UNIT 26 PANCHAYATI RAJ (RURAL

DEVELOPMENT)

Structure
0bjectives
Introduction
Evolution and Growth of Panchayati Raj System in India
Structure and Functions of Panchayati Raj Institutions
Government Policy towards Panchayati Raj
26.4.1 Problems in the Functioning of Panchayati Raj Institutions
26.4.2 Efforts to Revitalise the Institutions
Recent Developments
Let Us S u m U p
Key Words
References and Further Readings
Answers to Check Your Progress Exercises

26.0 OBJECTIVES
After reading this unit you s h ~ u l dbe able to:

throw light o n the evolution and growth of panchayati raj system in India,
discuss the government's policy towards Panchayati Raj Institutions, (PRIs)
explain the need for revitalising PRIs and increasing democratic decentralisation.

26.1 INTRODUCTION
Panchayati Raj in India is a system of local self government under which the peoplr.
in rural areas have taken on themselves the responsibilities for their socio-economic
a n d cultural development. Basically, it is, a n arrangement for pop!~lar participation
in the administration of local affairs. Some tvpe of local institution o r the ot1i.r have
always been in existence in India. After Independence, o u r experience o n village
autonomy, stress o n decentralisation, a n d idherence t o socialist and Gandhian ideals
led to the establishment of Panchayati Raj Institutions (PRls). Since then efforts
have been continuously made to revitalise PRIs and the governments have reiterated
their stand o n increased decentralisation from time to time. Yet the PRIS have hecn
facing a lot of problems which need to be correcte~la t the earliest. T h ~ unit
s would
try to focus o n all these aspects and bring o u t the government's policies towards
PRIs in order to strengthen them.
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26.2 EVOLUTION OF PANCHAYATI RAJ SYSTEM IN
INDIA

Some form of rural institutions o r the other have been in existence in India since the
ancient period. According t o the Agamas a n d Jatakas, villages were classified
according t o the size and mode of habitation. T h e religious orders founded by
Buddha a n d Mahavira observed highly democratic procedures in arriving a t
decisions. Kautilya's Arthshastra provides a n exhaustive account of ihe system of
village administration prevailing a t that time. Manu has given a detailed accotlnt of
local self-government institutions in his 'Manusmriti'. There are three aspects of the
village administration of the ancient period which deserves mention. One is t h e .
community spirit which prevailed among the people. Another is the kind of public
functionaries who were ,concerned with its administration and the third is the nature
of public bodies through which the inhabitants participated in the management of its
Polky ~ncrientions:Case Studies allalrs. I'hls type of system continued to exist in the Mauryan and Gupta periods.
The advent of Moghuls and the introduction of a more elaborate administrative
machinery in the field of revenue led to a tighter control over village administration
but the traditional village institu'tions were left untouched. During the British rule
-the disintegration of villqge communities had already begun. The introduction of
zamindari and Ryotwari system dealt a death blow to the corporate life of villages.
Several attempts were made later to revive the local bodies. The Royal Commission
on Decentralisation made various recommendations in this direction. Under the 1919
(Dyarchy Act) local self-governments was made a transferred subject since the
acceptance of Mont-Ford reforms (1935) there were a stream of legislations relating
to village panchayats all over the country. Thus during the freedom movement
establishment of self-governing institutions of the grassroots level formed a part of
nationalist ideology. Mahatma Gandhi observed 'my idea ,of village swaraj is that it
is a complete republic independent of its neighbours for its own vital wants and yet,
interdependent for many others in which dependence is necessity.' Gandhi's idea had
a pervading effect and this was reflected in the Constituent Assembly debates too.
Though the draft of the Constitution did not make any reference to village as units
of self government, there were many in the Assembly who felt that the villages
' '

should play an important role in economic and social development. After

considerable debate and discussion, Article 40 was incorporated in the chapter on the
Directive Principles of State Policy. This Article calls upon the state, 'to take steps to
organise village panchayats and endow them with such.powers and authority as may
be necessary to enable them to function as units of self governments'.

The adoption of planning as a strategy for development required secu~ing

cooperation of the people in rural areas to implement development programmes. The
Community Development Programme was initiated in the country in.October, 1952,
Development blocks were established with limited staff and funds. The aim was
coordinated development of the area with the help of a n extension organisation
consisting of technical specialists working under the leadership of Block
Development Officer. At the grassroot level there were multipurpose workers. The
finances were made available on the basis of matching contribution from the
community. The intention was to use limited government funds to stimulate action
for self help. Advisory committees were wnsi#l;ted fpr every block for advice on the
i
allocation of funds for development programmes. T o review the working of
Community Development Programme, the Committee o n Plan Projects constituted a
team to study the programme and to report on the content and priorities of the
programme to ensure greater efficiency in their execution. The Panchayati Raj in
India, is broadly based upon the recommendations of this committee popularly
known as Balwant Rai Mehta Committee named after its chairman.

The Committee which went into detail felt that the Community Development
Programnie could not make appreciable progress a s the bodies neither had durable
I .
strength nor necessary leadership. They felt that these institutions should have
representative character if they have to make any programme. The Committee
.believed that so long a s we &,.not discover o r created representative and democratic
institutions aqd kri'dow them w l h , adequate powers and finance, it is .difficult to
evoke local iiterekt and local initiative in the field of development. With this basic
promise, the team made a large number of recommendations which formed the basis
for the establishment of three tier structure of Panchayati Raj in 'the
country. The team felt that-the district was too large and the viilage too,small to be
a udit of planning and development. For development work, therefore, a new local
body, with the territorial jurisdiction larger than the village and smaller than the
district should be created, if opted in favour of a block, in preference to district.
The. experience of community development influenced the team to favour the block.
i
The block offered a n area 'large enough for functions which the village panchayats A
would not perform and yet small enough t o attract the interest and service of the t

residents'. If recommended establishment of statutory bodies called panchayats

.sakiti$ for each block. Below the samiti, a village panchayat at the village and above
the samiti, a zila parishad for each district was recommended. The team felt that the
village panchayat should be constituted with directly elected representatives whereas,
samitis and zila parishads should be constituted with indirectly elected members. If' it
42 is accepted in principle that the executive and deliberative functions should be
,-..
\\ ,?
 -
separated. In its vlew, samiti should be responsible for developmental functions and Pancbayatr R 4 (Rural Uevelopqnt)
zila parishad for coordination and supervisory functions. It recommended a three tier
............It made several recommendations about the constitution, internal
organisation, functions, financiers, staffing pattern as well as the arrangements for
control over these institutions.
Most of the state government accepted the recommendations of the Balwant Rai
Mehta Committee and PRIs were established. Andhra Pradesh and Rajasthan were
the first to establish them in the country. The structure of Panchayati Raj that
emerged in the states is substantially in tune with Balwant Rai Mehta team
recommendations, though there are differences from state to state. The Government
of Mahara~htra,however, appointed a separate committee with V.P. Naik as
Chairman. Based on the recommendations of the Naik Committee a three-tier
structure of Panchayati Raj was established In Maharashtra and Gujarat. In these
two states, district instead of block, was considered a suitable unit for development.
Therefore districts were established as units of planning and development and samitis
were t o function as the extended arms of zila parishad to implement rural
development programme. However village continued to be the basic unit of
Panchayati Raj.
In the country, thus two distinct patterns of Panchayati Raj have emerged. The first
was the Andhra-Rajasthan pattern where block was the unit of planning and
development. The second pattern is called Maharashtra pattern-in this the district is
the unit of planning and development. Between these two patterns, variation in the
structure of PRIs in different states exists regarding their constitution, powers,
functions and size.

, In the mid-sixties. PRIs started facing various problems, as a form of local

government, it fell out of favour everywhere. There were various factors for their
limited success. The new national and state level political leadership which emerged
around 1966 had much thinner links with the ideals of Gandhi and thus much
weaker commitment to panchayati raj. Another reason was the mounting food
shortage of this period whlch led to a reshuffling of priorities in the community
development programme. More emphasis came t o be laid on agriculture and on
centralisation during this period, relegating the PRIs t o a lower status. Backed by the
new technology, the central government launched various rural development
programmes, as a result independent administrative hierarchies were created at the
local levels. Several commissions and committees for reviewing and recommending
reforms to strengthen Panchayat~Raj were appointed. The committee of f'anchayati
Raj appointed by the central government under the chairmanship of Shri Ashoka
Mehta in 1978, is very important as it reviewed the system in different states and
recommended a different structure of Panchyati Raj.
The most significant recommendation of the committee is for the creation of a two-
tiered system of Panchyati Raj. It regards the revenue district a s the first point of
decentral~sationbelow the state level. Zila Parishad was envisaged as the executive
body. According to the committee, model panchayats would alone be able to ensure
imbalance between technological requirements and possibilities of popular
participation In decision making. As regards taxation, the committee wanted the
PRIs to have 'compulsory powers of taxation' to mobilise necessary resources. A
remarkable feature of the Committee is its recommendation favouring 'open
participation' of polltical parties in panchayati raj affairs. It also made an interesting
recommendation regarding the creation of monitoring fora to safeguard and promote
, the interests of the vulnerable soc~aland economic groups in the villages. It
suggested a regular social audit by a district level agency as well as by committee of
leg~slatorsto check whether funds allocated for these groups were actually spent o n
them. The committee treated rural developmept as a part of the urban-rural
continuum and therefore argued for the provisions of urban amenities. Thus the
committee enunciated what it called a 'new approach' towards panchayati raj. This
1 was 'the formulafion of structure, functions and the utilisation of financial,
t administrative and human resources of PRIs should be determined on the emerging
functional necessity of management of rural development.'
I
Despite these efforts the state government have not been very equitable in their
policy Interventions: Case Studies relationship with the PRIs. The financial relationship developed between them have
been meagre and measly. Elections to these bodies have been repeatedly postponed.
Suppression of locd bodies has become a common phenomenon. 'The state
governments have not so far shown much enthusiasm for PRIs. Moreover the centre
also has been reluctant t o share the power with the local levels. T o understand the
present and future policy of government towards PRIs, it is essential that w, a r t
aware of the problems in their functioning and the kind of efforts needed to solve
them but first we will throw light on the structure and f~mctionsof PRIs.

26.3 STRUCTURE AND FUNCTIONS OF PANCHAYATI

RAJ INSTITUTIONS
The Panchayati Raj system in India was initiated in India t o provide opportunities
for the emergence of democratic leadership and growth of democratic
decentralisation, to realise the values of participatory democracy, to serve as an
instrument for rural development and modcrnlsation and to bring the decision-
making authorities nearer t o people.

To achieve these objectives, as w; have already discussed, the Balwant Rai Mehta
Committee recommended a three-tier structure of Panchayati Raj, while in 1977 the
Ashoka Mehta Committee came up with the suggestion of establishing a two-tier
structure of PRIs. Since Independence, we find that there has not been any
uniformity in the structure and functions of PRIs taking into account the need for
local adjustments. The tally of three and two-tier system is as follows :
Three-tier : Andhra Pradesh, Bihar, Gujarat, Himachal Pradesh, Maharashtra,
Rajasthan, Tamil Nadu, Punjab, Uttar Pradesh and West Bengal.
Two-tier : Assam, Haryana, Karnataka, Madhya Pradesh, Orissa
In some states Zila Parishad is very strong and overshadows the panchayat samiti, in
some states zila parishad has only advisory functions.

The broad structure of PRIs could be a three-tier structure with zila parishad at the
district level, panchayat samiti at the block ievcl and gram panchzyat or the village
panchayat a t the village leve!. lr. some states? nysya panchayats o r !udicial
panchayats exist t o provide quick and'ir:dependcnt jvlstice !o villagers with regard t o
snlall and less intense crimes, their term and jurisdiction varies from state to state.
Some states have gram sabha, it can be a statutd1.y or. ron-statatory body. The broad
structure of PRIs will become clear from tile chart given heizw.

As far as the functions of PRIs are ccncerned, t'ley vary frvm state to state
depending on the nature of structure adopted and 1c;cal variatic~r:~ and requirements.
A broad list of functions c;in still be given. The Gram sabha icmprises the \rotes.of
the village, it considers the annual report and budget of thc gram panchayat and
programme of work for the ensuing year. The gram panchayat looits into activities
relating t o sanitation, warrr supply, construction, maintenanct. of roads, bridges,
drains, establishment and maintenance of hospitals, promotion of agriculture. cottage
industries, provision of' schools, libraries, preparation of village plans etc. l'he .
panchayat samiti deals with planning and execution of development programrues
concerning agriculture, animal husbandry? irrigation, ed~icar~c-in, health. sanitati~rn,
inter-village comn~unicatior~ and social welfare. It also prifhrnms thc f~lnctions
assigned by the zila parishad and state government. It coordinates and supersrises the
functioning of gram panchayats.

The zila parishad in states where it has only advisory ful;ceions, advise government
on development scheme, classify markets, roads etc., advises, supervises arid
coordinates functions of samitis, approve samiti budgets, advises government o n
development activities and performs such other functions as gove:ninent may entrust.
In some states it deals with distribution of grants among samiti. In states where it is
more powerful and is entrusted with execu!ive functions, it deals w ~ t hactivities
related t o maintenance of schools, provision of grants, distribution of fertilisers,
preparation of district plans, constmct!on o i roads, mainreniincr and management cf
hospilals, watcr supply, rural broadcasting, rural housing, upliftment of backward Panchayali Haj (Rural L)rvelopment)
cla$ses etc.

Thus we see that there is lot of overlapping in functions of the institutions at local
level. This has worsened due to the inception of various anti-poverty programmes
which have created new hierarcl~iesat these levels. This is just one of the list of
increasing problems 0:' PRIs, we will now focus our attention on them.

Check Your Progress 1

Note: i) Cse the space given below for your answers.
ii) Check your answers with those given at the end of the unit.

1) Throw light on the recommendation of Ashoka Mehta Committee o n

Panchayati Raj.

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2) Discuss the structure and functions of P H s .
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26.4 GOVERNMENT'S POLICY TOWARDS

PANCHAUATI RAJ
26.4.1 Problems in the Functioning of PRIs
1 here are a number of problerris faced by the Panchayati Raj Institutions. We will
now discuss them brietiy.

i) Conceptual Confusion

i t is said that basica!ly there is lack of clarity regarding the concept of Panchayati
Raj and about the objectives for which the institutions have been established. Over
the years tile concept has undergorle some changes. Let us analyse the probiem in
some detail. In the first instance, the concept of Panchayati Raj is very narrow as it
was not v~ewcdas ari institutionai framework which could play an important role in
the ovtrall development t,f rural masses. The present concept does not envisage even
a single unit of PRIs as an instrument of planning as well as implementation agency
of different rural developinent programmes. There are many agencies in the rural
scene that are t-ngaged in cievelnpineni activl!ies: there is no clarity about the role
that PRIs sheulc! play. i'Kls are still dominated by the people belonging to higher
castes. Tha: is why the benefits d o not reach the needy ones. Finally there is no clear
trend emerging in regard to the concept of power. There is a strong feeling that
decentralisation of power and authority exists at the district level and down the lines.
But at the same time, a number of central schemes and agzncies, both in number and
size have been emerging. These agencies are independent of PRIs leading to
increasing conf?ict in their working. This trend has to be checked.

ii) Structures

While establishing PRIs, no uniform pattern is adopted for creating units and
identifying the unit of planning and development. This may not be a cause for failure
''
but structures that nave been adopted by various state governments are just not
capab!e of performing the role that is expected of them. The distribution of functions
- 45
Pdicy lntervclltioas: Care Studies and power a) among the PRIs b) between PRIs and state government and c) between
PRIs and Central government have not been made on the basis of any sound
principle. There is a great deal of confusion, overlapping and sometimes duplication
in the function. The expertise available to the PRIs .I very limited particularly in the
fieId of planning, implementation or monitoring of various developmental schemes.
Planning at the grassroot level remains o n paper while there is a strong tendency
towards centralisation in the country.

iii) Financia1 Resources

The most important problem faced by the PRIs is regarding finances. It is needless
to mention that the quality and variety of activities which the PRIs are expected to
perform will depend mostly on the resources at their command. The resource base
depend o n the local economy and partly upon the allocations made by the state and
central governments. As things stand today, the local economy is very weak. It
means, the PRIs have a very limited scope t o improve their jurisdiction. In India,
there is centralisation of revenue resources which is a bone of contention between the
centre and states. Similarly the financial system in state is also of.the same nature.
The PRIs have to look t6w'ards the higher authorities for necessary grant. There is
thus a real danger of imbalance betweeh resources and responsibilities, more and
more functions are being transferred t o the PRIs. The centre o r the states are not
coming forward with the same vigour for transferring resources proportionately.
Thus most of these bodies have t o function in an atmosphere of lack of resources.
The states h,ave an agency through which they get their statutor) A r e in revenues
which they get as a matter of right. The PRls on the other hand, d o not get any
share from the state shares, whatever amounts they receive from the state are largely
discretionary in nature.
Socio-economic and Political Conditions

The existing socio-economic structure of the Indian society is a major factor which is
responsible for the limited success of PRIs. It is proved beyond doubt that the elected
members a t all the levels of PRIs and the office bearers are normally from the rich
dominant sections of the rural society. They have vested interests in preserving the
existing system and would not d o anything that would strengthen the position of the
downtrodden in their areas. Thus the leadership of the PRIs does not let the benefits
flow to the weaker sections of rural areas. Although reservations of seats at the
different levels have been made in some states but the reservation concept has not
been effectively adopted. It means there is no possibility of mass participation of the
poor in the developmental process in our hierarchically stratified society where the
weaker sections are almost completely unorganised. The concept of participation of
people in the process of democratic decentfalisation is highly d~fficultunder such
conditions. The instances of the poor participating in developmental activities are
very few.

Position of Civil Serivce

An efficient, adequate, responsive and committed administration is the essential
condition of success of Panchayati Raj. The functions of these bodies are too many
and too complex. There is a need for expert technical personnel, proper orientation
and commitment in the civil service. The aspirations of the citizens in the rural areas
are getting stirred. There is a demand for improvement in the services. We find a
different and a difficult situation as far as civil services in India is concerned. The
bureaucracy is getting alienated.Severa1 programmes have been introduced without
i n v o l v i ~ gPRIs in them. These programmes have become close preserves of
bureaucracy, undermining and frustrating the PRIs as units of representative bodies
and local self-government. As we know the head of the district council is an officer
from All India Service i.e.. IAS, who is assisted by other officers belonging t o the
state cadre. A number of studies have pointed out the strained relationship between
the bureaucracy and the elected members of PRIs. It is seen that there is an
atmosphere of mutual suspicion instead of mutual faith. The bureaucracy feels that
the grassroots political executives try to strengthen their vested interests by breaking
rules and regulations, while the members of the PRIs dislike the superior status of
the civil servants. It is aIso pointed out that the officials are always loyal to their
instance, the ambiguity about the place of administration makes the official and staff Panchnyati Raj (Rural Development)
feel that they are primarily responsible to the state government and not to the local
elected members. Secondly, the plans and programmes implemented by the
administration come from above. The intervention of PRIs is not taken very kindly
by the civil servants.

Lack of Political Support

The ~ l i t eand the so called higher levels generally d o not provide political support to
strengthen the democratic process at the grassroots levels. T h e members of parliament
and state legislatures live in constant fear of Panchayati Raj domination,they are
apprehens~veabout the emergence of Panchayati Raj leadership. Therefore, every
effort is made by the state and central leadership to weaken the powers and
functions of the grassroots*leaders.
State Control and Supervision
Since the Panchayati Raj Institutions fall under the state subject and are created by
the state there exists a superior-inferior relationsh~pbetween the state and PRIs. The
state governments always tend KO exhibit a high degree of paternalism. There is on
the one hand a commitment for decentralisation of power and on the other, there is
suspicion and fear that such power would be misused by local bodies. As a result, a
number of checks have been envisaged by the states in the statutes themselves. The
control exercised by the state over PRIs is of a comprehensive character. There is
practically no subject relating to PRIs over which the state cannot exercise powers of
control. With the result, several states discovered a number of problems, real o r
imaginary, like structural weaknesses, organisational shortcomings, functional
deficiencies, inept performance, lack of adequate resources etc. As an a d hoc
measure the PRIs have been either suspended or superseded and quite often elections
were deferred after the expiry of the term. On a number of occasions, an
inconvenient office bearer is either suspended or dismissed by the state government
under some pretext o r the other. Thus several shortcomings have been highlighted
and listed out by the states. It has become a regular feature in all the states and it
needs corrective measure.

Absence of Statutory Provision

The success o r failure of an institution depends mostly on the status, o n the basics of
which an organisation is established. According to Article 40 of the Constitution,
"The state shall take steps to organise village panchayats ....". Since it is included in
the Directive Principles of State Policy (Chapter IV) it is not mandatory. It means the
states may or may not constitute the PRIs. Similarly, in a number of states, elections
have not been held regularly. The superseded.bodies have not been revived and they
were kept under the charge of special officers drawn from the civil service. Thus, the
PRIs have been undermined with several constraints, particularly the constitutional
constraints.

A lot needs to be done t o tackle these problems. Our policy relating to PRIs should
focus o n identifiying and rectifying these problems. Some efforts are being made and
more need to be made t o correct the lapses, let us have a look at them.

26.4.2 Efforts to Revitalise PRIs

It would be wrong t o conclude that the PRIs havc failed completely and that they
have no future. It is a well established fact that there is no substitute for democratic
decentralisation. As a matter of fact the PRIs have not been given a chance to serve
as a vanguard of development in the rural areas of our country. With necessary
corrective, the basic objectives could be achieved without much of a difficulty. Lot of
steps have already been taken t o revitalise PRIs. We will now discuss the measures
that would be or have been adopted t o strengthen the PRIs.

Conceptual Clarity
The first important aspect that needs immediate attention is that of evolving a
comprehensive concept of Pachayati Raj. Its goals and functions have to be clearly
defined. Firstly, the PRIs should be treated as the basic units of self-government. It
implies that there is a need for decentralisation of administrative and political power.
This would encourage self governance and mass participation in its working.
Secondly, the PRIs have t o contribute towards strengthening of the planning process
Policy Interventions: Case Studies at the micro level as well as overall development. Finally the members of the weaker
sections should be given a chance t o reach the highest level of decision-making
bodies.

Protection of the Poor

In addition t o conceptual clarity, it is necessary t o strengthen the condition of the
poor to protect them from the rural rich and their dominance of the benefits of the
PRIs have t o reach the poor and if the poor are to be associated with the PRIs, it is
necessary to strengthen their position by adopting certain measures. It is necessary to
identify the areas of dependence of the poor and find measure t o stop exploitation,
streamlining the public distribution system, social security measures, employment
p a r a n t e e schemes, organisation of the rural poor are so- of the measures which
could be mentioned in this context. In addition, redistribution of assets in favour of
the poor by implementing land reform laws and creation of assets for the poor could
be another set of measures which would go a long way in preventing dependency of
the poor on the rural rlch.

Awareness among Panchayati Raj Functionaries

It is generally realised that the Panchayati Raj functionaries d o not have sufficient
knowledge about their new role. They are ignorant of several aspects of Panchayati
Raj system. It is,therefore, necessary t o provide an opportunity t o them t o know
about the Panchayati Raj Acts, the objectives and role of PKIs, the rural situatio.~,
possible areas of growth and minimum spills of planning for overall development of
their respective areas. It is nocesary to train them so that they could perform their
functions effectively. This would also help them t o minimise the citizen's apathy
towards the PRIs activities.

Financial Support
There is a need for sound financial base for PRIs. The establishment of a Panchayati
Raj Finance Corporation could be the first step. Enlarged tax jurisdiction,sharing of
revenues from selected state taxes and grants are the other possible alternatives to
achieve the long-term objective. However, there is a growing demand for an
institutional arrangement through which the distribution of the finances among the
PKIs have t o be made without further delay. A rational redistribution is necessary.
As per the I985 Act, the statc government in Karnataka has to organise a state
finance commission to work out the distribution of finances between the state and
the PRIs. This step would go a long way in solving the financial problems of the
PRIs. Along with this, the PRIs should also keep tapping its own resource base.

Integrated .4drninistrative Structures

There is neeti forrenlodelling the admiriistrative organisation of PKIs. It is necessary
that all the officials whose funct~onshave been shifted t o PRIs have to be placed
under the respect~ve~nstltutions.It-calls for a separate service called Panchayati Raj
Service. The PRIs should be provided with necessary administrative help which has a
prlmary loyalty towards them. The concept of specialisation should be introduced so
that the technical needs of DRIs could be Get without any problem. Appropriate
measures should be taken to protect the civil servants from undesirable political pulls
and pressures. An integrated administrative structures, thus becomes very essential.

Provision for Constitutional Status

It is observed that the states are not Gery keen to organise PRIs as they are not
prepared to share power with so called lower local bodies. In fact, some critics
pointed out that some state governments have grabbed the power back from PRIs
gradually. Several committees and commission, appointed by the state governments
from time to time highlighted the deficiencies in the functioning of PRIs. It is also
felt that the PRIs in the coming years sllould be well equipped t o manage democratic
setup under the changing conditions in all spheres of rural life. Realising the need to
restructure and revitalise these bodles the govcrllment came forward with a proposal
to amend the constitution. We will study about thls bill in our next section.

26.5 RECENT DEVELOPMENTS

48 These days more and more emphasis is being laid on the need for democratic
 decentralisation. PRIs have to be empowered with more resources and ?utonomy. Panchayati Raj (Rural Development)
The 64th Amendment Bill is a positive step in this direction. The Bill proposes, inter
alia to:

a) make it obligatory for all states to establish a three-tier system of panchayats a t

the village, intermediate panchayats and district levels; however, states having a
population of less than 20 lakhs would not be obliged to establish panchayat at
the intermediate level;
b) provide for all seats in panchayats at all levels t o be filled by direct election;
however the state legislatures may provide for the representation in panchayats
without voting rights of members of the House of People and the legislative
assembly, and chairpersons of panchayats vote the immediately lower level;
c) provide for reservation to ensure the due representation in the panchayats of
the scheduled castes, the scheduled tribes and women;
d) ensure a fixed tenure of five years for the panchayats. However, if a panchayat
is dissolved before the expiry of its term provision is made for the conduct of )f
F
elections within a period of six months of the dissolution to reconstitute the
panchayat for the remainder of the term;
e) provide for dissolution by the state legislature of powers and responsibilities
upon the panchayats with respect to the preparation of plans for economic
development and social justice and for the implementation of development
schemes;
f) provide for the sound finance of the panchayats by securing authorisation from
state legislature for grants-in-aid t o the panchayats from the C ~ n s o l i d a t e d
Fund of the State as also assignment t o o r appropriation by the panchayats of
the revenues of designated taxes, duties, tolls and fees;
g) provide for the constitution of Finance Commissions in the states every five
years to review the finances of panchayats and recommend principles on the
basis of which state legistature may determine the taxes to be appropriated by,
o r assigned to the panchayats, as also grants-in-aid to the panchayats from the
Consolidated Fund of the State.

h) vest in Election Cornmission the sup~rintendence,direction and control of

elections t o the panchayats a t all the three levels; and
i) empgwer the Comptroller and Auditor General of India to cause the accounts
of the panchayats audited in such a manner as he may deem fit.

Thus this bill proposed to ensure ade,;uate powers and resources 1.0 panchayats, and
streamline the three-tier structure, the election procedure, tenure fixation, audit
system and participation of PRIs in development schemes. The then ruling party
hailed the bill as a revolutionary act to enshrine 'democracy at the grassroots in the
1
i
constitution t o strengthen the foundation of Indian democracy, and t o give power to
the people and thus free grassroots democracy of the vice-like grip of the
powerbrokers, the middlemen and the vested interests.
I
i
I
r The bill raised a lot of controversy, t o many observers, the bill was nothing but a n
election gimmick. The so-called constitutional protection of PRIs came to be revived
as a subterfuge for establishing an authoritarian system. It was pointed out that the
slogan of "all power to the people" would be meaningless unless there is a n
apporopriate distribution of powers a t various levels. Unless there is adequate
devolution of power to the states and political stability at the state level, the
instability syndrome will get transmitted t o the PRIs as well. It has also been aigued
that the proposed measure would d o further damage t o the already damaged Indian
federal policy by the virtual central take over of panchayati raj. The Bill has taken
Panchayati Raj out of t h e state list and put it in the concurrent list so as t o allow the
union government t o pass legislation in this area. The provision of holding
panchayat elections under the supervision of the chief election commissioner, and not
under state government, once again gives more powers to the Union government.
The provision of providing finances to panchayats through the finance commission
 " .

Policy Interventions: Case Studies dismissing panchayats will not vest with the governors, which also would increase
central control over panchayat bodies. Finally, the provisions like 30 per cent
representations to SC/ST, women, etc., which are decided at the centre without
consulting state governments is another encroachment on the powers of state
governments. Thus the bill to a great extent empowers most powers to the centre.

Besides this, there have been other developments. Karnataka ushered in a new era of
democratic decentralisation with the establishment of Zilla Parishads (ZPs) and
Mandal Panchayats (MPs) in 1987. These institutions came into existence as per the
Karnataka Zila Parishad, Taluk Panchayat Samiti and Mandal Panchayat, and
Nyaya Panchayat Act of 1983. The official machinery is headed by the Chief
Secretary who is a n officer drawn from IAS cadre, and invariably senior in the rank
to the Deputy Commissioner of the district. The Z P has a planning cell headed by
Chief Planning Officer. The Z P maintains a cadre for manning the ZP and MPs. It
formulates district plan, frames and approves its budget and approves the budget of
MPs. The government provides grant t o ZP which will be shared among the Z P and
MPs. This grant is intended to enable these institutions to take up development
activities of their choice. The Act provides for constitution of a Finance Commission
once in five years to determine the principles on which the resources are to be shared
between state government and PRIs. Likewise, Kerala initiated a scheme of
. decentralisation in administration and planning in 1990 under the Kerala State
District Administration Act, 1989. District Council, a n elected body with
membership ranging from 20 to 40 at the rate of one member for every 50,000
population, was established for each of the Districts. The members of the Council
elect a President and Vice-President amongst them. Government have endowed these
Councils with substantial powers by transferring several functions of the state
government. The District Collector is the ex-officio Secretary of the Council. A
Finance Commission has been appointed t o go into the problem of income and
expenditure in respect of Councils and make recommendations to the government
regarding the pattern of assistance to District Council and the principles which
should govern the grants-in-aid.

A notable development in 1991 was the introduction of two Constitution

Amendment Rills (Seventy second and Seventy third) in Lok Sabha on 16thth
September, 1991. These b!lls are aimed at revitalising the PRIs and urban local
bodies in the country. The Seventy Second Amendment Bill proposed to add a new
part relating to panchayat in the Constitution to provide for among other things,
gram sabha for a village or group of villages, constitution of panchayat samiti at
intermediate level, direct election to all seats in the yanchayat and reservation of
seats for SCs and STs.

Certain salient features of the Bill are:

i) a fixed tenure of five years for panchayats and hoiding elections within six
months in the event s f supersession of any panchayat;
ii) d~squalificationsfor membership of panchayats;
i i ~ ) devolution by the state legislat~lreof powers and responsibilities upon the
panchayats with respect to the preparation of plans for economic development
and social justice and for the implementation of development schemes;
iv) sound finance of the panchayats by securlng authonsation from state
legislatures for grants-in-aid to the panchayats from the Consolidated Fund o r
the State, as also assignment to o r apprcpriation by the panchayats of the
revenues of designated taxes, duties, tolls and fees;
v) setting up of Finance Commission within one year of the proposed amendment
and thereafter every five years to review the financial position of panchayats;
vi) auditing the accounts of Panchayats;
vii) state legislatures to make provision with respect to elections to panchayats
under the superintendence, direction and control to. the chief electoral officer of
the state; and
viii) continuance of the existing laws and panchayats until one year from the
 commencement of the proposed amendment and barring interference by courts Panchayati kaj (Rural Development)
in electoral matters relating to panchayats.

Besides these, in 1985, the G.V.K. Rao Committee was set up to suggest ways for
revamping local government. The L.M. Singhvi Committee recommended a
constitutional status to the PRIs in 1986. However, the Sarkaria Commission on
Centre-State Relations (1988) has not forwarded it.

Thus, though a lot of attempts have been made in the direction of democratic
decentralisation, the results have not been very satisfactory. Actually, it has to be
kept in mind that all these efforts will remain on paper if adequate steps to
implement them are not made. A review of experience of decentralisation in
developing countries made by the World Bank reveals four main factors which affect
the success or failure of decentralisation policies. These are:
i) The degree to which central political leaders and bureaucracies support
decentralisation and the organisation to which responsibilities are transferred.
ii) The degree to which the dominant behaviour, attitude and culture are
conducive to decentralised decision making and administration.
iii) The degree to which policies and programmes are appropriately .designed and
organised to promote decentralised decision making and management.
iv) The degree to which adequate financial, human and physical resources are
made available to the organisation to which responsibilities are transferred.
In India, we have noticed that lack of proper leadership, people's participation,
finances, adequate rules, skilled personnel, degree of decentralisation have marred
the success of PRIs and sincere efforts need to be put into if positive results have to
be achieved.

Check Your Progress 2

Note: i) Use the space given below for your answers.
ill Check your answers with those given at the end of the Unit.
. 1) Thiow light on any three problems of PRIs.

2) Briefly point out the major steps needed to revitalise the PRIs.

3) What are the major recommendations of 64th Am$ndment Bill.

I ......................................................................
 2) Your answer should include the following points: Pmchayati RaJ (Rural Development)

1 Broad structure of PRIs is a three-tier structure with zila parishad a t the

district level, panchayat samiti at the block level and village panchayat at the
village level.
some states have gram sabha and nyaya panchayats.
the gram panchayat caters to the activities regarding sanitation, soil
conservation, water supply, construction, maintenance of roads, hospitals
etc.
the panchayat samiti handles the planning and execution of developmental
programmes regarding agriculture, animal husbandry, irrigation, health etc.
a the panchayat samiti also supervises the functioning of gram panchayats.
the zila parishads, in states where it has only advisory role, supervises the
work of the samiti and advices the government o n development activities.
in states where it is entrusted with executive powers, it prepares district plan,
maintains roads, hospitals etc. in addition t o its functions of advancing the
government, approving the budget of the samities and supervising their
work.
I Check Your Progress 2
I) Your answer should include any of the following points:
conceptual contusion
no uniformity in panchayati raj structures
a lack of financial resources
a conflict between the bureaucracy and heads df the PRIs
a domination of high and rich castes in PRIs.
a lack of political support
a absence of' Statutory provisions.
2) Your answer should include the following points:
need for conceptual clarity
awareness among panchayati raj functionaries
protection of the poor
provision for constitutional status
a allotment of adequate financial resources
a introduction of panchayati raj service.
3) Your answer should include the following points:
a the Bill made it obligatory for all states to establish a three-tier structure of
panchayats
direct elections to panchayats a t all levels
it provided for reservation t o ensure the due representation of SCs and S.1.s
and women
ensured a fixed tenure of five years for the panchayats
it provided for more powers and responsibilities'to panchayats with respect
t o preparation of plans for economic development
provided for cmstitution of Finance Commission in the States every five
years
Election Commission was given the powers t o hold elections at all levels
a the Comptroller and Auditor General was entrusted with the task 01.
auditing panchayati accounts.