Please enable JavaScript.
Coggle requires JavaScript to display documents.
LOCAL SELF GOVERNMENT BY :ATRISHEKHAR - Coggle Diagram
LOCAL SELF GOVERNMENT BY :ATRISHEKHAR
PANCHAYATS
Gram Sabha Article 243A:
BASICS
Salient Features of the 73rd Constitution Amendment Act of 1992
BACKGROUNDER
EVOLUTION
Amendments to the Panchayati Raj Act: Several amendments have been made to the Panchayati Raj Act, including the provision for the establishment of State Finance Commissions, which determine the allocation of resources to Panchayats.
Balwant Rai Mehta Committee (1957): The committee recommended the establishment of a three-tier Panchayati Raj system consisting of Gram Panchayats, Panchayat Samitis, and Zila Parishads.
Constitutional Amendment (73rd Amendment) Act, 1992: This amendment gave constitutional status to the Panchayati Raj system and added a new Part IX to the Constitution, which contains provisions relating to Panchayats. It provided for a three-tier system of Panchayats - Gram Panchayats, Panchayat Samitis, and Zila Parishads. It also provided for the reservation of seats for women and scheduled castes and tribes.
Ashok Mehta Committee (1977): The committee recommended the establishment of a two-tier Panchayati Raj system consisting of Gram Panchayats and Zila Parishads.
Constitutional Amendment (74th Amendment) Act, 1992: This amendment provided for a similar system of local self-government for urban areas, known as Nagar Palikas or Municipalities.
• This act added Part-IX to the Constitution.
• This act also added new articles from 243 to 243 O (English alphabet ‘O”).
This means 243A, 243B, 243C …243O
• The 73rd amendment act also added the 11th schedule to the Constitution of India.
• The schedule contains 29 functional items of the Panchayats. It deals with Article 243 G
• DPSP - The act has given a practical shape to Article 40 of the Constitution
Types of Provisions in Part IX
Voluntary Provisions
May’ be enforced (Left to state discretion)
Composition: Functions, Power and resources of PRI
Vary from state to state
Compulsory Provisions
‘Must’ be enforced
‘Uniform’ across India
Composition: Structure,
composition, term, Tenure of PRI's
3 tier structure (Article 243 B)
Village Level – Village Panchayat
Mandal/Block Level – Mandal/Block Panchayat
Zilla Parishad – District Level
▪ The structure is ‘compulsory’ in all states with more’ than 20 lakh population.
▪ For states having ‘less than 20 lakh population ‘intermediate level’ ‘may’ not be constituted.
● As of August 2023, there are 7,933 urban local bodies (ULBs) in India, including
4,678 municipal corporations, 2,062 nagar palikas, and 1,193 nagar panchayats.
● In the financial year 2022-23, ULBs in India generated a total revenue of ₹3.2 lakh crore, of which ₹1.7 lakh crore came from taxes and fees, and ₹1.5 lakh crore from grants from state and central governments.
● As of August 2023, ULBs in India have completed 100% of the targets set under the Swachh Bharat Mission (Urban), resulting in the construction of over 2.6 crore individual household toilets and over 6 lakh community toilets
It is a village assembly consisting of all the registered voters within the area of the panchayat, deemed to be the primary body of the Panchayati Raj system.
It exercises powers and performs such functions as determined by the state legislature.
Areas where Gram Sabha can be effective
• Social Audit -hether the scheme has
• Creating Awareness about the Government Programmes
• Identification of Beneficiaries -
• Improving Transparency & Accountability -
increases transparency and accountability.
• Fixation of Priorities of development -
• Strengthen Direct Democracy -
Problems in the Working of the Gram Sabha
• Large and unwieldy in size -
• Lack of appreciation as to the nature of the body -
• Prolonged Meetings -
• Irregular Meetings -
• Poor Participation of Women -
• Meetings characterized by Class, caste, and gender divides -
Gram Sabha is the ‘foundation’ of the Panchayati raj system.
All ‘registered voters’ of a ‘Gram
Panchayat’ make up the ‘Gram Sabha’.
Village Level
Gram Sabha
(every citizen living in a village) elects the Gram Panchayats (a council of elected representatives) to govern the village. The Gram Panchayat is elected for five years.
Gram Panchayats
Gram Panchayat is the smallest unit of the Panchayati Raj system in India, and it acts as a local self-government body in rural areas.
Development of the village(infrastructure),
revenue collection (levied by the state government),
Organizing social functions, Disaster management(management/relief/rehabilitation),
Community development (engage participation, promote social harmony, provide services)
Maintenance of records(births/deaths/marriages); issues certificates(caste/income/residence),
poverty alleviation programs,
Block level
The members of the Panchayat Samiti are elected directly by gram sabhas.
Panchayat Samiti
Planning and implementation of rural development programs, Resource mobilization, Coordination with Gram Panchayats within the block, supervises gram panchayats functioning, Disbursement of funds, Monitoring and evaluation of the progress of rural development programs/schemes
District level
The members of the Zila Parishad are elected directly by gram sabhas.
Zila Parishad
Zila Parishad is the highest level of the Panchayati Raj system in India, responsible for the overall development and management of a district.
At the District level, infrastructure development, health, education, and poverty alleviation programs;
Zila Parishad mobilizes resources for rural development from various sources like the state government, central government, and other sources such as NGOs, private sector organizations, and international agencies
Zila Parishad coordinates with the lower-level Panchayati Raj institutions, such as Panchayat Samiti and Gram Panchayats, to ensure effective implementation of development programs and schemes;
Zila Parishad is responsible for encouraging entrepreneurship, promoting education and healthcare, and creating employment opportunities
FUNCTIONS
• Considers the Annual Budget of Panchayat
• Considers the Annual Audit report
• Considers the Annual Administration report
• Performs the Social Audit of Government Schemes
In some states:
o It identifies beneficiaries
o Selection of schemes to be implemented
In some states such as Chhattisgarh and Madhya Pradesh, the Gram Sabha has been given the
Power to Recall.
Article 243 C – Composition of Panchayats
Composition – Chairperson + Members
Chairperson – at ‘village level’ shall be elected as the state legislature may determine.
Election – All the ‘members’ of PRI are ‘direelected.
Chairperson at district + Intermediate level –
‘Indirectly’ elected by and amongst the elected
members themselves.
MP’s of Lok Sabha + MLA’s can attend
‘Panchayat meeting’ in their ‘constituency’
MP’s of Rajya Sabha + MLC’s can
attend Panchayat meeting (registered voters)
States ‘may’ also allow for ‘co-opted members’ –
Co-opted members are those who are ‘not ‘voted’ but appointed because of some special qualification.
Article 243 D – Reservations of seat
SC/ST (At all three level)
In 'proportion' of the population
Women Reservation
Minimum 33% reservation
'Minimum' means reservation ‘can’ be more than 33%
NAGALAND issue with women reservation
The state legislatures may make any provision for
reservation of seats in any panchayat or offices of chairpersons in the Panchayat at any level in favour
of backward classes.
Article 243 E – Duration of Panchayats -
Duration – 5 years
Elections – ‘Must' be held before completion of tenure.
Provisions during ‘dissolution’ of Panchayats – If dissolved before 5 years, elections ‘must’ be held within 6 month
Duration of the newly constituted Panchayat - It will continue ‘only’ for the remainder of the period.For example, Panchayat dissolved in 2.5 years, New Panchayat - + 2.5 years only
Article 243 I – State Finance commission
The State Finance Commission is constituted by the
Composition, conditions of service, salaries and allowances ae determined by “State Legislature” by law
It recommends about the division of net proceeds of taxes, duties, tolls and fees leviable by the state may be divided between the state government and the Panchayats.
How allocation would be made among various levels of Panchayats.
The determination of taxes, duties, tolls and fees that may be assigned to the panchayats.
Also recommends that grants-in-aid be given to the panchayats.
Article 243 K – State Election commission
(Elections to the Panchayats.)
▪ Article 243K provides for the constitution of a state Election Commission.
▪ It is a single member body unlike ‘Election commission’ which is a multi – member body.
▪ The State Election Commissioner is appointed by the Governor.
▪ His removal procedure is same as that of ‘’Judge of High court’’.
▪ His service conditions cannot be varied to his disadvantage.
▪ State Legislature has the power to legislate on all matters relating to elections to panchayats.
Article 243F -disqualification
If a person is disqualified under any law made by the
state legislature.
No person can be disqualified on the grounds that
he is less than 25 years of age if he has attained the age of 21 years.
All questions of disqualifications shall be referred to
such authority as the state legislature determines.
If a person is disqualified under any law for the time
being in force for the purpose of elections to the Legislature of the state concerned.
Article 243G - 243H- Powers, Authority and
Responsibilities of Panchayats
The panchayats may be entrusted with theresponsibilities of
Preparing plans for ‘economic development’ and ‘social justice’.
Implementation of schemes for ‘economic development’ and ‘social justice’.
With regard to the subjects that are mentioned in the 11th schedule of the Indian Constitution.
Article 243 M – Part 9 does not apply to the
following areas
4 more items...
MUNCIPALITIES(ULBs)
08 types of urban local governments in India
Election Of Municipalities
State Finance Commission
Powers, Authority And Responsibilities Of Municipalities
Qualification For Membership Of Municipalities
Duration Of Municipalities (Article 243U)
Reservation Of Seats For Scheduled Castes, Scheduled Tribes And Women (Article 243T)
Composition Of Municipalities (Article 243R)
7 more items...
Women: Out of the total number of seats to be filled by direct election at least 1/3rd seats would be reserved for women, including the number of seats reserved for the women belonging to SC and ST.
1 more item...
SCs and STs: As in Part IX reservations of seats are to be made in favor of the Scheduled Castes and Scheduled Tribes in every Municipality in the proportion of their population.
Chairperson: it has been left to the State legislature to prescribe by law the manner of reservation of the offices of the Chairpersons of Municipalities.
Backward Classes: The state legislature may make provisions for reservation of seats or offices of the chairpersons in favour of the backward classes.
Every Municipality has a term of five years and every municipality is given a reasonable opportunity to be heard before its dissolution.
Elections to constitute a Municipality shall be completed before the expiry of the period of 5 years, and in case of dissolution earlier the elections must be conducted within 6 months of the dissolution.
Article 243V provides that all the persons who are qualified to be chosen to the state legislature shall be qualified for being a member of a Municipality.
The minimum age for contesting elections is 21 years.
Disqualification: All the questions of disqualification shall be referred to such authority as the state legislature determines.
According to Article 243W of the Constitution, the Legislatures of States have been conferred the power on Municipalities all such powers and authority as may be necessary to enable them to function as institutions of self-government. It has specifically been mentioned that they may be given the responsibility of:
Preparation of plans for economic development and social justice
Implementation of schemes as may be entrusted to them
In regard to matters listed in the 12th schedule of the Indian Constitution.
Power to impose taxes and financial resources: A State Legislature may by law authorise a Municipality to levy, collect and appropriate taxes, duties, tolls etc. It can also assign to a Municipality various tax, duties, etc collected by the state government. Grants-in-aid to the Municipalities from the Consolidated Fund of a State.
The Finance Commission constituted under Article 243I shall also review the financial position of the Municipalities (Article 234Y) and make recommendation as to:
The distribution between the State and the Municipalities of the net proceeds of taxes, duties, tolls and fee by the State which may be divided between them and how allocation of shares amongst various levels of Municipalities.
The taxes, duties, tolls, and fees may be assigned to the Municipalities.
Grants-in-aid to be given to the Municipalities.
The measures needed to improve the financial position of the Municipalities.
Any other matter that may be referred to by the Governor.
Article 234Z provides for the audit of accounts of Municipalities.
The State Election Commission appointed under Article 243K shall have the power of superintendence, direction and control of the preparation of electoral rolls and the conduct of all elections to the municipalities. The state legislature may make provision with respect to all matters relating to elections to the municipalities.
Bar to interference by courts in electoral matters: The courts shall have no jurisdiction to examine the validity of a law, relating to delimitation of constituencies or the allotment of seats made under Article 243ZA. An election to the Municipality can be called in question only by an election petition which should be presented to such authority and in such manner as may be prescribed by or under any law made by the State Legislature.
Municipal corporation
Municipality
Notified area committee
Town area committee
Cantonment board
Township
Port trust
Special purpose agency
evaluation
Fiscal Challenges
Political Challenges
Administrative Challenges:
Political Interference: Political considerations often influence key appointments and decisionmaking within ULBs, affecting their autonomy and efficiency
Bureaucratic Hurdles: ULBs often face bureaucratic red tape and resistance from the state administration, hindering their efficient functioning.
Lack of Technical Capacity: Many ULBs lack the technical expertise required for effective urban planning and service delivery, making them dependent on the state government for support.
OTHER
Problems of Urban Administration
Haphazard and unplanned Urbanization
Unmitigated migration: Migration from rural areas to urban areas, in search of better opportunities.
o Overcrowding of cities: This migration is leading to the overcrowding of the cities
o Crippling Infrastructure:
Increasing Slums
Increasing health-related problems
Increasing Poverty
Increasing Poverty
Traffic Congestion
To avoid this many cities have tried Pedestrianisation of many paths -meaning vehicles allowed only
up to a certain point, and rest in a no vehicle zone. Example Chandni Chowk.
The other way is Congestion levy-A tax on the already congested area for those contributing to the =congestion.
Allowing only public transport in certain areas and no private vehicles.
Exponentially increase the Parking Fee
Exponentially increase the Parking Fee
Power and water shortages
Rising Crimes, especially against women
Massive corruption-
Poor devolution of funds, functions and functionaries (3Fs)
Absence of Urban way of Life
Lack of Quality Leadership
The focus shift on rural areas
Institutional Jungle
There are many parallel bodies operating at the municipal level in the urban
centre often with overlapping functions and responsibilities, much like the ones at the local rural level.
o Delhi has three Municipal corporations for providing local services.
o Some powers of local administration are with the Delhi Government.
o In Delhi, some powers such as law and order and land management are with the Central Government.
o Also, there are certain specialised bodies like the Delhi Development Authority (DDA) which exists for land management.
● Lack of Political Will: In some cases, the lack of political will at the state level contributes to the reluctance to empower ULBs.
● Resistance to Devolution: Powerful interest groups may resist devolution of powers and finances to ULBs, fearing the loss of influence and control.
● Urban-Rural Divide: Political considerations sometimes prioritise rural areas over urban ones, leading to neglect of urban governance and services.
● Election-Driven Priorities: Local elections are often driven by populist agendas rather than longterm urban planning and development
● Inter-Municipal Cooperation: Inefficient coordination and cooperation between neighbouring ULBs can hinder regional development and service delivery
Legal and Regulatory Framework: Ambiguities and inadequacies in the legal framework governing
ULBs can lead to conflicts and delays in decision-making
● Inadequate Revenue Sources: ULBs rely heavily on property taxes and user charges, which are often insufficient to meet their financial needs for infrastructure development and service provision.
● Limited Access to Capital Markets: Most ULBs struggle to access capital markets for long-term inancing, constraining their ability to undertake major projects.
● Poor Financial Management: Weak financial management practices, including budgeting and accounting, contribute to fiscal inefficiency within ULBs.
● Inconsistent Grants: State governments often provide grants to ULBs in an ad-hoc manner, creating uncertainty in their financial planning.
● Dependence on Central Transfers: ULBs also depend on central government schemes and transfers, making them vulnerable to shifts in national policies and priorities.
Types of Municipal Government in India
Bombay Pattern
Most of the states in India follow the Bombay pattern. It is based upon the Executive-Deliberative Dichotomy
The executive and deliberative body are kept separate at the municipal level. The real
executive powers of the centre and the state lies with the Prime Minister and the Chief Minister respectively, but this is not the case with the Mayor of the Municipal Corporation
Rather the Municipal
Commissioner vests with many such powers and he is the head of executive administration of the municipality.
Meaning that the Mayor is a presiding officer and the real executive power is with the
Municipal Commissioner.
Also, the appointment, posting and transfer of the Municipal Commissioner is at the will of the state
government and people cannot remove him.
Howrah/Calcutta Pattern
In this type of pattern, the Mayor is not the presiding officer of the corporation rather he is the elected Representative.
The real executive powers reside with the Mayor.
The person who is chosen as the
Municipal Commissioner works directly under the Mayor here.
Significance of the 73rd Constitutional Act and Gram Sabha
New Respectability - It has brought new respectability to the local bodies as it has been referred to as the new Magna Carta of the local self-government.
Separate Functional Domain -There is a separate functional domain to be dealt with the local
bodies that is the schedule XI (29 subjects) and XII (18 subjects) which has been mentioned in the constitution.
• Regular Election -There are regular elections at an interval of five years as now it is a constitutional provision. Supersession of Panchayat (premature termination) has become difficult.
The elections of the local bodies are handled by the independent State Election Commission which
earlier was done by the state government.
• Separate Finance Commission and State Election Commission -The position of local bodies in terms of finances has improved as compared prior to 1992.
An independent separate state finance
commission has been established which will review the position of the local bodies recommend to the state the devolution of resources to the local bodies.
Provision for weaker section -The 73rd Amendment Act has helped in expanding the social base
of politics in India by including the weaker section such as the SCs/STs and women as well
This
has been referred to as the "Rise of newly Enfranchised" and "silent revolution" by some scholars.
SOME BEST PRACTICES
● Kerala stands out as a state that has made significant efforts to empower ULBs. They have delegated powers and responsibilities to municipal bodies, resulting in better urban governance.
● On the contrary, in states like Bihar and Uttar Pradesh, ULBs often lack adequate resources and authority, leading to poor service delivery and urban development.
● Surat Municipal Corporation, Gujarat: Known for its efficient waste management and urban planning. Surat has received recognition for cleanliness and innovative projects
● Navi Mumbai Municipal Corporation, Maharashtra: Known for its well-planned infrastructure and urban . It has received praise for its efficient governance.
● Indore Municipal Corporation, Madhya Pradesh: Recognized for its cleanliness and waste management initiatives. It has consistently ranked high in the Swachh Survekshan rankings.
Evaluation of the Working of the PRls
The State control over the PR ls is needed because of the following reasons:
Balance Regional Development
State Governments provide funds, administration & technical assistance
Means of State Control
wherever a bit of
encouragement (spur) is required, and a bit of control (rein) is required, the state government uses very direct, crippling, invasive, and very diabolic control (hammer) over the PR ls.
Key Officials are state government appointees
Superseding power with the state
Suspends and Remove members
Suspend Resolution passed by PRls
Vertical Budgetary Approval
Binding Directions
Audit of PR ls Accounts
Order enquiries into affairs of PRls
Maximum and Minimum of Powers decided by the State Government
Tied Grants
Legal Creation of the State
Lack of adequate politico-bureaucratic will or vision
-the rise of local and
village level politicians.
This saps the political will at the state level as they see them as a threat to their
own power.
More powers going to the local bodies means fewer decision-making powers with the bureaucratic
apparatus. So, it is seen as a threat to their own authority.
Social Landscape
PATRIARCHY
FEUDALISM
CASTEISM
Caste still plays a role in the following ways:
• Article 243 D (w.r.t. the quota ofSCs/STs) has not been implemented faithfully.
• Rotational Policy -the five-yearly rotational policy does not give sufficient time for the elected member to make lasting ties with the people of its constituencies.
• The creamy layer has benefitted more among the backward classes.
• Proxy Candidates -the concept of sarpanch pati is seen where women seats are reserved and other reserved seats as well.
• Violent Backlash faced by the backward class. They have also been killed often referred to aPanchayat Martyrs.s
• Restrictive Qualification imposed by the State government for the candidates.
States imposed educational qualifications which is troublesome more for the backward classes as their educational attainment is less than the non-backward classes
The educational norm was upheld by
the apex court in the Raj Bala Case of 2015 (State of Haryana).
The result of this judgement in Haryana was:
3 more items...
Other Provisions of Haryana Panchayat Act
Functional Toilet-
No arrears to cooperative banks
No arrears of Electricity Bill
Accused of an offence which attracts a punishment of 10 years or more
Regonalism
Massive Corruption
Existence of parallel bodies and programmes
District Administration
The existence of bodies like Parastatals like DRDA, DUDA, DHSS
,-Agencies like District Rural
Development Agency (DRDA), District Urban Development Agency (DUDH) and District Health and Sanitization Society (DHSS) are parastatal bodies.
These bodies are neither complete state
nor completely non-state
Such bodies should be discontinued (as also recommended by the 2nd ARC), as they have
overlapping responsibilities and functions with the district administration and PR ls.
Parallel Programmes like MPLAD & MLALAD
In 1993, Narsimha Rao Government enacted the
MPLAD scheme in 1993, following which several states started with the MLALAD schemes.
Parallel programmes like
these are out of the purview of these local bodies which again causes conflict between these two.
Creation of additional parallel agencies such as water user groups
NGOs
Khap Panchayats
Increasing Criminality & Rampant use of money & muscle power in local body Politics
The journey from the Panchayat Swabhiman (Pride) to Panchayat Cynicism has indeed been very short.
Inadequate Organizational Structure
34% of the Gram Panchayats do not even have a secretariat or office building. The official
work is done from the residence of the chairperson of the Panchayats.
Poor Devolution of Funds, Functions and Functionaries (3F)
The
Funds
given are inadequate and are tied funds.
Inelastic taxes -
The taxes which have been given to the local bodies practically have no or very little yield such as boats, rickshaws, tea stalls and vehicles.
PRls do not make use of limited taxation power-
They do not use their taxation power due to the fear of backlash from the people who are closely in contact with the community.
State Grants uncertain, irregular, and tied -
The grants which come from the state are generally uncertain, many times irregular and very often tied.
No Market for loans -
The PR ls has very restrictive borrowing powers which have to be approved by the state governments.
Hence, they do not have a market to borrow loans.
State Finance Commission (SFC) has been a near-complete disaster -The problems with the SFC are as follows:
Periodicity not maintained
The periodicity to set up SFC at the interval of 5-years has not been maintained by most of the states.
-Only four states have set up their 6th finance commission.
Inadequate survey of local finances -
The SFC conducts an inadequate survey of the local bodies.
Poor quality of members-The qualifications of the members of the SFC are not mentioned as a result
the quality of the members in the SFC is poor.
The recommendation of the SFCs is only advisory in nature and hence, a large number of recommendations are rejected by the state government
Also, those accepted by the State, are not notified in the state gazette
No synchronization with UFC(union fin com)
The quality of the SFC reports is poor in quality.
Delay in submission of the reports and Action Taken Report (ATR)
Tied nature of funds
Though the funds are available to the local bodies, but most of them are tied
funds which mean they can be used only for a specific purpose only and not as per the demands and needs of the PR ls
Close to an average, 93% of the funds are tied.
The
Functions
mentioned in the eleventh schedule (29 subjects) are not fully transferred to the
Panchayats. They have been inadequately devolved.
Devolution Index (0-1): A score is assigned to every state in terms of devolution index ranging from
0 to 1, where a higher score means higher devolution.
The devolution index has been divided into
two parts by the ministry of Panchayati Raj:
Devolution in Policy: The powers devolved on the papers presented by the state governments.
Devolution in Practice: Based on the field survey, whether those powers have been devolved or
not.
The ranks are prepared separately on both parts. The states have ranked differently on both
Devolutions in Policy and Practice. And 92% of the states have a score of less than 0.5.
The
Functionaries
, which is the staff at the Panchayat level, is appointed and controlled by the
State. There are frequent transfers of these functionaries with very small tenures
The notion of
Functionality
:
The training to govern the 3 Fs is missing at the Panchayat level.
Even if the 3 Fs are properly devolved, then the notion of functionality
comes into the picture, meaning they do not have the capacity to use the 3 Fs properly.
PRI have become instruments for implementation of the Centrally Sponsored Schemes (CSS) and the State Sponsored Schemes (SSS)
Agriculture
-In some states like Karnataka, the state government transferred some schemes from the agriculture and animal husbandry department to the Panchayats and they failed miserably.
The failure
was on account of a lack of technical expertise which was not transferred from the concerned ministry to the local bodies
Whereas in states like Gujarat and Tamil Nadu, PRls have been able to improve the agricultural production in their areas.
Weaker Section Development
The weaker section has been empowered by the silent revolution and the expansion of the social base of politics in India and the rise of the newly enfranchised.
Some states have instructed the local bodies to set up dedicated committees amongst their members to look after the needs of the weaker section
A few of these committees are the Darji Committee (Gujarat) and Sadiq Ali Committee (Rajasthan) which found out that these respective states were unable to address the needs of the weaker sections.
Education
-In many states, primary and secondary education has been devolved to the local bodies and the picture here too is uneven across the states.
Between political development and socio-economic development, the former has been better realized
than opposed to the latter.
Critical analysis of the recommendation of the 15th Finance Commission Recommendations on grants to the local bodies.
The primary task of the Union Finance Commission (FC) is to rectify the vertical and horizontal imbalances between the Union, the States, and the Local bodies.
Part IX and Part IX-A of the Constitution mandate the FC to supplement the resources of panchayats and municipalities.
t should be on the basis of the recommendations of the State Finance Commission.
Local governance in India consists of nearly 2.5 lakh local governments and over 3.4 million elected representatives.
The significance of Local governments was highlighted during the Pandemic.
The Gram Sabha and other participatory institutions were instrumental in containing the crisis and delivering social protection in India
lacunas in the recommendation of the 15th FC
Positives
First, the Grants to local bodies are high compared to the previous Finance Commission.
For example, Finance Commission has granted Rs 4,36,361 crore from the central divisive tax pool to local governments.
Second, it will strengthen cooperative federalism.
60 percent fund is earmarked for national priorities. (drinking water, rainwater harvesting, sanitation, etc.,).
Concerns
First, the 15th FC has failed to provide
Performance-based grants
for the Panchayati raj. introduced by the 13th Finance Commission.
It earmarked 35% of local grants specifying six conditions for panchayats and nine for urban local governments
For example, the establishment of an independent ombudsman, notifying standards for service sectors such as drinking water and solid waste management, etc.,
Performance-linked conditionality is vital for improving the quality of decentralised governance, especially in underperforming local bodies.
By neglecting the Performance-based grants, 15th FC has failed to acknowledge the transformative potential in it.
Second, there are no entry-level criteria specified for Gram Panchayats to avail grants.
Third, the 15th FC has missed the opportunity to ‘restructure the public finance’ for greater fiscal decentralization in providing basic services.
Fourth, the 15th FC has used the criteria of the population (2011 Census) with 90% weightage and area 10% weightage for determining grant to local governments.