UPSC Mains Answer PYQ 2019: Public Administration Paper 2 (Section- B) | Public Administration Optional for UPSC (Notes) PDF Download

Q.5. Answer the following Questions in about 150 words each: (10 x 5=50)

The concept of deliberative democracy emphasizes the importance of open and inclusive discussions, reasoned deliberation, and collective decision-making in the democratic process. Gram Sabha, a forum for direct democracy in India, is an essential part of the Panchayati Raj System where all adult members of a village come together to discuss and decide upon various issues concerning the village. However, several impediments have been identified that hinder the effective functioning of Gram Sabha and, therefore, challenge the realization of deliberative democracy at the grassroots level.

• Lack of Awareness and Participation: One of the primary challenges faced by Gram Sabha is the low level of awareness and participation among the villagers. Many people are not aware of the importance, role, and functions of Gram Sabha. The attendance in the meetings is often low, which affects the quality of deliberation and decision-making.
• Dominance of Local Elites: The Gram Sabha meetings are often dominated by local elites like landlords, politicians, and influential persons who manipulate the discussions and decisions to serve their interests. This results in the marginalization of weaker sections like women, scheduled castes, and scheduled tribes, who are unable to voice their concerns and participate effectively in the deliberative process.
• Political Interference: The local political leaders often interfere in the functioning of Gram Sabha, thus undermining its autonomy and democratic functioning. The political representatives may influence the agenda, discussions, and decisions in the Gram Sabha to further their political interests.
• Ineffective Leadership: The Sarpanch (village head) and other Panchayat functionaries play a crucial role in the functioning of Gram Sabha. However, they often lack the necessary leadership skills, administrative capabilities, and commitment to facilitate effective deliberation and decision-making in the Gram Sabha meetings.
• Limited Resources and Capacity: The Gram Sabha is often constrained by limited financial and human resources, as well as inadequate infrastructure, which affects its capacity to function effectively. This also limits the scope for undertaking various developmental activities and implementing government schemes at the village level.
• Lack of Transparency and Accountability: The Gram Sabha often suffers from a lack of transparency in its decision-making process and financial management. This leads to corruption, embezzlement of funds, and other malpractices that go unchecked due to the absence of effective monitoring and accountability mechanisms.
• Social and Cultural Factors: The traditional social hierarchies, gender inequalities, and cultural practices prevalent in rural India often act as barriers to the effective functioning of Gram Sabha. Women, lower castes, and marginalized groups often face discrimination, violence, and social exclusion, which prevent them from participating actively in the deliberative process.
• Legal and Institutional Challenges: The legal framework, as well as the institutional support for the functioning of Gram Sabha, is often inadequate. The State governments are required to make specific provisions for the functioning of Gram Sabha, but these provisions vary across states, leading to inconsistencies and ambiguities. Furthermore, the implementation of these provisions is often weak, leading to the ineffective functioning of Gram Sabha.

To conclude, the realization of deliberative democracy at the grassroots level through the effective functioning of Gram Sabha faces multiple challenges. To overcome these impediments, it is essential to focus on awareness generation, capacity building, transparency, accountability, and institutional reforms that strengthen the Gram Sabha as a forum for inclusive and participatory decision-making.

(b) “The RTI has started its journey, but is far from its destination.” In the view of the statement, examine the present status of the RTI movement.    (10 Marks)

The Right to Information (RTI) movement in India has emerged as a significant tool for enhancing transparency, accountability, and participation in the functioning of the government. The Right to Information Act, 2005, has empowered citizens to seek information from public authorities, thereby promoting transparency in governance. However, despite its successes, the RTI movement faces several challenges and has a long way to go in realizing its full potential.

Present status of the RTI movement:

• Increased awareness and usage: The RTI Act has been successful in creating awareness among citizens about their right to seek information. The usage of the act has grown exponentially since its inception, and millions of applications are filed every year. This has brought about a culture of openness and transparency in the functioning of the government.
• Empowerment of citizens: The RTI movement has empowered citizens to hold the government accountable for its actions, decisions, and expenditures. This has led to the exposure of several scams and corruption cases, such as the Adarsh Housing Society scam, the Commonwealth Games scam, and the 2G spectrum allocation scam.
• Improved service delivery: The RTI movement has played a crucial role in improving the delivery of public services by making the concerned authorities more accountable and responsive. For instance, the usage of RTI has helped in ensuring timely disbursal of social security benefits, such as pensions and scholarships.
• Strengthening of democratic institutions: The RTI movement has contributed to the strengthening of democratic institutions by encouraging transparency and accountability in their functioning. This has led to better governance and improved decision-making processes.

However, the RTI movement faces several challenges that need to be addressed to realize its full potential:

• Lack of awareness among citizens: Despite the increased usage of the RTI Act, a significant proportion of the population remains unaware of their rights under the act. This is particularly true for rural areas and marginalized sections of the society.
• Non-compliance by public authorities: Many public authorities often do not comply with the provisions of the RTI Act, such as maintaining records and proactively disclosing information. This hampers the effectiveness of the act in promoting transparency and accountability.
• Delay in the disposal of applications: Due to the large number of applications filed under the RTI Act, there is often a considerable delay in the disposal of applications. This undermines the objective of the act in providing timely information to the citizens.
• Harassment of RTI activists: There have been several instances of harassment and violence against RTI activists, which has a chilling effect on the usage of the act. This highlights the need for better protection mechanisms for RTI activists.
• Weaknesses in appellate authorities: The effectiveness of the RTI Act is also hampered by the weaknesses in the functioning of the appellate authorities, such as the Central Information Commission and the State Information Commissions. These authorities often suffer from a lack of resources, infrastructure, and manpower, leading to delays in the disposal of appeals and complaints.

In conclusion, while the RTI movement has made significant progress in promoting transparency and accountability in the functioning of the government, several challenges remain to be addressed. To ensure that the RTI movement reaches its full potential, there is a need for increased awareness among citizens, better compliance by public authorities, timely disposal of applications, protection of RTI activists, and strengthening of appellate authorities. This would further enable the RTI movement to contribute to better governance and improved service delivery, thereby ensuring the realization of its ultimate objective of empowering citizens and strengthening democratic institutions.

(c) The concept of new localism arrangement may defeat the very purpose of local self-governance. Do you agree? Justify.    (10 Marks)

• I partially agree with the statement that the concept of new localism arrangement may defeat the very purpose of local self-governance. New localism refers to the devolution of powers, responsibilities, and resources from higher levels of government to local authorities. It aims to give local communities a greater say in decision-making processes and allow them to tailor solutions to their specific needs. However, the impact of new localism on local self-governance depends on how it is implemented and the context in which it operates.
• On one hand, new localism can enhance local self-governance by empowering communities and local authorities. It can lead to more responsive, accountable, and efficient local governance, as decisions are made closer to the communities they affect. For example, in the United Kingdom, the Localism Act 2011 aimed to devolve powers to local authorities and communities, allowing them to make decisions on issues such as housing, planning, and service delivery. This has led to increased community involvement in decision-making processes and a more tailored approach to local needs.
• However, on the other hand, new localism can also undermine local self-governance, especially if it is implemented without adequate resources, capacity building, and support for local authorities. For example, in India, the 73rd and 74th constitutional amendments aimed to strengthen local self-governance by devolving powers to Panchayati Raj Institutions (PRIs) and Urban Local Bodies (ULBs). However, the implementation of decentralization in India has varied across states, and in many cases, PRIs and ULBs struggle with inadequate financial and human resources, lack of capacity, and limited autonomy from higher levels of government. This has sometimes led to weak local governance and a failure to address local needs effectively.
• Moreover, new localism can exacerbate existing inequalities and power dynamics within communities. If marginalized groups, such as women, minorities, and the poor, are not adequately represented in decision-making processes, their needs and interests may be overlooked. This can perpetuate social and economic disparities and undermine the inclusive nature of local self-governance.

In conclusion, the impact of new localism on local self-governance depends on how it is implemented and the context in which it operates. While new localism can enhance local self-governance by devolving powers and responsibilities to local communities, it can also undermine it if not accompanied by adequate resources, capacity building, and support for local authorities. Furthermore, new localism must be implemented in a way that promotes inclusive decision-making and addresses existing power dynamics within communities to ensure that the needs and interests of all citizens are taken into account.

(d) Effective ‘Performance Management System’ needs to precede ‘taking deadwood out’ from bureaucracy. Comment.    (10 Marks)

An effective Performance Management System (PMS) is essential for ensuring the smooth functioning of any organization, including the bureaucracy. It helps in setting performance standards, monitoring progress, providing feedback, and identifying areas of improvement. In the context of bureaucracy, it is particularly important to have a robust PMS in place before considering the removal of 'deadwood' or non-performing personnel.

• Objective assessment: A well-designed PMS will help in assessing the performance of bureaucrats objectively, based on Key Performance Indicators (KPIs) and targets. This will ensure that the decision to remove non-performing personnel is backed by evidence and not influenced by personal biases or subjective opinions. For instance, in the case of the Indian Administrative Services (IAS) officers, the 360-degree appraisal system has been introduced to provide a comprehensive assessment of their performance from multiple perspectives.
• Identifying training needs: PMS helps in identifying gaps in the skills and competencies of bureaucrats, which can be addressed through targeted capacity building and training interventions. This will enable underperforming personnel to enhance their capabilities and contribute more effectively to organizational goals. For example, the Department of Personnel and Training (DoPT) in India conducts various training programs for civil servants to improve their domain knowledge, leadership, and management skills.
• Motivation and employee engagement: An efficient PMS can also serve as a tool for motivating and engaging employees by recognizing and rewarding their good performance. This will encourage bureaucrats to perform better and contribute to the overall effectiveness of the bureaucracy. Moreover, it will also help in identifying high-performing personnel who can be groomed for leadership roles and higher responsibilities.
• Transparency and accountability: A robust PMS ensures transparency and accountability in the performance evaluation process, which is crucial for maintaining the credibility and integrity of the bureaucracy. It will also help in building public trust and confidence in the government machinery, by demonstrating that non-performers are identified and appropriate action is taken against them.
• Strengthening internal controls: Before removing non-performing personnel, it is essential to have strong internal controls in place to prevent any misuse of power or victimization. An effective PMS will act as a safeguard mechanism, ensuring that the process of removing 'deadwood' is carried out fairly and justly, based on objective criteria and performance data.

In conclusion, an effective Performance Management System is crucial for ensuring the efficiency and effectiveness of the bureaucracy. It helps in objectively assessing the performance of bureaucrats, identifying gaps in their skills, motivating them to perform better, and ensuring transparency and accountability in the system. Therefore, a robust PMS must precede the process of removing non-performing personnel or 'deadwood' from the bureaucracy. This will ensure that the decision to remove such personnel is evidence-based, fair, and does not compromise the integrity of the system.

(e) All weather rural connectivity scheme to even unconnected rural habitations has the potential to transform the rural economy. Do you agree? Justify.    (10 Marks)

Yes, I agree that an all-weather rural connectivity scheme to even unconnected rural habitations has the potential to transform the rural economy. The following justifications can be provided for the same:

• Enhanced agricultural productivity: Better connectivity with the help of all-weather roads would allow farmers to access markets more easily and quickly, which would result in better price realization for their produce. This would further encourage farmers to adopt modern farming techniques and high-yielding crop varieties, leading to increased agricultural productivity. For example, the Pradhan Mantri Gram Sadak Yojana (PMGSY) has significantly improved rural connectivity in India, leading to increased agricultural productivity and income for farmers.
• Employment generation: Improved connectivity would lead to the growth of rural industries and businesses, thereby creating more employment opportunities for rural youth. This would help in reducing the migration of rural youth to urban areas in search of jobs. For instance, the rural road connectivity project in Uttar Pradesh has generated direct and indirect employment for the local population.
• Access to essential services: Better connectivity would provide rural populations with easier access to essential services like healthcare, education, and banking. This would lead to improved health and education outcomes and financial inclusion in rural areas. For example, the construction of rural roads in remote areas of Himachal Pradesh has facilitated the setting up of health centers and schools in these areas.
• Social integration and empowerment: Improved connectivity can help in the social integration of rural areas, as it enables people to access information, resources, and opportunities, which would lead to their empowerment. It also fosters a sense of belonging and reduces social exclusion. For instance, the construction of rural roads in tribal areas of Chhattisgarh has helped in the social integration of these communities.
• Disaster management and resilience: All-weather connectivity can play a crucial role in enhancing the disaster management capabilities of rural areas. It ensures that relief and rescue operations can be carried out efficiently during natural disasters, thereby reducing the loss of life and property. For example, during the floods in Assam, the improved rural road network played a crucial role in carrying out relief operations.

In conclusion, an all-weather rural connectivity scheme has the potential to transform the rural economy by improving agricultural productivity, generating employment, providing access to essential services, fostering social integration, and enhancing disaster management capabilities. Thus, it is essential for the government to focus on providing all-weather connectivity to unconnected rural habitations to ensure holistic and sustainable rural development.

Q.6.(a) The office of the District Collector has merely become a bureau for funnelling government schemes, collecting statistics and an officer on attendance for unending VIP duties. Critically examine its role in the light of the recommendations of the Second Administrative Reforms Commission.    (20 Marks)

• The District Collector, also known as the Deputy Commissioner, is a key functionary in the administrative setup of a district in India. Traditionally, the role of the District Collector has been to maintain law and order, oversee revenue collection and land records management, and implement various government schemes and programs at the district level. The Second Administrative Reforms Commission (ARC), in its report, has highlighted several issues related to the functioning of the District Collector and has made a number of recommendations for reforms.
• The ARC report identifies several challenges faced by the District Collector and points out that the office has become a mere conduit for implementing government schemes, collecting statistics, and attending to VIP duties. This has led to a dilution of the focus on core functions such as revenue administration, land records management, and maintenance of law and order.

Some of the key issues highlighted in the ARC report include:

• Overburdened with multiple responsibilities: The District Collector is responsible for coordinating the efforts of various departments at the district level, which often results in a lack of focus on core functions. Moreover, the increasing workload due to the implementation of new government schemes and the need to attend to VIP duties has further added to the burden.
• Lack of specialization: Given the wide range of responsibilities, the District Collector is often required to handle functions for which they may not have the necessary expertise or experience. This leads to inefficiencies in the functioning of the district administration.
• Fragmentation of authority: The ARC report notes that the District Collector's authority has been gradually eroded over the years due to the creation of various new statutory bodies and authorities at the district level. This has resulted in a fragmentation of authority and has weakened the Collector's role as the nodal officer for coordinating the efforts of all departments at the district level.

In light of these issues, the Second Administrative Reforms Commission has made several recommendations to strengthen the role of the District Collector:

• Streamlining of responsibilities: The ARC report recommends that the role of the District Collector should be redefined to focus on core functions such as revenue administration, land records management, and maintenance of law and order. The responsibility for implementing various government schemes should be delegated to specialized agencies and departments.
• Strengthening the capacity of the Collector's office: The report suggests that the capacity of the office of the District Collector should be enhanced through better training, use of technology, and the creation of specialized units to handle specific tasks.
• Re-establishing the authority of the Collector: The ARC recommends that the authority of the District Collector should be re-established by giving them greater control over the various departments and agencies operating at the district level. This would enable the Collector to effectively coordinate the efforts of all departments and ensure smooth functioning of the district administration.
• Reforms in recruitment and training: The report suggests that the recruitment and training of District Collectors should be reformed to ensure that they have the necessary skills and expertise to handle the wide range of responsibilities entrusted to them.

In conclusion, the role of the District Collector in the present administrative setup has become diluted, with a focus on non-core functions. The recommendations of the Second Administrative Reforms Commission, if implemented effectively, can help in streamlining the responsibilities of the District Collector and enable them to focus on their core functions, thereby ensuring better governance and administration at the district level.

(b) Minimal accountability being the dominant norm in the political system, the Lokpal can only be an ideal institution with limited effectiveness. Explain.    (20 Marks)

The Lokpal is an anti-corruption institution that has been proposed in India to address the issue of corruption in the political system. It is supposed to act as an independent body to investigate corruption cases against public officials and politicians, thereby ensuring transparency and accountability in the system. However, given the prevailing political culture and the dominance of minimal accountability in India, the effectiveness of the Lokpal as an ideal institution may be limited. This can be explained through the following points:

• Political Interference: The Lokpal's effectiveness can be hindered by political interference in its functioning. Since the Lokpal is responsible for investigating corruption cases against politicians, there may be attempts to influence the investigation process or manipulate the outcomes. Moreover, the appointment process of the Lokpal members may also be politicized, raising questions on the independence and impartiality of the institution.
• Lack of Adequate Powers: The Lokpal, in its current form, may not have adequate powers to ensure effective action against corruption. For instance, it cannot prosecute the accused directly and has to rely on the government agencies for the same. This may lead to delays in prosecution and may also be influenced by political factors, thereby limiting the effectiveness of the Lokpal in dealing with corruption cases.
• Limited Scope: The Lokpal's jurisdiction extends only to public officials and politicians, leaving out a large section of private sector entities and individuals that may be involved in corrupt practices. This limited scope of the Lokpal may not be sufficient to address the issue of corruption in its entirety.
• Structural Limitations: The Lokpal, as a single institution, may not have the required resources and manpower to deal with the vast number of corruption cases in the country. This may lead to a backlog of cases, undermining the effectiveness of the institution.
• Prevailing Norms of Minimal Accountability: The political system in India is characterized by minimal accountability, where politicians and public officials are not held accountable for their actions effectively. This is evident from the lack of transparency in political funding, the prevalence of criminalization of politics, and the weak enforcement of existing anti-corruption laws. In such a scenario, the Lokpal, as an institution, may be unable to bring about a significant change in the culture of minimal accountability.

Examples from other anti-corruption institutions:
(a) The Central Vigilance Commission (CVC) in India, which is another anti-corruption watchdog, has been criticized for its limited effectiveness due to political interference, inadequate powers, and resource constraints.
(b) The Anti-Corruption Commission in Bangladesh has also faced challenges in ensuring effective action against corruption due to political interference and a lack of adequate powers.

In conclusion, while the Lokpal can be considered an ideal institution to tackle corruption in India's political system, its effectiveness may be limited due to various factors such as political interference, inadequate powers, limited scope, structural limitations, and the prevailing norms of minimal accountability. To improve the effectiveness of the Lokpal, it is essential to address these challenges and ensure that the institution can function independently and with adequate powers to tackle corruption effectively.

(c) ‘Sevottam Scheme’ had great potential to reform service delivery, but opportunity is frittered away. Comment.    (10 Marks)

The Sevottam Scheme was introduced by the Indian government in 2006 as a quality management framework to improve public service delivery. The framework aimed at reforming the way public services are delivered to citizens by making them more citizen-centric, efficient, and transparent. The scheme emphasized three critical aspects of service delivery – Citizen's Charter, Grievance Redress Mechanism, and Service Delivery Capability.
Despite the potential to bring significant reforms in service delivery, the Sevottam Scheme has not achieved the desired outcomes. Several factors have contributed to the frittering away of this opportunity. These include:

• Lack of awareness and understanding: There is a lack of awareness and understanding about the Sevottam Scheme among the public servants and citizens. Many public servants are not adequately trained or sensitized towards the importance of the scheme and its objectives. As a result, they fail to implement the scheme effectively.
• Absence of strong accountability mechanisms: The Sevottam Scheme lacks strong accountability mechanisms to ensure that public servants adhere to the principles and guidelines of the scheme. There are no stringent penalties for non-compliance, which has led to a lack of seriousness in implementing the scheme.
• Bureaucratic resistance: The scheme faced resistance from the bureaucracy due to its emphasis on transparency and accountability. Many bureaucrats perceive the scheme as an additional burden on their existing workload, while others see it as a threat to their discretionary powers.
• Inadequate monitoring and evaluation: The monitoring and evaluation of the Sevottam Scheme have been weak, leading to a lack of data on the progress and impact of the scheme. This makes it difficult to assess the effectiveness of the scheme and identify areas that need improvement.
• Limited impact on ground: Although the scheme has been implemented in various government departments, its impact on the ground level has been limited. The quality of service delivery has not improved significantly in many cases, and citizens continue to face problems in accessing public services.

Despite these challenges, there have been some positive examples of the Sevottam Scheme's implementation. For instance, the Passport Seva Kendras (PSKs) have effectively implemented the scheme, resulting in significant improvements in passport service delivery. The introduction of online services, streamlined processes, and adherence to Citizen's Charter has made the passport issuance process more efficient and customer-friendly.

In conclusion, the Sevottam Scheme had great potential to reform service delivery in India. However, due to inadequate implementation, lack of awareness, bureaucratic resistance, and weak monitoring and evaluation mechanisms, the opportunity to bring about significant improvements in public service delivery has been frittered away. To revive the potential of the scheme, there is a need to address these challenges through effective training, sensitization, accountability mechanisms, and robust monitoring and evaluation systems.

Q.7.(a) The National Policy on Disaster Management envisages a paradigm shift from hitherto reactive post-disaster relief centric regime to more pro-active and enabling environment. Examine the responses of State Governments in this regard.    (20 Marks)

The National Policy on Disaster Management (NPDM) was adopted in India in 2009 to shift the focus of disaster management from a reactive post-disaster relief approach to a more proactive and preventive approach. This was done to minimize the loss of life, property, and the overall impact of disasters on communities. The policy emphasizes preparedness, prevention, and mitigation measures for effective disaster management. It also encourages the decentralization of disaster management functions to state and local levels.

State governments in India have been making efforts to align their disaster management policies and plans with the NPDM. Some of the key responses of state governments in this regard have been:

• Institutional Framework: Many state governments have established dedicated institutions for disaster management, such as the State Disaster Management Authority (SDMA) and District Disaster Management Authority (DDMA). These institutions are responsible for coordinating and implementing disaster management plans at the state and district levels, respectively.
• Capacity Building: State governments have been working on enhancing the capacity of various stakeholders, such as government officials, non-governmental organizations (NGOs), and community-based organizations (CBOs), to effectively respond to disasters. This includes organizing training programs and workshops on disaster management, developing training modules, and incorporating disaster management into the curriculum of schools and colleges.
• Preparedness and Mitigation Measures: Several state governments have initiated measures to improve preparedness and mitigation against disasters. Examples include the development of hazard-specific action plans, such as flood management plans, cyclone management plans, and drought management plans. Additionally, states have been investing in the construction of disaster-resilient infrastructure, early warning systems, and setting up emergency operation centers.
• Community-Based Disaster Management: Recognizing the importance of community involvement in disaster management, many state governments have been promoting community-based disaster management initiatives. For instance, Kerala has implemented a Community-Based Disaster Risk Reduction (CBDRR) program, which focuses on enhancing the capacity of local communities to manage disasters.
• Integration with Development Plans: State governments have been working towards integrating disaster risk reduction into development planning processes. This is done by conducting vulnerability assessments, hazard mapping, and incorporating disaster risk reduction measures into sector-specific policies and programs.

However, the implementation of the NPDM by state governments has not been uniform, and several challenges remain:

• Inadequate Financial Resources: State governments often face financial constraints in implementing disaster management programs and projects. The lack of dedicated funding for disaster management is a major challenge.
• Limited Technical Expertise: There is a shortage of trained and experienced personnel in the field of disaster management at the state and local levels. This limits the capacity of state governments to implement effective disaster management initiatives.
• Coordination Challenges: Effective disaster management requires coordination among various stakeholders, including different government departments, NGOs, and local communities. However, the lack of a coordinated approach among these stakeholders often hinders the implementation of disaster management plans.
• Inadequate Focus on Prevention and Mitigation: Despite the shift in policy focus towards prevention and mitigation, state governments often prioritize relief and response activities over prevention and mitigation measures. This is partly due to the pressure to provide immediate assistance in the aftermath of a disaster.

In conclusion, state governments in India have made significant strides in adopting a proactive approach to disaster management, in line with the NPDM. However, several challenges remain, and there is considerable scope for improvement in areas such as financial resources, technical expertise, coordination, and prioritization of prevention and mitigation measures. Addressing these challenges will be crucial for building disaster-resilient communities and reducing the impact of disasters on lives and livelihoods in India.

(b) Efforts to strengthen State Finance Commissions have faced apathy of State Governments over the years, which has also affected the successive Central Finance Commissions in recommending appropriate fiscal transfers to local bodies. Substantiate the answer with examples.    (20 Marks)

The State Finance Commissions (SFCs) were established as per the 73rd and 74th Constitutional Amendments in 1992 to strengthen the financial powers and devolution of funds to local bodies like Panchayati Raj Institutions (PRIs) and Urban Local Bodies (ULBs). SFCs are responsible for reviewing the financial position of local bodies and making recommendations on sharing and allocation of resources between the state and local governments. However, their functioning has faced several challenges due to the apathy of state governments.

• Delay in constituting SFCs: Many states have failed to constitute SFCs on time, leading to a delay in the submission of their reports. For example, the first SFC in Bihar was constituted in 2001, nine years after the constitutional amendment. Similarly, the second SFC in Uttar Pradesh was set up in 2005, with a delay of five years.
• Non-implementation of recommendations: Several state governments have not implemented the recommendations made by the SFCs. For instance, the first SFC of Rajasthan recommended a devolution of 40% of the state's own tax revenue to local bodies, but the state government did not accept this recommendation. The second SFC of Karnataka suggested a devolution of 33% of the state's own tax revenue to local bodies, but only 22% was devolved.
• Lack of coordination with Central Finance Commissions: The recommendations of SFCs are crucial for the Central Finance Commissions (CFCs) to make informed decisions regarding the fiscal transfers to local bodies. However, the lack of timely and comprehensive reports from SFCs has led to incomplete data and information for the CFCs. For example, the 14th CFC noted that only 16 out of 29 states had submitted their SFC reports.
• Inadequate resources and capacity: SFCs face resource constraints, which affect their functioning and quality of recommendations. They often lack adequate staff, infrastructure, and technical expertise to carry out their duties effectively. For example, the first SFC of Uttar Pradesh had only three members and a limited budget, which affected the quality of its report.
• Lack of autonomy: SFCs are often influenced by political considerations and are not given complete autonomy in their functioning. This has led to a lack of credibility and effectiveness in their recommendations. For instance, the first SFC of West Bengal had recommended an increase in property taxes, but the state government did not accept this recommendation due to political considerations.

The apathy of state governments towards SFCs has affected the fiscal devolution to local bodies and hampered their ability to provide basic services and infrastructure to the citizens. The successive Central Finance Commissions, like the 13th and 14th CFCs, have expressed concern over the inadequate attention given to the SFCs by the state governments. To strengthen the SFCs and enhance fiscal decentralization, it is essential for state governments to ensure timely constitution of SFCs, implementation of their recommendations, and provide them with adequate resources and autonomy.

(c) Accountability of regulatory bodies would address the problem of over-regulation and help make them truly facilitators. Analyze the present status of regulators and suggest measures to induce accountability in the mechanism.    (10 Marks)

The present status of regulators in India can be analyzed based on their performance, transparency, and accountability. Regulatory bodies like the Reserve Bank of India (RBI), Securities and Exchange Board of India (SEBI), Telecom Regulatory Authority of India (TRAI), and Central Electricity Regulatory Commission (CERC) play a crucial role in ensuring the smooth functioning of various sectors. However, there have been concerns about their accountability and the impact of over-regulation on businesses and the economy.

• Performance: The performance of regulatory bodies has been a mixed bag. While some regulators like RBI and SEBI have been successful in maintaining stability in their respective sectors, others like TRAI and CERC have faced criticism for their inability to address issues related to pricing, competition, and consumer grievances.
• Transparency: The level of transparency in the functioning of regulatory bodies has improved over the years. However, more needs to be done to ensure that their decisions are based on well-defined criteria and that stakeholders are informed about the rationale behind regulatory actions. This would help build credibility and trust in the system.
• Accountability: The issue of accountability remains a significant concern in the functioning of regulatory bodies. There have been instances where regulators have been accused of being influenced by political or industry pressures, leading to a loss of public faith in the system.

Measures to induce accountability in the mechanism:

• Clear Mandate: Regulatory bodies should have a clear and well-defined mandate to avoid any ambiguity in their functioning. This will also help in setting clear performance benchmarks and expectations.
• Autonomy: To ensure that regulatory bodies can function independently and without any undue influence, they should be granted autonomy in terms of financial, administrative, and operational aspects.
• Performance Evaluation: Regular performance evaluations of regulatory bodies should be conducted by an independent agency. This will help in assessing their effectiveness and identifying areas of improvement.
• Transparent Decision-Making: To build trust and credibility, regulatory bodies should adopt transparent decision-making processes. All decisions should be based on well-defined criteria, and the rationale behind regulatory actions should be made available to the public.
• Grievance Redressal Mechanism: An effective grievance redressal mechanism should be in place to address any issues faced by stakeholders. This will not only help in resolving disputes but also act as a feedback mechanism for regulatory bodies to improve their functioning.
• Capacity Building: Regular training and capacity building of the staff of regulatory bodies should be undertaken to ensure that they are equipped with the necessary skills and knowledge to effectively carry out their responsibilities.
• Stakeholder Consultation: Regulatory bodies should actively engage with stakeholders, including industry experts, consumer groups, and civil society organizations, to gather inputs and feedback on their policies and decisions. This will help in making more informed decisions and ensure that the interests of all stakeholders are taken into account.

In conclusion, enhancing the accountability of regulatory bodies is crucial to addressing the challenges of over-regulation and ensuring that they act as true facilitators for businesses and the economy. By adopting the above measures, regulatory bodies can become more transparent, effective, and accountable, leading to better outcomes for all stakeholders.

Q.8.(a) ‘NITI Aayog’ has changed the way India strategized for economic development, but its effectiveness is yet to be seen, especially when its financial powers are far less than its predecessor. Analyze.    (20 Marks)

NITI Aayog (National Institution for Transforming India), established in 2015, replaced the Planning Commission, which was in existence since 1950. The main objective behind this institutional reform was to bring about a paradigm shift in the way India strategized for economic development. The focus shifted from a centralized planning approach to a more cooperative, decentralized, and participatory model involving all states and union territories.
While NITI Aayog has indeed introduced some significant changes in the approach to economic development, its effectiveness is yet to be seen, especially when its financial powers are far less than its predecessor.

The following points highlight the changes brought about by NITI Aayog and the challenges it faces in terms of its effectiveness:

• Shift in Approach: NITI Aayog has moved away from the traditional five-year plans to a more flexible approach with the adoption of a 15-year vision document, a 7-year strategy, and a 3-year action agenda. This provides a long-term perspective while allowing for periodic review and adjustments. However, the success of this new approach will depend on the coordination and cooperation between the center and the states, and the effectiveness of the monitoring and evaluation mechanisms.
• Decentralization and Cooperative Federalism: NITI Aayog aims to promote cooperative federalism by facilitating the involvement of states and union territories in the formulation of national policies and plans. The Governing Council, which includes the Prime Minister and Chief Ministers of all states and administrators of union territories, provides a platform for collective decision-making. However, the challenge lies in ensuring that states actively participate in the process, and the decisions taken are implemented effectively.
• Policy Innovation and Experimentation: NITI Aayog has been given the mandate to act as a think tank and provide innovative policy solutions to the government. It is expected to advocate best practices, provide technical assistance, and build capacity at the state and local levels. However, the effectiveness of these initiatives will depend on the quality of research and analysis, and the ability to translate ideas into actionable policy recommendations.
• Limited Financial Powers: Unlike the Planning Commission, which had the authority to allocate funds to states, NITI Aayog does not have any financial powers. The responsibility of resource allocation now lies with the Finance Ministry. This limits the leverage that NITI Aayog has in influencing the priorities and implementation of development programs across states. Moreover, the absence of financial powers may make it difficult for NITI Aayog to enforce accountability and ensure that states adhere to the agreed-upon plans and policies.
• Implementation and Monitoring: One of the key challenges for NITI Aayog is to ensure the effective implementation of policies and plans. This requires strong monitoring and evaluation mechanisms to track progress and identify bottlenecks. While NITI Aayog has initiated some steps in this direction, such as the development of key performance indicators and the establishment of a Development Monitoring and Evaluation Office, the effectiveness of these mechanisms remains to be seen.

In conclusion, NITI Aayog has indeed changed the way India strategized for economic development by adopting a more flexible, decentralized, and participatory approach. However, its effectiveness is yet to be seen, especially when its financial powers are far less than its predecessor. The success of NITI Aayog will depend on its ability to overcome these challenges and ensure that the new approach to planning and policy-making results in tangible improvements in the country's economic development and social welfare.

(b) Even though the law and order administration is a State subject, it is paradoxical that the Central agencies—NIA or paramilitary forces under the Union Government—have restricted the powers of State Governments. Discuss.    (20 Marks)

• The law and order administration in India is primarily a State subject, as per the Seventh Schedule of the Constitution. It falls under the purview of state governments, which are responsible for maintaining peace, security, and public order within their respective territories. However, the role of Central agencies—like the National Investigation Agency (NIA) and paramilitary forces under the Union Government—has increasingly blurred the lines of responsibility and authority between the Centre and the States.
• The NIA, established in 2008, is a central counter-terrorism agency that investigates offenses related to national security, including terrorism, human trafficking, and counterfeit currency. While the NIA's mandate is to investigate cases of national importance, it can also take up cases within the jurisdiction of State Governments, often without their consent. This has led to concerns about the infringement of the States' authority and the erosion of the federal structure.
• Similarly, the deployment of paramilitary forces, such as the Central Reserve Police Force (CRPF), the Border Security Force (BSF), and the Indo-Tibetan Border Police (ITBP), is often seen as an encroachment on the powers of the state governments. These forces, although primarily responsible for border security and assisting the States during emergencies, are under the direct control of the Union Government. Their deployment in states for maintaining law and order has raised questions about the Centre's interference in the States' domain.

The increasing involvement of central agencies in law and order administration can be attributed to various factors:

• Inadequacy of State Police Forces: State police forces often lack the necessary resources, training, and capabilities to deal with complex and high-profile cases. This has led to the need for specialized central agencies like the NIA to step in and assist in such investigations.
• National Security Concerns: In cases involving cross-border terrorism, organized crime, or threats to national security, it becomes essential for the central government to have a direct role in the investigation and response. These cases often have implications beyond the jurisdiction of a single state, necessitating the involvement of central agencies.
• Political Factors: The deployment of central forces in states has often been influenced by political considerations, with the Centre using these forces to assert control over states ruled by opposition parties. This has led to a perception of central agencies being used as tools of political interference.

Despite the concerns raised, the involvement of central agencies in law and order administration has also yielded positive results in certain cases. For example, the NIA has been successful in unearthing terror networks and foiling terror plots across the country. Similarly, the presence of paramilitary forces has helped maintain law and order during incidents of communal violence and large-scale protests.

In conclusion, while the involvement of central agencies in the law and order administration has restricted the powers of State Governments to some extent, it is essential to strike a balance between ensuring national security and maintaining the federal structure. This can be achieved by fostering greater cooperation and coordination between the Centre and the States, and ensuring that central agencies are not misused for political purposes. Additionally, efforts should be made to strengthen the capacity of state police forces, thereby reducing the dependence on central agencies in maintaining law and order.

(c) Performance grants devolved by Finance Commission of India have increased the financial accountability of the local bodies. Elaborate.    (10 Marks)

• The Finance Commission of India is a constitutional body that has been established under Article 280 of the Indian Constitution. Its primary objective is to recommend the distribution of financial resources between the Central government and the States, as well as among the States themselves. This includes the allocation of resources to the local bodies, such as the Panchayati Raj Institutions (PRIs) and Urban Local Bodies (ULBs).
• In recent years, the Finance Commission has increasingly focused on devolving performance grants to the local bodies. Performance grants are essentially funds that are tied to specific performance criteria, such as the implementation of key policies and reforms, improvement in service delivery, and adherence to financial accountability norms. The aim of these grants is to incentivize local bodies to improve their functioning and enhance their financial accountability.

The devolution of performance grants by the Finance Commission has had a significant impact on the financial accountability of the local bodies in India. Some of the key aspects of this impact are as follows:

• Incentivizing key reforms: Performance grants have acted as an essential tool for incentivizing the local bodies to undertake crucial administrative and financial reforms, such as the implementation of double-entry accounting systems, the preparation of annual financial statements, and adherence to budgetary norms. For example, the 14th Finance Commission recommended performance grants for PRIs based on their adherence to specific criteria, such as the submission of audited accounts and increased own-source revenue generation.
• Improved financial management: The linkage of funds to performance has encouraged the local bodies to adopt better financial management practices, including the timely submission of financial reports, the adoption of measures to increase their own revenue, and the effective utilization of funds. This has led to an overall improvement in the financial health of the local bodies, thereby enabling them to provide better services to the citizens.
• Enhanced transparency and accountability: Performance grants have increased the transparency and accountability of the local bodies as they are required to regularly report their performance against the set criteria to receive these funds. This has also encouraged the local bodies to be more responsive to the needs of the citizens and focus on improving their service delivery mechanisms.
• Strengthened intergovernmental fiscal relations: The devolution of performance grants has strengthened the fiscal relationship between the Central and State governments and the local bodies. It has also led to better coordination among the different levels of government, as the disbursement of funds is contingent upon the fulfillment of specific performance criteria.
• Better targeting of funds: Performance grants have enabled the Finance Commission to target funds more effectively, as they are disbursed only to those local bodies that meet the required performance criteria. This ensures that the funds are utilized optimally and are directed towards the intended objectives.

In conclusion, the devolution of performance grants by the Finance Commission has played a significant role in enhancing the financial accountability of the local bodies in India. It has incentivized the local bodies to adopt better financial management practices, undertake key reforms, and improve their service delivery mechanisms. This, in turn, has led to better targeting of funds, strengthened intergovernmental fiscal relations, and enhanced transparency and accountability in the functioning of the local bodies.