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Article 280 of the Constitution. | (ii) Devolution from the State Government based on | recommendations of the State Finance Commission as per Art |
243-I. | (iii) Loans / grants from the State Government. | (iv) Programme-specific allocation under Centrally Sponso |
Schemes and Additional Central Assistance. | (v) Internal Resource Generation (tax and non-tax). | 2. Across the country, States have not given adequate attention to |
fiscal empowerment of the Panchayats. The Panchayats own | resources are meager. Kerala, Karnataka and Tamil Nadu are | the states which are considered to be progressive in PRIs |
empowerment but even there, the Panchayats are heavily | dependent on government grants. One can draw the following | broad conclusions: |
(i) Internal resource generation at the Panchayat level is weak. T | is partly due to a thin tax domain and partly due to Panchay | own reluctance in collecting revenue. |
(ii) Panchayats are heavily dependent on grants from Union | State Governments. | (iii) A major portion of the grants both from Union as well as the S |
Governments is scheme specific. Panchayats have lim | discretion and flexibility in incurring expenditure. | (iv) In view of their own tight fiscal position, State Governments |
education, healthcare, water supply, sanitation and m | irrigation even now, it is the State Government which is dire | responsible for implementation of these programmes and he |
expenditure. | (vi) Overall, a situation has been created where Panchayats h | responsibility but grossly inadequate resources. |
3. Though, in absolute terms, the quantum of funds the | Union/State Government transfers to a Panchayat forms the | major component of its receipt, the PRI’s own resource |
generation is the soul behind its financial standing. It is not only | a question of resources; it is the existence of a local taxation | system which ensures people’s involvement in the affairs of an |
elected body. It also makes the institution accountable to its | citizens. | 4. In terms of own resource collection, the Gram Panchayats are |
comparatively in a better position because they have a tax | domain of their own, while the other two tiers are dependent only | on tolls, fees and non-tax revenue for generating internal |
resources. | 5. State Panchayati Raj Acts have given most of the taxation | powers to Village Panchayats. The revenue domain of the |
intermediate and District Panchayats (both tax as well as non- | tax) has been kept much smaller and remains confined to | secondary areas like ferry services, markets, water and |
conservancy services, registration of vehicles, cess on stamp | duty and a few others. | 6. A study of various State Legislations indicates that a number of |
taxes, duties, tolls and fees come under the jurisdiction of the | Village Panchayats. These interalia include octroi, prop- | erty/house tax, profession tax, land tax/cess, taxes/tolls on |
vehicles, entertainment tax/fees, license fees, tax on non- | agriculture land, fee on registration of cattle, sanitation/drainage/ | conservancy tax, water rate/ tax, lighting rate/tax, education cess |
REASONS FOR INEFFECTIVE PERFORMANCE | Even after conferring the constitutional status and protection through | the 73rd Amendment Act (1992), the performance of the Panchayati |
Raj Institutions (PRIs) has not been satisfactory and not upto the | expected level. The various reasons for this sub-optimal performance | are as follows7b: |
1. Lack of adequate devolution: Many States have not taken | adequate steps to devolve 3Fs (i.e., functions, funds and | functionaries) to the PRIs to enable them to discharge their |
constitutionally stipulated function. Further, it is imperative that | the PRIs have resources to match the responsibilities entrusted | to them. While SFCs (state finance commissions) have |
submitted their recommendations, not many few States have | implemented these or taken steps to ensure the fiscal viability of | the PRIs. |
2. Excessive control by bureaucracy: In some States, the Gram | Panchayats have been placed in a position of subordination. | Hence, the Gram Panchayat Sarpanches have to spend |
extraordinary amount of time visiting Block Offices for funds | and/or technical approval. These interactions with the Block staff | office distort the role of Sarpanches as elected representatives. |
3. Tied nature of funds: This has two implications. The activities | stated under a certain scheme are not always appropriate for all | parts of the district. This results in unsuitable activities being |
promoted or an under-spend of the funds. | 4. Overwhelming dependency on government funding: A | review of money received and own source funds shows the |
overwhelming dependence of Panchayats on government | funding. When Panchayats do not raise resources and instead | receive funds from outside, people are less likely to request a |
social audit. | 5. Reluctance to use fiscal powers: An important power | devolved to GP (Gram Panchayat) is the right to levy tax on |
property, business, markets, fairs and also for services provided, | like street lighting or public toilets, etc. Very few Panchayats use | their fiscal power to levy and collect taxes. The argument |
your own constituency, especially when you live in the | community. | 6. Status of the Gram Sabha: Empowering the Gram Sabhas |
could have been a powerful weapon for transparency, | accountability and for involvement of the marginalized sections. | However, a number of the State Acts have not spelt the powers |
of Gram Sabhas nor have any procedures been laid down for | the functioning of these bodies or penalties for the officials. | 7. Creation of Parallel Bodies: Often, Parallel Bodies (PBs) are |
created for supposedly speedy implementation and greater | accountability. However, there is little evidence to show that such | PBs have avoided the evils including that of partisan politics, |
sharing of spoils, corruption and elite capture. Missions (in | particular) often bypassing mainstream programmes, create | disconnect, duality, and alienation between the existing and the |
new structures and functions. PBs usurp the legitimate space of | PRIs and demoralize the PRIs by virtue of their superior | resource endowments. |
8. Poor Infrastructure: A large number of Gram Panchayats in the | country do not have even full time Secretary. Around 25 percent | of the Gram Panchayats do not have basic office buildings. The |
database for planning, monitoring etc., are lacking in most of the | cases. | A large number of elected representatives of PRIs are semi- |
literate or literate and know little about their roles & | responsibilities, programmes, procedures, systems. Often for | want of good, relevant and periodic training, they are not able to |
perform their functions properly. | Although all the District and Intermediate Panchayats are | connected with computers, only around 20% Gram Panchayats |
reported to be having computing facility. In some States, Village | Panchayats do not have any computing facility. | Table 38.2 Articles Related to Panchayats at a Glance |
Article No. Subject-matter | 243. Definitions | 243A. Gram Sabha |
243C. Composition of panchayats | 243D. Reservation of seats | 243E. Duration of panchayats, and so on |
243F. Disqualifications for membership | 243G. Powers, authority and responsibilities of panchayats | 243H. Powers to impose taxes by, and funds of, the |
panchayats | 243-I. Constitution of finance commission to review financial | position |
243J. Audit of accounts of panchayats | 243K. Elections to the panchayats | 243L. Application to union territories |
243M. Part not to apply to certain areas | 243N. Continuance of existing laws and panchayats | 243-O. Bar to interference by courts in electoral matters |
Table 38.3 Name of Panchayati Raj Institutions in the States (2019)8 | Sl. No. State Panchayati Raj | Institutions |
1. Andhra Pradesh 1. Gram Panchayats | 2. Mandal Parishads | 3. Zilla Parishads |
2. Arunachal Pradesh 1. Gram Panchayats | 2. Anchal Samities | 3. Zilla Parishads |
3. Assam 1. Goan Panchayats | 2. Anchalic Panchayats | 3. Zilla Parishads |
4. Bihar 1. Village Panchayats | 2. Panchayat Samities | 3. Zilla Parishads |
5. Chattisgarh 1. Gram Panchayats | 2. Janpad Panchayats | 3. Zilla Panchayats |
6. Goa 1. Village Panchayats | 2. Zilla Panchayats | 7. Gujarat 1. Village Panchayats |
2. Taluka Panchayats | 3. District Panchayats | 8. Haryana 1. Gram Panchayats |
2. Panchayat Samities | 3. Zilla Parishads | 9. Himachal Pradesh 1. Gram Panchayats |
2. Panchayat Samities | 3. Zilla Panchayats | 10. Jharkhand 1. Gram Panchayats |
2. Panchayat Samities | 3. Zilla Panchayats | 11. Karnataka 1. Gram Panchayats |
2. Taluka Panchayats | 3. Zilla Panchayats | 12. Kerala 1. Village Panchayats |
2. Block Panchayats | 3. District Panchayats | 13. Madhya Pradesh 1. Village Panchayats |
2. Block Panchayats | 3. District Panchayats | 14. Maharashtra 1. Village Panchayats |
2. Panchayat Samities | 3. Zilla Parishads | 15. Manipur 1. Gram Panchayats |
2. Zilla Panchayats | 16. Odisha 1. Gram Panchayats | 2. Panchayat Samities |
3. Zilla Parishads | 17. Punjab 1. Gram Panchayats | 2. Panchayat Samities |
3. Zilla Parishads | 18. Rajasthan 1. Gram Panchayats | 2. Panchayat Samities |
19. Sikkim 1. Gram Panchayats | 2. Zilla Panchayats | 20. Tamil Nadu 1. Village Panchayats |
2. Panchayat Unions | 3. District Panchayats | 21. Telangana 1. Gram Panchayats |
2. Mandal Parishads | 3. Zilla Parishads | 22. Tripura 1. Gram Panchayats |
2. Panchayat Samities | 3. Zilla Panchayats | 23. Uttar Pradesh 1. Gram Panchayats |
2. Kshetra Panchayats | 3. Zilla Panchayats | 24. Uttarakhand 1. Gram Panchayats |
2. Intermediate | Panchayats | 3. District Panchayats |
25. West Bengal 1. Gram Panchayats | 2. Panchayat Samities | 3. Zilla Parishads |
Table 38.4 Milestones in the Evolution of Panchayati Raj9 | I. Towards First Generation Panchayats | 1948– Constituent Assembly debates on the role of Panchayati Raj |
49 in Indian polity | 1950 The Constitution of India comes into force on 26 January; | Directive Principles of State Policy mention village panchayats |
as ‘units of self-government’ (Art 40) | 1952 Community Development Programme starts on 2nd October | 1957 Balvantrai Mehta Committee, appointed in January, submits |
its report on 24 November | 1958– Several state governments enact new Panchayat Acts | 60 bringing in three-tier panchayat system |
at Nagaur in Rajasthan on 2nd October Kerala District Council | Bill is introduced in Kerala Assembly; lapses after Assembly is | dissolved |
1964– Decline of first generation Panchayati Raj Institutions | 77 | II. Growth and Decline of Second Generation Panchayats |
1978 Panchayat elections are held in West Bengal on party basis | on 4th June–marking the beginning of second generation of | Panchayati Raj. |
Ashok Mehta Committee on working of panchayats, appointed | on 12 December 1977, submits its report on 21 August | 1983 Karnataka government enacts new PR Act |
1984 Hanumantha Rao Committee on district level planning, | appointed by Planning Commission in September 1982, | submits its report in May |
1985 Karnataka PR Act receives President’s assent in July; comes | into force on 14th August | 1985 G.V.K. Rao Committee on administrative aspects of rural |
development, appointed by Planning Commission on 25 | March, submits its report in December | 1986 Andhra Pradesh follows West Bengal and Karnataka |
Panchayati Raj Model | 1987 Karnataka holds panchayat elections in January | 1990– Panchayats are dissolved and brought under administrators in |
92 Karnataka | III. Constitutionalisation of Panchayati Raj | 1986 L.M. Singhvi Committee submits its report on 27 November; |
recommends constitutional status for panchayats | 1988 Consultative Committee of Parliament appoints a sub- | committee under chairpersonship of P.K. Thungon to consider |
Constitutional Amendment | 1989 64th Constitutional Amendment Bill is introduced in Parliament | on 15 May; is defeated in Rajya Sabha on 15 October |
1991 72nd (Panchayats) and 73rd (Municipalities) Amendment Bills | are introduced in Parliament; referred to the Parliament’s Joint | Select Committee in September |
1992 Lok Sabha passes both the Bills on 22 December; Rajya | Sabha passes them on 23 December | 1993 73rd Amendment Act, 1992 comes into force on 24 April |
74th Amendment Act, 1992 comes into force on 1 June | 1993– All state governments pass Conformity Acts between 30 May, | 94 1993 and 23 April, 1994 |
1994 Madhya Pradesh holds panchayat elections under the 73rd | Amendment dispensation on 30 May | 1996 Provisions of the Panchayats (Extension to the Scheduled |
Areas) Act, 1996, extending 73rd Amendment Act to | Scheduled Areas, comes into force on 24 December. | Kerala launches People’s Plan Campaign on 16 August |
2001 Bihar holds panchayat elections after 23 years (11–30 April) | 2001 83rd Constitutional Amendment Act, 2000 amends Art. 243-M | to dispense with reservations for Scheduled Castes in |
Arunachal Pradesh–paving way for panchayat elections in the | only state yet to hold them under the new dispensation | Table 38.5 Committees Related to Panchayati Raj (After |
Constitutionalisation) | Sl. Name of the Committee Chairman Appointed Reported | No. in in |
1. Task Force on Devolution Lalit Mathur 2001 2001 | of Powers and Functions | to Panchayati Raj |
Institutions | 2. Expert Group on V. 2005 2006 | Planning at the Ramachandran |
Grassroots Level | 3. Task Force for Smt. Rajwant 2008 2008 | Preparation of a Manual Sandhu |
4. Committee on V. 2010 2012 | Restructuring of DRDA Ramachandran | (District Rural |
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