State and District Administration: Summary | Indian Polity for UPSC CSE PDF Download

Recommendations for Restructuring State Governments Size of the Council of Ministers

• The size of the Council of Ministers in the States needs to be reduced further considering the needs of an efficient government. For this purpose the maximum size of the Council of Ministers may be fixed in a range between 10% to 15 % of the strength of their Legislative Assemblies.
• In the larger States (where membership of the Assembly is more than 200), maximum percentage should be 10% where as in the medium (where the strength of the Assembly is between 80 and 200) and the smaller States (where the strength of the Assembly is below 80) it may be 12% and 15% respectively
• It may be ensured that the maximum number of Ministers permissible for the medium sized States should not exceed the number prescribed for a large sized State having 200 legislators and similarly, the maximum number of Ministers permissible for the smaller States should not exceed the number prescribed for a medium sized State having 80 Legislators. There may not be any prescribed minimum.

Rationalising the Number of Secretariat Departments

The number of Secretariat Departments in the States should be further rationalized on the following basis:

• The existing departments covering inter-related subjects, activities and functions should be merged;
• Need for synergy between the activities of various departments
• Devolution of a large number of functions to the PRIs
• The role of Secretaries to be redefined and to be divested of non-
• essential responsibilities and executive work and larger delegation of power to the executive departments/agencies
• Need for streamlining the decision making process.

Executive Agencies

• The State Governments should scrutinize the functions/activities of each department to confirm whether these activities/ functions are critical to the mission of the department and can only be carried out by government agencies.
• Only those functions/ activities that have to be carried out by the government should be carried out directly by the departments. Other functions/ activities should be carried out by Executive Agencies of the department.
• Each Executive Agency, whether a new body or an existing departmental undertaking/ agency/ board/ special purpose body, etc. that is converted into an Executive Agency, must be semi-autonomous and professionally managed under a mandate. Such executive agencies could be structured as a department, board, commission, company, society, etc.
• There is a need for a right balance between autonomy and accountability while designing the institutional framework of executive agencies.

State Public Service Commission Appointment of Chairman and Members

• In making an appointment to a State PSC the Governor should consult the chairman of the UPSC and the Chairman of the State PSC.
• At least one member of the State PSC should belong to a different State.
• The minimum academic qualification for membership of a Commission
• should be a university degree.
• A member selected from among government officers should have held
• office under a State Government or the Union Government for at least ten years; and should have occupied the position of a Head of Department or Secretary to Government in a State or a comparable position in an institution of higher education.
• Members selected from non-official should have practiced at least for ten years in any of the recognised professions like teaching, law, medicine, engineering, science accountancy or administration.

Roles and functions of Public Service Commissions

• The PSC should handle only recruitment of candidates for higher level posts under the State Government (Class I and Class II positions of various State cadres)
• Advising government on senior level promotions through the DPC and
• Recruitment and promotions to teaching posts in government Colleges and
• fully funded units of the Universities.
• With regard to the appointment of junior level functionaries of the State
• Government, the role of the State PSC should be to lay down broad norms and standards. The recruiting organisations concerned

Summary of recommendations on District administration 

The Institution of District Collector

• There is need to realign the functions of the Deputy Commissioners/ District Collector so that he concentrates on the core functions such as land and revenue Administration, maintenance of law and order, disaster management, public distribution and civil supplies, excise, elections, transport, census, protocol, general administration, treasury management and Coordination with various agencies/ departments.
• Surveys and measurements need to be carried out in a mission mode utilizing modern technology to arrive at a correct picture of land holdings and land parcels and rectification of outdated maps.
• This needs to be accompanied by an analysis of the existing mechanism for updating land records – which varies from State to state – to be supplanted by an improved and strengthened mechanism which ensures that all future transactions in titles are immediately reflected in the land records.
• The dispute resolution mechanism with regard to land titles needs to be strengthened in order to be compatible with the demands made on it.
• In case of urban areas, a similar exercise needs to be undertaken especially since measurements and surveys have not been done in many of such areas and even record of titles is not available in most cities.
• There is need to strengthen the compliance machinery at the district level to enforce provisions of the RTI Act and to reduce the element of delay and subjectivity in the functioning of the lower level formations of the government. This should be done by creating a special RTI Cell in the office of the Collector, whose functions should be reviewed by the Collector at regular periodicity.
• Officers may be posted as District Magistrates early in their career, but in complex and problem-prone districts an IAS officer should be posted as DM only on completion of 10-12 years of service.

Modernizing the Office of the District Collector

• Development of an e-District framework applicable to all districts based on which ICT initiatives may be undertaken by respective districts
• Comprehensive classification of rules, guidelines and procedures is
• necessary for efficient service delivery and better understanding among both the officers and the general public.
• Delegation of adequate powers and responsibilities needs to be done so that unnecessary file movements and resultant delays may be avoided.
• Introducing a IT based mechanism for feedback and grievance redressal wherein public grievances are attended to within specified timelines in a transparent manner.
• Developing a reliable central district database through which data collection from the grassroot level with the help of local revenue administration machinery can be done.
• Providing e-governance services through the front-end service delivery nodes for rendering important services

Functional and Structural Reforms in Local Governance

• There should be an integrated governing structure at the district level in the form of the “District Council” with representation from both urban and rural areas. The Council will act as the “District Government”.
• The District Collector should have a dual role in this government structure. He should work as the Chief Officer of the District Council and should be fully accountable to the District Council on all local matters.
• The District Officer would also be fully accountable to the State Government on all regulatory/other matters not delegated to the District Government.

Summary of recommendation on Administration of the Union Territories

The National Capital Territory of Delhi

1. Role of the Government of NCT in Municipal Affairs – Its Relationship with the Municipal Corporation of Delhi (MCD)
   • The MCD, including appointment of the Commissioner and other functionaries should lie in the domain of the Government of the National Capital Territory (GNCT). However, the appointment of the Commissioner should be made by the GNCT in consultation with the Union Government.
   • In order that, the Union Government retains its overarching role over delivery of municipal services in the National Capital Territory, some provisions of the existing Act should remain unchanged.
   • Provisions dealing with building regulations should be kept intact in the domain of the Union Government (for example Section 347). Section 503(dealing with exemptions to the diplomatic missions) and Section 508 (dealing with special provisions for the Red Fort area) should also vest with the Union Government.
2. Role of the Government of the NCT: – In Police, Law and Order
   • The Union Government may retain control over the broader aspects of security and law and order whereas traffic, local policing and enforcement of the special laws could be handed over to the Delhi Government. In the long run some of these functions could be transferred to the Municipal Corporation.
   • As this will involve major restructuring of the present Delhi Police establishment, it may be advisable to constitute a Task Force with representatives of both the Union and the Delhi Government to study the matter in depth and suggest appropriate restructuring through legislative and administrative measures.

On Puducherry

• There should be enhanced financial and administrative delegation of powers to the Government of Puducherry. The Council of Ministers should be free to discharge its functions effectively within such delegation.
• Recommendations made by the Commission in its Report on “Local Governance” (6th Report) may be implemented on priority in order to strengthen and empower the PRIs in Puducherry.
• The Puducherry Administration should be given the powers to raise public debt in order to finance its development projects and plans.

1. Administration in Andaman & Nicobar Islands
   • The Union Government should constitute an Advisory Council to the Administrator of Andaman & Nicobar Islands consisting of the local Member of Parliament, the Chief Secretary, Chairpersons of the Zila Parishad and Municipal Council and senior representatives from the Ministries of Home Affairs, Tribal Affairs, Environment, Forests and Defence and the Planning Commission to advise him on all important matters of administration.
   • The Union Government should enhance financial the powers of the UT administration by notifying delegation. This should be revised once in five years. Within such delegated powers, the UT Administration must be given full administrative and functional autonomy

On Lakshadweep

• The Union Government should constitute an Advisory Council to the Administrator of Lakshadweep consisting of the local Member of Parliament, Chairman of the Zila Parishad and representatives of the Ministries of Home Affairs, Tribal Affairs, Environment and Forests and Defence and the Planning Commission to advise him on all important matters of administration.
• The multi-disciplinary task force under the Chairmanship of the Deputy Chairman, Planning Commission, recommended to be set up for the Lakshadweep Islands.

Summary of Recommendation on North- Eastern States

Ethnic Conflicts in Places, Manifesting As Territorial Conflict and Violence (Problem of Insurgency and Law And Order)

• There is need to continue political dialogue among various stakeholders. Steps should be taken to upgrade the capacity and capability of the police forces of the States so that they are able to uphold the law.
• In order to control cross border movement of insurgents, in addition to other measures, diplomatic efforts should be stepped up.
• The North-East Division of the Ministry of Home Affairs should be upgraded to a separate wing.

Provisions of the Sixth Schedule Of The Constitution With Respect To Assam, Meghalaya, Tripura And Mizoram

• Autonomous Councils should be encouraged to pass suitable legislation for establishment of elected bodies at the village level with well defined powers and a transparent system of allocation of resources.
• Suitable stipulations may be made in the procedure for release of grants to the Councils that a certain portion thereof will be disbursed only in the event of a Council passing and implementing the legislation referred at (a) above.
• While an Autonomous District Council should be free to lay down a suitable framework for Village Councils under its jurisdiction, this freedom should be subject to certain general principles.

Absence of Linkage between the Sixth Schedule And The 73rd Amendment

• Autonomous Districts/Councils in Sixth Schedule Areas should also be covered by the State Finance Commission and the State Election Commission.

Special Powers of the Governors of Assam, Meghalaya, Tripura and Mizoram with Respect To schedule Sixth Areas

• The Governors of Assam, Tripura and Mizoram should be empowered to exercise discretionary powers in respect of all the provisions pertaining to the Autonomous Councils under the Sixth Schedule in consultation with the Council of Ministers and if necessary, in consultation with these Councils. A Constitutional amendment will be required for this purpose. • A high-level Review Committee headed by the Governor and consisting of representatives of both the State Government and the District Councils should be formed in each State to review the functioning of these bodies. This Committee should submit its report to the Union Government.

Issues of Tribal Areas Lying Outside the Sixth Schedule

• For tribal areas which lie outside the Sixth Schedule as well as the Seventy Third Constitutional Amendment the State Government should take steps to create specially at the district level bodies which should consist of both elected as well as traditionally selected representatives. The States which show initiative and take a lead in this matter should be given incentives.
• The District Rural Development Authority of the district should work as a body accountable to this District Level Body.

Personnel Management and Capacity Building of Administration

• The North Eastern Council, in consultation with the Universities and other educational institutions of the region, should draw up programmes for coaching students for the Civil Services, and other competitive tests such as the Combined Defence Services Examination and the Engineering/Medical Examinations

Issues of Recruitment in the Sixth Schedule Areas

• Immediate steps should be taken to constitute District cadres for all Groups ‘C’ and ‘D’ posts (Classes III and IV) for performance of all ‘transferred functions’ wherever such action has not been taken.
• Recruitment to Groups ‘A’ and ‘B’ posts (Classes I and II) by the Autonomous District Councils or analogous bodies particularly to positions requiring technical/professional qualifications should ordinarily be left to the State level.
• State Governments and the Autonomous District Councils should jointly draw up norms for arriving at the number of technical and professional posts required in the tribal areas. Personnel for such posts should be made available on priority basis.
• Postings to the tribal areas should be for a fixed tenure and must be followed by, as far as practicable, to a posting at a place of the officer’s choice.

State Specific Recommendations Assam

• All the three Sixth Schedule Autonomous Councils of Assam should be given parity with regard to legislative and executive powers.
• Adequate resources should be provided to the Autonomous Councils so that they are able to carry out their assigned responsibilities effectively. The allocation of funds to these bodies should be based on pre- settled norms (with reference to the minimum standards of service to be provided and their capacity to raise local resources). This exercise could be undertaken by the State Finance Commission.
• The system of release of funds to the BTC through a single window system should be further fine tuned to make it more effective and hassle free. Such a hassle free system of fund release should be adopted for the other two Councils also with adequate delegation of financial powers

Arunachal Pradesh

• Some districts of Arunachal Pradesh are presently affected by insurgency from neighboring States. Firm steps should be taken by both the Union and the State Government to restore peace in the affected areas.
• Traditionally, land in Arunachal Pradesh is owned by the community. However, this system has gradually weakened primarily because community owned land is not bankable collateral. This issue needs to be resolved in consultation with the Reserve Bank of India, banks and stake- holders in the land.
• Because of the gradual expansion of the formal judicial system in place of the traditional ‘Kebang system’, it would be necessary for the Ministry of Home Affairs to examine the Assam Frontier (Administration of Justice) Regulation Act 1945 in the State, to ensure a smooth transition to the formal judicial system.

Manipur

• Sincere, proactive measures should be taken to revive and activate the Hill District Councils in Manipur. It will be imperative to devolve a major domain of developmental activities to them. It will have to be done along with transfer of funds and functionaries.
• The local functionaries of the field offices/departments of the State Governments and the parallel bodies which are currently handing these activities at the district level will also need to be placed at the disposal of the District Councils.
• All steps should be taken to put in place elected Village Councils in rural areas. Suitable incentives should be provided to the State for initiating proactive legislative measures in this direction having due regard to the local circumstances.

Meghalaya

• The fact of Autonomous District Councils should be accepted and the State should undertake comprehensive activity mapping with regard to all the matters mentioned in para 3 of the Sixth Schedule. This process should cover all aspects of the subjects viz planning, budgeting and provisioning of finances.
• Allocation of funds to the District Councils should be based on normative and transparent considerations.
• The Union Government would also need to take similar action with regard to Centrally Sponsored Schemes being implemented in these areas.
• Appropriate measures may be taken for capacity building in Autonomous Councils so that they are able to utilize the funds in a better way.
• In the long run, directly elected village level representative bodies will need to be constituted and adequately empowered in autonomous Hill Councils areas of Meghalaya.

Mizoram

• The State should undertake comprehensive activity mapping with regard to all the matters mentioned in para 3 of the Sixth Schedule. This process should cover all aspects of the subjects viz planning, budgeting and provisioning of finances. This will necessitate full transfer of functionaries of the field offices/ departments/bodies relating to these activities to the control of the Councils.
• The Union Government will also need to take similar action with regard to Centrally Sponsored Schemes being implemented in these areas.

Tripura

• DPCs may be constituted in all the districts of Tripura with representation from both the TTADC and the District Administration as all the districts in Tripura comprise of both TTADC and part IX areas. The TTADC should also be involved in the planning process at the State level.
• Immediate steps should be taken to ensure that there is only one intermediate structure between the village and the district bodies of the TTAADC.
• The State Government should take steps to evolve a mechanism which could coordinate block level committees chaired by MLAs and zones and sub-zones which are headed by elected representatives of TTAADC.
• The State may also undertake comprehensive activity mapping exercise to delineate functions among various levels operating within the system such as the District Council, the Block committee and the Village Council.

Managing State Finances

Within these broad outlines, the following issues are of importance in sustainable financial administration of the State Governments.

1. Financial Delegation and Operational Flexibility – the IFA system
   Based on the experience of the Union Government with regard to the IFA, States should take steps to introduce / strengthen the IFA system in the State administration.
2. Avoiding Fiscal Profligacy
   The State Governments need to take steps to ensure that projects and programmes are included in the budget only after well-considered deliberations and processes. The practice of announcing projects and schemes on an ad-hoc basis needs to be done away with.
3. Expenditure Management
   • The States should take priority steps to improve their expenditure profile
   • by finalizing the detailed project reports of schemes in the preceding year and
   • Ensuring that the financial sanctions are given to the departments in the first two months of the current financial year.
   • The States should conduct a zero-base review of programmes and schemes which are more than five years old and which involve large sums of public money. (Say over 50 crores)
4. Prudent Budget formulation- Some of the key recommendations are
   • Realistic estimates and assumptions for budget preparation
   • Avoiding inaccurate and incomplete disclosure of financial situation
   • Public consultation in budget formulation
   • Issue of supplementary demands
   • Off budget and contingent liabilities
   • Multi-year budgeting
5. Revenue Forecast and Need for a Tax Research Unit
   The State Governments should initiate steps to set up dedicated cell within its Finance Department to provide input on the revenue forecast with the reasons thereof.
6. Mechanism for Internal Control
   The State Governments should take steps to set up internal audit committees in each of its departments.
7. External Audit
   The State Governments should specify a time frame for the Departments for necessary follow up action on the recommendations of Audit and forwarding of the ATN after incorporating such action to Audit for vetting before their final submission to the State PAC/ COPU. All Departments should adhere to the prescribed time limits.