zila Parishads having supervisory powers earlier.

Tamil Nadu

• Implementation of New System: The new Panchayati Raj System in Tamil Nadu was implemented in April 1994, with elections conducted in 1996.
• Types of Functions: Panchayats in Tamil Nadu are assigned mandatory, discretionary functions, and those entrusted by government notification.
• Nature of PRIs: PRIs in Tamil Nadu function more as welfare institutions rather than village republics with self-rule powers.
• Innovative Funding Mode: The Tamil Nadu Government introduced an innovative funding mode to assist financially weak rural local bodies, providing outright grants from the equalization fund to these panchayats.

Uttar Pradesh

• In Uttar Pradesh, the legislative process for Panchayati Raj Institutions (PRIs) was finalized in April 1994, and elections for all three tiers of PRIs were held in April 1995. Following the recommendation of the Tenth Finance Commission, gram panchayats were allocated Rs. 189.8 crore for the construction of roads and drainage. The State Government also decided to decentralize administration, granting village panchayats direct control over officials in their jurisdictions. These panchayats would have the authority to appoint and supervise officials from ten departments, including primary education, healthcare, and rural development.

West Bengal

• Background: In West Bengal, Panchayat elections were conducted in May 1993, resulting in a significant victory for the left front, particularly the CPI(M). An institutional innovation known as the Gram Sansad replaced the Gram Sabha to enhance people’s participation in local governance.
• Gram Sansad: The Gram Sansad is empowered to hold annual or half-yearly meetings and address various matters related to the Gram Panchayat. This change has contributed to making Panchayats in West Bengal more responsive and effective in identifying and resolving local issues, ensuring social justice, and improving the quality of life for rural residents.
• District Council: The establishment of the District Council in West Bengal has further strengthened the Panchayati Raj system, enabling better local governance and problem-solving.
• 1998 Elections: After completing their five-year term, elections for all three tiers of PRIs were held on May 28, 1998, for the first time conducted by the State Election Commission (SEC).
• 1998-99 State Budget: The State Budget for 1998-99 proposed expanding Panchayat functions in education, health, and rural electrification. It included plans to establish 1,000 new primary educational centers and transfer control of new primary health centers to Panchayat Samitis. Additionally, a corporation would be set up to coordinate rural electrification programs with Panchayats.
• The functioning of the new Panchayati Raj system shows that while the legislative processes have been completed in almost all states, there are significant variations at the operational level. Elections to all three tiers of the Panchayati Raj Institutions (PRIs) have been conducted in all states except Bihar, where elections have faced delays for various reasons.
• In some states like Karnataka, Punjab, and West Bengal, PRIs have been established for the second time either due to the completion of their tenure or dissolution. However, the bureaucracy still exerts significant control over local autonomy, with a few exceptions. There is hope that PRIs will become deeply rooted in rural communities and serve as genuine agents of change and development in the countryside. The primary concern is the potential interference from state governments.
• Regarding the assignment of powers and functions to each tier of PRIs, it is observed that these vary from state to state. Experiences so far indicate that at the district level, various line departments and agencies implement programs and functions under the supervision and control of the District Collector or District Magistrate, while PRIs have to take a backseat.

It is evident that the scope of activity for each tier under each item has not been clearly defined and is left to the discretion of the state government. In the evolving scenario, Panchayati Raj needs to focus on development, and PRIs should be granted a significant degree of autonomy.

Functioning of Local Governance After 73rd and 74th Constitutional Amendment: Observations

The functioning of Panchayati Raj Institutions (PRIs) after the 73rd and 74th Constitutional Amendments has revealed several significant observations. There exists a notable gap between the theoretical framework and the practical implementation of these amendments.

• Asset Utilization: While assets have been created under various rural development programs, their utilization remains suboptimal. For instance, primary schools have been constructed, but attendance is lacking due to insufficient staff or lack of students.
• Community Schemes: Community-driven schemes have largely failed, as there is an expectation for the Sarpanch (village head) to handle all responsibilities, rather than fostering community participation.
• Beneficiary Selection: The selection of beneficiaries for rural development programs is not being conducted properly. It should be based on the Baseline Survey (BLS), which identifies families not listed in the records at the Block and District Rural Development Agency (DRDA) offices. Currently, tax payers are often included, while those in need are overlooked.
• Loan and Subsidy Disbursement: There are issues with the disbursement of loans and subsidies, as beneficiaries do not receive the full amount promised.
• Regularity of Meetings: Meetings of Panchayati Raj bodies are held regularly; however, Gram Sabha meetings (village assembly) are not consistently conducted across districts, and when they are, attendance from adult members is low.
• Devolution of Powers: The 73rd Amendment designated 29 subjects to Panchayati Raj institutions. However, it has been observed that very few of these subjects have been meaningfully transferred to the Panchayats, and those that have are often supervisory in nature rather than empowering.
• Interference in DPC: Former Sarpanchas, with the support of local MLAs (Members of Legislative Assembly), attempt to interfere in the functioning of the District Planning Committee (DPC), undermining the authority of current representatives, particularly women Sarpanchas.
• Awareness of DPC Structure: There is a lack of awareness among beneficiaries, people’s representatives, and some officials regarding the constitution, composition, and structure of the District Planning Committee.
• Control by MPs and MLAs: Members of Parliament (MPs) and MLAs continue to exert control over Panchayati Raj Institutions, directing development work in their areas and neglecting remote and needy villages. Their influence extends to grant distribution, favoring Panchayats that align with their interests.
• Dominance of Bureaucracy: The dominance of MLAs, MPs, and bureaucrats, particularly Block Development Officers (BDOs) and Panchayat Raj Officers, undermines the authority of Gram Panchayat representatives, even those who are articulate and elected.

Former Sarpanchs, with the assistance of local MLAs, attempt to interfere in the activities and operations of current Sarpanchs, particularly targeting women Sarpanchs.

Regarding the functioning of the DPC, it was observed that most beneficiaries, people’s representatives, and even some officials are unaware of the DPC’s composition, constitution, and structure.

In terms of women’s participation in panchayat affairs, it was found that the majority still act on the advice of male family members.

Conclusion

• Panchayati Raj and Local Self Government Institutions are crucial for strengthening the roots of democracy in India. The 73rd and 74th Constitutional Amendments were revolutionary steps that aimed to decentralize power and improve governance at the grassroots level. Despite facing challenges like illiteracy, lack of training, and outdated systems, there is a growing awareness and demand for better governance among rural communities. Regular elections to Panchayati Raj Institutions (PRIs) are expected to enhance political consciousness and empower weaker sections of society.
• However, local governance has not been entirely successful due to various factors, including the gap between public expectations and institutional performance, mismatched financial resources, and weaknesses in the functioning of Gram Sabhas. The evolving political culture in India also impacts the effectiveness of local bodies.
• For democracy to thrive, it is essential to empower local bodies, improve their attitude and systems, and ensure better governance. Local democracy holds significant meaning for ordinary citizens, especially in a country with a large unlettered population. Panchayati Raj and participative democracy have the potential to bring about meaningful change and should be seen as vital for establishing a democratic society. With continued efforts and improvements, Indian democracy could become a unique model for the world.