Introduction to Panchayati Raj Institutions
Panchayati Raj Institutions (PRIs) form the backbone of grassroots governance in India, providing a mechanism for decentralized decision-making and participatory democracy. As self-governing institutions at the village, intermediate, and district levels, PRIs aim to empower rural communities and ensure local administration is responsive to their unique needs. Enshrined in the 73rd Constitutional Amendment Act (1992), PRIs represent India’s commitment to inclusive development and the decentralization of power.
PRIs play a critical role in addressing rural challenges, promoting socio-economic development, and ensuring accountability at the local level. Their mandate spans various functions, including rural development, primary education, healthcare, sanitation, and resource management, as listed in the Eleventh Schedule of the Constitution.
Historical Background of Panchayati Raj in India
The roots of Panchayati Raj in India can be traced back to ancient times, evolving over centuries:
1. Ancient Period
- The concept of self-governance existed in ancient India, with village assemblies known as Sabhas or Samitis managing local affairs.
- These assemblies were democratic in nature and dealt with social, economic, and judicial matters at the village level.
2. Medieval Period
- During the medieval era, particularly under Mughal rule, the autonomy of village panchayats declined due to the establishment of a centralized feudal structure.
- However, informal panchayats continued to function as community-driven bodies for dispute resolution and local governance.
3. Colonial Period
- The British initially ignored local governance but gradually recognized its utility for rural administration. Key milestones include:
- Ripon Resolution (1882): Introduced by Lord Ripon, it advocated for local self-governance and is considered the foundation of modern Panchayati Raj.
- Government of India Acts (1919 and 1935): These acts introduced limited provisions for local governance, including rural boards.
- Despite these efforts, local governance remained restricted, with limited autonomy and representation.
4. Post-Independence Era
- Post-independence, strengthening local governance became a priority for inclusive rural development. Significant developments include:
- Balwant Rai Mehta Committee (1957): Recommended a three-tier Panchayati Raj system (village, block, district) to implement rural development programs.
- Ashok Mehta Committee (1977): Highlighted the need to strengthen Panchayati Raj and recommended direct elections for leadership positions.
- G.V.K. Rao Committee (1985): Suggested integrating PRIs with rural development programs.
5. Constitutional Status (73rd Amendment Act, 1992)
- The 73rd Constitutional Amendment Act gave PRIs constitutional recognition, ensuring their structure, powers, and responsibilities.
- Key provisions include:
- Three-tier structure: Gram Panchayat (village level), Panchayat Samiti (intermediate level), and Zila Parishad (district level).
- Regular elections: Mandatory elections every five years.
- Reservation: Quotas for Scheduled Castes, Scheduled Tribes, and women.
- State Finance Commissions (SFCs): Established to recommend resource allocation to PRIs.
Balwant Rai Mehta Committee
- Formed in 1957 to review Community Development Programme (1952) and National Extension Service (1953).
- Chaired by Balwant Rai G. Mehta to suggest measures for improvement.
- Recommended a three-tier Panchayati Raj system: Gram Panchayat, Panchayat Samiti, and Zila Parishad.
- Direct elections for Gram Panchayat; indirect elections for Panchayat Samiti and Zila Parishad.
- Entrusted planning and development activities to Panchayati Raj institutions.
- Panchayat Samiti designated as the executive body.
- Zila Parishad served as the advisory, coordinating, and supervisory body.
- District Collector proposed as the Chairman of Zila Parishad.
- Advocated genuine power transfer and financial resources to these bodies.
- Suggested evolving a system for further decentralisation.
- Recommendations accepted by National Development Council in January 1958.
- Rajasthan implemented Panchayati Raj first on October 2, 1959, followed by Andhra Pradesh.
- States allowed flexibility in structure; Rajasthan adopted a three-tier system, Tamil Nadu a two-tier, and West Bengal a four-tier system.
- Nyaya Panchayats were introduced in some states for petty judicial cases.
Ashok Mehta Committee
Background:
- Formed: December 1977 by the Janata Government.
- Chairman: Ashok Mehta.
- Report Submitted: August 1978 with 132 recommendations to revive Panchayati Raj.
Key Recommendations:
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Replace the three-tier system with a two-tier system:
- Zila Parishad at the district level.
- Mandal Panchayat for a group of villages (15,000–20,000 population).
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District to be the primary unit for decentralisation under public supervision.
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Zila Parishad to act as the executive body responsible for district-level planning.
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Political parties to participate at all levels of Panchayat elections.
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Panchayati Raj institutions should have taxation powers to raise their own financial resources.
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Regular social audits by a district agency and a committee of legislators to ensure proper fund utilisation for vulnerable groups.
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State governments should avoid superseding Panchayati Raj institutions; if necessary, elections must occur within six months.
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Nyaya Panchayats should function separately from development panchayats and be presided over by a qualified judge.
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Panchayati Raj elections to be organised by the Chief Electoral Officer of the state in consultation with the Chief Election Commissioner.
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Development functions and staff should be transferred under the control of Zila Parishad.
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Voluntary agencies to mobilise public support for Panchayati Raj.
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A Minister for Panchayati Raj to be appointed in the State Council of Ministers.
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Reservation of seats for SCs and STs based on their population.
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Panchayati Raj institutions should receive constitutional recognition to ensure their status and continuous functioning.
Outcome:
- Recommendations could not be implemented at the central level due to the fall of the Janata Government.
- Karnataka, West Bengal, and Andhra Pradesh adopted some recommendations to strengthen Panchayati Raj.
G.V.K. Rao Committee
Background:
- Formed: 1985 by the Planning Commission.
- Purpose: Review administrative arrangements for rural development and poverty alleviation.
- Highlighted the bureaucratisation of development administration, weakening Panchayati Raj, calling it “grass without roots.”
Key Recommendations:
- Zila Parishad should be the central body for planning and managing all district-level development programmes.
- Panchayati Raj institutions at district and lower levels should have a major role in planning, implementation, and monitoring of rural development programmes.
- State-level planning functions should be decentralised to district-level planning units for effective district planning.
- A post of District Development Commissioner should be created to serve as the CEO of Zila Parishad and oversee all district-level development departments.
- Regular elections for Panchayati Raj institutions should be ensured.
Importance:
- Emphasised district as the main unit for planning and development under Panchayati Raj institutions.
- Advocated reducing the developmental role of the District Collector and prioritising Panchayati Raj in local planning.
Comparison with Other Committees:
- Differed from the Dantwala Committee (1978) and Hanumantha Rao Committee (1984), which assigned the District Collector a central role in decentralised planning.
- Recommended strengthening the democratic decentralisation process by reducing bureaucratic control and empowering Panchayati Raj institutions.
Outcome:
- Assigned a leading role to Panchayati Raj institutions in local planning and development, contrasting with earlier committees' preference for bureaucratic control.
L.M. Singhvi Committee
Background:
- Formed: 1986 by the Rajiv Gandhi Government.
- Purpose: To prepare a concept paper on ‘Revitalisation of Panchayati Raj Institutions for Democracy and Development.’
Key Recommendations:
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Constitutional Recognition:
- Panchayati Raj institutions should be constitutionally recognised and protected.
- A new chapter should be added to the Constitution for their preservation and regular functioning.
- Ensure free and fair elections to Panchayati Raj bodies.
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Nyaya Panchayats:
- Establish Nyaya Panchayats for clusters of villages to handle minor disputes.
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Reorganisation of Villages:
- Villages should be reorganised to make Gram Panchayats viable.
- Highlighted the Gram Sabha as a symbol of direct democracy.
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Financial Resources:
- Empower Village Panchayats with more financial resources for their functioning.
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Judicial Tribunals:
- Establish tribunals in each state to handle disputes related to Panchayati Raj elections, dissolution, and functioning.
Significance:
- Laid the foundation for constitutional amendments leading to the 73rd Amendment Act (1992), which provided Panchayati Raj institutions constitutional status.
Thungon Committee
Background:
- Formed: 1988 as a sub-committee of the Consultative Committee of Parliament under P.K. Thungon.
- Purpose: To examine the political and administrative structure in districts for effective district planning.
Key Recommendations:
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Constitutional Recognition:
- Panchayati Raj institutions should be recognised in the Constitution.
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Three-Tier System:
- Village, block, and district-level panchayats as part of the Panchayati Raj structure.
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Zila Parishad as Central Agency:
- Zila Parishad to be the pivot of the system and act as the planning and development agency for the district.
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Fixed Tenure:
- Panchayati Raj bodies should have a fixed five-year tenure.
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Limited Super Session:
- The maximum period for the super session of a Panchayati Raj body should be six months.
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State-Level Planning Committee:
- A planning and coordination committee should be established under the state planning minister, with Zila Parishad presidents as members.
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Subjects for Panchayati Raj:
- A detailed list of subjects for Panchayati Raj should be prepared and included in the Constitution.
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Reservation Policy:
- Reservation of seats across all tiers should be based on population.
- Include reservation for women in Panchayati Raj institutions.
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State Finance Commission:
- Each state should establish a finance commission to define criteria for devolving finances to Panchayati Raj institutions.
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District Collector's Role:
- The District Collector should serve as the chief executive officer of the Zila Parishad.
Significance:
- Played a role in shaping the provisions of the 73rd Constitutional Amendment Act (1992) by recommending a robust and decentralised Panchayati Raj system.
Gadgil Committee
Background:
- Formed: 1988 under V.N. Gadgil, by the Congress Party.
- Purpose: To suggest ways to make Panchayati Raj institutions more effective.
Key Recommendations:
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Constitutional Status:
- Panchayati Raj institutions should be given constitutional status for their recognition and protection.
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Three-Tier System:
- Panchayats should be established at village, block, and district levels.
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Fixed Term:
- The tenure of Panchayati Raj institutions should be fixed at five years.
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Direct Elections:
- Members at all levels of Panchayati Raj should be directly elected.
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Reservation:
- Seats should be reserved for SCs, STs, and women in Panchayati Raj institutions.
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Planning for Socioeconomic Development:
- Panchayats should prepare and implement plans for socioeconomic development, with a list of specific subjects outlined in the Constitution.
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Financial Empowerment:
- Panchayati Raj bodies should have the authority to levy, collect, and appropriate taxes and duties.
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State Finance Commission:
- A State Finance Commission should be set up to allocate funds to Panchayati Raj institutions.
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State Election Commission:
- A State Election Commission should conduct elections for Panchayati Raj institutions.
Significance:
- The recommendations provided the framework for the 73rd Constitutional Amendment Act (1992), granting Panchayati Raj institutions constitutional status and protection.
Constitutionalisation of Panchayati Raj Institutions
Rajiv Gandhi Government (1989)
- 64th Constitutional Amendment Bill:
- Introduced: July 1989 in the Lok Sabha by the Rajiv Gandhi government to give constitutional status to Panchayati Raj institutions.
- Opposition: The bill was opposed in the Rajya Sabha, mainly for centralisation concerns in the federal system.
- Outcome: The bill was passed in the Lok Sabha but not approved by the Rajya Sabha.
V.P. Singh Government (1989-1990)
- National Front Government's Initiatives:
- After taking office, the V.P. Singh government focused on strengthening Panchayati Raj institutions.
- Conference: A two-day conference of state chief ministers was held in June 1990 to discuss strengthening Panchayati Raj.
- New Bill: A new constitutional amendment bill was introduced in September 1990 in the Lok Sabha.
- Outcome: The bill lapsed after the fall of the government.
Narasimha Rao Government (1991-1993)
- P.V. Narasimha Rao's Approach:
- The Congress government under P.V. Narasimha Rao reintroduced the concept of constitutionalising Panchayati Raj, modifying the proposals to address earlier controversial aspects.
- 73rd Constitutional Amendment Act:
- The modified bill was introduced in September 1991 and passed by both Lok Sabha and Rajya Sabha.
- Came into force on 24 April 1993.
Significance
- 73rd Constitutional Amendment Act, 1992:
- The Act gave constitutional status to Panchayati Raj institutions and made them an integral part of the governance system in India.
- It established a three-tier system for Panchayati Raj: village, block, and district levels.
73rd Amendment Act of 1992
Key Features of the Act
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New Part-IX:
- The Act added a new Part-IX to the Constitution titled ‘The Panchayats’ (Articles 243 to 243 O).
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Eleventh Schedule:
- A new Eleventh Schedule was added to the Constitution, listing 29 functional items for Panchayats (Article 243-G).
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Implementation of Article 40:
- The Act gave practical shape to Article 40 of the Constitution, which directs the state to organize village panchayats and empower them for self-government.
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Constitutional Status:
- The Act conferred constitutional status on Panchayati Raj institutions, bringing them under the justiciable part of the Constitution, meaning states are now constitutionally obligated to establish and conduct Panchayats as per the Act.
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Compulsory and Voluntary Provisions:
- Compulsory provisions: Must be implemented by the states to create the new Panchayati Raj system.
- Voluntary provisions: Optional for states, allowing them to consider local factors (geographical, political, etc.) while implementing the system.
Significance
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Grassroots Democracy:
The Act is a landmark in the evolution of grassroots democracy in India, transitioning from representative democracy to participatory democracy at the local level.
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Decentralization:
It enables more power and authority at the local level, facilitating better self-governance and participation by the people in decision-making processes.
Salient Features of the 73rd Constitutional Amendment Act
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Gram Sabha: A village assembly of registered voters that acts as the foundation of the Panchayati Raj system with roles determined by state legislatures.
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Three-Tier System: Panchayats are established at the village, intermediate, and district levels for uniformity, with exceptions for states with populations under 20 lakhs.
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Election of Members: Members are directly elected, while chairpersons are indirectly elected at intermediate and district levels, and the process for village-level chairpersons is state-determined.
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Reservation of Seats: Seats are reserved for Scheduled Castes (SC), Scheduled Tribes (ST), women (one-third), and optionally backward classes. Reservation for SCs/STs applies for 70 years (up to 2020, extended as needed).
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Term of Panchayats: Panchayats have a five-year term but can be dissolved early. Fresh elections are required within six months, except for remaining terms under six months.
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Disqualifications: A person can be disqualified based on state electoral laws but must be at least 21 years old.
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State Election Commission: Oversees panchayat elections, with the state election commissioner appointed and removed under stringent rules.
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Powers and Functions: Panchayats prepare plans and implement schemes for economic development and social justice, covering 29 subjects listed in the Eleventh Schedule.
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Finances: Panchayats can levy taxes, receive grants, and operate funds. A State Finance Commission reviews their financial position every five years.
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Audit of Accounts: State legislatures manage panchayat accounts and audits.
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Application to Union Territories: Applicable with modifications as determined by the President.
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Exemptions: Excludes Nagaland, Meghalaya, Mizoram, certain tribal areas, and others like Darjeeling. The PESA Act, 1996, extends Panchayati Raj to Scheduled Areas.
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Existing Panchayats: Existing laws and panchayats remained operational until states aligned with the new system within a year (by 1994).
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Bar on Court Interference: Courts cannot interfere in delimitation or election matters except through election petitions.
Compulsory and Voluntary Provisions of the 73rd Constitutional Amendment Act (1992)
A. Compulsory Provisions (Mandatory Features):
- Organizing Gram Sabhas for villages or groups of villages.
- Establishing panchayats at three levels: village, intermediate, and district.
- Conducting direct elections for all seats in panchayats at all levels.
- Indirect elections for chairpersons at intermediate and district levels.
- Granting voting rights to elected chairpersons and members (both directly and indirectly elected).
- Setting 21 years as the minimum age for contesting panchayat elections.
- Reserving seats for Scheduled Castes (SCs) and Scheduled Tribes (STs) (members and chairpersons) at all three levels.
- Reserving one-third of seats (members and chairpersons) for women.
- Fixing a five-year term for panchayats and ensuring fresh elections within six months in case of dissolution.
- Establishing a State Election Commission to oversee panchayat elections.
- Constituting a State Finance Commission every five years to review and recommend measures to strengthen panchayat finances.
B. Voluntary Provisions (Discretionary Features):
- Giving Gram Sabhas powers and functions at the village level.
- Determining how the chairperson of the village panchayat is elected.
- Allowing representation of village panchayat chairpersons in intermediate or district panchayats.
- Providing representation of intermediate panchayat chairpersons in district panchayats.
- Including Members of Parliament (MPs) and State Legislators in panchayats within their constituencies.
- Reserving seats for backward classes (members and chairpersons) in panchayats at any level.
- Granting powers to make panchayats autonomous institutions of self-government.
- Delegating powers for panchayats to prepare plans for economic development and social justice and perform any of the 29 functions listed in the Eleventh Schedule.
- Authorizing panchayats to levy and collect taxes, duties, tolls, and fees.
- Assigning taxes, duties, tolls, and fees collected by the state to panchayats.
- Providing grants-in-aid to panchayats from the state’s consolidated fund.
- Establishing funds for panchayat revenues.
PESA Act, 1996
The PESA Act of 1996 (Extension Act) extends the provisions of Part IX of the Constitution, which pertains to Panchayati Raj, to Fifth Schedule areas, with necessary exceptions and modifications. This act aims to enable self-governance in tribal regions, preserving their traditions and customs. As of 2019, ten states—Andhra Pradesh, Telangana, Chhattisgarh, Gujarat, Himachal Pradesh, Jharkhand, Madhya Pradesh, Maharashtra, Odisha, and Rajasthan—have amended their Panchayati Raj Acts to comply with the PESA Act's requirements.
Here’s a concise summary of the PESA Act, 1996 focusing on its objectives and features based on the details provided:
Objectives of the PESA Act, 1996
- Extend Part IX of the Constitution (Panchayats) to Scheduled Areas with modifications.
- Promote self-rule for tribal populations and empower them.
- Enable village governance through participatory democracy, with the Gram Sabha as the nucleus.
- Develop an administrative framework aligned with traditional practices.
- Preserve tribal traditions, customs, and cultural identity.
- Empower Panchayats with tribal-specific powers.
- Prevent higher-level Panchayats from assuming powers of the Gram Sabha or lower Panchayats.
Features of the PESA Act, 1996
- Customary Law Compliance: Panchayat legislation must align with tribal traditions, customs, and practices.
- Village Definition: A village comprises one or more habitations or hamlets, following traditional governance.
- Gram Sabha Composition: Includes all persons in the electoral roll at the village level.
- Gram Sabha Powers: Safeguards tribal customs, resolves disputes, and manages community resources.
- Approval Authority: Gram Sabha approves development plans, identifies welfare beneficiaries, and certifies fund usage.
- Fund Utilization Certification: Panchayats must obtain fund utilization approval from Gram Sabha.
- Reservation of Seats: At least 50% reservation for Scheduled Tribes in Panchayats; all chairperson positions reserved for STs.
- Nomination Provision: States can nominate unrepresented Scheduled Tribes to intermediate and district Panchayats.
- Land Acquisition and Rehabilitation: Gram Sabha consultation is mandatory for land acquisition and resettlement projects.
- Water Body Management: Panchayats empowered to manage minor water bodies.
- Mining and Resource Exploitation: Gram Sabha recommendations mandatory for granting mining leases and auctioning minor minerals.
- Minor Forest Produce: Ownership lies with Panchayats/Gram Sabhas.
- Tribal Protection: Powers include:
- Enforcing prohibition or regulating intoxicants.
- Preventing alienation of tribal land and restoring unlawfully alienated lands.
- Controlling local markets and money lending.
- Managing institutions and social services.
- Overseeing tribal sub-plans and local development.
- Preventing Power Overreach: Safeguards ensure higher Panchayats don’t usurp Gram Sabha or lower Panchayat powers.
- Alignment with Sixth Schedule: States advised to adopt Sixth Schedule-like administrative arrangements for district-level Panchayats.
- Inconsistent Laws: Conflicting laws cease to apply one year after PESA's enactment; existing Panchayats continue until term expiry unless dissolved.
Finances of Panchayati Raj Institutions (PRIs)
The Second Administrative Reforms Commission (2005–2009) outlined the financial structure and challenges of Panchayati Raj Institutions (PRIs). Below is a detailed summary:
Sources of Revenue for PRIs
Panchayats receive funds through the following:
- Grants from the Union Government: Based on the Central Finance Commission’s recommendations under Article 280 of the Constitution.
- Devolution from State Governments: As per the recommendations of the State Finance Commissions (Article 243-I).
- Loans/Grants from State Governments: For specific purposes.
- Program-Specific Allocations: Through Centrally Sponsored Schemes (CSS) and Additional Central Assistance.
- Internal Resource Generation: From tax and non-tax sources.
Challenges in Fiscal Empowerment of PRIs
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Weak Internal Resource Generation:
- Limited tax domain restricts their revenue-generating capacity.
- Panchayats are reluctant to enforce and collect taxes.
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Heavy Dependency on Grants:
- A significant portion of Panchayat funds comes from grants by Union and State Governments.
- These grants are often scheme-specific, limiting flexibility in their use.
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Limited Devolution of Funds:
- State Governments, facing fiscal constraints, hesitate to transfer adequate funds to Panchayats.
- In critical areas like primary education, healthcare, water supply, and sanitation, the State Government directly handles implementation and expenditure.
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Mismatch Between Responsibilities and Resources:
- Panchayats are burdened with responsibilities but lack adequate financial resources.
Importance of Own Resource Generation
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Own Revenue as a Vital Component:
- While grants form the bulk of Panchayat funds, their own resource generation ensures financial independence and accountability to local citizens.
- A local taxation system enhances public involvement and institutional accountability.
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Gram Panchayats in a Better Position:
- Gram Panchayats have an independent tax domain, unlike Intermediate and District Panchayats, which depend on tolls, fees, and non-tax revenue.
Taxation Powers of PRIs
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Focus on Village Panchayats:
- Most taxation powers are vested in Village Panchayats, while Intermediate and District Panchayats have limited revenue options, such as tolls, ferry services, and cess on stamp duties.
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Common Tax and Fee Sources for Village Panchayats:
- Property/House Tax
- Profession Tax
- Land Tax/Cess
- Vehicle Taxes/Tolls
- Entertainment Fees
- Sanitation, Drainage, and Conservancy Taxes
- Water and Lighting Rates/Taxes
- Education Cess
- Taxes on Fairs and Festivals
The study reveals that despite having a range of tax options, PRIs lack financial autonomy and remain heavily dependent on external grants, limiting their ability to function as robust institutions of self-governance.
Reasons for the Ineffective Performance of Panchayati Raj Institutions (PRIs)
Despite the constitutional empowerment provided by the 73rd Amendment Act (1992), PRIs have not performed as expected. Key factors contributing to their sub-optimal functioning include:
1. Lack of Adequate Devolution of 3Fs (Functions, Funds, Functionaries)
- Many states have failed to transfer adequate functions, funds, and functionaries to PRIs, leaving them incapable of fulfilling their constitutional responsibilities.
- While State Finance Commissions (SFCs) have made recommendations, implementation has been patchy, affecting the fiscal sustainability of PRIs.
2. Excessive Bureaucratic Control
- Gram Panchayats often function under the subordination of bureaucracy, especially Block Offices.
- Elected Sarpanches spend disproportionate time seeking funds and approvals, undermining their role as representatives.
3. Tied Nature of Funds
- Funds allocated to specific schemes are often rigid and inappropriate for local contexts, leading to either unsuitable activities or unspent resources.
4. Overwhelming Dependence on Government Funding
- Panchayats rely heavily on external funding rather than generating their own resources. This dependency reduces accountability and public engagement, such as in social audits.
5. Reluctance to Use Fiscal Powers
- While PRIs have the power to levy taxes on property, businesses, markets, and services, few utilize this authority.
- Sarpanches often avoid imposing taxes on their own constituencies due to social pressures, weakening revenue generation.
6. Weak Gram Sabha Empowerment
- Gram Sabhas, crucial for transparency, accountability, and marginalized inclusion, lack clear powers or procedural guidelines in most State Acts.
- The absence of penalties for non-compliance by officials weakens their effectiveness.
7. Creation of Parallel Bodies (PBs)
- PBs, often formed for rapid implementation and accountability, undermine PRIs by bypassing their legitimate role.
- These bodies often suffer from the same issues as PRIs, such as corruption, elite capture, and partisan politics, while alienating PRIs from resources and functions.
8. Poor Infrastructure and Training
- Many Gram Panchayats lack basic office buildings, full-time secretaries, and essential planning and monitoring databases.
- While most District and Intermediate Panchayats are computerized, only 20% of Gram Panchayats have computing facilities.
- Elected representatives, often semi-literate or lacking training, struggle to understand their roles, responsibilities, and procedures, affecting their efficiency.