UPSC IAS exam preparation - Governance in India - Lecture 12

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Panchayati Raj

1.0 Introduction

'Panchayati Raj' in India refers to rural local self-government. It is created in all the states in India by the Acts of the state legislatures to establish democracy at the grass roots level. It is entrusted with the duties and responsibilities in the field of rural development. It was constitutionalised through the 73rd Constitutional Amendment Act of 1992. At the Central level, the Ministry of Panchayati Raj looks after the matters relating to the Panchayati Raj bodies across India.

In the scheme of division of powers in the Indian federal system, the item of 'local government' is given to the states. Thus the fifth entry of the State List of the seventh schedule to the Constitution of India deals with 'local government'.

2.0 DEVELOPMENT of Panchayati Raj in India

2.1 Balwant Rai Mehta Committee

In January 1957, the Government of India appointed a committee to examine the working of the Community Development Programme (1952) and the National Extension Service (1953) and to suggest measures for their better working. The Chairman of this committee was Balwant Rai G. Mehta. The committee submitted its report in November 1957 and recommended the establishment of the scheme of 'democratic decentralisation' which ultimately came to be known as panchayati raj. These recommendations of the committee were accepted by the National Development Council in January 1958. The Council did not insist on a single rigid pattern and left it to the states to evolve their own patterns suitable to local conditions. But the basic principles and broad fundamentals should be identical throughout the country.

Rajasthan was the first state to establish Panchayati Raj. The scheme was inaugurated by the Prime Minister on 2nd October, 1959, in Nagaur district. Rajasthan was followed by Andhra Pradesh which also adopted the system in 1959. Thereafter, most of the states adopted the system.

Though most of the states created Panchayati Raj institutions by mid 1960s, there were differences from one state to another with regard to the number of tiers, relative position of samiti and parishad, their tenure, composition, functions, finances and so on. For example, Rajasthan adopted three-tier system while Tamil Nadu adopted two-tier system. West Bengal, on the other hand, adopted a four-tier system. Further, in Rajasthan-Andhra Pradesh pattern, Panchayat Samiti was powerful as the block was the unit of planning and development while in Maharashtra-Gujarat pattern, Zila Parishad was powerful as the district was the unit of planning and development. Some states also established Nyaya Panchayats, that is, judicial panchayats to try petty civil and criminal cases.

2.2 Ashok Mehta Committee

In December 1977, the Janata Government appointed a committee on Panchayati Raj institutions under the chairmanship of Ashok Mehta. It submitted its report in August 1978 and made 132 recommendations to revive and strengthen the declining Panchayati Raj system in the country.

Its main recommendations were:

The three-tier system of Panchayati Raj should be replaced by the two-tier system, that is, Zila Parishad at the district level, and below it, the Mandal Panchayat consisting of a group of villages covering a population of the 15,000 to 20,000.
A district should be the first point for decentralization under popular supervision below the state level.
Zila Parishad should be the executive body and made responsible for planning at the district level.
There should be an official participation of political parties at all levels of Panchayat elections.
The Panchayati Raj institutions should have compulsory powers of taxation to mobilise their own financial resources.
There should be a regular social audit by a district level agency and by a committee of legislators to check whether the funds allotted for the vulnerable social and economic groups are actually spent on them.
The state government should not supersede the Panchayati Raj institutions. In case of an imperative supersession, election should be held within six months from the date of supersession.
A minister for Panchayati Raj should be appointed in the state council of ministers to look after the affairs of the Panchayati Raj institutions.

Due to the collapse of the Janata Government before the completion of its term, no action could be taken on the recommendations of the Ashok Mehta Committee at the Central level. However, the three states of Karnataka, West Bengal and Andhra Pradesh took steps to revitalise the Panchayati Raj, keeping in some of the recommendations of the Ashok Mehta Committee.

2.3 G.V.K. Rao Committee

The Committee on Administrative Arrangement for Rural Development and Poverty Alleviation Programmes under the chairmanship of G.V.K. Rao was appointed by the Planning Commission in 1985. The Committee came to conclusion that the developmental process was gradually bureaucratised and divorced from the Panchayati Raj. This phenomena of bureaucratisation of development administration as against the democratisation weakened the Panchayati Raj institutions resulting in what is aptly called as 'grass without roots'.

The committee, in its scheme of decentralised system of field administration, assigned a leading role to the Panchayati Raj in local planning and development. It is in this respect that the G.V.K. Rao Committee Report (1986) differed from the Dantwala Committee Report on Block-Level Planning (1978) and the Hanumantha Rao Committee Report on District Planning (1984). Both the committees have suggested that the basic decentralised planning function should be done at the district level. The Hanumantha Rao Committee advocated separate district planning bodies under either the District Coliector or a minister. In both the models, the Collector should play a significant role in the decentralised planning though, the Committee stated that Panchayati Raj institutions would also be associated with this process (of decentralised planning). The committee recommended that the Collector should be the coordinator at the district level, of all developmental and planning activities. Thus, the Hanumantha Rao Committee differed in this respect from Balwantray Mehta Committee, Administrative Reforms Commission of India, Ashok Mehta Committee and finally G.V.K. Rao Committee which recommended reduction in the developmental role of the District Collector and which assigned a major role to the Panchayati Raj in development administration.

2.4 L.M. Singhvi Committee

In 1986, Rajiv Gandhi government appointed a committee on 'Revitalisation of Panchayati Raj Institutions for Democracy and Development' under the chairmanship of L.M. Singhvi. It made the following recommendations:

The Panchayati Raj institutions should be constitutionally recognised, protected and preserved. For this purpose, a new chapter should be added in the Constitution of India. This will make their identity and integrity reasonably and substantially inviolate. It also suggested constitutional provisions to ensure regular, free and fair elections to the Panchayati Raj bodies
Nyaya Panchayats should be established for a cluster of villages
The villages should be reorganised to make Gram Panchayats more viable. It also emphasised the importance of the Gram Sabha and called it as the embodiment of direct democracy
The village Panchayats should have more financial resources, and
The judicial tribunals should be established in each state to adjucate controversies about election to the Panchayati Raj institutions, their dissolution and other matters related to their functioning.

3.0 Constitutionalisation

The Rajiv Gandhi government, in response to the above recommendations of L.M. Singhvi Committee, introduced the 64th Constitutional Amendment Bill in the Lok Sabha in July 1989 to constitutionalise Panchayati Raj institutions and make them more powerful and broad-based. Although, the Lok Sabha passed the Bill in August 1989, it was not approved by the Rajya Sabha. The bill was vehemently opposed by the opposition on the ground that it sought to strengthen centralisation in the federal system.

3.1 Narasimha Rao government

The Congress Government under the prime ministership of P.V. Narasimha Rao considered the matter of the constitutionalisation of Panchayati Raj bodies. It drastically modified the proposals in this regard to delete the controversial aspects. Finally, it introduced the Constitutional Amendment Bill in the Lok Sabha in September 1991. It was passed by the Lok Sabha on December 22, 1992 and by the Rajya Sabha on December 23, 1992. Later, it was approved by the 17 state Assemblies and received the assent of the President of India on 20 April, 1993. Thus it emerged as the 73rd Constitutional Amendment Act, 1992 and came into force on 24 April, 1993.

3.2 73rd Amendment Act of 1992

This Act has added Part-IX to the Constitution of India. It is entitled as 'The Panchayats' and consists of piovisions from articles 243 to 243-O. In addition, the Act has also added Eleventh Schedule to the Constitution. It contains 29 functional items of the Panchayats and deals with Article 243-G.

The Act has given a practical shape to Article 40 of the Constitution which says that, 'The state shall take steps to organise village Panchayats and endow them with such powers and authority as may be necessary to enable them to function as units of self-government." This article forms a part of the Directive Principles of State Policy.

The Act gives a constitutional status to the Panchayati Raj institutions. It has brought them under the purview of the justiciable part of the Constitution. In other words, the state governments are under constitutional obligation to adopt the new Panchayati Raj system in accordance with the provisions of the Act. Consequently, neither the formation of Panchayals nor the holding of elections at regular intervals depends on the will of the state government any more.

The provisions of the Act can be grouped into two categories-compulsory and voluntary. The compulsory (mandatory or obligatory) provisions of the Act have to be included in the state laws creating the new Panchayati Raj system. The voluntary provisions, on the other hand, may be included at the discretion of the stales. Thus the voluntary provisions of the Act ensures the right of the states to take local factors like geographical, politico-administrative, and others, into consideration while adopting the new Panchayati Raj system. In others words, the Act does not disturb the constitutional balance between the Centre and the states in the Indian federal system. Though it is a Central law on a state subject (i.e. local government is a subject included in the State List under the Seventh Schedule of the Constitution), the Act does not encroach upon the jurisdiction of the states which are given adequate discretionary powers with regard to the Panchayats.

The Act is a significant landmark in the evolution of grassroot democratic institutions in the country. It transfers the representative democracy into participatory democracy. It is a revolutionary concept to build democracy at the grassroots level in the country.

The salient features of the Act are:

3.3.1 Gram Sabha

The Act provides for a Gram Sabha as the foundation of the Panchayati Raj system. It is a body consisting of persons registered in the electoral rolls of a village comprised within the area of Panchayat at the village level. Thus, it is a village assembly consisting of all the registered voters in the area of a Panchayat. It shall exercise such powers and perform such functions at the village level as the legislature of a state may determine.

Three-Tier system: The Act provides for a three-tier system of Panchayati Raj in every state, that is. Panchayats at ihe village, intermediate, and district levels.

Election of members and chairpersons: All the members of Panchayats at the village, intermediate and district levels shall be elected directly by the people. Further, the chairperson of Panchayats at the intermediate and district levels shall be elected indirectly-by and from amongst the elected members there of. However, the chairperson of a Panchayat at the village level shall be elected in such manner as the state legislature determines.

Reservation of seats: The Act provides for the reservation of seats for scheduled castes and scheduled tribes in every Panchayat (i.e. at all the three levels) in proportion of their population to the total population in the Panchayal area. Further, the state legislature shall provide for the reservation of offices of chairpersons in the Panchayat at the village or any other level for the SCs and STs.

The Act provides for the reservation of not less than one-third of the total number of seats for women (including the number of seats reserved for women belonging the SCs and the STs). Further, not less than one-third of the total number of offices of chairpersons in the Panchayats at each level shall be reserved for women.

The Act also authorises the legislature of a state to make any provision for reservation of seats in any/ Panchayat or offices of chairperson in the Panchayat at any level in favour of backward classes.

Duration of Panchayats: The Act provides for a five-year term of office to the Panchayat at every level. However, it can be dissolved before the completion of its term. Further, fresh election to constitute a Panchayat shall be completed

before the expiry of its duration of five years; or
in case of dissolution, before the expiry of a period of six months from the date of its dissolution.

Disqualifications A person shall be disqualified for being chosen as or for being a member of Panchayat if he is so disqualified

under any law for the time being in force for the purposes of elections to the legislature of the state concerned, or
under any law made by the state legislature. However, no person shall be disqualified on the ground that he is less than 25 years of age if he has attained the age of 21 years. Further, all questions of disqualifications shall be referred to such authority as the state legislature determines.

3.3.2 State Election Commission

The superintendence, direction and control of the preparation of electoral rolls and the conduct of all elections to the Panchayats shall be vested in the State Election Commission. It consists of a State Election Commissioner to be appointed by the Governor. His conditions of service and tenure of office shall also be determined by the Governor. He shall not be removed from the office except in the manner and on the grounds prescribed for the removal of a judge of the state High Court, and his conditions of service shall not be varied to his disadvantage after his appointment.

Powers and functions: The state legislature may endow the Panchayats, with such powers and authority as may be necessary to enable them to function as institutions of self-government. Such a scheme may contain provisions for the devolution of powers and responsibilities upon Panchayats at the appropriate level with respect to (i) the preparation of plans for economic development and social justice; (ii) the implementation of schemes for economic development and social justice as may be entrusted to them, including those in relation to the 29 matters listed in the Eleventh Schedule.

Finances: The state legislature may

authorise a Panchayat to levy, collect and appropriate taxes, duties, tolls and fees;
assign to a Panchayat taxes, duties, tolls and fees levied and collected, by the state government;
provide for making grants-in-aid to the Panchayats from the Consolidated Fund of the state; and
provide for constitution of funds for crediting all moneys of the panchayats.

3.3.3 Finance Commission

The Governor of a state shall, after every five years, constitute a Finance Commission to review the financial position of the Panchayats. It shall make the following recommendations to the Governor.

The principles which should govern:

The distribution between the state and the Panchayats of the net proceeds of the taxes, duties, tolls and fees levied by the state
The determination of taxes, duties, tolls and fees which may be assigned to the Panchyats
The grant-in-aid to the Panchayats from the consolidated fund of the state

The measures needed to improve the financial position of the Panchayats
Any other matter referred to the Finance Commission by the Governor in the interests of sound.

The State Legislature may provide for the composition of the Commission, the required qualifications of its members and the manner of their selection. The Governor shall place the recommendations of the Commission along with the action taken report before the state legislature.The Central Finance Commission shall also suggest the measures needed to augment the Consolidated Fund of a state to supplement the resources of the Panchayats in the states (on the basis of the recommendations made by the Finance Commission of the state).

Audit of accounts: The state legislature may make provisions with respect to the maintenance of accounts by die Panchayats and the auditing of such accounts.

Application to Union Territories: The President of India may direct that the provisions of this Act shali apply to any union territory subject to such exceptions and modifications as he may specify.

Continuance of existing laws and Panchayats: All the state laws relating to Panchayats shall continue to be in force until the expiry of one year from the commencement of this Act. In other words, the states had to adopt the new Panchayati Raj system based on this Act within the maximum period of one year from 24th April, 1993, which is the date of the commencement of this Act. However, all the Panchayats existing immediately before the commencement of this Act shall continue till the expiry of their term, unless dissolved by the state legislature sooner.

Consequently, majority of states passed the Panchayati Raj acts in 1993 and 1994 to adopt the new system in accordance with the 73rd Constitutional Amendment Act of 1992.

Bar to interference by courts: The Act bars the interference by courts in the electoral matters of panchayats. It declares that the validity of any law relating to the delimitation of constituencies or the allotment of seats to such constituencies cannot be questioned in any court. It further lays down that no election to any panchayat is to be questioned except by an election petition presented to such authority and in such manner as provided by the state legislature.

Seventh Schedule: It contains 29 functional items placed within the purview of Panchayats.

4.0 The Biggest challenge to Panchayati Raj (PR)

One of the key articles of faith in gram panchayats (village councils) is their ability to ensure equitable distribution of benefits. While there are many areas of debate one can pick in the performance of the panchayati raj institutions, the effects of political party affiliation usually has divisive consequences.

In West Bengal for example, the panchayat system in the state was revived in 1978, a year after the Communist Party of India (Marxist), or CPI (M), came to power in the state, following nearly a decade of intense political violence. Along with holding elections that year and every five years, the state government also put in place some of the features that we today recognize to be key to an empowered gram panchayat - control over resources, provision of public services, the lower-level bureaucracy, etc.

Observers point out that in the early years following decentralization reforms, the lot of the poor actually improved through a steady improvement in agriculture, mostly driven by the land tenure reforms that were enacted earlier. In the interiors of the state, there are districts that are poorer than elsewhere in the country.

Simultaneously, one of the constants of political mobilization at the grassroots in West Bengal has been the thorough politicization of gram panchayats. Households are identified by their political party affiliations and this influences the allocation of public goods - not just individual benefits such as foodgrains, pensions or housing, but also crucial services such as law and order and protection of property.

While this may well be inevitable given the increasing flow of finances to the gram panchayats, it is obvious that in situations like West Bengal, where political parties have encouraged destructive political competition, the consequences of this can easily spiral down to individual households because of intense political mobilization at the grassroots.

The directive that panchayat elections are not to be fought on the basis of political party affiliations has been discarded for all practical purposes, not just in West Bengal, but in any state with a functioning system of local government. In the panchayati raj polls in the state in 2008, when the Trinamool Congress party for the first time in close to three decades wrested away nearly half the gram panchayats from the CPI(M), it was early signs of the groundswell in favour of the former. The Trinamool Congress followed this up with favourable shows in the 2009 Lok Sabha elections and the sweeping victory in the 2011 assembly polls. Over the last decade, as a successful political challenge was mounted by the Trinamool Congress on the CPI(M), often using the same tactics that the CPI(M) was known for, the polarization on the ground has sharpened, to the detriment of the welfare of ordinary citizens in rural West Bengal. There are many a personal account of development workers in rural West Bengal that narrate the despair of households who are unable to approach the police for justice for fear of retribution from an opposing political party. Of course, in many instances, the police have refused to even lodge complaints of families that are not affiliated with the ruling party. It is important to recognize this for what it is - political rivalry at the state level trickles down following the existing pattern of political mobilization. Gram panchayats, instead of absorbing the impact of this conflict while shielding citizens, become instruments of state control and oppression.

5.0 PESA

In 1996, the Government enacted the Panchayat (Extension to Scheduled Areas) Act in 1996 to include certain areas not covered in the Panchayati Raj Act. The objective of this Act was to extend the idea of local governance to the tribal regions of India. This created a system wherein the tribal people can govern themselves and the resources in their area. By this Act the provisions of Panchayats were extended to the tribal areas of nine states that have Fifth Schedule Areas. Most of the North eastern states are under the Sixth Schedule Areas (where autonomous councils exist) and hence are not covered under PESA. The nine states to which PESA has been extended are Andhra Pradesh, Chattisgarh, Gujarat, Himachal Pradesh, Jharkhand, Maharashtra, Odisha, Rajasthan and Madhya Pradesh. However the implementation of this Act has left much to be desired. The major reasons for this are:

Widespread transfer of tribal lands into non-tribal hands through fraud and forcible occupation.
Preponderance of economic interests industry due to which the private entrepreneurs are being liberally allowed.

Recently with the Supreme Court interventions declaring economic activities certain areas as unconstitutional, it is hoped that PESA would be implemented more effectively.

5.1 Provisions of the PESA Act

A state legislation on panchayats in the scheduled area should take care of the customs, religious practices and traditional management practices of community resources
Every village shall contain a grama sabha whose members are included in the electoral list for the panchayats at village level
Planning and management of minor water bodies are entrusted to the panchayats

The salient feature of the Panchayats (Extension to the Scheduled Areas) Act, 1996 (PESA) and the modalities worked out to grant rights to tribals in the country are:

Legislation on Panchayats shall be in conformity with the customary law, social and religious practices and traditional management practices of community resources
Habitation or a group of habitations or a hamlet or a group of hamlets comprising a community and managing its affairs in accordance with traditions and customs; and shall have a separate Gram Sabha
Every Gram Sabha to safeguard and preserve the traditions and customs of people, their cultural identity, community resources and the customary mode of dispute resolution
The Gram Sabhas have roles and responsibilities in approving all development works in the village, identify beneficiaries, issue certificates of utilization of funds; powers to control institutions and functionaries in all social sectors and local plans.
Gram Sabhas or Panchayats at appropriate level shall also have powers to manage minor water bodies; power of mandatory consultation in matters of land acquisition; resettlement and rehabilitation and prospecting licenses/mining leases for minor minerals; power to prevent alienation of land and restore alienated land; regulate and restrict sale/consumption of liquor; manage village markets, control money lending to STs; and ownership of minor forest produce.

Gram Sabhas have been constituted in every State as per the Panchayat Raj Act/PESA Rules of the concerned State. Only four States have framed their Rules for implementation of PESA. These are, Andhra Pradesh, Himachal Pradesh, Maharashtra and Rajasthan.

5.2 Committees for implementation of PESA Act

For effective implementation of PESA, the MoPR constituted the following committees to have assessment of the filed realities:

Mungekar Committee: The Standing Committee on Inter-Sectoral issues relating to Tribal Development was constituted by the PMO on October 30, 2004 with Dr. Bhalchandra Mungekar, Member, Planning Commission, as its Chairman. MoPR had given its comments to Ministry of Tribal Affairs on the report of the Mungekar Committee.
Three Sub-Committees: MoPR constituted three sub-committees, namely the B. D. Sharma sub-committee on 'Model Guidelines to vest Gram Sabhas with powers as envisaged in PESA' on July 10, 2006; the Raghav Chandra sub-committee on July 14, 2006 on 'Land Alienation, Displacement, Rehabilitation & Resettlement' and the A.K. Sharma sub-committee on 'Minor Forest Produce' on August 03, 2006. Report of the Raghav Chandra committee was forwarded to Department of Land Resources for consideration on enactment of Land Acquisition, Rehabilitation and Resettlement Act. Recommendations of the sub-committees have also been forwarded to the PESA States.
Committee on Minor Forest Produce (MFP): A Committee under the Chairmanship of Dr. T. Haque was constituted by the Government on August 23, 2010 to suggest appropriate measures on ownership, price fixation, value addition and marketing of minor forest produce. The Committee submitted its report in May 2011. The Government has started a Centrally Sponsored Scheme of "Mechanism for Marketing of Minor Forest Produce (MFP) through Minimum Support Price (MSP) and Development of value Chain for MFP". The scheme seeks to establish a system to ensure fair monetary returns for the MFP to the collectors by fixing minimum support price. It also supports primary value-addition of MFP, provides for supply chain infrastructure like cold storage, warehouses etc. and emphasizes on scientific harvesting of MFP. To start with, the scheme is being implemented in eight States namely, Andhra Pradesh, Maharashtra, Odisha, Chhattisgarh, Madhya Pradesh, Jharkhand, Rajasthan and Gujarat for 12 MFPs namely tendu, bamboo, mahuwa seeds, sal leaves, sal seeds, lac, chironjee, wild honey, myrobalan, tamarind, gums (gum karaya) and karanj.
Harmonisation Committee: A Committee on Harmonization of Central Laws with PESA has been set up on December 14, 2011 under the chairmanship of the Union Law Secretary where MoPR is also represented. The Committee has submitted its report suggesting some amendments to Central Laws. The Ministries concerned in the GOI are being requested to expedite action on the recommendations.

6.0 Union Budget 2016-17 and Rural India

The Indian states will get a lot from the Union budget to transform rural economy by better road connectivity, improving irrigation and empowering Panchayats. The amount planned is around Rs 3 lakh crore! The target is to double the farmer's income by 2022.

Key allocations are -

The engines of rural growth and governance - panchayat and urban local bodies - will get a grant of Rs 2,87,000 crore as recommended by 14th Finance Commission, a jump of 228% compared to the previous five year period. Panchayats will get Rs 655 crore from next financial year to develop capacity to implement Sustainable Development Goals.
The government will increase direct funding to states by Rs 64,144 crore in next fiscal as compared to 2015-16, resulting in states getting Rs 5,70,337 crore, a 50% jump from actual funding in 2014-15.

Schemes related information -

Rajasthan, which has already announced Jal Swabhiman scheme to improve watershed management, can hope to increase its irrigation network as 28.5 lakh hectares of farm land will be brought under the 'Pradhan Mantri Krishi Sinchai Yojana' in the next two years. Most of it would be in the traditionally 'Bimaru' states of Uttar Pradesh, Rajasthan, Madhya Pradesh, Jharkhand, Bihar and Odisha, where agriculture is largely dependent on rain water. In addition, states can also borrow money from NABARD, where an irrigation fund of Rs 20,000 crore will be set up. These states can now rely more on rural employment guarantee scheme to create durable watershed management assets as the scheme has got higher allocation of Rs 38,500 crore for next fiscal. Just 46% of India's farm land has irrigation facility.
The increased focus on rural roads under Pradhan Mantri Gramin Sadak Yojana for which Rs 19,000 crore has been proposed as against Rs 9,805 crore in 2013-14 will also improve rural connectivity in states, especially hilly states like Uttarakhand. The pace of construction which is currently 100 km per day, as compared to the average of 73.5 kms during 2011-14, will be substantially stepped up.

By the time irrigation network and better roads would be in place, the government hopes it will ensure electricity for every village by May 2018, crucial to boost the rural economy. Around 30% of villages did not have power till 2015 end. The big question remains whether local bodies have capacity to absorb so much money. Absorbing additional Central aid will need a lot of work at the ground level by the states.