Local Government

Introduction: Decentralisation refers to the systematic effort to delegate all power to the lower
levels of administration, except that which can only be exercised at the central level.
Decentralisation, therefore, is the wide distribution of authority and responsibility to smaller
or local levels, that is practical throughout the country.
The independence of India should mean the independence of the whole of India. Independence
must begin at the bottom. Thus, every village will be a republic. It follows therefore that every
village has to be self-sustained and capable of managing its affairs. In this structure composed
of innumerable villages, there will be ever widening, ever ascending circles. Life will be a
pyramid with the apex sustained by the bottom -Mahatma Gandhi

Need of Local Government

1. Local government provides an opportunity to people to govern themselves.
2. Decentralisation or devolution power from higher to lower levels is the real guarantee for the
success of a democracy.
3 Local people are well attuned with their problems (of electricity and water supply, public
works, health, sanitation, education, etc.) and can manage them more effectively than other
levels of government.
4 Local governments consist of officials who serve as honorary members. The system is
therefore economical.
5. Devolution or decentralisation of power at local level relieves the state government from some
of its burden. The state government can then concentrate better on other critical areas such as
police, law and order, trade, etc.

Local Government in India

It is not possible for the central government to carry out responsibilities of local
government from the centre. As a result, powers have been divided at three levels - central, state
and local levels:
Local government is the grassroot level of governance and important for decentralisation of power.
Since India is a vast country devolution of power at local level would be a long-term solution to
the problems of people.
Local government is a democratic government in the true sense. It is an elected body of
representatives enjoying considerable degree of autonomy and serving as an administrative unit
for solution to local affairs. In India, local government refers to grassroot governance through
Panchayati Raj Institution (PRI) at the village level and Municipal Institutions (MI) in towns and
cities.

Development of Local Government in India

Local Government in India before Independence

The local government or rural democratic government existed in India since ancient times. Village
Panchayats used to exist in India during the days of Mauryas, Guptas and in other kingdoms
of ancient India. This continued during the Sultanate and Mughal period. The British
however, destroyed the Panchayats of India and in their place established Rural Local
Governments for the fulfilment of local government in the provinces (By Viceroy Lord
Rippen in 1882 and further developments in 1919 Government Act and 1935 Government
Act). Officials of different departments were appointed at the district level. The entire rural
government was brought under the district level entrusted to a Collector who was made responsible
for good governance in the Country. The provincial governments had complete control over the
district administration.
Local Government in India after Independence
After getting independence, the Indian leaders tried to establish the dream of local
government or Gram Swarajya by changing the nature of district administration. Several projects
were launched to promote local self-governance. Some of the important ones included:
I. Community Development Programme (CDP): The CDP was launched in 1952 to solve the
problem of villages by involvement of local people themselves. It was launched in 55 areas which
covered 16.500 villages. The function of Community Development was given to local
organisation based upon nominated representatives of the people. This committee consisted
of Block Development Officers, Gram sevaks and other officials. The furthers of Community
Development Programme included:
1. It aimed for all round development of the village.
2 It covered areas like agriculture, irrigation, education, industry, small industry, health, sanitation,
medicine, transport, communication and animal husbandry.
3. It was based on people's cooperation with the government. The people would contribute time
and labour and the government's scientific and technical knowledge.
4. Local people were responsible for initiating the programme and it was based on self-reliance.
5. It was a multi-sided programme aiming to develop the village socially culturally and
economically.
In the beginning the community development programme functioned independentely. This
programme however, failed as local people were ignorant and bureaucracy was apathetic towards
the project. Later this project was integrated with Panchayat Raj
II. Panchayati Raj: Local Government at Rural Level
The most important initiative for local government at local level was the implementation
of Panchayati Raj in 1959 for the all-round development and local administration of the villages.
A three- tier local government was established in nearly all the villages. These included
1. Gram Panchayat at Village Level
2. Panchayat Samiti at Block Level
3. Zila Parishad at District Level

The elected representative of the people at local level make and implement the developmental
plans. Rajasthan and Andhra Pradesh were some of the first state to launch the PRI. The certain of
these institutions was dependent upon the state government. In 1993 with the passage of Panchayat
Raj Act by the 73 amendment, creation of Panchayats has been made mandatory for all states. The
Panchayats have received a constitutional status through Schedule XI of the Indian
constitution which envisages a three-tier structure for the Panchayati Raj Institutions.
III. Municipalities: Local Government at Urban Level
Local governments in urban areas have a long history. Municipal Acts were passed in
various Provinces between 1871 and 1874. Madras, Bombay and Calcutta were the first towns
where Municipal Corporation was setup. After independence, municipalities were restructured.
However, they were dependent upon the mercy of state governments. The 74 Constitutional
Amendment Act (1992) gave them a constitutional status by providing for municipalities in
Schedule XII of the Indian constitution. The Act provides for three types of Municipal Institutions-
Municipal Corporation (Nagar Nigam), Municipalities (Nagarpalika) and Town Area Committee
(Nagar Panchayat)

Panchayati Raj Institutions and Committee

Panchayati Raj is a system of local government administered by councils consisting of
local representatives of people. Panchayati Raj provides the requisite administrative apparatus for
fufilling common needs of rural people. Panchayati Raj was introduced in India in 1959 on the
basis of a report by Balwant Rai Mehta Committee,
Balwant Rai Mehta Committee
In 1957 the government appointed a committee to review the laws passed by several states to
implement Panchayati Raj. The Committee gave its report in 1958 recommending a three tier
structure of local rural government.
These included:
1 Village Panchayat at Village Level.
2. Panchayati Samiti at Block Level.
3. Zila Parishad at District Level.
(Note: It should be noted that village is the lowest level of governance. A group of villages is
called a Block level and a group of blocks makes the district level).

Panchayati Raj was implemented in India on the basis of the report of this Committee. The
structure of the local rural government differed from state to state. However, there were certain
loop holes in the working of Panchayati Raj and since it failed to evolve as a self-reliant institution
of local rural governance, the Janta Party government in 1978 appointed the Ashok Mehta
Committee to review the working of Panchayati Raj Institutions.
Ashok Mehta Committee (1978)
The Ashok Mehta Committee made the following recommendations:
1 Panchayat should be given more power
2. Village Panchayat should be abolished as it is short of resources and Panchayati Raj should be
made two layered.
3. District officials should be under the control of Zila Parishad to make them more accountable.
4. Election to Panchayats should be held politically to link it with programme of political parties.

It would ease the funding problem of Panchayats. The report of the Committee was rejected though
the suggestion to hold elections of Panchayats politically was accepted.
Other Committees:
G.V.K. Rao Committee= G.V.K. Rao was appointed by the Planning Commission in 1985
L M Singhvi Committee= In 1986, Rajiv Gandhi government appointed a committee to prepare
a concept paper on ‘Revitalisation of Panchayati Raj Institutions for Democracy and Development’
under the chairmanship of L.M. Singhvi.

Thungon Committee= In 1988, a sub-committee of the Consultative Committee of Parliament

was constituted under the chairmanship of P.K. Thungon to examine the political and
administrative structure in the district for the purpose of district planning.

Gadgil Committee= The Committee on Policy and Programmes was constituted in 1988 by the
Congress party under the chairmanship of V.N. Gadgil. This committee was asked to consider the
question of “how best Panchayati Raj institutions could be made effective”.
Panchayati Raj Act 1992 (73rd Constitutional Amendment)
In 1992, the Narshima Rao government introduced the Panchayat Raj Act by the 73rd
Constitutional Amendment Act which made Panchayati Raj a reality. It gave a Constitutional
Status to Panchayati Raj by including it in the XI Schedule of the Indian Constitution. The main
features of this Act are as follows:
1. There shall be three-tier structure of Panchayats at village, intermediate and district level.
2 Seats would be reserved for SCs & STs in proportion to their population. One-third total number
of seats would be reserved for women.
3 Offices of chairpersons of Panchayats at all levels would be reserved for SCs and STs in
proportion to their population in the state. One-third offices of chairpersons would be reserved for
women.
4 The term of Panchayat has been fixed for 5 years and in event of dissolution, elections would be
held within 6 months.
5 Panchayats have been entrusted with specific responsibilities listed in Schedule XI constitution.
It includes 29 items like agriculture and allied activities, minor irrigation schemes, land reforms,
small industries, rural housing, rural electrification, drinking water, public distribution system.
primary and secondary education and well fare schemes for weak sections.
6. An independent State Election Commission would be created for superintendence, direction and
control of electoral process of Panchayats.
7. Each state would have state Finance Commission which would determine the principle on which
financial return would be entrusted for Panchayats.

73rd Constitutional Amendment: Special Features of Local Government

1 Three-tier Structure
All states have a uniform three-tire system of Panchayati Raj. It includes
(a) Lowest Level: Gram Panchayat which covers a village or group of villages
(b) Intermediate Level: Taluka Panchayat or Panchayat Samiti at the Block Level or Mandal.
(c) Apex Level: Zila Parishad covering the entire district.

The amendment makes the creation of Gram Sabha mandatory. It has all adult members as
voters. Its role is delineated by the state legislature.
2. Elections
Elections are mandatory for all the three levels of Panchayati Raj. Its term is 5 years, but

the state government can dissolve it earlier. Fresh elections, however, have to be held within 6
months. This provision has ensured continued governance and participation at local level

which was absent before the amendment.

3. Reservations
(a) One-third of the seats in all Panchayat bodies are reserved for women.
(b) Scheduled castes and scheduled tribes also receive reservation in proportion to their

population.
(c) States, if they think proper can reserve seats for OBC (Other Backward Classes) also
(d) The provision of reservation even applies to chairpersons at all the three levels.
(e) Reservations for women is provided both in the general category as well as the category of SCs
and STs.
(f) It has enhanced Dalit and women empowerment.
Transfer of Subjects
29 subjects of state list have been included in the Eleventh Schedule of the Indian
Constitution and have been transferred to Panchayati Raj bodies. These are linked to development
at local level. According to Article 243: "Powers, authority and responsibilities of Panchayati...
The legislatures of a state may, by, law endow the Panchayats with such powers and authority with
respect to the matters listed in the Eleventh Schedule." The actual transfer of powers depends upon
state government

Article 243G
Powers, authority and responsibilities of Panchayats…… the Legislature of a state may, by law,
endow the Panchayat with such powers and authority…… with respect to….. the matters listed
in the Eleventh schedule.

5. Powers to Adivasis
In 1996, a separate act enacted empowerment of Adivasis. These communities have their own
traditional customs and management of resources. This at gave right to Adivasis to protect their
resources. For this reason, more powers have been given to Gram Sabha and elected Village
Panchayats of the Adivasi areas. The move is aimed to balance diversity and decentralisation

6. State Election Commissioners

State government appoints a State Election Commissioner to conduct
elections for Panchayati Raj. The state election commissioner is also as autonomous
as the Election Commissioner of India. Likewise, he is not answerable to the
Election Commission of India. It has smoothed the electoral balance for local
government.
7. State Finance Commission
The state government appoints a state finance commission after every five years. This
Commission examines the financial state of local rural bodies. It also reviews the

distribution of revenue between state and local government and between urban
and local government. It ensures that funding of local rural governments is not politicized.

I. Gram Panchayat at Village Level

By the Panchayati Raj Act 1992 two bodies are established at village level and these are
interconnected. These include the Gram Sabha and the Gram Panchayat.
• Gram Sabha
Gram Sabha is the basic unit comprising of all adult registered voters in the Panchayat
area. However, minors and lunatics are not members of Gram Sabha. Each Gram Sabha meets
twice a year, once in Kharif and then in Rabi season. The quorum of meeting is one-tenth
members. Its executive organ is called Gram Panchayat.
Functions of Gram Sabha are as follows:
1 To approve budget for the annual year
2. To consider levying of new taxes.
3. To study the audit report of last financial year.
4. To elect Gram Pradhan or Sarpanch and members of Village Panchayat.
5. To remove gram Pradhan, if he does not function properly.
6. To review overall activities of the village.
Gram Panchayat
The executive organ of Gram Sabha is known as Gram or Village Panchayat.

Composition
 Its members are elected by Gram Sabha. It has one Pradhan (Sarpanch) and one Vice
President elected by Gram Sabha. The number of other members in the Panchayat are fixed
by the state government on the basis of population. Seats are reserved for SC/ST(S) in
proportion to their population and one-third of seats are reserved for women.
Tenure: Its tenure is 5 years but if it is dissolved earlier, election have to be held within 6 months
Meetings: It usually meets once a month and decisions are taken by majority vote
Functions
(1) Obligatory: These include provisions for safe drinking water, healthcare, setting up of health
centre, arrangement for primary education and drainage, street lights and upkeep of roads, foot
paths, etc.
(2) Developmental functions: These include undertaking schemes for irrigation, execution of
agricultural plans, electrification, vocational education, small-scale industries and welfare schemes
for poor.
(3) Regulatory: These includes registration of birth, death and marriage, maintenance of law and
order, appointment of chowkidar, etc.
(4) Discretionary functions: These include activities like levelling of pits, plantation of trees,
opening of libraries, providing relief during famine.
(5) Nyaya Panchayat: At time Panchayats provide speedy and inexpensive justice to villagers for
petty thefts, trespass, unauthorized occupation, etc.
Source of Income
1. Grants from state government determined by State Finance Commission.
2. Taxes from property, goods, land and cattle.
3. Taxes on sale of goods in fairs and make-lift bazars.
4. Income from renting out Barat Ghar, Rest Houses, etc.
5. Part of land revenue collected by state is given to them.
6. Fine imposed on offenders.
Panchayat Samiti at Block Level
The block level consists of Panchayat Samiti's to coordinate the activities of village
Panchayats in each block. About 100 villages are covered in one block. There are over 5900
Panchayat Samitis at the moment in India.
Composition
It consists of
1. All the BDCs members elected by people within the block.
2 MP and MLAs of that area.
3. Elected members of Zila Parishad from that block
4. President of marketing cooperative.
Seats are reserved for SCs & STs in proportion to their population and one third seats are reserved
for women.
Term
Its term is of 5 years. It elects a Chairperson. Its administrative head is known a Block
Development Officer (BDO).
Functions
1. Developmental functions
(a) To provide rural healthcare by opening primary health centres.
(b) To provide for drinking water, roads and regulation of markets.
(c) To make provisions for good quality seeds, fertilizers and pesticides.
(d) To develop handicraft industries.
(e) To undertake welfare of SCs, STs and backward classes.
(f) To launch rural employment programme.
2. Supervisory functions
(a) To supervise working of Gram Panchayats.
(b) To examine budget of Panchayats.
Sources of Income
1. Grants given by state government.
2. Income from taxes levied by Samiti.
3. Fixed percentage of land revenue is given to Panchayat Samitis.

Zila Parishad at District Level

Zila Parishad is the apex body by the Panchayati Raj Act.
Composition
It consists of:
1. Chairperson of Panchayat Samitis of district.
2. MPs and MLAs of the district.
3. Representatives of cooperative society.
4. Representatives of SCs, STs and women.
5. Chairpersons of Municipalities of the district.
Term: Its term is five years. Each Zila Parishad has a chairman elected by members of the
Parishad. Offices of Chairman are reserved for SCs and STs in proportion to population while one-
third seats are reserved for women.
Functions
1. Welfare Functions
(a) To undertake construction and maintenance of roads, bridges, parks libraries, dispensaries and
educational institutions.
(b) To develop land, human and water resources of the area.
(c) To provide relief during drought and distress.
(d) To promote welfare of weaker sections.
2. Supervisory Functions
(a) To supervise activities of Panchayat Samiti and Gram Panchayat.
(b) To coordinate developmental plans prepared by Panchayat Samitis in the district.
(c) To examine and approve budget of Panchayat Samiti
3. Advisory Functions
(a) The Zila Parishad gives advice to state government regarding needs of people living in rural
areas
4. Financial Functions
It gets grants from state and central government which it divides between the Panchayat Samitis.
5. Developmental Functions
To undertake schemes like irrigation, electrification, poverty alleviation public distribution, etc
Source of Income
1 Share in land revenue.
2. Taxes and Cess.
3. License fees
4 Grants from state government
5. Funds given by centre.
6 Income from property of Zila Parishad

Panchayati Raj Act, 1992 (74th Constitutional Amendment)

After independence municipal administration was restructured in the urban areas. The 74th
Constitutional Amendment Act (1992) gave a legal or constitutional status to municipal
administration by including it in Schedule XII of the Indian constitution. The Nagarpalika Act
(1992) as the 74 amendment was known, had the following features
1. It provides for Municipal Corporations or Nagar Nigams in big cities, Municipalities or
Nagarpalikas in cities with a population between 2,00,000 and 20,000 and a Nagar Panchayat is
formed below a population of 20,000.
2 Seats are reserved for SCs and STs in proportion to their population
3. One-third seats are reserved for women in Municipalities
4. Its duration is fixed for five years and if it is dissolved, elections are held within 6 months.
5. There has been devolution of power to municipalities for preparation of plans of economic
development and levying of taxes.
6. Funds have been made available from the Consolidated Fund of the state.

I. Municipal Corporation

They are established in all major cities under specific acts enacted by the state legislature
Composition
It consists of
1. General Council which consists of members elected by adult citizens registered as voters in the
area. Seats are reserved for SC/ST(s) in proportion to their population and one third seats are
reserved for women. They are called councilors. Its tenure is five years.
2. Mayor is elected by the members of the Corporation from amongst themselves. He is known as
the first citizen of the town. His functions include presiding over meetings, maintaining decorum,
receiving dignitaries and acting as channel of communication between corporation and state or
central government.
3. Standing Committees dealing with different functions like taxation, finance and preparation of
budget, health, education, etc.
4. Municipal Commissioner is the Chief Executive Officer of the Corporation and is appointed
by the state or central government. His functions include giving directions to officers of
corporation, taking part in meetings of General Council, preparing budget estimate and keeping a
check over records and files of the staff.
Functions
1. Obligatory
1 To provide for hospitals, dispensaries, vaccination, garbage disposal, checking adulteration of
milk and food stuffs, etc.
2. To provide for safe drinking water and regular supply of electricity.
3. To open primary and secondary schools and adult education centres.
4. To provide sports training to budding youngsters.
5. To look after roads, streets, shopping centres, illegal constructions, etc.
6. To keep a record of birth and death.
2. Discretionary
1. To provide for local transport
2 To establish libraries, and promote cultural activities like drama,
3 To organise fairs, exhibitions and recreational activities.
4. To launch family welfare schemes and to carry out poverty alleviation programmes.
Source of Income
1. Income from property tax, vehicle tax, theater tax, entertainment tax, tax on advertisements, etc.
2 Cess on education, water, electricity, toll tax and octroi duty 3 Income from shopping centres
and PSU's.
II. Municipalities
They are constituted in towns with a population between 20,000 and 3 lakhs.
Composition
An Elected Council consisting of councilors elected by adult members of the area. Its term is 5
years.
Eligibility for becoming a Councilor
(i) Should be 21 years of age.
(ii) Should not hold office of profit
(iii) Should be registered as a voter in Municipal area
Municipalities Officers
Municipal Chairman is elected from amongst the members themselves. S/he presides over and
meetings, is the link between municipality and governments, and has access to all records.
Executive Officer is appointed to look after day to day operations of the Municipality.
Functions
Obligatory
1. To provide for hospitals, dispensaries, vaccination, garbage disposal, checking adulteration of
milk and food stuffs, etc.
2. To provide for safe drinking water and regular supply of electricity.
3. To open primary and secondary schools and adult education centres.
4. To provide sports training to budding youngsters.
5. To look after roads, streets, shopping centres, illegal constructions, etc.
6. To keep a record of birth and death.
Source of Income
1. Income from property tax, vehicle tax, theatre tax, entertainment tax, tax on advertisements, etc
2 Cess on education, water, electricity, toll tax and octroi duty 3 Income from shopping centres
and PSU's

III. Nagar Panchayats

In small towns, the 74 amendment provides for creation of Nagar Panchayat or Town Area
Committees. The members of this Committee are elected by adult citizens registered as voters in
the town area Seats are reserved for SCs and STs in proportion to their population. One-third of
the total number of seats are reserved for women. The functions of Nagar Panchayat are similar to
that of Municipal Corporation or Municipal Committee

Working of Urban Local Government

The 74th constitutional amendment or the Nagarpalika Act has given a constitutional status to the
urban local government laying foundations for devolution of power to elected representatives at
local level. There are over 100 city corporations, 1400 town municipalities and over 2,000 Nagar
Panchayats in urban India. Some 30 Mayors are women while 500 women are Adhyaksha of Town
Municipality Women, SCs and STs have also been given adequate representation. Still however
certain hinderances like shortage of funds, party politics, undue interference of state government,
rapid increase in urban population and the rapidly increasing law and order problem pose serious
challenges to the urban administrators. The problems of housing, water, electricity, congestion,
traffic, environment and illegal construction have made handling of urban administration worse It
calls for a proactive and radical change in the functioning of local urban government to make the
dream of democratic decentralization real and pragmatic.

Decentralization of Power: District Level

Democratic decentralization has been possible due to emergence of district as the viable unit of
planning In 1984, the government had appointed a working group under C.H.Hanumanta Rao
which had recommended district as the local unit for decentralization of power because of the
following reasons

1. A district enables a clear perception of the needs of the local area

2. It improves decision making
3. It gives people a better voice in decisions related to their development and welfare
4. It helps in better coordination and integration between developmental
5. It enables felt needs of the people to be taken into account.
6. It ensure effective participation of the people programme.
7. It serves to strengthen degree self-reliance by mobilization of resources of the community in
hand or money
8. It helps in making development of local resources and identification of growth potential of local
area leading to improved productivity.
9. The task would be performed by a District Development Agency (DDA).

In addition to the above reasons, district as a unit of local planning is preferred due to the following
reasons also:
1. It has a high degree of internal consistency and well-established administrative relationship
2. Most information relating to land revenue, irrigation, land record, development loan, housing,
roads, electrification, etc is organised on a district to district basis.
3. Most departments and agencies of state governments have their original offices located on the
district level.
4. It facilitates clearer evaluation of the impact of development efforts and initiative of people in
the area.
Role of District Development Agency

The task of district planning was given to District Development Agency or District Planning
Committee. It is known differently at different places. Its functions include
1. Crystallization of local needs and objectives
2. Taking stock of natural and human resource development.
3. Listing, mapping and implementation of basic amenities
4. Formulation of district plan.
5. Formulation of policies on the basis of priority of development.
6. Coordination and implementation of the plan.
7. Monitoring and review of district plan aid programme.
Conclusion
The 73rd and 74th constitutional amendments have taken a major initiative in strengthening and
rejuvenating local self-government. The institutions below the state level, namely Panchayats,
Municipalities and Corporations have been given constitutional status. Likewise, certain functions
and their constitution after every 5 years has been made mandatory. They have raised the
expectations for the empowerment of district and lower-level institutions or of local government.
Though the results so far have not been encouraging it is time for policy makers to realize the
importance of grass root and diversified governance in a country like India with so much
diversities, imbalance and differences in needs and aspirations. National integration and
development can best be achieved by involving the people as participants in decision-making and
implementation of developmental process and not by imposing values and needs from the above.
Local government through democratic decentralization is therefore the logical solution to the
problems which engross our country
Glossary
Local Government: It is the level of government at the lowest unit or at village level.
Decentralization: It means to delegate power at lower levels of governance.
Panchayati Raj: It is the lowest level of governance at the rural level in India.
Municipalities: It is the lowest level of governance at urban level in India.