Active Gram Sabha

Roadmap for the Panchayati Raj (2011-17): My idea of Village Swaraj is that it is a complete republic. The government of the village have all the authority and jurisdiction required. This Panchayat will be the legislature, judiciary and executive combined. (abridged) Mahatma Gandhi An All India Perspective

“To the people of India, let us ensure maximum democracy and maximum devolution. Let there be an end to the power-brokers. Let us give power to the people.”

Prime Minister Rajiv Gandhi Lok Sabha, May 15, 1989

Government of India "We are a large, young and restless nation. On the move. There is no other way to include the aspirations of all our people to guide our collective Ministry of Panchayati Raj destiny other than to develop a strong local government system. Inclusive www.panchayat.gov.in growth, which is the motto of the 11th fi ve year plan, can be achieved only through inclusive governance. And the key to this is an effective, well functioning system of Panchayats." Prime Minister of India

“Active Gram Sabha: For Empowered People And Accountable Panchayats”

Roadmap for the Panchayati Raj (2011-17):

An All India Perspective

Government of India Ministry of Panchayati Raj www.panchayat.gov.in

“Active Gram Sabha: For Empowered People And Accountable Panchayats”

Contents

Contents

Abbreviations vii

Introduction xi

Chapter 1: Status of the Panchayats and Approach to the Roadmap 1 1.1 Evolution of Local Governance in India 1 1.2 Constitutional Amendment Bills 3 1.3 Local Governance in the Tribal Areas 4 1.4 Current Status of the Panchayats 4 1.5 Current Status of Panchayat Infrastructure and Management Skills 6 1.6 Efforts of Government of India and the States in Strengthening Panchayati Raj 6 1.7 Why are the Panchayats not delivering in many States? 9 1.8 Approach to the Roadmap 9

Chapter 2: Accountable and Efficient Functioning of the Panchayats 11 2.1 Participation at Village Level: Gram Sabha and Ward Sabha 11 2.2 Standing Commi� ees 13 2.3 Transparency and Accountability 13 2.4 Democratic Functioning of the Panchayats 13 2.5 Organising the Poor for their Participation through Self-Help Groups 14 2.6 Women and Panchayats 14 2.7 Role of the Non-Office Bearers 14 2.8 Role of Political Parties 15 2.9 Vigilance, Redressal of Grievances and Ombudsman 15 2.10 Federation of Panchayats 15 2.11 Panchayat and the Civil Society 16 2.12 Action Points 17

Chapter 3: Functions of the Panchayats 18 3.1 Functions of a Model Local Government 18 3.2 Constitution and the Functions of the Panchayats 18 3.3 Devolution and Activity Mapping 19

Active Gram Sabha: For Empowered People And Accountable Panchayats iii Roadmap for the Panchayati Raj (2011-17) An All India Perspective

3.4 Role of CSSs and Additional Central Assistance (ACA) in devolution of 3Fs upon the PRIs 20 3.5 Parallel Bodies and the Functioning of PRIs 21 3.6 Gender Issues 22 3.7 A�endance and Performance of Local Functionaries 22 3.8 Action Points 22

Chapter 4: Functionaries of the Panchayats 23 4.1 First Round Table Resolutions on Manpower for the PRIs 23 4.2 2nd ARC and Manpower for the PRIs 23 4.3 Manpower for the PRIs 23 4.4 Panchayat Manpower for Supporting MGNREGS 24 4.5 Cadre Management 24 4.6 Action Points 24

Chapter 5: Panchayat Finances and Accounting 25 5.1 Resources of the Panchayats 25 5.2 Constitutional Provisions on Panchayat Finances 25 5.3 2nd ARC and Panchayat Finances 25 5.4 Sources of Panchayat Funds 26 5.5 Own Resources of the Panchayats 27 5.6 Clarity on Devolution in State Budgets 28 5.7 Mechanism for Transfer of Funds to the PRIs 29 5.8 Accounting and Audit System 29 5.9 Fiscal Responsibility Regime 30 5.10 GoI to support States 30 5.11 Action Points 31

Chapter 6: Capacity Building for the Panchayats 32 6.1 Dimensions of the Challenge 32 6.2 National Capacity Building Framework (NCBF) 32 6.3 Accelerating CBT Efforts 33 6.4 Training Infrastructure for CBT 34 6.5 CBT for EWR and Panchayat Mahila Evam Yuva Sashaktikaran Abhiyan (PMEYSA) 35 6.6 Perspective/Annual CBT Plans 35 6.7 Action Points 36

Chapter 7: Decentralised Planning 37 7.1 Need for Decentralised Planning 37

iv Active Gram Sabha: For Empowered People And Accountable Panchayats Contents

7.2 Constitutional Provision 37 7.3 Eleventh Plan and Decentralised Planning 37 7.4 2nd ARC and Decentralised Planning 38 7.5 National Conference on Decentralised Planning 38 7.6 Manual for Integrated District Planning 38 7.7 Participative Integrated District Planning 38 7.8 Role of BRGF/MGNREGA in catalysing Decentralised Planning 38 7.9 DPCs 38 7.10 District Vision and Perspective Plans 39 7.11 Spatial Planning 40 7.12 Decentralised Planning and PlanPlus So�ware 40 7.13 Action Points 41

Chapter 8: e-Governance in Panchayats 42 8.1 Necessity of e-Governance in Panchayats 42 8.2 Objective of e-Panchayat 42 8.3 Components for Roll-out of e-Panchayat 42 8.4 e-Panchayat and CSCs 45 8.5 Action Points 45

Chapter 9: Panchayat (Extension to Scheduled Areas) Act (PESA) 46 9.1 Provisions under Schedule V of the Constitution 46 9.2 Need for PESA in spite of Schedule V 46 9.3 Powers of the Gram Sabha 46 9.4 Role of PESA in containing Le� Wing Extremism (LWE) 47 9.5 Effective Functioning of GS 47 9.6 Action Taken by MoPR 47 9.7 Key Interventions by the States 47 9.8 Key Interventions by the Centre 48 9.9 Action Points 48

Chapter 10: Decentralised Governance in the North-Eastern States 49 10.1 Decentralised Governance 49 10.2 2nd ARC and Expert Commi�ee on NE States 49 10.3 Issues 50 10.4 Administrative Reform Measures 52 10.5 Institutional Improvements: Roles of and Inter-relationships among the Seven Major Institutions 52 10.6 Action Points 52

Active Gram Sabha: For Empowered People And Accountable Panchayats v Roadmap for the Panchayati Raj (2011-17) An All India Perspective

Chapter 11: Constitutional and Legal Framework 53 11.1 Model Panchayati Raj Act 53 11.2 Amendment to Article 243 of the Constitution 53 11.3 Constitutional Amendments to be Considered 54 11.4 Se�ing Up of District Councils 54 11.5 Making the Panchayats Accountable to the Gram Sabha 55 11.6 Rotation in the Reservation of Seats 56 11.7 Reconciling the Term of the SFCs with that of the CFC 56 11.8 Restructuring of the Legislative Councils 56 11.9 Nyaya Panchayat Bill, 2011 57 11.10 Dispute-free Village Scheme 57 11.11 Action Points 57

Chapter 12: Some Important Issues 58 12.1 Viable Size of the Gram Panchayats 58 12.2 Election Process and State Election Commission (SEC) 58 12.3 Direct Election to Chairman of IP/ZP 59 12.4 Merger of DRDA into the Zilla Panchayat (ZP) 59 12.5 MPLAD/MLALAD Funds 59 12.6 Corruption in the Panchayats 59 12.7 State-Panchayat and Inter-Panchayat Tensions 59 12.8 MoPR Schemes 60 12.9 Action Points 60

Chapter 13: Road Ahead 61 13.1 Vision, Mission and Strategy for the Panchayats 61 13.2 Accountability and Efficiency of the Panchayats 61 13.3 Functions of the Panchayats 62 13.4 Functionaries of the Panchayats 62 13.5 Finances of the Panchayats 62 13.6 Capability Building through Training 63 13.7 Decentralised Planning 63 13.8 e-Governance 63 13.9 PESA 63 13.10 Decentralised Governance in the North-Eastern States 64 13.11 Constitutional Framework 64 13.12 Miscellaneous Issues 64

vi Active Gram Sabha: For Empowered People And Accountable Panchayats Abbreviations

Abbreviations

ACA Additional Central Assistance

APARD Andhra Pradesh Academy of Rural Development

ARC Administrative Reforms Commission

ATIR Annual Technical Inspection Report

BPR Business Process Re-engineering

BRGF Backward Regions Grant Fund

BRTC Block Resource-cum-Training Centre

CAG Comptroller and Auditor General

CBS Core Banking System

CBT Capacity Building through Training

CD Community Development

CDLG Capacity Development for Local Governance

CEC Chief Election Commissioner

CFC Central Finance Commission

CGA Controller General of Account

CPSMS Central Plan Scheme Monitoring System

CSS Centrally Sponsored Scheme

CSC Common Service Centre

DDWS Department of Drinking Water and Sanitation

DI Devolution Index

DLFA Director of Local Fund Audit

DP District Panchayat

DPC District Planning Commi�ee

DPMU District Project Management Unit

DPR Detailed Project Report

DPU District Planning Unit

DRDA District Rural Development Agencies

DRTC District Resource-cum-Training Centre

EWR Elected Women Representative

Active Gram Sabha: For Empowered People And Accountable Panchayats vii Roadmap for the Panchayati Raj (2011-17) An All India Perspective

FAQ Frequently Asked Questions

GIS Geographic Information System

GO Government Order

GoI Government of India

GP Gram Panchayat

GS Gram Sabha

IAY Indira Awaas Yojana

ICDS Integrated Child Development Services

ICT Information and Communication Technology

IE Implementation Entity

IEC Information, Education and Communication

IGNOU Indira Gandhi National Open University

ISNA Information and Service Needs Assessment

IT Information Technology

LSG Local Self-Governance

LWE Le� Wing Extremism

MGNREGA Mahatma Gandhi National Rural Employment Guarantee Act

MIS Management Information System

MMP Mission Mode Project

MoPR Ministry of Panchayati Raj

MoUD Ministry of Urban Development

NABARD National Bank for Agriculture and Rural Development

NCBF National Capacity Building Framework

NDC National Development Council

NER North-Eastern Region

NGO Non-Governmental Organisation

NIC National Informatics Centre

NIPR National Institute of Panchayati Raj

NIRD National Institute for Rural Development

NRDWP National Rural Drinking Water Programme

NRHM National Rural Health Mission

OF Optical Fibre

PB Parallel Body

viii Active Gram Sabha: For Empowered People And Accountable Panchayats Abbreviations

PEAIS Panchayat Empowerment and Accountability Incentive Scheme

PESA Panchayats (Extension to the Scheduled Areas) Act

PLCP Potential Linked Credit Plan

PMEYSA Panchayat Mahila Evam Yuva Sashaktikaran Abhiyan

PMU Project Management Unit

PPP Public-Private Partnership

RGNIYD Rajiv Gandhi National Institute of Youth Development

RGSY Rashtriya Gram Swaraj Yojana

RTI Right to Information

SC Scheduled Caste

SEC State Election Commissioner

SFC State Finance Commission

SHG Self-Help Group

SIRD State Institute for Rural Development

SIS-DP Space Based Information Support for Decentralised Planning

SoPR State of Panchayats Report

SPE Special Purpose Entity

SPMU State Project Management Unit

ST Scheduled Tribe

TNA Training Need Assessment

ToT Training of Trainers

TSIs Technical Support Institutions

ULB Urban Local Body

USOF Universal Service Obligation Fund

VWSC Village Water and Sanitation Commi�ee

ZP Zilla Panchayat

NOTE: Circulars/le�ers mentioned in this document are available at www.panchayat.gov.in

Active Gram Sabha: For Empowered People And Accountable Panchayats ix

Introduction

Introduction

Why Panchayati Raj? 1. The ‘Gram Swaraj’ dream of Mahatma Gandhi and the ‘Power to the People’ dream of Rajiv Gandhi are the essence of true democracy. Prime Minister in his address on January 16, 2009 has observed that “We are a large, young and restless nation. On the move. There is no other way to include the aspirations of all our people to guide our collective destiny other than to develop a strong local government system. Inclusive growth, which is the mo�o of the 11th five year plan, can be achieved only through inclusive governance. And the key to this is an effective, well functioning system of Panchayats.”

Progress 2. The 73rd Amendment to the Constitution has given constitutional status to the Panchayats, provided it a complete framework and also imparted it certainty. It envisions the Panchayats as the institutions of local self governance and also the universal platforms for planning and implementing programmes for economic development and social justice. It has deepened the democracy and ensured social and political empowerment of the people, particularly the dis-advantaged through 2.4 lakh Panchayats and 2.8 million elected representatives, over 30% of whom are women, 19% SC, 12% ST and also OBCs in most States.

3. A�er Ministry of Panchayati Raj was created in the year 2004, the Panchayat agenda has received a much wider public a�ention. This Ministry has been pursuing three broad aspects of the Panchayat Agenda: Empowerment, Enablement and Accountability. More important, last 2-3 years have been devoted to building/strengthening institutions, systems, processes etc. so as to ensure efficiency, transparency and accountability in the Panchayats. For example as of today, as a part of the ambitious e-Panchayat Project, daily receipt and expenditure of about 50,000 Gram Panchayats(GPs) are available on-line in the public domain and it is expected that by June, 2011, all GP accounts would be on-line. Ombudsman, Social Audit, Model Accounting System etc. would set a new paradigm of accountability. The Panchayat Performance Assessment initiative would encourage the good and discipline the not so good.

4. MGNREGA, which mandates Panchayats as the principal planning and implementing authorities, has given high visibility to the Panchayats and in the process, catalyzed their enablement. Backward Region Grant Fund (BRGF) has given untied financial backup to the Panchayats and (a) Promoted decentralised, participative and holistic planning (as an essential condition for ge�ing BRGF grant) that starts from the grassroots upwards through the Panchayats and Municipalities, and culminates in a District Plan consolidated by the DPC, (b) Bridged (to a limited extent due to low allocations) critical gaps in development that are not met through the existing schemes/resources and (c) Built capacity of the Panchayats and their functionaries, though the recently launched backward area development packages bypassing BRGF/MoPR and the stagnant outlays has affected BRGF and the efforts of MoPR.

5. The 13th Finance Commission award is a major milestone in the history of Panchayati Raj. In a radical departure from the past, the 13th CFC has devolved to the Panchayats a share of the divisible tax pool,

Active Gram Sabha: For Empowered People And Accountable Panchayats xi Roadmap for the Panchayati Raj (2011-17) An All India Perspective

instead of a mere lump sum, defacto reorganising the Panchayats as the third tier of governance. The Commission has also earmarked a performance grant subject to the fulfillment of stipulated conditions, which would bring about major improvements in the functioning of the Panchayats.

6. Effective devolution of 3Fs to the Panchayats in respect of 5 Departments of Agriculture, Education, Health, Social Welfare and Women & Child by the Govt. of Rajasthan recently, is likely to trigger a positive trend elsewhere. Bihar has adopted ‘Panchayat Sarkar’ as an important plank for good governance. Many other States have undertaken various measures to strengthen the Panchayats. Jharkhand, a�er a gap of more than 30 years, held Panchayat elections recently. J&K again is holding elections a�er a long gap. The high turn out of the voters in these troubled states, ranging from 70 to 85% in various parts, has lessons for all. People want to take charge of their destiny themselves.

Unfinished Agenda 7. However, there are many unfinished agenda such as: Panchayats quite o�en are unable to function efficiently: due to insufficient staffing, office space & infrastructure. True Integrated decentralised planning is yet to happen (Art. 243ZD): largely due to non-cooperation from the line Dep�s. Devolution of 3 Fs is highly uneven across States: one reason is that Art 243G gives ‘discretion’ to the States. Implementation of PESA needs urgent a�ention: which will address people’s disaffection in tribal/ forest Areas. Effective functioning of State Finance Commission is needed: for financial sustenance of the PRIs. Elected Village Councils in the 6th Schedule Area of NE States need to be established: for meeting the aspirations of the diverse people and communities.

Roadmap 8. Fi�y years of Panchayati Raj (PR), which was celebrated on October 2, 2009, certainly provided an occasion for introspection & revisiting Constitution, Laws, Policies, Programmes, etc. if (a) PRIs were to become institutions of local self-government (b) Benefits of ever increasing public spending, through plethora of vertical structures & schemes, were to reach people in a good measure, (c) A�endance & performance of grass root functionaries were to improve. Is it a coincidence that the developed States ( Southern & Western) generally have strong Panchayats?

9. The First dra� of the “Roadmap for Panchayati Raj (2011-17): An All India Perspective” was accordingly prepared and presented during the first National Panchayat Day (NPD) celebrations on April 24, 2010. It was based on (a) Seven Round Tables which this Ministry had organised with the Ministers of the State Governments on a whole range of issues, (b) Reports of the Second Administrative Reforms Commission particularly its Report on Local Self Government, and (c) cumulative learning of this Ministry itself. Subsequently, based on consultations with the Union Ministries, State Governments and other stakeholders, the dra� was revised and also placed on the website. Incidentally, the year 2017 coincides with 25 years of the 73rd Amendment.

10. Panchayat being a State Subject, State Governments have the primary role in empowerment, enablement and accountability of the Panchayats. GoI also has a critical role in the devolution of 3Fs upon the Panchayats because of its basic responsibilities to ensure governance in accordance with the constitutional provisions and also because of the increasingly large fiscal transfers it makes to the States in the functional domain of the Panchayats, through CSSs and ACAs. Every scheme guideline is a powerful vehicle to carry the message of strengthening the Panchayats. MGNREGA and BRGF are such good examples.

xii Active Gram Sabha: For Empowered People And Accountable Panchayats Introduction

11. One may ask, what is new in this Roadmap? Frankly, this Roadmap is basically a coherent collection of the existing policies and programmes and some works-in-progress. Its value lies in logically delineating issues and specific action points within the larger governance framework. Some issues would, of course, require a national debate, viz amendment to the Constitution.

12. As expected, this Roadmap covers key aspects of accountability and efficiency, devolution of 3Fs, capacity building of the Panchayats and Functionaries, decentralised planning, effective implementation of PESA, empowered elected Village Councils in the 6th Schedule Areas, changes in the constitutional and legal framework and some other important issues. It may, however, be remembered that any Roadmap is a dynamic document.

12th Plan and the Panchayats 13. Hopefully, the 12th Plan, which coincides with the time-line of this Roadmap (2011-17), would bring Panchayats centre-stage and achieve the inclusive growth agenda through inclusive governance, as envisioned in the 11th Plan. It is relevant to recall that Dy. Chairman, Planning Commission while delivering the Valedictory Address on the occasion of 1st NPD celebrated on April 24, 2010, made very encouraging observations on the role and enablement of the Panchayats. Some of these are: (a) If effective use of huge outlay of Rs. 1.7 lakh crore under CSS alone for the year 2009-10 was to be ensured, the role of Panchayats in governance, planning, implementation etc. has to be institutionalised; (b) Panchayats should have their own cadres including school teachers, health and sanitation workers etc.; (c) Administrative support like secretary, accountant, technical personnel etc. should be provided to the Panchayats by pooling resources from all the schemes together and given to the Panchayat as a block; (d) Panchayats should be provided more funds through BRGF based on decentralised plans, as silos of too many central schemes have not delivered optimally; (e) Matching resources should be provided against own resources raised by the Panchayats. He also observed that we should have the self-confidence of trusting the third tier of democracy. Full proceedings of the event are available on www.panchayat.gov.in.

Gram Sabha 14. Finally, there is unanimity that Gram Sabha is the soul of Panchayats and in fact the whole democratic framework and therefore, this Ministry has promoted the slogan of “Active Gram Sabha: For Empowered People and Accountable Panchayats”. Accordingly, empowering and enabling the Gram Sabha must receive the highest a�ention if the dreams of ‘Gram Swaraj’ and ‘Power to the People’ are to be realised.

Acknowledgement 15. Many have contributed in refining the initial dra� I had prepared: colleagues in this Ministry, sister Ministries, State Govt. NGOs, UN agencies and individuals. Jitender Kumar, Vandana Prakash and Nupur Tiwary need particular mention. Most of all, constant guidance and support of the-then Minister Dr. C.P. Joshi and the present Minister Shri Vilasrao Deshmukh, made it possible.

April 24, 2011

(A.N.P. Sinha) Secretary, Ministry of Panchayati Raj

Active Gram Sabha: For Empowered People And Accountable Panchayats xiii

Status of the Panchayats and Approach to the Roadmap

Chapter 1 Status of the Panchayats and Approach to the Roadmap

1.1 Evolution of Local Governance in India The Magna Carta of local democracy in British India was the Ripon Resolution of 1882 1.1.1 Pre-British Local Governance providing for rural local boards with two-thirds India’s old sacred books and historical sources of membership to be composed of elected, non- mention village communities (councils or official representatives and presided over by assemblies) across the sub-continent that were a non-official Chairperson. Actual progress in self-governing over millennia, serving as the implementation was slow but the role of rural main interface between the predominantly local administration was elevated, and the term agrarian village economies and the higher “self-government” gained currency. authorities. Custom and tradition elevated these earlier councils or assemblies called “sabhas” In 1906, the Indian National Congress, under to a position of considerable authority. Slowly, the presidentship of Dadabhai Naoroji, affirmed they assumed the form of the “Panchayat” “self-government” as the political goal for the (an assembly of five respected elders). These country. Panchayats became the pivot of administration, the focus of social solidarity and the principal In 1907, the Government constituted a six- forum for the dispensation of justice and member Royal Commission on Decentralisation resolution of local disputes. During the medieval with Shri R. C. Du� as its only Indian member. and Mughal periods, these characteristics of the The Report of this Commission—released in Village Panchayats remained unchanged. 1909—elaborated the principles enunciated in the Ripon Resolution and recognised the importance 1.1.2 Pre-Independence Panchayats of Panchayats in the governance of India. Several steps were taken during British rule in India towards se� ing up formal local bodies. In In the same year (1909), the 24 th session of the urban areas, a municipal corporation came to Congress at Lahore adopted a resolution urging be formed in Madras—on the British model of a the Government to take early steps “to make all town council—as early as 1687. local bodies from village Panchayats upwards elective with elected non-official chairmen” and In 1870, Lord Mayo (Governor General-in- “to support them with adequate financial aid.” Council) secured the passage of a resolution for the decentralisation of power aimed at bringing At its 28 th session in December 1913 in Karachi, about greater administrative efficiency in meeting the Congress adopted a resolution regre�ing that the demands of the people but primarily designed decentralisation had remained largely on paper. to augment imperial finances. At about the same time, a significant first step towards reviving the In her presidential address at the Congress session traditional village panchayat system in Bengal was in Calcu� a in 1917, Dr. Annie Besant blamed the taken through the Bengal Chowkidari Act, 1870 “inefficient bureaucracy” for not doing even which empowered District Magistrates to set up the li�le that was suggested in the Report of the Panchayats of nominated members in the villages. Royal Commission on Decentralisation.

Active Gram Sabha: For Empowered People And Accountable Panchayats 1 Roadmap for the Panchayati Raj (2011-17) An All India Perspective

The Montagu-Chelmsford Reforms of 1919 made (Vadodara) and Nilokheri. However, the dynamic local self-government—under the proposed driving force behind the CD movement, Minister scheme of Dyarchy—a “transferred subject”, S. K. Dey, was of the consistent view that CD bringing self-government under the domain of projects could not achieve their full potential in Indian Ministers in the provinces. To make local the absence of effective institutions for people’s self-government both fully representative and participation. responsible, the Montagu-Chelmsford reforms suggested that there should be (as far as possible) 1.1.5 Balwantrai Mehta Committee complete popular control in local bodies and the In 1957, a historic breakthrough in establishing largest possible independence for them from Panchayati Raj was effected through the outside control. Report of the Balwantrai Mehta Commi�ee which recommended: “Public participation in The Government of India Act, 1935 and the community works should be organised through inauguration of provincial autonomy under it statutory representative bodies.” It was of the marked another crucial stage in the evolution of view that without an agency at the village level Panchayats. With popularly elected governments that could represent the entire community, in the Provinces, almost all provincial assume responsibility and provide the necessary administrations enacted legislation for further leadership for implementing development democratisation of local self-government programmes, real progress in rural development institutions, including the Village Panchayats. could not come about at all.

1.1.3 Constitutional Provision in 1950 Subsequently, the National Development Following Independence, the first dra� of India’s Council (NDC) endorsed the basic principles of Constitution did not include any provision democratic decentralisation enunciated in the for the Panchayats even though Gandhiji had Balwantrai Mehta Report and laid on the States sought to make Village Panchayats the very the duty of working out the structures suitable foundation of democracy in independent India. to each State. It was during this period that the The President of the Constituent Assembly, term “Panchayati Raj” gained currency as a Dr. Rajendra Prasad drew a�ention of the Law process of governance organically linking the Minister Dr. B. R. Ambedkar to this lacuna in a will of the people from the Gram Sabha to the le�er dated May 10, 1948, initiating discussion Lok Sabha. Prime Minister Nehru inaugurated and debate both outside and within the the 3-tier Panchayati Raj in Nagaur, Rajasthan on Constituent Assembly. This eventually led to 2 October, 1959. the passage of an amendment proposed by the well-known Gandhian, Shri K. Santhanam on The Jayaprakash Narayan Commi�ee spoke of November 25, 1948 including Village Panchayats the contradictory positions developing within in Part IV of the Constitution containing the the Government in respect of Panchayati Raj, non-mandatory Directive Principles of State pointing out that: “A�er having accepted Policy. The amendment which was eventually Panchayati Raj as the agency responsible for numbered as Article 40 reads: “The state shall planning and execution of plans…there is take steps to organise village panchayats and no longer any valid reason for continuing endow them with such power and authority as individual allocations subject-wise even to serve may be necessary to enable them to function as as a guide.” units of self-government.” The Ministry of Community Development 1.1.4 Community Development Project, 1952 was brought under the Ministry of Food and and the Panchayats Agriculture, and in 1971, the title ‘Community Community Development (CD) projects were Development’ was dropped and replaced by inaugurated in 1952 and were modelled a�er ‘Rural Development.’ the earlier experiments at Santiniketan, Baroda

2 Active Gram Sabha: For Empowered People And Accountable Panchayats Status of the Panchayats and Approach to the Roadmap

1.1.6 Ashok Mehta Committee of Parliament a�ached to the Ministry of Rural By the early seventies, however, the Panchayats Development under the chairmanship of Shri P. had gone from a phase of early ascendancy to K. Thungon recommended that Panchayati Raj one of decline and stagnation. The Ashok Mehta bodies should be constitutionally recognised. Commi�ee (formed in 1978) made far reaching recommendations to amend the situation and In May 1989, Prime Minister Rajiv Gandhi himself recommended that Panchayati Raj be included introduced the Constitution (64th Amendment) in the Constitution. In keeping with the spirit of Bill, saying: “Our Bill will ensure that Panchayati the Ashok Mehta Commi�ee recommendations, Raj has a democratic character similar to the Lok some states—including West Bengal, Karnataka Sabha and the State Assemblies and constitutional and Andhra Pradesh—revisited their respective protection for their functioning as representative Panchayati Raj systems and undertook several institutions of the people.” new initiatives to endow local bodies with more powers which served as a prime inspiration and The Constitution (64th Amendment) Bill was example for subsequent reform. followed in July 1989 with the Constitution (65th Amendment) Bill that sought to endow The West Bengal Panchayat Act, 1973 (West urban local bodies—from town Panchayats and Bengal Act XLI of 1973) brought some fresh air in Municipalities to Metropolitan Councils—with the Panchayat system. Direct elections in all three powers similar to those that were sought to be tiers (through universal adult franchise) had to devolved to the rural Panchayats. A particularly be held at regular intervals. They were made significant provision was for buckling the mandatory—without any discretionary power development of the rural hinterland in every of any authority—to postpone such elections district to the neighbouring urban centres through indefinitely. Powers to collect tax and non-tax the mechanism of a District Planning Commi�ee revenue were clearly defined. Functional domain (DPC) jointly elected by, from and amongst the of the Panchayats was more clearly delineated members of the Panchayats at all three levels and as compared to the earlier Panchayats. The the Municipalities within the district. The DPCs new legislation empowered the Panchayats to so constituted were to be entrusted with the task spread their wings in various fields of activities of ‘consolidating’ the plans prepared at lower encompassing rural life. Mandal Panchayats, in levels into a ‘dra� district development plan’ addition to the Village Panchayats, as envisaged which would then be forwarded to the State in the Ashok Mehta Commi�ee, exist only in Government. Andhra Pradesh. Although both Bills received the required two- 1.2 Constitutional Amendment Bills thirds majority with at least half the members present and voting in the Lok Sabha (on 1.2.1 Constitution (64th Amendment) Bill October 13, 1989), the Bills failed to muster—by Prime Minister Rajiv Gandhi (1984-89) was a handful of votes—the required constitutional driven by a vision to provide the people majority in the Rajya Sabha. In September 1990, with a “representative administration” as he the Government introduced the Constitution emphasised in his Address to the Nation in (74th Amendment) Bill—a combined Bill on January 1985 and also included in the Revised Panchayats and Municipalities—but, before this 20-Point Programme of 1986. Rajiv Gandhi’s was taken up for discussion, there was a change vision was that people must determine their of government. own destinies as well as the destiny of the nation: rd “To the people of India, let us ensure maximum 1.2.2 Constitution 73 Amendment Act democracy and maximum devolution…. Let us The Government under Prime Minister give power to the people.” P. V. Narasimha Rao introduced the 72nd (Panchayats) and 73rd (Nagarpalikas) A Sub-Commi�ee of the Consultative Commi�ee Constitution Amendment Bills based

Active Gram Sabha: For Empowered People And Accountable Panchayats 3 Roadmap for the Panchayati Raj (2011-17) An All India Perspective

substantially on the Bills moved in the Eighth and provides a central role to the Gram Sabha. Lok Sabha by Shri Rajiv Gandhi but also Chapter 9 of this document discusses in detail incorporating some of the changes wrought Schedule V and PESA. by the National Front Government. These two Bills were referred to a Joint Select Commi�ee 1.3.2 Local Self-Governance in the NE States of Parliament which effected some further The legal framework of local self-governance changes while conforming considerably to the (LSG) in NER broadly comprises three earlier 1989 initiative. typologies: Sixth Schedule Frame (Meghalaya, parts of The Lok Sabha and the Rajya Sabha passed Assam, Mizoram and Tripura) both the Bills on December 22 and 23,, 1992 State Legislation Frame (Nagaland, Hill respectively. By the time Parliament passed the Areas of Manipur and non-Council areas in two Bills, their sequence changed to 73rd and Mizoram) 74th respectively. Following their ratification by National Frame (Arunachal Pradesh, Sikkim, more than half the State Assemblies, as required Manipur excluding hill areas and non-Council under the Constitution, the President of India areas in Assam and Tripura). gave his assent; the Acts came into force as the Constitution (73rd Amendment) Act, 1992 on April Each tribal area mentioned in Para 20 of the 24,, 1993 and the Constitution (74th Amendment) Sixth Schedule is designated as an ‘autonomous Act, 1992 on June 1,, 1993. This added two new district’. The area inhabited by each of the tribes parts to the Constitution, namely, Part IX titled in a district may be carved out as autonomous “The Panchayats” and Part IXA titled “The region. Each autonomous district is governed Municipalities.” by a ‘District Council’ (Council, in brief) and autonomous region by a ‘Regional Council’. 1.3 Local Governance in the Tribal Areas This unique Council frame comprises the third tier of legislature for Tribal Areas about Sixth Article 244 of the Constitution envisages three Schedule ma�ers. These Councils endowed categories of Tribal Areas, namely: with legislative, judicial and executive powers, Areas notified as ‘Scheduled Areas’ in the are constitutionally virtually function as ‘state specified States (Fi�h Schedule). within state’. Areas listed as ‘Tribal Areas’ in the Sixth Schedule in NER. The traditional self-governing village institutions Areas not covered in the above two are strong throughout NER especially in tribal categories. territories. But formal institutions such as Village Council or Gram Sabha under various State laws While Fi�h Schedule relates to ‘Administration (including the Sixth Schedule) are rather weak. and Control of Scheduled Areas and Scheduled Accordingly, the traditional-formal impasse Tribes, Sixth Schedule concerns ‘Administration continues. of Tribal Areas’. There is no special schedule for the rest. 1.4 Current Status of the Panchayats

1.3.1 Fifth Schedule Areas and PESA 1.4.1 State of Panchayat Reports (SoPRs) The Fi�h Schedule to the Constitution (Article The SoPRs (published in 2006, 2008 and 2010 244) relates to administration and control of the respectiv ely) show that, ov erall, the mandatory Scheduled Areas and Scheduled Tribes other provisions specified in the Constitution hav e than those in North-East States. The Panchayats been implemented in the last decade and a (Extension to the Scheduled Areas) Act (PESA) half. All Part IX States (elections in Jharkhand was enacted in 1996 which extended Part IX held up till recently due to a court case) held of the Constitution to the Schedule V Areas. regular elections through the State Election PESA promotes people-centric governance Commissions. All the States hav e implemented

4 Active Gram Sabha: For Empowered People And Accountable Panchayats Status of the Panchayats and Approach to the Roadmap

Constitutional Frame of Governance in NE

State ADC/Other Area Areas covered by Areas Exempted from Part IX & IX A Part IX Part IX A Arunachal No ADCs   Assam 3 ADCs Sixth Schedule Area Manipur Other Areas   Hill Areas Art 243M (2) (b) Valley   Meghalaya 3 ADCs Sixth Schedule Area Mizoram 3 ADCs Other Areas x Art 243M (2) (a) Nagaland Art 243M (2) (a) Sikkim No ADC   Tripura One ADC Sixth Schedule Area General Areas  

reservation for women, Scheduled Castes (SCs) The State of Panchayati Raj Report 2009-10 and Scheduled Tribes (STs) bringing almost has been commissioned through a group of 1.6 million representatives from these groups Consultants headed by NR Management. They into elected positions in the Panchayats, are expected to submit the Report by June 2011. making the Panchayats the nursery of future leadership. State Finance Commissions (SFCs) 1.4.2 Devolution and PEAIS/DI have been constituted and in many States, The Panchayat Empowerment and their recommendations have been acted Accountability Incentive Scheme (PEAIS) aims upon. All the States (excluding U�arakhand at encouraging States to adequately empower and Jharkhand) have constituted District the Panchayats and put in place systems for Planning Commi�ees and most have initiated bringing about efficiency, transparency and decentralised planning processes. accountability of the Panchayats. Performance of States in these respects is measured through However, implementation of the Constitutional a Devolution Index (DI). Token award is also provisions—which were le� to the discretion of given to the States which rank high on the DI. the States—varies greatly. The most important aspect in strengthening of the Panchayats is The DI has been improved continuously over the the devolution of 3Fs (i.e. functions, funds and years since the inception of the scheme in 2005-06. functionaries) related to the ma�ers listed in the Since 2007-08, evaluation of States under PEAIS Eleventh Schedule of the Constitution. Another is is based on a two-stage assessment. The first their enablement for preparing and implementing stage, called the Framework Criteria, was based bo�om-up participatory plans for economic on the following 4 fundamental Constitutional development and social justice. The States vary requirements: (i) Establishment of State Election a great deal in both these respects. While some Commission; (ii) Holding of elections to the PRIs; States have forged new paths, others are still to (iii) Se�ing up State Finance Commission; (iv) catch up. Of course, many States are trying out Constitution of the District Planning Commi�ees new approaches and mechanisms, and making (DPCs). corrections/improvements along the way.

Active Gram Sabha: For Empowered People And Accountable Panchayats 5 Roadmap for the Panchayati Raj (2011-17) An All India Perspective

States that fulfilled each of these 4 fundamental procedures and systems. O�en for want of good, requirements qualified for evaluation in terms relevant and periodic training, they are not able of DI. The indicators for the DI aim at assessing to perform their functions properly. Trainings the state of devolution in respect of the 3Fs. DIs need to be more women-friendly in terms of developed for PEAIS so far do not specifically venue, content, delivery, follow-up and gender capture the degree of Panchayat accountability sensitisation of men. and performance. 1.5.4 ICT In 2010-11, the DI was improved further as the Although all the District and Intermediate extent of devolution of powers by the States to Panchayats are connected with computers, Panchayats was assessed along with cumulative only around 20% GPs are reported to be having performance. For the incremental performance, computing facility. In some States, the GPs do initiatives taken by the States a�er 1st April 2009 not have any computing facility. Gujarat, Kerala, for strengthening Panchayats were assessed along Tamil Nadu and West Bengal have done good three dimensions i.e. the extent to which the work by providing computing facility to almost initiatives led to: (i) institutional strengthening, (ii) all the GPs. process improvement; and (iii) improved delivery of services. On the Incremental Devolution Index, 1.6 Efforts of Government of India and the Rajasthan, which has devolved the functions States in Strengthening Panchayati Raj of primary health, education, agriculture, social justice and empowerment and women 1.6.1 Round Tables and National Charter and child development, along with funds and The Ministry of Panchayati Raj (MoPR) organised functionaries was adjudged the best performer. a series of seven Round Tables of State Ministers Kerala, Maharashtra, Karnataka and Haryana of Panchayati Raj between July and December were ranked a�er Rajasthan on the Incremental 2004 around the country for evolving a national Devolution Index. consensus. (Full report available on website at www.panchayat.gov.in). The following From 2011-12, it is proposed to also assess the significant decisions were taken: performance of Panchayats. For this, State- Activity Mapping: Activity Mapping will be specific indicators will be developed based on completed by the States by April 1, 2005. model indicators, questionnaire and marking Decentralised Planning: States would scheme devised by MoPR. constitute DPCs in all districts by April 1, 2005. Spirit of Article 243G should be upheld in that 1.5 Current Status of Panchayat the powers and responsibilities for planning Infrastructure and Management Skills and implementation are to be devolved to the Panchayats alone and not to any parallel 1.5.1 Manpower and Office Buildings structures. A large number of Gram Panchayats in the Special Areas: Appropriate conformity country do not have even full time Secretary. legislation with PESA must be passed by the Around 25% of the Gram Panchayats do not nine PESA States. have basic office buildings Rotation of Reservation: State legislatures might consider extending the term of each 1.5.2 Database reservation rotation cycle. States should not Database for Planning, Monitoring etc. are introduce State-specific policies on reservation lacking in most of the cases. which result in diminishing the presence and role of women in Panchayati Raj. 1.5.3 Capacity of the Panchayat Functionaries Jurisprudence: MoPR would network with A large number of elected representatives of PRIs expert institutions to review and compile are semi-literate or literate and know li�le about the growing case laws on Panchayati Raj. their roles and responsibilities, programmes, MoPR would also put in place an appropriate

6 Active Gram Sabha: For Empowered People And Accountable Panchayats Status of the Panchayats and Approach to the Roadmap

institutional mechanism for building, needs to be primarily positioned as a decision- updating and disseminating a database on making support system for the Panchayats Panchayat related jurisprudence. themselves—a tool for transparency, disclosure Annual Reports: Annual administrative of information and social audit, a means for reports by Panchayats should facilitate be�er and convergent delivery of services to comparisons, identify innovations, help in citizens, improving internal management and drawing lessons and highlight policy issues efficiency of Panchayats, capacity building of requiring resolution. The action points of the representatives and officials of Panchayats, Seven Round Tables would underlie the basic and a medium of e-procurement. framework of the Annual SoPRs. Drawing Capacity Building: MoPR would prepare a upon the SoPRs of the States, the MoPR national Perspective Plan on decentralised would prepare an Annual Report on SoPR in training and capacity building for all PRI the country. functionaries with clarity in respect of Devolution Index: All states would prepare a timelines, resource inflows and objectives of DI to facilitate self-assessment. the capacity building and training. Election: There must be parity in the electoral processes between Parliamentary, Assembly 1.6.2 Role of MGNREGA, BRGF, Finance and Panchayat elections. MoPR would Commissions and Planning Commission encourage consultations between the Chief in energising the Panchayats Election Commissioner (CEC) and the State Election Commissioners (SECs) on evolving (1) MGNREGA a common electoral roll for all levels of Panchayats at district, intermediate and village elections. The Union Government would levels are the principal authorities for planning consider preparing a model code relating and implementation of the Mahatma Gandhi to the supervision, direction and conduct of National Rural Employment Guarantee Act elections to the Panchayats. (MGNREGA). It is notable that: Audit: The working of the Director of At least 50% of MGNREGA funds are to be Local Fund Audit (DLFA) and other similar spent directly by the Gram Panchayats (GPs) bodies would be upgraded, considering – in fact generally, GPs spend much more than that Panchayats are institutions of local self- 50% of the funds. government. This would require greater Gram Sabhas (GSs) are to recommend specific coordination between the DLFA and other projects to the GPs and conduct social audit of bodies viz. Comptroller and Auditor General MGNREGA works. (CAG). Panchayats would be associated District Programme Coordinators and with the preparation of simple and easily Programme Officers are to assist District comprehensible audit and accounting and Intermediate Panchayats respectively in standards and norms, emphasising fund discharge of their functions. management and tracking. This would go a long way in capping, reducing and greatly These features of MGNREGA offer a unique limiting opportunities for malfeasance and opportunity to strengthen and enable PRIs, corruption. particularly the GPs and GSs. The rejuvenated Social Audit: There was a need for giving and enabled PRIs, in turn, can become powerful greater emphasis upon undertaking social instruments in making MGNREGA a much audit at the Gram Sabha level and to establish be�er success. It is generally seen that States a symbiotic relationship between social and with vibrant and optimally-sized Panchayats formal audit. Social audit policies would be with requisite manpower have implemented prepared, based on best practices available MGNREGA be�er. Further, the central in different States and considered for their recommendation of the National Workshop on adoption by the State Governments. MGNREGA held on August 17 and 20, 2009 is also e-Governance: Information Technology (IT) for all-round strengthening of PRIs for effective

Active Gram Sabha: For Empowered People And Accountable Panchayats 7 Roadmap for the Panchayati Raj (2011-17) An All India Perspective

implementation of MGNREGA (Available on Strengthen DPC Technical Secretariat. website at www.panchayat.gov.in). Adopt competitive mode for CBT. Incentivise performance. A cardinal principle of MGNREGA is Create/Strengthen Project Management Units participatory, bo�om-up planning. Further, (PMUs) at National, State and District levels. convergence guidelines issued by Department of Rural Development (DoRD), which seek The programme is being restructured to increase to efficiently manage and conserve natural its impact on the regional backwardness and resources including soil and water, assume capacity of the Panchayats. critical importance. Much of such convergence could be planned and implemented effectively (3) State Finance Commissions only by GPs or GSs at the local level on a Own revenues of the local bodies being very sustained basis. small, they largely depend on the devolution of funds from the Central and the State (2) BRGF Governments and the Finance Commissions. In The Backward Regions Grant Fund (BRGF) fact, the SFCs recommendations could also play launched in February, 2007 intends to address an important role in the award of the Central regional imbalances in 250 identified backward Finance Commission (CFC). districts through: Decentralised, participative and holistic As such, the SFCs have to play a serious role in the planning (as an essential condition for ge�ing scheme of fiscal decentralisation while arbitrating BRGF grant) that starts from the grassroots on the claims to the resources by the local bodies upwards through the Panchayats and and the State Governments, and ensuring Municipalities, and culminates in a District greater stability and predictability to the transfer Plan consolidated by the DPC. mechanism. However, there has been a growing Bridging the critical gaps in development that concern about the functioning and reports of are not met through the existing schemes/ the SFCs. O�en the reports are analytically resources. weak; the SFCs themselves are not staffed with Building capacity of the Panchayats and adequate and knowledgeable professionals; functionaries. they have inadequate data and norms for service delivery to work with and at the end of it all, their The major achievement was preparation of recommendations are ignored. decentralised plan by 246 of 250 districts and local bodies therein. It has met local-felt needs (4) Central Finance Commission within the available amount, which are not met CFC has been devolving sizeable grants to the otherwise. The salient findings of World Bank PRIs since the past two decades. The 10 th CFC Evaluation of BRGF (July-Dec 10) are: devolved Rs. 4384 crore to PRIs for the period BRGF stimulated bo�om-up planning. 1996 to 2000. This amount increased to Rs. Discretionary Grants meet local needs. 8000 crore—an increase of 1.8 times—during BRGF empowers local bodies, but its 11th CFC’s term of 2000-2005. This further impact is dwarfed: Enhance BRGF Funding increased 2.5 times during the 12th CFC (2005-10) significantly. to Rs. 20,000 crore. Local bodies/States reluctant to use 5% of BRGF funds for staff component. In a radical departure from the past, the 13 th Delays in fund transfers: Change the fund CFC has linked devolution of funds to the PRIs release system to “front-loading with periodic to a share of divisible tax pool instead of a mere replenishment”. lumpsum. The Commission has also allocated District shares not related to backwardness: a performance grant subject to the fulfillment Link allocation to the indicators of of stipulated conditions which are expected to backwardness. bring about major improvement in the working

8 Active Gram Sabha: For Empowered People And Accountable Panchayats Status of the Panchayats and Approach to the Roadmap

of the Panchayats. The 13th CFC has devolved, GP. This results in unsuitable activities being at the present projection, Rs. 63,150 crore on the promoted or an under-spend of the funds. PRIs over the period of 2010-15. As compared to the 12th CFC grants, this is an increase of almost Overwhelming dependency on government 220%, and is likely to be higher given the revenue funding: Statistics show the overwhelming buoyancy. dependence of Panchayats on government funding. When Panchayats do not raise own (5) Planning Commission resources and instead receive funds from The XI Plan document and its Mid-Term Appraisal outside, people are less likely to request a social has placed great emphasis on capacity building audit and the Panchayats less accountable. and enabling Panchayats for effective delivery of policy and programmes, which presently are Reluctance to use fiscal powers: is the Panchayats managed within silos. However, this is yet to be have the right to levy tax on property, business, put in practice. markets, fairs and also for services provided, like street lighting or public toilets etc. Very few The Planning Commission has, vide its circular dt. Panchayats use their fiscal power to levy and 25.8.06, required the State Governments to a�ach collect taxes. The argument pushed by Panchayat along with the State Plan proposals (a) summary heads is that it is difficult to levy tax on your of District Plans; (b) a note on the present status of own constituency, especially when you live in empowerment of local governments; and (c) the the community. procedures adopted in ge�ing local dra� plans prepared. This, however, is not being done. Non-harmonisation: There is lack of harmony of State Acts and Rules, central legislations and 1.7 Why are the Panchayats not delivering programmes with the 73rd Amendment. in many States? Status of the GS: Empowerment of GSs Some reasons for their uninspiring performance can be a powerful weapon for transparency, are: accountability, inclusive growth and social audit. This can be and is being done in two Lack of adequate devolution: Many States ways. In the guidelines of different Ministries have not taken adequate steps to devolve 3Fs for Central Schemes, specific functions for GS to the PRIs to enable them to discharge their are being proposed by MoPR. Some States have constitutionally stipulated functions. Further, it is also provided for specific functions of the GS imperative that the PRIs have resources to match and Ward Sabha under their Panchayat Laws. the responsibilities entrusted to them. While The Ministry will take up with the other States, SFCs have submi�ed their recommendations, which have not made such provisions, to include not many States have implemented these or the same in the Panchayat Laws. taken steps to ensure the PRI’s fiscal viability. 1.8 Approach to the Roadmap Excessive control by bureaucracy: In some States, the GPs have been placed in a position Fi�y years of Panchayati Raj were celebrated on of subordination: GP Sarpanches have to spend October 2, 2009. It is certainly an occasion for extraordinary amount of time visiting Block introspection and revisiting the Constitution, Offices for funds and/or technical approval. These laws, policies, programmes etc. if: interactions with the Block staff office distort the PRIs are to become institutions of local role of a Sarpanch as elected representative. government. Benefits of ever-increasing public spending, Tied nature of funds: This has two implications. through plethora of vertical structures The activities stated under a certain scheme are and schemes, are to reach people in a good not always appropriate for all parts of the district measure.

Active Gram Sabha: For Empowered People And Accountable Panchayats 9 Roadmap for the Panchayati Raj (2011-17) An All India Perspective

A�endance and performance of grassroots efficient planning and implementation of functionaries are to improve. socio-economic development programmes and basic services, and control of corruption. Though the idea of self-governance has got These include changes in the Constitution legitimacy through the constitutional and legal a n d t h e A c t s f o r e ff e c t i ve d e vo l u t i o n t o framework, in actual practice, progress on the t h e Pan c h a ya t s ; m o d i fi c a t i o n i n d e s i g n ground is not very inspiring. We have miles to and implementation of CSSs; larger go before realising this constitutional vision. representation of local governments in The States need to take bold steps and the Legislative Councils; full implementation of Government of India (GoI) needs to provide P E S A A c t ; e ff e c t i ve fi s c a l d e c e n t r a l i s a t i o n necessary support. and financial information system; participatory and integrated planning based Recommendations of the Round Table of State on good database and requisite expertise; M i n i s t e r s of Pa n c h a ya t i Ra j , 2n d Administrative building organisational capacity of PRIs; Reforms Commission (ARC) and Inter State building capacity of elected representatives/ Council are the primary sources for formulating officials; and strengthening accountability t h e R o a d m a p . R e c o m m e n d a t i o n s o f t h e n2 d A R C o f P R I s . in its Sixth Report on “Local Governance – An I n s p i r i n g Jo u r n e y in t o th e Fu t u r e ” pa r t i c u l a r l y While GoI along with the State Governments c o ve r b o t h s t r a t e g i c a n d o p e r a t i o n a l i s s u e s has been working on these issues, there is f o r s t r e n g t h e n i n g Pan c h a ya t i R a j , s o e s s e n t i a l a need for further strengthening the efforts f o r d e e p e n i n g o f d e m o c r a c y, f o r e n s u r i n g particularly at the operational level.

10 Active Gram Sabha: For Empowered People And Accountable Panchayats Accountable and Efficient Functioning of the Panchayats

Chapter 2 Accountable and Efficient Functioning of the Panchayats

2.1 Participation at Village Level: marginalised sections are o�en not discussed. Gram Sabha and Ward Sabha People do not perceive GS as an empowered body that will effectively resolve issues placed before Article 243A gives constitutional recognition to it in an inclusive manner. Another reason why the GS as ‘a body consisting of persons registered GSs are seen as ineffective is the dysfunctional in the electoral rolls relating to a village comprised relationship between Panchayats and GSs. within the area of the Panchayat at the village level.’ The Constitution further stipulates that a The general perception is that the task before the GS may exercise such powers and perform such GS is approval of the lists of beneficiaries, approval functions at the village level as the legislature of for issuance of utilisation certificates and passing a State may, by law, provide. GS is the key to self- of the annual accounts. Panchayat heads bring governance and to transparent and accountable their own supporters and potential beneficiaries functioning of the GP. The GS is the only forum to a�end the meetings so that while the quorum is that can ensure direct, participative democracy. It completed, most of the other electors keep away. offers equal opportunity to all citizens of a village Hence, a sense of cynicism has developed about or cluster of villages to discuss and criticise, the efficacy of GS meetings. In fact, the ineffectual approve or reject proposals of the Panchayat nature of GSs in affected areas is stated to be one executive and also to assess its performance. It of the primary causes behind the rise of Le� Wing is the platform for effective social audit, which Extremism in the Scheduled Areas and their lies at the core of ensuring transparency and vicinity. accountability in the functioning of the system. For the rural local governance to be effective, To this end, there is a need to accord clearly energising GSs is the real challenge. There is need enunciated statutory powers and authority to to evolve mechanisms for regular and meaningful the GS. The first Round Table of State Panchayati meeting of the GS, active participation of its Raj Ministers at Kolkata on 24-25 July, 2004 members and monitoring of its functioning. recommended that the GSs should in fact be Good practices that provide people’s assemblies given power and functions in accordance with below the GS such as Ward Sabha, Mahila Sabha Article 243A of the Constitution to enable them and Bal Sabha should be promoted. Since the area to make the elected Panchayats answerable to and population of a Ward Sabha is smaller and the people. commonality of interest greater, people would discuss with close involvement ma�ers that they 2.1.1 Present Functioning of the GS wish taken up through the Ward Member to the It is generally seen that meetings of the GSs GP and evolve a consensus. are not held regularly and are marked by thin a�endance, particularly of women and 2.1.2 GS and Social Audit marginalised groups. There is li�le discussion Social audit is a close corollary of energetic GS on the proposals put forward for approval by the functioning. It would inculcate respect for Panchayat. Issues of common interest and of the downward accountability amongst elected

Active Gram Sabha: For Empowered People And Accountable Panchayats 11 Roadmap for the Panchayati Raj (2011-17) An All India Perspective

representatives and government officials. If Sarpanch and Panch should represent the GS keeps a close vigil on implementation and v oice of people and not be rendered as mere leakages, inefficiencies can be virtually eliminated. functionaries of the administration. Secretary, GS can monitor and discuss a�endance of while being accountable to the GS through government functionaries, functioning of GP, should be duly protected from the local schools, dispensaries, anganwadi centres, ration pressures. shops and other local institutions. GS can discuss reports of the Standing Commi�ees of the GP. GS Voluntary disclosure by the Gram Panchayat can also go through the list of beneficiaries under before the Gram Sabha on activities mentioned schemes such as Indira Awaas Yojana (IAY), above at (i) to (iii) will achieve the twin objectives Antyodaya Anna Yojana (AAY) and National of (i) empowering the Gram Sabha and (ii) Old Age Pension Scheme. transparency with more efficient delivery of services. The Ministry of Rural Development GS can be an effective forum for familiarising has issued instructions for voluntary disclosure the electors with the provisions of Right to under MGNREGS before Gram Sabha. Under Information (RTI) for eliciting information that various schemes, which affect the people and they are unable to obtain in the normal course. require people’s participation, MoPR has been taking up with other Ministries to give specific 2.1.3 Energising the GS functions and roles to the Gram Sabha. The The scope of deliberations in the GS meetings Ministry has also been advocating that selection can be enhanced to make these more interesting of beneficiaries is best done at Ward Sabha level, and meaningful, such as: particularly, for larger Panchayats. GS can be an effective forum for information sharing on programmes, schemes, good However, the Gram Sabha is primarily exposed practices and ma�ers of common interest for to programs implemented through Blocks. In which assistance from the State and Centre order to increase the quality of life, it is essential is available through different policies and that people should participate in other areas of programmes. service delivery like agriculture and allied sectors, GS can discuss issues such as: (i) quality of life education, health, drinking water, sanitation and and Millennium Development Goals; (ii) social artisan sectors. In disturbed areas with special security, gender justice, female foeticides, problems like trafficking of women and children, substance abuse (alcohol, tobacco and drugs), forced indentured labour, starvation and other hygiene and nutrition; (iii) sustainable distress conditions and chronic natural disasters, development, diversification of agriculture, Gram Sabha should have special roles. be�er cropping practices, opportunities for improving incomes, drought/flood T h e r e i s o n e wea k n e s s o f G r a m S a b h a , a p p a r e n t management, soil and water conservation; e ven i n t h e f u n c t i o n i n g f o r l i m i t e d n u m b e r o f and (iv) infrastructure development, etc. p r o g r a m m e s , a n d w h i c h r e q u i r e t h e i r a p p r o va l GS should fully participate in planning, u n d e r t h e g u i d e l i n e s . T h e a �e n d a n c e i s t h i n implementation and performance review and, sometimes, signatures are collected from of various schemes viz. BRGF, MGNREGA, individual members . O n e s o l u t i o n t o t h i s NRHM, SSA, ICDS, IWMP, RKVY etc. In p r o b l e m i s t h a t t h e e x p e n d i t u r e o f c o n d u c t i n g preparing plan and shelf of projects, realistic a G r a m S a b h a o r Wa r d S a b h a m e e t i n g s h o u l d assessment of resources should be made. All b e p r o v i d e d b y t h e s c h e m e . I f t h i s i s d o n e , State Departments should clearly articulate t h e n t h e G r a m S a b h a w i l l n o t b e a m a r s h a l l e d the role of GS in their Policy/Programme/ b o d y u n d e r t h e c o n t r o l o f a n e x e c u t a n t . T h e Scheme. guidelines for providing funds for Capacity B u i l d i n g a l s o n e e d t o b e e x p a n d e d s o t h a t t h e The role and responsibilities of Sarpanch, e x p e n d i t u r e i n c u r r e d o n a G r a m S a b h a m e e t i n g Panch and Secretary should be clearly defined. is admissible under it.

12 Active Gram Sabha: For Empowered People And Accountable Panchayats Accountable and Efficient Functioning of the Panchayats

2.1.4 Duty of GPs and Government Officials a�endance of the officials, the Gram Panchayat towards GS funds should be available for meeting these It is the bounden duty of the GPs and government small expenses which will go a large distance in officials to ensure that the GSs function properly ensuring their a�endance and participation. through close monitoring and mentoring of their meetings and the GSs are able to function 2.3 Transparency and Accountability as the core of the local governance. It is also important to ensure that the physical location Improving transparency and accountability in of the GS and si�ing arrangements infuse a the functioning of Panchayats is very important sense of confidence in women and people of for enhancing their credibility. The following marginalised communities to openly participate steps are proposed: in discussions. Sensitisation of GPs to RTI Benchmarking of service levels for assessing 2.2 Standing Committees performance Recommending community monitoring tools A number of subjects have been devolved on the like citizen’s charter, report cards such as Panchayats by the State and Central Schemes. All PAHELI (People’s Assessment of Health and these subjects cannot be discussed in the meeting Livelihoods) for assessing service delivery. of the Village Panchayat or the GS. A�ention of Documentation of social audit best practices, the GS is o�en a�racted to the most pressing alternative ways to provide social audit, and challenges and issues at the time of the meeting. additional support to social auditing. Many states, therefore, have formed subject-wise Standing Commi�ees of the Panchayats to give Steps are needed for improving access to a focused a�ention to various subjects. Thus, its information to the people. One immediate Standing Commi�ees on Agriculture, Health, measure can be to make some disclosure Education and Water Supply and Sanitation are voluntarily. GP could be required to publish able to look a�er these particular subjects. The by writing permanently on suitable walls or Standing Commi�ee will formulate its own plan permanent display board in its office or in other keeping the broad policy of the State and the local public places: needs in mind. At present, the functioning of the Roles and responsibilities of the Panchayat, Standing Commi�ees is generally weak. Capacity and elected and official functionaries development and training programmes must Receipt and expenditure be designed to inform elected representatives, List of beneficiaries for programmes specially women, on statutory aspects of Standing List of areas approved Commi�ees to empower them for effective List of the rights under various Acts like participation. Additionally, the a�itude of the MGNREGA, RTE, RTI, Citizen’s Charter etc. official members for their be�er participation in Progress of important programmes like functioning of the Standing Commi�ees is also MGNREGA every month required. A Standing Commi�ee on women- Availability of services like dispensary- related issues like domestic violence, safety, hours etc. security and basic needs is required. This should be in addition to building capacities Mere instructions by the State Government and sensitivity of the Panchayats in supplying to functionaries of the above departments information to the people as per their need. particularly agriculture and allied activities, for some of which GP level officials may not be in 2.4 Democratic Functioning of the position, may not be adequate. O�en in many of Panchayats these Departments, officials at the grassroots level do not get TA or DA for the tours. Since, it is in Panchayats need to function democratically by the interest of the Gram Panchayat to ensure the following a consultative and inclusive decision-

Active Gram Sabha: For Empowered People And Accountable Panchayats 13 Roadmap for the Panchayati Raj (2011-17) An All India Perspective

making process and not at the discretion of the provide 50% reservation for women in Panchayats heads of the bodies at all three levels.. as women suffer multiple deprivations of class, caste and gender. Enhancing reservation in 2.5 Organising the Poor for their Panchayats will lead to more women entering Participation through Self-Help Groups the public sphere.

Self-Help Groups (SHGs) have become powerful Accordingly, a Bill to amend Article 243D to community organisations in some states with provide 50% reservation for women in seats and visibly effective social capital. The SHG system also offices of Chairpersons in all three tiers of has also resulted in improvement of the financial Panchayats was introduced in the Lok Sabha on situation of ordinary people, especially women, 26.11.2009. Presently, out of approx 28.18 lakh mainly through thri� and credit operations, thus elected representatives of Panchayats, 36.87% providing security against vulnerability. (around 10 lakh) are women. With the proposed Constitutional Amendment, the number of Because of the community-based and democratic elected women representatives (EWRs) is functioning of SHGs and perceived efficiency, expected to rise to more than 14 lakh. they have been used as extension mechanism as well as instruments in the delivery of services A number of steps are necessary for and implementation of projects. This is o�en empowerment of women, such as: done at the expense of the legitimate authority A provision of women component plans in of PRIs, because officials are comfortable in PRI budgets. dealing with interest groups. This tendency Linkages with SHGs in all levels of PRIs. has aggravated as officials find dealing with Adequate training and capacity building of political bodies like Local Governments quite EWR. messy and uncomfortable. Leadership training programmes for EWRs Training of other functionaries on gender This dichotomy is being resolved in Kerala issues through the association of Kudumbashree Peer-to-peer and horizontal learning from (Federation of the SHGs) with the Panchayats success stories and also in West Bengal by involving the SHGs Sharing good practices and exposure visits in Panchayats. Their achieving minimum level Political parties must put up women of income will be crucial for being able to candidates. participate freely, which is essential for expansion Women candidates be given opportunity to of democracy. serve a full term. Mahila Sabhas be encouraged to facilitate Another problem with SHG is that a typical Gram w omen’s concerns and be raised on priority Panchayat would have several of them sometimes basis in meetings of Gram/Ward Sabhas. running into a hundred of SHGs. O�en these Separate quorum for women’s participation SHGs have separate economic interests, which in Gram/Ward Sabhas. may or may not be convergent. There is however no point in wishing away the importance of Self MoPR will take up with the States for Help Groups and, particularly, their federations. inclusion of provisions under the Panchayat laws The ground level political reality will have to for recognition of Mahila Sabha and separate determine the relationship between SHGs and quorum for women participation in Gram/Ward PRIs. Sabhas.

2.6 Women and Panchayats 2.7 Role of the Non-Office Bearers

The President of India in her address to the Non-office bearers can become a champion of Parliament on 4.6.09 had mentioned the intent to their constituency defending public interest

14 Active Gram Sabha: For Empowered People And Accountable Panchayats Accountable and Efficient Functioning of the Panchayats

in the Panchayat body and channel the mechanism for redressal of grievances against grievances, needs and aspirations of their malfunctioning of those bodies. There will be electorate into the scrutiny process without two types of arrangement for that purpose. The jeopardising the process of the Panchayat. The first type can comprise a system for recording of role of non-office bearer would be to represent grievances in each Panchayat body along with their constituents, participate in the policy a system for monitoring of grievance redressal. and budget decisions of the general body, The second type will be redressal of grievances suggest policy improvements, and scrutinise through an Ombudsman as provided in the the executive's policy proposals and their Model Panchayat Legislation. (See website www. implementation. panchayat.gov.in). Both these institutions are needed for proper vigilance over PRIs. There is a need to take steps to clarify their roles as well as arrange for their capacity building. In some states, the higher level of PRIs has been empowered to go through records and physically 2.8 Role of Political Parties inspect schemes being taken up by any tier of the PRI. There is need for consensus building on strategic issues of development among all Panchayats, however, also have a role to play in the political parties. In many States, the addressing day-to-day challenges pertaining to opposition parties are also represented ma�ers with the next level of Panchayats or with on the Panchayat commi�ees. One very administration. important aspect of involvement of the political parties in opposition is to work as 2.10 Federation of Panchayats the watchdogs for monitoring activities of the majority. 2.10.1 India is the largest democracy in the world and, ironically, does not have a federation Legal provisions create only the framework; of PRIs. The federations promoted by NGOs are and effective participation of all stakeholders not elected through a democratic process and will require appropriate political will and therefore lack a legal entity. Some of the bye- democratic spirit from all the members. laws of these federations also gives prominence Moreover, it is the duty of the majority to create to NGOs over the PRI’s elected representatives, conditions for participation of all (including which is contrary to the spirit of the Decentralised the opposition parties) with freedom, mutual Governance. Therefore, the federation under the respect and dignity. process of constitution should be on an elected basis. There has been a debate whether elections at the Gram Panchayat level should be based on 2.10.2 At the Block level, the general body may political parties with party symbols. This is consist of all the heads of Gram Panchayats, one happening in practice in many places. A view has of the elected members of the Panchayat Samitis been that multi-partisanship in a small body like and one Ward Member elected from each Gram Gram Panchayat will make it divided, fractious Panchayat. They may elect one Sarpanch, one and weak and therefore, inefficient. Another ward member, one Panchayat Samiti member view is that it is a part of the democratic process and of course the Chairman. The District and natural. States need to take a conscious view level General Body may consist of the above in the ma�er. elected members and all the elected members of the Zilla Parishad. They will elect one Ward 2.9 Vigilance, Redressal of Grievances and member, one Sarpanch, one Panchayat Samiti Ombudsman Member, one Chairman of Panchayat Samiti, In order that the Panchayats become true one Zilla Parishad member and of course the institutions of the people, there should be a strong Chairman of the Zilla Parishad. This unit of

Active Gram Sabha: For Empowered People And Accountable Panchayats 15 Roadmap for the Panchayati Raj (2011-17) An All India Perspective

six members from each district, two from public, non-governmental organisation (NGOs), each tier will constitute the General Body for banks and funding sources. The federations the State. and associations may sustain and promote their networking activities through the internet, 2.10.3 The election, except at the State level, video conferencing and regular broadcasts over may be conducted in the normal meetings television and community radio on Panchayat of the PRI and so will not involve any other programmes. expenditure. At the same time, the election through the minutes of the PRIs would provide 2.11 Panchayat and the Civil Society the federations a legal status under common law. The General Body of the State may elect one All possible steps need to be taken for creation to three units of representatives depending on of an ambience so that the PRIs and civil population, which will constitute the National society mutually reinforce each other in be�er Federation. The Chairperson of the National understanding of the issues and in strengthening Federation may be elected for one year though the processes for good governance. The interface the General Body will remain valid for five between civil society and PRIs, nevertheless, needs years. Any member who loses his position to be watched with care. Too much emphasis on in the original PRIs to which he/she had been the NGOs may weaken the Panchayats without elected would lose his/her membership in the producing a be�er alternative. Federation. Panchayats have been traditionally doing works, 2.10.4 The general bodies of the federations/ which are assigned to Block and therefore associations at various levels should have one- have been associated as a limited platform for third representation of women. A sub-group schemes implemented through the Blocks. As of EWRs could be constituted to address their has been discussed above, this is contrary to its special needs. function and role as a common platform for all issues of Governance which affect the people 2.10.5 The principle which has been and which require people’s decision. The incorporated in this procedure is to expansion of PRI’s functions should be enabled re-enforce the independence of the three tiers through amendments of guidelines of Central of Panchayats under the Constitution. Such a Schemes and amendment of State laws to specify Federation will have legitimacy and will be in a functions and roles relating to Panchayats and position to effectively claim its rightful place in for insistence on voluntary disclosure under the decentralised governance. guidelines of schemes. The GS meetings should be formally funded under the schemes and the 2.10.6 Every Federation should have its own grants given to the Panchayats like Finance fund, into which may flow contributions from the Commission grants. Panchayats, State and Central Governments, the

16 Active Gram Sabha: For Empowered People And Accountable Panchayats Accountable and Effi cient Functioning of the Panchayats

2.12 Action Points

Defi ne powers of the Gram Sabha in the Constitution and State legislation along the lines of PESA. (GoI and States) Provide for Ward/Mahila Sabhas with specifi c functions. (GoI and States) Ensure eff ective functioning of the Gram Sabhas: Regular and purposeful meetings, participation of the marginalised groups, a� endance of offi cial functionaries, preparation of minutes of the meetings and follow-up etc. (States and Panchayats) Strengthen social audit and give proactive information to the Gram Sabha. (States) Promote democratic functioning of the GPs (not dominated by Sarpanch) and activate Standing Commi� ees. Grade performance of the Panchayats and provide incentives/disincentives based on such a gradation. (GoI and States) Establish Ombudsman to guard against mal-administration and malfeasance of the Panchayat functionaries. (GoI and States) Provide essential offi ce space, manpower and infrastructure to the Panchayats. (States) Build robust but simple systems, processes and procedures for accountability and effi ciency of the Panchayats. (GoI and States). Launch Green Kerala Express type reality show on the Panchayats.

Active Gram Sabha: For Empowered People And Accountable Panchayats 17 Roadmap for the Panchayati Raj (2011-17) An All India Perspective

Chapter 3 Functions of the Panchayats

3.1 Functions of a Model Local Government Environment and Natural Resource Management Drawing on the experience of mature Western democracies, the major functions of a model 3.2 Constitution and the Functions of the local government can be placed into following Panchayats six categories. These can serve as an ideal for the PRIs in India. In fact the PRIs, like District Article 243G, read with the Eleventh Schedule, Administration, need to function as a common stipulates that State Legislative may by law platform for planning, implementation and endow the Panchayats with such powers and monitoring of all line department functions and authority as may be required to enable them to programmes. function as institutions of self-government. Such laws may also provide for the devolution of Governance and Regulatory powers and responsibilities upon Panchayats for Agency Functions the preparation and implementation of plans for Civic Services economic development and social justice as may Economic Development be entrusted to them, including those in relation Social Justice to the 29 ma�ers listed in the Eleventh Schedule.

Agriculture, incl. extension Drinking water Cultural activities Land improvement, land reforms, Fuel and fodder Markets and Fairs consolidation, soil conservation

Minor irrigation, Roads, culverts, bridges, Health and sanitation water management, ferries, waterways, other means of hospitals, primary health centres, watershed development communication dispensaries Animal husbandry, Rural electrification, Family welfare dairying and poultry distribution of electricity Fisheries Non-conventional energy Women & Child Development Social forestry, Poverty alleviation programme Social Welfare, welfare if handicapped farm forestry and mentally retarded Minor forest produce Education, including primary Welfare of the weaker sections, and secondary schools in particular of SCs and STs Small scale industries, Technical training, Public Distribution System food processing industries vocational education Khadi, village and Adult and non-formal education Maintenance of community assets cottage industries Rural housing Libraries

18 Active Gram Sabha: For Empowered People And Accountable Panchayats Functions of the Pancha y ats

3.3 Devolution and Activity Mapping of clear principles of public finance and public accountability, and above all, the governance 3.3.1 Devolution by the States principles of Subsidiarity, Democratic Devolution of 3Fs by the States is highly uneven Decentralisation and Citizen-Centricity. across States. While across the key sectors, the State Panchayat laws mandate a role for the 3.3.3 Steps in Activity Mapping Panchayats, in most cases, the law is ambiguous The first step towards activity mapping is the enough to allow for both decentralised and unbundling of each Sector into services, activities centralised modes of programme or service and sub-activities to a level of disaggregation that delivery to co-exist. In some cases, where the is consistent with the devolution. For example: states have clearly devolved such responsibilities to the Panchayats, these are either still largely Rural Education, Health, Drinking Water and being provided in a top-down manner through Sanitation are Sectors. the state civil service machinery or the ability of Education would include services such as Panchayats to deliver these is limited because Primary, Secondary and Tertiary Education of the deficient financial and administrative and Vocational Training. powers and therefore, services continue to fail Services can be further unbundled into the citizen. activities. For example: Basic education could be unbundled into activities such as: Doubts are o�en expressed about the capacity Identifying and recruiting persons with and accountability of PRIs. This is a vicious appropriate teaching skills. circle since unless 3 Fs are devolved, the PRIs Monitoring teacher a�endance. would not be able to prove their comparative Procuring and maintaining an inventory of advantage. Empowering Panchayats with clear educational materials and equipment. roles and authority assigned to different levels Se� ing up school buildings with adequate through activity mapping, is a strong incentive drinking w ater and sanitation facilities. to build capacity and also to get other pre- Repairing and maintaining existing requisites for effective performance into place. schools. Ensuring an even spread of teachers, 3.3.2 Need for Activity Mapping wherever necessary. Clarity on the role and responsibilities of the Panchayats of different tiers is provided by The detailed Activity Map prepared by Kerala the Activity Mapping which, thus, becomes an State could be a good reference point for the important step in the devolution of functions to activity mapping. The States could consider the Panchayats. adopting this with suitable modifi cations, taking into account the wide diversity in their size Further, the 2nd ARC in its Sixth Report relating (area and population), devolution of functions, to the Local Governance has recommended relationship between the three tiers, capacity of that there should be a clear cut delineation of PRIs, terrain, climate etc. functions for each level of the local governance. This is not a one time exercise and has to be done Along with the activities to be devolved, relevant continuously while working out locally relevant institutions would have to be transferred to the socio-economic programmes, restructuring Panchayats for maintenance and upkeep. organisations and framing subject ma�er laws. F i n a l l y, t h e A c t i v i t y M a p w i l l n e e d t o b e i s s u e d i n It may be noted that the Activity Mapping t h e f o r m o f a d e t a i l e d G o ve r n m e n t O r d e r ( G O ) . does not imply that the subjects are devolved wholesale. The Subjects or Sectors need to 3.3.4 Clear Transfer of Functions to the PRIs be unbundled and assigned to the different Pursuant to the GO suggested above, each Line levels of Governments and PRIs on the basis Department will need to issue orders for transfer

Active Gram Sabha: For Empowered People And Accountable Panchayats 19 Roadmap for the Panchayati Raj (2011-17) An All India Perspective

of specific Schemes, which should be relatable of 3Fs upon the PRIs (including an indicative to the individual Heads of Account in the activity matrix) State Budget. Moreover, since long established Comparative advantages of PRIs over codes prescribing technical standards and departmental structures in the planning, approval processes (such as the PWD code, implementation and monitoring of schemes circulars, transfer orders, etc.) would have a PRIs and DPCs as the appropriate mechanism tendency towards continued implementation for convergence of plethora of schemes, of the devolved functions through the Line pooling of resources and be�er outcomes Departments, the Departments would need Essential features that scheme guidelines to issue consolidated revised guidelines for should incorporate the schemes to be implemented through the Disadvantages of creating parallel bodies to Panchayats. The role and action to be taken by the exclusion or dilution of the role of PRIs the institutions, officials and non-officials at and their Commi�ees. different levels should be clearly mentioned in these guidelines. 3.4.3 Any direct and upfront involvement of PRIs in the planning and implementation of Moreover, the devolution should not be limited CSSs/ACA—that is otherwise done through to the planning and promotional responsibilities departmental structures—does impact but also the implementation (but not as a outcomes positively by making interventions contractor). more appropriate, location responsive and user- friendly. The scheme guidelines, therefore, need Furthermore, matching devolution of funds and to be modified to: functionaries is also required for PRIs to perform Provide centrality to PRIs (which would also their assigned functions effectively. enhance the coverage and outreach). Specify roles and functions of different levels 3.4 Role of CSSs and Additional Central of Government, including the three tiers of Assistance (ACA) in devolution of 3Fs the PRIs, through detailed activity mapping. upon the PRIs 3.4.4 More specifically, the scheme guidelines 3.4.1 The Union Government has a critical role must pay a�ention to the following aspects: to play in the devolution of 3Fs upon the PRIs, Annual action plan of the scheme should because of its basic responsibilities to ensure flow out from the participatory and holistic governance in accordance with the constitutional decentralised plan of the concerned tier. provisions and also because of the increasingly Every activity assigned to a specific level large fiscal transfers it makes to the States in of Panchayat needs to be supported with the functional domain of the PRIs, mainly appropriate authority over functionaries and through CSSs and ACA. Every scheme guideline powers to handle finances. is a potential vehicle to carry the message of Sufficient untied or flexible funds must be strengthening Panchayats as envisaged by the provided to address specific local needs and Constitution and the impact of such signals also for meeting the additional administrative cannot be underestimated. MGNREGA is one expenses of PRIs on account of the central such good example. schemes. Fund Transfers: Specific mode and timeline by 3.4.2 MoPR has vide its le�er dt. 19.1.09 on the which funds are transferred must be specified delineation of role and responsibilities of the as also the entities that handle funds and the PRIs in CSS and ACA, elucidated: system of utilisation report. Seamless and Constitutional provision relating to the time bound flow of funds to the expenditure responsibilities of the PRIs in the planning levels or just-in-time delivery of funds would and implementation of schemes both require IT for electronic tagging and for Critical role of the CSSs or ACA in devolution tracking of funds.

20 Active Gram Sabha: For Empowered People And Accountable Panchayats Functions of the Panchayats

Specific measures to build competencies at the Programme (NRDWP), States are incentivised appropriate level with training programmes, to devolve management of rural water supply modalities of training, basic core content and schemes to PRIs by providing 10% of the total pedagogy, Frequently Asked Questions funds as incentive fund. For greater impact of (FAQs), self-learning tools, Information, this Incentive Fund, the Department of Drinking Education and Communication (IEC) literature Water and Sanitation (DDWS) proposes to devolve etc. 1-2% of the total funds could be earmarked funds based on a Management Devolution Index as non-divertible for the purpose. which will measure the extent of devolution with The method by which accountability will be regard to rural water supply to PRIs in each State measured and enforced. through an independent agency. It is suggested The guidelines must also specify how the that similar incentive funds may be introduced data on planning and implementation of the in other CSS to incentivise States to devolve 3Fs scheme will be placed in the public domain in each of the 29 subjects listed in the Eleventh through suo moto disclosures, its process and Schedule. periodicity. Details are required of the annual audits and 3.5 Parallel Bodies and the Functioning of evaluation mechanisms prescribed. PRIs Systems for financial accountability must be put in place taking care not to violate specific O�en, Parallel Bodies (PBs) are created for financial rules and guidelines. supposedly speedy implementation and greater System of performance based rewards for accountability. However, there is li�le evidence Panchayats needs to be instituted as has to show that such PBs have avoided the evils been done in the case of Rural Sanitation including that of partisan politics, sharing of Programme (Nirmal Gram Puraskar). spoils, corruption and elite capture. ‘Missions’ (in particular) o�en bypassing mainstream 3.4.5 Each CSS entrusted to the Panchayats programmes, create disconnect, duality and for planning and implementation should alienation between the existing and the new earmark separate allocations to meet the costs structures and functions. In addition, there are of administration on the pa�ern of the 6% issues of continuity beyond the life of CSSs or earmarked for this purpose under MGNREGA. ACA, subsequent operation and maintenance, It should be permi�ed to use an earmarked and continued accountability. PBs usurp the part of such allocations for training, manpower, legitimate space of PRIs and demoralise the PRIs Management Information System (MIS) and by virtue of their superior resource endowments, evaluation. though such resources are available only during the lifetime of schemes. Arguments 3.4.6 Proliferation of CSSs/ACA has implications such as protection of funds from diversion for convergent planning and implementation have now weakened since advances in core for be�er outcomes and therefore, a conscious banking systems, treasury computerisation and policy in this regard is urgently required. More connectivity can enable instantaneous, seamless so, silo and top down approach of these CSSs/ and just-in-time transfer of funds directly to ACA has the problem of not reflecting people’s the implementing PRI. Expenditures by PRIs needs and aspirations. Much larger untied can also be monitored on a real time basis, thus funds to the PRIs has several advantages. doing away with the need for intermediate PBs Therefore, National Rural Health Mission to manually transfer funds and collect, pool and (NRHM) framework, for example, provides analyse data on expenditures. central role to the Panchayats, though it has not been acted upon. Ministries should, therefore, rapidly phase out such PBs from their schemes. If necessary, the 3.4.7 Management Development Index technical and professional components of these Under the National Rural Drinking Water PBs could be retained as Cells or Units within

Active Gram Sabha: For Empowered People And Accountable Panchayats 21 Roadmap for the Panchayati Raj (2011-17) An All India Perspective

the PRIs for carrying out their technical and 3.7 Attendance and Performance of professional functions. Local Functionaries

3.6 Gender issues A� endance and performance of local functionaries can be be� er ensured by the 50% reservation for women in the Panchayats PRIs than the line department hierarchy (in fact more than 50% actual representation in as the experience shows. The PRIs should, many States) has far-reaching implications for therefore, have eff ective control over the PRIs functioning as a platform for all women them. and child policies/programmes.

3.8 Action Points

Emphasise governance, regulatory and convergence function of the Panchayats. Devolve functions as per Activity Mapping. To begin with, 3Fs relating to at least Primary Education, Primary Health, Women and Child (including ICDS), Social Justice, Drinking Water and Sanitation, Civic Services, Agri Extenstion, to be devolved fully to the Panchayats by the States who have not done so. Other States to progressively aim for devolving 29 ma� ers listed in Schedule XI of the Constitution. (States) Refi ne “Devolution Index” to capture critical indices and standards. Implement MoPR advisory dt. 19.1.09 on delineating roles of the PRIs in CSSs/ACA. (GoI) Merge PBs in the Standing Commi� ee of the Panchayats.

22 Active Gram Sabha: For Empowered People And Accountable Panchayats Functionaries of the Panchayats

Chapter 4 Functionaries of the Panchayats

4.1 First Round Table Resolutions on arrangements with a definite timeline were Manpower for the PRIs suggested:

PRIs are yet to come up as units of self- (a) Gram Panchayat Cadre governance due to inadequate organisational GP should normally have four categories of staff: capacity. In the 1st Round Table of Ministers in- Core staff for its internal processes: PDO/ charge of Panchayati Raj held at Kolkata on 24- Secretary, Accountant, Technical Assistant 25 July, 2004, it was, inter alia, resolved that: and Computer Operator Devolution of functionaries to the PRIs should Scheme Specific Staff: for example, Rozgar be pa�erned on the mapping of activities Sahayak for MGNREGA related to the devolved functions. Functional Staff: such as Teachers, ASHA, Staff provided on deputation to assist the Anganwadi workers PRIs for devolved activities must be under Contractual skilled workers: such as Pump the disciplinary supervision and control of Operator, Motor Mechanic, Hand Pump the elected authority. Mechanic, Electrician, Sanitary workers States or UTs may consider instituting a Panchayati Raj Administrative and Technical (b) District Panchayat Cadre Service. District Panchayat Cadre (DP Cadre) could Progressive merger of the District Rural comprise of officials who have jurisdiction Development Agencies (DRDAs) with the over areas larger than a GP. District Panchayats should be done to ensure The DP cadre could be constituted by a availability of the technical expertise and judicious mix of direct recruitments and other facilities of the DRDAs to all tiers of promotion from GP cadre. the PRIs under the overall responsibility and Employees of DP cadre would supervise the disciplinary control of the elected authority. work of the functionaries at the GP level. Examples of this would be: Extension Officers, 4.2 2nd ARC and Manpower for the PRIs Junior Engineers etc. Some employees listed above for GP cadre could also fall in this The 2 nd ARC, in its 6 th Report titled ‘Local cadre. Governance—An Inspiring Journey into the Future’ has also recommended that Panchayats (c) State Cadre should have the power to recruit personnel and GP cadre could serve as a feeding cadre to DP to regulate their service conditions subject to such cadre. laws and standards as laid down by the State Class I and II could be State cadre for which Government, within a period of three years. DP could be the feeding cadre.

4.3 Manpower for the PRIs (d) The possible promotional channel could be illustrated as follows: 4.3.1 In the advisory issued by MoPR to Panchayat Secretary (GP Cadre)/Village the States/UTs vide le�er dated 13.10.2009, Development Officer (DP Cadre)/Extension the following transitional and permanent Officer (Panchayat) (DP Cadre)/BDO (State

Active Gram Sabha: For Empowered People And Accountable Panchayats 23 Roadmap for the Panchayati Raj (2011-17) An All India Perspective

Cadre) – Further promotions as per State 4.4 Panchayat Manpower for Supporting policy. MGNREGS Anganwadi Worker (GP Cadre)/Mukhya Sevika (DP Cadre)/ACDPO (DP Cadre) Since MGNREGA mandates the Panchayats CDPO (State Cadre)/State Directorate/ as the principal planning and implementation Commissionerate. agency, one Panchayat Development Offi cer and Agriculture Ass� . (GP Cadre)/Extension one Technical Assistant should be provided to Offi cer (Agr.) (DP Cadre) each GP or a cluster of GPs with 5000 population Agriculture Offi cer (DP Cadre)/State Cadre using MGNREGS funds.

4.3.2 It is well recognised that the size of 4.5 Cadre Management Panchayats varies widely from State to State and therefore, the core and other staff strength, Administrative reforms of this nature would mode of selection, appointment etc. may not require an extensive study of existing cadres, be uniform. Reasonable norms based on the staffi ng pa� erns, strengths of each cadre, area/population/terrain of the Panchayat and Recruitment Rules etc. The Recruitment Rules for functions devolved need to be laid down. these cadres would require amendments to reach the fi nal destination without disadvantaging 4.3.3 As regards the creation of a Panchayat cadre, the existing personnel. MoPR would support the Maharashtra model is worth considering, the States in engaging reputed consultancy which is broadly as follows: organisations to commission studies to: Class-I and II offi cers are State Cadres and Compile information of all cadres, their strengths, are posted from line departments to Zilla vacant positions, anticipated future vacancies Parishads on deputation. with timelines, Recruitment Rules etc. However, Class-III and Class-IV employees Make recommendations on rationalisation/ are Parishad employees and not State Govt. convergence of various cadres. employees. Suggest changes required in Administrative There are separate service rules for each of Orders and rules etc. for implementing the these categories. accepted recommendations. In the State Govt. cadre (Class-II), certain Suggest other implementable measures that percentages of vacancies are always fi lled would result in transition to the desired state through promotion from the District cadre. along with timelines. Give job description for each of the posts 4.3.4 Resources for deploying core staff of and develop skill development matrices for Panchayats could be found out of the State resources, training of persons to discharge their duties BRGF, MGNREGA, Finance Commission Awards assigned to them effi ciently. etc. as per a well considered phasing. Other staff Make appropriate recommendations for could be fi nanced under the existing Plan/non- performance measurement at each of the Plan arrangements. levels in GP and DP cadres.

4.6 Action Points

Provide at least PDO, Accountant-cum-DEO and Technical Assistant to each GP or a cluster of GPs with 5000 population. Compile information of all cadres, their strengths, vacancy positions, anticipated future vacancies with time lines, Recruitment Rules etc. Rationalise/Converge various cadres into appropriate Panchayat Cadres and make corresponding changes in the Administrative Orders and rules etc. Give job description for each post and identify skill development matrices for each, for training of the personnel.

24 Active Gram Sabha: For Empowered People And Accountable Panchayats Panchayat Finances and Accounting

Chapter 5 Panchayat Finances and Accounting

5.1 Resources of the Panchayats the withdrawal of such moneys there from as may be specified in the law.” 5.1.1 Over the last decade, the own sources of revenue of PRIs have been less than 10% of 5.2.2 Article 243 (I) of the Constitution mandates their expenditure. In contrast, more than 90% se�ing up of SFC with the objective of reviewing of their expenditure has been financed through the financial position of the Panchayats and CSS, ACA or other government grants, the major making recommendations as to the principles recipient of this source being the GPs. which should govern the following: Distribution between the States and 5.1.2 Data from the Thirteenth Finance Panchayats of the net proceeds of the taxes, Commission shows that Panchayat’s own duties, tolls and fees. sources of revenue are very meager. Five out of Determination of taxes, duties, tolls and fees 28 states reported ‘nil’ as own sources of revenue to be assigned to Panchayats. of the Panchayats. Only in the three states—Goa, Grants-in-aid to the Panchayats. Kerala and Haryana—did the Panchayats report Measures needed to improve the financial more than Rs. 100 per capita coming out of their position of the Panchayats. own revenue-sources. In contrast, per capita expenditure through GPs was more than Rs. 5.3 2nd ARC and Panchayat Finances 500/- per capita in three states of Chha�isgarh, Goa and Kerala. 2nd ARC, in its 6 th Report on ‘Local Governance' has drawn the following broad conclusions on 5.2 Constitutional Provisions on Panchayat Panchayat Finances: Finances Panchayats are heavily dependent on grants from Union and State Governments. 5.2.1 The taxation power of the Panchayats A major portion of grant from the Centre and essentially flow from Article 243 (H), which reads States is scheme specific. Panchayats have that “the Legislature of a State may, by law: limited discretion and flexibility in incurring Authorise a Panchayat to levy, collect and expenditure. appropriate such taxes, duties, tolls and In most of the critical Eleventh Schedule fees in accordance with such procedure and ma�ers like primary education, healthcare, subject to such limits. water supply, sanitation and minor irrigation Assign to a Panchayat such taxes, duties, tolls even now, the State Government is directly and fees levied and collected by the State responsible for implementation of the relevant Government for such purposes, and subject programmes and hence, expenditure. to such conditions and limits. Internal resource generation at the Panchayat Provide for making such grants-in-aid to the level is weak. This is partly due to a thin tax Panchayat from the Consolidated Fund of the domain and partly due to Panchayats’ own State. reluctance in collecting revenue. Provide for constitution of such funds for Overall, a situation has been created where crediting all moneys received, respectively Panchayats have responsibility but grossly by or on behalf of the Panchayat and also for inadequate resources.

Active Gram Sabha: For Empowered People And Accountable Panchayats 25 Roadmap for the Panchayati Raj (2011-17) An All India Perspective

5.4 Sources of Panchayat Funds their methods and approaches as advised in our le�er dt. 27.4.2009. 5.4.1 Need for fiscal decentralisation and raising own resources SFCs should consider devolving share of tax There is an imperative need for an effective income (like the 13th FC) instead of fixed grants fiscal decentralisation so as to ensure that the to the Panchayats. Kerala, for example, allots finances available with the Panchayats match the three-eighths of the amount of the basic tax transferred functions based on activity mapping collected by the Government to the village for the devolution of 3Fs. Panchayats. Thus, the income of the village Panchayat automatically increases with the Further, there is a need to re-orient the regulatory increased tax revenue of the State Government. and policy regime and give the Panchayats more tax handles as also to ensure that the taxation SFCs should work out standard methodology powers given are effectively exercised since for normative assessment of the revenue receipts generating own revenue is the best way to and expenditure of the local bodies. This should increase autonomy, efficiency, credibility and include the requirements of expenditure on accountability of Panchayats. maintenance of assets and staff, and discharge of statutory civic functions. On the receipt side, Moreover, fiscal decentralisation needs to be the assessment should include potential and viewed as a comprehensive system beginning actual collection of property taxes, occupation/ with the assignment of expenditure and revenue professional taxes, rents and user charges etc. responsibility. Based on such assessment, the SFC should make recommendation for transfer of resources from The Twel�h Finance Commission, on the basis State Government to the local bodies. The CFC of some studies, has suggested measures such as should, in turn, make its recommendations making it obligatory for PRIs to levy certain taxes, in relation to Local Bodies based on the SFC’s prescribing minimum revenue collection, levy of reports. This would avoid the need for the CFCs user charges, higher efficiency in tax collection, taking recourse to ad hoc principles for fiscal economy in expenditure and transparency in transfers in relation to the local bodies. functioning. 5.4.3 CFC Devolutions The Thirteenth Finance Commission has The 13th FC has, in a radical departure from also reiterated the need for local bodies to the past, devolved to the local bodies a raise their own tax and non tax-revenues, share of divisible tax pool instead of fixed particularly by exploiting sources like grants. The Commission has also allo�ed a property tax, profession tax, recovery performance grant subject to the fulfillment of maintenance costs at least for water of stipulated conditions, which are expected supply, sewage disposal and solid waste to bring about considerable improvement in management, levy of service charges on the working of the Panchayats. The 13th CFC Government properties, incentivisation of has devolved Rs. 63,150 crore on the PRIs local bodies for revenue collection etc. over the period 2010-15. As compared to the 12th FC grants, this is an increase of almost 5.4.2 SFCs 220% and is likely to be higher given the Processes of fiscal devolution from states to the revenue buoyancy. Panchayats are taking place through SFCs. The States have the basic responsibility of enhancing 5.4.4 Devolution of funds to PRIs to be the credibility and acceptability of the SFCs. generally untied The SFCs, therefore, need to be strengthened Most of the Panchayat funds are the funds being and their work and reports streamlined in transferred under a number of budget heads; many ways including some standardisation in o�en, in packets of small allotments against a

26 Active Gram Sabha: For Empowered People And Accountable Panchayats Panchayat Finances and Accounting

plethora of agency functions vis-à-vis Central 5.5 Own Resources of the Panchayats and State schemes. Tax revenues from those on land and buildings Except for the CSSs and ACA Schemes, serving etc. and non-tax revenues (for example, from national priorities/objectives as also the purpose- auction of Panchayat resources) could be an specific programmes of the States, all allocations important contributor to their finances. Although to the PRIs should be untied. This will allow the these sources provide the main income to the PRIs to have the flexibility to plan and implement Panchayats of some states, there is an u�er their programmes in accordance with the local neglect of own revenue sources designated to priorities. The scheme guidelines should contain the GPs in many states. There is no systematic only a brief description of the objectives and effort either by the State Governments or by the expected outcomes. Furthermore, centrality of Panchayats to fully tap their assigned sources PRIs in implementation of these schemes must of revenue. be guarded. BRGF in one such good example. Some sources of finance for PRIs, especially 5.4.5 Incentive for raising own revenues Panchayats, are discussed below: Providing incentive is an effective tool for motivating individuals and institutions for 5.5.1 Tax domain of Panchayats and its realisation be�er performance. Accordingly, PRIs showing A study of State Legislations indicates that the higher revenue collection—including adopting village Panchayat finances include more than innovative steps—should be suitably rewarded, 60 taxes and fees including octroi, property and viz. by linking some part of the award of the house tax, profession tax, land tax, taxes/tolls Finance Commissions to the revenue generation on vehicles, entertainment tax/fee, license fee, efforts. tax on non-agricultural land, fee on registration of ca�le, sanitation/drainage/conservancy tax, The existing PEAIS could be modified for greater water tax, lighting tax, education cess and tax on weightage to the revenue efforts. States should fairs and festivals. also devise their own incentive and/or award mechanisms. Panchayat resources could also be augmented through innovative tax/non-tax measures, 5.4.6 Institutional credit and market borrowing for example, fee on tourist vehicles, special Some GPs in Kerala have accessed bank credit amenities, restaurants, theatres, cyber cafes etc. for public-private partnership (PPP) projects as some Panchayats are doing. such as shopping complexes and bus stands. Similarly, institutional credit would also be Further, all common property resources vested available to other states for strengthening of in the Panchayats need to be identified, listed Panchayats. Institutional credit would generally and made productive for revenue generation. be available to solvent Panchayats for good Panchayats could be empowered to collect projects. However, no Panchayat seems to have cess on the royalty and additional/special obtained an institutional credit rating as yet. surcharge from minor minerals, forest produce and other natural resources since the financial, Strong PRIs need to be encouraged within ecological and health impact of such activities the State Government guidelines to borrow is felt maximum in the surrounding areas and from the market on the strength of their inhabitants. credit viability for infrastructure and income generating projects. Once these The State Governments should focus on projects start showing positive results, the prescribing band of rates for such taxes and levies, financial institutions would be inclined to step mentoring, strengthening and incentivising up lending. Panchayats.

Active Gram Sabha: For Empowered People And Accountable Panchayats 27 Roadmap for the Panchayati Raj (2011-17) An All India Perspective

(a) Tax on lands and building can be introduced by MoPR and by States. Almost all over the world, the main tax revenue of habitations is tax on lands and buildings. It is 5.5.3 Assessment and Collection of Taxes etc. seen that this gives a sizeable income to the village To begin with, the following action points are Panchayats in Maharashtra, Kerala and Karnataka. suggested: However, certain northern states have abolished Prepare details about assessed tax, collection this tax, thereby depriving the village Panchayats made and arrears, in respect of each tax and of their important source of income. Since this non-tax revenue, for each level of Panchayats, is the major tax for large habitations, small through the permanent SFC Cell in the State habitations must make a beginning in assessing Government. the residential and commercial properties. Kerala Analyse data collected for identifying broad charges property tax on all buildings and land trends among Panchayats and for identifying appurtenant thereto as a percentage of the net champions and innovations. Compile such annual value of the building. For buildings given good practices. on rent, twenty-five percentages is added to the Undertake a campaign to overcome the large tax rate. This practice seems to be the best since slack in revenue collection. it should give an elastic source of revenue to the Prepare a compendium of the relevant legal Panchayats. provisions and executive orders in respect of the administration of taxes by PRIs, (b) Other Taxes incentivisation programmes, innovations, Earlier, the profession tax was the main source recommendations of the SFC etc. of income to the village Panchayats. However, Assist the SFC to lead policy work for: in many States, this tax has been taken over by (a) exploring appropriate tax and non-tax the State Government and a small compensation revenue assignments; (b) ways and means of is paid to the village Panchayats. Advertisement administering and enforcing them including tax, entertainment tax, shows tax is also levied manpower and training; and (c) achieving a in some States. However, they form a negligible greater linkage between revenue collection source of income to the village Panchayats. and spending decisions at the local level. Rationalise the number and type of taxes, and 5.5.2 Non-Tax Revenue assign at least a few important taxes to each level of Panchayat. (a) Auction of Panchayat land, ponds etc. Re-examine the current rates of taxation GPs in some northern states are allowed to and consider an upward revision, remove annually auction village Panchayat lands for maximum limits fixed on tax as also the cultivation, for example, Shamalat lands in conditionalities that hamper or restrict taxation Haryana. In certain other areas, annual auction of powers of Panchayats. Do not abolish taxes in other resources like fishery ponds is done which Panchayat domain (for example, some States gives the Panchayats some non-tax income. In have abolished house tax). particular, this is an important source of income Incentivise tax and non-tax efforts of for the Panchayats of Haryana and Punjab. Panchayats by reworking the formulae for devolution of funds and also provide (b) User Charges disincentives for the non-performing PRIs. The charges recovered for services such as Fix user charges on a rationale basis and water supply and sanitation are user charges. provide incentives to PRIs for enforcement. However, these are more o�en not levied/ collected. Management Devolution Index 5.6 Clarity on Devolution in State Budgets proposed by DDWS includes ‘Proportion of water charges demand collected by PRIs’ as one A key step in providing clarity on fund of the indicators for calculating the index and devolution to Panchayats pertains to the creation providing incentives thereon. Similar incentives of Panchayat Sector windows in the budgets

28 Active Gram Sabha: For Empowered People And Accountable Panchayats Panchayat Finances and Accounting

of State Governments. This requirement can Monitoring System (CPSMS) to address the be met in two ways. Each Department could abov e issues. Till such time, the larger system create separate line items in their budgets for under CPSMS is put in place, MoPR has w orked Panchayats, earmarking allocations pertaining out a mechanism for efficient management of to responsibilities devolved and schemes programmes, funds and planning functions. entrusted to Panchayats. Departments can thus directly send their funds to Panchayats in This mechanism in fact offers a common platform accordance with these earmarked budget line that could be used for aggregation of information items. including for assessing inter-relationships among programmes and can be easily integrated into Alternatively, all such earmarked funds the CPSMS as and when it is rolled out. pertaining to different departments could be consolidated by the State Finance Department The Core Banking System (CBS) along with the and sent to Panchayats in regular installments. ‘Authorisation’ system, w ould not only address Seven States, namely, Chha�isgarh, Gujarat, most of the problems mentioned abov e but also Karnataka, Kerala, Madhya Pradesh, enable vastly improv ed financial management Maharashtra and Rajasthan have provided and transparency as mentioned below: for a separate Panchayat Sector component in At the click of the mouse, authority their State budgets. However, the efficacy of the concerned will get information on both system varies differently from State to State and the “Authorisations” and the “fund flows”, mismatches between functional assignments through the CBS. and fiscal transfers continue to exist. The CBS would report the actual payments (not merely releases by the higher level) each 5.7 Mechanism for Transfer of Funds to the day and the State funds would be debited PRIs accordingly. Rapid authorisation and payments Increasingly, large amount of funds are being to the IEs w ould be possible, as the transferred under various schemes from GoI to new mechanism w ould eliminate the the State Governments for further transmission extensiv e paper w ork, clerical queries to the Implementation Entities (IEs). Reforms are and resultant harassment down-the-line, needed to: av oiding delay in implementation, and Reflect the changed content of programmes. the States/IEs enabled to use their full entitlement. Enable tracking of actual expenditure (not Transparency w ould be ensured by making merely the releases) with necessary details. information available online in the public Provide timely and reliable Management domain. This w ould also facilitate social Information, out of the huge magnitude and audit. Citizens could report any discrepancy complexity of transactions, which is useful for betw een the information display ed and the monitoring and decision making. actual. Eliminate the large float in the system, Ways and means position of both the Central due to the Special Purpose Entities (SPEs) and State Governments would improve created purportedly for efficient transfer of as float/parking in the system would be funds. eliminated. Bring SPEs into the formal structure of accountability, including audit by CAG. 5.8 Accounting and Audit System

The Planning Commission along with 5.8.1 Model Accounting System for Panchayats Ministry of Finance, Controller General of (MAS) and PRIASoft (accounting software) Accounts (CGA), State Gov ernments and A sound and robust accounting and audit CAG are w orking on the Central Plan Scheme system is necessary to ensure transparency and

Active Gram Sabha: For Empowered People And Accountable Panchayats 29 Roadmap for the Panchayati Raj (2011-17) An All India Perspective

accountability of the Panchayats, particularly Thirteenth Finance Commission. The Commission in view of the substantial increase in flow of recommends that audit of the accounts of all funds to them. A new simplified accounting local bodies (both urban and rural at all levels) format, namely, the ‘Model Accounting System may be done under the Technical Guidance and for Panchayats’ (MAS) has been developed a�er Supervisions of the CAG. a detailed exercise involving C&AG, MoPR, Ministry of Finance, Planning Commission, etc. State Governments may constitute separate and a number of States. commi�ees of Legislature for discussion of the Annual Technical Inspection Report (ATIR). This For drawl of Performance Grant component, will ensure accountability as suggested by 2 nd under the 13th FC Award, States need to adopt an ARC. accounting framework and codification pa�ern consistent with the MAS. Recognising the 5.9 Fiscal Responsibility Regime importance of ICT in efficient, transparent and online accounting, MoPR has developed a web- MoPR seeks to provide guidance to the PRIs on based accounting so�ware, namely, PRIASo� to developing a fiscal responsibility regime through facilitate computerised maintenance of accounts its model Fiscal Responsibility bill. The States as per the revised formats under MAS and also to could enact the model bill with modifications as facilitate automatic generation of reports, registers appropriate. The major objectives of the model and information in the desired formats. The bill are: Medium Term Fiscal Plan, Principles so�ware is incredibly user-friendly and capable of Financial Management, Transparency in of capturing data required for effective planning, Financial Management, Principle of Audit of budgeting, implementation and monitoring Accounts, Adherence to Audit Report and of schemes. The so�ware is available in local Measures to Enforce Compliance. languages and it would incorporate the facility of digital signature. 5.10 GoI to support States

MoPR is further preparing an Accounts Manual 5.10.1 Sound finances of the Panchayats are a and a Training Manual for MAS and PRIASo�. Constitutional obligation and in pursuit of that, Status of implementation of MAS/PRIASo� is as the States and the Centre must work together follows: in a true spirit of fiscal federalism to strengthen Assam, A.P., Orissa, U.P., Maharashtra, M.P., finances of the PRIs. Rajasthan, Tripura, H.P. and Sikkim have already issued orders for adopting MAS & 5.10.2 The MoPR should, on its part, assist the PRIASo�. States in designing local solutions, designing Haryana, Chha�isgarh, U�arakhand, Punjab, training programmes, developing so�ware Bihar and Goa have agreed to implement and solutions for tax management and networking are likely to issue orders soon. with champions. It should also undertake Gujarat, Kerala, West Bengal, Karnataka, analysis of the State trends to identify initiatives Tamil Nadu have different accounting systems and drives, conduct periodical experience sharing and accounting so�wares. These States need workshop, support policy studies on local either to adopt or ensure compatibility of taxation particularly on ascertaining taxation their systems with MAS/PRIASo�. capacity, and designing incentive packages. As on March 31, 2011 accounting of about 50,000 GPs were online. It is something seen 5.10.3 Commensurate Staffing and to be believed. Capacity Building The abov e efforts may not bear outcomes if 5.8.2 Audit not supplemented by providing the PRIs with Audit of accounts of the local bodies needs to be adequate manpow er, mentoring and guidance. conducted as per the recommendations of the The States should, therefore, strengthen the

30 Active Gram Sabha: For Empowered People And Accountable Panchayats Panchayat Finances and Accounting

administrative and enforcement capacity of with the help of ICAI), simple guidelines etc. Panchayats through proper staffi ng including Suffi cient funds for this purpose are available outsourcing, frequent training programmes for 250 BRGF districts under BRGF and for comprising well-structured modules (possibly non-BRGF districts under RGSY.

5.11 Action Points

Increase share of transfers to the PRIs from the State Governments as untied grants by consolidating the State schemes into untied grants (as Kerala has done), and explicitly defi ne through State legislation a formula to allocate grants to the PRI as a share of the State revenues. (States) Give right to the Panchayats to levy and collect taxes, tolls, fees, user charges on their own with minimum and maximum rates and incentivise such collection, in order to reduce their dependence on the Central and State Governments. (States) Strengthen composition, function and the Reports of the State Finance Commission. (States) Link allocations through CSSs to the States to the Devolution Index and to the Panchayats, based on their performance grading. (GoI) Implement Model Accounting System including PRIASo� and strengthen Audit System. (States) Fulfi l performance grant conditions under the 13th CFC award. (States) Prepare Asset Directory for O&M needs and avoiding duplication of works. (States) Adopt FRBM for the PRIs circulated by MoPR. (States)

Active Gram Sabha: For Empowered People And Accountable Panchayats 31 Roadmap for the Panchayati Raj (2011-17) An All India Perspective

Chapter 6 Capacity Building for the Panchayats

6.1 Dimensions of the Challenge Improving the functioning of the GS as an important institution of local decision Capacity building of elected representatives and making. officials is critical to the empowerment of the Sensitising media, political parties, legislatures, Panchayats as the well-functioning institutions civil society institutions and citizens to accept of local self-government. Moreover, as the PRIs and promote the Panchayati Raj as an essential are being assigned increasing responsibilities in level of local governments and for inclusive both developmental and regulatory activities, and participatory development. there is a growing concern about their capacity. Giving focussed a�ention to more demand- The magnitude of the challenge is enormous: based and ongoing knowledge-based Around 30 lakh Elected Representatives and handholding CD support. 10 lakh official functionaries have to be trained every year. 6.2.3 CBT Plans During the years 2007-10, several workshops 6.2 National Capacity Building Framework were conducted to assist the States in working out (NCBF) the modalities of their capacity building plans, primarily for sourcing funds and implementing 6.2.1 NCBF formulated by MoPR lays down the Capacity Building component under the a comprehensive framework for building BRGF programme. But the Capacity Building the capacity of PRIs. NCBF describes the through Training (CBT) efforts generally preparatory activities, building up of the training continue to be intermi�ent and discontinuous infrastructure, developing a pool of resource with one-off training programmes consisting persons, range of handholding activities required of routine lectures by inadequately equipped to sustain a capacity development effort, planning resource persons. Some States—even though the logistics of implementation, and monitoring they have prepared plans in accordance and evaluation of the capacity building efforts. It with the template provided by NCBF—have suggests training programmes in a range of areas, not been able to implement them as per the including the CSSs, indicating the duration, schedule. This is particularly true in the case of sequencing and the target category with timelines larger States. for completion of the training programmes, norms for strengthening the training related Cov erage, content, quality and frequency infrastructure and the pedagogical so�ware. of training is a general issue for most of the States. The continuing aspects of training 6.2.2 Its overall objectives include: and handholding, such as Helplines, Enabling elected representatives to upgrade Newsle�ers and District/Block Resource-cum- their knowledge and skills to be�er perform Training Centres are y et to be established in their responsibilities. most cases. Orienting the officials to become more effective technical advisors and implementers 6.2.4 World Bank Evaluation of the ideas emerging from the elected An evaluation of the BRGF programme was representatives. conducted through the World Bank in July

32 Active Gram Sabha: For Empowered People And Accountable Panchayats Capacity Building for the Panchayats

2009. The main recommendations in respect of including computer based self-learning Capacity Building component are: material. Have formal certification in the domain of Re-design the overall Capacity Building Panchayati Raj. strategy to focus on demand-driven Update training perspective plans and work modalities. out annual implementation plan. Provide a significant part of CBT support to Assign known training experts to the relatively the ZPs to put them in the driver’s seat. lagging States. Develop appropriate tools for CBT needs Find alternatives to the present system assessment. urgently for the continuous training of Ensure regular impact assessment of the CBT 32 lakh ERs and 10 lakh OFs. activities. Establish an autonomous institution Converge CBT activities and resources. under MoPR for handling the task on Put in place State level CBT Coordinators. an ongoing basis and also serve as the think- Make greater use of outsourcing model. tank. Technical Support Institutions (TSIs) for CBT be contracted by the ZPs, selected from a 6.3.2 Diversifying CBT panel of qualified institutions. Obviously, t here is a need to develop a Introduce flexibility in the use of 5% nationwide movement, and a different culture component meant for staff augmentation. and approach to CBT including reorientation Ensure that Urban Local Bodies (ULBs) too of the training institutions. Institutions closer to are adequately covered in all CBT activities. the people at the Block and District levels need Establish a baseline for the PRIs/ULBs to be built, strengthened and associated in this performance and capacities with indicators gigantic task. and benchmarks. Clarify links between reporting, utilisation We also need to broaden the institutional support certificates, social audit and physical audit. and look at options hitherto not considered on Improve the sharing of good practices a significant scale such as Universities, NGOs, through IT, visits, exchange of information, Private Organisations etc. who can introduce the peer reviews etc. best training practices being used in the academic and corporate world to the task of CBT. 6.3 Accelerating CBT Efforts 6.3.3 PPPs for institutional strengthening 6.3.1 Consultations with State etc. MoPR conducted a CBT Business Meet in In the consultation meeting with the January 2010 a�ended by most of the States and stakeholders in December 2008, the following about 150 Service Providers. The expectation recommendations were made: on such partnerships is that it should lead to a Revitalise the State Institutes for Rural major improvement in quality of and continuous Development (SIRDs) through functional training to a larger number. The focus was on: autonomy including powers to recruit faculty. Identification of suitable agencies for each Network National Institute for Rural State. Development (NIRD), SIRD and other training Selection of the Service Provider(s) for the institutions through a sustainable mechanism respective State. for identified objectives. Signing of State Support Agreement. Create nation wide pool of well-selected and trained master trainers. “Pursuant to the Buyer-Seller Meet” of January Establish and operationalise District and 2010, some States have already formalised the Block Resource-cum-Training Centres. PPP arrangements and these include Haryana, Develop model curriculum and course content Orissa, Punjab and U�ar Pradesh, whereas

Active Gram Sabha: For Empowered People And Accountable Panchayats 33 Roadmap for the Panchayati Raj (2011-17) An All India Perspective

Gujarat and Maharashtra are on the verge of 6.3.8 CDLG Project signing the MoUs with the selected partners. UNDP is assisting in capacity building in seven States Bihar – Chha�isgarh, Jharkhand, 6.3.4 Cross-departmental efforts MP, Orissa, Rajasthan and UP through the MoPR is in discussion with Ministries handling Capacity Development for Local Governance major Panchayat-centric CSSs (NREGS, NRHM, (CDLG) project. SSA, Literacy Mission etc.) on the issue of synergy in design, content and implementation Capacity development teams are providing of the training programmes. A meeting with technical support to State Governments in be�er the relevant line Ministries, for example, management of CD grants, development and roll- recommended that the Saakshar Bharat out of State CD strategies and enhancing quality Programme should have special focus on the and outreach of CD programmes. At the MoPR illiterate ERs and the States should undertake level, funds are being utilised to strengthen the special drive to develop trainers and training guidance and management of CB&T initiatives. materials for the purpose, utilising the technical inputs from Saakshar Bharat. Similar efforts are 6.4 Training Infrastructure for CBT required in respect of SSA, MGNREGS, NRHM, ICDS, DWS etc. 6.4.1 District and Block Resource-cum-Training Centre (D/BRTCs) 6.3.5 Training material As of now, 2243 BRTCs have been sanctioned MoPR has already prepared an extensive for 22 States under BRGF and 191 BRTCs repository of training material and personnel. for four States under RGSY. More DRTCs Some computer-based self-learning material has and BRTCs need to be set up for providing also been prepared through Andhra Pradesh institutional training close to the people Academy of Rural Development (APARD). These and scene of action. It is also important to are available for use to any training institution or functionally integrate these centres with body. A sample CD is also available (in the local the existing arrangements for CBT activities language) for providing (a�er due customisation) and equip them with appropriate manpower to every representative soon a�er his or her that may be admissible under BRGF and election and also to the officials, so that they could other schemes. refer to it at their convenience and repeatedly. Similar initiatives could also be undertaken by The BRTCs set up under BRGF may coordinate the States. with BRCs set up under NRDWP and similar block level centres setup under other schemes 6.3.6 Learning vs teaching for training and support to GPs. Training pedagogy has to give greater emphasis on self-learning than teaching, with focus 6.4.2 Formal certification in the domain of PR on problem solving, exposure visits, films, Furthermore, it would also help to have formal interactive self-learning material etc. certification for the PRI training. Some institutions such as the Rajiv Gandhi National Institute of 6.3.7 Helplines and Newsletters Youth Development (RGNIYD), Indira Gandhi Helplines and newsle�ers on state websites can National Open University (IGNOU), etc. have be very useful. However, only a few States are launched Degree, Diploma and Certificate publishing newsle�ers. Newsle�ers need to be Programmes in Local Governance. States should placed on the State website and provided either popularise such courses among the ERs, OFs etc. free or at nominal costs to all the Panchayat and also link to some incentive. functionaries. As regards the helpline, 21 States have so far obtained approval under BRGF and 6.4.3 National Institute of Panchayati Raj RGSY. Maharashtra and AP have already set up (NIPR) helpline. There is no dedicated training and resource

34 Active Gram Sabha: For Empowered People And Accountable Panchayats Capacity Building for the Panchayats

institution to catalyse capacity building needs of are able to get over the institutional, societal and elected representatives and officials of the PRIs. political constraints facing them. Its objectives In order to meet this need, MoPR proposes to set are: up NIPR to work as national level think tank and Building solidarity among EWRs training resource institution. C r e a t i n g o p p o r t u n i t i e s f o r t h e m t o p r e s e n t their demands to different governments Ministry has prepared detailed project report Building capacity to take initiative (DPR) for the NIPR which provides for functional Devising innovative programmes. and physical details. The functional aspects include the Charter/activities and staffing 6.5.3 State Government in this context need to: arrangements. The physical details include Review periodically the implementation of the infrastructure and finances for the capital PMEYSA including: (a) se�ing up of EWR expenditure (Rs.54.5 crore spread over 5 years) Federations at State and District levels; and and recurring expenditure (averaging at Rs.25 (b) establishment of State Support Centre and crore per annum). its functioning. Utilise funds released, submit UC and propose 6.5 CBT for EWR and Panchayat Mahila further funding. Evam Yuva Sashaktikaran Abhiyan Suggest improvement in the design and (PMEYSA) implementation of PMEYSA. Ensure convergence of PMEYSA with the 6.5.1 The Government proposes to increase related programmes. reservation for women in the PRIs from the Institute a mechanism for concurrent existing at least one-third to 50%. The number monitoring of results. of EWRs would thus increase from less than Develop leadership skills of ERWs as well as 10 lakh to about 14 lakh. Obviously, many of SHG leaders. them would be holding office for the first time with li�le knowledge, orientation and exposure 6.6 Perspective/Annual CBT Plans to their expected functions. Besides, the EWRs face multiple deprivations on account of their Each State should prepare a Perspectiv e gender, social bias, household obligation, lower Plan for CBT for the PRIs aligned with the literacy, lack of confidence etc. O�en, male election cycle and based upon training members of their family usurp their functions. need assessment (TNA). The Perspectiv e Plan should be broken into Annual 6.5.2 For enabling EWRs to discharge their Plans. The State Annual Plan should hav e responsibilities effectively, their special needs Sub-Plans for each district and another Sub- should be met. Capacity building components Plan should be for State lev el activities such as of BRGF and RGSY schemes generally have dev elopment of training materials, helplines, not addressed these specific needs of EWRs. newsle�ers, training of trainers (ToT), TNA, For targeted empowerment of EWRs, PMEYSA evaluation etc. The Action Plans should also scheme was started. Its objective is to build giv e specific a�ention to SC/ST and EWRs. confidence and capacity of EWRs so that they

Active Gram Sabha: For Empowered People And Accountable Panchayats 35 Roadmap for the Panchayati Raj (2011-17) An All India Perspective

6.7 Action Points

Implement National Capability Building Framework (NCBF) in le� er and spirit. Develop comprehensive CB strategy based on thorough Capacity Assessment to address gaps at the individual, institutional and environment levels. Prepare perspective and annual training plans based on TNA etc. Set up State level Standing Commi� ees to synergise CB eff orts of all Line Departments/ Institutions. Make training programmes women-friendly. Strengthen SIRDs. Increase reach of CBT through District/Block Training-cum-Resource Centres and outsourcing in PPP model. Promote alternative methods of training such as Interactive Self-Learning materials/ Training fi lms etc. Include transformational leadership and own resource mobilisation in the training programmes.

36 Active Gram Sabha: For Empowered People And Accountable Panchayats Decentralised Planning

Chapter 7 Decentralised Planning

7.1 Need for Decentralised Planning The need for integrated local area plans, based on specific endowments and needs of each 7.1.1 Central/State Schemes and DPCs area has been stressed from the beginning of It is widely recognised that most of the schemes the planned development. However, despite exist in silos, planned and implemented as several reports and studies, only sporadic stand alone schemes, without any horizontal efforts were made in this direction, resulting convergence or vertical integration, resulting in sub-optimal usage of resources and limited in multiple district plans—unrelated to each outcomes. Local area planning needs to evolve other and o�en mutually conflicting—prepared beyond projectised financial expenditure without any integrated vision or perspective. planning and observe the spatial dimension in order to achieve integration and convergence The existing mechanism of implementation is with other levels of governance. also not very effective, efficient and economical. The much needed convergence of related 7.2 Constitutional Provision schemes and resources is possible only through the mechanism of constitutionally mandated The 73rd and 74th Constitutional Amendments decentralised and holistic planning through (Articles 243G, 243W) envisage planning for Local Self-Governments (LSGs) and DPCs. economic development and social justice by PRIs Planning Commission’s guidelines dt. June 25, and ULBs, respectively and their consolidation 2006 elucidate this. (Article 243ZD) into District Development Plans by the DPCs, a�er consideration of ma�ers of With increased specialisation and sectoral thrusts common interest between the Panchayats and in development, there has been a tendency the Municipalities including: for more and more sectoral plans prepared in Spatial planning relative isolation, for example, District Health Sharing of water and other physical and

Plan, District Watershed Plan, District Education natural resources Plan and so on. It is important that this vertical Integrated development of infrastructure planning process is transformed into a horizontal Environmental conservation planning process, where local governments Extent and type of resources available whether and other planning entities work together to financial or otherwise. develop a holistic plan, out of which sectoral plans emerge. Achieving this coordination in 7.3 Eleventh Plan and Decentralised the face of an increasing number of schemes and Planning fund flows into the districts will necessitate a quantum improvement in the existing planning The Eleventh Plan further envisages participatory and implementation mechanism through local district planning process as an integral part of the governments and DPCs. preparation of State Five Year Plans and Annual Plans. The Eleventh Plan document details

Activ e Gr am Sabha: For Empowered People And Accountable Pancha y ats 37 Roadmap for the Panchayati Raj (2011-17) An All India Perspective

several steps such as activity mapping, creation is a Handbook for District Planning that lays of Panchayat sector windows in the State and down the modalities and sequence of processes Central budgets, and IT enabling of Panchayats as for preparation of a participative district plan. It key steps in this direction. Such holistic planning includes the formats and checklists by which the will result in convergence of schemes, synergistic processes can be documented and data provided implementation and be�er outcomes. for different planning units.

7.4 2nd ARC and Decentralised Planning 7.7 Participative Integrated District Planning While emphasising the importance of decentralised and participative planning, the 7.7.1 Participative integrated planning is 2nd ARC in its 6th Report on Local Governance multi-dimensional, including: has recommended: Three levels of Panchayats and

Development authorities to become the Municipalities

technical/planning arms of the DPCs. Multiplicity of sectors (viz. health, education,

Strict compliance of the guidelines dated nutrition, sanitation, livelihoods)

25.8.2006 issued by the Planning Commission A variety of funding sources (viz. State/

in preparation of the district plan. Centrally Sponsored Schemes, Finance Developing methodology of participatory Commission, own resources)

local level planning. An intertwined group of departmental and

Integration of District Plans with the State programmatic machinery

Plans. A broad spectrum of stakeholders, each

Clear demarcation of planning functions seeking fulfillment of its own from a plan.

among the local governments and planning commi�ees. 7.8 Role of BRGF/MGNREGA in catalysing Decentralised Planning 7.5 National Conference on Decentralised Planning In spite of various initiatives on decentralised, participative and integrated planning, the The National Conference of Chairpersons/ MGNREGS and BRGF remain the two main CEOs of the DPCs held at New Delhi on schemes for planning from below. BRGF a�empts 16-17 January, 2009 also deliberated upon to catalyse bo�om up integrated planning and the issues of constitution and functioning bridging critical gaps in the infrastructure, and of DPCs, preparation of five year District empowering the local bodies through appropriate perspective plans and annual plans, ICT capacity building to facilitate participatory support for district planning (including Plan planning and decision making. Plus), database for District and Sub-District levels, financial domain of Panchayats, Spatial MGNREGS has now emerged as the largest CSS. planning, consolidation of Urban and Rural Under Sections 16 and 17 of the MGNREGA, Plans, capacity building for District Planning 2005, the GP and the GS have been given key roles etc. in planning, implementation and monitoring of MGNREGA. BRGF and MGNREGA funds today 7.6 Manual for Integrated District Planning contribute the major outlay at village level from where village planning can start. Planning Commission and MoPR have prepared a “Manual for Integrated District Planning”. The 7.9 DPCs first volume of the Manual contains an exposition of the essential principles of participative district 7.9.1 Role planning and sets out the steps to be taken at the In order to take the process of participative state and national levels. The second volume district planning forward, the foremost necessity

38 Active Gram Sabha: For Empowered People And Accountable Panchayats Decentralised Planning

is to set up DPCs on the lines of Article 243 ZD The DPC must also have a building to house and assign to them, at least, the following roles: the DPC and DPU Secretariat. Secretary of Providing overall leadership to the planning the DPC should be a sufficiently experienced

process without taking away the functional person who works on a full-time basis. Even responsibilities of the local governments. contractual appointments with pay packages Leading the district envisioning exercise. commensurate with the responsibility of

Se�ing district priorities on the basis of leading the preparation and implementation of

consensus among local governments, line the district plan, for a period of say five years, departments, civil society, academia and other could be considered. Besides, the DPC must stakeholders in development. have adequate budgetary resources to meet Performing the central role in the preparation expenditure on its regular staff, hire experts,

of the Potential Linked Credit Plan (PLCP) outsource work, facilitate workshops and meet for the district with support from National the expenditure on capacity building of elected Bank for Agriculture and Rural Development representatives and staff of line departments. (NABARD). Reviewing plans of local governments and 7.10 District Vision and Perspective Plans

development departments during the process of consolidation, particularly with a view 7.10.1 District Vision to ensuring that these address the district The District should prepare an integrated vision vision as a whole and are free of overlap and for development (for both urban and rural areas) duplication. over 10 to 15 years, and a perspective plan of five Overseeing the participative planning process years, not constrained or conditioned by the

to ensure that the processes and timelines are existing schemes and programmes. In fact, a well followed. prepared perspective plan becomes an important Monitoring implementation of the approved guide in deciding the expenditure priorities of a

district plan and addressing bo�lenecks that district over the long term. may arise. For urban areas, the perspective plan indicating 7.9.2 Support to DPCs goals, policies and strategies regarding spatial To enable the DPC to perform this role, a District and socio-economic development should be Planning Unit (DPU) should be constituted by prepared by the ULBs. Separate ULB plans merging DRDA, District offices for Planning/ need to be integrated into district plan. Five- Economics and Statistics, and Town and year perspective plans and annual plans can Country Planning, District unit of the National be prepared for different sectors by the related Informatics Centre (NIC), and the National departments/planning units which can then be Resources Data Management Centre set up in consolidated by the DPC into a holistic district some districts should also be made a part of the plan. In the whole process, the rural-urban DPU. Besides, experts in the requisite areas (like: continuum–social, economic and spatial needs planning, programme management, resource to be kept in full view. management, livelihood) could be hired to support the DPU in the work of planning and 7.10.2 Databases implementation. In fact, the BRGF guidelines The District vision and plan must have a strong provide for such technical and professional empirical grounding provided through rigorous support and the States are advised to use this compilation and analysis of data including the option. Moreover, Planning Commission was baseline which needs to be institutionalised coming up with a scheme to “support the as part of the planning system. Ministry of Planning Process” including at the district level Statistics and PI is implementing a scheme for through provision of manpower, infrastructure generating micro level database for PRIs in etc. Unfortunately, it has not happened even particular. Geographic Information System (GIS) a�er four years. based district mapping can be a very valuable

Active Gram Sabha: For Empowered People And Accountable Panchayats 39 Roadmap for the Panchayati Raj (2011-17) An All India Perspective

input. Such database and GIS facility would along with training of manpower to maintain be necessary both for preparation of Plans and database for decentralised planning. monitoring outcomes. 7.11 Spatial Planning 7.10.3 Information and Communication Technology (ICT) Given the haphazard growth of the rural areas, ICT solutions make it much easier to capture, particularly in the vicinity of urban areas and integrate and analyse data and much more given its consequence for posterity and for meaningful data display (including GIS) to the environment, it is necessary to have land decision-makers at all levels. ICT will enable use plan for the rural areas as well. States of be�er recording of budget envelopes, prioritising Rajasthan and Goa have already taken initiative selected projects and works, linking these to in this regard. budgets, generating/modifying/finalising plans, projectisation and monitoring of implementation. For this, the definition of local planning area Most importantly, ICT can throw open the entire under Section 37(1) of the Model Law needs planning process to public view and bring life to be extended to include the rural areas. to the ideal of decentralised planning. The Preparing land use plan for all the 2.33 lakh GPs PlanPlus so�ware would be of great help in the (comprising approx 6 lakh villages) would take process and is strongly recommended. a long time and will involve massive planning and monitoring. However, GPs with more than 7.10.4 GIS for Decentralised Planning 5,000 population could be taken up for land use The National Remote Sensing Centre, Hyderabad planning in the first phase right now. For this has undertaken a Space Based Information exercise, Town Planners will have to be posted Support for Decentralised Planning (SIS-DP) under the respective ZPs/DPUs/DPCs. project. Satellite remote sensing, GPS, IT and GIS technologies have the capability for preparing MoPR has requested the Ministry of Urban and integrating the data from various sources Development (MoUD) to amend the related (both spatial and non-spatial). The SIS-DP project Sections including Section 37(1) of the Model has the following objectives: Legislation to facilitate this initiative. The States Spatial Geo Database – Creating land cover, are also being advised to carry out the necessary

water resource, infrastructure details, slope amendments in their respective enactments. and linking of stakeholder department data The action should pave the way for village level for the entire country on 1:10,000 scale. For master plans for land use planning. selected areas, soil and ground water prospect details will also be prepared. 7.12 Decentralised Planning and PlanPlus Existing Resource Information – ISRO/DOS Software

created existing thematic information on 1:50,000 scale will be made available under PlanPlus so�ware has been dev eloped to the project. demystify and simplify the decentralised Village cadastral data – Digital village planning process. The so�ware is w eb-based,

cadastral data along with a�ribute information compatible for local language adaptation (ownership, healthcare, education, marketing, and captures the entire planning w orkflow commercial facility etc.) will created to overlay starting from identification of needs and up on various layers. to the plan approval processes. It is generic Decision Making Tool and Dissemination – and can capture the plans prepared by the

Customised solution for development of tools line departments at the state and central and utilities will be developed and deployed lev els to generate the conv ergent unit plans up to GP level. for the Panchayats and the Municipalities, Capacity Building – Pool of manpower and and consolidate the same into the District and

capacity building of State and national level State Plans. The so�ware enables conv ergence

40 Active Gram Sabha: For Empowered People And Accountable Panchayats Decentralised Planning

of the related schemes and programmes, the use of PlanPlus. To make it more popular brings about total transparency in the plan and eff ective, more such training programmes preparation and approval processes, and are recommended, for which the persons facilitates online monitoring. MoPR and NIC trained before, besides the offi cers of the NIC, have organised training programmes for over could act as the resource persons. Cost for such 10,000 State and District level functionaries on training could be met from BRGF and RGSY.

7.13 Action Points

Implement Planning Commission circular of 25.08.06 for preparing integrated bo� om- up participatory plans to ensure convergence of plethora of schemes/resources for be� er outcomes. (GoI and States) Ensure that sectoral plans get integrated into District Plan via DPC/DPU through iterative process. Provide professional and technical support to the planning entities, including constitution of professional DPUs, use of Technical Support Institutions. (GoI and States) Train relevant PRI representatives and functionaries in integrated planning and PlanPlus. (States) Initiate spatial planning and amend relevant legislation for enabling. (GoI and States) Expedite use of Plan Plus so� ware and GIS. (States)

Active Gram Sabha: For Empowered People And Accountable Panchayats 41 Roadmap for the Panchayati Raj (2011-17) An All India Perspective

Chapter 8 e-Governance in Panchayats

8.1 Necessity of e-Governance in Panchayats 8.3 Components for Roll-out of e-Panchayat

If the Panchayats are to perform efficiently and E s s e n t i a l l y, t h e r e a r e t h e f o l l o w i n g s i x effectively all the mandated tasks which are c o m p o n e n t s w h i c h a r e r e q u i r e d f o r s u c c e s s f u l increasing day by day, extensive use of IT is the r o l l o u t o f t h e e - Pa n c h a yat M M P : ( i ) I S N A , only way. Moreover, there is a strong need to B P R & D P R ; ( i i ) C o m p u t i n g I n f r a s t r u c t u r e ; build a “digital inclusive society” where large (iii) Application Development and Deployment; sections of rural population: (iv) Connectivity; (v) Capacity Building; and are able to benefi t from new technologies; ( v i ) P r o j e c t M a n a g e m e n t . T h e a c t i o n t a k e n /

can access and share information and services r e q u i r e d t o b e t a k e n f o r e a c h o f t h e s e a n d t h e

freely; and alternatives are listed below: can participate in the development process

more effectively. 8.3.1 ISNA, BPR and DPR MoPR has carried out detailed study on Panchayats being at the cusp of rural citizens Information and Service Needs of all and gov ernance structure are an effectiv e stakeholders including Central Line Ministries, v ehicle to induce mass ICT culture at the State Departments, District Administration, grassroots lev el. Panchayats and citizens. Based on the study, Information and Service Needs Assessment 8.2 Objective of e-Panchayat (ISNA) reports, Business Process Re-engineering (BPR) reports (in which the identified services I t i s w i t h t h i s b r o a d v i s i o n t h a t M o P R h a s have been re-engineered for optimising the f o r m u l a t e d a s c h e m e f o r I C T e n a b l e m e n t o f efficiency/effectiveness of service delivery) a l l t h e Pa n c h a ya t s i n t h e c o u n t r y i n a M i s s i o n and DPRs which is a complete roadmap for M o d e a p p r o a c h . T h e e - Pa n c h a ya t M i s s i o n operationalising e-Panchayat MMP have been M o d e P r o j e c t ( M M P ) i s i n t e n d e d t o p r o v i d e prepared for each of the 34 States and UTs. The a w h o l e r a n g e o f I T r e l a t e d s e r v i c e s s u c h DPRs give the roll out model, total project cost as Decentralised Database and Planning, and operational strategies. Budgeting and Accounting, Implementation a n d m o n i t o r i n g o f C e n t r a l a n d S t a t e s e c t o r States need to re-engineer their processes for s c h e m e s , U n i q u e c o d e s t o Pa n c h a ya t s a n d internal functioning of Panchayats and for citizen Individuals, essential GIS based applications, service delivery. The revised process maps have online self-learning medium for elected been suggested in the BPR reports of States. representatives and official functionaries etc. Legal changes required to put in place revised to citizens, all Central Line Ministries and State processes have also been listed in these reports. G o ver n m e n t d e p a r t m e n t s e t c . Pa n c h a ya t s b e i n g the basic unit for planning and implementation 8.3.2 Computing Infrastructure o f a l a r g e n u m b e r o f s c h e m e s a n d s e r v i c e s , t h i s For panchayats to start delivering services M M P wou l d a l s o g o a l o n g wa y i n i m p r o v i n g electronically, there is a need for appropriate public service delivery with be�er outcomes. ICT infrastructure to be made available at the

42 Active Gram Sabha: For Empowered People And Accountable Panchayats e-Governance in Panchayats

Panchayat offices. For this, following alternatives and therefore, the States need not invite are available to the states: fresh bids. Service Procurement model: This model This model also addresses the issue of

is recommend for the States where GPs do technological obsolescence. not have manpower to use e-Panchayat. It For GPs having pow er supply problems,

would entail engaging a Service Agency States could also negotiate with v endor(s) which would provide the ICT hardware, for laptops. including the augmentation of servers at the Direct buy is suggested as the last option and

Data Centre, maintenance and upkeep of should include AMC for at least five years. hardware and trained manpower. This model will take care of issues arising out of hardware This infrastructure can be financed from the obsolescence and manpower requirements of following four available options: the Panchayats. One time funding for filling ICT infrastructure

Universal Service Obligation Fund (USOF) gaps at GP level is available from MGNREGS

PC Bundling Scheme: This model is funds under the permi�ed 6% administrative recommended for States that have trained expenses. computer operators. Under this scheme, For BRGF Districts, from Capacity Building

hardware is provided on EMI basis with a component small amount as down payment. A subsidy 13th Central Finance Commission grants as

of Rs. 4500/- per BSNL broadband connection these are untied. is also available from USOF. BSNL who is Through their own budgets.

administering the scheme, has tied up with vendors (HCL, Novatium etc.) for supply of 8.3.3 Panchayat Enterprise Suite and hardware for these connections. Application Softwares On the basis of the ISNA reports, 12 Core There are distinct advantages in this model So�ware Applications have been identified such as: and taken up for development, centrally. The rates for PC as well as additional/ These so�ware applications would be applied

optional items, such as DVD combo uniformly across the country and would be internal CD R/RW, Printer, Internal Hard useful for the PRIs at all the three tiers. Their disk, UPS etc. have been decided by BSNL, description and functional requirements that a Central PSU, following a bidding process would be met are as below:

Description Functional area 1. Local Government Would provide unique codes to all Panchayats, capture changes to Panchayats owing to delimitation Directory and assign codes appropriately. It would link all Core Common A pplications. 2. Panchayat Profiler Would maintain a complete village profile encompassing socio-economic data, socio-demographic data, public infrastructure and services, geographical boundaries of Panchayats etc. 3. PlanPlus Would help in preparation of Panchayat wise as well as district plans starting from grassroots, enable convergence of funds from different schemes, track fund flows and maintain sources of funding. 4. ActionSoft Would be used for Scheme implementation and monitoring. It would allow Panchayats to enter the implementation status of all schemes (Central, State and from own sources) on defined monitoring parameters. 5. PRIASoft Would capture details of receipts and expenditure, automatically generate cash book, registers, Utilization Certificate for any scheme. It will generate required registers by just a few basic entries. 6. Asset Directory Would help in management of information related to assets and utilities in a Panchayat area. 7. Grievance Would be a generic grievance redressal system allowing citizens to lodge complaints against Panchayat Redressal functionaries and report any malpractices. It would track the entire grievance redressal process until closure.

Active Gram Sabha: For Empowered People And Accountable Panchayats 43 Roadmap for the Panchayati Raj (2011-17) An All India Perspective

8. Social Audit Would capture all events and details relating to social audit conducted by GS, the action taken report etc. 9. Training Would be a portal providing details of all training programmes, i.e. schedule and training material. The Management Panchayat functionaries will be able to register for courses online . Also, the partner training agencies will be able to register. 10. GIS Would display maps of Panchayats and integrate with other applications for Panchayats such as Panchayat Profiler, Planning and Budgeting, Asset Directory etc . so that a spatial view of the profile/ plan of a Panchayat is obtained. 11. Panchayat Portals Would generate a website for each Panchayat across the country. Would act as a single delivery gateway using single sign-on. 12. ServicePlus Would be a generic citizen service delivery application to capture all events and information related to delivery of services to citizens by Panchayats.

These applications would serve all core internal advised to start implementing these applications needs of the PRIs, namely: at all levels. They should assess the status of Enable Panchayats in be�er delivery of implementation of these, identify the bo�lenecks

mandated services to the citizens. and adopt measures to remove them through Facilitate transparency in their functioning by capacity building and other relevant actions. As

proactive disclosures which would facilitate all these applications are interlinked, hence States Social Audit process. must ensure that National Panchayat Directory Improve internal management processes and is updated in time for any changes as it would be

decision-making in Panchayats. reflected in other applications too. Enable electronic tagging and tracking of

funds at the end point. Remaining applications are under various stages of development and will become available soon. All the applications have interlinkages, some Besides these, for every State, some state specific aspects of which are given in the flow chart applications to be identified by States will also be below: developed in association with NIC.

Out of 12 core common So�ware Applications of 8.3.4 Connectivity PES, PRIASo� and PLANPlus have been rolled Internet connectivity is the basic requirement out. Ministry has also provided one time training f o r r u n n i n g P E S a p p l i c a t i o n s a t t h e Pa n c h a ya t to the users in the States on the usage of PRIASo� a s a l l t h e s e c o r e c o m m o n a p p l i c a t i o n s a r e web and PlanPlus. The State PR department are based. Hence, provision of internet connectivity

Unique Codes Completed work ASSET DIRECTORY

MIS Action Plan Work Codes ACTIONSOFT

Accounts, Financial MIS Action Plan Work Codes, Voucher Entry PRIASOFT Social Audit/Meeting Management Action Plan, Work Codes GP Profile, Resources PLANPLUS GIS

Socio-economic, Infrastructural, GP Profile PROFILER Demographic Data Panchayats Codes Mapping GP Census villages DIRECTORY

44 Active Gram Sabha: For Empowered People And Accountable Panchayats e-Governance in Panchayats

at the GPs is equally important for the successful introduce e-governance at the grassroots level, implementation of the e-Panchayat MMP. MoPR has deployed consultants/professionals Therefore, States would need to assess the in States to provide handholding support to the connectivity requirements at the GP level. State PR Department. This trained manpower would help create the required ecosystem for The States are advised to ensure that GPs not successful deployment and implementation of having connectivity should apply at the BSNL the IT applications. offi ce for a broadband connection. Subsequently, they should pursue with regional BSNL offi ces The consultants have been primarily positioned for providing reliable connectivity at the GPs. to fi ll the skill gap at the state level. Therefore, they need to assist the state PR and RD 8.3.5 Capacity Building Departments in the overall project management Inadequate capacities at the Panchayat is one for the eff ective roll out of e-Panchayat MMP. of the hindrances in successful deployment of In addition, they have to play the role of a PES Applications. States need to analyse the facilitator and change agent for the state PR and existing gaps and required training needs of RD Departments for meeting the objectives of employees, and accordingly devise strategies e-Panchayat MMP. to train their offi cials. Training on use of Computers and on Application so� ware can The consultants will be primarily reporting to be carried out by States utilising funds from the Secretary, PR and RD Departments of the BRGF (Capacity Building Component), RGSY States or a nodal offi cer designated by him for and other sources. this purpose, on a day-to-day basis. The State NIC coordinator will provide requisite guidance MoPR has tied up with DOEACC, a society on technical ma� ers. under DIT, for providing training on basic ICT skills including use of internet, offi ce, accessing It is proposed to form State Project information from various websites etc. DOEACC Management Unit (SPMU) and District operates through authorised and accredited Project Management Unit (DPMU) for every institutes. States can also recommend facilities State. available with Engineering Colleges/Rural BPOs/ Technical Institutes etc. for imparting training, 8.4 e-Panchayat and CSCs provided they are authorised from DOEACC for this purpose. CSCs could provide front-end to the e-Panchayat for many citizen services and also be used for 8.3.6 Project Management other purposes till such time the GPs have their With a view to successfully implement and own computing facility.

8.5 Action Points

Provide ICT infrastructure and manpower to all GPs. (GoI and States) Have a clear strategy and action plan for roll-out of e-Panchayat Project for which ISNA, BPR and DPR have been prepared for each State/UT. (States) Develop and deploy all 12 Core Common Applications within a year and also the identifi ed State specifi c Applications. (GoI and States) Leverage CSCs as front-ends for citizen services as an option. Connect all GPs with broadband. (GoI)

Active Gram Sabha: For Empowered People And Accountable Panchayats 45 Roadmap for the Panchayati Raj (2011-17) An All India Perspective

Chapter 9 Panchayat (Extension to Scheduled Areas) Act (PESA)

9.1 Provisions under Schedule V of the It was critical that customs, rights and livelihoods Constitution of these people are protected through their empowerment. Accordingly, PESA was enacted in The Schedule V Areas of the nine States 1996 which entrusted part IX of the Constitution (AP, Chha�isgarh, Gujarat, Jharkhand, MP, to Schedule V Areas, and provided for people- Maharashtra, Orissa, Rajasthan and HP) are centric governance and people’s control over characterised by poverty, illiteracy, weak community reserves and their life, with a central infrastructure and deprivation in general. Given role to the GS in order to provide people-centred the vulnerability of the people, Schedule V of the development and also for enhancing people’s Constitution makes special provisions such as: control over common-pool resources. Report by Governor to the President regarding

the administration of these Areas. 9.3 Powers of the Gram Sabha Tribes Advisory Council to advise Governor

on ma�ers pertaining to the welfare and The GSs under PESA are deemed to be ‘competent’ advancement of the STs. to safeguard and preserve the traditions of their Direction by Governor through public people, community resources and customary

notification that any particular Act of mode of dispute resolution. The GSs further Parliament or of the State Legislature shall have: or shall not apply to a Scheduled Area or any Mandatory executive functions to approve

part thereof. plans of the Village Panchayats, identify Governor to make regulations for the peace beneficiaries for schemes, issue certificates of

and good government. utilisation of funds. Union Government to give direction to the Right to mandatory consultation in ma�ers

State as to the administration of these Areas. of land acquisition, rese�lement and rehabilitation, and prospecting licenses/ 9.2 Need for PESA in spite of Schedule V mining leases for minor minerals. Power to prevent alienation of land and

Despite these special provisions, the pressure restore alienated land. on natural resources in these areas continued Power to regulate and restrict sale/

due to the large projects being set up therein consumption of liquor. and unscrupulous elements indulging in illegal Power to manage village markets, control

mining and forest felling. Land alienation and moneylending to STs. exploitation have also continued. This led to Ownership of minor forest produce

dislocation of the communities and loss of Power to control institutions and functionaries

major sources of livelihood, and also increased in all social sectors. vulnerability and disenchantment with Power to control local plans and resources for

governance. such plans including TSP etc.

46 Active Gram Sabha: For Empowered People And Accountable Panchayats Panchayat (Extension to Scheduled Areas) Act (PESA)

9.4 Role of PESA in containing Left Wing Detailed comments on LA, RR, M&M Bills

Extremism (LWE) and IFA provided to the relevant Ministries. Regular reviews being held with the States.

It was expected that PESA would lead to self- Note circulated for amending PESA Act.

governance and empowerment of the people. Commi�ee set up on MFP: to suggest modality

However, implementation of the Act has not been of ownership by GS, be�er prices to gatherers satisfactory. The rights, livelihood and habitat etc. of the people in these areas have continued to be under stress, leading to disaffection with the 9.7 Key Interventions by the States system. Following are the key interventions required Generally, PESA areas and those in their vicinity from the States: suffer from LWE. Effective implementation of PESA is the answer to various causes of discontent (i) Acts and Rules leading to extremism in the tribal areas. Not Adopt Model PESA rules with appropriate

surprisingly, various Expert Commi�ees have modifications. recommended implementation of PESA in le�er Amend PR Act.

and spirit. There is, evidently, urgency in the Subject Laws, Rules and Executive Instructions

implementation of PESA, given the deepening in consonance with PESA. and widening of extremism in these areas and vicinity. (ii) Gram Sabha Empower GS and ensure its effective

9.5 Effective Functioning of GS functioning (MoPR guidelines dt. 2.10.09). Provide administrative support to GS for

The most important step towards the exercising its functions. implementation of PESA would be ensuring Regular training of Government and

effective functioning of GSs. Accordingly, Panchayat functionaries. Empower the GS and ensure its effective

functioning. (iii) Administrative Measures Undertake special programmes to acquaint Constitute commi�ee of relevant departments

the GSs of their rights and duties. and experts at state and district levels to Develop appropriate training and information periodically review the progress.

material in the regional language. Activate TACs and TRIs.

Identify, train and deploy a social mobiliser in Include prominent section on implementation

each GS for activating the GS. of PESA in Annual Governor’s report. Conduct regular training programmes on Strengthen administrative machinery by

PESA for State and Panchayat functionaries filling up vacancies, creation of Panchayat (both elected and officials) to sensitise and cadres, hardship allowance etc. educate them on PESA with focus on the role Create information-cum-grievance redressal

and conducting of the GS. mechanisms.

9.6 Action Taken by MoPR (iv) Subject Related etc. Delimitation of villages through SEC on the

MoPR has done the following regarding PESA: application of communities. Comprehensive guidelines issued to the States Nominate under-represented tribal groups

on 21 May, 2010. (PTGs etc.). Model PESA Rules circulated to the States. Effective role of the GS in restoring alienated

Guidelines issued to the States for empowering land; decision to be executed by SDM.

GS. Land Aquisition: complete information before

ILI studies to analyse State and Central Laws GS; recommendation to be reversed only by

circulated. the State government with reasons.

Active Gram Sabha: For Empowered People And Accountable Panchayats 47 Roadmap for the Panchayati Raj (2011-17) An All India Perspective

Be� er prices to the gatherers for MFP. funding under 275(1) to PESA compliance;

Enable GS, especially women, to take decisions fund administrative support to GS; and

regarding liquor vending. support value addition to MFP by locals. Rights regarding Minor Minerals to GS/ D/o Land Resources: Amend LA and R&R

GP; royalty to return to PRIs; rules for Acts. environmental conservation. Ministry of Mines: Amend M&M Act; protect

Capacity building of GPs and GSs to check Habitat: deep mining as against wide mining,

unfair trade practices in local markets and mine-closure plans etc. money lending. MoEF: Amend Forest Act; MFP issues, resolve

JFMC; bring under GS. 9.8 Key Interventions by the Centre D/o Financial Services: Provide Credit options

Following key interventions are required from in Schedule Areas. the Union Ministries: MoPR: Amend PESA to remove infi rmities;

Planning Commission and Ministries with assist States in formation of rule/guidelines

fl agship CSSs: Link funding under CSSs and etc.; capacity building etc. LWE/IAP packages to compliance with PESA. Special report on PESA from the Governor.

MoTA: Rationalise Schedule V areas; link

9.9 Action Points

Amend PESA Act to remove infi rmities. (GoI) Adopt Model Rules framed by MoPR with suitable modifi cations. (States) Amend relevant subject laws and rules and issue executive instructions for PESA compliance. (States and GoI Ministries) Enable and activate the GSs. (States and Panchayats) Build capacity of the functionaries implementing PESA. (GoI and States)

48 Active Gram Sabha: For Empowered People And Accountable Panchayats Decentralised Governance in the North Eastern States

Chapter 10 Decentralised Governance in the North-Eastern States

10.1 Decentralised Governance this defeats the philosophy of independence of different tiers of Local Self Government. 10.1.1 The North-Eastern States have different legal structures on Decentralised Governance. The different formats of local government for Arunachal Pradesh is covered by Part IX North Eastern States have been allowed to with some restrictions like no reservation continue during the framing of Constitution, the for Scheduled Castes. Six districts of Assam, amendments of Sixth Schedule when new States whole of Meghalaya, part of Tripura and two were created and during the 73rd Amendment. districts of Mizoram are covered under Sixth It is therefore, appropriate to incorporate the Schedule. Some Part IX areas of Assam also have principles of Decentralised Governance within legislation constituting Tribal Councils, but they the legal framework set up for each State and are not particularly functional. The Hill areas of each region in the States. Manipur, whole of Nagaland and Six districts of nd Mizoram are covered by State Laws governing 10.2 2 ARC and Expert Committee on Village Councils, and out of these areas, only the NE States hill areas of Manipur have District Councils. 10.2.1 2nd ARC The main problem in the areas covered by The 2nd ARC in its Seventh Report (February, Councils i.e. excluding Arunachal Pradesh, is 2008) entitled ‘Capacity Building for Conflict that the Decentralised Governance is not deep Resolution’ has dealt specially with ‘Conflicts enough. Village Councils do not exist in Council in the North East’ (NE). Besides dealing areas of Assam and Meghalaya. In Nagaland and with the general theme of capacity building Manipur, the Village Councils are o�en headed in administration, the 2nd ARC has focused by traditional Village Chiefs. Elections to the especially on three aspects of local government District Councils of Manipur were not held for institutions, namely: decades. The Government has the powers to Autonomous District Councils in the Sixth extend the tenure of Councils and also supersede Schedule areas them which reduces the powers of the Councils. Village-level self-governance therein

Parallel structures exist at the village level in Tribe-specific Councils in Assam.

Nagaland which means the existence of two bodies in the Village. While elections are being 10.2.2 The Expert Committee conducted through State Election Commission MoPR had appointed an Expert Commi�ee in most of the States, neither this has been chaired by Shri V. Ramachandran (a 2 nd ARC mandated nor the conduct of election prior to the member) in 2006 for examining in detail, the end of tenure has been prescribed under Law. In functioning of self-governing institutions under State like Tripura, the District Council have too the Sixth Schedule. The Commi�ee submi�ed much control over the Village Commi�ee and its Report in September, 2007. The major

Active Gram Sabha: For Empowered People And Accountable Panchayats 49 Roadmap for the Panchayati Raj (2011-17) An All India Perspective

policy issues of self-governance dealt by the It is further desirable to benchmark the standard Commi�ee are naturally subsumed in the ARC size of a Village Council in the hilly terrains. The recommendations. Council should not be too small to be unviable. Moreover, if the Council headquarters is too far 10.2.3 ARC and the Expert Commi�ee consider from a habitation, all residents will not be able to PESA to be a “landmark legislation” whose participate and the Council will be dominated by experience can provide guidance in dealing with the people of the area around the headquarter. the vexed issue of traditional-formal interface, Another problem of Village Councils is that many etc. in NE States. of them do not have territorial constituencies or Wards. As a result, remote and smaller hamlets 10.2.4 The Broader North-Eastern Perspective do not get fair deal. These recommendations have to be considered in the larger context of governance in NER. (b) Variation in the Schedule VI framework For example, there is a compelling need to Moreover, the Schedule VI framework varies balance security, tribal identity and institutions, from State to State as follows. economic development and natural resource There are Village Councils legislated by

management. Various a�empts towards the District Council in Tripura covered by achieving needed balance became infructuous one District Council and in Mizoram in two because of the complex structures, overlapping Districts covered by three District Councils. jurisdictions, ad hoc decisions and non- In Meghalaya and Assam, the District implementation of agreements. Councils have not legislated for constitution of Village Councils. Village Councils are 10.3 Issues also called Village Commi�ee in Tripura and Village Authority in Manipur. However, for 10.3.1 Governance at the Village-level simplicity, they are called Councils in this document. (a) Traditional vs Formal In Mizoram, in the Districts outside the

The traditional self governing village institutions Sixth Schedule areas, Village Councils exist are strong throughout NER, especially in the under State law. In Nagaland, the State Law tribal territories. Formal institutions such as provides for Village Councils, but does not Village Council or Gram Sabha (under various provide for District Councils. However, the State laws including the Sixth Schedule) are Village Councils are headed by traditional rather weak. chiefs and another body has been created by the Village Council for implementation of Nagaland has taken some ingenious measures development programmes. Since such a body in its Village Council Act, 1978. But there are does not have independent legal status, it does some inherent anomalies therein like the Village not have the independence which is expected Development Board (analogous to the Gram from a LSG. Besides, the existence of multiple Sabha) being answerable to traditional Village bodies makes each of the organisations weak. Council (which is not an elected body) and an official functioning as its chairman. They have to (c) Inter-Ministerial Team (IMT) of MoPR, be remedied in keeping with the spirit of rising MHA, DONER, MoTA, MoLaw etc. of GoI democratic aspirations. has proposed the following: In Assam and Meghalaya, new Village Councils This traditional versus formal impasse is equally have been proposed through State Laws. In pervasive in Council Areas and other tribal Nagaland and Manipur, elected Village Councils territories in NER. The ‘core’ elements of PESA instead of the traditional Village Councils have frame can be adopted as a model for resolving the been recommended. The laws dra�ed by IMT prevailing anomalous situation in NER. prepared by GoI have the objective of deepening

50 Active Gram Sabha: For Empowered People And Accountable Panchayats Decentralised Governance in the North Eastern States

Decentralised Governance through provisions district, DPCs of the districts concerned should like: be mandated to function under the guidance of Make Village Council answerable to Gram the Council. There are some areas where this is

Sabha. not possible for various reasons. Limit the powers of State Government in

ma�ers of extension and supercession of 10.3.4 District Council and the Administration Councils. of Justice Reservation for women. Administration of justice in the Tribal Areas

Mandatory and regular election for the Village of NER is a Constitutional responsibility of

Council through State Election Commission. the Council with power to constitute ‘village Make women members’ participation part of councils or courts’. However, the history of

the quorum. administration of justice of Village Councils Constitution of State Finance Commission. and District Councils has been mixed. In

Vesting of both developmental and judicial States like Manipur, the Village Authority had

powers on the Village Councils. only judicial functions and no development functions. In Mizoram, the Village Councils 10.3.2 Urban Local Bodies in the Tribal Areas are performing both judicial and development ‘Local Government’ in general areas comprises functions. of two parts: (a) Panchayats in Part IX; and (b) Streamlined administration of justice a�er

Municipalities in Part IX A. But the jurisdiction amendment in the Sixth Schedule should be an of Councils in the Sixth Schedule is unified. This integral part of the new structure. Ultimately, unified Council frame should continue. In fact, the decentralisation of Governance should as envisaged in PESA and recommended by ARC need more judicial powers to the Village in its Report on LSG, the Sixth Schedule Council Council (rather than District Councils) so pa�ern could be followed in the whole country. that disputes can be solved locally. It may comprise elements of both the traditional and Although areas outside Part IX-A of the formal. Constitution of India are not required to have Moreover, the Councils concerned may municipalities, many areas in Schedule V Areas compile customary laws as a guide for the have municipalities. Two opposite views have village communities. been proposed by the stakeholders. One view is to have ULBs and o�en it comes from residents 10.3.5 Raising the Level of Administration in of the areas with urban character. Another view Tribal and Scheduled Areas is that constitution of ULBs will take away the Article 275 (1) underwrites the cost of raising traditional control of Village Councils over land the level of administration of Scheduled Areas and this will result in influx of outsiders. and Tribal Areas to that of the rest of the State concerned, by the Union Government. There is a 10.3.3 District Council and District-level need for preparing a perspective plan for raising Planning the level of administration in all Tribal Areas to Article 243ZD in Part IX A of the Constitution that of the rest of the country within a period of envisages constitution of a District Planning ten years or so, taking advantage of other area Commi�ee (DPC) at the district level. However schemes as well. Separate annual plans for raising Part IX A at the moment does not apply to the the level of administration should be prepared Scheduled and Tribal Areas. Therefore, Article by the States concerned under the guidelines of 243ZD concerning DPCs is not applicable in these MoTA along with the developmental plans. areas. Accordingly, a provision could be made in the Sixth Schedule so that District Council itself 10.3.6 District Councils and State Finance (or sub Commi�ee thereof) should also be the Commissions (SFCs) DPC where the Council covers a whole district. Some States that are outside the purview of Part In case, the Council covers more than one IX, have not established SFCs. While it is not

Active Gram Sabha: For Empowered People And Accountable Panchayats 51 Roadmap for the Panchayati Raj (2011-17) An All India Perspective

necessary to have full-fl edged SFCs in all the NE state wise recommendations regarding fi nance, States, the Governor may be empowered to set up accounts and audit. The implementation of these a high level State Finance Commi� ee with terms recommendations should be made in a time of reference as in Article 243 (II) for: bound manner. Reviewing the fi nancial position of Panchayats

and Councils. 10.5 Institutional Improvements: Roles of Recommending devolution of funds thereto and Inter-relationships among the

from the State. Seven Major Institutions

10.4 Administrative Reform Measures Institutional improvements are critical to eff ective and effi cient governance in the states 10.4.1 Reduced Hierarchy and Simpler of NER. Resolution of issues between the Systems state governments and councils (district The new opportunity of strengthening self- or regional or tribe-specifi c) constitute one governing institutions in NER should be used for institutional improvement that is required. The basic administrative reforms. The uniqueness of other concerns the seven major institutions in small-sized States should be harnessed in terms the area i.e. MoTA, DoNER, NEC, ISC, NCST, of simpler systems with reduced hierarchy MoPR and NEHU which are responsible for engendering greater opportunities for face-to- various administrative and developmental face interaction between the people and the tasks. They should work in unison especially administration. an eff ective self-governing system is prepared in NER. 10.4.2 General Administration The Ramachandran Commi� ee has made some

10.6 Action Points

Inter-Ministerial Team (IMT) to continue to consult with the State Governments,

Councils and other stakeholders like women’s bodies to fi nalise the dra� amendments in the State laws. (GoI and States) IMT to further work on:

State and Council Relation issues that remain unresolved.

Need for tribe-specifi c Councils and their role in the context of proposed self-governing

village institutions. (GoI and States)

52 Active Gram Sabha: For Empowered People And Accountable Panchayats Constitutional and Legal Framework

Chapter 11 Constitutional and Legal Framework

11.1 Model Panchayati Raj Act 11.2 Amendment to Article 243 of the Constitution MoPR is responsible for ensuring implementation of Part IX of the Constitution in le�er and spirit. 11.2.1 While the 73 rd Amendment to the Inarguably, it has formulated a dra� Model Constitution ensured certain essentials such Panchayat and Gram Swaraj Act which: as regular elections to Panchayats under the Spells out the power, duties and functions of supervision of State Election Commissions

the Panchayats. (SECs), reservations, the establishment of SFCs Incorporates devolution of 3Fs to the etc., it is up to the State Legislatures to dev olv e

Panchayats as per the le�er and spirit of the appropriate functions to PRIs. This has led to Constitution and endows Panchayats also with highly unev en dev olution of the 3Fs across regulatory functions like rural policing, issue States. of birth/death/caste/residence certifi cates etc. Ensures accountability of Panchayats through 11.2.2 The spirit of the Constitution is clear in

the central role of Gram Sabha and through this regard Article 40 in the Directive Principles clear provisions on Accounts and Audit of State Policy states that ‘the State shall take including Social Audit, Ombudsman etc. steps to organise village Panchayats and endow Proposes Nyaya Panchayats as a mechanism them with such powers and authority as may be

for dispute resolution through mediation, necessary to enable them to function as units of conciliation and compromise self-government.’ Provides model frame for State Election

Commission and State Finance Commission, 11.2.3 Further, the-then PM, while introducing Elaborates various aspects of Panchayat the 64 th Constitution Amendment Bill in May

Finances, Planning, Budgeting etc. 1989, had concluded his speech as follows “To the people of India, let us ensure maximum The Panchayats have also been endowed with democracy and maximum devolution. Let there regulatory functions like rural policing, issuing be an end to the power-brokers. Let us give of birth/death/caste/residence certificates etc. power to the people”.

It is expected that the Model Act would provide 11.2.4 Moreover, the Statement of Objects and a reference for the existing and future Panchayat Reasons of the Constitution (73 r d Amendment) laws besides bridging the gaps and removing Act, 1992 states that ‘In the light of the inconsistencies which exist in many of the experience in the last forty years and in view of enactments. the shortcomings which have been observed, it is considered that there is an imperative need There is a need for harmonisation of laws to enshrine in the Constitution certain basic and and rules to adhere to provisions of essential features of Panchayati Raj Institutions 73r d Amendment so as to reduce conflict with to impart certainty, continuity and strengthen functional domain of Panchayats. them’.

Active Gram Sabha: For Empowered People And Accountable Panchayats 53 Roadmap for the Panchayati Raj (2011-17) An All India Perspective

11.2.5 As the country has commemorated following the principle of subsidiarity (i.e. 50 years of three-tier Panchayats on 2nd October, devolving functions to the lowest possible 2009, it would be most appropriate to have a re- level where it can be performed), to be look at the relevant provisions of the Constitution followed by appropriate devolutions of funds and carry out amendments required to realise and functionaries. But, this has not led to the true Gram Swaraj of Gandhiji. In the meantime, desired outcome. Either the activity mapping without waiting for the required amendments, has not been done, or has not been followed empowerment and enablement of the Panchayats with government orders, or the principle of should proceed ahead. subsidiarity has not been followed, or funds and functionaries have not been devolved. 11.3 Constitutional Amendments to be Considered 11.3.4 It may, therefore, be desirable to make devolution of power and authority to the Local 11.3.1 Amendment to Article 243G and Bodies mandatory with a suitable formulation. 243W of the Constitution: Article 243G of the Possibility of a Panchayat list like Union/State/ Constitution provides that the Legislature of a Concurrent list could be explored. State may, by law, endow the Panchayats with such powers and authority as may be necessary 11.4 Setting Up of District Councils to enable them to function as institutions of self- government with respect to the preparation 11.4.1 The rural and urban areas represent a and implementation of plans for economic political, social, economic and geographical development and social justice including for continuum. However, in the present system, there ma�ers listed in the Eleventh Schedule. is an artificial divide between rural and urban local governments, which has several shortcomings. 11.3.2 Notably, Article 40 states that the state First, the planning and management of socio- shall take steps to organise Village Panchayats. economic development including basic public The change in the word from ‘shall’ (Article services are artificially segmented. Second, in 40) to ‘may’ (Article 243G), gives discretion in a rapidly urbanising society, the boundaries devolving powers and authority to the Local between rural and urban territories keep shi�ing. Bodies. As a result, the actual devolution to the The peri-urban areas around cities have dual Local Bodies has been highly uneven across States characteristics of both the village and the town. and far from satisfactory in most of the States. It Finally, as a democratic body representing may be noted that the Constitutional provisions the whole district does not exist, the District relating to the structure of local governments are Collector continues to be the symbol of authority mandatory in nature, and consequently, regular in the district. Thus democratic decentralisation elections with the mandated reservations, is undermined. In all, the artificial separation constitution of State Finance Commission etc. of rural and urban local governments leads to have now become the norm. Correspondingly, fragmented planning and implementation, sub- devolution of powers and functions upon the optimal utilisation of resources (manpower and Local Bodies that can be performed at the local financial) and vital gaps. level, also needs to be made mandatory. Further, though Article 243 ZD provides for the 11.3.3 Since ma�ers listed in the Eleventh creation of DPCs to consolidate plans prepared and Twel�h Schedules are also State by the Panchayats and the Municipalities, the subjects, for genuine devolution in the effectiveness of the DPC is very limited, because it present Constitutional framework, MoPR has does not have the necessary power and control over supported the States in carrying out ‘activity sectoral formations. An empowered institution, mapping’, i.e. delineating clearly the functions i.e. a unified elected District Council for the entire to be performed at different levels (Central/ district (in place of the District Panchayat), with State Govts., 3 tiers of Panchayats, ULBs etc.), representation from all rural and urban areas,

54 Active Gram Sabha: For Empowered People And Accountable Panchayats Constitutional and Legal Framework

is needed to promote democratic governance 11.5 Making the Panchayats Accountable to and holistic planning and implementation for the Gram Sabha addressing people’s needs. 11.5.1 People’s participation and accountability 11.4.2 The District Council could be responsible of the local public institutions to the people are for planning for the whole district, as well as for two critical elements for improved governance. all the local functions, including those listed in These would evidently be facilitated by the Eleventh and Twel�h Schedules. Suitable strengthening of the Local Bodies as a whole and regulatory functions could also be devolved to of the Gram Sabha in particular. District Councils as these should be empowered bodies capable of taking decisions on a wide 11.5.2 As 50 years of 3-tier Panchayats was range of issues. The DPC comprising of officials commemorated on October 2, 2009, the period and experts will become a professional/technical October 2, 2009 to October 2, 2010 was observed arm of the District Council, providing overall as ‘Year of the Gram Sabha’ to highlight the support to the planning process; se�ing of district critical importance of the Gram Sabha in self- priorities on the basis of consensus among governance and transparent and accountable stakeholders; review of plans of local bodies, functioning of the Gram Panchayat and also to overseeing participative planning; monitoring strengthen the Gram Sabha. and implementation of district plans. 11.5.3 Article 243A of the Constitution provides 11.4.3 The District Council could have its own that the “Gram Sabha may exercise such powers Chief Executive Officer (CEO) of sufficient and perform such functions as the legislature seniority to facilitate coordination of all the of a State may, by law, decide”. This provision development departments of the district. The is yet to be implemented in its spirit, which Collector may function as the CEO of the District weakens the position of the Panchayats as bodies Council, so that the strength of the Collector’s accountable to the people and functioning in a institution is utilised to empower the District transparent manner. Further, in may States, Council. The Collector would be accountable to Gram Panchayats are so large that people are the elected District Councils on all local ma�ers not able to participate effectively. The creation of and to the State Government on regulatory “Ward Sabhas” in large Gram Panchayats would ma�ers, not delegated to the District Councils. enable effective citizen participation.

11.4.4 Such an arrangement already exists 11.5.4 PESA provides a central role to the in the Sixth Schedule areas in the North East, Gram Sabha in the Fi�h Schedule areas. Under as the Autonomous Districts Councils enjoy PESA, Gram Sabhas have (a) Mandatory legislative, judicial and executive powers without executive functions and responsibilities segmentation into the rural and urban areas. to approve plans of the village Panchayat, Such Councils were created to enable the local identify beneficiaries for schemes for socio- people to fulfill their aspirations and to promote economic development, and issue certificate their interests, a goal that is applicable across the of utilisation of funds by the Panchayats; country. Section 4(o) of the Panchayat (Extension (b) Right of mandatory consultations in the to Scheduled Areas) Act 1996, (PESA), applicable ma�ers of land acquisition, rese�lement and in the Fi�h Schedule areas, also recommends rehabilitation, and mining leases for minor such provisions at the district level. minerals; (c) Powers to prevent alienation of land and restore alienated land; (d) Powers to 11.4.5 It may, therefore, be desirable that the restrict sale/consumption of liquor; (e) Powers Constitution be amended to create elected District to manage village markets; (f) Control money Councils, which will have representation from both lending; (g) Powers to control institutions and the rural and urban areas (excluding metropolitan functionaries in all social sectors etc. areas) in proportion to their population.

Active Gram Sabha: For Empowered People And Accountable Panchayats 55 Roadmap for the Panchayati Raj (2011-17) An All India Perspective

11.5.5 It may, accordingly, be desirable that 11.6.4 It may, therefore, be desirable that seats provisions for Ward Sabhas be made in the and offices of chairpersons be reserved for two Constitution and functions of the Gram Sabha be continuous terms for a particular category and incorporated in the Constitution, along the lines reservation be only in those territorial areas of PESA Act by adding a Thirteenth Schedule. (Panchayats and District Councils) where the population of a particular category is 5% or 11.6 Rotation in the Reservation of Seats more, by amending Article 243D.

11.6.1 While the Constitution does not mandate 11.7 Reconciling the Term of the SFCs with rotation of seats a�er just one election cycle, this that of the CFC o�en is the practice across States. It counters the intent of reservation. Candidates who 11.7.1 Article 243I of the Constitution states that win elections for the first time from reserved the Governor of a State shall constitute a State seats do not get adequate opportunity to gain Finance Commission (SFC) ‘at the expiration of in experience and grow in stature by ge�ing every fi�h year’ to review the financial position re-elected. O�en, proxy candidates are put up, of Panchayats and make recommendations who serve for a term, a�er which the seat gets regarding the principles governing the de-reserved and becomes available to the existing distribution and assignment of taxes, duties etc. powerful groups and individuals. Moreover, the between the State and Panchayats, and grants- rotation a�er one election cycle o�en leads to an in-aid to Panchayats from the Consolidated unhealthy a�itude of the elected, having li�le Fund of the State. Article 280(3) (bb) requires hope for re-election. the Central Finance Commission (CFC) to make recommendations on the measures needed to 11.6.2 The 2nd ARC has recommended augment the Consolidated Fund of a State to reservation for at least two terms to enable elected supplement the resources of Panchayats in the representatives to grow as genuine leaders. Such State on the basis of the recommendations made a provision already exists in Tamil Nadu. It is by the SFCs. argued that this would lead to a seat becoming available to a particular group (SC, ST, OBC, 11.7.2 The successive Finance Commissions have Women) a�er four decades and the right-to-recall noted that as the period of the SFCs and the CFC should address the ills of one election cycle. But was not synchronised, it was difficult to base the the balance of advantage would lie with rotation CFC report on the recommendations of the SFCs only a�er two election cycles. and State Governments should be empowered to constitute and direct their respective SFCs to 11.6.3 Further, Article 243D provides that seats give their report well before the CFC finalises its and offices of chairpersons reserved for SCs, STs recommendations. and OBCs shall be allo�ed by rotation irrespective of their population in a Panchayat/Ward. Since, 11.7.3 The present wording in the Constitution the proportion of population of these categories ‘every fi�h year’ limits the State Governments in varies among Panchayats, this may lead to the constituting their SFCs so that the SFC reports situation that proportionate number of seats are are available to the CFC well in time. It may not reserved for these categories in Panchayats/ be desirable to amend Article 243I (1) of the Wards, where their proportion is high, while Constitution suitably. disproportionate number. of seats are reserved for them in Panchayats where their population 11.8 Restructuring of the Legislative may be very low or even zero. This vitiates Councils the spirit of reservation, and also increases resentment as the manner of reservation is seen 11.8.1 The Legislative Councils can be critical as illogical. institutions to enable the Local Bodies to have

56 Active Gram Sabha: For Empowered People And Accountable Panchayats Constitutional and Legal Framework

a say in the formulation of State laws and to provide that two-thirds of the members of the protect their institutional interests. Through the Legislative Councils shall be elected from among Legislative Councils, an organic link between the the elected members of the Local Bodies. State Government and the Local Bodies can be established, and the issue of inadequate devolution 11.9 Nyaya Panchayat Bill, 2011 of powers and functions to the Local Bodies could be resolved through legislative debates. 11.9.1 It is a Bill to provide for the establishment of Nyaya Panchayats, at the level of every GP as 11.8.2 Clause 3 of Article 171(2) of the Constitution a forum for resolution of disputes with peoples’ provides for the election of only one-third of participation directed to providing a system of the members of the Legislative Councils by the fair and speedy justice, both civil and criminal, electorate of Local Bodies. The remaining two- to the citizens at their doorsteps, and for ma� ers thirds are to be elected from among university connected therewith or incidental thereto. graduates, teachers, persons elected by MLAs, etc. The ‘graduates’ and ‘teachers’ constituencies 11.10 Dispute-free Village Scheme may have originally been conceived as a group of literate persons, when illiteracy was very While passage of the proposed Nyaya Panchayat high. With high literacy now, there is li� le Bill may take some time, MoPR has advised the logic in providing separate representation for State Governments to initiate scheme similar graduates and teachers. Instead, the Legislative to “Mahatma Gandhi Dispute Free Villages Councils need to be restructured to give larger Campaign” launched by the Government of representation to the Local Bodies, towards Maharashtra. Under the Maharashtra scheme, deepening the democratic process. cash awards are given to GPs which a� ain pre- determined targets in terms of dispute resolution. 11.8.3 A law could be framed under Article 171(2) (Details available on www.panchayat.gov.in)

11.11 Action Points

Adopt the Model Panchayati Raj Act or its specifi c provisions with appropriate modifi cations. (States) Have a National Debate on amendment to Article 243 of the Constitution. (GoI and States) Enact the Nyaya Panchayat Bill. In the meantime, launch Dispute-free Village scheme. (GoI and States) Harmonise State and Central Acts and Rules with the 73rd Amendment.

Active Gram Sabha: For Empowered People And Accountable Panchayats 57 Roadmap for the Panchayati Raj (2011-17) An All India Perspective

Chapter 12 Some Important Issues

12.1 Viable Size of the Gram Panchayats The Union Gov ernment may prepare of a Model Code relating to the supervision, 12.1.1 There is a case for larger and more direction and conduct of elections for viable GPs as it is difficult to provide small the PRIs. GPs with requisite buildings and complement of managerial and technical staff to enable 12.2.2 The 2 nd ARC, in its Sixth Report on them to function efficiently and effectively. Local Governance has made the following Recommendations in the State PR Secretaries recommendations in the regard: meeting held on September 26, 2008 was to have Delimitation and reservation of constituencies five to ten thousand population in plain areas to be entrusted to the SECs. and two to five thousand in hilly/desert areas, State Laws to provide for adoption of depending on distance travel time from GP Assembly Electoral Rolls for elections to headquarters etc. the local bodies and accordingly, the voter registration and preparation of electoral 12.1.2 Simultaneously, it needs be borne in mind rolls by the Election Commission of India that the larger GPs will be less participatory. (ECI) to be done on geographic continuity. The dichotomy between participation and Similarly, the electoral divisions for elections representation can be solved by having to local bodies to follow the Building Blocks empowered units such as Ward Sabhas (viz. Palli approach. Sabhas in Orissa and Gram Unnayan Samitis in Registration of Electors Rules 1960 to be West Bengal). Delimitation of the GPs could be amended to define a ‘part’ as a compact entrusted to the SECs within the state guidelines. geographical unit. Boundaries of ‘part’ and ‘enumeration block’ 12.2 Election Process and State Election to coincide for convergence of census data Commission (SEC) and electoral rolls. Reservation of seats to done on either of the 12.2.1 The Sixth Round Table of Ministers-in- following two principles – charge of Panchayati Raj held at Guwahati on Single member constituency: Rotation 27-28 November 2004, recommended that: be a�er two terms of five years each for There is a need to work towards commonality, longevity of leadership and nurturing of if not uniformity, to election procedures and constituencies. provisions. Multi-member constituency: Ensuring It would be desirable to vest all responsibility reservation of seats by the List system. for the election process to the SECs rather than spli�ing these up, including issues like Election of members of DPCs and MPCs to be the preparation of electoral rolls, delimitation entrusted to SECs. of constituencies, reservation and rotation, qualifications of candidates and conduct of 12.2.3 The above recommendations need to be elections. implemented.

58 Active Gram Sabha: For Empowered People And Accountable Panchayats Some Important Issues

12.3 Direct Election to Chairman of IP/ZP 12.5 MPLAD/MLALAD Funds

The Constitution stipulates that while seats in The 2nd ARC has recommended abolition of the the Panchayats are able to be filled through direct MPLADS and the MLALADS scheme on the election, offices of chairpersons in Intermediate grounds that these schemes “seriously erode the and District Panchayats are to be filled through notion of separation of powers, as the legislator indirect election. States may provide for direct directly becomes the executive”. At least or indirect elections for chairpersons of Village planning and implementation of schemes under Panchayats. Direct elections have the advantage MPLAD/MLALAD funds could be entrusted to over indirect elections as they lead to the election the local bodies and DPCs. of meritorious candidates who directly represent the people. The problem with direct elections 12.6 Corruption in the Panchayats is that these are expensive and it is difficult for poor candidates to contest. In indirect elections, Corruption in the Panchayats should be seen in the preferences of the political party become holistic prospective, particularly when transfers/ paramount, and moreover, opportunity for use postings of functionaries, who are supposed to of muscle/money power is easier. However, ensure compliance of rules and procedures, is indirect election ensures that the chairperson outside the purview of the Panchayats. Furthermore, is accountable to the Members and therefore, the PR Acts have provisions for action against its subject to democratic checks and balances. This elected functionaries, which need to be enforced. issue needs to be debated further. However, it may be remembered that Panchayati Raj being a necessity for deepening of democracy, 12.4 Merger of DRDA into the Zilla is a very desirable end by itself. Nevertheless, to Panchayat (ZP) deal with the complaints of corruption and mal- administration, Ombudsman for oversight from On the whole, keeping in view (a) the spirit above and effective social audit by the Gram Sabha of democratic decentralisation in accordance from below, would be major steps. Computerised with the 73rd Amendment, and (b) no adverse accounts and transparent procurement process experience having been noticed in States like would also be necessary. Kerala, Karnataka and West Bengal, which have merged DRDAs in ZPs, the recommendations 12.7 State-Panchayat and Inter-Panchayat of 2nd ARC and the Fourth Round Table of the Tensions State Ministers for merger of DRDAs into ZPs could be accepted. Accordingly, DRDA’s legal A careful Activity Mapping assigning specific identity could be dissolved. It could instead roles to the Central/State Government, 3 tiers of become Panchayat and Rural Development Cell the Panchayats, Gram Sabha etc. could remove (PRDC) within the ZP with a separate account, so most of the tensions. The result of good Activity that the fears of diversion/misuse of funds and Mapping would be to clearly identify where transitional problems are allayed. This PRDC competence, authority and accountability lie. It could also become the executive body of the DPC would permit higher levels of Government to to perform the planning functions. This would concentrate more on policy making, legislation, ensure convergence of functions of ZP, PRIs and system building, addressing issues of equity and DPC and planning and implementation of CSSs/ regional imbalances and effectively discharging ACA and also enhance the role of PRDC (erstwhile oversight responsibilities. There is generally a DRDA) in a changed context. The approved staff strong case for (a) giving the Gram Panchayats structure of DRDA with suitable augmentation, the responsibilities of asset creation, operation, should serve the purpose adequately with good and maintenance, while involving it in the recruitment and continuous training. planning process through the Gram Sabha; (b)

Active Gram Sabha: For Empowered People And Accountable Panchayats 59 Roadmap for the Panchayati Raj (2011-17) An All India Perspective

giving the middle tiers responsibilities for human restructured into two schemes viz. (a) BRGF: capital development; and (c) giving higher levels for providing Development Grant to the of Government the responsibility of policy, identifi ed districts/regions to address regional standards and monitoring of outcomes. backwardness eff ectively in a time-bound manner, and (b) RGPSA: for Comprehensive 12.8 MoPR Schemes Capacity Building of the PRIs and equivalent bodies in all districts of the country, including The BRGF, RGSY and other CB&T need to be manpower, ICT, training and infrastructure.

12.9 Action Points

Re-organise small GPs for viable size. Enable SECs to handle all aspects of Panchayat elections. Merge DRDAs into ZPs. Entrust planning and implementation of MPLAD/MLALAD funds to the PRIs. Put in place appropriate institutions, systems and processes to address malfeasance and mal-administration. Do clear Activity Mapping to avoid State-Panchayat and inter-Panchayat tensions. Re-organise MoPR schemes for enhanced impact.

60 Active Gram Sabha: For Empowered People And Accountable Panchayats Road Ahead

Chapter 13 Road Ahead

This chapter lists Action Points for nurturing that they can perform their mandated roles Panchayats into institutions of self- efficiently. government in a multi-level democracy and Institutionalising and using integrated a common platform for all line departments, decentralised participatory planning through people etc. The period for implementation of the PRIs and DPCs for convergence of plethora this Roadmap is the next five years to almost of schemes and pooling of diverse resources coincide with the 12th Five Year Plan period. for be�er outcomes. Though the States are at differing stages of Restructuring the Backward Region Grant evolution of Panchayats, all need to achieve Fund (BRGF) Programme to position the at least the targets suggested below, as per a Panchayats as effective platform for mitigating time-bound action plan: regional backwardness. Reviewing and upscaling the Rural Business 13.1 Vision, Mission and Strategy for the Hubs to promote the role of the Panchayats in Panchayats economic development.

Vision C. Accountability: To a�ain the Gram Swaraj dream of ‘Mahatma Positioning the Gram Sabhas at the core of Gandhi’ through ‘Power to the People’. PRIs for true self-governance and ensuring transparency and accountability of the Gram Mission Panchayats. To enable Panchayats to function as institutions Devising institutions, systems and processes of Self-Government. for enhancing efficiency, transparency and accountability of the PRIs. Strategies Implementing e-Panchayat in a Mission A. Empowerment: Mode. Ensuring progressive devolution of Functions, Funds and Functionaries (3Fs) upon the 13.2 Accountability and Efficiency of the Panchayati Raj Institutions (PRIs). Panchayats Institutionalising GP level dispute resolution mechanism. 13.2.1 Issues Enhancing reservation for women in PRIs and Effective functioning of the Gram Sabha. also their leadership quality. Enabled and Accountable Panchayats. Implementing PESA effectively. Deepening decentralised governance in the 13.2.2 Action Points 6th Schedule Areas. Define powers of the Gram Sabha in the Constitution and State legislation along the B. Enablement: lines of PESA. (GoI and States) Building the organisational capacity of PRIs Provide for Ward/Mahila Sabhas with specific and the professional capacity of Elected functions. (GoI and States) Representatives and Official Functionaries so Ensure effective functioning of the Gram

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Sabhas: Regular and purposeful meetings, 13.4 Functionaries of the Panchayats participation of the marginalised groups, a�endance of official functionaries, 13.4.1 Issues preparation of minutes of the meetings and Requisite manpower. follow-up etc. (States and Panchayats) Capacity of functionaries. Strengthen social audit and give proactive Clarity on the role of functionaries. information to the Gram Sabha. (States) Promote democratic functioning of the GPs 13.4.2 Action Points (not dominated by Sarpanch) and activate Provide at least PDO, Accountant-cum-DEO Standing Commi�ees. and Technical Assistant to each GP or a cluster Grade performance of the Panchayats and of GPs with 5000 population. provide incentives/disincentives based on Compile information of all cadres, their strengths, such a gradation. (GoI and States) vacancy positions, anticipated future vacancies Establish Ombudsman to guard against with time lines, Recruitment Rules etc. mal-administration and malfeasance of the Rationalise/Converge various cadres into Panchayat functionaries. (GoI and States) appropriate Panchayat Cadres and make Provide essential office space, manpower and corresponding changes in the Administrative infrastructure to the Panchayats. (States) Orders and rules etc. Build robust but simple systems, processes Give job description for each post and and procedures for accountability and identify skill development matrices for each, efficiency of the Panchayats. (GoI and States). for training of the personnel. Launch Green Kerala Express type reality show on the Panchayats. 13.5 Finances of the Panchayats

13.3 Functions of the Panchayats 13.5.1 Issues Financial Decentralisation. 13.3.1 Issues Accounting and Audit. Devolution of functions upon the PRIs Fiscal Responsibility Regime. following the principles of subsidiarity and centrality of the Panchayats. 13.5.2 Action Points Increase share of transfers to the PRIs from 13.3.2 Action Points the State Governments as untied grants by Emphasise governance, regulatory and consolidating the State schemes into untied convergence function of the Panchayats. grants (as Kerala has done), and explicitly Devolve functions as per Activity Mapping. define through State legislation a formula to To begin with, 3Fs relating to at least Primary allocate grants to the PRI as a share of the Education, Primary Health, Women and Child State revenues. (States) (including ICDS), Social Justice, Drinking Give right to the Panchayats to levy and Water and Sanitation, Civic Services, Agri collect taxes, tolls, fees, user charges on their Extenstion, to be devolved fully to the own with minimum and maximum rates and Panchayats by the States who have not done incentivise such collection, in order to reduce so. Other States to progressively aim for their dependence on the Central and State devolving 29 ma�ers listed in Schedule XI of Governments. (States) the Constitution. (States) Strengthen composition, function and the Refine “Devolution Index” to capture critical Reports of the State Finance Commission. indices and standards. (States) Implement MoPR advisory dt. 19.1.09 on Link allocations through CSSs to the States to delineating roles of the PRIs in CSSs/ACA. (GoI) the Devolution Index and to the Panchayats, Merge PBs in the Standing Commi�ee of the based on their performance grading. (GoI) Panchayats.

62 Active Gram Sabha: For Empowered People And Accountable Panchayats Road Ahead

Implement Model Accounting System 13.7.2 Action Points including PRIASo� and strengthen Audit Implement Planning Commission circular of System. (States) 25.08.06 for preparing integrated bo�om-up Fulfil performance grant conditions under the participatory plans to ensure convergence 13th CFC award. (States) of plethora of schemes/resources for be�er Prepare Asset Directory for O&M needs and outcomes. (GoI and States) avoiding duplication of works. (States) Ensure that sectoral plans get integrated into Adopt FRBM for the PRIs circulated by MoPR. District Plan via DPC/DPU through iterative (States) process. Provide professional and technical support to 13.6 Capability Building through Training the planning entities, including constitution of professional DPUs, use of Technical Support 13.6.1 Issues Institutions. (GoI and States) Continuous CBT of elected representatives Train relevant PRI representatives and and officials. functionaries in integrated planning and Specialised CBT for elected women/SC/ST PlanPlus. (States) representatives. Initiate spatial planning and amend relevant legislation for enabling. (GoI and States) 13.6.2 Action Points Expedite use of Plan Plus so�ware and GIS. Implement National Capability Building (States) Framework (NCBF) in le�er and spirit. Develop comprehensive CB strategy based 13.8 e-Governance on thorough Capacity Assessment to address gaps at the individual, institutional and 13.8.1 Issue environment levels. Operationalising e-Panchayat in Mission Prepare perspective and annual training plans Mode. based on TNA etc. Set up State level Standing Commi�ees to 13.8.2 Action Points synergise CB efforts of all Line Departments/ Provide ICT infrastructure and manpower to Institutions. all GPs. (GoI and States) Make training programmes women-friendly. Have a clear strategy and action plan for Strengthen SIRDs. roll-out of e-Panchayat Project for which Increase reach of CBT through District/ ISNA, BPR and DPR have been prepared for Block Training-cum-Resource Centres and each State/UT. (States) outsourcing in PPP model. Develop and deploy all 12 Core Common Promote alternative methods of training Applications within a year and also the such as Interactive Self-Learning materials/ identified State specific Applications. Training films etc. (GoI and States) Include transformational leadership and Leverage CSCs as front-ends for citizen own resource mobilisation in the training services as an option. programmes. Connect all GPs with broadband. (GoI)

13.7 Decentralised Planning 13.9 PESA

13.7.1 Issues 13.9.1 Issues Quality and participatory nature of integrated Effective and urgent implementation of PESA. decentralised plans. Capacity at various levels to plan.

Active Gram Sabha: For Empowered People And Accountable Panchayats 63 Roadmap for the Panchayati Raj (2011-17) An All India Perspective

13.9.2 Action Points establishing the Panchayats as the third tier of Amend PESA Act to remove infirmities. (GoI) governance. Adopt Model Rules framed by MoPR with Adequacy of the present justice delivery suitable modifications. (States) system. Amend relevant subject laws and rules and issue executive instructions for PESA 13.11.2 Action Points compliance. (States and GoI Ministries) Adopt the Model Panchayati Raj Act or Enable and activate the GSs. (States and its specific provisions with appropriate Panchayats) modifications. (States) Build capacity of the functionaries Have a National Debate on amendment implementing PESA. (GoI and States) to Article 243 of the Constitution. (GoI and States) 13.10 Decentralised Governance in the Enact the Nyaya Panchayat Bill. In the North-Eastern States meantime, launch Dispute-free Village scheme. (GoI and States) 13.10.1 Issues Harmonise State and Central Acts and Rules Empowered and democratic village level with the 73rd Amendment. bodies. Effective and cohesive institutional set up. 13.12 Miscellaneous Issues

13.10.2 Action Points 13.12.1 Issues Inter-Ministerial Team (IMT) to continue to Small and unviable GPs, role of SECs in Panchayat

consult with the State Governments, Councils elections, DRDA vs ZP, MPLAD/MLALAD and other stakeholders like women’s bodies funds, corruption in Panchayats, inter-Panchayat to finalise the dra� amendments in the State tensions etc. laws. (GoI and States) IMT to further work on: 13.12.2 Action Points

State and Council Relation issues that Re-organise small GPs for viable size.

remain unresolved. Enable SECs to handle all aspects of Panchayat Need for tribe-specific Councils and elections.

their role in the context of proposed Merge DRDAs into ZPs. self-governing village institutions. Entrust planning and implementation of (GoI and States) MPLAD/MLALAD funds to the PRIs. Put in place appropriate institutions, systems 13.11 Constitutional Framework and processes to address malfeasance and mal-administration. 13.11.1 Issues Do clear Activity Mapping to avoid State- Updation of the State PR Acts. Panchayat and inter-Panchayat tensions. Adequacy of Article 243 of the Constitution in Re-organise MoPR schemes for enhanced impact.

64 Active Gram Sabha: For Empowered People And Accountable Panchayats

Active Gram Sabha

Roadmap for the Panchayati Raj (2011-17):

My idea of Village Swaraj is that it is a complete republic. The government of the village have all the authority and jurisdiction required. This Panchayat will be the legislature, judiciary and executive combined. (abridged) Mahatma Gandhi An All India Perspective

“To the people of India, let us ensure maximum democracy and maximum devolution. Let there be an end to the power-brokers. Let us give power to the people.”

Prime Minister Rajiv Gandhi Lok Sabha, May 15, 1989 Government of India Ministry of Panchayati Raj www.panchayat.gov.in

“Active Gram Sabha: For Empowered People And Accountable Panchayats”