Panchayati Raj in India

Introduction

“When the panchayat raj is established, public opinion will do what violence can never do”. — Mahatma Gandhi

A three-tier structure of the Indian administration for holistic and inclusive rural development and envisages grass root participation in developmental process is called Panchayati Raj.

Aim: To develop local self-governments in districts, zones and villages i.e at three tiers of administration.

Historical Roots and Quest for Self-Governance

Gram Swaraj: Mahatma Gandhi advocated panchayat raj as the foundation of India’s political system – “Gram Swaraj”.
Lord Mayo’s Resolution 1870: For decentralization of power to bring about administrative efficiency in meeting people’s demand and to add to the finances of the colonial regime from development of local institutions.
Ripon Resolution 1882: Magna Carta of local democracy in India. Focused on towns, provided for local bodies consisting of a large majority of elected non-official members and presided over by a non-official chairperson. Resolution recognized the twin considerations of local government: (i) administrative efficiency (ii) political education.
Royal Commission on Decentralization (1907): Recognized the importance of panchayats at the village level.
Montague-Chelmsford reforms (1919): Brought local self-government as a provincial transferred subject. Due to organisational and fiscal constraints, the reform was unable to make panchayat institutions truly democratic and vibrant.
Government of India Act, 1935: The provincial autonomy scheme marked the evolution of panchayats in India. Local self government was a provincial transferred subject.

Divergent Views During National Movement

Mahatma Gandhi

Favoured Village Swaraj and strengthening the village panchayat to the fullest extent.

Dr. B.R. Ambedkar

Believed that the village represented regressive India, a source of oppression, so opposed it.

Constitutional Drafting (Article 40)

Panchayati Raj Institutions were placed in DPSP under Article 40 as non-justiciable part of the Constitution.
Article 40 reads: ‘the State shall take steps to organize village panchayats and endow them with such powers and authority as may be necessary to enable them to function as units of self-government’.

Evolution in Post independence period: Rajasthan was the first state to establish Panchayati Raj. The scheme was inaugurated by the prime minister Jawaharlal Nehru on October 2, 1959, in Nagaur district.

Committees on Panchayati Raj

1. Balwant Rai Mehta Committee 1957

To examine the working of the Community Development Programme (1952) and the National Extension Service (1953).
Establishment of an organically linked three-tier panchayati raj system through a device of indirect elections.
Village Panchayat: constituted with directly elected representatives.
Panchayat Samiti and Zilla Parishad: constituted with indirectly elected members.
Genuine transfer of power and responsibility to these democratic bodies.
Adequate resources should be transferred to these bodies.
Chairman of the Zilla Parishad: District collector.

2. Ashok Mehta Committee 1977

Three-tier system should be replaced by the two-tier system – zilla parishad and mandal panchayat (consisting of a group of villages with a total population of 15,000 to 20,000).
District as first point for decentralisation under popular supervision below the state level.
Official participation of political parties at all levels of panchayat elections.
Compulsory powers of taxation to PRIs to mobilise own financial resources.
Regular social audit by a district level agency.
Elections should be held within six months from the date of supersession.
Nyay panchayats should be kept as separate bodies from that of development panchayats. They should be presided over by a qualified judge.
Minister for panchayati raj in the state council of ministers.
Reservation of Seats for SCs and STs on the basis of their population.
Constitutional recognition should be accorded to the PRIs.

3. G V K Rao Committee 1985

Committee to review the existing “Administrative Arrangements for Rural Development and Poverty Alleviation Programmes”.
Zilla Parishad (District level body) should be of pivotal importance in the scheme of democratic decentralisation.
A post of District Development Commissioner should be created. He should act as the CEO of the Zilla Parishad.
Regular elections to the Panchayati Raj institutions.

4. L M Singhvi Committee 1986

Committee to prepare a concept paper on ‘Revitalisation of Panchayati Raj Institutions for Democracy and Development’.
Constitutional recognition to PRI with addition of new chapter in the Constitution.
Nyay Panchayats should be established for a cluster of villages.
Reorganisation of villages to make Gram Panchayats more viable.
Emphasised the importance of the Gram Sabha and called it as the embodiment of direct democracy.
Judicial tribunals should be established in each state to adjudicate controversies about election.
Concluded that the developmental process was gradually bureaucratised and divorced from the Panchayati Raj and called PRIs as ‘grass without roots’.

5. Thungon Committee 1988

To examine the political and administrative structure in the district for the purpose of district planning.
Constitutional recognition to Panchayati Raj bodies.
Three-tier system of PRIs with panchayats at the village, block and district levels.
Zilla Parishad should act as the pivot of planning and development.
Fixed tenure of five years. Maximum period of super session should be six months.
A detailed enumerations of subjects for Panchayati Raj should be incorporated in the Constitution.
Reservation of seats in all the three-tiers – SC, ST, Women.
State finance commission should be set-up.
Chief executive officer of the Zilla Parishad- district collector.

6. Gadgil Committee 1988

The Committee on Policy and Programmes.
Constitutional status should be bestowed on the Panchayati Raj institutions.
Three-tier system of Panchayati Raj.
Fixed five years term of Panchayati Raj institutions.
Direct elections for members of the Panchayats at all the three levels.
Reservation for SCs, STs and women proportionate with their population.
Responsibility of preparation and implementation of plans for socio-economic development on PRIs.
PRIs should be empowered to levy, collect and appropriate taxes and duties.
Establishment of a State Finance Commission and State Election Commission.

Strategic Framework (Dantwala & Hanumantha Rao)

Dantwala Committee Report – on Block-Level Planning (1978).
Hanumantha Rao Committee Report – on District Planning (1984).
Both committees suggested that the basic decentralised planning function should be done at the district level.
In both models, the Collector should play a significant role in the decentralised planning.

73rd Constitutional Amendment Act, 1992

Journey: Initially, the 64th Constitutional Amendment Bill was introduced in July 1989 (Rajiv Gandhi Government) but couldn't be passed by Rajya Sabha. Eventually, it emerged as the 73rd Constitutional Amendment Act, 1992 and came into force on 24 April, 1993 (P.V. Narasimha Rao Government).

Significance

New Part IX to the constitution (Article 243 to 243 O).
Eleventh Schedule consisting 29 functional items of the panchayats.
Inclusion of a vast pool of women in democratic decision making process.
Democratic shape to Article 40 (DPSP). Justiciable part of the constitution.
Transformed representative democracy to participatory democracy.
Two Parts: Compulsory (must be added to state laws) and Voluntary (discretion of state) provisions.

Key Features

Gram Sabha (243A): Village assembly consisting of all the registered voters within the area of the panchayat.
Three-tier System: At village, intermediate and district level. States with a population less than 20 lakhs may not constitute the intermediate level.
Election (243K): Members to all levels elected directly. Chairperson to intermediate/district elected indirectly from elected members. Village chairperson elected as determined by state.
Reservation (243 D): SC/ST proportionate to population. Women: Not less than one-third of seats and chairpersons offices. State may decide on OBC reservation. (Arunachal Pradesh exempted from SC reservation).
Duration (243 E): Five-year term. Fresh elections before expiry. If dissolved, election within 6 months.
Disqualification (243 F): Under any law for state legislature or state law. 21 years is the minimum age for contesting.
State Election Commission: Conducts elections for Panchayats and Municipalities.
Powers (243 G): Preparation of plans for economic development and social justice. Implementation of schemes (29 matters in 11th Schedule).
Finances (243 H): State may authorise panchayat to levy/collect taxes, assign taxes, provide grants-in-aid, constitute funds.
Finance Commission (243 I): Governor constitutes every five years to review financial position.
Audit (243 J): State legislature makes provisions.
UT Application (243 L): President directs application subject to exceptions.
Exempted Areas: Nagaland, Meghalaya, Mizoram, Scheduled/Tribal areas, Hill area of Manipur, Darjeeling district.
Bar to Courts (243 O): Election questioned except by an election petition.

Finances of Panchayati Raj in India

Grants from the Union Government: based on Central Finance Commission (Article 280).
Devolution from the State Government: based on State Finance Commission (Article 243-I).
Loans or grants from the State Government.
Programme-specific Allocation: Centrally Sponsored Schemes.
Internal Resource Generation (tax and non-tax).

Provisions of the 73rd Amendment Act

Compulsory Provisions

Organization of Gram Sabha: In a village or group of villages.
Establishment of Panchayats: At the village, intermediate, and district levels.
Direct Elections: To all seats in panchayats at the village, intermediate, and district levels.
Indirect Elections: To the post of chairperson of panchayats at the intermediate and district levels.
Minimum Age: 21 years is the minimum age for contesting elections to panchayats.
Reservation: 1/3rd seats for women at all levels. Reservation for SCs and STs at all three levels.
Tenure: Fixing tenure of five years. Holding fresh elections within six months in the event of supersession.
Election Commission: Establishment of a State Election Commission for conducting elections.
State Finance Commission: To review financial position after every five years.

Voluntary Provisions

Endowing the Gram Sabha with powers and functions at the village level.
Determining the manner of election of the chairperson of the village panchayat.
Giving representation to chairpersons of village panchayats in intermediate/district panchayats.
Giving representation to MPs and MLAs in the panchayats falling within their constituencies.
Providing reservation of seats for backward classes at any level.
Granting powers to make them autonomous bodies.
Devolution of powers: To perform some or all of the 29 functions listed in the Eleventh Schedule.
Financial Powers: Authorizing panchayats to levy taxes, duties, tolls, and fees.

State Finance Commission (Article 243 I)

The Governor of a state shall, after every five years, constitute a finance commission to review the financial position of the panchayats. It makes the following recommendations:

The distribution between the state and the panchayats of the net proceeds of taxes, duties, tolls, and fees levied by the state.
The allocation of shares amongst the panchayats at all levels.
The determination of taxes, duties, tolls, and fees assigned to the panchayats.
The grants-in-aid to the panchayats from the consolidated fund of the state.

Composition + Qualification: Determined by the State Legislature.

Action Taken: The Governor shall place the recommendations and the action taken report before the state legislature.

Central Role: The Central Finance Commission can recommend measures to augment the consolidated fund of the state to supplement the resources of the panchayats.

Other Provisions

Article	Provision
243 N	Continuance of Existing Laws: To be in force until the expiry of one year from the commencement of this act.
243 J	Audit and Accounts: Determined by the State Legislature.
243 L	Application to UT: Applies to UTs. President may direct application subject to exceptions/modifications.
243 M	Exempted Areas: Nagaland, Mizoram, Meghalaya, hill areas of Manipur, Darjeeling district (WB). Parliament may extend provisions to Scheduled/Tribal areas (Basis for PESA Act, 1996).

Source of Revenue (According to 2nd ARC)

Article 280: Grants from Union Government based on Central Finance Commission.
Article 243 I: Devolution from State Government based on State Finance Commission.
Loans/grants from the State Government.
Programme-specific Allocation: Centrally Sponsored Schemes & Additional Central Assistance.
Internal Resource Generation: Tax and Non-tax revenue.

Committees Related to Panchayati Raj (Post-Constitutionalisation)

Year	Committee Name	Chairman
2001	Task Force on Devolution of Powers and Functions to PRIs	Lalit Mathur
2005	Expert Group on Planning at the Grassroots Level	V. Ramachandran
2008	Task Force for Preparation of a Manual for District Planning	Smt. Rajwant Sandhu
2010	Committee on Restructuring of DRDA (District Rural Development Agency)	V. Ramachandran
2012	Expert Committee on Leveraging Panchayats for Efficient Delivery of Public Goods	Mani Shankar Aiyar

Challenges For Poor Functioning

1. Finances

Dependency on Grants. Tied central assistance reduces autonomy.
Poor Internal Resource Generation.
Lack of Regular Financial Audit (misappropriation).
Fiscal accountability lapses.
Voluntary provisions regarding financial powers hamper fiscal autonomy.

2. Functionaries

Competencies mismatches. Less motivation and ill trained.
Lack of skilled, professional human resources.
Vast vacancies at local level.
Representatives are semi-literate/little aware of roles.

3. Functions

No Effective Devolution (voluntary subjects).
Interference of MPs and MLAs.
Structural Deficiencies (No secretarial support).
Presence of Adhocism in meetings.
Presence of Panch-Pati and Proxy Representation.
Ambiguity in the division of functions.
Creation of Parastatal Bodies usurping space.
Poor Infrastructure (No buildings, broadband).

Empowering Panchayati Raj: Strategies

Activity Mapping: Clear demarcation of functions/roles for each tier (2nd ARC).
Bottom up Planning: Especially at district level based on Gram Sabha inputs.
Providing infrastructural facilities, broadband connectivity.
Training: To local representatives to develop expertise.
Social empowerment must precede political empowerment.
State Compliance: Mechanisms to ensure compliance with constitutional provisions/SFC recommendations.
Fiscal Incentives: To encourage effective devolution (Functions, Finances, Functionaries).

2nd ARC Recommendations

Principle of Subsidiarity, Democratic Decentralisation, Delineation of Functions, Devolution in Real Terms, Convergence, Citizen Centricity.
Local body Ombudsman should be constituted.
Separate Standing Committee of the State Legislature for local Bodies.
Clear delineation of functions.
State Election Commissioner: Appointed by Governor on recommendations of collegium.
Rural development supports urban development and vice-versa.

Best Practices in Implementation

Andhra Pradesh: Village secretariat for better service delivery.
Karnataka: Separate bureaucratic cadre for Panchayats.
Kerala: Rank 1st in Panchayat Devolution Index.
Rajasthan & Haryana: Minimum qualification standards for Panchayat elections.

“If we would see our dream of Panchayat Raj, i.e., true democracy realized, we would regard the humblest and lowest Indian as being equally the ruler of India with the tallest in the land.”— Mahatma Gandhi

Conclusion

The powers, functions, and finances of Panchayats play a crucial role in local governance and community development.
These aspects are determined by the State Legislature, which empowers Panchayats to fulfill their responsibilities effectively.
From administrative duties to financial management and infrastructure development, Panchayats are vital institutions that ensure grassroots democracy and facilitate socio-economic progress at the local level.