UNIT II: CONSTITUTIONAL CONTEXT OF

LOCAL GOVERNMENT IN INDIA

COMMITTEES ON LOCAL GOVERNMENT:

Post-independence, the need to enhance rural development and democratic decentralization

was felt strongly. Therefore, the Central Government appointed several committees and
commissions, from time to time, in order to improve the local bodies. Some of these committees and
recommendations are as follows:

BALWANT RAI MEHTA COMMITTEE (1957)

The Balwant Rai Mehta Committee was established to examine the working of the
Community Development Programme (1952) and the National Extension Service (1953).
The Balwant Rai Mehta Committee suggested ways of democratic decentralization in a
three-tier structure of panchayati raj. This meant that panchayati raj should be setup at three levels.
They should be furnished with sufficient powers and resources. These three tiers of panchayati raj
are:

Three-tier Panchayati Raj System:

o Village Level (Gram Panchayat): Directly elected body responsible for administration at the
village level.
o Block Level (Panchayat Samiti): A body of indirectly elected representatives from the Gram
Panchayats, responsible for administration at the block level.
o District Level (Zila Parishad): Indirectly elected representatives from Panchayat Samitis,
responsible for administration at the district level.

Functions and Responsibilities: Clear division of functions and responsibilities among the three
tiers to avoid overlapping and ensure effective governance. Emphasized devolution of power and
responsibility to these bodies for planning and development, along with adequate financial resources.

Direct and Indirect Elections: It proposed direct elections at the village level and indirect elections
at the block and district levels. These three bodies were interlinked as the lower body was
represented in the higher body through its chairperson.

Resources and Funding: Adequate financial resources and powers to be provided to the Panchayati
Raj Institutions (PRIs) to carry out their functions effectively.

Planning and Implementation: PRIs should play a crucial role in the planning and implementation
of community development programs and schemes.

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Leadership and Administration: Emphasis on leadership development and training of Panchayati
Raj officials for better administration.

Implementation: Panchayati raj of the Balwant Rai Mehta Committee pattern was first introduced
by Rajasthan in 1959. Later, other States also followed.

Critical Analysis:

Structural Issues: The three-tier system, while comprehensive, faced implementation challenges.
The indirect election process at the block and district levels sometimes led to the dominance of
higher-tier representatives over lower-tier bodies, reducing local accountability.

Financial Constraints: Despite recommending financial autonomy, PRIs struggled with

inadequate funds and dependency on state governments, which hindered their effectiveness.

Uniformity vs. Flexibility: The committee's model was somewhat rigid, not adequately
considering the diverse socio-economic contexts across different states.

The recommendations were a significant step towards decentralizing governance and

promoting people's participation in democratic processes at the grassroots level. Initially, both the
people and the states were enthusiastic about Panchayati Raj. However panchayati raj institutions
began to decline very soon owing to government indifference and political interference.

ASHOK MEHTA COMMITTEE (1977)

Background and Recommendations:

By the 1970s, the Panchayati Raj system was facing significant issues, such as inefficiency,
lack of resources, and weakening democratic processes. The Ashok Mehta Committee was set up to
revitalize the system.

Two-tier System: The committee recommended a two-tier system:

Mandal Panchayat at the village level - Covering a group of villages, this body was recommended
to replace the Panchayat Samiti.

Zila Parishad at the district level. - The primary unit of decentralized governance, responsible for
planning and development activities at the district level.

Direct Elections: Emphasized direct elections for all seats in both tiers to enhance democratic
representation. The emphasis on direct elections was a progressive step to strengthen grassroots
democracy and enhance accountability.

Strengthening PRIs: Advocated for greater financial and administrative powers for PRIs, including
devolution of 29 subjects listed in the Eleventh Schedule of the Constitution.

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State Election Commission: Proposed the establishment of a State Election Commission to ensure
free and fair elections.

Regular Elections: Mandatory regular elections for Panchayati Raj Institutions to maintain
democratic governance at the local level.

Nyaya Panchayats: Recommended the establishment of Nyaya Panchayats (judicial panchayats) for
local dispute resolution. The recommendation for a State Election Commission and Nyaya
Panchayats were forward-looking, aiming to ensure fair elections and local dispute resolution.

Administrative Support: Establishment of a dedicated cadre of administrative personnel to assist

PRIs in their functions.

Critical Analysis:

Financial Empowerment: The focus on financial autonomy and devolution of subjects was
intended to make PRIs more functional and self-reliant. However, the implementation remained
inconsistent across states.

Two-tier System: The two-tier system was simpler but raised concerns about the elimination of the
intermediary level (Panchayat Samiti), which could impact coordination between village and district
levels.

Political Will: The success of these recommendations largely depended on the political will of state
governments, which varied significantly. Some states were proactive, while others lagged in
implementing the suggested reforms.

Comparative Analysis:

1. Approach to Decentralization: Both committees aimed at decentralizing power but differed in

structure. The Balwant Rai Mehta Committee's three-tier system was more elaborate, while the
Ashok Mehta Committee's two-tier system was simpler and focused more on direct elections and
financial empowerment.

2. Electoral Processes: The shift from indirect to direct elections from the Balwant Rai Mehta to the
Ashok Mehta Committee represented a move towards greater democratic participation and
accountability.

3. Financial Autonomy: Both committees recognized the need for financial resources and
autonomy, but implementation issues persisted due to the dependency on state governments.

4. Administrative Reforms: The Ashok Mehta Committee proposed more comprehensive

administrative reforms, including the establishment of institutional mechanisms like the State
Election Commission and Nyaya Panchayats.

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Conclusion

The Balwant Rai Mehta and Ashok Mehta Committees laid the foundation for local
governance in India, each contributing uniquely to the evolution of the Panchayati Raj system. While
the Balwant Rai Mehta Committee initiated the process of decentralization, the Ashok Mehta
Committee aimed to address the shortcomings and proposed more robust reforms. Despite their
recommendations, the success of local governance in India has largely depended on the commitment
of state governments to implement these reforms effectively.

G.V.K. RAO COMMITTEE (1985)

The Planning Commission created the committee to examine India’s Existing Operational
Mechanisms for Rural Growth and Poverty Reduction Programs in 1985, which itself was
chaired by G.V.K. Rao.
The Commission concluded that now the rural development and poverty alleviation
programs had become increasingly bureaucratized & decoupled from the Panchayati Raj.

It recognised that development was not seen at the grassroot level due to bureaucratization
resulting in Panchayat Raj institutions being addressed as ‘grass without roots’. Hence, it made
some key recommendations which are as follows:

The major recommendations were:

The G.V.K. Rao Committee (1985) recommended making the “district” as the basic unit of
planning and also holding regular elections

Strengthening of Zila Parishad: Zila Parishad should be the primary institution for decentralized
planning and development. Zila Parishad to be the most important body in the scheme of
democratic decentralization.

For efficient decentralized district planning, some state-level planning functions should be moved to
district-level planning entities.

A District Development Commissioner position should be formed. He should be in charge of all

development departments at the district level

District Collector's Role: The District Collector should act as the chief executive officer of the Zila
Parishad, integrating administrative and developmental functions.

District Development Council: Establishment of a District Development Council under the

chairmanship of the District Collector to coordinate development activities.

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Planning and Implementation: The committee suggested that PRIs should play a central role in
planning and implementing development programs. It recommended that district planning
committees be constituted to integrate local plans into the state and national development plans.

Devolution of Powers: Clear devolution of powers, functions, and financial resources to PRIs to
enable them to discharge their responsibilities effectively.

Block Development Officer: Strengthening the role of the Block Development Officer (BDO) to act
as the link between the Zila Parishad and Gram Panchayats.

Major Criticisms:

Implementation Gaps: Critics argue that while the recommendations were comprehensive, their
implementation was lacking. Many states did not fully implement the suggested measures, leading to
inconsistencies in the functioning of PRIs across the country.

Overemphasis on district level: Critics argued that focusing solely on the district level might
neglect the importance of village-level institutions.

Centralized Planning: Some critics argued that the recommendations did not go far enough in
promoting decentralized planning. They felt that the state-level planning apparatus continued to
dominate, limiting the autonomy and effectiveness of local planning bodies.

Bureaucratic Resistance: There was significant resistance from the bureaucracy in devolving
powers to PRIs. Critics pointed out that the recommendations did not sufficiently address the
entrenched bureaucratic control over local governance.

Inconsistent Electoral Processes: Despite recommendations for regular elections, there were
instances of delays and irregularities in the electoral processes of PRIs. This undermined the
democratic foundation of these institutions.

Capacity Building: The recommendations for capacity building and administrative support were
often not adequately implemented. This resulted in PRIs lacking the necessary skills and resources to
effectively carry out their responsibilities.

Lack of Clarity in Roles: Critics pointed out that the delineation of roles and responsibilities among
the three tiers of PRIs was sometimes unclear, leading to overlaps and conflicts in function and
authority.

The G.V.K. Rao Committee's recommendations were pivotal in shaping the discourse on local
governance in India, but the challenges in their implementation highlighted the complexities of
decentralizing power and ensuring effective local self-governance.

The G.V.K. Rao Committee envisioned its district as that of the epicenter of democracy
administration. The group also suggested that a District Development Commissioner be

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appointed, who could serve as the Zilla Parishad’s CEO. All agencies at the district level should be
under the control of the District Assemblies Commissioners. This differed from earlier
committees’ recommendations, which suggested the lower bodies as nothing more than a
foundation and gave the Panchayats as well as Mandal Panchayats the lead role in development.

L.M. SINGHVI COMMITTEE (1986)

The L.M. SINGHVI Committee was formed in 1986 under Rajiv Gandhi’s administration to
investigate the challenges that Panchayati Raj institutions administrations were facing. PRIs are
now seen as self-governing entities which would help people take part in the planning and design
process.

The L.M. Singhvi Committee was set up to study and recommend measures for revitalizing
the Panchayati Raj system. The key recommendations were:

Constitutional Recognition: Granting constitutional status to Panchayati Raj Institutions to protect

and preserve their functioning. The committee recommended that the Panchayati Raj systems should
be constitutionally recognized. It also recommended constitutional provisions to recognize free
and fair elections for the Panchayati Raj systems.

The PRIs should have been acknowledged and constitutionally safeguarded. A new phase in the
Indian Constitution should indeed be inserted to entrench the requirements for free, periodic, and
representative democracy in the PRIs.

Three-tier System: Reinforcement of the three-tier system (Gram Panchayat, Panchayat Samiti, and
Zila Parishad) with clearly defined roles and responsibilities.

Nyaya Panchayats: Establishment of Nyaya Panchayats (village courts) to provide speedy and
affordable justice at the grassroots level.

Mandatory Elections: Regular and timely elections for PRIs to maintain their democratic nature and
prevent administrative vacuum.

Involvement of Gram Sabha: Strengthening the Gram Sabha (village assembly) to ensure
greater participation of the people in local governance and decision-making. The Gram
Panchayat represents real democracy, and rural Gram Sabha should be better designed. Gram
Sabha should have been taken seriously.

Financial Autonomy: Recommendations for the financial independence of PRIs through regular
grants, tax-sharing, and local resource mobilization - It recommended that village panchayats
should have more finances for their activities to strengthen them.

Planning and Implementation: Emphasis on decentralized planning and involvement

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Judicial tribunals to be set up in each state to adjudicate matters relating to the elections to the
Panchayati Raj institutions and other matters relating to their functioning.

Criticisms:

Overemphasis on constitutional status: Some critics argued that constitutional status alone would
not guarantee effective functioning of PRIs.

Implementation challenges: Concerns were raised about the feasibility of implementing some of
the recommendations, such as establishing judicial tribunals in every state.

Limited focus on rural development: While the committee emphasized the importance of PRIs, it
did not delve deeply into specific strategies for rural development.

All these things further the argument that panchayats can be very effective in identifying and solving
local problems, involve the people in the villages in the developmental activities, improve the
communication between different levels at which politics operates, develop leadership skills and in
short help the basic development in the states without making too many structural changes.

73rd and 74th Amendments

 In 1989, the central government introduced two constitutional amendments aimed at
strengthening local governments and ensuring an element of uniformity in their structure

 Later in 1992, the 73rd and 74th Amendments were passed by the Parliament

 The 73rd Amendment is about rural local governments (which are also known as Panchayati
Raj Institutions or PRIs) and the 74th amendment is about urban local governments
(Nagarpalikas)

Key features of the 73rd Amendment of Indian Constitution

The 73rd Amendment of Indian Constitution aimed at strengthening local self

governments and ensuring an element of uniformity in their structure and functioning across the
country.
Adoption of State: Since local self-government is a State subject, the States had to change their
laws about local bodies in order to bring these in conformity with the amended Constitution.

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Three Tier Structure within Rural Self-Governing Bodies:
The three-tier structure of local self-government in India is a framework for decentralized
governance that empowers different levels of local bodies.

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It consists of the following 3 tiers:
Gram Panchayats: These are the lowest-level local self-government bodies, typically responsible
for governing individual villages or groups of villages.
Panchayat Samitis: The intermediate level, Panchayat Samitis, covers a group of Gram
Panchayats.
Zila Parishads: At the top of the three-tier structure are Zila Parishads, responsible for district-level
governance and coordination.

Gram Sabha: The Vital Role of Gram Sabha and Gram Panchayat

Mandatory Provision: The amendment also made a provision for the mandatory creation of the
Gram Sabha.

Gram Sabha - Structure

 The Gram Sabha is a meeting of all adults who live in the area covered by a Panchayat.
 Anyone who is 18 years old or more and who has the right to vote is a member of the Gram
Sabha.
 Regular meetings are held to discuss and decide on various issues concerning the village.
 Meetings are mandated at least twice a year, though many states require more frequent
meetings.
 The gram sabha meetings in Tamilnadu would be held six times a year, which had so far been
held on four days. Besides on the Republic Day (January 26), Labour Day (May 1),
Independence Day (August 15) and the birth anniversary of Mahatma Gandhi (October
2), the gram sabhas would meet on World Water Day (March 22) and Local Governance
Day (November 1).
 The elected head of the village Panchayat (Sarpanch) , presides over the meetings of the Gram
Sabha.
 The village Panchayat head ensures that meetings are held as per schedule and that the decisions
taken are implemented.

Gram Sabha – Role

It serves as the general body of the village Panchayat.
 Its role and functions are decided by State Legislation.
 The Gram Sabha is a key factor in making the Gram Panchayat play its role and be
responsible.
 It is the place where all plans for the work of the Gram Panchayat are placed before the
people.
 The Gram Sabha prevents the Panchayat from doing wrong things like misusing money or
favoring certain people.

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  It plays an important role in keeping an eye on the elected representatives and in making
them responsible to the persons who elected them.

Agenda:
 The agenda for the Gram Sabha meetings typically includes discussions on the budget,
development plans, social issues, public grievances, and audit reports of the Panchayat.

Functions:
The Gram Panchayat meets regularly and one of its main tasks is to implement development
programmes for all villages that come under it.
 Work of a Gram Panchayat includes:
o The construction and maintenance of water sources, roads, drainage, school buildings
and other common property resources.
o Levying and Collecting Local Taxes.
o Executing government schemes related to generating employment in the village.
- Critical decisions related to the village's development, utilization of funds, and selection of
beneficiaries for various schemes are made in the Gram Sabha meetings.
- This decentralizes power and ensures that decisions reflect the collective will and needs of the
community.

 Sources of funds for the Panchayat:

o Collection of taxes on houses, market places etc.
o Government scheme funds received through various departments of the government –
through the Janpad and Zila Panchayats.
o Donations for community works etc.

Importance of Gram Sabha

1. Direct Democracy:
- The Gram Sabha represents a form of direct democracy where every voter has a say in the
decision-making process, promoting inclusive and participatory governance.
2. Transparency and Accountability:
- By involving the entire village community, the Gram Sabha ensures transparency and
accountability in the functioning of the Panchayat. It reviews the performance and financial
statements of the Panchayat.
3. Decision Making:

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 - Critical decisions related to the village's development, utilization of funds, and selection of
beneficiaries for various schemes are made in the Gram Sabha meetings.
- This decentralizes power and ensures that decisions reflect the collective will and needs of the
community.

4. Social Audit:
- The Gram Sabha acts as a platform for social audits, where the implementation of development
programs and schemes is reviewed, ensuring that the benefits reach the intended recipients.
5. Conflict Resolution:
- It provides a forum for resolving disputes and conflicts within the community in an amicable and
participatory manner.
6. Empowerment:
- Empowers marginalized sections of society, including women, Scheduled Castes, and
Scheduled Tribes, by ensuring their participation in governance.
- Special Gram Sabha meetings may be called to focus on issues affecting these groups.
7.Monitoring and Supervision:
- The Gram Sabha monitors the execution of development works and ensures that public resources
are used efficiently and effectively.
- It holds the Panchayat accountable for its actions and decisions.
8. Community Development:
- Facilitates holistic community development by addressing issues related to health, education,
sanitation, infrastructure, and livelihoods through collective decision-making and resource
mobilization.
The Gram Sabha is a cornerstone of the Panchayati Raj Institutions, embodying the
principles of grassroots democracy and participatory governance. It plays a critical role in
ensuring that the voices of the rural populace are heard and considered in the governance and
development process. By promoting transparency, accountability, and community involvement, the
Gram Sabha strengthens the democratic fabric of rural India and contributes to sustainable and
inclusive development.

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Elections: Democratic Foundations
 All the representatives at three levels of Panchayati Raj institutions are elected directly by
the people.
 Term: The term of each Panchayat body is five years.
 Provision for immediate elections after dissolution i.e., if the State government dissolves
the Panchayat before the end of its five-year term, fresh elections must be held within six
months of such dissolution.

Reservations in Panchayati Raj for Women and Marginalized Communities

 Women Reservation: One-third of the positions in all panchayat institutions are reserved
for women.
 For SC and ST: Reservations are provided at all the three levels, in proportion to their
population
 For OBCs: They can be provided if the States find it necessary
 Further, the reservation of one-third of the seats for women is not merely in the general
category of seats but also within the seats reserved for Scheduled Castes, Scheduled
Tribes, and backward castes.

Decentralization: Transfer of Subjects to Panchayati Raj Institutions

 Twenty-nine subjects, which were earlier in the State list of subjects, are identified and
listed in the Eleventh Schedule of the Constitution.
 The actual transfer of these functions depends upon the State legislation.
 Each State decides how many of these twenty-nine subjects would be transferred to the local
bodies (Article 243G).
Article 243G of the Indian Constitution lays down the framework for the functioning of Panchayats.
It states that the State Legislature shall enact laws to endow Panchayats with the necessary powers
and authority to function as institutions of self-government.

State Election Commissioner

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  The State government is required to appoint a State Election Commissioner who would
be responsible for conducting elections to the Panchayati Raj institutions.
 The State Election Commissioner is an independent officer and is not linked to nor is this
officer under the control of the Election Commission of India.

State Finance Commission

 The State government is also required to appoint a State Finance Commission once in five
years.
 The Commission would examine the financial position of the local self governments in the
State.
 It would also review the distribution of revenues between the State and local
governments on the one hand and between rural and urban local governments on the
other.

The positive impact of the 73rd Amendment in rural India is clearly visible as it has
changed power equations significantly. Elections to the Panchayats in most states are being held
regularly. Through over 600 District Panchayats, around 6000 Intermediate Panchayats and 2.3
lakh Gram Panchayats, more than 28 lakh persons now have a formal position in our
representative democracy.

Still, this bill lacks the proper definition of the role of the bureaucracy. It does not clearly
define the role of the state government. On practical level, people are illiterate in India and they are
actually not aware of these novel features. The Panchayats are dominated by effluents in some
parts of the country. The 3 tiers of the Panchayati Raj have still very limited financial powers and
their viability is entirely dependent upon the political will of the states.

74th Amendment of Indian Constitution

The 74th Amendment Act, passed in 1992 and implemented in 1993, aimed at strengthening
and providing a constitutional framework for urban local governance in India. It introduced
provisions for establishing Municipalities and empowering them as institutions of self-government.
In many ways, the 74th Constitutional Amendment is a repetition of the 73rd Amendment,
except that it applies to urban areas.

Three Types of Municipalities: The 74th constitutional amendment act provides for three types of
municipalities in all the states of the country-

Mandated the creation of three types of Municipalities:

 Nagar Panchayat for transitional areas (areas in transition from a rural to an urban area).
 Municipal Council for smaller urban areas.
 Municipal Corporation for larger urban areas.

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Composition:

 Every member of a municipality must be chosen directly by the residents of that area.
 Each municipal region will be divided into territorial constituencies known as wards for this
purpose.
 How a municipality’s chairperson is chosen may be regulated by the state legislature.

Powers and Responsibilities

 Empowered State Legislatures to devolve powers, responsibilities, and authority to

Municipalities.
 The Twelfth Schedule specifies 18 functions, including urban planning, regulation of land
use, water supply, public health, sanitation, and urban forestry, among others.

Elections
 Regular and timely elections to Municipalities every five years.
 Every level of government has given municipalities a five-year term in office. It may,
however, be disbanded before its tenure is over.
 State Election Commissions established to conduct these elections independently.

Reservation of Seats:
 Reservation of seats for SC and ST is provided in every municipality in proportion to their
population.
 Provision for reservation of 1/3rd of the total number of seats is also provided for women.
 The state legislature has been empowered to make any provision for reservation in the
municipality at any level in favour of the backward class.

Finance
 Constitution of State Finance Commissions every five years to review the financial position
of Municipalities and recommend measures for fiscal strengthening.
 Provision for grants-in-aid to Municipalities from the Consolidated Fund of the State.
 Additionally, it decides what taxes, levies, tolls, and other charges can be levied against
municipalities.
 According to the rules established by the state government, the municipalities are required to
maintain accounts and to have those accounts audited.
Urban Planning and Development
 Establishment of District Planning Committees (DPCs) to consolidate plans prepared by
Panchayats and Municipalities into district-level plans.
 Formation of Metropolitan Planning Committees (MPCs) for metropolitan areas to prepare
development plans.

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 The 74th Amendment marks a significant step towards strengthening urban local governance
in India. By providing a constitutional framework, it aimed to empower Municipalities, promote
decentralized development, and ensure inclusive representation. Despite challenges in
implementation, the amendment has laid the foundation for more responsive, accountable, and
participatory urban governance, contributing to the overall development of urban areas in India.

11th Schedule of the Constitution

11th Schedule contains the provisions that specify the powers, authority and responsibilities of
Panchayats. This schedule was added by the 73rd Amendment Act of 1992. It has 29 matters.

1. Agriculture, including agricultural extension.

2. Land improvement, implementation of land reforms, land consolidation and soil conservation.
3. Minor irrigation, water management and watershed development.
4. Animal husbandry, dairying and poultry.
5. Fisheries.
6. Social forestry and farm forestry.
7. Minor forest produces.
8. Small scale industries, including food processing industries.
9. Khadi, village and cottage industries.
10. Rural housing.
11. Drinking water.
12. Fuel and fodder.
13. Roads, culverts, bridges, ferries, waterways and other means of communication.
14. Rural electrification, including distribution of electricity.
15. Non-conventional energy sources.
16. Poverty alleviation programme.
17. Education, including primary and secondary schools.
18. Technical training and vocational education.

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19. Adult and non-formal education.
20. Libraries.
21. Cultural activities
22. Markets and fairs.
23. Health and sanitation, including hospitals, primary health centres and dispensaries.
24. Family welfare.
25. Women and child development.
26. Social welfare, including welfare of the handicapped and mentally retarded.
27. Welfare of the weaker sections, in particular, of the Scheduled Castes and the Scheduled Tribes.
28. Public distribution system.
29. Maintenance of community assets.

It is expected that the subjects covered under the eleventh schedule of the Indian constitution are
made to ensure the development of the rural India.

12th Schedule of the Constitution

12th Schedule of the Indian Constitution deals with the provisions that specify the powers, authority
and responsibilities of Municipalities. This schedule was added by the 74th Amendment Act of 1992.
It has 18 matters.

1. Urban planning including town planning.

2. Regulation of land-use and construction of buildings.
3. Planning for economic and social development.
4. Roads and bridges.
5. Water supply for domestic, industrial and commercial purposes.
6. Public health, sanitation conservancy and solid waste management.
7. Fire services.
8. Urban forestry, protection of the environment and promotion of ecological aspects.
9. Safeguarding the interests of weaker sections of society, including the handicapped and
mentally retarded.
10. Slum improvement and upgradation.
11. Urban poverty alleviation.
12. Provision of urban amenities and facilities such as parks, gardens, playgrounds.
13. Promotion of cultural, educational and aesthetic aspects.
14. Burials and burial grounds; cremations, cremation grounds; and electric crematoriums.
15. Cattle pounds; prevention of cruelty to animals.
16. Vital statistics include registration of births and deaths.
17. Public amenities including street lighting, parking lots, bus stops and public conveniences.

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18. Regulation of slaughter houses and tanneries.

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