1

DAILY
CLASS NOTES
PUBLIC ADMINISTRATION

Lecture - 65
Kautilya Arthashastra
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Kautilya Arthashastra

Introduction

❖ The book is an ancient treatise on statecraft, Political Science, Economic Policy and

Military Strategy.

❖ The book can be traced back to the 4th century BC.

❖ It is written by Kautilya or Chanakya.

❖ He was a scholar at Takshashila, teacher and guardian of Mauryan emperor

Chandragupta Maurya.

❖ Chanakya was the mastermind behind the establishment of Mauryan dynasty

overthrowing Nandas.

❖ Artha: Substance of livelihood of man.

❖ The book talks about the Science of Acquisition and Protection of Means of Livelihood

thereby ensuring the well-being of man.

❖ The administration had a two-fold aim: Palana and Labha

➢ Palana: Administration and Protection

➢ Labha: Conquest and Acquisition

❖ It is the science of dealing with the internal and external Affairs of the State.

❖ Of the fifteen Books, the first, second, fifth and sixth deal with Public Administration.

❖ The book is not a theoretical treatise, but a Practical Administration.

❖ It doesn't talk in terms of Social Contract Theory.

➢ Social contract theory says that people live together in society in accordance with

an agreement that establishes moral and political rules of behaviour.

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Idea of State

❖ The original state of nature is anarchy where "Might is right".

❖ This is similar to Matsyanyaya.

➢ Matsyanyaya: Law of the fish (Big fish eats the smaller fish)

❖ Arthashastra, while keeping the king supreme, wanted him to be responsible and

benevolent to his subjects.

Monarchy

❖ The ruler was considered to be a Descendant of God.

❖ Element of divinity was attached to the King.

❖ The King was supposed to grant favours like Indra and inflict punishment like Yama.

❖ Dvairajya: Joint rule by males of the same family.

❖ Vairajya: Rule by a foreign ruler who has seized the kingdom by force.

❖ Kautilya was against vairajya, as the foreign ruler would not have an interest in the

welfare of subjects.

❖ Therefore, Kautilya prescribed certain qualities for the King:

➢ He should be a native of the territory.

✓ I.e. modern-day ‘son-of-soil’ concept.

➢ He should follow the teachings of the Shastra.

➢ The King should be ideal.

➢ He should be trained in philosophy, economics and Dandaniti or political science.

➢ Kautilya did not want the king to be a saint or an ascetic like Plato's king.

Duties of the King

❖ The King should use his powers for the welfare of his subjects.

➢ This is also reiterated by the New Public Service Approach.

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❖ The foremost duty of the king was the protection of his subjects (natural calamities

and anti-social elements) and their property (rakshana or palana).

❖ He should ensure Yogakshema.

➢ Yogakshema: the idea of welfare, well-being, prosperity and happiness.

❖ What is good for subjects is good for the king.

❖ In the happiness of the subject lies his happiness.

❖ He must take an active part in war and the administration of justice.

➢ However, it is contradictory to Article 50 of the Indian constitution which says

that the executive should be separated from the judiciary.

❖ All appointments to important offices were made by him.

➢ However, today there is merit-based recruitment to government offices.

❖ He laid down policy and issued codes of regulation, Dharmaniyama.

❖ Dharmaniyama: for the guidance of his officers and the people.

➢ I.e. modern-day code of conduct.

❖ Development activities involved:

➢ Setubandha: building of bridges and irrigational works.

✓ I.e. focus is on infrastructure and agriculture.

➢ Vraja: providing pastures for livestock.

✓ I.e. focus is on agriculture.

➢ Vanikpatha: opening trade routes.

✓ I.e. focus is on economic growth.

➢ Khani: working in mines.

✓ I.e. focus is on mining-related activities.

❖ King was supposed to provide protection in the event of calamities.

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➢ It can be related to today's time as seen in the formation of the National Disaster

Management Authority (NDMA).

❖ King: Paternalistic rule (took decisions for others).

➢ The rollback of the three farm bills can be seen as a contradiction with this aspect

of Kautilya.

❖ King ensured the protection of social order based on varnas.

❖ Disturbance was not allowed in the varna system.

❖ One was supposed to perform duty according to Varna.

❖ Preservation of Vedic social order was the duty of the king.

➢ In today's time, the Vedic social order has been substituted by the constitutional

state.

❖ Kautilyan State was not a theocratic state.

➢ The King was supposed to be divine but he could be thrown out of power if there

is excess of maladministration.

❖ The State had to maintain minors, the aged and those in distress.

➢ In the present era, the government undertakes numerous initiatives for the

welfare of the Disadvantaged sections.

❖ The State was neither a Police State nor a Tax Gathering State.

❖ Danda: Use of force or punishment, coercive power, symbol of ruler's authority.

❖ It was necessary to prevent anarchy and protect the weak.

❖ Danda should be used with extreme restraint.

❖ The unjust use of Danda will invite Kopa.

❖ This can lead to Atusta (discontent) and Apacarita (disaffected).

❖ Kopa, Atusta and Apacarita can make people revolt against the king or join with

enemies to oust the king.

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❖ The threat of revolt places a check on the wanton use of coercive power.

❖ The ruler's authority was therefore dependent on the contentment of subjects.

❖ The king had the power to appoint or remove his ministers.

➢ Today this power lies with the Prime Minister or the Chief Minister.

❖ The king assigned tasks to ministers.

❖ The king decided on the whole administration.

❖ The ruler was supreme.

➢ In today's time, the Constitution is supreme.

❖ His subordinates were a reflection of his rule.

❖ The subjects too were satisfied or dissatisfied according to the rule of the king.

Checks on the King’s Power

❖ There were no direct checks on the king's power.

➢ Today we have the legislature, media, judiciary, CSOs, and international

organisations as a check on the functioning of the executive.

❖ The king was given training so that power could be used in the interest of subjects.

❖ The “Raj Purohit” reminded the king of his duties.

❖ The “mantris” exerted moral pressure through the “mantri parishad”.

➢ The mantri parishad of those times is not similar to the present-day Council of

Ministers.

❖ Constantly ignoring their advice could lead to revolts.

❖ Monarchy is hereditary.

➢ It was reiterated by Max Weber in his traditional leadership style and charismatic

leadership style.

❖ The rule lay with the same family.

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❖ Arthashastra also talked about:

➢ how to get rid of an unworthy son.

➢ how to murder the king and seize the empire.

➢ advice for conspirators on how to overthrow the king.

❖ This shows that the Kautilyan state was not a theocratic state.

❖ There is no mention of aristocracy or democracy.

❖ The governance system was based on “compassionate monarchy”.

❖ The king took the oath of service to people at the time of coronation.

❖ Arthashastra prescribed a daily work and routine of King.

➢ I.e. time management even before Taylor.

Summary

❖ Kautilya’s Arthashastra

❖ Idea of State

❖ Monarchy

❖ Duties of the King

❖ Checks on the Kings power

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DAILY
CLASS NOTES
Public Administration

Lecture – 66
Kautilya and Mughal
Administration
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Kautilya and Mughal Administration

Seven Prakritis/ Vital Organs of the State

❖ Also called as Saptanga Theory.
➢ Svamin: The Ruler
➢ Amatya: The Minister
➢ Janapada: Territory with people settled on it
✓ No direct reference to people
✓ (Land) Should be prosperous to pay taxes
✓ (People) Should be loyal
✓ (People) Follow the orders of the King
✓ The territory should be rich in natural resources
✓ Neighbouring States should not be allowed to become powerful
• This concept is opposite to modern times, where India is trying to improve
its relations with ASEAN, Japan, Sri Lanka etc.
➢ Durga: Fortified Capital
✓ Symbol of the defensive and offensive capability of the state.
✓ Should be fortified completely
✓ Adequate facilities for the army
✓ 4 Types Of Durga:
• AUDIK: Surrounded on all sides by water
• PARVAT: Center of hills
• DHANVAN: Lies in the Desert
• VAN DURGA: Situated in the forest
➢ Kosh: Treasury
✓ Should be well supplied.
✓ There should be a permanent source of revenue.
• E.g.- In today’s era, the service sector is acting as a permanent source of
revenue for India.
✓ One-sixth part for the King
• I.e. ⅚ must go to the State and its People.
✓ Currency and valuable minerals should be available
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• E.g.- India has a reserve of Foreign Currency Assets, Sovereign Golds,

Reserve Tranche etc.
✓ Money should be collected by just means
✓ Should be able to meet emergencies
• E.g.- Central Government released Rs. 500 crores for the Chennai Floods
for relief and rehabilitation purposes.
✓ Not the personal treasury of the king
✓ Gifts received by the King should be recorded
• Even in today's situation, the President need to surrender the gifts received
by Foreign dignitaries in an official capacity.
➢ Danda: The Army
✓ Should have a good military force
✓ Loyalty and Patriotism
✓ Contended army secret of king's success
✓ Kshatriya Varna: for martial activities
✓ Vaishyas and Shudras: can be used for military services in the case of
emergencies
• These Varna concept is not relevant in the today's context of democracy.
➢ Mitra: Ally
✓ Valuable for the ruler in times of need
• E.g.- Treaty of Peace and Friendship between India and Russia.
✓ Allies should be made on a permanent basis
✓ Breaking off relations to be avoided as much as possible
✓ No interference in internal affairs
• It is the foundation of all International Relations in the present context.
❖ Ruin of one will bring the ruin of others
➢ I.e. Even if one among the Saptang is ruined it will destroy other aspects.
❖ King most important
❖ "One wheel alone does not turn and keep the cart in motion"

Officers of the State

❖ Amatyas
➢ Ministers are appointed for ease of administration.
➢ Stands for all high offices of the state
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➢ Three grades: Highest, Middle and Lowest

✓ E.g.- Today's ranking of Cabinet Ministers and Minister of States.
❖ Mantrin: Counsellor
➢ Give advice to the king
➢ Appoint 3 to 4 Counsellors
➢ Together they form a consultative body
✓ However, the King could override the advice
✓ In today's time it is based on the contingency approach and discretion of the
Prime Minister and Chief Minister.
➢ Highest qualification required for Mantrin
➢ Below the mantrin was the mantri parishad
➢ Kautilya did not fix a number for it
➢ Their work consisted of
✓ Starting a new work
✓ Continuing already begun work
✓ Improving the work
✓ Implementation of orders
➢ Secretive nature of Mantri Parishad:
✓ Where should be the place of meeting
✓ What should be the duration
➢ Ministers who have suffered in the hands of the king should not be included in such
meetings
✓ In today's context the portfolios of the particular minister are changed in case
of underperformance
➢ Ways and means of starting an undertaking
➢ Resources required: men and material
➢ Place and time
➢ Forestalling obstacles
✓ I.e. Removing obstacles
➢ Successful accomplishment
➢ "Decisions once taken must be executed. As early as possible"
➢ However ultimate decision was with the king and this body should not be mistaken
for the modern-day cabinet.
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❖ Yukta: Head of Department

❖ Upayukta: Subordinate officer
❖ Tatpurusas: Servants of lowest category
➢ Here we can see the Weberian Bureaucracy features of Hierarchy, well-defined
structures, and centralisation.
➢ In today's time the classification of Group A, Group B and Group C in the
government offices.
❖ Yuvaraja
➢ Crown prince
➢ No specific duties
➢ Expeditions of conquest or suppress rebellion
❖ Dauvarika And Antarvamsika
➢ Dauvarika is chief of palace attendants
➢ Antarvamsika is chief of king's guards
➢ Not directly connected to state administration
✓ E.g.- The National Security Advisor (NSA) is not directly connected with the
administration of the country.
➢ They may carry out the king's daily routine when the king falls ill.
➢ Also known as Antarmatyas because of closeness to the king.
❖ Samahartr
➢ Preparation of yearly budget.
✓ I.e.- Today’s Annual Financial Statement
➢ Keeping accounts
➢ Fixed the amount to be collected as revenue under each of the seven heads
➢ Expenditure under 15 heads
➢ Modern-day finance minister
➢ Administrative in charge of the entire countryside
➢ Durga was excluded from his jurisdiction
➢ Represented king in the countryside in the event of his absence
➢ Country was divided into four divisions
✓ E.g. in today's time, Administrative Divisions are made for IAS, IPS etc.
➢ Each under an officer called Sthanika
➢ Under Sthanika were junior officers called Gopas, each in charge of 5 to 10 villages.
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➢ Gopas maintained records of all agricultural and other holdings in villages.

➢ Census record of every household.
➢ Samahartr had secret agents under him to check the activities of Gopa
➢ Samahartr used Pradestrs to suppress crime
➢ The office of Samahartr had shades of Home Minister (Modern Day)
❖ Samnidhatr
➢ In charge of stores
➢ Everything that needed to be guarded was his concern
➢ In charge of secret treasure: Used for emergencies
❖ Adhyaksha
➢ In charge of Aksapatala (record-cum-audit office).
➢ Control and regulate the working of each state department and state undertaking.
➢ Officers received assignments with specific instructions from this office
➢ His assistants were Lekhaka (clerk), Repadaksaka (inspector of coins) and
Samkhyayaka (accountant).
✓ It resembles to a certain extent with the modern-day CAG (Comptroller and
Auditor General).
❖ Antapalas
➢ Guarded frontiers of the state
➢ Stationed at forts that were constructed in all four directions
➢ Posts served as points of entry
➢ Controlled entry of men and goods
❖ Duta
➢ Not a permanent ambassador
➢ Messenger/envoy
➢ Carried out by Senapati/Yuvaraja
➢ No salary
➢ Travelling allowance
➢ Not an independent office
❖ Health Department
➢ Health department was ABSENT in Kautilyan state
➢ There is mention of army doctors who will provide medical relief to the army and
also help in fighting pandemic.
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State Service
❖ Qualities required for an Officer:
➢ Sattva: Energy
➢ Prajna: Intelligence
➢ Vakyasakti: Power of speech
❖ Tests to select officer
➢ Dharmopada: To find whether a person will conspire against the king
➢ Arthopadha: To find whether a person will conspire against the king for money
➢ Bhayopadha: To find whether a person will conspire against king if demoted along
with other officers
➢ Kamopadha: Attachment to worldly desires
❖ Those who pass the first test will be appointed as judges, the second test as revenue
officers, the third test as officers close to the king and the fourth test for entertainment.
❖ Who should not be appointed:
➢ Mulahara: Squandered (wasted) ancestral wealth
➢ Tadatvika: Spends everything that he earns
➢ Kadarya: miser who amasses wealth by causing hardship to others and himself
❖ How to get appointed:
➢ Approach the king through someone who is in the king's good books
➢ He should be prepared for an interview based on his knowledge of the shastras
➢ King's decision was final with regard to appointments and dismissals
Summary

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 1

DAILY
CLASS NOTES
PUBLIC ADMINISTRATION

Lecture - 67
Kautilya Administration and
Mughal Administration (Part-02)
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Kautilya Administration and Mughal Administration (Part-02)

Revenue Administration

❖ The state exists because of revenue.

❖ Thus “Kosh”, one of the seven prakritis, is very important.

❖ According to Kautilya, it was more important than the army.

❖ Vyayasarira: the body of expenditure

❖ Revenue in the form of tax, impost or profit

➢ Impost → Tax or Similar Payment

❖ Three means of livelihood: agriculture, cattle tending and trade.

❖ Strictly controlled by the state through Samhartr and his assistants (Revenue/ Trade)

❖ Records of agricultural holdings

❖ Records of crops grown

➢ "Written Documents" by Weber also emphasises this.

❖ Grasslands belonged to the state.

❖ Go-Adhyaksha: Superintendent of cattle, kept a record of all animals.

❖ Panyadhyaksha: Superintendent of trade

❖ Trade routes under state control

❖ Lavanadhyaksha: responsible for the manufacture, supply and fixing of prices of salt

❖ Akaradhyaksha: Highest officer in charge of the mining

❖ Lohadhyaksha: base metal manufacturing in charge

❖ Suarnadhyaksha: superintendent of gold

❖ Khanyadhyaksha: in charge of mines

➢ This shows features of Division of Work, Division of Labour and Work

Specialisation.
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❖ Functionaries in ancient India were either in the nature of corporations or officials

presiding over public boards

➢ Collegiality features under the limits of Bureaucracy.

❖ State-controlled economic life to realise the maximum possible revenue

Personnel Administration

❖ Personnel as important as the organisation

❖ Recruitment (merit-based + preference of the King)

➢ Qualification for each post was mentioned

➢ Prince should have knowledge in science

➢ Prajna (intelligence) and Vakyasakti (power of speech) necessary for state services.

➢ Tests to check integrity: Dharmopadha, Arthopadha, Bhayopadha and

Kamopadha.

➢ Ministers should be conversant with the teachings of the Shastra

➢ Minister's job only through recommendation

❖ Training:

➢ The training of the prince was mentioned extensively.

➢ Training of personnel ignored: This could be because the qualifications and tests

itself were so tough that they may have been considered unnecessary (Extensive

training given to Group B upwards)

➢ One-quarter of state revenue was to be used for payment of salaries.

➢ Salaries were to be paid liberally to prevent discontent and ensure efficiency.

➢ If treasury does not have sufficient cash then payment has to be made partly in

cash and partly in kind.

✓ In modern times, the state can go for borrowing within the limits under the

FRBM (Fiscal Responsibility and Budget Management) Act.

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➢ Land may be given but giving the whole village should be avoided.

✓ In Modern times there are Revenue Expenditures (it is maintenance

expenditures e.g.- Defence expenditures, Interest Payments, salaries and

pension of public expenditure, subsidies etc) and Capital expenditures (those

expenditures which generate recurring income for the government e.g.-

roads, infrastructure etc).

✓ Currently, there is a financial emergency in the State of Kerala.

➢ The payment was according to the job

➢ A pension scheme was available

➢ No definite rules about promotion

✓ Weber's Bureaucracy has Merit-based recruitment and promotion.

➢ Promotion was based on loyalty and the ones who will increase the state revenue.

➢ Transfer: precaution and remedy for misappropriation of funds.

➢ Tenure and removal: Will of the king.

Public Administration and Arthashastra

❖ King is the sole source of authority

❖ Principle of unity of command (Weber).

❖ The ruler is not an autocrat

➢ The ruler does not have absolute power

❖ Element of democracy: The king should function according to the satisfaction of his

subjects.

❖ Division of labour

❖ Division of work

❖ Principle of coordination: The principal coordinator was the king

❖ Job Classification
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❖ Pay structure

❖ Tests according to job

❖ Hierarchy

➢ These are principles of classical theory

Planning and Budgeting

❖ Ayasarira: different sources of income

❖ Revenue and taxes from agriculture, trade and other goods.

❖ Rigid control over economic planning

❖ The emphasis of modern planning is development

❖ In arthashastra, it was about the realisation of revenue and controlling the economic

activities.

Decentralisation

❖ Janapada contains 800 gramas.

❖ Janapada is divided into 4 divisions.

❖ Divisions were further divided into villages.

❖ Each division is under Sthanika.

❖ Gopas reported to Sthanika

❖ Gopas were in charge of 5 or 10 villages

❖ Sthanika reported to the Samahartr

❖ Pradestrs suppressed crime

❖ Gramika was the village headman

❖ The will of the village was expressed through gramavrddhas

❖ They acted as guardians and helped settle boundary disputes

❖ Power was centred around Samahartr

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❖ Top-down approach rather than bottom-up

❖ The welfare state was an idea ahead of its times

❖ King's primary duty: Yogakshema of his subjects.

❖ New villages enjoyed concessions in the initial stages

➢ During the initial period of the rolling of GST, the states were given compensation

for 5 years in case of loss of revenue compared to the earlier VAT system.

Arthashastra and Ashoka

❖ Known for good governance

❖ Public gardens, hospitals, wells, roads, educational institutions (even for women) and

monasteries.

❖ Ashoka wanted official reports to be delivered to him at any point in time.

❖ Kautilya's text influenced Ashoka

❖ Kautilya's contribution is being overlooked for Western thinkers.

What Is Arthashastra?

❖ Not a treatise on statecraft alone.

❖ Deals with subjects outside governance.

❖ Analysis of prevailing social customs, rights of women, care of the aged and helpless,

marriage and divorce, diplomacy, passports, war and peace, the army and navy,

economic activities like agriculture, spinning and weaving, artisan and taxation.

❖ How a state should be ruled

❖ Focussed on political science rather than political philosophy

❖ Political philosophy was the focus area of Greek philosophers like Plato and Aristotle.

❖ Kautilya talks about a highly materialistic world and in that sense, he is very

practical.
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❖ Some methods or practices against enemies and traitors do sound violent and

horrible but this has to be understood in terms of the time period in question.

❖ Kautilya scores over Machiavellian ideology because of his emphasis on the welfare of

subjects.

➢ Nicolo Machiavelli, an Italian diplomat said that the “Government should be like a

Centaur” (i.e. State should be both ruthless as well as benevolent).

❖ Kautilya has thought of all possible scenarios in administration and suggested

remedies for the same. For this very reason, he was ahead of his times in terms of

practical administration.

Comparison Between Kautilya and Weber

Kautilya Weber

Set In India Set In Germany

4th Century BC 19th Century AD

Traditional Authority Elements of Legal-Rational-Authority

No Attempt in Theory-building Theory-building based on Environmental

Settings

Empirical, Normative and Prescriptive Descriptive

The basis of the model is the Control The basis of the model is the Authority

Professionalism based on External Professionalism Based on Internal Sanctions

Fiats.
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❖ Similarities between Kautilya and Weber

➢ Monarchical Rule

➢ Keen on efficiency and rationality

➢ Hierarchy, defined competence, selection by merit, promotion by seniority cum

merit, compensation, training and discipline.

➢ Weber wanted separation of officials from means of administration, similarly,

Kautilya stressed on the controls and had a spy network to keep surveillance over

officials.

Arthashastra Its Relevance

❖ Arthashastra wants the ruler to:

➢ Maintain order

➢ Ensure discipline

➢ Promote justice

➢ Conducive climate to serve people

➢ Strengthen ethics, accountability and integrity

➢ Control corruption

➢ Facilitate an integrated development of socio-economic system

➢ Promote decentralised governance

➢ Encourage austerity

➢ Judicious use of coercive power

➢ Planned development of rural and urban areas

➢ Follow Raj-Dharma (Welfare)

➢ Attend to the problems of women, children and aged

➢ Offer protection during calamities

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❖ Kautilya emphasised on ethics in governance

❖ Kautilyan King is a constant learner.

❖ Art and science of combating corruption

❖ Supervising work of government functionaries

❖ Monitoring the progress of development work

❖ Tightening revenue administration

❖ Honing intelligence skills

❖ Strengthening law and order machinery

❖ Understanding the art of diplomacy

❖ Keeping foreign policy aligned with national interest

PYQ

Q- “Ethics in public services has been the central concern of Kautilya's Arthashastra.”
Critically examine the statement. (10 Marks, 2014)

❖ Ethics in public services has been the central concern

➢ Kamopadha

➢ Arthopadha

➢ The Samahatr used spies to keep a check on Gopa

❖ Not a central concern because

➢ Focus was on Yogakshema i.e. welfare of the people

➢ But it provided a violent method for the kings as well as a mechanism to revolt
and remove the King.

Q- "In contemporary times, Kautilya's Arthashstra is relevant more in the field of

international relations than in economic affairs.” Analyse the statement.

(20 Marks, 2016)

❖ In the current sense

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➢ Enemy should not take over the territory

✓ E.g.- India-Pakistan relations, Galwan Clash between India and China.

➢ Maintain Allies

✓ E.g.- India-Russia relations despite pressure from the West.

❖ Also relevant in economic terms

➢ Tightening Revenue

✓ E.g.- GST, increase in Income Tax collection, decrease in black money etc.

❖ Conclusion

➢ The relevance of Kautilya is high not only in international relations but in

economic matters also.

Q- "Kautilya's Arthashastra is theoretical work on the State and Statecraft." Comment.

(2023, 10 marks)

❖ It is a theoretical work because it focuses on

➢ Structures

➢ Division of Work

➢ Hierarchy

➢ Merit-based recruitment

➢ Coordination

❖ But it is more practical in nature

➢ It talks about materialism

➢ Does not want the king to be ascetic or saint

➢ Gives practical solution to the problem faced by the king.

❖ Thus more than theoretical it is practical in nature as it was based on norms, and
empiricism and is prescriptive in nature.

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 1

DAILY
CLASS NOTES
Public Administration

Lecture – 68
Mughal Administration
 2

Mughal Administration
Features

❖ They imported foreign elements into the administrative system:

➢ They came from Central Asia.

➢ They had their own system of administration in central Asia.

➢ This was modified once they came to India according to Indian culture and

traditions (cultural filter lens).

✓ This can be termed as an aspect of the Comparative Public Administration

➢ Perso-Arabic system in the Indian setting

❖ Mughal administration was a military system

➢ Every official was enrolled in the army

➢ Their status and pay were determined according to the Mansab accorded to them.

➢ Mansab also determined the number of horsemen (Cavalry) commandeered.

➢ They were also paid by the Bakshis or the military paymaster

❖ Centralised Despotism

➢ The king enjoyed absolute power and his word was the law.

➢ Not Kautilyan king

❖ Strong blend of religion and politics

➢ King ruled according to Islamic traditions

➢ Had to obey the Ulemas

➢ King socialised with Muslims

➢ With non-Muslims, some kings followed a policy of least interference. However,

there were exceptions to this like Akbar.

➢ Akbar withdrew jaziya (pilgrimage tax).

➢ Aurangazeb issued farmans donating land to Brahmins and Yogis

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❖ The Mughal government was a paper government (i.e. Written Document)

➢ Large territory

➢ Slow means of transport and communication

➢ No political initiative from people

➢ Multiplication of official correspondence

➢ Growth of records

❖ Combination of a Police state and Revenue collection state

➢ No interest in social progress or economic welfare

➢ Education, health and promotion of art was left to private players

➢ Only Akbar was benevolent and paternalistic.

❖ The state was an entrepreneur with an elaborate system of corporations.

➢ State maintained ‘karkhanas’.

➢ They produced commodities

❖ Administration of justice and maintenance of peace are left to the local administration.

➢ Policing in rural areas is done by local chaukidars maintained by villagers.

➢ Faujdar who was the agent of the government could not handle the large area that

was under him alone.

❖ Administration was decentralised into provincial and local administration.

➢ Villages and small towns enjoyed a certain degree of "self-government".

➢ They did not have autonomy.

➢ No political freedom

➢ Mere taxpayers

Major Components of Mughal Administration

❖ The Emperor

➢ Enjoyed indivisible and inalienable sovereignty

➢ Symbol of unity
 4

➢ Preserver of peace

➢ Head of civil and military administration

➢ Appointed and removed high officials

➢ Farmans were issued with his seal.

➢ He determined expenditure and revenue

➢ Not responsible or accountable to the people

➢ Very few abused power

➢ Despotism was covered with a veil of paternalistic benevolence

✓ Despotism means to have absolute power.

➢ Toured the country to know the pulse of the administration (cybernetic system).

➢ Carried their capital with them (not possible in modern administration).

❖ King's Council

➢ Does not bear resemblance to the modern-day council of ministers.

➢ The strength of officials is decided by the king.

➢ Advised the king but was not binding

➢ No checks

➢ Gentle persuasion and veiled warning

➢ Did not resign even if the king did not heed their advice

❖ Departments of Administration

➢ Exchequer and revenue: Under High Diwan

➢ Imperial household: Under Khan-i-Saman or high steward

✓ Personal servants of the emperor were under his control

✓ Supervised emperor's daily expenditure, food, stores, etc

✓ Enjoyed the trust of the emperor

✓ Wazirs were appointed from Khan-i-Saman

➢ Military pay and accounts office: under the Imperial Bakshi

 5

✓ Paymaster of the central government

✓ Civil officers who were also part of the military had their salaries released by

him.

✓ Assisted the king in the appointment of Mansabdars.

✓ Recruitment of army, maintenance of troops, determining the strength of the

troops, assisting the king in the conduct of foreign relations, leading the army

or a section of it and accompanying the king on tour.

➢ Canon law both civil and criminal under Chief Qazi.

✓ Head of the department of law.

✓ Responsible for the administration of law.

✓ The chief judge in criminal suits where the trial took place according to Muslim

law.

✓ Spokesman of the ulema

✓ He made religious grants and saw to it they were used for the right purpose

➢ Religious endowments and charity under Chief Sadar

➢ Censorship of public morals under the Muhtasib

✓ Regulated behaviour of the people

✓ Curbed immorality

✓ Punished those who indulged in anti-religious acts

➢ The artillery was under the Mir-Atish or Daroga-i-Topkhana.

➢ Intelligence and posts were under the Daroga of Dak Chouki.

Personnel Administration

❖ A Special class of civil servants forming the civil service was not developed by the

Mughals.

❖ Appointment, pay, removal etc took place in the context of monarchical rule.

❖ The personnel mentioned earlier constituted Mughal bureaucracy.

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❖ Heterogeneous group: Persians, Afghans, Mughals and a few Hindus.

❖ Personnel administration under the Mughals was military in origin

❖ All civil servants were enrolled in the army list as mansabdars.

❖ Mansab:

➢ Official appointment of rank and profit (Salary).

➢ To supply a prescribed number of troops for military service of the state.

➢ Only used for higher-ranking officials

➢ It was not incumbent on him to provide military service always

➢ It was rather symbolic

➢ They formed the official nobility of the country

➢ They were a combination of the army, the peerage and the civil administration.

❖ During Akbar's era:

➢ Classified offices into 33 grades

➢ There was a limit to the maximum rank an ordinary officer could hold (5000).

➢ Higher ranks between 7000 and 10000 were reserved for members of the royal

family.

❖ Appointment and removal of mansabdars entirely in the king's hand.

❖ Orders of appointment were issued by High Diwan.

❖ As all appointments, transfers and removals were made by the king he had complete

control over the administrative machinery.

❖ Most emperors believed in frequent transfers.

➢ This exists even today.

➢ If there are no transfers: It will lead to the formation of clout and thus it will lead

to an increase in corruption.

❖ No mention of training.

❖ Leave matters handled by the diwan.

❖ Diwan was responsible for granting formal leave (Rukhsat) to all higher-level officers.
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❖ Rewards, promotions and gifts of provinces for services rendered.

❖ The king promoted mansabdars on the due recommendation of the Subhedar.

❖ Each grade carried a definite scale of pay and had to maintain a certain number of

troops and animals.

❖ Each officer after inspection of their troops was given an assignment of revenue.

❖ They could collect revenue from the land.

❖ They did not own the land.

❖ Mir Bakshi passed the salary bills of mansabdars.

❖ Even though there was a specification of duty officer should be ready to discharge any

duty entrusted to him.

❖ The doctrine of Escheat:

➢ Mansab was not hereditary

➢ It was ex officio.

✓ Member because they hold another office.

➢ Jagir escheated the crown after the death of mansab.

➢ Nobles led an extravagant lifestyle

➢ Land was the property of the sovereign and its main source of income.

❖ The pension system existed.

❖ Pension was not permanent and could be withdrawn at any point in time by the king.

➢ E.g.- The old pension scheme was replaced by the New pension scheme. In the

earlier scheme, there was a fixed permanent pension, whereas in the new system,

the pension depends upon the member's contribution while in service.

❖ Pension was granted to the widow of the deceased as well as to the children.

❖ Bait-ul-mal: department that maintained the records of escheated property

❖ The Emperor conducted the business of all the departments at his own discretion.

❖ Officials exercised control over the departments at the pleasure of the emperor.
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❖ The royal ordinances had to be obeyed and this helped the king to control the

administration.

❖ Disobeying the royal order was considered as treason.

❖ Finances of all departments were under the strict supervision of the king assisted by

Diwan.

❖ Every department depended on the king for expenditure.

❖ He could make one department fat while starving the other.

❖ Mughals adhered to the principle of decentralisation.

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DAILY
CLASS NOTES
Public Administration

Lecture - 69
Mughal Administration
(Part 02)
 2

Mughal Administration (Part 02)

Provincial Administration

 Akbar organised provincial administration.

 He divided the empire into 12 divisions, later increased to 15 divisions.

 Each division was called Subah.

 The administrative system in provinces was a miniature replica of the central

government.

 Subedar was the officer in charge of the Subah (also known as Nazim).
 The tenure of the office was not fixed.

 This is a current feature of bureaucracy too.

 Subedar was responsible for

 General supervision

 Economic prosperity

 Law and order

 Defence of the province

 Administration of justice

 Helped Diwan in collecting revenue

 Maintained provincial forts

 Recommended appointments and promotions

 Thus Subhedar’s functioning was of Generalist multitasker rather than specialist.

 Second in line was Diwan

 He was not subordinate to the subedar.

 But had the same rank.

 Acted on orders of high Diwan.

 Violation of the principle of unity of command.

 Two parallel and mutually independent organisations of office (led to conflicts and

frequent transfers).
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 Duties of Provincial Diwan:

 Collection of revenue

 Keeping financial accounts

 Allotment and disbursement of salaries

 Managing jagirs of the province

 Realisation of revenue from taxes

 Appointing the Amins, Kroris and Tahsildars

 Report to high Diwan twice a month

 Reported to the imperial records office and this became the main channel of

communication between the central government and the provincial government.

 Sadar was directly appointed by the centre

 Supervision and distribution of grants

 Promotion of learning by encouraging ulema through stipends

 Looking after religious interests in the subah

 Qazi was in charge of the judicial department in the subah

 In some provinces offices of the Sadar and Qazi were merged

 Bakshi of subah was like the Mir Bakshi of the centre

 He was in charge of the military establishment of the subah.

 Looked after recruitment, organisation, discipline and efficiency of the provincial

army.

 He made regular reports to the imperial court.

 In the maintenance of law and order the faujdar was the chief assistant of the subedar.

The duties of faujdar include:

 Protect the taxpayers

 Punish the lawless and rebel chiefs

 Crush violence

 Reform the troublemakers

 Overcome opposition to revenue authorities, criminal judge and censor.

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 Kotwal was posted in the capital of provinces and other important cities
 In charge of law and order
 Security in the city
 Prevention of thefts
 Carrying out the Qazi's order
 Management of prisons
 E.g.- in today's administration the office of the Superintendent of Police shares share
equal responsibility regarding law and order with the District Collector. In Metropolitan
cities, the Commissioner of Police can be linked to Kotwal of the Mughal rule.

Local Administration

 Each Subah was divided into Sarkars.

 Each Sarkar was subdivided into Parganas or Mahal.
 Below Parganas, there were villages called Mawdah or Dih
 The land around Mawdah was clearly demarcated
 In Mawdah there were smaller hamlets called Naglah.
 Under Shahjahan's rule, his Wazir created another unit called Chakla between Sarkar
and Parganas.
 The faujdar was the executive and military head of a sarkar
 He was the direct representative of the Mughal government at the local level.
 He was appointed by the central government.
 Faujdar had military, police, executive and judicial authority.
 He had a small army to suppress rebel zamindars.
 He helped the amir in revenue collection.
 Amir was responsible for the revenue collection of the entire subdivision.
 He worked under the direct control of the provincial diwan.
 Diwan ensured that the land was surveyed, their produce correctly ascertained and
the revenue deposited correctly in the paragana treasury.
 The Bitikchi assisted the amir in paperwork.
 High Diwan → Diwan → Amir → Bitikchi.
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 He maintained the land record and sent monthly abstracts to the Imperial Court.

 The Khazandar assisted the amir in receiving money from the cultivators and issuing

receipts.

 Qazi was in charge of all religious affairs, mosques, etc.

 Paragana Administration:

 Shigdar was the executive head of the Paragana.

 He was responsible for law and order and the maintenance of criminal justice.

 He conducted census operations and helped the amir in the collection of land

revenue.

 Below him was the qanungo who was responsible for the survey, assessment and

collection of revenue.

 Qanungo was the head of patwaris of a paragana.

 Village Administration:

 It was the responsibility of the village panchayat.

 This is in stark contrast with today's era.

 It catered to the welfare of the people.

 It was a development and judicial agency.

 Appeal against the decision of the panchayats could be taken to the higher

authorities.

 The provincial government kept in touch with the villages by means of

 The faujdars posted in towns

 The lower officials from the revenue department who collected the revenue

from the peasantry.

 Visits of the zamindars to the subedars.

 Tours of the subedars.

 The Mughals according to some historians were more interested in urban life.

 However, they did take an active interest in agriculture as the bulk of the revenue

came from land.

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Law and Order

 There was an absence of the Home Minister at the central level.

 The King and his Vakil or prime minister were responsible for the law and order

administration.

 At the provincial level, it was the responsibility of the Faujdar.

 Below him was the Kotwal who appointed a headman for each mohalla (ward) to look

after the reports on the law and order situation.

 The state almost neglected law and order.

 Policing of vast rural areas was left to the locality.

 It was done by chaukidars who were servants of the village community and were

maintained by villagers themselves out of the village land or share of crops.

Revenue Administration

 Land tax was regularly collected.

 It was under the Wazir.

 Diwan and Wazir were used interchangeably by Mughal emperors.

 It is denoted by the head of the Revenue or Finance Department.

 Akbar kept rotating the office among his ministers to prevent it from becoming all-

powerful.

 When the king was incompetent, a minor or a pleasure seeker the wazir assumed the

charge of the army also.

 During Akbar's time, he had the Diwan-i-Tan (diwan of salaries) and the Diwan-i-

Khalsa (diwan of crownlands) to assist him.

 There were Mushriff (Chief Accountant) and Mustanfi (chief auditor) who collectively

acted as controllers of financial affairs.

 The wazir's office received communication from the provinces and field armies.

 Actual payments were made through Wazir's department.

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 All questions connected with the collection of revenue were decided by the diwan who

functioned under the control or guidance of the emperor.

 He inspected all the transactions and payments of all departments.

 All official records had to be sent to his office for inspection.

 It was the Public Records Office.

 He was the intermediary between the Emperor and the rest of the official world.

 Diwan submitted abstracts regarding the Finances to the King.

 He was also in charge of personnel administration.

 The administrative agency in provinces of the Mughal Empire was a miniature of the

central government.

 All provincial Diwan were directly appointed by the king and remained in constant

correspondence with him.

 Provincial diwan had to report to the high diwan twice a month.

 Revenue collection at the district level was done by Krori.

 The revenue to be collected was assessed by the amin and was to be paid to the

Fotahdar.

 Krori had to send all the paperwork to the government record office.

 The amin was placed below the Krori.

 The word amin means an umpire or trustee.

 His task was to be an impartial umpire between the state demanding revenue and the

individual Ryots paying it.

 The Qanungo was a man well-versed in the prevailing rules, laws and procedures.

 He was a village-level revenue officer who made records of landed property,

maintained registers regarding taxpayers, etc

 The Mughal state was a revenue-collecting state.

 Krori may be considered as the modern-day collector, but the former did not do any

welfare activities.
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 There was antagonism between the taxpayers and the Krori.

 The state did nothing for the taxpayer after taking the fruits of their labour.

 The welfare of the farmer was not entertained by the Mughals.

 The collection of revenue was always in arrears.

 Abwavs or illegal taxes were taken in addition to the regular land revenue.

 Lower-rung officials were corrupt and harsh.

 The post of Krori was auctioned to the person who would bring the largest amount of

revenue.

 The King and the high Diwan were kind in their treatment of the peasantry.

 The possible reasons for the poor treatment of peasants by lower officials were

 Nominal salaries

 The submissive and indifferent spirit of the people

 The custom of offering presents by lower to higher officials

 Each subordinate officer had to appease his superior in rank.

 The system of bakhshish required every beneficiary of a government decision or action

to reward a lower-level authority with a monetary tip.

 Thus the corruption in the system can be seen during the Mughal rule.

Conclusion

 The Mughal Empire failed in the 18th century – law and order weakened, and there

were rebellions, civil wars and wars of succession.

 They could not offer resistance to the British.

 The monarchy was backward in its outlook.

 The monarchy was based on the personality of the king.

 Elements of democracy were absent.

 There was no element of self-criticism or reforms.

 Mughals did not try to build a homogeneous state even though their administration

was homogeneous.
 9

 They used the same currency and same language throughout the administrative

machinery.

 Elements of personnel administration could be seen but the Mughals did not follow any

rules with regard to unity of command, job specialisation, recruitment, training,

promotion etc.

 Mughals compiled and codified all the records.

 The Mughal emperors had a department of letters, Dar-ul-insha.

 Mughals established contact between India and other Asian nations.

 The armies were vast in size and organised at both central and provincial levels.
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 1

DAILY
CLASS NOTES
Public Administration

Lecture - 70
British Administration
 2

British Administration

PYQ (Mughal Administration)

Q- "A significant legacy of the Mughal rule in India is a well-organized revenue

administration at the State and District Levels." Comment. (15 Marks, 2016)

 Introduction

 The Mughal Administration was a despotic rule and thus laid major emphasis on

the collection of revenue and had a well-defined structure for revenue

administration starting from the central level to the ward level.

 Body

 Mughal rule in India is a well-organized revenue administration at the State and

District Levels.

 The position of High Diwan, Diwan, Krori, Faujdar.

 The administration at the provincial level was a miniature replica of the

central government.

 Written documents

 However, there were many lacunas found in the revenue structure and thus it

can't be termed as well organised.

 Ignored the Welfare of the people

 System of Bakshis led to corruption

 Overlap of functions

 Less investment in revenue generation sectors

 Conclusion

 The administration of Mughals represents some features of Weberian bureaucracy

but ultimately was a hierarchical structure based on traditional paternalistic rule.

Q- Mughal administration incorporated a combination of Indian and extra-Indian

elements. Discuss. (10 marks, 2020)

 3

 Indian and extra-Indian Elements

 King→ most powerful body

 Wazir/ Diwan was close to the King

 Military/ Revenue Division

 It showcases Indian elements as even during Kautilyan era

 The King was powerful and the Raj Purohit advised the King.

 Senapati

 Samahartr for Revenue administration

 Mansabdari system which was multipurpose

 Officers themselves fight on each other

 System of Transfers

 Separation of personal and official ends.

Q- “Mughal administrative system was centralized despotism”. Comment (10 marks,

2022)

 Introduction

 Write basics about Mughal Administration

 Body

 Why it was centralised Despotism

 Primary focus was on revenue collection

 Law and Order left on the shoulder of Village

 King was not answerable to anyone

 However, there were some exceptions to it

 Akbar focussed on welfare measures.

 Largely it was a centralised rule where the focus was on the collection of revenue and

maintenance of the Mansabdari system.

 4

British Administration

The Legacy

 The administrative apparatus of the British continued to be in vogue even after

independence.
 The British brought in peace and tranquillity and provided security and protection to
people.
 They introduced the Rule of Law.
 The Indian Civil Service evolved into The Indian Administrative Service.
 Steel frame of India
 All India Service: Indian Civil Service, Imperial Police, Technical and Specialised Services.
 The All India Services were created by the Constituent Assembly and the Constitution
empowered the parliament for the creation of a new All India Service.
 Hierarchy in administration
 Bureaucratic Government
 Obey the command from the top (Legal-Rational Authority)
 Neutrality in Politics (very important in the present context).
 E.g.- V. Pandian– Odisha cadre IAS Officer
 Unified administration akin to Mughal Administration
 But the relationship between lower officials and seniors was civil.
 Authority and discretion was given to the officer in charge of the district.
 Provinces of British India were divided into Divisions, Districts and Tehsils or Talukas.
 District Officer/District Magistrate/District Collector was the pivotal figure in District
Administration.
 Most members of Indian Civil Services served as District Collectors.
 He was in charge of collection of revenue, preservation of law and order and dispensing
of justice.
 He was the “visible” part of the British administration (Visible part of the Indian
Administration)
 5

 Therefore he represented the British Government in its splendour (splendid/

magnificent), the power and privileges and the pervasiveness (spread widely).
 To date District Collector is the kingpin of the district.
 The Commissionerate system has taken away some of the sheen away from the Office
of the District Collector.
 However, the "old fashioned" District Collector will never go "out of fashion".
 We have inherited Federalism from the British.
 The Government of India Act,1935 established a centralised federation with provincial
autonomy.
 Our forefathers borrowed the elements of this Act to make India "An indestructible
Union of Destructible States".
 Bicameralism
 The Parliamentary system of Governance that we have today is borrowed from the
British.
 Credit must be given to the British for making Indians familiar with the Parliamentary
form of Government.
 Elections
 The introduction of English as a medium of instruction in Indian colleges and High
Schools slowly led to the emergence of the middle class.
 This middle class was educated, liberal in their outlook, looked towards the West with
admiration, was politically aware and pretty soon challenged the British Empire.
 But one must understand here that this was not a British initiative.
 Rather it was the repeated efforts of Indians like Raja Ram Mohan Roy that brought
in these changes.
 Growth of Nationalism.
 The British were mostly interested in promoting and learning Vernacular Languages.
 In later years the fluency in the English language or the lack of it created a divide in
the country.
 This exists to date.
 The next legacy inherited from them would be the communal divide.
 6

 From the days of partition to the current socio-political scenario in the country, the
communal divide continues to thrive.
 Corruption
 The practice of giving gifts to get work done (Robert Clive was notorious for this).
 Misusing public office for personal gain.
The Civil Service
 The British created the Civil Services to differentiate it from the Military and Judiciary.
 Covenanted (Only Europeans) and Uncovenanted Civil Services.
 Covenanted writers vs Monthly Writers (unimportant paper works).
 Robert Clive made Company servants sign covenants (agreements) that bound them
not to accept or take gifts/bribes.
 Indians received less salary - lower ranks of Uncovenanted Civil Service.
 They did not have the security of service.
Lord Warren Hastings (1772 - 1785)

 Regulating Act of 1773: Appointed Warren Hastings as Governor-General.

 "From being a brand of commercial adventurers and fortune hunters to a Public Service
in the modern sense of the word".
 EIC (East India Company) became a "government” from a “trader”.
 It began taking care of revenue administration and law and order
 The Office of Collector was created in 1772.
 Placed the District under the Collector.
 Civil and Criminal Courts were created for each District.
 The Collector presided over the civil and attended the criminal court (Mohamedan Qazi
and 2 Maulvies).
 Native police called Faujdars were appointed.
 Native ignored (Welfare ignored).
 Emergence of "Police State".
 Hasting created the Office of the Secretary to the Council of the Governor General who
was assisted by junior civil servants.
 This system was later perfected by Lord Cornwallis.
 Created boards for the department which was continued by Cornwallis.
 7

Lord Cornwallis (1786-93,1805)

 "Father of Civil Services in India".

 Liberal remuneration to prevent dishonesty.
 Tried to eliminate patronage (favouritism).
 Founded The Civil Service of India
 The district became the centre of local administration
 Collector: Revenue Collector, Judge and Magistrate
 Important offices were held under covenanted civil services
 Placed checks against abuse of power by officials
 He achieved this through the Cornwallis Code
 It covered revenue, police, civil and criminal justice but was not limited to these.
 Created a system of appeal through Appellate Courts.
 Ensured delivery of justice by establishing the Rule of Law.
 Separated customs from the revenue department
 Divested the Collector of his magisterial powers.
 Separated Judicial and Executive powers in District Courts.
 Permanent Zamindari settlement.
 Boards for military, trade, revenue and medical.
 Boards were composed of members of the Council (Governor General Council).
 He made efforts to exclude Indians from the administration.
 The subordinate post's condition remained abysmal during his tenure.

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DAILY
CLASS NOTES
Public Administration

Lecture - 71
British Administration
(Part 02)
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British Administration (Part 02)

 Lord Wellesley (1797-1805)

 Introduced training in civil services.
 Set up Fort William College for training Company's Civil Servants
 Great emphasis of the training was placed on learning the local languages.
 Office of the Chief Secretary was created in 1799.
 In the initial days trainees were nominated and not selected based on merit.
 This almost resembles the spoil system of the USA.
 Qualification was also tested through oral and written examination
 1800-1833: Expansion of Secretariat.
 1829: Lord Benthick grouped districts into Division for ease of administration,
under a Commissioner.
 Creation of new departments: Persian Department (Mughal Rule related),
Ecclesiastical-related Department (Church-related).
 1831: Civil Judicial duties were handed over to a separate Civil Judge.
 The Charter Act of 1833 tried to introduce competition in Civil services.
 It encouraged the Indianisation of service.
 Increased workload helped Indians to enter administration.
 The Charter Act of 1853 abolished the system of patronage.
 It introduced open competition and it was a result of the recommendations of the
Macaulay Committee.
 The Act also reunited magisterial and revenue functions.

Committees, Acts and Commissions

 Macaulay Committee
 The patronage system should be replaced by a permanent civil service based on a
merit-based system.
 Entry should be based on open competition.
 Placement will depend on the rank secured in the merit list.
 3

 The minimum age was 18 and the maximum age was 23.
 The examination was to be held in England (Thus not easy for Indians to enter the
service).
 Training was imparted in British universities as a result of the recommendations.
 This made it further difficult for Indians to enter the administration.
 After the training in England, the trainee was posted in India as a probationer in
a district and made to undergo district training.
 Elitism in Bureaucracy.
 Acts
 The Act of 1858 saw the conditions of civil service being defined by the Secretary
of the State.
 The Queen's Proclamation also encouraged the Indianisation of Service.
 Bureaucracy was highly centralised.
 The portfolio system (1859) introduced by Lord Canning improved the efficiency
of departments (this could be heralded as the beginning of the cabinet system).
 Work of the government was divided into departments and each person was
responsible for their department.
 1879: Statutory Civil Service was created for educated Indians.
 1/6th of the total vacancies were to be nominated from high-status Indian Families
(Elitism).
 Aitchison Commission (1886)
 He did not recommend holding competitive examinations.
 The commission supported the formation of a local civil service which was called
the Provincial Civil Service.
 The commission thought that this would satisfy local demands.
 Beginning of Indianisation of Civil Service.
 Below the Provincial Civil Service, a Subordinate Civil service was set up.
 The Commission recommended the abolishment of the covenanted civil service.
 Covenanted Civil Service was renamed the Indian Civil Service.
 4

 Uncovenanted Civil Service (Statutory Civil Service) was renamed Provincial Civil
Service.
 Three services were formed: Imperial Civil Service, Provincial Civil Service and
Subordinate Civil Service.
 Islington Commission (1917)
 Recruitment for superior posts should be made partly in India and partly in
England.
 Did not favour simultaneous conducting of exams in India and England.
 25% superior posts should be filled by Indians: Direct recruitment and promotion.
 Services under the Government of India must be categorised into Class I and Class
II.
 While fixing salary, the principle of efficiency should be maintained 2 years
probation for direct recruits, 3 years for ICS.
 By 1920 there were five methods of entry into higher civil service:
 Open Competition in London
 Separate exams in India
 Nomination in India to satisfy provincial and communal representation.
 Promotion from Provincial Civil Service.
 Appointments from the bar for posts of district and session judge.
 The Public Service Commission was created in 1926 as an independent agency to
conduct exams.

Indianisation of Public Services

 Subjects of administration were divided into central and provincial.

 Provinces could run their own administration.
 Political leadership wanted the provincialisation of civil services.
 Accordingly, the Lee Commission (The Royal Commission on the Superior Civil Services)
was appointed in 1923:
 The commission recommended the stopping of the Indian Agricultural Service, The
Indian Educational Service, the Indian Veterinary Service, the Indian Engineering
Service and the Indian Forest Service (in some provinces).
 5

 Personnel should be recruited by the provinces.

 Lee Commission made the British Medical Services accessible only to the British.
 The Commission recommended the establishment of a recruiting agency at the central
level.
 Central Public Service Commission: Set up in 1926
 Recommended the intake of more Indians to Civil Service in order to make them
"ready" for running a responsible government.
 Higher intake: Direct recruitment and promotion from provincial services.
 The Commission recommended the continuation of the Indian Civil Service, the Indian
Police Service and the Indian Medical Service.
 The void created by disbanding other All India Services was filled by the Provincial
Service.
 Federal Public Service Commission: Government of India Act, 1935.
 Public Service Commission for each province

Revenue Administration

 1765: The British got Diwani rights of Bengal, Bihar and Odisha.
 Indians collected revenue for the English residents.
 The Chief Revenue Officer's office was established where revenue collections were
compiled.
 1772: Creation of Revenue Department.
 Creation of the post of Collector in 1772.
 The district became the fundamental unit of administration.
 Collector's position kept on evolving and because of the vast territory pretty soon his
office became important as well as powerful.
 Large districts were divided into sub-divisions (Mughal legacy: Paraganas)
 The subdivision was headed by the sub-divisional officer (SDO).
 SDO belonged to Uncovenanted Civil Service (later known as Provincial Civil Service).
 Sub-division was further divided into Tehsils headed by Tehsildar.
 This too was not a creation of the British Mughals.
 Qanungo was appointed in every District.
 6

 At one point the post was abolished but was reinstated because of the Collector's

workload.

 Patwari from the Mughal era continued during British rule.

 They were appointed in every village.

 He performed the role of a village accountant.

 1781: Plan of Revenue Administration of Warren Hastings

 A Committee of Revenue was set up.

 Provincial Councils were abolished.

 Cornwallis Code separated Customs from the Revenue Department and he tried to

eliminate Patronage.

 In 1815 the Revenue Department was merged with the Financial Department.

 A New Territorial Department was created.

 The Act of 1919 put land revenue on the provincial list.

 The Board of Revenue was set up by the British; the Committee of Revenue was thus

abolished.

 Arrears increased because of the vast territory.

 The Board of Revenue had a dual role: Chief revenue authority of the province and in

a judicial capacity as an appellate court for revenue suits.

 British created the office of Divisional Commissioner (William Butterworth Bayley).

 The Divisional Commissioner (DC) supervised the Collectors.

 DC's post was criticised by the Royal Commission on Decentralisation.

 Decentralisation Commission:

 More powers of taxation to municipal bodies, election of Chairman, control over

budget

 1860: Budget introduced in India for the first time

 Financial Year from April 1

 1882: Comptroller General designated as Comptroller and Auditor General.

 Centralisation in Indian Financial Administration

 7

District Administration

 The district was the nodal point of all administrative activities.

 Important posts and offices were placed in the district.
 Division – Districts – Sub-Divisions – Tehsils – Villages
 The division was headed by the Divisional Commissioner
 District headed by the District Collector.
 Law and Order was under the District Collector who was assisted by the
Superintendent of Police (SP).
 Collector of Revenue, Records Keeper, Magistrate, Treasurer and Banker for the
government, Superintendence over police and management of jails, Disaster
Management, etc.
 He was the bridge between the masses and his superiors.

Local Government

 It was during the 19th century that the terms local government and local self-
government were used especially in those countries which were under colonial rule.
 For example, in the sub-continent, when the British Government decided to include
the Indians in the administration of the local affairs, it meant a share of self-
government for the people.
 Earlier, the term subordinate government was used to refer to the local machinery for
enforcing the laws of the realm (kingdom).
 Toulmin Smith used the term local self-government for the first time.
 In the Indo-Pakistan subcontinent, the term local government was originally used to
denote the provincial governments which were the local agents of the central
government.
 British were never interested in local administration.
 After 1764 (Battle of Buxar) the British got Diwani rights.
 As Diwan, it abolished the village land record office and created a Company official
called Patwari.
 Patwari was the record keeper for a number of villages.
 8

 They created the office of the magistrate.

 Magistrates carried out policing functions through the Daroga.
 Daroga were police officials from the Mughal time period.
 As the area of administration for Magistrate was large Darogha became a very powerful
local authority.
 Earlier Daroga functioned under Faujdar during the Mughal time period.
 The Patwari and Darogha had only one purpose: to collect revenue.
 This led to the exploitation of villagers and even famine.
 It was after 1857 that the British decided to give some importance to local
administration.
 But even then this was largely confined to municipal governance.
 As their prime interest was in trade and tax collection, village panchayats continued
to be ignored.

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 1

DAILY
CLASS NOTES
PUBLIC ADMINISTRATION

Lecture –72
British Administration
(Part - 03)
 2

British Administration (Part - 03)

Rural Government
❖ Rural self-government received a small impetus after 1857.
❖ Effort was made to organise district committees in the Punjab, but it was never
implemented down to the village level.
❖ But the committees other than supplying info to the DM (District Magistrate) hardly
did any constructive marks.
❖ Fund allocation was meagre.
❖ Other than a few feeble attempts in Madras and Bengal, District Committees hardly
approached villages.
❖ The Chaukidari Act of 1856
➢ Passed in rural areas
➢ District Magistrates appointed Chaukidars
➢ Appointed Panchayat members to collect taxes
➢ First attempt to introduce local government in rural areas
➢ However public control was less
❖ Following the War of Independence (1857 revolt) the debt of the Indian Government
rose to 98 million pounds.
❖ This became the stimulus for the introduction of local government.
❖ The then Finance Minister James Wilson decided to transfer the responsibility of roads
and public works to local bodies.
❖ The Indian Council Act of 1861
➢ First step towards decentralisation
➢ Establishment of legislative councils in provinces like Bombay, Madras and Bengal
similar to the ones in the Centre.
➢ Bombay, Madras and Calcutta enjoyed more power than other provinces.
➢ Measures of financial decentralisation were done to reduce expenditure and increase
revenue.
➢ The member in charge of the department could issue final orders with regard to
the matters of his department.
➢ Introduction of the portfolio system.
 3

➢ Each member of the Council was put in charge of one or more specific branches of
administration.
➢ This can be considered as the first step towards a cabinet system.
➢ The portfolio system ensured more responsibility on the side of members and also
greater efficiency.
✓ This is related to the Classical Theory principle of Division of Work to ensure
greater efficiency.
❖ Lord Mayo's Resolution 1870
➢ First step towards financial decentralisation.
➢ Evolved a proper system of budgeting.
➢ Provincial governments were allowed to resort to local taxation.
➢ He ordered the first census of India in 1871 which produced a general picture of
various people of the subcontinent and their population size.
➢ Transfer of certain departments (Medical, Education and Roads) to Local
Government.
➢ A statistical survey was introduced.
➢ Introduced State railways.
➢ Setting up of Department of Revenue, Agriculture and Commerce.
➢ Improvement in the sanitary conditions for the troops. This affected the lives of
villagers as most of the recruits for troops came from villages.
➢ Infrastructure development in the country, by which an immense extension of
roads, railroads, and canals was carried out.
➢ Under Lord Mayo, fixed sums were granted to the provincial government from the
central reserve for the administration of police, jails, education, medical services
and roads.
❖ Lord Ripon's Resolution of 1882
➢ Known as the Magna Carta of Local Self-Government in India.
➢ Lord Ripon: Father of local self-government.
➢ Believed in investing in local bodies and politics
➢ He believed that local bodies would become a training ground for both the electorate
and the elected.
➢ This would educate people in the management of public affairs.
 4

➢ Even though elections were in existence local bodies continued to be dominated by

bureaucrats.
✓ This criticism has relevance even today.
➢ Ripon wanted the local bodies to be strong (independent), popular and autonomous
with wide participation.
➢ Ripon felt that the Indian bureaucracy was jealous of “non-officials" a legacy which
unfortunately exists even today.
➢ Ripon wanted to use the local self-governments as a platform for the ambitions
and aspirations of the educated class.
➢ To keep official interference less he reduced the strength of officials in municipal
bodies to one-third.
➢ He wanted the chairman to be an elected non-official.
➢ All of this according to Ripon was part of the training of natives in local affairs.
❖ The popular theory doing rounds at that time was that Indians were:
➢ Indifferent
➢ Disinterested
➢ Wanted their affairs settled by govt officials.
❖ These aspects of British Opinion are similar to Douglas McGregor’s Theory X assumption.
❖ By this resolution, the central government advised provincial governments to establish
local boards at different units of administration.
❖ Taluka Board was to be established in every Taluka or Tehsil.
❖ Municipal Board in every city and a District Board in every District.
❖ Boards were to perform local civic functions.
❖ However in certain matters like fresh taxation, taking loans, selling off the property of
the board, etc the local bodies. had to get permission from the provincial governments.
(Even now local governments have to get permission from state governments in crucial
matters).
❖ In pursuance of Ripon's goals, local self-government Acts were passed in different
provinces.
❖ The Chairmen of rural bodies were almost all officials.
❖ Most of the changes recommended by Ripon met with opposition from the ruling elite
as they believed in a paternalistic rule with little or no involvement from the natives.
 5

❖ Elections too were looked at suspiciously by the rural people and therefore the idea
never caught the fancy of the locals (i.e. did not receive attention).
❖ Nominated "Gentlemen" of high social standing overshadowed the elected officials.
❖ Royal Commission on Decentralisation 1907
➢ It strongly advocated for the re-establishment of the panchayat system.
➢ Their domain of functions should be expanded to village sanitation, the construction
of minor public works, small civil and criminal cases, and the building and
management of village schools.
➢ It recommended the establishment of non-officials as Chairman for urban bodies.
➢ It emphasised the formation of sub-district boards to promote local interests.
➢ Construction of minor roads, primary education, rural dispensaries etc. were
included in their functions.
➢ The Commission advised also that half the district-level income be allocated to
subdistrict boards to run their affairs.
➢ The Commission recommended for the election of the Chairman and the majority
of the members as non-officials.
➢ Provision was made to make the district officer the constitutional head of the
district board.
➢ But except for the last recommendation none of the other recommendations was
implemented.
✓ Bureaucracy continued to dominate local bodies.
✓ Public spirit was low
• The trait of Theory X, No self-actualisation and self-esteem Needs of
Abraham Maslow.
✓ Financial inadequacy
❖ Montagu-Chelmsford Reforms 1919
➢ Reiterated the views of the Commission (Royal Commission on Decentralisation
1907).
➢ Introduced “Dyarchy” in Provinces.
➢ More Autonomy to Provinces
➢ Imparted political education to people
➢ Local Bodies should be made more representative
 6

➢ Demarcation and reservation of taxes for local bodies

➢ Made panchayats a provincial transferred subject under the domain of Indian
ministers in the province.
➢ Organisational and fiscal constraints prevented the panchayats from being
democratic and active institutions of change.
➢ However, panchayats were set up in many provinces and it was participative to a
certain extent as elections were held for provincial councils.
➢ Provincial legislatures amended the municipal acts to increase the powers and
independence of municipal councils.
➢ But they soon lost their sense of direction as communal riots broke out. This was
also because of the communal representation that the Act advocated.
➢ Municipal personnel were untrained.
➢ National leaders realised that the so-called provincial autonomy was a diversion.
❖ Simon Commission, 1927
➢ To examine the impact of the Government of India Act 1919 and the fitness of
Indian people for autonomy and self-rule.
➢ Recommended Federal type Government against a unitary one.
❖ Government of India Act, 1935
➢ Introduction of federal polity
➢ Provincial Autonomy
➢ Federal List, Provincial List and Concurrent List

Urban Local Government

❖ The present form is a British innovation.
❖ It was designed according to the type of settlements.
❖ The English East India Company was established in the year 1600.
❖ From the 1680s, traces of Municipal Administration could be seen in the Presidency
towns of Bombay, Madras and Bengal.
❖ 1688: First Municipal Corporation set up in Madras.
❖ Purpose: Transfer financial matters of local administration to the city council.
❖ There was no Indian in any of the posts.
❖ It did not prosper as people opposed the new taxes imposed on them.
❖ Royal Charter of 1720 established the Mayor's Court in Bombay, Madras and Calcutta.
 7

❖ But it functioned as a judicial body, not an administrative body.

❖ The Second Municipal Charter of 1726 established municipal bodies for Calcutta and
Bombay.
❖ It reconstituted The Madras Council.
❖ However civic administration continued to be ignored.
❖ Judicial functions predominated municipal functions.


 1

DAILY
CLASS NOTES
Public Administration

Lecture – 73
British Administration (Part 4)
 2

British Administration (Part 4)

Act X of 1842

❖ Conservancy Act X of 1842 for Bengal: first formal measure of municipal legislation,

other than the presidency towns.

❖ Town committees were established for sanitation purposes.

❖ But it remained inoperative.

Act XXVI of 1850

❖ It was drafted for the whole country.

❖ Local committees were constituted to make provisions for public utilities and amenities.

❖ Municipal functions consisted of – conservancy, road repairs, lighting, framing of bye-

laws and their enforcement by fines.

❖ It worked to an extent because taxation was indirect.

❖ By 1858 the Act was introduced in more than 300 towns and villages.

❖ But still in most of the towns the Act was not implemented.

Resolution of Sir Montgomery 1862

❖ Municipalities were started.

❖ They were informal institutions.

❖ They were responsible for conservancy, drainage, water supply, lighting, street

pavement, sanitation and the collection of octroi (tax and commodities).

➢ Octroi tax→ tax imposed on entry of goods in cities by the local bodies.

Royal Army Sanitation Commission 1863

❖ It reported on the unhygienic and deplorable condition of the towns to the government.

❖ Following this the Government authorised the provincial governors to form

municipalities.
 3

❖ For the government that was suffering from financial problems municipalities helped

in reducing this burden.

❖ This further encouraged the setting up of municipalities.

During British rule, sanitation and hygiene became a catalyst for setting up municipalities.

The other reason was the financial burden.

Resolution of Lord Mayo 1870

❖ The provincial governments were authorised to hold elections for the members of

municipal boards.

❖ Strengthening municipal institutions through the association of Natives and Europeans.

❖ Local taxation was encouraged to meet the expenditure.

❖ Municipal Acts were passed empowering the provincial governments to introduce the

elective system in the municipal committees.

❖ However, the municipalities were completely controlled by the government.

➢ Because of the presence of the District Collector. Thus true decentralisation was not

there.

❖ The candidates who stood for election were from a high class or caste.

❖ Appointments were made on the basis of social status.

❖ Reappointment was frequent.

❖ Local government thus confined itself to promulgating new regulations, collecting taxes

and above all safeguarding the British interest.

From 1882 to 1885

❖ Lord Ripon's resolution saw the passing of Municipal Acts in Punjab, Bengal And

Bombay.

❖ The Punjab District Boards Act made it obligatory to establish district boards.
 4

❖ The most remarkable innovation proposed by Lord Ripon in 1882 was the

establishment of a network of rural local bodies.

❖ The provincial legislation of 1883 to 1885 had created a 'two-tier' system, with

district boards, and sub-district boards based either upon the 'sub-division or the tehsil'.

❖ The district boards had coordinating authority only.

❖ The Resolution of Lord Ripon met with little success.

❖ The provision of a non-official as Chairman of district boards was mostly ignored.

❖ Curzon preferred centralised control to decentralisation and administrative efficiency

to political education.

Lord Ripon wanted decentralisation through Rural Local Boards, District Boards, and

Tehsil Boards but Curzon was more concerned with administrative efficiency.

Act of 1892

❖ Elevated the criteria for franchise.

❖ Increased government controls.

❖ The power of municipal boards was reduced.

Judicial Administration

❖ 1726: Mayor's Court established in Madras, Bombay, and Calcutta by the East India

Company.

❖ This marked the evolution of the company from a trading body to a ruling power with

elements of the judiciary.

❖ This marked the beginning of codified laws as the earlier system segregated justice

based on religion, caste or both.

❖ Lord Warren Hastings:

➢ District Diwani Adalat→ Civil Disputes; presided by District Collectors.

 5

➢ District Faujdari Adalat → Criminal Disputes; Assisted by Qazis and Muftis.

➢ Appeals Court under Sadar Diwani Adalat.

➢ Nominal authority of the Nawab continued.

❖ Regulating Act of 1773

➢ Created the Supreme Court that had original and Appellate jurisdiction.

➢ The institutionalisation of the civil judicial system.

➢ All judicial orders were to be in writing.

➢ Hindu and Muslim laws were compiled and translated into English.

➢ Standardisation of law led to the creation of lawyers.

❖ Cornwallis Code of 1793:

➢ Separation of revenue functions from civil court.

➢ Divested Collector of judicial functions.

➢ Created the office of District Judge.

➢ District Faujdari Courts were abolished and Circuit courts were set up.

➢ Functioned as the court of appeal in both civil and criminal cases.

➢ He established the sovereignty of laws.

✓ Law is supreme.

➢ All courts are to be headed by European Judges.

➢ Provided for a hierarchy of courts from district and city courts to provincial courts.

❖ The Cornwallis Code excluded Indians and was very racial in nature.

❖ Thomas Munro:

➢ The collector should be vested with the authority of the Magistrate.

✓ I.e. giving back the judicial powers.

➢ Reconstruction of village Panchayats.

 6

➢ Appointing native District Judges or Commissioners.

➢ More powers for Collectors.

❖ Mountstuart Elphinstone

➢ Codified the laws.

➢ Conferred to the people a share of the administration.

➢ Spreading sound education.

❖ Lord McKenzie:

➢ Primary jurisdiction of all cases except a few should be vested with Indians.

➢ Removed intermediate courts as it slowed down the judicial process.

➢ Enlarged the jurisdiction of district courts.

❖ Lord William Bentinck

➢ Circuit Courts were abolished and the powers and functions were transferred to

Collectors.

➢ Persian and Vernacular language for lower court proceedings.

➢ English for Supreme Court proceedings

➢ He set up the Macaulay Commission which gave its recommendation years later.

➢ Based on the Macaulay Commission CPC 1859, IPC 1860 and CrPC 1861 were

prepared.

✓ CPC → Civil Procedure Code

✓ IPC → Indian Penal Code

✓ CrPC → Criminal Procedure Code

➢ Indian High Court Act 1861 instituted 3 High Courts: Bombay, Calcutta and

Madras.

❖ Lord Macaulay
 7

➢ Credited with the preparation of the Penal Code of India and Codes of Civil and

Criminal Procedure.

➢ Codification of Indian Laws.

❖ Government of India Act, 1935

➢ Established Federal Court.

❖ The British introduced the concept of "Rule of Law".

❖ The British introduced the concept of "Equality before Law" with an exception.

❖ Dyarchy

➢ The Government of India Act 1919 introduced it.

➢ Provincial subjects were divided into Reserved and Transferred Subjects.

➢ Reserved subjects were under the Governor's Executive Council who were appointed

by the Crown.

➢ Transferred subjects were under Ministers who were nominated by the Governors

from the elected members of the Provincial Council.

➢ However it failed miserably.

➢ It defeated the very purpose of government: Unity of purpose.

➢ That is why it failed at the Centre also.

➢ Most important subjects were under the Reserved Category.

➢ The Governor General's word was final with regard to ‘Transferred subjects’ in case

of disputes between ministers and the governor.

Provincial Autonomy

❖ Governments in provinces were the first to evolve.

❖ Provinces were grouped with scant regard to racial, cultural or linguistic identities.

❖ Taxation and expenditure increased especially in the military which further affected

the administration in provinces.

 8

❖ The social sector remained neglected

➢ I.e. health and education.

❖ Industry and agriculture too had a similar fate.

❖ Before the revolt of 1857 no regard was given to the provinces.

❖ Revenue collection from provinces was the only concern.

❖ Post 1857 the attitude changed slightly.

❖ Indigenous institutions declined during this time.

❖ Curbs (restrictions) were made on political activities.

❖ The Portfolio System increased the efficiency of officials and this had a trickle-down

effect in provinces.

❖ The Act of 1861 brought in decentralisation and restored the powers of the Legislative

Councils of Bombay and Madras.

❖ It also created councils in other provinces.

❖ But every legislation needed to receive the consent of the Governor General.

❖ The Aitchison Commission recommended the creation of Provincial Civil Services.

❖ The Indian Councils Act of 1892 allowed provincial councils to have a majority of non-

officials.

❖ The Decentralisation Commission of 1892 recommended the reduction in government

control over local bodies.

❖ The Government of India Act of 1919 made provincial governments responsible to

popular representatives.

❖ Local self-government became a provincial subject.


 1

DAILY
CLASS NOTES
Public Administration

Lecture - 74
Philosophical and
Constitutional Framework of
Government
 2

Philosophical and Constitutional Framework of Government

 Generalist – Neutralist

 Role of Bureaucracy

 Executes government policies and laws

 Policy Formulation

 Running of Administration

 Advisory Role

 Legislative role

 Semi-judicial work

 Collection of Taxes

 Disbursement of Benefits

 Record-Keeping

 Bridge between the political executive and the masses

 Neutral Bureaucracy

 Bureaucrats are not slaves to any authority, political or otherwise.

 Should be neutral to ideologies and politics.

 If not neutral then:

 Politician - Bureaucrat - Criminal - Business Nexus

 Crony Capitalism

 Nexus between government officials and business organisations.

 3

 Double Government
 Introduced in Bengal.
 Robert Clive.
 1765-1772
 Division of authority
 Diwani: Carried out by the Company
 Diwan: Collect revenue and Dispense Civil Justice
 Nizamat: Carried out by the Nizam.
 Nizamat: Maintain peace and order, defend the territory against foreign
aggression and dispensation of criminal justice.
 The company deputed two Naibs for the Diwani.
 Only interest of the Company: Collection of Revenue.
 Company servants indulged in private trade during this time period.
 Ruined the silk industry, artisans and agriculture.
 Land was assigned to the highest bidder.
 The welfare of the peasantry was ignored.
 With the entry of Warren Hastings the Dual Government was abolished and the
Company became the de jure and de facto ruler of Bengal, Bihar and Odisha.
 Secretariat Reform
 Before 1920: Each department recruited its own staff.
 The Secretariat Procedure Committee (1919) recommended that the Government
of India make Upper Division Clerks part of the Imperial Secretariat Service and
appointed the Central Staff Selection Board for the recruitment process.
 The Committee recommended a pyramidal organisation in the hierarchical
order of Secretary - Deputy Secretary - Assistant Secretary.
 The committee recommended the abolishment of the office of Under Secretary
in the Finance Department.
 The committee recommended the continuation of the Office of Secretary and
Under Secretary.
 4

 It recommended a minimum tenure of 3 - 4 years for stability in the

functioning of the aforesaid offices.
 Recruitment was on the basis of qualifying examination and interview.
 Appointment through promotion as well, from Lower Division Personnel.
 Qualification for the lower division was decided by the staff selection board.
 Functions of the Board were taken up by the Public Service Commission in 1926.
 The Wheeler Committee (1935) was appointed to improve the efficiency of the
Secretariat.
 "The remedy (solution) does not lie in the multiplication of rules but in the
insistence on their observation".
 The Committee further recommended doing away with the process of double
noting by the Secretary and Joint Secretary.
 The Maxwell Committee 1937 recommended the "Minister Secretary" relationship
for the conduct of the Government of India Act 1935.
 The secretary was responsible to the Minister.
 1950: The Imperial Secretariat Service was replaced by the Central Secretariat
Service. This was based on Tottenham committee recommendations.
 Issue with the Secretariat functioning
 Heavy reliance on precedents.
 It is an example of the “Satisficing decision” of Herbert Simon and the
Incrementalism of Charles Lindbloom.
 Incapacity of lower officials to share responsibility.
 Excessive Record Keeping and Noting
 I.e. POSDCoRB
 Underpaid
 Corruption
 Low on energy and initiative

 It is similar to Theory X of Douglas McGregor.

 However with e-Office these issues have been addressed.

 5

Law and Order

 The Magistrate was head of the district police and was responsible for apprehending,

trying and committing criminals.

 The Indian Police Act of 1861 brought changes to this and laid the foundation for a

proper structure.

 Adding to the skeleton structure of law and order were the Indian Penal Code of 1860,

the Code of Criminal Procedure of 1861 and the Indian Evidence Act.

 Organised the Constabulary.

 The Inspector General of Police (IGP) exercised control over the entire Province.

 IGP was from Covenanted Civil Service.

 IGP: matters of general organisation and training

 Subordinate service: Inspectors, Head Constables, Sergeants and Constables.

 The earlier Darogah or station officer became Inspector after 1861.

 The district was under the SP (Superintendent of Police).

 IGP, SP and ASP (Assistant Superintendent of Police) were Englishmen.

 New role of Magistrate in District: Distribution and movement of Police, preservation

of order and repression of crime.

 Magistrate became an executive officer with control over the police.

 He retained judicial authority in the administration of criminal justice.

 The Police Act of 1861 and the Code of Criminal Procedure (1861) strengthened the

position of DM (District Magistrate).

 This was the centralisation of authority in one individual leading to despotism.

 The Police Commission wanted the DM to reduce interference in the day-to-day

administration of the police force.

 Province was divided into ranges headed by Deputy IGP.

 In today's time, the State is under the DGP and range is under the IGP
 6

 Committee further recommended

 European Service: recruited entirely in England

 Provincial Service: recruited entirely in India

 Upper Subordinate Service: Inspectors and Sub-Inspectors

 Lower Subordinate Services: Head Constables and Constables

 Most recommendations of the Commission were implemented by the Provincial

Government.

 Recruitment, Training, Organisation and Remuneration of the Police Force improved.

 1905: A new class of Indian DySPs (Deputy Superintendent of Police) were created to

perform duties similar to European ASPs (Assistant Superintendent of Police).

Analysis of British Administration

 Departments Grew

 Centralisation: Concentration of Power rather than Distribution of Power.

 Exploitation: Interested only in tax collections.

 Hierarchy

 Bureaucratic

 Corruption: Present during Mughal Era; Continued during British East India Company

rule.

 Skeletal Structure of Administration.

 Office of DC: Still the most important office.

 AIS: Covenanted Civil Service → Imperial Civil Service →→ Indian Civil Service -> AIS

(All India Service).

 Communalism

 Local government

 Women's Role: Very limited

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PYQ

Q- "The office of the District Collector admirably survived the changing times from
colonialism to present". Comment. (2022/10 Marks)

 Introduction
 Why is the office of DC important?
 DC is the kingpin of a district and resembles the Linkingpin aspect of Rensis
Likert.
 Body
 Yes it has survived from colonialism to the present.
 Position of Collector
 Responsible for Welfare functions
 In charge of Rural administration and Urban administration.
 In law and order matters, can seek a report from the SP.
 DC is a predominant point of contact when it comes to disaster management.
 No, it has not survived from colonialism to the present.
 The centralised power of the DC has been diluted due to the emergence of
the Commissionerate system.
 Notings, reportings etc have been reduced due to e-Office.
 NGOs and CSOs have reduced the workload of DC.
 Outsourcing and contracting because of NPM and NPS has reduced the
importance of the Office.
 Conclusion
 “As the good old bureaucracy will never go out of fashion”, similarly the office of
DC may lose some power but will never go out of relevance.

Q- Macaulay's ideas on the Indian Civil Service corresponded to the elite theory of
bureaucracy, which continues to persist. Do you agree? Justify. (2019/10 Marks)

 Introduction
 Contribution of Macaulay
 8

 Body
 Elite theory of Bureaucracy
 No, don't agree
 Macaulay’s Bureaucracy was not responsible to elected representatives,
media, judiciary etc
 The DC also functioned as a District Magistrate because there was no
separation of the executive from the judiciary.
 Macaulay’s bureaucracy thus acted like a despot due to the immense central
authority vested in him.
 But today
 The bureaucracy is responsible to the elected political executive, media,
legislature and judiciary.
 Clear separation of executive and judiciary.
 Today bureaucracy is more participative because people from all sections
of society are part of it.
 Conclusion
 Conclude by mentioning the role of the collector in today's era as well as their
responsibility.

Philosophical and Constitutional Framework of Government

Salient Features and Value Premises

 Introduction
 The British were only interested in “profit maximisation”.
 The British Government in India took various measures including maintenance of
peace and law and order keeping this in view.
 The 2 E’s remained their priority (Efficiency and Economy).
 A mechanistic structure of administration with little or no input taken from the
public for undergoing internal change.
 Against Systems Theory.
 9

 Any organisation or government that ignores the feedback from the public does so

at its own peril.

 This increases the entropy in the system and leads to its collapse.

 This is what happened with the British administration.

 Independent India builds their administration from this premise (context).

 The makers of our Constitution saw to it that our Country and the governance

will have everything that the British ignored.

 “Democratic Welfare State" was the focus.

 This is where the features of our Constitution become important.

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 1

DAILY
CLASS NOTES
Public Administration

Lecture - 75
Salient Features and Value
Premises of Constitution
 2

Salient Features and Value Premises of Constitution

Introduction
 The British were only interested in "profit maximisation".

 Because they were largely a revenue-collecting state.

 The British Government in India took various measures including maintenance of peace
and law and order keeping this in view.

 The 2 Es (Efficiency and Economy) remained their priority.

 A mechanical administration structure with little or no input from the public for
undergoing internal change.

 Any organisation or government that ignores the feedback from the public do so at its
own peril (own risk).

 This increases the entropy (disturbance) in the system and leads to its collapse.

 This is what happened with the British administration.

 Independent India built their premise from this maladministration.

 The makers of our Constitution saw to it that our Country and the governance would
have will be everything that the British ignored.

 "Democratic Welfare State”.

 This is where the features of our Constitution become important.

Written Constitution

 The Indian Constitution is a written Constitution like Canada, France and the USA.

 Initially Constitution had 395 Articles and 8 Schedules.

 Presently there are 448 Articles (divided into 25 Parts), 12 Schedules and 5
Appendices.

 This shows that constitution also evolves.

 A written Constitution was necessary because of our Federal polity.

 So this was a departure from the British Administration.

 "Cultural filtering lens" (Woodrow Wilson).

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Lengthy and Detailed

 It has a unique distinction of being very lengthy and detailed.

 Most of the features were borrowed from the Government of India Act 1935 and the

India Independence Act 1947.

 Both Acts were lengthy.

 Features borrowed from other Constitutions as well.

 British Constitution

 Parliamentary democracy

 A system of government in which people elect representatives to a parliament

to make laws.

 Legislative Procedure

 Mechanism of introduction of bill, passage of bill and assent of president.

 Collective Responsibility.

 Council of Minister is collectively resposible to the parliament in general and

Lok Sabha in particular.

 Rule of Law

 Equality before law and equal protection of law.

 Single Citizenship

 Cabinet System

 Prime Minister + Council of Ministers (CoM) and Cabinet Ministers are part of

CoM.

 Prerogative Writs

 Issued by Supreme Court and High Court when the fundamental rights of the

citizens gets violated.

 Parliamentary Privileges
 4

 Any act said or done by the members of parliament inside the parliament

cannot be questioned in the court of law.

 Bicameralism

 Two houses of parliament (Lok Sabha and Rajya Sabha) or State Legislature

{Legislative assembly and Legislative council (not for all states)}.

 American Constitution

 Fundamental Rights (Bill of Rights)

 Independence of Judiciary

 Judicial Review

 Judicial review is a process under which a government's executive, legislative,

or administrative actions are subject to review by the judiciary.

 Impeachment of the President

 Removal of Supreme Court and High Court judges

 Removal of Vice President

 Ireland

 DPSP (Directive Principles of State Policy)

 Nomination of members to Rajya Sabha

 Method of election of President

 Japan

 Rights and duties of People

 Procedure established by Law

 Germany

 Suspension of Fundamental Rights during Emergency

 Canada

 Federal Polity with strong Centre

 5

 Residuary powers with Centre

 Appointment of State Governors by Centre

 Advisory jurisdiction of Supreme Court

 Other aspects mentioned in the constitution

 Structure and powers of Central Government, States and Union Territories.

 Detailing out roles and responsibilities was necessary to avoid legal battles between

Centre and the states and between states. (Seventh Schedule)

 Legislature, Executive and Judiciary (Separation).

 Fundamental Rights, Fundamental Duties and DPSP (Directive Principles of State

Policy).

 Provisions for Schedule Castes and Schedule Tribes, OBC (Part XVI), Official

Language and Emergency Provisions (Part XVIII).

 Special provisions to deal with unique regional problems of some states (Nagaland,

Assam, Manipur, Sikkim and Mizoram).

 Constitutional and Non Constitutional Bodies

 Did not leave anything to Chance.

 Constitution is a product of the socio-politico situation of the country.

 It was not "Cut Copy and Paste".

Popular Sovereignity

 Governments derive their power from the people.

 Election based on Universal Adult Suffrage (Universal Adult franchise).

 All citizen of India above the age of 18 years can vote to elect their representatives.

 Executive is responsible to the Legislature.

 Will of the People is Supreme

 People have all the rights to criticise.

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 Cybernetics theory

 E.g.- Rollback of 3 farm bills.

 Open System

 Organic Structure capable of Change

 Government cannot always "play to the gallery".

 Moreover, for people's voice to be heard the quality of the elected representatives should

also be impeccable.

 The 2019 Lok Sabha has 43% MPs with criminal records (Source : Association of

Democratic Reforms).

 The average assets of the present Lok Sabha MPs stands at Rs 20.47 Crore (Source:

Association of Democratic Reforms).

Sovereign Democratic Republic

 Sovereign because India is independent in taking its own decision.

 Democratic because power comes from the people.

 Republic because Head of the State (President) is indirectly elected by the People.

Secular

 Opposite of Communal or Theocratic state.

 Pakistan has a state recognised religion.

 Secular state respects all faiths and gives freedom to practice the same.

 In Western Secularism there is complete and strict separation between religion and

Politics.

Constitution is Supreme

 Not specifically mentioned in the Constitution.

 Basic, Fundamental and Supreme Law of the land.

 All the organs (Legislature, Executive and Judiciary) are expected to function within

the boundaries set by it.

 7

 Supreme Court has been given powers to protect the Constitution.

 It therefore keeps a check on the exigencies that may be committed by the executive

or judiciary or legislature.

 It has the powers to strike down any Bill that intends to alter the "basic structure" of

the constitution.

Rigid and Flexible

 Partly rigid as it is not easy to amend the Constitution as in England.

 Partly flexible because it is not that difficult to amend the Constitution as in the USA.

 Amendment procedure of Constitution of India "Golden Mean".

 Golden Mean concept was given by Aristotle.

 Simple majority, Special majority and Special majority with the ratification by at least

half of the State Legislatures.

 The Indian Constitution has been amended 106 times as on September 2023.

 “Basic Structure” of the Constituin canoot be amended.

 Keshvanand Bharati Case 1973 gave the term "Basic Structure”.

 This was reiterated in the Minerva Mills Case 1980.

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 1

DAILY
CLASS NOTES
Public Administration

Lecture - 76
Salient Features and Value
Premises of Constitution (Part 02)
 2

Salient Features and Value Premises of Constitution (Part 02)

Basic Structure of the Constitution

 Preamble

 Supremacy of the Constitution

 Rule of Law

 Secular Polity

 Federal character of the Constitution

 Sovereignty of the Country

 Republican and Democratic form of Government

 Distribution of powers between Legislature, Executive and Judiciary

 Fundamental Rights

 Independent Judiciary

 Harmony between Fundamental Rights and DPSP (Directive Principles of State Policy)

Parliamentary/Cabinet Government

 Prime Minister and his cabinet mostly drawn from Lok Sabha (PM can be from Rajya

Sabha also).

 They are responsible for their official acts.

 Cabinet is collectively responsible to the Lok Sabha. (Collective Responsibility)

 They remain in office as long as they enjoy the confidence of the Lok Sabha.

 A Bill proposed by the Cabinet but not passed by the Lok Sabha can lead to the fall of

the government.

 Titular or Nominal head of the government. (President)

 The President can act only according to the aid and advice of the Council of Ministers

headed by the Prime Minister except in those matters as mentioned in the Constitution

where he may exercise his individual discretion.

 3

 Real Executive

 "Swim and Sink" together (Prime Minister and Council of Ministers)

 Cabinet is a secret and deliberative body

 The Prime Minister is the keystone of the Cabinet.

 The cabinet can be removed through a successful vote of no confidence.

Criminal Majority

 Even if the opposition members are not present in the Parliament, it will not stop

the government from passing the bill.

 Advantages

 Smooth functioning in the Parliament

 It is similar to Taylorism or other classical thinkers where the focus is only

on efficiency and economy.

 Wilson’s idea of “More Government and less public opinion”.

 “Out of the Box” decisions can be taken.

 Rational decision-making is possible

 Disadvantages

 Hastily passage of bills without sufficient debates or discussions.

 It will lead to conflict and thus there is no scope for constructive conflict.

Follet termed this as the Win-Loss method of conflict resolution.

 May not represent the idea of majority.

 It is based on Elitism theory.

 It is against the Human Relations thought of Elton Mayo.

 Features of Cabinet Government

 Nominal and Real Executive

 Majority Party Rule

 4

 Collective Responsibility

 Political Homogeneity

 Double membership

 Prime Minister is the Leader

 Dissolution of Lower House

 Secrecy

Presidential Government (USA)

 President is Head of the State and Head of the Government.

 President elected by electoral college

 Cannot be removed but can be impeached for grave unconstitutional acts.

 Donald Trump is the first US president to be impeached.

 President governs with the help of non-elected Secretaries called "Kitchen Cabinet".

 They are not responsible to Congress nor do they have membership in Congress.

 The Lower House cannot be dissolved by the President.

 The Doctrine of Separation of Powers.

Federal Government with Unitary Bias

 Article 1: “India is a Union of States”

 Federation has not been used anywhere in the Constitution.

 Single Constitution.

 Earlier under Article 370 Jammu and Kashmir enjoyed a special status as a result

of which it had a separate Constitution.

 On August 5th 2019 through a Presidential Order the special status enjoyed by

Jammu and Kashmir was revoked.

 Distribution of powers between the centre and states.

 Independent and Integrated Judiciary that safeguards the Constitution.

 5

 Dual Polity" Union and States have their own set of legislative, judicial and executive

organs.

 Union List (97), State List(66) and Concurrent List(47).

 Residuary Powers lie with the Union government.

 This provision is inherited from the Government of India Act, 1935.

 The state should execute its powers in compliance with the laws made by the

Parliament (Article 256).

 State should not impede or prejudice the executive power of the union (Article 257).

 Government of India can undertake any executive, judicial or legislative functions in a

foreign territory on the basis of agreement with that territory.

 Full faith and credit clause (Article 261).

 Uniformity in administration through All India Service.

 Article 275: Parliament is authorised to give grants in aid to states from the

Consolidated Fund of India on the recommendations of the Finance Commission (Article

280).

 According to GST rules, IGST has to be shared between the Centre and States in a

ratio of 50:50 and the recommendations of the 15th Finance Commission bind the

Union Government to give 42% of its share to the States.

Universal Adult Franchise

 Setting a unique precedent among nations.

 Completes the Preamble in Spirit.

Constitutionalism

 Began in Greece 23 centuries ago.

 The Constitution was not a written fundamental law.

 Laws were not unconstitutional but just good or bad.

 Constitutional government to the Greeks was not a limited government.

 6

 Why Constitutional Government is required?

 To limit the powers of the government.

 All constitutionalism is based on a higher law.

 It is not about the exercise of coercive power or force.

 The Romans brought in Cosmopolitanism.

 Cosmopolitanism means the amalgamation of different cultures and traditions.

 It paved the way for humanitarianism and eventually universal citizenship.

 The Romans gave

 System of checks and balances.

 Doctrine of popular sovereignty.

 Principle of higher law or natural law or limited government.

 The principle that the whole people was the exclusive source of legal authority became

a fundamental part of the Roman Constitution.

 Greece and Rome distinguished between fundamental law and ordinary law.

 But neither of them put any effort into documenting the same.

 Medieval European Constitutionalism lacked the means to enforce the principles that

they were advocating: Natural law is the basic principle behind a limited government.

 Revolution was the only check against its violation (Natural law).

 Therefore, it became necessary to implement constitutionalism through legal means.

 The doctrine of a higher law and limited government came to the USA from England.

 English made interpretation of the law the domain of the judges and excluded the King

from it.

 The doctrine of a fundamental law, and that only judges can interpret the law are the

foundations of American Constitutionalism.

 Constitutionalism is a reflection of the Values, Beliefs and Ideals of the people.

 7

 Our Constitution reflects the thought process and ethics of our makers.

 Constitutionalism is what we intend to achieve through the means (tools) of the

Constitution.

 Power of a document to control the government.

 The Constitution is the defence against the absolute power of the state.

 It keeps a check on the actions of the government.

 Powers proscribed (control).

 Procedures Prescribed.

 Limited government is the best government.

 Rule of Law

 It is between no restraint and all restraint.

 Political power not to be exercised arbitrarily (no foundation).

 Establishes a condition of political equality characterised by a balance of power between

all the relevant groups and parties.

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 According to William G Andrews, Constitutionalism is

 Structure and process of the Government.

 Rule of Law

 Broad Goals

 Policy Matters

 According to Carl J Friedrich, Constitutionalism is

 Division of power

 Making the government responsible

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 1

DAILY
CLASS NOTES
Public Administration

Lecture - 77
Value Premises
 2

Value Premises

Bureaucracy and Democracy

 It has been considered by some theorists that Bureaucracy and Democracy are two

opposing ideologies.

 Democracy is associated with free will and self-control whereas Bureaucracy has been

considered as formal and rule-bound.

 So in both, academic as well as literature, they are seen as anti-thetical approaches.

 Democracy: Governance is based on the integral premise of control by people and the

expression of their will is seen as the core thought backing the execution of functions.

 Democratic institutions are considered responsive to the wishes of the public and

attempt to arrange those preferences in order to give a positive outcome to their

citizens.

 Bureaucracy on the other hand is conceptualised as being typically legalistic and largely

coded mechanism indifferent to the people's wishes and emphasising purely on legal

framework.

 I.e. based on Orders.

 Democracy has been seen as one of the most significant philosophies and values of the

modern state arrangement, as it is seen as a guarantee for the policies to be oriented

towards the public at large and the resources in the state to be employed as per

priorities set by the people.

 In a democratic setup to have specialised Bureaucratic machinery appears paradoxical

and it is observed that the two have opposing elements.

 The presence of Bureaucracy in a democratic arrangement has been questioned and

studies have been made to establish the reasons for such an existence and the

reasonability behind the existence.

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 At first sight, it appears that the complexity of the society and the aim to have a high

degree of speciality in a State somewhere must have necessitated the discharge of

functions by specialist Bureaucracy.

 Various studies have been attempted to understand the comprehensional as well as the

paradoxical aspect of the two.

 Caplin in his studies in 2007 produced that Bureaucracy shall be required in the

exercise of State function, as people out of their pure democratic will may select

inconsistent goals which may not be possible to be applied practically.

 Richard Rose in 1991 observed that a linkage between voting and policy choices in

conventional democracies may not be as clear as what most of the democrats may like

to believe.

 E.g.- According to the ADR report more than 43% of elected MPs in the present

Lok Sabha have criminal records.

 It has been observed that an effective Democracy requires an efficient Bureaucracy for

the attainment of the goal determined in a Democratic manner.

 Similarly, an efficient Bureaucracy in order to be effective requires directions coming

from people's will (elected representatives / temporary executive/political executive) so

that its relevance in society can be validated.

 The thought has surfaced the necessity of such an arrangement where the

complimentary aspect of the two gets reinforced and the policy process in a State

could be effective and efficient in its functioning.

 It has been observed that these two aspects of the government may appear anti-

thetical on the face, but both of them are necessary for providing effective and

responsive governance.

 The responsiveness of the Democratic government is required to balance with

impartiality and predictability assumed to reside with the Bureaucratic institutions.

 Law of situation, Satisficing decisions.

 4

 Likewise, the Democratic process is seen as important in conferring legitimacy to the

functioning of the Bureaucratic arrangement.

 Democracy provides for the value of participation which is seen as highly significant.

 An important trend has surfaced, where association with a political party has been on

the decrease and the representative democracy has been facing some sort of disinterest

and alienation from the side of the people.

 It is linked with Theory X of McGregor.

 In the democratic arrangement where the involvement of people in the political process

has been limited to casting votes during elections, disinterest and alienation have been

very high.

 Thus the ‘constructive criticism’ of Follet is missing in democracy.

 Under such societies, people are not able to see some meaningful expression in the

process of participation and for this reason, they develop a feeling of disinterest,

alienation or helplessness about the system.

 Participation at the execution level thus has been seen as an important mechanism

through which people could be introduced back into the system and Bureaucracy and

citizens could be seen as a collective entity for this purpose.

 Further, the linkage between Bureaucracy and Democracy has been seen as a necessity

in a multi-group situation transaction.

 The bureaucracy is a linkage between politics and people.

 The new philosophical paradigms have suggested achieving a balanced relationship

between the formal Bureaucracy and the will of the people.

 Goodin in his studies of 2004 has suggested an arrangement of output democracy

through which delivery could be facilitated.

 Goodin has observed that there should be a mechanism where the conventional good

of Democracy gets achieved through bureaucracy.

 5

 Arrangements like video conferencing, e-governance, and direct participation could be

seen as providing the necessary space to the will of the people in the discharge of

functions.

 E.g.- People through social media interact with the administration on a real-time

basis.

 Under New Public Management (NPM), Osborne and Gabler had considered bureaucrats

in the role of public manager and have asked them to play as the facilitators.

 Bureaucracy has been seen in a catalytic role.

 Democratic components in the governance and community-owned government are

prescribed. (Citizen's Charter, RTI, New Public Service approach, e-Office)

 Controls have been suggested to be pushed out of Bureaucracy and handed over to the

people.

 Though the non-IAS officers are now being inducted into higher positions in the

ministries in greater numbers than before, such opportunities continue to be limited

relative to the number of officers seeking such opportunities.

 The recommendations of the first ARC continue to be relevant as governance has

become increasingly technologically enabled and specialised.

 The country's civil service today is a pale shadow of its halcyon (good times) past when

officers of high intellectual calibre, personal integrity, and brio (energy) to give unbiased

advice, held sway (in common).

 Over seven decades later India's crisis-ridden bureaucracy is unrecognisable; vilified for

its inefficiency, nepotism, and corruption, but above all else, for its arrogance and high

maintenance and low mileage capabilities.

 To overcome this, Rule 56J of All India Services Conduct Rules is being applied.
 6

 This common perception of the civil services overshadows the handful of conscientious

and upright officers who continue boldly to adhere to old values and keep the system

afloat.

 An incensed (angry) prime minister lamented that India's growth had it is become

'hostage’ to the whims and fancies of babus - a mildly unreasonable prejorative

euphemism (criticism) for civil servants - and the untrammelled (unrestricted) power

they wielded.

 India's first Administrative Reforms Commission (ARC), aiming at streamlining the

country's bureaucracy, had in 1970 recommended that an overarching ‘functional

field' needed to be created for the IAS.

 The Commission proposed that this could consist of land revenue administration,

exercise of magisterial functions and regulatory work in the states in fields other than

those looked after by officials from sundry (other) civil services.

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DAILY
CLASS NOTES
Public Administration

Lecture - 78
Bureaucracy and
Democracy
 2

Bureaucracy and Democracy

Bureaucracy and Democracy

 It also suggested that the jobs which do not fall within a particular 'functional area'

need to be demarcated into eight areas of specialised administration: economic,

industrial agricultural and rural development, social and education, personnel, finance,

defence and internal security, and planning.

 These recommendations were never fully implemented.

 A hybrid system was adopted that provided an edge to IAS officers in matters of

promotion, postings, and career furtherance.

 Hybrid System→ An IAS is appointed in a district and the state services officers

are answerable to the IAS officer. However, there is a constant tussle between the

officers of both cadres.

 Under this skewered arrangement, the non-IAS services received step-brotherly

treatment leading not only to resentment but also demoralisation.

 Successive governments declared their intent on assuming the office of executing

administrative reforms, but these were cleverly stymied each time by the internal

forces.

 The Union Public Service Commission (UPSC) issued an advertisement in March 2021

seeking applications "from talented and motivated Indian nationals willing to

contribute towards nation building" for three posts of Joint Secretary and 27 of

Directors in central government Departments.

 NITI Aayog, in its three-year Action Agenda, and the Sectoral Group of Secretaries

(SGOS) on Governance in its report submitted in February 2017, recommended the

induction of personnel at middle and senior management levels in the central

government.

 I.e. Lateral entry of specialists.

 3

 These 'lateral entrants' would be part of the central secretariat which in the normal

course has only career bureaucrats from the All India Services/ Central Civil Services.

 Lateral recruitment is aimed at achieving the twin objectives of bringing in fresh talent

as well as augmenting the availability of manpower.

Chinese Case Study

 China's efforts to rid the country of poverty now, if not sooner have identified a hurdle:

the bureaucracy.

 The apparatchiks (members of the Communist Party of China) in mainland China were

told to spend 70 per cent of their time on eliminating rural poverty.

 They have to have to check the boxes based on the work done by them.

 In China, they disparagingly call all that box-checking "leaving marks”.

 The drive for centralisation in a sprawling nation too often fosters bureaucratic inertia,

duplicity and other unproductive practices that are aimed at satisfying Beijing and

protecting careers but threaten to undermine the goals.

 The orders from above have the effect of sometimes making everything slow to a crawl,

and other times pushing people to quickly run in the wrong direction.

 The report showed that many civil servants in ‘The Party’ spend much of their time

on paperwork and meetings. (Formalism).

 As P.J. O'Rourke once noted about government work, you can't often measure output,

so you have to measure input. And what better way than to have meetings?

 The Party's disciplinary commissioner has targeted "formalism" and "bureaucratism" as

punishable offences.

 Similarly in India, Rule 56J of All India Services Conduct Rules is applied to remove

inefficient government officials from the service.

 Li Jianping, a government official in China was given the death penalty for

corruption.
 4

The USA Case Study

 The Presidential elections in the US and the subsequent mayhem (confusion) following

Trump's unceremonious exit saw the Bureaucracy preventing any attempt from the

former President to hijack the election.

 Although the Capitol Hill siege is a blotch on American Bureaucracy and Law

Administration in general, the fact that the bureaucracy stood its ground and did not

cow down to his "charisma" shows that an independent bureaucracy is essential to

protect and realise the ideals of the constitution.

Digital Bureaucracy

 During the globalisation era, the government's management is based on electronic

systems i.e. digital bureaucracy.

 As the classic bureaucracy is challenged by a shift from paper-based to digitised

information, the shift also offers transparency, significant productivity gains and more

efficient service delivery.

 Paper Administration has continued since the Mughal Era.

 The role of the Digital bureaucracy in the improvement of good governance appears

through the work of the electronic management system to enhance the four basic good

governance indicators of transparency, accountability, efficiency and effectiveness.

 The digital bureaucracy works to ensure and provide transparency in political and

administrative acts and transparency in information presentation and availability to

citizens and civil society institutions.

 The application of digital bureaucracy also plays an important role in activating

accountability, through the existence of a system to monitor and control the efficiency

of the performance of government institutions, which helps in limiting the spread of

corruption in the country.

 5

 The application of digital bureaucracy also supports efficiency and effectiveness through

the functions of electronic planning and electronic regulation that help decision-makers

succeed in crisis containment.

 Therefore, digital bureaucracy is considered a vital key to handling the negative impacts

of bureaucracy.

 So, digital bureaucracy seeks to achieve the optimal use of resources in a manner that

serves the members of society and in a manner that guarantees the rights of future

generations and works to address within good governance.

 Union Minister for Textiles, and Women & Child Development Smriti Irani said that

India could withstand the effects of the pandemic because of the dedication of Indian

bureaucracy.

 Applauding the officers, Irani said that the humane and vibrant bureaucracy

ensured that the pronouncement of PM Garib Kalyan Yojana of ensuring doorstep

delivery of free ration for over 8 months to over 80 cr Indians was achieved

without any glitch.

Bureaucracy and Development

 Bureaucracy has been a pivotal instrument towards achieving the development goals

post-independence.

 The turmoils (problems) of our country demanded the bureaucrats to be pragmatic,

outgoing, dynamic, flexible, etc.

 This coincides with the aims and goals of MBC-I (First Minnowbrook Conference).

 Indian bureaucracy does possess a few traits of Weber's ideal Bureaucracy: Hierarchy,

graded authority, Subordination, Division of Labour, and Impersonal Bureaucracy.

 Bureaucrats in India balance two worlds → one filled with files and procedures and the

other filled with the demands, aspirations and desires of the people.

 The element of impersonality will help in improving efficiency.

 6

 This is how bureaucracy contributes to development in developing economies.

 Fred Riggs characterised the Development Administration as one with increasing

autonomy with rising diffraction.

 I.e. increase in specialisation.

 E.g.- A rise in several metropolitan cities with a Commissionerate System.

 Indian Bureaucracy has evolved from the days of independence.

 There is increased autonomy in functioning within and amongst government

departments.

 Governance is no more the "monopoly" of the government alone, rather multi pluralistic

institutions are involved today in the delivery of goods and services.

 From land reform movements, five-year plans, nationalisation of banks, LPG, etc the

bureaucracy has been the foremost factor driving our country towards greater

development.

 This is in tune with what Caiden said: "It is the attainment of results, not rationality,

form or ritual".

 However, allegations of corruption and The Expert Bureaucrat becoming the master of

the Ignorant Political Executive have overshadowed the achievements of Bureaucracy.

 The fact that the "impersonal" character of bureaucracy has remained personal for

powerful people with clout has led to crony capitalism.

 Bureaucracy has been notorious for implementing rules according to "Show me the

man I will show you the rule".

 NGOs and Civil Society Organisations: PRATHAM

 ICT: E-Office; GeM (Government e-Marketplace)

 Faceless Governance: Income Tax Department

 Specialist Lateral Entry: UPSC, NITI Aayof

 7

 Private corporates involved in Governance: Kitex a private company in Kerala recently

flouted their own political party which managed to win a majority of the seats in five

Panchayats in Kerala. The Corporate-like Governance brought in by the Company saw

the Panchayat's fiscal deficit becoming surplus in addition to the visible changes that

the elected officials brought, in the form of good roads and affordable food and

groceries through supermarkets.

 This is a blend of NPM (New Public Management) and NPS (New Public Services).



 1

DAILY
CLASS NOTES
Public Administration

Lecture - 79
Political Culture
 2

Political Culture
Bureaucracy and Development

❖ The Second Administrative Reforms Commission (SARC) had also favoured opening up
additional secretary (one rank above joint secretary) positions to qualified individuals
from the private sector.

❖ The SARC had recommended that within the framework of a new civil services law,
the government institute a new policy whereby all officers who are deemed unfit for
service at the time of their 25-year review be forcibly retired.

➢ Till 2022, 395 officers of Group A and Group B have been compulsorily retired
through Rule 56J, Central Civil Services (CCS) Pension Rules, 1972.

❖ Regarding recruitment, the commission recommended significantly lowering the

permissible age of entry into the civil services and establishing national institutes of
public administration that would cultivate a new pool of aspiring civil service applicants.

➢ However, lowering the age would impact the entry of women and people from poor
backgrounds into public services.

❖ In an attempt to engineer a shift away from seniority-based career progression, the

commission also suggested that all promotions be based on the successful completion of
mandatory training.

➢ Seniority-based career progression is a feature of Weber's theory.

❖ Finally, to strengthen accountability mechanisms, the commission recommended a

system of two intensive reviews at the 14 and 20-year marks to determine
continuance in public service, as well as a new civil service reform bill to fix a minimum
tenure for senior posts and establish safeguards against arbitrary dismissal.

❖ But, the SARC said, the obstacles to even modest reform of this type – such as opening
up senior management positions in the IAS to individuals from the private sector were
immense.
 3

❖ According to a measure of government effectiveness developed by the World Bank that

captures the quality of a country's civil service, its independence from political pressure,
and the quality of policy formulation and implementation, India's performance is
middling.

❖ Data from 2014 place India in the forty-fifth percentile globally, nearly a 10
percentage point decline from the country's position in 1996, when these data were
first collected.

❖ India's regulatory problems are not because of the lack of regulatory standards and
poor compliance but due to the lack of quality and effective enforcement of regulations.

❖ As per the World Justice Project's 'World Rule of Law Index' India's ranking has
improved significantly in the category of following due process in administrative
proceedings (from 75 in 2015 to 45 in 2020).

Political Culture

❖ Political culture is referred to as a set of shared views and normative judgments held
by a population regarding its political system.

❖ It is the foundation of all political activity, or at least as a factor determining the

nature, characteristics and level of political activity.

❖ It includes historical experience, memory, social communities and individuals in politics,

their orientation, skills, and influencing the political behaviour and this experience
primarily contains a summary, transformed form of impressions and preferences in
foreign and domestic policy.

❖ It is a determining factor in, which ideologies will dominate a country's political regime;
it is unique to a given country or group of people.

❖ It is the people's psychological orientation.

❖ It implies a pattern of orientation to political objects such as parties, governments and

constitutions expressed in beliefs, symbols and values.
 4

❖ Political culture as a factor explains different patterns of political opposition whose

salient elements are:

➢ Orientation of problem-solving

➢ Orientation to collective actions.

➢ Orientation to the political system

➢ Orientation to other people

❖ The political culture approach does not refer to the attitudes of specific actors, such as
the current president or the prime minister; rather it denotes how people view the
political system as a whole, including the belief in its legitimacy.

❖ It is extremely difficult to define the term political culture.

❖ It is elusive and comprehensive at the same time.

❖ It involves the basic values, ideas, beliefs, attitudes, and orientations about politics.

❖ This involves issues of right and wrong, good and bad, what is acceptable in politics
and what is not.

Political Culture: Dimensions

❖ Almond and Verba (1963) have identified five important dimensions of political culture
namely:

➢ A sense of national identity.

➢ Attitudes towards one's self as a participant in political life.

➢ Attitudes towards one's fellow citizens.

➢ Attitudes and expectations regarding governmental output and performance.

➢ Attitudes towards knowledge about the political process of decision-making.

Political Culture: Classification

❖ Based on the surveys conducted by Almond and Verba in the USA, Britain, West
Germany, Italy and Mexico they have classified political culture into the following:
 5

❖ Parochial Political Culture:

➢ Citizens are only distantly aware of the existence of the central government- as
with remote tribes whose existence is seemingly unaffected by national decisions
made by the central government.

➢ There is no political orientation towards political objects.

➢ People have neither knowledge nor interest in politics.

➢ They have no orientation towards all components of politics.

➢ This type of political culture is compatible with a traditional political structure.

➢ This type of orientation is found in a passive society where there is hardly any
specialization of roles, and therefore, people are indifferent towards governmental
authority.

➢ People have low awareness, expectations and participation.

❖ Subject Political Culture:

➢ Citizens see themselves not as participants in the political process but as subjects of
the government - as with people living under a dictatorship.

➢ Citizens under this political culture have a passive orientation towards a political
system and conceive themselves as having a minimum influence on the political
process.

➢ Citizens are aware of the central government and are heavily subjected to its
decisions with little scope for dissent.

➢ The individual is aware of politics, its actors and institutions.

➢ Citizens have orientations toward the output aspects of the system.

➢ People know about decision-making mechanisms.

➢ There is a political awareness but no confidence to air political views, thus there is
an absence of participatory norms.

➢ It is compatible with a centralized authoritarian structure.

➢ The people have a higher level of awareness and expectations, but low participation.
 6

❖ Participant Political Culture:

➢ Citizens believe that they can contribute to the system and that they are affected
by it.

✓ Through MEME culture and social media, people actively participate.

➢ They respond positively to all political objects and have an active orientation to
political activities.

➢ Citizens can influence the government in various ways and they are affected by it.

➢ The individual is oriented toward the system, towards all four components of
politics, i.e., input, output, political system, and self-role.

➢ This encourages more and more participation and participation is the highest value.

➢ There is an ability to criticize the authority and hold a positive orientation towards
the political system.

➢ People have a high level of awareness, expectations, and participation.

❖ Almond and Verba argue that there is never a single political culture.

❖ The three categories of political orientations which they have identified/are not always
present in a pure form; rather they are intermixed in many situations of political
culture.

❖ Thus, they re-classified political culture into three sub-types:

➢ Parochial and Subject:

✓ This type of political culture represents a shift from parochial orientation to

subject orientation.

✓ Here the parochial loyalties gradually get weathered (eroded) and the
inhabitants develop a greater awareness of the central authority.

➢ Subject and Participant:

✓ This type of political culture represents a shift from subject political orientation
to participant political orientation.
 7

✓ In such a political culture, people generally on the one hand develop an activist
tendency and participate in the process; but on the other hand, there are those
individuals too who possess passive orientations and remain at the receiving end
of the decision-making process.

➢ Parochial and Participant:

✓ This type of political culture represents the parochial orientation in the

individuals whereas the norms introduced require a participant's political
orientation.

✓ In such a type of political culture, there emerges a problem of harmony between

the political culture and political norms.

✓ However, Almond and Verba suggest that a participatory political culture fits
a liberal democratic regime.

✓ The participant political culture is the type of political culture that is congruent
with a democratic political structure and the same has been called by them as
'Civic Culture'.

• This is generally found in the political culture of India.

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 1

DAILY
CLASS NOTES
Public Administration

Lecture - 80
Political Culture (Part 02)
 2

Political Culture (Part 02)

 Samuel E Finer (The Man on the Horseback, 1962) came to relate civil-military

relations with political culture. In his analysis, there are four levels of political culture:

 Mature Political Culture:

 In this type of political culture, there is widespread public approval of the procedure

for transfer of power;

 a belief that the persons in power have the right to govern and issue orders;

 the people are attached to the political institutions and there is a well mobilised

public opinion.

 E.g.- India.

 Developed Political Culture:

 In this type of political culture, the civil institutions are highly developed and the

public is well organised into powerful groups but from time to time there arises a

dispute on the questions of who and what should constitute the sovereign authority

and how power should be transferred.

 E.g.- Pakistan→ SInce 1947, a single democratically elected government has not

continuously governed in Pakistan for 5 years.

 Low Political Culture:

 At this level of political culture, the political system is weak and narrowly

organised;

 there is a lack of consensus on the nature of the political system and

 the procedures and the public attachment to the political system are fragile.

 E.g.- Libya, and Iraq.

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 Minimal Political Culture:

 At this low level of political culture, articulate (well-organised) public opinion does
not exist in the political system and the government can easily ignore public
opinion;

 Political cultures are decided by force or the threat of force.

 A person or institution capable of asserting itself can enforce its will and the extent
of one's authority is directly related to the degree of force at one's disposal.

 Finer argued that developing countries with weak legitimacy are prone to
experience “coup d'etat” or extreme forms of military intervention.

 Coup d'etat→ means to strike at the state.

Almond's Political System and Related Culture

 Anglo-American Political System:

 Associated with the advanced countries of the West, even termed as a matured
political culture, it incorporates political consensus and a higher degree of
organisation.

 It is the operating system that acts as the benchmark which is being borrowed by
other nationalities.

 E.g.- USA and Europe

 The political culture of this system has the following characteristics:

 A multi-valued, rational-calculating, bargaining, and experimental political

culture. There is a sharing of political ends — the values of freedom, mass
welfare, and security – and means.

 A secularised political system involves the individuation of and a measure of

autonomy among the various roles. The political system is saturated with the
atmosphere of the market. Policies offered by candidates are viewed as
hypotheses, and the consequences of legislation are rapidly communicated
within the system and constitute a crude form of testing hypotheses.

 It is similar to the Systems theory and Cybernetics theory.

 4

 The basic principles of the system: Liberty, Equality, Democracy, Civic duty,

Individual Responsibility, Trade Unionism, etc. Bargaining politics: between

rulers and ruled (the elected and electors, leaders and their followers).

 Society is heterogeneous and therefore different parties and interest groups

operate to influence the decision-making process in response to their respective

interests.

 Thus the decision needs to be taken based on Bounded Rationality and the

Satisficing decisions are taken.

 Checks and balances- there is a diffusion of power and influence where legal

institutions are checked by the channels of mass communication and mass

education so that the prospect of authoritarian rule is mitigated, even

eliminated.

 Separation of power and stability of differentiated roles.

 Political ideologies – multiculturalism, libertarianism, the welfare state,

utilitarianism (maximum utility), individualism, egalitarianism etc.

 Political folklore- use of symbol.

 Civil Supremacy

 Continental European Political System:

 These are the Western countries of Europe like Italy, France, and Norway. It's even

considered a developed political culture because in these societies public is highly

organised.

 Features

 Fragmented political culture- the political culture is fragmented where

different sections of society establish different patterns of cultural development,

while some are more developed than others. Thereby, political culture

incorporates distinctive sub-cultures.

 5

 No political bargaining → The process of political bargaining is virtually

nonexistent which creates a situation in which politics becomes like a game.

The result is that various sub-cultures are at war. It is a race of superiority

and power.

 Expected criteria- stability of institutions guaranteeing democracy, the rule of

law, human rights, protection of minorities etc.

 There has been a rise of anti-Islamic, Anti-Semitism, and Anti-immigrant

behaviour leading to protectionism.

 Form of governance- it imbibes monarchism, republicanism, presidential,

semi-presidential, parliamentary republic, parliamentary republic etc. For

instance, countries like Belgium, Netherlands, Sweden, Spain etc. have

constitutional monarchies

 Formation of International Organization:

 E.g.- European Union

 Civilian government

 Legitimacy of institutions

 Developing Countries Political System

 This category includes countries that emerged from the days of long colonial

domination.

 Features

 Master and subjects – the political culture of the masters is superimposed over

the political culture of the subjects. The result is the erosion of the political

culture of the subjects and the super-imposition of the political culture of the

rulers that is deemed to be superior in all respects.

 I.e. either the opposition party is weak or non-existent.

 A new source of legitimacy by the rule over time.

 Single structure multivariate political culture

 6

 Commonality of history

 Primacy to the subject through providing voting rights and people

participation in governance.

 Agro-industrial fused society.

 Totalitarian Political System:

 The countries included here are the former Soviet Union and China. These systems
are characterised by the following features:

 Legitimacy of centre: The quality of the acceptance of the legitimacy is

artificially created. The characteristic orientation to an authority tends to be
some combination of conformity or apathy produced by the central control or
the means of communication and the agencies of violence

 Communist Party of China; Theory X of D. McGregor.

 Concentration of power

 Hierarchy of bureaucracy, police and army

 Coercion as the hallmark of the exercise of authority

 The single pattern of cultural development

 E.g.- Uighur Muslims

 Unitary system

 Lesser people participation

Observations regarding India

 The political culture of India is heterogeneous.

 In ancient India owing to monarchy and poor political awareness, the political culture
was parochial.

 The British rule brought the people of India under a single political power.

 The British Rule created an elitist culture which was later inherited by the political
executives of our country.

 The discontentment with the British rule made the people aware of their rights and
duties.
 7

 The various national movements were responsible for making the people participative.

 Following independence, this participative culture was encouraged and ensured through
universal adult suffrage.

 However, a significant section of the society is immune to ideas like - democracy,

liberalism, the rule of law, autonomy, the supremacy of the judiciary, etc

 They are the mass of India.

 They exhibit a political culture of confrontation and cooperation with the elite political
system.

 The problem with a heterogeneous political culture is while multi-ethnicity is a tool for
checks and balances, it can obstruct the commitment and loyalty of the people towards
the nation.

 In India, there is an overall cynicism (dislike) towards politics and political leaders.

 The masses hold them responsible for their impoverished life.

 1950s to 1975: Proactive political culture with new institutions being set up and
planning goals being achieved.

 1975 to 1977: Dictatorial culture with administration joining the bandwagon.

 Post Emergency to 1990s: Political culture becomes realistic and pragmatic.

 Post 2000: Good Governance

 Post 2020s: High-tech Governance

 E.g.- Artificial Intelligence for translation.

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
 1

DAILY
CLASS NOTES
Public Administration

Lecture - 81
Public Sector Unit
 2

Public Sector Unit

Mass Based Politics

 In politics, the term ‘base’ refers to a group of voters who almost always support a

single party's candidates for elected office.

 Base voters are very unlikely to vote for the candidate of an opposing party, regardless

of the specific views each candidate holds.

 Mass-based politics is often related to the "charisma" of the individual.

 Charismatic Leadership.

 In the Indian context “charisma" is often associated with the region, religion, language

spoken, gender, etc.

 Rarely a candidate's intellect has appealed to the masses.

 This is evident from the fact that former Prime Minister Dr Manmohan Singh couldn't

win a seat in the Lok Sabha and was a member of the Rajya Sabha.

 The intellects represent a new India that is not hesitant to praise a political opponent.

 Mass-based politics is all about "playing to the gallery".

 I.e. providing subsidies and freebies.

 This means the policies adopted or executed may not be democratic and may not

favour all.

 The end result is the formation of "silos” in society.

 Country or national development is ignored to protect selfish interests.

 Positive discrimination → Providing certain advantages to weaker sections of

society.

 People look up to fellow members of the same caste, religion or region.

 This elevates group politics and devalues intellectual principles.

 “Group Interests" dominate and create division in society.

 3

 Groups influence election.

 Elton Mayo extensively talked about informal groups.

 The background of the individual contesting the election becomes irrelevant as the

identity of the candidate is purely based on his social standing in terms of caste,

language, region, religion and money.

 This has led to the criminalisation of politics.

PYQ

Q- The economic reforms have significantly infringed the basic values and spirit of the
Indian Constitution. Examine. (10 Marks, 2019)

 Introduction

 Define Economic Reforms, Basic Values and the Spirit of the Indian Constitution.

 Body

 Economic Reforms affected values of Justice, Liberty, Equality, Fraternity,

Socialist, and Democratic aspects.

 Economic Reforms signify New Public Management, Public Choice Approach.

 It has customer orientation and not citizen orientation.

 It was an exogenic change.

 Economic Reforms did not affect the Basic Values and Spirit of the Indian
constitution
 4

 The reform gave us New Public Services (Serve rather than steer), Good
Governance, and e-governance.

 Numerous schemes like Ayushman Bharat, National Food Security Mission etc
have been possible

 Conclusion

 Economic Reforms have been instrumental in clubbing NPM and NPS in Indian
administration and due to this early intervention, today we are in a position to
club NPS with Artificial Intelligence, Internet of Things, Machine Learning and
Deep learning.

Q- "The philosophy of the Westminster model is at odds with the political culture of
India." Critically analyse. (10 Marks, 2018)

 Introduction

 Explain the philosophy of the Westminster model and the political culture of
India.

 Body

 Philosophy of the Westminster model

 Rule of Law

 No Positive and Negative discrimination.

 Based on the “Theory Y” trait of Douglas McGregor

 Mature traits in the “Immaturity-Maturity Continuum” of Chris Argyris.

 Indian Political Culture

 Divisions leading to informal groups acting as pressure groups.

 Importance given to Hygiene Factors.

 Herbert Simons features of Social Man.

 Conclusion

 Slowly, individualism is rising in the country with more technology being available
leading to a multi-valued, rational-calculating, secularised political system.
 5

Public Sector Undertakings

Definition

 Public Sector Undertakings are entities that are owned, managed or controlled by

national or state governments.

 Main objective: To deliver public goods and services at lesser rates (inclusiveness), quality

services, increase the industrial base and provide employment.

 Public Sector Undertakings may collaborate with private entities for the delivery of

Services.

Objectives

 Achieve the desired socio-economic objectives.

 Reduction in poverty, and unemployment and increase the nutrition level of the

country.

 Profits are utilised for the development of the country.

 The welfare of workers and society.

 Generally, PSUs from 1951 to 1991 functioning were based on Anti-Taylorism,

and POCCC (Fayol) or POSDCoRB (Gullick and Urwick) was not followed which led

to PSUs becoming loss-making.

 Welfare maximisation vs Profit Maximisation

Timeline of Events

 British rule left India severely underdeveloped.

 Negative perception towards Laissez Faire.

 Laissez Faire means Free-market economics.

 1931 Karachi Session: Nationalisation of key industries.

 Political Freedom without Economic Freedom is fruitless.

 Mixed Economic model adopted after independence.

 Negligible private presence.

 Due to Licence-Permit Raj.

 6

 Investment deficit in socio-economic sectors especially infrastructure.

 Balanced social and economic development through planning.

 Five-Year-Plan was started

 PSUs: Shift from agrarian economy to industrial economy.

 Fred Riggs has talked about the Agraria-Transitia-Industria Society.

 Before Independence, there were few public-sector enterprises in the country.

 The Railways, the Posts and Telegraphs, the Port Trusts, the Ordnance Factories, and

All India Radio, and a few enterprises like the Government Salt Factories, Quinine

Factories, etc. were departmentally managed.

 Industrial Policy Resolution, 1948: The manufacture of arms and ammunition, the

production and control of atomic energy and ownership and management of railway

transport became the exclusive monopoly of the central government.

 The Second Five-Year Plan: The public sector was to function in accordance with the

socialist pattern of society. The public sector was expected to work as an instrument

for checking the concentration of economic power.



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DAILY
CLASS NOTES
PUBLIC ADMINISTRATION

Lecture – 82
Public Sector Unit
(Part - 02)
 2

Public Sector Unit (Part - 02)

❖ The Railways, the Posts and Telegraphs, the Port Trusts, the Ordnance Factories (i.e.
arms and ammunition), All India Radio, and a few enterprises like the Government
Salt Factories, Quinine Factories (manufacturing of pharmaceutical drugs), etc. were
departmentally managed.
❖ Industrial Policy Resolution, 1948: The manufacture of arms and ammunition, the
production and control of atomic energy and ownership and management of railway
transport became the exclusive monopoly of the central government.
❖ The Second Five-Year Plan: The public sector was to function in accordance with the
socialist pattern of society. The public sector was expected to work as an instrument
for checking the concentration of economic power.
❖ The 1956 Industrial Policy Resolution gave a primary role to the state to assume a
predominant and direct responsibility for industrial development.
➢ This was the base for the second Five Year Plan and planning in the real sense
started from here.
❖ The Industrial Policy Statement of 1973 identified high-priority industries where
investment from large industrial houses and foreign companies would be permitted.
❖ The Industrial Policy Statement of 1977 laid emphasis on decentralisation and on the
role of small-scale, tiny and cottage industries.
❖ The Industrial Policy Statement of 1980 focused attention on the need for promoting
competition in the domestic market, technological upgradation and modernisation.
❖ The policy laid the foundation for an increasingly competitive export-based economy
and for encouraging foreign investment in high-technology areas.
❖ On the eve of the Seventh Five-Year Plan (1985-1990), a broad-based infrastructure
had been built up, and basic industries had been established.
❖ Numerous policy and procedural changes were introduced in 1985 and 1986 (Arjun
Sengupta Committee Recommendations) under the leadership of the Rajiv Gandhi
government which were aimed at increasing productivity, reducing costs and improving
quality.
❖ The focus was on opening the domestic market to increased competition and readying
our industry to stand on its own in the face of international competition.
 3

❖ The public sector was freed from several constraints and given a larger measure of
autonomy.
❖ Post-1991 saw PSUs being privatised and the government gradually exiting from

sectors that were hitherto not possible.

Features of PSUs

❖ Government ownership:

➢ It is either totally owned by the government or the majority shares are taken up

by the government.

➢ Sometimes 50% of the share is owned by the government.

➢ Ultimate decision-making lies with the government.

❖ Government management and control:

➢ The autonomous body which is managed and owned by the government.

➢ The government controls and manages the organisation by appointing key

personnel. (National Power Training Institute).

❖ Public accountability:

➢ Operated by government funds.

➢ Accountable to the general public which is carried out by the parliament.

❖ Service motive:

➢ It provides service to the public.

➢ It provides goods and services to the public at reasonable prices.

➢ It is guided by service motive more than profit motive (a feature which has changed

over the years).

❖ Monopoly: The government has a monopoly in this sector.

❖ Separate legal entity: It is established under acts and is run under a law. It can purchase

and sell securities, can enter into any contract, can sue and can be sued.

❖ Stability: It is generally stable and perpetual in nature as it has been set up by the law

and only a law can dissolve it.

 4

❖ Flexibility in functioning:

➢ Government companies enjoy greater flexibility in their operations. There is greater

autonomy with these companies.
➢ Any decision can be taken easily and promptly.
➢ It can easily manage its internal matters.
➢ There is no instance of bureaucracy or red-tapism in these companies.

Advantages of PSUs

❖ Reduces monopoly of private entities.

❖ Better management of the country's natural resources.

❖ Economies of scale (Cost advantages)

❖ Labour interests are protected

❖ Affordable quality products for consumers

❖ Self-reliance: Hindustan Aeronautics Limited (HAL)

❖ Balanced production: Sustainable production compared to private entities.

❖ Reduced Exploitation of labour and the public.

❖ Better Accountability.

❖ Huge investments may not always be possible for the private sector.

Disadvantages of PSUs

❖ Lack of initiation and inefficiency.

➢ Theory X of Douglas McGregor.

❖ Monopolistic attitude of government.

❖ Political interference.

➢ PSUs are an example of why there is a need for a politics-administration

dichotomy.

❖ Indecisiveness and slow Decision Making.

➢ Multitudinous monarch because of the presence of government.

❖ Poor management

➢ Absence of POCCC, POSDCoRB, Taylorism

 5

❖ Slow Growth

➢ I.e. Social Man of Simon

➢ Soldering
➢ Satisficing not optimising
❖ Less Flexibility
➢ Weberian Bureaucracy→ More focus on rules and procedures
❖ Less Investment in innovation and R&D
➢ I.e- Closed system approach: No Feedback; One-Best-Way
❖ Rigidity in procedures
Arjun Sengupta Committee Recommendation
❖ Realising the critical role assigned to the public sector in the mobilisation of resources
for the Seventh Plan the government of India decided to set up a high-level committee
to review and suggest policies for improving the performance of public enterprises.
❖ This Committee, headed by Arjun Sengupta, then special secretary to the prime
minister, was set up in September 1984.
❖ The performance of a chief executive of a public enterprise should be evaluated on the
basis of an agreed set of clear targets.
❖ An appropriate information system capable of monitoring public enterprise
performance in terms of these targets should be developed.
➢ I.e. focus is on efficiency and economy (Classical thinkers).
❖ The Committee claims that from the point of view of planning and budgetary
management, public enterprises may be grouped as follows
➢ Enterprises operating in the core sector.
➢ Financially viable enterprises in the non-core sector,
➢ Enterprises in the non-core sector incurring losses.
❖ Government concern: overall strategic planning rather than day-to-day
administration.
➢ I.e. Satisficing decisions.
❖ The enterprises are accountable for their performance in relation to the goals set and
an appropriate mechanism for evaluation of their performance.
➢ Performance Evaluation.
 6

❖ "Management by objective" is accomplished by increasing the quality of controls and

reducing the quantity.
❖ In a parliamentary form of government, our public enterprises cannot be free from
governmental scrutiny of their general policies as well as some aspects of their day-to-
day operations.
❖ It is necessary to evolve a convention by which members of parliament accept some
self-imposed restraints on the nature of the questions they ask.
❖ United Kingdom - they found it necessary to pass the "Self-Denying Ordinance” which
limits governmental meddling by law and not by conventions.
❖ The committee argues that the only way to reduce governmental intervention in the
day-to-day operations of the enterprises is to create a holding company thereby,
eliminating the government's day-to-day contact with the enterprise.
❖ The Committee recommends that the concerned ministries should evaluate the
performance of holding companies under them.
❖ The Committee taking note of the suggestion made by some groups that there is no
need for representation of the government on the Board of Directors of public
enterprises, has however recommended that this practice should continue nevertheless.
❖ They argue that government directors are generally a positive source of help and
mediation between the government and the enterprises.
❖ It recommended a system of “Memorandum of Understanding” to improve the
performance of the PSUs.
❖ The Holding Company would also specify its plans for investments, production, capacity
utilisation, dividends, etc, for a 5-year period and, therefore, enter into a
memorandum of understanding with the government on a mutually agreed basis.
❖ Certain obligations would also be cast on the ministry or department regarding the
provision of equity, price level, etc.
❖ This memorandum of understanding would be reviewed each year and updated, and
the performance of the holding company judged on this basis, making due allowance
for the failure or otherwise of the ministry or department to fulfil its part of the
understanding.
❖ It argues that the original objective of providing maximum autonomy in the day-to-
day management of public enterprise has not been met.
 7

❖ The main culprits, according to the Report, are the specific clauses in the Articles of
Associations; Bureau of Public Enterprises; government guidelines and directions; the
procedures followed for scrutinising investment funding, etc.
❖ The Committee recommends that the tenure of chief executives and full-time directors
should be five years subject to a probationary period of one year and removal at three
months' notice for unsatisfactory performance.
➢ I.e. Stability of Tenure
❖ It recommends that disciplinary proceedings against board-level appointees is the
responsibility of the government.
❖ The government should consult the chief executive in appointing part-time directors.
❖ Each enterprise management must submit to its board of directors, once a year, a
manpower budget, the training or retraining plans for all categories of employees,
particularly the managerial cadres.
➢ Budgeting (Gullick and Urwick).
❖ In the case of a financially viable non-core sector, there is no need for detailed scrutiny
of investment proposals.
❖ The bonus should be linked to an increase in productivity at constant prices, not to
financial profits and losses.
➢ Taylor’s Differential Piece Rate System.
❖ The Committee says that a mechanism has to be found to compensate the enterprise
for the non-commercial burdens imposed by the government.
➢ I.e. Economic Man is ignored and Social Man is preferred.
❖ There are certain objectives that are common and these should form the basis for
general performance criteria.

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 1

DAILY
CLASS NOTES
PUBLIC ADMINISTRATION

Lecture - 83
Public Sector Unit (Part 03)
 2

Public Sector Unit (Part 03)

Arjun Sengupta Committee Recommendation

 There are certain objectives that are common and these should form the basis for

general performance criteria.

 These general criteria may fall into four groups:

 Financial performance,

 Productivity and cost reduction,

 Technical dynamism,

 Effectiveness of project implementation

 The Committee suggests the following three criteria to evaluate the financial

performance of public enterprises;

 Gross margin on assets (for all enterprises)

 Gross margin=Sales minus Operating costs

 Net profit & net worth (for core sector and profit-making enterprises)

 Net profit = Gross Margin minus depreciation minus interest.

 Net worth = Equity plus reserves

 Gross margin on sales (for service enterprises)

 Gross margin divided by sales

 Monitoring costs and productivity of core sector PSUs.

 The Committee has recommended dismantling PIS (Performance Information

System) and moving towards MIS (Management Information System).

 PIS is used by government bodies to monitor the socio-economically relevant

behaviour of its PSEs (Public Sector Enterprises).

 It guides managers to make decisions in the national interest.

 A conventional MIS provides managers with a wealth of details on standard costs,

inventory levels and a multitude of other factors which help them to control costs.
 3

 The PIS, on the other hand, contains much fewer details in this area, being

concerned only with whether costs are rising or falling (and whether it is due to

price or quantity effects).

 The Committee recommends that the "performance audit" should be continued and

supplementary audit is not necessary for profitable non-core companies, once

common accounting policies are evolved.

 The Sengupta Committee endorses the occasional "postmortem", and "ex-post" studies

of the working of public enterprises by the Parliamentary Committee on Public

Undertakings.

 The committee recommends that all major projects should include technology

adaptation programmes and for this purpose, the government should consider

providing part of this expenditure as grants.

 Loss-making enterprises are a burden on the public exchequer and, therefore, they

cannot expect the same degree of autonomy as financially viable units.

 The Committee recommends capital restructuring by converting debt into equity.

 Unless the public sector share of the market is such that the concerned public

enterprise is the price leader, there is no point in the public sector alone charging a

price lower than those of other producers.

Forms of PSUs in India

 Departmental Undertakings

 Public Corporations

 Government Companies

 Management Control Board

Departmental Undertakings

 It is one of the oldest forms of PSUs.

 It is organised, financed and managed in the same way as any other department of

the Government.
 4

 Examples: Posts, Railways, Ports and Harbours

 Features

 The undertaking is a major sub-division or department of a Ministry in the

Central or State Governments.

 Union Government → Ministry → Departments (under Departmental head)

→ Departmental Undertakings.

 It is financed by the annual appropriations from the treasury and its revenues

are paid into the treasury.

 It is subjected to budget accounting and audit controls.

 Recruitment, appointment and conditions of service of its permanent staff are

similar to other government employees.

 The undertaking is under the departmental head who is answerable to the

Minister concerned.

 It enjoys sovereign immunity of the State.

 Merits

 It is effective in achieving the national objectives.

 It ensures maximum parliamentary control.

 The risk of misuse of public money is minimised.

 Enjoys monopoly

 I.e. there is no competition from other players.

 Demerits

 Lack of flexibility and initiative due to centralisation and red-tapism.

Bureaucratic control stifles (affects) venturesomeness (to try something new) and

risk-taking behaviour.

 Thus the focus is on

 Structure (classical theory),

 Showcases Theory X traits,

 5

 Formalism in functioning

 Maslow’s lower-order needs

 Herzberg Hygiene Factor of Motivation

 Strict adherence to rules and regulations causes delays in decision-making. Most

of the decisions taken are political. Bureaucratic controls and Political

interference curtail freedom of action.

 It results in conflict in the organisation and the resolution is based on Follett’s

concept of Domination.

 There is no incentive for hard work as career advancement is based on good

behaviour and allegiance to rules.

 I.e. Anti-Taylorism, Formalism, Pressure of Informal Groups.

 It cannot take long-term policy decisions. It cannot be run like a business because

of government controls.

 Decisions are taken based on Bounded rationality and incremental decision-

making.

 The lack of profit motive and absence of competition makes it unresponsive to

the needs of the society. Losses are borne by the treasury.

 I.e. complete disregard for 2 E’s (economy and efficiency).

 Closed System Approach

 Civil servants working here lack business acumen and professional skills.

 Generalists,

 Anti-Taylorism

 Against Follet’s concept of integration, functional authority etc.

 Much of the time is lost in answering parliamentary questions and other works

concerned with the legislature.

 Formalism

 Programmed work dominates the non-programmed work.

 6

 Less stability owing to instability in the tenure of ministers.

 Because of the high level of overlap between politics and administration.

 In many countries, departmentally run enterprises are being converted into public

corporations.

 Examples from India: Steel Plants, Oil and Natural Gas Commission, All India

Radio, BSNL.

 Necessity of Departmental Undertakings

 Matters involving secrecy: Department of Atomic Energy

 Where the government want to exercise strict control and supervision:

Broadcasting and communication

 To generate revenue for the public exchequer: Railways

 For providing essential services: Electricity and Water

Public Corporations

 The era of corporations started out in the USA following the Industrial Revolution.

 A public corporation is a corporate body created by a special Act of the Legislature.

 It is organised to achieve public purpose by law.

 The statutory corporation is a compromise between public interest and flexibility of

business operations.

 Public corporations are the result of the entry of the state into the field of business

and commercial enterprise.

 Features

 It is a legal entity.

 It is created by a separate Act of Parliament or State legislature.

 It is financially self-supporting.

 The government appoints the board of Directors, MD and Chairman.

 7

 Employees of the Corporation are appointed by the terms and conditions laid

down by the corporation itself.

 It is not subject to budgetary, audit and accounting regulations.

 They are created for a specific purpose.

 They are accountable to the government.

 They enjoy autonomy in day-to-day management.

 Service motive over profit motive


 1

DAILY
CLASS NOTES
Public Administration

Lecture – 84
Public Sector Unit (Part 4)
 2

Public Sector Unit (Part 4)

Public Corporations

❖ The era of corporations started out in the USA following the Industrial Revolution.
❖ A public corporation is a corporate body created by a special Act of the Legislature.
❖ It is organised to achieve public purpose by law.
❖ The statutory corporation is a compromise between public interest and flexibility of
business operations.
❖ Public corporations are the result of the entry of the state into the field of business and
commercial enterprise.
❖ Features
➢ It is a legal entity.
➢ It is created by separate acts of Parliament or State legislature.
➢ It is financially self-supporting.
➢ The government appoints the Board of Directors, MD and Chairman.
➢ Employees of the Corporation are appointed by the terms and conditions laid down
by the corporation itself.
➢ It is not subject to budgetary, audit and accounting regulations.
➢ They are created for a specific purpose.
➢ They are accountable to the government.
➢ They enjoy autonomy in day-to-day management.
➢ Service motive over profit motive

Differences Between Public Corporation and Departmental Undertakings

❖ Departmental undertaking is usually employed in state regulatory activities while the
public corporation system is employed in public business enterprises.
❖ Departments are mainly money-expending services while public corporations are
money-producing as well as money-expending.
❖ The department is headed by a Minister while the Corporation is headed by a Board
of Directors who are experts.
❖ Policies and day-to-day administration in Departments are decided by the Minister
while in a Corporation it is decided by the Board of Directors.
❖ Departments have financial control while corporations have financial autonomy.
❖ Public corporations operate on a self-supporting basis.
 3

❖ Personnel procedures vary in departments and corporations.

❖ There is a direct relationship between income and expenditure in corporations.
❖ Corporations are subject to commercial audits and not government audits.
❖ Corporations enjoy less political control compared to departments.

Merits of Public Corporation

❖ Enjoys administrative and financial autonomy and therefore can make long-term
policy decisions.
❖ It can adapt itself to the demands of the environment as it is free from government
regulations.
➢ I.e. open system approach
❖ It is not affected by political changes much.
❖ It can employ professionally trained experts.
❖ As it is established by law, the law can be changed to suit the situation.

De-merits of Public Corporation

❖ It is dependent on the State Legislature or Parliament to make changes.
❖ In actual practice, there is political interference in the functioning of corporations.
❖ In practice, the Board of Directors contain civil servants and appointees of politicians.
➢ This will lead to formalism and a lack of clarity in its functioning.
❖ In the absence of profit motive and competition, there is no incentive to work hard
and strive for efficiency.

Control over Public Corporations in India

❖ The government has the power to appoint the Chairman, MD and Board of
Management.
➢ This system is highly opaque.
❖ The government can remove any member from the Board.
❖ If the Board fails to carry out the purposes for which it was set up or fails to carry out
the directions of the government, the government can supersede the corporation and
appoint a new board.
❖ The government is authorised to frame rules and regulations for the working of the
corporation.
❖ The government can enquire into the workings of the corporation.
❖ The minister can issue directives to the corporation.
❖ Ministers can appoint financial advisers to the governing board.
 4

❖ Money matters beyond a threshold needs government approval.

❖ The government can fix the prices of goods and the rate of payment for services
rendered.
➢ Welfare dominates over profit.
❖ Parliamentary control is exercised through questions, adjournment motions, debates
and parliamentary committees.
❖ Committee on Public Undertakings examines the reports and accounts of the
corporations.

Government Companies

❖ A government company is a company in which not less than 51% of the paid-up share
capital is held by the Central Government or by any State Government or partly by
the Central Government and partly by one or more State Governments.
❖ Company can be regarded as a mixed enterprise as it contains both public and private
interests.
❖ Examples: BHEL, Hindustan Machine Tools Ltd., Oil and Natural Gas Commission.
❖ Its features are:
➢ It is registered or incorporated under the Companies Act and is also governed by
the Act.
➢ It has most of the features of a private company.
➢ It is a legal entity.
➢ Its management lies with the Board of Directors who are appointed by the
Government based on the extent of shares held by the Government.
➢ Its Articles and Memorandum of Association can be revised by the Government.
✓ Memorandum of Association→ establishes the relationship between the
company and its shareholders.
➢ They are exempted from the personnel, budgeting, accounting and audit laws, rules
and procedures applicable to government departments.
➢ Employees are recruited by the Company and they are not government servants.
➢ Their accounts are audited by an auditor appointed by the CAG.
➢ Annual Reports are tabled in the Parliament or State Legislature.
➢ It is accountable to shareholders and the governments that have a stake in it.
 5

Merits
❖ It is an autonomous body and can manage its own affairs.
❖ It enjoys flexibility and initiative.
❖ Theory Y traits.
❖ It is the only form of organisation by which the government can make use of the
managerial skills, technical knowledge and expertise of the private sector.
❖ Its work is similar to a private company.
❖ Management is cautious as its annual reports are tabled before the legislature.
❖ It can be created by an executive decision.

Demerits
❖ Interference from government.
❖ The Board of Directors consists of civil servants and officials from the Ministry.
❖ It erodes the Constitutional responsibilities which PSUs owe to the Parliament.
❖ It ends up being a proprietary concern of the government.
❖ There is limited public accountability.

Necessity
❖ When the government wishes to launch an enterprise with a certain private interest.
E.g.: Hindustan Steel Limited.
❖ When the government wants to promote and develop a field of economic activity. Eg:
Export Credit and Guarantee Corporation.
❖ When the government wants to control a company in the private sector without
nationalisation.
❖ When the government feels it necessary to initiate the process of development and
transfer the undertakings to the private sector once it is on its own legs.

Management Control Boards

❖ It is a special form of organisation adopted in India for the overall management of

river-valley projects.
❖ It is a set-up by the Central Government in association with the State Government
concerned.
❖ They are set up by the resolutions of the government.
❖ The control board has the responsibility for the management of the project including
its technical and financial aspects.
 6

❖ It exercises overall control over the project including settlement of disputes that may
arise on the distribution of water between the states.
❖ It consists of representatives from the Central and State Governments.
❖ The Chief Minister in charge is the Chairman of the Board.
❖ The Board is not a statutory body but an executive body.
❖ The board makes policy decisions and appoints committees to make routine operational
decisions.

Merits
❖ It provides unitary and uniform control over a river valley project.
❖ It provides a means for direct participation by both central and state governments.
❖ Quick decision making
❖ Effective control and direction before, during and after construction.

Demerits
❖ It is an administrative agency and therefore can function only in an advisory capacity.
❖ It is not legally accountable to the Parliament.
❖ The funds allocated are shown as loans to the State government and do not account
for the funds before the Public Accounts Committee.
❖ Effectiveness is weak where more than one State government is involved.
❖ Sometimes consultation with the control board is bypassed by the State government.
   
 1

DAILY
CLASS NOTES
Public Administration

Lecture - 85
Public Sector Unit (Part 5)
 2

Public Sector Unit (Part 5)

Case Study- 1

 Karnataka Solar Power Development Corporation:

 A joint venture Company with an equity stake of 50% each between Solar Energy
Corporation of India(SECI), GoI and Karnataka Renewable Energy Development
Limited.

 First solar park of the state in Tumkur for a cumulative capacity of 2000MW.

 World's second-largest solar park after Bhadla Solar Park in Rajasthan.

 KSDC helped in land acquisition where the farmers were asked to lease out their land
rather than sell.

 State-sponsored companies like these have taken the lead in improving the renewable
energy infrastructure in the country.

 With aggressive bidding costs, solar bids have reached as low as Rs 2.44 per kWh which
is in line with the subsidised price for large solar firms in the US.

 State-sponsored companies have also created massive “plug and play" parks taking
care of land acquisition and permits.

 This case study shows why there is a need for PSUs in India

 Multiple Goals are served here

 Environmental sustainability

 Delivery of Electricity

 Providing farmers with additional income

 Ensuring Balanced Regional Development

Case Study- 2

 Steel Authority of India Limited has brought down its debt of Rs 10,000 Crore in 3

months.
 3

 The availability of extra land will help the Company to revamp its finances further

(Land Bank).

 GIS-enabled Land Banks

 Focusing on increased volume brought down costs, clearing inventories and clearing the

scrap steel that was “lying around” has helped in achieving this feat.

 These all helped in bringing down the debt.

 Due to Digital India, every piece of information related to PSUs is digitally available

leading to fewer chances for maladministration.

Case Study- 3

 A 123-year-old department formed by the Government of India, PESO (Petroleum

and Explosive Safety Organisation) is responsible for monitoring and ensuring the

supply of medical oxygen to all states and Union Territories.

 PESO Kerala along with the State Health Department, has been monitoring the oxygen

needs of the state since March 2020, ever since the pandemic hit the country.

 They have been amping up the medical oxygen supply in the state accordingly.

 PESO saw to it that the private players involved in the manufacture of oxygen did not

divert it for industrial purposes.

 Advantages of PSUs

 They can keep a check and control over private activities in non-Programmed

situations.

 The cooperation between the central government, state government and private

players has helped in making Kerala have surplus oxygen at a time when other states

were struggling to meet the demand.

 4

 The Kerala Metals and Minerals Ltd (KMML) converted its gaseous industrial waste to

liquid medical oxygen to be used in hospitals.

 KMML is a Kollam-based public sector undertaking which manufactures Titanium

Dioxide.

Other Cases

 Government companies have lost almost fifty per cent of their efficiency in the last ten

years.

 ROCE (Return on Capital Employed) is a ratio that measures a company's

profitability and the efficiency with which its capital is employed.

 ROCE is calculated by dividing a company's earnings before interest and taxes

(EBIT) by the capital employed.

 The ROCE indicates how efficiently the long-term funds of owners and lenders are

being used.

 The higher the ratio, the more efficient the use of capital employed.

 The gradual decline in the ROCE of the CPSEs from 25.43 per cent in 2008-09 to

14.21 per cent in 2017-18 is a clear indication that either the CPSEs are losing their

monopoly status or their competitive edge.

 Between 2009-10 and 2018-19, net revenue from operations to capital employed

had reduced from 137.1% to 92.6%.

 5

 The net profit to capital employed reduced from 10.15% to 5.56%.

 Privatised CPSEs have been able to generate more wealth from the same resources

which confirms that privatisation unlocks the potential of CPSEs to create wealth.

 Three decades ago, Indians waited years to get a landline telephone connection from

the telecom department.

 Today India has the world's highest per-capita data consumption and cheapest data

rates.

 A fine example of the State exiting and allowing private competition.

Autonomy, Accountability and Control

 Autonomy implies the operational freedom to make quick decisions with minimum

political interference, red-tapism and formalism.

 Public Accountability implies the answerability for the results of the undertaking to the

community.

 The need for public accountability arises due to the following:

 To ensure that the public undertakings are operated in the interests of the public.

 To ensure that the public money invested in these undertakings is properly utilised.

 To serve as a check on the misuse of autonomy by managers.

 To ensure that the undertakings use their monopoly power for the national welfare.

 Accountability and Control may sound similar but control gives very little room for

individuality or innovation.

 Control: Every action requires prior approval and only with the sanction of a higher

authority any decision can be made.

 Thus officers are always at the mercy of “orders”.

 "You are only as good as the order you receive".

 Accountability while following procedures still encourages innovation within the limits.
 6

 Bringing a balance between all the three is very difficult and this is evident from the

countless "conflicts" that exist in organisations.

 There are basically two ways of controlling an enterprise.

 One can, either, hold an enterprise responsible for results (also known as Management

by Objectives).

 Or, where goals are difficult to specify, one can control the enterprise by controlling

procedures and processes.

 The latter is achieved by laying down detailed rules and procedures for monitoring.

 This requires a great deal of intervention in the operations of the enterprise and, hence,

leads to allegations of lack of autonomy.

 However, when autonomy is granted it is often abused as the goals are not clear. That

is, accountability suffers.

 This, in turn, invites a cut-back in autonomy and takes the enterprise to "square one",

i.e., less autonomy but more accountability.

 This classic "autonomy pendulum" can be observed in public sectors all over the world

since most governments find it hard to specify goals.

 The situation in India is, therefore, not unique.

 If one can improve the "quality of control" by specifying goals and objectives clearly and

developing performance information and evaluation systems to monitor public

enterprises, this dilemma would disappear.

Parliamentary Control

 Budget Debate:

 It covers the working and performance of the public sector enterprises.

 The budget of PSE can be increased only by the vote of the Parliament.

 Questions:
 7

 The first hour of every day during a session is meant for asking questions.

 Answers are given orally or in the written format.

 Ministers however take refuge under "questions are related to day-to-day

administration, hence cannot be answered under the interest of autonomy.”

 Discussion on the working of the undertakings:

 It is a practice to debate the workings of PSEs.

 There is no fixed schedule for such debates.

 Annual Reports:

 Public corporations by law are supposed to submit their respective annual reports

on their policies, activities and programmes.

 The report is submitted along with the report of the auditors and is laid before

both the Houses of Parliament.

 However, most of these reports provide sketchy details.

 Information is generally concealed.

 Parliamentary Committees

 The Committees which exercise control over PSEs are the Public Accounts

Committee, the Estimates Committee and the Committee on Public Undertakings.

 Public Accounts Committee (PAC)

 The main function of the PAC is to examine the reports of the CAG and

ascertain that the money granted by the Parliament has been spent by the

Executive Government within the scope of the demand.

 It extends even to Public Corporations.

 Till 1964 PAC and EC looked into the affairs of public undertakings.

 Since 1964 the Committee on Public Undertakings has been looking into the works

of public undertakings.
 8

 Estimates Committee

 Constituted for the first time in 1921.

 All members are from the Lok Sabha.

 A minister cannot be elected as a member of the Committee.

 Examines the Estimates included in the Budget and suggests economies in the

Public Expenditure.

 Suggest alternative policies.

 They examine the budget only after it has been tabled in the Parliament thus

reducing the effectiveness of the Committee (post-mortem work).

 It cannot question policies laid down by the Parliament.

 Recommendations are advisory.

 It doesn't examine all the ministries and departments.

 Lacks expert assistance from bodies like CAG.

 Committee on Public Undertakings

 Examines the report and accounts of the Public Undertakings.

 It examines the business practices and commercial practices of public

undertakings.

 It is barred from examining major policy decisions of the government and also

from interfering in day-to-day matters of administration.

Executive Control

 The necessity of arming the ministers with certain powers of control over public

enterprises has been clearly realised everywhere.

 It is only through ministerial directives that the enterprise can be brought in line with

the requirements of current policy and coordinated with the national plan.

 The absence of ministerial control can lead to confusion.

 9

 Corporations and Companies enjoy a greater degree of autonomy when compared to

departmental undertakings.

 The Department is completely integrated with the Government and cannot claim any

autonomy from the control of the executive, as a legal right.

 A minister is completely responsible for the departmentally managed state enterprise.

 Ministerial control over public corporations may be established through the following:

 Appointing members of the governing board. No qualifications are laid down for

the appointees.

 Ministers have the power to remove the directors or members of the governing

body for reasons mentioned in the Act.

 Ministers have the power to issue to the Corporation's directives on matters of

general policy. In case of a dispute, the decision of the Government is final. However,

the directives of the Minister should not interfere with the internal day-to-day

working of the Corporation.

 The Minister's approval is necessary for the Corporation's schemes and programmes.

 The Minister's approval is required for Capital investments and borrowings.

 The Ministers have the power to seek the necessary information from the Corporations.

 The accounts of the Corporations have to be kept in a form settled in consultation with

the Government or Auditor General and the audit of the account is usually done by

auditors appointed by the Minister or the Auditor General.





 1

DAILY
CLASS NOTES
Public Administration

Lecture - 86
Autonomy, Accountability
and Control
 2

Autonomy, Accountability and Control

The Reality of the Trio

 The Government has granted enhanced powers to the Boards of profit-making

enterprises under various schemes like Maharatna, Navratna and Miniratna.

 The main objective of the Maharatna scheme which was introduced in 2010 is to

empower mega CPSEs (Central Public Sector Enterprises) to expand their operations

and emerge as global giants.

 The Government introduced the Navratna scheme, in 1997, to identify Central Public

Sector Enterprises (CPSEs) that had comparative advantages and to support them in

their drive to become global giants.

 Under this scheme, the Boards of Navratna CPSEs have been delegated enhanced

powers in the areas of

 Capital expenditure,

 Investment in joint ventures/subsidiaries,

 Mergers & acquisitions,

 Human resources management,

 In October 1997, the Government decided to grant enhanced autonomy and

delegation of financial powers to some other profit-making companies subject to

certain eligibility conditions and guidelines to make them efficient and competitive.

 These companies, called Miniratnas, are in two categories, namely, Category- I and

Category II.

 With the increased controls that were experienced in the pre-LPG era the cry for

autonomy seems to be the next logical conclusion in the clamour (confusion) for

improving the functioning of CPSEs.

 3

 But the path chosen for achieving the above objective seems to be pinned solely on
privatisation and disinvestment.

 It seems that the narrative of accountability and control has been watered down
considering the mounting losses of some lacklustre CPSEs.

 'Disinvestment and privatisation' need not be the only answer to reform the public
sector companies.

 They can be rejuvenated and transformed into global champions if freed from the
stifling controls of insipid government machinery and by de-politicisation.

 It further articulates that the government's roles as a majority stakeholder, policy-

maker, and regulator should be detached.

 In the landscape of the public sector in India, the government's role as the owner of
the PSEs (Public Sector Enterprise) overlaps with its role as their regulator and
policymaker.

 The efficiency, objectivity, and profitability [Politicians and Bureaucracy behaving as a

social man] of the PSEs suffered as a result of no fault of their own, and they all along
have been blamed unfairly for mismanagement and inefficiency, for which the
government is equally responsible.

 Despite the veneer (thin covering) of autonomy given to them the government never
refrains from interfering with every aspect of their functioning, often at the cost of
their profitability.

 Bureaucratic and political control as well as interference continue to encroach upon

their autonomy thus affecting efficiency and stymying growth.
 4

 Once touted as the "Timekeepers to the Nation" HMT sent the last of its employees for

voluntary retirement in 2016.

 This was seen as the result of excessive political control and lack of adaptation to the

changes that happened in the Indian Economy post-LPG (Liberalisation, Privatisation

and Globalisation) reform.

 I.e. failure to infuse Comparative Public Administration (CPA).

 Another case cited is the story of The Hindustan Fertilizer Corporation which employed

1200 people but did not produce anything as the Eastern European machinery did

not fit the building.

 Everybody acted as if they were working and the political bosses did not feel it

necessary to revamp the situation till LPG came knocking.

 The plant was closed in 1986 and shut down in 2002.

 In short vast infrastructure was left unutilised and abandoned.

 This clearly necessitates autonomy and two-way accountability: Not just PSEs being

accountable but even the government must answer to the public as to why an obsolete

PSU was being run if it was not producing anything.

 The inward-looking policies and the somewhat closed economy till 1991 helped CPSEs

even though they lacked autonomy and were excessively controlled by the formidable

duo of bureaucrats and politicians.

 Criticism of Bureaucracy.

 The LPG era saw CPSEs gradually being given more autonomy as they were now listed

in stock exchanges, competing with private players for space, accounting architecture

was changed, budgetary support was withdrawn, workers were being laid off, etc.

 But at the same time, the government retained its control over them by holding the

majority stake.
 5

 This showed that accountability and autonomy need not be viewed as "Amensalism"

but can be seen as a symbiotic relationship.

 But for most CPSEs, this was not to be.

 Rather CPSEs post-1991 saw themselves at a crossroads (confused).

 On one side they had to improve corporate governance, upgrade the skills of their

employees, update their technology, and align their accountability norms and Human

Resources policies with the demands of the market.

 On the other side, excessive Bureaucratic Control (not accountability) that did not

understand the vagaries of market economics increased their trouble.

 Thus most of the CPSEs started functioning in their comfort zone as they didn't

want to antagonize their superiors. This led to status-quoism.

 Bureaucratic appointments were based less on merit and more on "Quid Pro Quo". (“I

scratch your back, You scratch my back”)

 The resultant conflict between the management and ownership prevented CPSEs from

being run as competitive organisations that are run by professional boards.

 This affected decision-making and resulted in the lacklustre performance of CPSEs.

 This resulted in long gestation periods for projects, poor project appraisal, and

improper feasibility study of projects which further led to cost and time overruns.

 E.g.- Hindustan Aeronautics Limited took more than 3 decades to manufacture

Light Combat Aircraft Tejas.

 Marked improvement was seen in the performance of CPSEs post-1990 because of

improved autonomy.

 The reinvention of CPSEs (thanks partly to the “Ratna Culture” → i.e. Maharatna,

Navratna and Miniratna) saw their profits and performance improving.

 But most of these were cosmetic autonomy as the government continued to exercise

control and took decisions that were not sound administratively or economically.
 6

 The cry for autonomy is further justified by the classic case of Air India.

 The merger between Indian Airlines and Air India by the Ministry of Civil Aviation in

2007 was a mockery of autonomy as discretion was not given to concerned officials

before going ahead with the merger.

 This is evident from the fact that the combined losses shot up by more than 10 times,

from Rs 770 crore in 2006-2007 to Rs 7200 crore in 2008-09.

 Rumours of kickbacks (bribes) being received by politicians and bureaucrats reiterated

the fact that the need of the hour is autonomy and not excessive "Executive" control

in the guise of accountability.

Need for Autonomy

 Overcapitalisation PSEs

 Under utilisation of capacity

 A huge inventory list than required

 Increasing Overheads - Especially maintaining the township for staff.

 Overstaffing - Increased pressure of salary and pension

 No clear pricing policy

 High cost of production

 Inefficiency

 Over-centralisation

 Uninspiring leadership that encouraged "routine" rather than "innovation".

 Theory X.

 Poor motivation and morale among workers.

 Political and Bureaucratic interference in day-to-day affairs.

7
8
 9

Memorandum of Understanding (MoU)

 A Memorandum of Understanding (MoU) is a negotiated agreement between the

administrative Ministry/ Department and the management of respective Central Public
Sector Enterprises (CPSEs).

 Under this, CPSEs undertake to achieve targets set in the MoU normally at the
beginning of the year.

 In MoU evaluation, the performance of CPSEs on selected parameters is compared with

the determined targets.

 The inclusion of an MoU helps make the management of the enterprise accountable to
the government.

 All CPSEs (Holding as well as Subsidiaries) are required to sign a MoU.

 The holding CPSEs sign the MoU with their Administrative Ministries/ Departments,
while the subsidiaries sign the MoU with their respective holding companies.

 The number of MoU-signing CPSEs has decreased over the period due to various reasons
such as the closure of CPSEs, merging of the subsidiaries with holding companies and
their MoU on a consolidated basis, exemption from the signing of MoU for sick/ under
closure/ under-construction/ non-operational CPSEs or other grounds as per the
recommendation from the Administrative Ministry.

 Institutional Arrangements for Implementation of MoU Policy:

 High Powered Committee (HPC):

 The High Powered Committee is the Apex body under the MoU system for
laying policy guidelines.
 10

 HPC is headed by the Cabinet Secretary and comprises the following members:

● CEO (NITI Aayog),

● Finance Secretary,

● Secretary (Expenditure),

● Secretary (Statistics & Programme Implementation),

● Chairman (Public Enterprises Selection Board),

● Chief Economic Advisor (Economic Affairs) and

● Secretary (DPE).

 Inter-Ministerial Committee (IMC):

 The IMC finalise the sectoral template/CPSE-wise MoU parameters.

 The purpose of sectoral templates is to select and identify the parameters and
weightages relevant to the core business activities in that sector and or CPSE.

 IMC will also set the requisite levels of performance against each of the
parameters, so decided, as benchmarked targets.

 The IMC comprises the

 Secretary (DPE) as Chairman,

 a Representative of the Chief Economic Advisor (Department of Economic

Affairs),

 Department of Expenditure, Ministry of Statistics and Programme

Implementation,

 NITI Aayog and Secretary/ representative of the Administrative Ministry

as a special invitee and

 any other expert co-opted on a need basis.





 1

DAILY
CLASS NOTES
Public Administration

Lecture - 87
Autonomy, Accountability
and Control (Part 02)
 2

Autonomy, Accountability and Control (Part 02)

Way Forward

 Based on the recommendations of the HPC, the framework for the MoU System using

an online dashboard for the target setting and performance evaluation of CPSEs has

been put in place and made applicable from FY 2021-22 & onwards.

 The parameters included in the revised MoU process are market-oriented, reflecting

the shareholder's interest in terms of growth in revenue, EBITDA margin, return on

net worth, return on capital employed, asset turnover ratio, and market capitalization.

 EBITDA margin→ measure of a company's operating profit as a percentage of its

revenue.

 Adequate weightage has also been given to production-linked parameters pertaining

to CPSE's core operations.

 All the parameters are quantifiable and verifiable from the documents in the public

domain.

 Besides, certain government priorities/ programmes such as procurement from

MSMEs, CSR (Corporate Social Responsibility), etc. have also been included for

compliance by CPSEs, the non-compliance of which would result in a deduction of

marks.

 The revised MoU framework also provides for benchmarking based on growth and

emerging trends of the sector, the vision that has been worked by the Ministry about

the sector, and peer performance.

 The CPSEs will be allotted marks proportionately for the achievement of the target

figure for each parameter.

 Score on all parameters would be added to arrive at the MoU score.

 The rating system of CPSEs based on the MoU score is as follows

 3

 The ratings of CPSEs have decreased over the period of five years.

 The reason for this may be

 Closure of CPSEs

 Non-Operational of CPSEs

 Privatisation

 Under-Construction

 CAPEX

 The Department of Public Enterprises monitors and reviews the capital projects

and expenditures in CPSEs.

 CAPEX means any expenditure incurred towards the acquisition/ addition of fixed

assets or projects that on completion would form a part of fixed assets.

 It may be for expansion, modernisation or diversification.

 CAPEX may be decided on the basis of viable projects available for expansion,

modernisation or diversification, cash and bank balance or parked funds, net

worth, borrowings, etc.

 4

 Based on the figures provided by the Administrative Ministries and the Statement-

26 of Budget document of the Union Government, targets for CAPEX are

prescribed in the MoUs of CPSEs.

 In addition to this, CAPEX for select CPSEs having annual CAPEX targets of more

than

 Rs.100 Crore from FY 2022-23 is also compiled and submitted to the Prime

Minister's Office and Department of Economic Affairs on a monthly basis.

 This has led to a decrease in the instances of ministerial interference.

 Procurement through GeM (Government-e-Market) Portal

 GeM, hosted by the Directorate General of Supplies & Disposals (DGS&D) is a

paperless, cashless, & system-driven e-marketplace that enables procurement of

common-use goods & services with minimal human interface.

 It is a dynamic, self-sustaining and user-friendly portal for procurement by offices

of various Government Ministries & Departments, CPSEs & autonomous bodies of

the Central Government.

 DGS&D developed GeM with the technical support of the National e-Governance

Division (Ministry of Electronics & Information Technology).

 The intended benefits of the portal are listed below:

 Transparency:

 GeM eliminates human interface in vendor registration, order placement,

and payment processing to a great extent.

 Being an open platform, it offers no entry barriers to bona fide suppliers

who wish to conduct business with the Government.

 At every step SMS and e-mail notifications are sent to the buyers, the heads

of their organisations, paying authorities and sellers.

 Efficiency:
 5

 Direct purchase on GeM can be done within minutes and the entire process

is online and end-to-end integrated with online tools for assessing price

reasonability.

 For procurement of higher-value products & services, a transparent and

efficient bidding / Reverse Auction (RA) facility is available on GeM.

 For creating a bid / Reverse Auction (RA), buyers do not need to enter

their own technical specifications as they have been standardised on GeM.

 The bid / RA can be created expeditiously and finalised within a minimum

of seven days.

 Security and Safety:

 GeM is a secure platform and all the documents on the portal are e-signed

at various stages by buyers and sellers.

 The antecedents of suppliers are verified online and automatically through

MCA-21, Aadhaar and PAN databases.

 Furthermore, third-party assessment of suppliers is conducted by the

Securities and Exchange Board of India-empanelled credit rating agencies.

 Savings:

 The transparency, efficiency and ease of use of GeM have resulted in a

substantial reduction in prices on the portal compared with the tender,

rate contract and direct purchase rates.

 Average prices on GeM are lower by at least 15-20% and in some cases

even up to 56%.

 GeM also carries out demand aggregation for items to be procured by

various Central/State Government departments.

 Inclusivity in the Business Value Chain:

 Prosperity of the MSME sector is crucial for the growth of our country.
 6

 The sector fuels the economy by providing employment and income to

millions of people who work for small, local businesses as well as in start-

ups.

 GeM expects to improve the ease of doing business for such small and

medium enterprises and provide inclusivity by giving them a fair and

transparent platform to participate in business activities generated from

Government sources.

Interconnected Topics from Paper 1

Organisation and Method

 Also used synonymously with Organisation and management.

 It originated from the pioneers of scientific management that is Taylor and Gilbreth

and is the base for this technique.

 It is the systematic examination of activities in order to improve the effective use of

human and other material resources.

 It is highly technical and is conceptualised and implemented by the specialists/top-

level officers of an organisation to eliminate delay, wastage, overlapping, etc.

 It is an in-house mechanism that is undertaken to accommodate and implement

administrative changes and reforms in Organisation and methods.

 The basic steps involved in O&M (Organisation and Methods) are:

 Select the area/process that requires attention (done by the strategists of the

organisation).

 Record the current situation prevailing in it.

 Examine and analyse the existing scenario.

 Develop, design and evaluate alternative solutions and recommend improvement

opportunities.

 Implement the chosen solution.

 7

 In the present era, the Laying-off process → Save Money: Brings down the

unwanted steps".

 Maintain and monitor the implementation of that solution to ensure adherence

and benefits and whether it is effective or not.

 The details/techniques used to follow these steps in O&M are:

 Work Study

 The scientific and systematic study of the work being done or to be improved

(refer to Taylor's scientific management).

 Work Study's types or sub-techniques are:

 Method Study: Related to the tools and techniques as well as the path being

used in the work which is being studied.

 It is a systematic scrutinizing of all aspects like what, when, how, why,

where, who etc studied of the work case in order to get a proper

understanding of the same and develop a suitable strategy for

improvement to avoid delay and wastage of resources.

 Work Measurement: It is a supplement of the Method study where a study

is done on the type of work at hand and its content.

 Organisational analysis: It takes a holistic view by placing the work at hand

as an integral part of the organisation and its contribution to the working

of the whole organisation and how it affects the same.

 It helps understand how a single improvement in the work at hand will

affect the entire organisation and how other work will automatically

improve in tandem with this one, etc.

 Negative and positive effects, both are seen.

 Work management
 8

 It is the integrated process that enables the manager to access efficient ways

to do a particular work.

 It strategies in detail the work within the organisation to make work simpler,

better and more efficient.

 It's important sub-techniques are:

 Task-based design: It is the detailed outline of the overall work of the

organisation in the form of a simple work chart.

 Work queue: Substantially arranging various activities within a particular

task. It also includes the 'to-do' list of the organisation.

 Work management Groups: It is the group in charge of outlining tasks,

queueing the work, performance evaluation, setting standards, etc.

 Work management can be taken up at both the upper as well as mid or

lower levels of an organisation/administration and takes into account not

only the work at hand but also the personnel in charge the skills they possess

and what is required. Thus it is a very extensive as well as significant

method.




 1

DAILY
CLASS NOTES
Public Administration

Lecture - 88
Related to Paper 1
 2

Related to Paper - 1

Work management

 It is the integrated process that enables the manager to access efficient ways to do a

particular work. It strategises in detail the work within the organisation to make work

simpler, better and more efficient.

 Its important sub-techniques are:

 Task-based design: It is the detailed outline of the overall work of the organisation

in the form of a simple work chart.

 Work queue: Substantially arranging various activities within a particular task. It

also includes the 'to-do' list of the organisation.

 Work management Groups: It is the group in charge of outlining tasks, queueing

the work, performance evaluation, setting standards, etc.

 Work management can be taken up at both the upper as well as mid or lower

levels of an organisation/administration and takes into account not only the work

at hand but also the personnel in charge the skills they possess and what is required.

Thus it is a very extensive as well as significant method.

Forward Engineering Process

 It advocates that along with contemporary change, an organisation/administration

must also look into the future and anticipate changes to remain ahead of others and

that is to be done through the

 BOW (Barriers, Obstacles and Weaknesses) analysis,

 CINE MATRIX (Controllable Internal factors and Non-controllable external factors)

analysis,

 SWOT ( Strengths, Weaknesses, Opportunities and Threats) analysis,

 SPOT (Space, Pace, Opportunities and Threats) analysis.

 3

Management Aid Tools- Network Analysis, MIS, PERT, CPM

 Management aid tools are those tools/techniques that help in work simplification and

efficiency of management processes.

 Network Analysis:

 It is a method for studying communication and socio-technical networks within a

formal organization.

 It is a quantitative descriptive technique for creating statistical and graphical

models of the people, tasks, groups, knowledge and resources of organizational

systems.

 It is based on social network theory and more specifically, dynamic network

analysis.

 It helps identify local and global patterns, locate influential entities, and examine

network dynamics.

 Management Information System (MIS):

 It is an integrated entity/system of information technology where interaction

between different parts/departments/projects of an organisation is enabled for

better and more efficient management practices (POSDCORB and others) and skills

to solve problems that occur between the parties obstructing work and through

communication systematically managed and stored information/knowledge.

 It helps in automation.

 MIS helps managers extract information about the organisation and its different

departments for coordination in order to carry out their functions and

responsibilities in a cost-effective and time effective as well as efficient manner.

 It helps the managers in conducting simulations and decision-making as well.

 4

 MIS come in different formats suitable to the particular department it is used and

the nature of work in question like Accounting MIS, Human Resources MIS,

Financial management MIS, Marketing and Sales MIS, Customer Service MIS, etc.

 The top management however has models of MIS that incorporate all departments

and processes of the organisation for their analysis.

 For Example:

 The Reserve Bank of India (RBI) has launched the Centralised Information

Management System (CIMS) to bring change in its information management

framework, for handling the massive data flow, aggregation, analysis, public

dissemination and data governance.

 The system uses state-of-the-art technology to manage big data and will serve

as a platform for power users to carry out data mining, text mining, visual

analytics and advanced statistical analysis connecting data from multiple

domains such as financial, external, fiscal, corporate and real sectors as well as

prices.

 In the short to medium term, it would lead to a paradigm shift in the Reserve

Bank's economic analysis and supervision, monitoring and enforcement across

multiple domains.

 The new system, which is RBI's next-generation data warehouse, is starting

with reporting by scheduled commercial banks and will be gradually extended

to urban cooperative banks (UCBs) and non-banking financial companies

(NBFCs).

 The Governor emphasised that RBI treats data as a public good and is

disseminating increasingly more data in the public domain for use by analysts,

researchers and the general public.

 The central bank's preference is for general dissemination over meeting

individual requirements.
 5

 MIS helps in decentralisation, democratisation, and participation by all through

proper management of information and its sharing subject to the condition that

the information is accurate and updated from time to time and the personnel are

educated and trained regarding it and then asked to use it to harvest all its

benefits.

 Performance Evaluation and Review Technique (PERT)

 It is a relatively new planning and control system designed to help top management

with planning, research, problem-solving, decision making and control of

organisational processes.

 It analyses the tasks involved in completing a particular project, especially the

minimum time needed to complete the same.

 It is quite similar to CPM (Critical Path Method).

 It is probabilistic as it is based on the theory of probability that an event or situation

or activity is likely to happen/be completed in future if things are done and

followed in the very same rigid way as anticipated or designed, but not 100%

surety.

 Disadvantages

 There can be potentially hundreds or thousands of activities and individual

dependency relationships and it is not possible to ensure things to happen the

way it is designed as we are dealing with human beings and there can be any

amount of natural as well as induced disasters in between.

 PERT is not easily scalable for smaller projects.

 I.e. it is not financially viable.

 The network charts tend to be large and unwieldy, requiring several pages to

print and special size paper.

 6

 The lack of a time frame on most PERT/CPM charts makes it harder to show

status although colours can help (e.g., specific colour for completed nodes).

 When the PERT/CPM charts become unwieldy, they are no longer used to

manage the project.

 However, if planning is done well and all pessimistic and optimistic factors are

studied as well as a most likely time design based on the experience of PERT can

help overcome the above.

 Critical Path Method (CPM)

 It was brought out by the chemical company Dupont in the 1950s. It is essential

for effective project management.

 It is an algorithm for scheduling a set of project activities.

 It was originally brought out for plant construction and maintenance purposes but

now is used in various projects of different natures like aerospace and defence,

construction, engineering, software development, etc.





 1

DAILY
CLASS NOTES
Public Administration

Lecture - 89
Related Topics from Paper 1
(Part 02)
 2

Related Topics from Paper 1 (Part 02)

Critical Path Method (CPM)

 It was brought out by the chemical company Dupont in the 1950s. It is essential for

effective project management.

 It is an algorithm for scheduling a set of project activities.

 It was originally brought out for plant construction and maintenance purposes but now

is used in various projects of different natures like aerospace and defence, construction,

engineering, software development, etc.

 The essential technique for using CPM is to construct a model of the project that

includes the following:

 A list of all activities required to complete the project (typically categorised within

a work breakdown structure),

 The time (duration) that each activity will take to complete, and

 The dependencies between the activities.

 Using these values, CPM calculates the longest path of planned activities to the end of

the project, and the earliest and latest that each activity can start and finish without

making the project longer.

 This process determines which activities are "critical” (i.e., on the longest path) and

which have "total float" (i.e., can be delayed without making the project longer).

 In project management, a critical path is the sequence of project network activities

which add up to the longest overall duration.

 This determines the shortest time possible to complete the project.

 Any delay of an activity on the critical path directly impacts the planned project

completion date (i.e. there is no float on the critical path).

 3

 A project can have several, parallel, near-critical paths.

 An additional parallel path through the network with a total duration shorter than

the critical path is called a sub-critical or non-critical path.

 Compared to PERT, it is deterministic and not probabilistic as it does not look into

circumstantial factors while completing activities of a particular project, but is only

bothered about specifying how an activity is to be done and within what time it should

be done.

 Advantages of CPM:

 It helps in scheduling, monitoring, and controlling projects.

 The project manager can determine actual dates for each activity and compare

what should be happening to what is taking place and react accordingly.

 E.g.- E.Shreedharan of Delhi Metro was well known for completing projects

before the due date.

 The activities and their outcomes can be shown as a network.

 Displays dependencies to help scheduling.

 Evaluate which activities can run parallel to each other.

 Determines slack and float times.

 Widely used in industry.

 4

 Can define multiple, equally critical paths.

 CPM determines the project duration, which minimises the sum of direct and

indirect costs.

 Disadvantages of CPM:

 CPM can be complicated, and complexity increases for larger projects.

 Does not handle the scheduling of personnel or the allocation of resources.

 The critical path is not always clear and needs to be calculated carefully.

 Estimating activity completion time can be difficult.

CPM vs PERT- An Analysis

 Both CPM and PERT (Program Evaluation and Review Technique) provide the user

with project management tools to plan, monitor, and update their project as it

progresses.

 Similarities between PERT and CPM:

 Both follow the same steps and use network diagrams.

 Both are used to plan the scheduling of individual activities that make up a project.

 They can be used to determine the earliest/latest start and finish times for each

activity.

 These can be termed as features of Neo-Taylorism

 Differences between PERT and CPM:

 PERT is probabilistic whereas CPM is deterministic.

 In CPM, estimates of activity duration are based on historical data.

 In PERT, estimates are uncertain and we talk of ranges of duration and the

probability that an activity duration will fall into that range.

 CPM concentrates on the Time/Cost trade-off.

 5

Impact of Liberalisation and Privatisation

Miniratna- II Miniratna- I Navratna Maharatna

Should have Should have made a Miniratna category-1 Having Navratna

made a profit profit for the past status, Schedule A status.
for the past three years CPSE, with excellent or
three years continuously. "very good' MoU rating
continuously in three of the last five
years.

Should have a  Pre-tax profit A score of at least 60  Listed on an Indian

Positive net of 30 crores or in six selected stock exchange with
worth more in at least performance minimum
one of the three parameters. prescribed
years. shareholding under

 Positive net SEBI regulation.

worth  Average annual

turnover of at least
25,000 crores,
average networth
of 15,000 crore
and average net
profit of 5,000
crores in the past
three years.

 Significant global
presence/
international
operations.
 6

Powers to Powers to Board Powers to Board Powers to Board

Board  To incur capital  Incur CAPEX  Incur CAPEX
 To incur expenditure on without any without any
capital new projects, monetary ceiling. monetary ceiling.
expenditure and  Enter into  Enter into
on new modernisation. technology JV or technology JV or
projects, purchase of strategic alliances. strategic alliances.
modernisati equipment up  Obtain by purchase  Obtain by purchase
on, and to 500 crores, or other or other
purchase of or equal to their arrangements, arrangements,
equipment net worth technology and technology and
up to 250 (whichever is know-how. know-how.
crores, or lower).
 Effect  Effect
50% of their  Authority to organizational organizational
net worth undertake restructuring. restructuring.
(whichever is equity
 Structure and  Structure and
lower). investment to
implement schemes implement schemes
 Authority to establish JV and
related to related to personnel
undertake subsidiaries in
personnel and and HRM.
equity India up to 500
HRM.  Raise debt from
investment crores in any
 Raise debt from domestic capital
to establish project or up to
domestic capital markets and
JV (Joint 15% of the
markets and international
Ventures) networth of
international markets.
and CPSE (overall
markets.  The Board of
subsidiaries limit of 30% of
 The Board of Directors have the
in India up all investment
Directors have the power to undertake
to 250 in JV and
power to M&A.
crores in any subsidiaries).
undertake Mergers  CMD is empowered
project or up
and Acquisitions. to approve
 7

to 15% of  Board of  CMD is empowered international

networth of Directors have to approve business.
CPSE the powers of international  Holding companies
(overall limit M&A. business tours. are empowered to
of 30% of all  Holding companies transfer assets,
investment are empowered to float fresh equity,
in JV and transfer assets, and divest
subsidiaries). float fresh equity shareholding.
and divest  Investment
shareholding. decisions up to
 Investment 5000 crores for
decisions up to 15% of NW in one
1000 crore (or project up to a total
15% of NW) in one of 30% of NW in all
project up to a projects combined.
total of 30% of NW  Acquire raw
in all projects material assets
combined. abroad through
 Acquire raw M&A or investment
material assets in a JV subsidiary
abroad through up to 5,000 crores
M&A or (or 25% of NW) in
investment in one project up to a
JV/subsidiary up to total of 40% of NW
3.000 crores ( 25% in all projects
of NW) in one combined.
project up to a  Create below
total of 40% of NW Board-level posts
in all projects up to the E-9 level.
combined.
 8

Corporate Governance

 Corporate governance refers to the values and guidelines followed by an organization

for its effective functioning.

 The concept of corporate governance has gained global prominence over the years,

primarily with the focus on monitoring, controlling and guiding the decision-making

of the top leadership of a company.

 During the era of globalization, Indian corporations were pushed out of their comfort

zones.

 To survive and prosper internationally, they had to adapt their claustrophobic Indian

Corporate Governance models, to better attract global talent and customers.

 A milestone in corporate governance was achieved when SEBI (Securities and Exchange

Board of India) was established and given statutory powers in 1992 by the Indian

government.

 In the Indian context, certain public sector and private sector organizations have

established effective corporate governance mechanisms.

 The Punjab National Bank's fraudulent issuance of LoUs (Letters of Undertaking) has

exposed the systemic chinks in Indian banking sector and the dual need for technology

and strong corporate governance to check frauds.

 The major impediment in achieving the desired level of competitiveness is the

governance deficit due to certain key issues which require immediate attention. Some

of these are:

 Autonomy of the Board

 A competent and autonomous Board is important for the success of any

corporate.
 9

 However, Ministerial diktats may, at times, influence the Board agenda in the

case of PSUs and take precedence over strategic and commercial

considerations.

 PSUs have no role even in the selection of independent directors.

 Without full operational and financial autonomy, it is difficult to have a

structured performance evaluation system for the Board members and fix

accountability.

 Ownership policy

 There is no ownership policy in place.

 It is needed to clearly lay down the role and responsibilities of the Government

towards minority shareholders and other stakeholders such as employees,

vendors, customers and communities.

 The Organisation for Economic Cooperation and Development (OECD) states

that "the government should develop and issue an ownership policy that defines

the overall objectives of state ownership, the state's role in corporate

governance of state-owned enterprises and how this policy is likely to be

implemented."

 The ownership policy should be disclosed and communicated to fix

accountability.




 1

DAILY
CLASS NOTES
PUBLIC ADMINISTRATION

Lecture - 90
Impact of Liberalisation and
Privatisation
 2

Impact of Liberalisation and Privatisation

Impact of Liberalisation and Privatisation

❖ The major impediment to achieving the desired level of competitiveness is the

governance deficit due to certain key issues which require immediate attention. Some

of these are:

➢ Autonomy of the Board

✓ A competent and autonomous Board is important for the success of any

corporate.

✓ However, Ministerial diktats may, at times, influence the Board agenda in the

case of PSUs and take precedence over strategic and commercial

considerations.

✓ PSUs have no role even in the selection of independent directors.

✓ Without full operational and financial autonomy, it is difficult to have a

structured performance evaluation system for the Board members and fix

accountability.

➢ Ownership policy

✓ There is no ownership policy in place.

✓ It is needed to clearly lay down the role and responsibilities of the

Government towards minority shareholders and other stakeholders such as

employees, vendors, customers and communities.

✓ The Organisation for Economic Cooperation and Development (OECD) states

that "the government should develop and issue an ownership policy that

defines the overall objectives of state ownership, the state's role in corporate

governance of state-owned enterprises and how this policy is likely to be

implemented."
 3

✓ The ownership policy should be disclosed and communicated to fix

accountability.

➢ Appointment of independent, non-executive directors and women directors on

PSU boards–

✓ Legal provisions and guidelines issued by SEBI and DPE (Department of Public

Enterprise) have laid down requirements for the constitution of the PSUs

Board to ensure their independence and gender diversity.

✓ A properly structured Board is necessary to ensure objectivity (i.e. there

should be no political interference) of the Board's decisions and exercise

oversight over the decisions of the Board and its Committees.

✓ Out of the top 27 PSUs, according to a recent study, 25 per cent do not

meet the criteria for independence of the Board and nearly 25% do not have

a woman director.

➢ Non-compliance with legal requirements and SEBI and DPE Guidelines -

✓ It is disconcerting to note that many of the top PSUs are falling behind in

complying with minimum requirements as envisaged by the SEBI and DPE

Guidelines.

✓ Even the compliance audit conducted by the Comptroller and Auditor General

of India has highlighted this issue. Other issues that were highlighted by CAG

were:

✓ In some CPSEs, the non-executive directors constituted less than 50 per cent

of the total strength of the Board of Directors.

✓ There was no woman director on the Board of MMTC Ltd. (Metals and

Minerals Trading Corporation).

 4

▪ Note→ The compliance should come from the Board of Directors but

they follow hygiene factors and thus are not interested in improving the

functioning.

✓ Representation of independent directors in 24 CPSEs was below the required

number.

✓ Vacancies of independent directors were not filled in time in 13 CPSEs.

✓ No independent Director was nominated in the committee by 7 CPSEs viz.

Antrix, BLI, GGL, HSCC, IIFCL, JCI and NHDC.

✓ JCI did not have a CSR (Corporate Social Responsibility) Policy in place.

✓ There was under allocation of funds towards CSR by 6 CPSEs viz. CCIL,

HUDCO, KPL, NCL, PFCL, UCIL.

➢ Excessive and overlapping regulation

✓ Besides Parliament, PSUs are also accountable to other authorities like the

Comptroller and Auditor General of India, (CAG); Central Vigilance

Commission, (CVC); Competition Commission of India, (CCI); and the Right to

Information Act, (RTI) etc.

✓ Over-regulation has not only created accountability problems but has also

killed corporate governance.

✓ The issue of Governance deficit in PSUs should be addressed and if the PSUs

have to make a mark on the world business map then they should be looked

at not as “Government” but as entities running to make judicious use of

resources they have been entrusted with.

Corporate Social Responsibility (CSR)

❖ In compliance with Section 135 of the Companies Act, 2013 and provisions of the

Companies (CSR Policy) Rules, 2014 which took effect from April 1, 2014, all
 5

companies (including CPSEs) with a Net Worth of at least Rs 500 crore, or a

minimum turnover of Rs 1,000 crore, or a minimum Net Profit of Rs 5 crore are

required to spend at least 2% of their average Net Profit for the immediately

preceding three Financial Years on CSR activities as per the items listed in Schedule

VII of Companies Act, 2013.

❖ Such companies need to constitute a CSR (Corporate Social Responsibility) Committee

of the Board consisting of three or more Directors, of which at least one shall be an

Independent Director.

❖ The Board of every such company must:

➢ Approve the CSR policy of the company, disclose contents of such policy in its

report, and place it on the company's website, after factoring in the

recommendations made by the CSR Committee;

➢ Ensure that the activities included in the CSR policy of the company (including

CPSEs) are undertaken.

❖ The total CSR Expenditure for the year FY 2021-22 stood at ₹4600 crore showing

progress of 2.61% as compared to the previous year.

❖ A total of 160 CPSEs undertook CSR activities during FY 2021-22 incurring a total

expenditure of 4600 crore.

➢ The New Public Serice Approach also strives for collaboration between the

Government and CPSEs

❖ The list of the top 10 CPSEs undertaking CSR expenditure during FY 2021-22 are:
 6

Public Enterprises Selection Board

❖ The Public Enterprises Selection Board (P.E.S.B) is a high-powered body constituted

by the Government of India Resolution dated 3.3.1987 which was subsequently

amended from time to time, the latest being on 11.11.2008.

 7

❖ The P.E.S.B has been set up with the objective of evolving a sound managerial policy

for the Central Public Sector Enterprises and, in particular, to advise the

Government on appointments to their top management posts.

❖ Functions of the Public Enterprises Selection Board (P.E.S.B)

➢ To be responsible for the selection and placement of personnel in the posts of

Chairman, Managing Director or Chairman-cum-Managing Director (Level-1),

and Functional Director (Level-II) in PSEs as well as in posts at any other level as

may be specified by the Government;

➢ To advise the Government on matters relating to appointments, confirmation or

extension of tenure and termination of services of the personnel of the above-

mentioned levels;

➢ To advise the Government on the desired structure at the Board level, and, for

senior management personnel, for each PSE or group of PSEs;

➢ To advise the Government on a suitable performance appraisal system for both

the PSEs and the managerial personnel in such enterprises;

➢ To build a data bank containing data relating to the performance of PSEs and its

officers;

➢ To advise the Government on the formulation and enforcement of a code of

conduct and ethics for managerial personnel in PSEs;

➢ To advise the Government on evolving suitable training and development

programs for management personnel in PSEs.

❖ Recent News

➢ The Public Enterprises Selection Board (P.E.S.B) held interviews for the position of

Indian Oil Corporation's (IOC) Chairman on May 16 2023 but rejected all 10

candidates.
 8

✓ It had instead asked the Ministry of Petroleum and Natural Gas to constitute

a search-cum-selection committee (SCSC) for the selection of a candidate for

the top position.

✓ However, the government had extended the tenure of the incumbent

Chairman, Vaidya, by one year at the time.

✓ This was a rare case where a retired PSU executive had been given an

extension post-superannuation.

S K Roongta Committee Recommendations

❖ Former SAIL Chairman S K Roongta-headed panel submitted its report during the

UPA regime in November 2011:

➢ Increasing the number of listed CPSEs over the years.

➢ CPSEs need more functional autonomy to compete with the nimble private

players.

➢ Policies of PSUs need to be replaced to suit the emerging business environment.

✓ I.e. PSUs are not following the Systems Theory.

➢ Security of tenure: minimum 3 years for Managing Directors and Chairman to

bring stability to the management of PSUs.

➢ Formulate policies to free PSUs from the clutches of administrative ministries as

they interfere in the day-to-day affairs of corporatized entities thus hampering

their efficiency.

➢ Interference from ministries has impacted the trading of stocks of PSUs at

discounted values.

➢ The panel has also affirmed that having a business development committee in

addition to the audit, human resources and remuneration committees would help

strategise and evaluate business development proposals and guide a company's

 9

diversification, acquisition, joint ventures, new business entry, organisational

structure review, etc.

➢ The committee recommended that the Comptroller and Auditor General of India

(CAG) should publish an annual report on the best practices in different CPSEs

(i.e. bringing Mental Revolution), as observed by it in the process of doing the

oversight functions, to be shared with other CPSEs. This, according to the

Confederation of Indian Industry, is expected to not only help CPSEs learn from

each other and improve their performance but also create a positive mindset

around the role of the CAG among them.

✓ I.e. Comparative Public Administration.

➢ Where there is a specific need to enter a partnership in line with the board's

approved strategy, an in-principle clearance should be taken from the

administrative ministry.


 1

DAILY
CLASS NOTES
Public Administration

Lecture - 91
Impact of Liberalisation and
Privatisation (Part 02)
 2

Impact of Liberalisation and Privatisation (Part 02)

S K Roongta Committee Recommendations (Continued)

❖ To reduce government intervention, the panel has suggested segregation of the

government nominee's role on the board from his position in the government. This

would empower the government nominee to suggest perspectives in line with other

independent directors without prejudice.

❖ Any official views of the government could be conveyed to the board during board

meetings. This ensures that government views are taken into consideration along with

the other stakeholders.

➢ This will help in restricting the day-to-day intervention of the government in the

functioning of the organisation.

❖ The panel recommended increased autonomy for CPSE boards in, the selection of

consultants, vendors with proprietary technologies, technology partners, joint venture

partners and acquisition of companies.

❖ It is necessary to give CPSEs more flexible selection/search processes and the provision

to negotiate settlements. However, such autonomy will bear fruit only when

managements are provided with clear guidelines.

❖ The committee further observed that the CPSEs have little say (limited opinion) in the

board composition.

❖ Boards often lack domain knowledge, and there are delays in appointments.

❖ The report suggested that the Department of Public Enterprise/ the Public Enterprise

Selection Board (PESB) should formulate a panel of approved names from which

independent directors can be selected.

❖ This panel of directors should be updated every six months.

❖ Apart from administrative ministries, CPSE boards should be allowed to suggest names

of independent directors to the panel. The nomination committee should identify

knowledge gaps in the board and recommend candidates from the approved panel.
 3

❖ The Central Vigilance Commission (CVC) should examine the database of

directors/personnel and make vigilance clearances to them available online.

➢ Example of e-Governance.

❖ The committee recommended that a separate body should be constituted within the

PSEB specifically for the selection of CMDs (Chief Managing Directors) and CEOs (Chief

Executives Officers) of Maharatna and Navratna CPSEs.

❖ In addition, a vigilant framework should be developed in discussion with the CVC.

❖ However, internal vigilance clearance should not be the responsibility of the central

vigilance officers (CVOs) of CPSEs.

❖ Instead of assigning CVOs on short-term deputation, the CVC should maintain a panel

of CPSE executives – at the level of executive directors and directors who could be

evaluated for the positions of CVOs.

Disinvestment

❖ Disinvestment is defined as the action of a government aimed at selling or liquidating

its shareholding in a public sector enterprise in order to get the government out of the

business of production and increase its presence and performance in the provision of

public goods and basic public services such as infrastructure, education, health, etc.

❖ Funds from disinvestment would also help in reducing public debt and bring down the

debt-to-GDP ratio while competitive public undertakings would be enabled to function

effectively.

❖ The main objectives of disinvestment in India are:

➢ To reduce the financial burden of the sick, loss-making PSUs on the Government.

✓ E.g. - Air India

➢ To improve public finances.

➢ To introduce competition and market discipline.

➢ To fund growth, social sector welfare.

➢ To encourage a wider share of ownership.

 4

➢ To depoliticize non-essential services

❖ The first sale of shares of public sector firms in small bundles to mutual funds and

institutional investors happened in 1991-92 under P.V. Narasimha Rao-Manmohan

Singh combine, who ushered in the 1991 economic reforms, but they too faced a

difficult time in its implementation.

➢ I.e. Social Man's concept of making decisions based on emotions.

❖ A Disinvestment Commission was established in 1996 by the Government of India, to

carefully evaluate the withdrawal of the public sector from non-core, non-strategic

areas and assure workers of job security and opportunities for retraining and re-

employment.

❖ It recommended the sale of equities or the outright sale of several PSEs, including Air

India.

❖ That year's budget promised to make use of the revenue from these equity sales for

education, and health, and to set up a fund to strengthen Public Sector Undertakings.

❖ But for years, most of the money has been routed to the Consolidated Fund of India,

to reduce the deficit.

❖ In the 1998-99 Budget, the government announced that it would lower its

shareholding in public sector firms to 26% while continuing to hold the majority shares

in companies that were considered strategic.

❖ It also contained a promise to protect the interests of employees and to set up a

restructuring fund to provide compensation to employees.

❖ By 2000, private companies were allowed to buy a majority stake in them.

❖ Hindustan Unilever picked up 74% in Modern Food Industries, a bread maker.

❖ It also introduced the concept of strategic sales in public sector companies some of

which include the sales of Modern Bakeries, Hindustan Zinc, and BALCO, and

disinvestments in these fuelled major controversies as well.

❖ Via strategic sales, privatization was envisaged only in non-strategic areas.

 5

❖ The demarcation was redefined by the Government in 1999 to include only defence-

related, atomic energy undertakings and railways among strategic enterprises and

treat all other enterprises as non-strategic.

❖ The government's determination “to take the policy through” (i.e. to take action) was

reflected in the setting up of a new Department of Disinvestment in 1999, which, in

2001, became a full-fledged Ministry.

❖ A dozen other companies including Bharat Aluminium Company, Hindustan Zinc,

Maruti Udyog and Videsh Sanchar Nigam Limited, besides around 20 hotels, changed

hands before 2004.

❖ The government was not keen on treading the strategic sales route.

❖ The UPA manifesto in 2004 said it would take up privatisation selectively.

❖ Unlike what the NDA had done, there would be no disinvestment just to raise funds to

meet short-term targets. Proceeds of disinvestment would be used for designated social

welfare programs.

❖ The UPA government chose to stay away from privatising CPSUs but continued to sell

"pieces" of CPSUs without losing control over them.

❖ In pursuance of this, the government formed a National Investment Fund (NIF) in

2005, to which the funds raised from disinvestment were channelled.

❖ The purpose of the Fund, managed by professional investment managers, was to utilize

75% of the proceeds to fund social welfare schemes in education, health, and

employment.

❖ However due to the financial crisis of 2008-09, and later a drought, this was put on

hold for 3 years, and later in 2013, it was restructured to provide flexibility in using

the Fund.

❖ The Union Budget 2016-17 focused on the need to migrate from a disinvestment-

based approach to an investment-based approach for CPSEs.

❖ The thrust of the government also shifted from disinvestment towards efficient

management of its investment in CPSEs, as symbolised by the change of name in the

 6

Department of Disinvestment to "Department of Investment and Public Asset

Management" (DIPAM) with an expanded mandate.

❖ DIPAM laid down comprehensive "Guidelines on Capital Restructuring of CPSEs" in May

2016 addressing various aspects such as payment of dividends, buyback of shares and

splitting of shares.

❖ Later the government put in place a mechanism/procedure along with indicative

timelines for the listing of CPSEs in February 2017.

❖ The new disinvestment mantra is to

➢ Minimize interference.

➢ Allow public sector undertakings to function along with commercial principles.

➢ Grant managerial autonomy in decision-making, such as in appointments.

❖ The new policy clearly highlights the distinction between privatization and

disinvestment.

❖ While sales of equity greater than 50%, maybe even 100%, is privatization, any

tinkering here and there constitutes disinvestment.

❖ Previous efforts at large-scale sale of shares have been frequently mired in controversies

and as a result, bureaucrats have developed a sort of an aversion to strategic sales.

❖ In a course correction, the new disinvestment policy provides for land to be valued at

market price for inclusion in sales.

❖ This will help prevent any scope for rent-seeking and reduce discretionary powers and

thus enabling bureaucrats to do away with the status quo.

❖ NITI Aayog has been entrusted to come up with new recommendations about loss-

making units that can be sold, their assets valued and disposed of, and to carry out

possible strategic sales.

❖ Financial parameters of public sector companies, such as borrowings and operating

profits, are being closely monitored to identify possibilities of share buybacks, a new

kind of disinvestment the government has recently come up with.

 7

❖ The government is planning to put on the block profitable entities like Bharat Petroleum

Corporation (BPCL) and Container Corporation of India (Concor).

❖ In November 2019 the government announced that it wanted to divest its entire stake

in BPCL (53.3%), Shipping Corporation of India (63.8%) and Concor (30.8%).

➢ It was due to adherence to the FRBM (Fiscal Responsibility and Budget

Management) Act targets.

❖ The market capitalisation of these companies has been valued at Rs 1.4 trillion.

❖ The move is seen as a strategy to fill the “Fiscal Hole" rather than improve the

performance of PSUs.

❖ The government will have to ensure that privatisation does not lead to job losses,

especially for the well-performing PSUs.

❖ Another strategy being mulled by the government is to let IOC and ONGC buy the

shares of BPCL, thus keeping it in government control.

❖ The Government will forego dividends on the equity holdings by selling off its stakes.

❖ Exposure to equity markets, as a part of the total financial balance sheet of Indian

households, stood at just 17% according to the NSE CEO.

❖ Thus, in case the public offer route is followed, it would imply transferring the common

ownership of the PSUs by all Indians into the private ownership of 0.5-0.7% of Indians.

❖ Thus essentially implying that the real beneficiaries would not be the ordinary retail

investors but institutional investors.

❖ Using funds made available from disinvestment to bridge the fiscal deficit is an

unhealthy and short-term practice.

❖ It is said that it is equivalent of selling 'family silver' to meet short-term monetary

requirements.

 1

DAILY
CLASS NOTES
Public Administration

Lecture - 92
Impact of Liberalisation and
Privatisation (Part 03)
 2

Impact of Liberalisation and Privatisation (Part 03)

 Thus, in case the public offer route is followed, it would imply transferring the common

ownership of the PSUs by all Indians into the private ownership of 0.5-0.7% of Indians.

 Thus essentially implying that the real beneficiaries would not be the ordinary retail

investors but institutional investors (e.g.- Hedge Funds).

 Using funds made available from disinvestment to bridge the fiscal deficit is an

unhealthy and short-term practice.

 It is said that it is equivalent of selling 'family silver' to meet short-term monetary

requirements.

 Borrowing which is the currently used practice for bridging fiscal deficit, should

continue to be used since while borrowing, the government has to make interest

payments in the future against a one-time borrowing from the market, in the case of

disinvestment, future streams of income from dividends are forgone against a one-

time receipt from the sale of stakes.

 Capital Expenditure→ one-time investment but recurring return

 Revenue Expenditure → Recurring spending with no return being generated,

 Profit-making PSUs should not be disinvested as they are performing well in any which

way.

 Employees of PSUs would lose their jobs.

 Complete Privatisation may result in public monopolies becoming private monopolies,

which would then exploit their position to increase the costs of various services and

earn higher profits.

 Serving Citizen is replaced by Serving Clients principle. The welfare approach is

replaced by the User-Pay Relationship.

 3

 Complete Privatisation results in a situation where political compulsions may make

companies being sold cheap to preferred parties.

 A majority stake sale done to another CPSE results in no real change in ownership and
is thus just hogwash.

 Public Offer being the chosen approach for Disinvestments does not yield the best
realisation on the assets and is a far too time-consuming process.

 Auctioning to financial institutions should be the preferred modus operandi since it

gives the best realisation on the assets, and has minimal transaction cost.

 This helps ensure transparency and the government can yield maximum revenue.

 Apart from generating a one-time sale amount, a lot of these stake sales have also
resulted in higher annual revenues for the government, thus nullifying the effect of loss
of dividends.

 There were annual outgoes associated with them, thus again nullifying the effect of
dividends.

 The loss of dividends, if any, is well compensated by gains in capital appreciation.

 Letting go of these assets is best in the long-term interest of the taxpayers as the
current yield (i.e. profit) on these investments in abysmally low.

 Even if the funds from the sale are not utilised for bridging fiscal deficit, much better
utilisation of these funds would be investments into critical sectors such as healthcare,
education and infrastructure or for retiring government debt rather than letting the
low-yielding capital remain locked in these assets.

 The returns on capital employed for the entire PSU sector is very low and the
government can find alternate avenues for deploying this capital which would yield far
better returns, both monetarily and otherwise.

 BALCO which was a profit-making company that earned the Government an average
dividend (over eight years) of Rs. 5.69 cr every year on the equity sold.

 The Government post-disinvestment, however, started getting Rs. 82.65 crore

every year.
 4

 Similarly, CMC (Computer Maintenance Corporation) was a very well-managed and

profitable company, yet the average dividend was only 0.80 crore.

 The Government's benefit, post-disinvestment however was Rs.15.2 crore annually.

 Maruti Udyog Ltd. gave average returns to the tune of Rs. 13 crore annually to the

government. and IPCL gave Rs. 16.24 crore on equity sold against Rs. 242 crore and

149 crore respectively post-disinvestment.

 Wages increased by an average of Rs. 1600 per employee in Modern Food Industries

Limited.

Strategic Disinvestment

 Strategic Disinvestment refers to the sale of a public sector holding/undertaking to a

non-government entity and in most cases, to the private sector.

 It is done so by the government in order to relieve itself of the burden of maintaining

a non-performing public enterprise.

 The importance of strategic disinvestment is as follows:

 Strategic disinvestment can be used for repaying government debts and for

investing in social programs like health and education.

 Through innovative management skills and technology, a strategic investor can

improve the growth of such units.

 Government presence in non-strategic sectors will only disrupt the market

dynamics and the burden of maintaining inefficient public sector undertaking will

fall on the general public.

 Investing in the economy will encourage spending which in turn will improve the

economy.

 Although there have been issues regarding strategic disinvestment in the past, it has

yielded favourable returns.

 5

 An example is the Hindustan Zinc, which saw a fantastic increase in its profits after

its takeover by Vedanta in 2002.

 Challenges Regarding Strategic Disinvestment:

 Loss of revenue to the government should a profit-making PSU be sold.

 There might be incidences of 'Asset Stripping' as in the buyer will strip the PSU of

its valuable assets such as buildings, tools, machinery etc.

 Disinvesting in strategic assets such as oil refineries may be a threat to national

security as oil is an important strategic asset.

 Although using funds from disinvestment can be a major boost for the government

exchequer, it is a short-term measure that cannot be used often.

 Complete privatisation may result in the government losing its monopoly in certain

sectors.

 Strategic Disinvestment came to the fore with the government of India's decision to

sell Air India, Bharat Petroleum Corporation (BPCL) and the Container Corporation of

India.

 Following the Union Budget of 2021, the disinvestment target was raised to Rs. 2.14

Lakh Crore, three times than the target of crossing Rs.67000 in the previous year.

 The guiding principle to strategic disinvestment in India is that the government plays

little to no role in the manufacture/production of goods and services in the day and

age of competitive markets.

 Regarding the potential of entities subject to disinvestment, they are best asserted by

strategic investors who evaluate based on the facts of technology, efficient management

and technology upgradation.

 Strategic disinvestment can be approached in the following ways:

 Minor disinvestment: The government gives away a portion of its stake but retains

a majority stake, preferably at 51%, in order to retain management control.

 6

 Major disinvestment: The government sells off the majority of its stake and retains

minor holdings in the company.

 Complete privatisation: In this the government hands over complete control of its

holdings to a private player.

 Objectives of Strategic Disinvestment:

 Meeting budgetary requirements

 Reduce fiscal burden

 Raise funds to finance growth and development projects

 Improve market competitiveness and discipline

 Transfer of commercial risks

 Since 2015-16, the Government has revived the policy for strategic disinvestment by

substantially overhauling its approach for the disinvestment of CPSEs.

 NITI Aayog was mandated to identify the CPSEs for strategic disinvestment.




 1

DAILY
CLASS NOTES
Public Administration

Lecture - 93
Strategic Disinvestment
 2

Strategic Disinvestment

 Objectives of Strategic Disinvestment:

 Meeting budgetary requirements

 Reduce fiscal burden

 Raise funds to finance growth and development projects

 Improve market competitiveness and discipline

 Transfer of commercial risks

 Since 2015-16, the Government has revived the policy for strategic disinvestment by

substantially overhauling its approach to the disinvestment of CPSEs.

 NITI Aayog was mandated to identify the CPSEs for strategic disinvestment.

 Till February 2021 the NITI Aayog has identified CPSEs for strategic disinvestment

based on the criteria of

 National Security;

 Sovereign function at arm's length, and

 Market Imperfections and Public Purpose.

 The policy on strategic disinvestment is based on the economic principle that the

Government should discontinue in sectors, where competitive markets have come of

age and the economic potential of such entities may be better discovered in the hands

of strategic investors due to various factors such as infusion of capital, technological

upgradation and efficient management practices.

 In order to realize the mission of a New, Self-reliant India, there was a need to redefine

public sector participation in business enterprises and to encourage private sector

participation in all sectors.

 3

 Against this backdrop, the New Public Sector Enterprise (PSE) Policy for Atmanirbhar

Bharat was approved by Cabinet, on 27th January 2021 and was notified on 4th

February 2021.

 The scope of this Policy is limited to the existing Central Public Sector Enterprises,

Public Sector Banks and Public Sector Insurance Companies.

 The policy does not apply to certain classes of public sector entities such as Not-for-

profit companies, or CPSEs providing support to vulnerable groups, or having

developmental/promotional roles, etc.

 The policy intends to minimise the presence of the Government in the PSEs across all

sectors of the economy.

 Under the New Public Sector Enterprise (PSE) Policy public sector commercial

enterprises have been classified as Strategic and Non-Strategic sectors.

 The following four broad Strategic Sectors have been delineated based on the criteria

of national security, energy security, critical infrastructure, provision of financial

services and availability of important minerals:

 Atomic Energy, Space and Defense;

 Transport and Telecommunication;

 Power, Petroleum, Coal and other minerals; and

 Banking, Insurance and Financial Services.

 In Strategic sectors, the bare minimum presence of the existing public sector

commercial enterprises at the Holding Company level will be retained under

Government control.

 The remaining enterprises in a strategic sector will be considered for privatisation or

merger /subsidisation with another PSE or for closure.

 4

 PSEs in non-strategic sectors shall be considered for privatisation, where feasible

(possible), otherwise, such enterprises shall be considered for closure.

 Approval of the Government for strategic disinvestment of a specific PSE shall be taken

from time to time, on a case-to-case basis.

 The timing for specific transactions will however, be contingent, inter alia, on the

considerations of appropriate sequencing, sectoral trends, administrative feasibility,

investors' interest, etc.

 Based on the recommendation of NITI Aayog, the Government, since 2016, has given

'in-principle' approval for strategic disinvestment of 35 CPSEs and/or Subsidiaries/

Units/ Joint Ventures of CPSEs and IDBI Bank.

 Out of the 36 cases, 33 cases are being handled by DIPAM and 3 cases are being

handled by the respective Administrative Ministry/ Department.

 Out of the 33 cases being handled by DIPAM, strategic disinvestment transactions have

been completed in 9 cases; 5 CPSEs are under consideration for closure; 2 cases are

held up due to litigation.

 The remaining 17 transactions are at various stages.

 With progress on the privatisation of Air India, the government has crossed a significant

milestone.

 The government of India has received Rs. 2,700 crore cash sale proceeds from the

strategic sale of Air India Ltd.

 Privatisation of Air India is expected to improve the performance and productivity of

the airline and help to rejuvenate the aviation sector of the country.

 The Cabinet Committee on Economic Affairs (CCEA) empowered an Alternative

mechanism to approve the highest bid of M/s Tata Steel Long Products Limited for

93.71% shares of JV partners of 4 CPSEs and the Odisha Government.

 5

 Globally, PSUs account for:

 20 per cent of investments,

 5 per cent of employment and up to

 40 per cent of domestic output (International Finance Corporation, 2018).

 According to the Fortune Global 500 Company Rankings 2019, around 25% of

companies are linked to or controlled by the government.

 The developing countries have a higher presence of PSEs among their top companies

as compared to the developed countries.

 Developed countries have gradually moved away from the PSE model of growth to

encourage private investment and competition.

 International events like:

 The breakup of the erstwhile Soviet Union.

 East Asian Financial Crisis

 Mounting losses of PSUs

 Pressure on the government exchequer

 led to the privatisation of several PSEs.

 However, PSEs continue to play a key role in many developing countries in

 economic development by ensuring the implementation of government schemes

and policies.

 enhancing the geo-strategic reach of countries by acquiring strategic assets through

targeted investments.

 PSUs help to ensure energy security, and national security (for example, defence),

supply public goods and services at concessional rates to targeted groups in the country

and support governments in pursuing sustainable development goals (SDGs) as observed

by reports of the World Bank and OECD.

 6

 The top eight countries in the world with the highest share of PSEs, are namely China,

United Arab Emirates (UAE), Russia, Indonesia, Malaysia, Saudi Arabia, India and

Brazil, collectively account for more than 20 per cent of the world trade

 Among them, China has strategically pursued its global expansion plan through SOEs

(State Owned Enterprises) in its Belt and Road Initiative (BRI), to enhance regional

connectivity between China and countries in Asia, Africa, Europe, South America and

the Pacific (OECD, 2018).

 Over 80 Chinese SOEs are part of this initiative.

Second Administrative Reforms Commission (SARC) Recommendations

 The asymmetry of power has to be reduced to conform to ethical behaviour.

 Over-regulation, severe restrictions on economic activity, excessive state control, and

near-monopoly of the government have to be reduced altitude to prevent the spread

of corruption.

 I.e. Rent-Seeking attitude.

 The Commission feels that the prevailing practice of nominating serving officers on the

boards of public sector bodies may compromise with the desired objectivity and

independence necessary for decision-making in these bodies.

 It would be unrealistic and imprudent for an official to sit in judgment of a decision

taken by a Board of which he is a member.

 Best practices of good governance prescribed for the corporate sector must be included

in the public sector.

 Audit Committees appointed by the State Government with independent members of

proven integrity and professional competence is one such practice.

 Public sector banks lack innovation and as a result, have a narrow product offering.
 7

 There is a need to establish strong ties between the public and private sectors in

education.

 Civil servants should view civil society organisations and the private sector as partners

in the process of the country's governance.

 There is a need to shift from the pre-eminence of governance to effective governance

with a focus on decentralisation and citizen-centricity.

 Clarity on objectives has to be achieved by both the parties, private and public, at the

outset for the success of PPP projects.

 Appropriate coordination and review mechanisms must be created to develop mutual

trust and confidence.

 Creating competition by providing licenses to private sector or civil society bodies to

provide public services, breaking up a large public sector service dispensing unit into a

number of smaller public bodies and give the choice to the public to choose through the

process of bidding.

 I.e. Public Choice Theory

 Agencification i.e. the extensive use of executive agencies in administration has been

found useful in conducting an extremely wide range of functions and has been the

cornerstone of public sector reforms around the world.

 There is a need for tracking outcomes and not readily measurable outputs.

 There is a necessity to bring PSUs under the purview of internal audit.




 1

DAILY
CLASS NOTES
PUBLIC ADMINISTRATION

Lecture - 94
Conclusion of PSUs
 2

Conclusion of PSUs

Conclusion

❖ CPSEs were created with social and egalitarian goals in mind.

❖ The private sector was literally absent in the 1950s

❖ It was necessary to give employment to the youth.

❖ But post-1990s even socialist and communist countries learnt the hard way that

CPSEs need to be revamped (Bludgeoning fiscal deficit).

❖ Orientation has shifted from the primacy of social welfare objectives towards

commercial viability, operational profitability, competitiveness and innovation.

❖ Finance Commissions have recommended disinvestment as a strategy for sick units at

the State and Central levels.

❖ Proceeds of disinvestment should be used to partially retire the debt.

❖ This will go a long way in reducing the revenue expenditure at both the state and

central levels.

➢ Reducing the revenue expenditure→ Reduction in salaries, pensions and

administrative expenses.

❖ Independent regulatory authorities divorced from the concerned Ministries are

needed to allow a level playing field and make prudent economic decisions.

❖ Non-priority enterprises should be relinquished.

❖ Timely adoption of e-Governance, the Internet of Things, Industrial Revolution 4.0,

Big data, etc is the need of the hour.

❖ The continuation of a loss-making CPSE because of the "commanding heights

sentiments" of a bygone era is bad economics.

 3

❖ CSR funding from both private players and CPSEs can take over the role of

welfarism.

❖ This will reduce the burden of the state and they can be the facilitating link between

private players and NGOs to uplift society.

❖ Moreover, CSR can help in grassroots participation, local government involvement,

cooperative federalism, community participation, etc.

❖ CPSEs should focus on a minimum rate of return as recommended by earlier Finance

Commissions.

❖ Perform or Perish policy needs to be adopted for CPSEs that are not part of the

strategic sector.

❖ The practice of creating new PSUs at the state or central level must be restrained as

more often than not new bodies are created to reward bureaucrats with plum

postings after retirement.

❖ Multiple bodies can be integrated or amalgamated.

➢ I.e. recentralisation.

❖ The government too should resort to hiring contract employees to reduce their

revenue expenditure for jobs of an ad hoc nature.

❖ The utilisation of resources and making decisions must be based on sound principles of

economics.

➢ I.e. Economic Man concept of Simon

❖ The pandemic has created a bludgeoning fiscal deficit and to close the gap rather

than resort to internal or external borrowing, selling of stocks or shares of

performing CPSEs cannot be blamed.

❖ Especially when private investment is down and demand-driven growth is negligible.

 4

❖ Time and again making PSEs open to manoeuvring and manipulation by bureaucrats

and politicians ends up in crony capitalism or incestuous corporate relationships

which surface as "breaking news".

❖ Air India, BSNL and MTNL are PSEs that have gone bust because of crony capitalism

and government interference.

❖ Depoliticisation of PSEs, Professionalisation of management and Granting autonomy

in letter and spirit are the needs of the hour.

❖ Promotions and rewards to employees should be based on performance rather than

Weber's "Graded Structure and Career".

❖ India can take a leaf from Temasek Holdings of Singapore.

❖ Temasek's Charter mandates it to increase the value of its holdings in the long term.

❖ Only 26% of its holdings remain in Singapore, and 40% of its holdings are spread

over the rest of Asia.

❖ Temasek's model also allows the state to distance itself from the management of its

enterprises without relinquishing control and ownership.

❖ Government-linked Companies under Temasek are free to hire professional managers

at market rates without any undue interference.

❖ Some of the companies under Temasek have emerged as global brands.

❖ Temasek professionally manages its subsidiary companies by appointing qualified

managers and technical experts on their boards.

➢ This is a combination of Theory X and Y because some amount of control is

present but largely complete freedom is given to the employees.

❖ It procures or sells the assets of the group through global investment and

disinvestment.
 5

❖ The government only manages the policy and stands at arm's length from the

holding company.

❖ Roongta Committee also made a similar suggestion i.e. to have a single holding

structure (SHS) for CPSUs to manage investments and disinvestments.

❖ The government should remain in the background to ensure that goods remain

accessible to citizens and monopolistic pricing tendencies are arrested.

❖ The Chinese example is notable here.

❖ China has been able to distance its government from PSEs initially through

management contracts, privatisation and finally through Holding Companies.

❖ China adopted the policy of "Zhua Da Fang Ciao" (Manage the large and let go of the

small).

❖ Chinese PSEs are legally separated from the government.

❖ As of 2019, China is home to 109 corporations listed on the Fortune Global 500 list,

of which 93 are state-owned.

❖ China thus has managed to make its SOEs (State Owned Enterprises) big, efficient

and globally competitive without relinquishing much control by further consolidating

the state control while simultaneously allowing the market to be the ultimate

resource allocator, and reserving its option to intervene if and when needed.

❖ Closer home Tamil Nadu Industrial Development Corporation (TIDCO) through a joint

venture between Tata Group and the Government of Tamil Nadu started Titan

Watches in 1984 in which TIDCO has 26% equity.

❖ TIDCO still has 26% in Titan which is a market leader in watches in India and has

now started to acquire global brands.

 6

❖ Government entities need to step outside their comfort zone and start making

prudent investment decisions that will generate revenue for the government rather

than be passive receivers of directions and funds from the government.

PYQ

Q- "The New Economic Reforms during the past three decades have not only reduced

the scope of industrial licensing and areas reserved exclusively for the public sector

but also infringed the autonomy of the existing public sector undertakings." Examine

(2022/20 Marks).

❖ Introduction:

➢ Write about New Economic Reforms (NER) adopted by India in 1991 in the

form of LPG (Liberalisation, Privatisation and Globalisation) and its benefits.

❖ Body:

➢ Yes, NER has affected

✓ Areas reserved exclusively for the public sector

▪ As the private sector is allowed in those sectors. E.g.- Private Companies

were given contracts for manufacturing Rafale Aircraft.

✓ Industrial Licensing

▪ License Permit Raj has been abolished

✓ Infringed autonomy of PSUs

▪ It has brought the bad practices in PSUs to light.

▪ Welfarism has taken the back seat.

✓ Thus, the focus has shifted to the 2 E’s (economy and efficiency) of the

classical era.

➢ No, the NER has not affected the PSUs

 7

✓ As there is the transformation from Theory X to Theory Y and Social Man to

Economic Man.

✓ PSUs have to compete with private players. Thus the Public Choice approach.

✓ PSUs are demanding more autonomy which is similar to practice in China

and Singapore.

❖ Conclusion

➢ Mention the positive steps along with the relevant data as well as the New Public

Service approach.

Q- India has significantly advanced in its development goals, increased efficiency in the

public sector and unlocked innovation in the private sector by adopting the approach

of building Digital Public Infrastructure. Elucidate. (2023/20 Marks)

❖ Introduction:

➢ Explain what is Digital Public Infrastructure (DPI).

❖ Body:

➢ How the development goals have advanced.

✓ Health

▪ Ayushman Bharat→ Cashless transaction

▪ Nutrition→ Portability of Ration Card.

➢ Efficiency of the Public Sector improved due to

✓ Implementing classical thinker's ideology such as better time study, work-

study, better allocation of work as well as the culture of MoUs.

✓ Dashboards are maintained to monitor the progress.

 8

✓ Government e-marketplace for procurement by government departments.

➢ Innovation in the Private Sector

✓ Start-ups and ed-tech industries.

➢ DPI has made it possible to move from Social Man to Economic Man, Theory X

to Theory Y, Immaturity to maturity and achieve the 3 E’s (economy, efficiency

and effectiveness).

❖ Conclusion:

➢ Mention some of the challenges of DPI such as gender inequality, lack of power

supply etc.

Union Government and Administration

Union Government

❖ India is a quasi-federal state

❖ There are two types of government → Union Government and the State Government.

❖ Union Government constitutes the President, the Council of Ministers headed by the

Prime Minister, the Parliament, and the Supreme Court.

❖ Central Secretariat, Cabinet Secretary, Prime Minister Office (PMO) and the Cabinet

Committees.

❖ Ministries, Departments, Boards, Commission, Attached offices and Field

organisations.

❖ Executive → Permanent and Political.

❖ Permanent Executives are the institution of Civil Servants.

❖ Political Executives are the temporary ones who are elected by the people directly or

indirectly.
 9

The President

❖ Executive Powers

➢ Article 53- All the executive powers of the Union are vested in the President.

✓ (1) The executive power of the Union shall be vested in the President and shall

be exercised by him either directly or through officers subordinate to him in

accordance with the Constitution.

✓ (2) Without prejudice to the generality of the foregoing provision, the

supreme command of the Defence Forces of the Union shall be vested in the

President and the exercise thereof shall be regulated by law.

➢ Article 77-Conduct of business of Government of India

✓ All executive action of the Government of India shall be expressed to be taken

in the name of the President.

✓ The President shall make rules for the more convenient transaction of the

business of the Government of India, and for the allocation among Ministers of

the said business.

➢ Powers pertaining to Administration:

✓ Formal head of the administration.

✓ All officers of the Union are the subordinates of the President.

✓ Executive powers include the power of appointment and removal of the high-

level functionaries of the Union government.

✓ He appoints the Prime Minister

✓ He appoints the other ministers of the Union on the recommendations of the

PM.
 10

✓ He appoints the Governors of the States, CAG of India, Attorney-General,

Chairman and members of the UPSC, Finance Commission, Election

Commission and National Commission for SC, ST and OBC.

✓ Appoints the Judges of the Supreme Court and High Courts.

✓ Seek any information relating to the administration of affairs of the Union.

✓ Can declare an area as a Scheduled area and has the power to administer

Scheduled and Tribal areas.

✓ Can create an Inter-State council for better cooperation and coordination.

✓ Directly administers the Union Territories through the administrators.

➢ The president not only appoints but also is the dismissing authority.

➢ President can remove the functionaries as per the provisions of the Constitution.

➢ President shall exercise all his executive powers as per the provisions of the

constitution, i.e., he should function according to the advice given by the Council

of Ministers (Article 74).


 1

DAILY
CLASS NOTES
Public Administration

Lecture - 95
Union and State Government
 2

Union and State Government

 Article 74- Council of Ministers to aid and advise President.

 The original constitution Article 74 says → There shall be a council of ministers to aid

and advise the President.

 Mrs Indira Gandhi brought the 42nd amendment in 1976 which amended the content

of Article 74 as she wanted to have all the authority with the PM.

 The then political condition and the imposition of emergency made way for the 42nd

amendment.

 After the 42nd amendment: There shall be a Council of Ministers with the Prime

Minister at the head to aid and advise the President who shall, in the exercise of his

functions, act in accordance with such advice.

 When the Janata Party government came into power, introduced the 44th

amendment which again amended Article 74.

 Article 74 states

 (1) There shall be a Council of Ministers with the Prime Minister at the head to aid

and advise the President who shall, in the exercise of his functions, act in

accordance with such advice.

 Provided that the President may require the Council of Ministers to reconsider such

advice, either generally or otherwise, and the President shall act in accordance

with the advice tendered after such reconsideration.

 (2) The question whether any and if so what, advice was tendered by Ministers to

the President shall not be inquired into in any court.

 I.e. no judicial Review.

 Article 75- Other provisions as to ministers

 (1) The Prime Minister shall be appointed by the President and the other Ministers

shall be appointed by the President on the advice of the Prime Minister.

 3

 (2) The Minister shall hold office during the pleasure of the President.

 (3) The Council of Ministers shall be collectively responsible to the House of the
People (Lok Sabha).

 (4) Before a Minister enters upon his office, the President shall administer to him
the oaths of office and secrecy according to the forms set out for the purpose in
the Third Schedule.

 (5) A Minister who for any period of six consecutive months is not a member of
either House of Parliament shall at the expiration of that period cease to be a
Minister.

 (6) The salaries and allowances of Ministers shall be such as Parliament may from
time to time by law determine and until Parliament so determines, shall be as
specified in the Second Schedule.

 Article 78- Duties of Prime Minister with respect to the furnishing of information to
the President, etc. It shall be the duty of the Prime Minister.

 (a) to communicate to the President all decisions of the Council of Ministers relating
to the administration of the affairs of the union and proposals for legislation;

 (b) to furnish such information relating to the administration of the affairs of the
Union and proposals for legislation as the President may call for; and

 (c) if the President so requires, to submit for the consideration of the Council of
Ministers any matter on which a decision has been taken by a Minister but which
has not been considered by the Council.

The President- Legislative Powers

 Article 79- The President is an integral part of the Parliament.

 He can appoint 12 members in Rajya Sabha on the basis of having special knowledge

or practical experience in the fields of Science, Art, Literature and Social service.

(Article 80).

 Constitution Amendment Act 104, 2019 - Anglo-Indian nomination in Lok Sabha

now is done away with.

 4

 Article 85 → The President can summon and prorogue the session of the Parliament.

 Prorogue→ Termination of session

 The president can dissolve the Lok Sabha and can also call for a joint session of the

Parliament in case of deadlock.

 Special address and address by the President to the Parliament.

 He decides the disqualification of MPs on the basis of office of Profit.

 The President's prior recommendation is required for the introduction of certain bills

in Parliament, for example, alteration of boundaries.

Veto Powers

 Veto means to forbid or to prohibit.

 Article 111 of the constitution provides veto power to the President.

 When a bill goes to the President then he may give his assent, withhold his assent or

send the bill back for the reconsideration of the legislature if the bill is not a money

bill.

 If the Parliament sends the bill back to the President, with or without any change,

now the President is bound to give his assent.

 Purpose of Veto:

 To prevent hasty and ill-considered legislation by the Legislature.

 To prevent unconstitutional Legislation.

 To reduce the burden on the Judiciary.

 The president can act as a check on Executive Excess.

 Increasing public faith in the office of the president.

 Controversial Bills are nipped in the bud before they become Acts.

 Types of Veto

 Absolute Veto
 5

 Withhold assent to a Bill passed by the Parliament.

 Exercised with regard to Private Member's Bill and government Bills where the

Cabinet has resigned.

 More often than not the new cabinet advises the President not to give his/her

assent.

 The President has to act on the aid and advice of the Council of Ministers.

 1950: Dr Rajendra Prasad withheld his assent to the Bihar Zamindari

Abolition Bill but gave in when the then PM Nehru threatened with resignation.

 Suspensive Veto

 Returns a Bill for reconsideration.

 If the Parliament passes the Bill again with or without amendments the

President has to give his/her assent.

 President APJ Abdul Kalam used this veto power formally when he returned

the Office of Profit Bill, 2006 for reconsideration. But he had to give his assent

when it was sent to him again.

 Pocket Veto

 The President neither ratifies nor rejects nor returns the Bill.

 Keeps the Bill pending for an indefinite period.

 The Indian Post Office (Amendment) Bill 1986 gave the executive the wide

powers to intercept personal communication.

 The then President Giani Zail Singh suggested a few changes to it but when it

did not materialise he sat on the Bill indefinitely, eventually killing the Bill

through sheer inaction.

 6

 To only act according to aid and advice when it is said, is about showcasing traits of

Theory X, but earlier the Presidents used to show Theory Y of McGregor and the

Maturity trait of Chris Argyris.

 Comparison of Veto Powers

 The American President possesses a Qualified Veto, unlike his Indian counterpart.

 The qualified veto can be overridden by a higher majority.

 The suspensive veto can be overridden if the Bill is sent again to the Indian

President.

 To overcome the suspensive veto of the US President the Bill needs to be passed

gain by a higher majority.

 The Indian President can keep the Bill pending for an indefinite period without

ratifying, rejecting or sending it back for reconsideration.

 The American President however has to send the Bill back within 10 days for

reconsideration.

 Veto over State Bills

 State bills are sent to the president when the Governor as per Article 200 decides

to reserve it for the President's consideration.

 So the onus is on the Governor to decide whether Bills should be reserved for the

President's consideration.

 The president may withhold his assent or return the Bill for reconsideration.

 However, the Constitution is silent with regard to what should be done when

returned Bills with or without amendments come to the president again for assent.

 The governor's role ends once a Bill has been reserved for the President's

consideration.
 7

 During the period from 1977 to November 1985, 1130 State Bills were reserved

for the consideration of the President.

 Out of these, 1039 Bills were assented to by the President.

 The assent was withheld only in 31 cases, five cases were returned for

reconsideration with the President's message and 55 were still pending on

November 22, 1985.

 75% of the Bills reserved for consideration of the President relate to matters in

the Concurrent List and were reserved by the Governor for the President's

consideration under Article 254(2) on the advice of his Council of Ministers.

 A very small number of Bills during the last 38 years (from 1985 to 2023) were

reserved by the Governors in the exercise of their discretion.

 President Pranab Mukherjee gave assent to 82% of the Bills that he received from

the states.

 He withheld assent for 18 BIlls.

 12 Bills were returned with a message.

 Out of the 5 Bills that were sent from Delhi none received assent.
 8

 This can be seen as part of the ongoing never-ending tussle between the Delhi

government and the Central Government

 Recently the Governor of Rajasthan did not send the Bills passed by the Legislative

Assembly for the assent of the President.

 The Administrative Reforms Commission observed that, if the Provisions of Article

200 are given a very wide interpretation, it would lead to a large number of Bills

being reserved for the consideration of the President, contrary to the federal spirit

of the Constitution.

 They also pointed out that this Article must be interpreted as enabling Presidential

intervention only in special circumstances, such as those in which there is a clear

violation of fundamental rights or a patent unconstitutionality on some other

ground or where the legitimate interests of another State or its people are affected.

 It is further observed that this article also provides an opportunity for Presidential

intervention in the event of a clash with a Union law.

Ordinance Powers

 Article 123- Power of President to issue ordinance.

 Ordinances are laws that are promulgated by the President of India.

 It has the same effect as an act of the Parliament.

 It can be issued when either one or both Houses of the Parliament are not in session.

 It helps the government to take legislative action of an urgent nature.

 The approval or disapproval of an ordinance is decided by the Parliament.

 The fundamental reason to provide the executive with the law-making authority is to

deal with the situations which demand urgent legislative actions.

 Ordinances are tools to meet demands of the extraordinary situations.

 Analysing the Ordinance Route

 9

 In the 1950s, central ordinances were issued at an average of 7.1 per year.

 A 5-judge Constitutional bench observed in 1986 that there was not a single

instance of the President (i.e., the central government) re-promulgating an

ordinance.

 But this was to be proven wrong in the later years.

 The number of ordinances increased in the 1990s to 19.6 per year and reduced

to 7.9 per year in the 2010s.

 The United Progressive Alliance (UPA) government, in 10 years between 2004

and 2014, promulgated 61 ordinances.

 In 2013 and 2014, the Securities Laws (Amendment) ordinance was promulgated

three times.

 An ordinance to amend the Land Acquisition Act was issued in December 2014

and re-promulgated twice - in April and May 2015.

 The matter came up again in the Supreme Court, and in January 2017, a seven-

judge Constitution Bench declared this practice to be unconstitutional.

 The judgment concluded that “Re-promulgation of ordinances is a fraud on the

Constitution and a subversion of democratic legislative processes".

 The Indian Medical Council Amendment Ordinance was issued in September 2018,

and reissued in January 2019, as it was passed by only one House of Parliament

in the intervening session.


 1

DAILY
CLASS NOTES
Public Administration

Lecture - 96
President
 2

President

Analysing the Ordinance Route

 In the 1950s, central ordinances were issued at an average of 7.1 per year.

 A 5-judge Constitutional bench observed in 1986 that there was not a single instance

of the President (i.e., the central government) re-promulgating an ordinance.

 But this was to be proven wrong in the later years.

 The number of ordinances increased in the 1990s to 19.6 per year and reduced to

7.9 per year in the 2010s.

 The United Progressive Alliance (UPA) government, in 10 years between 2004 and

2014, promulgated 61 ordinances.

 In 2013 and 2014, the Securities Laws (Amendment) ordinance was promulgated

three times.

 This behaviour is explained through

 Domination aspect of Follett.

 ‘Theory X” of D. McGregor

 Immature behaviour of Chris Argyris

 An ordinance to amend the Land Acquisition Act was issued in December 2014 and

re-promulgated twice - in April and May 2015.

 The matter came up again in the Supreme Court, and in January 2017, a seven-judge

Constitution Bench declared this practice to be unconstitutional.

 But Why does the government resort to this?

 “More Governance”

 Multitudinous monarchs resulting in stalled governance.

 3

 The judgment concluded that “Re-promulgation of ordinances is a fraud on the

Constitution and a subversion of democratic legislative processes".

 The Indian Medical Council Amendment Ordinance was issued in September 2018,

and reissued in January 2019, as it was passed by only one House of Parliament in

the intervening session.

 There has been a steady decrease in

the number of ordinances

promulgated by the Centre since

2019.

 An analysis of the year-wise data on

the number of ordinances shows

that the highest number of

ordinances promulgated by the NDA government (both terms combined) was in 2019

when 16 of them were issued.

 However, the numbers have dropped since then.

 In 2022, for the first time in 59 years, no ordinances were promulgated.

 In 2023, however, the Centre issued the controversial “The Government of National

Capital Territory of Delhi (Amendment) Ordinance”.

 It overturned a Supreme Court judgment which noted that the Delhi government can

make laws and administer civil services in the national capital.

 Ordinances have become more frequent under the NDA government's current term, as

compared to the 10 years of UPA.

 In the 2020s so far, an average of 7.7 ordinances have been issued per year, higher

than in the 2000s, but still well below the rate that prevailed between the 1970s and

the 1990s.
 4

 The problem with the ordinance's provision in the Constitution is that both the Centre

and states have frequently misused it, despite several Supreme Court rulings to the

contrary.

 In many cases, ordinances were used despite little indication that there was any

pressing need for them, and ordinances have been frequently reissued repeatedly to

prevent their legal provisions from lapsing.

 An ordinance lapses if it is not passed by the legislature within the time period

described above.

 At times, states have issued ordinances more often than the Centre.

 In the three-year period from 2019 to 2021, Kerala issued 286 ordinances.

 This is the most by any state in this period and this is despite the Kerala assembly

convening for more days in 2021 than any other state assembly.

 Other big issuers of ordinances during this period were Maharashtra (63), Andhra

Pradesh (45) and Uttar Pradesh (41).

 The ordinance route is preferred due to the paucity of time and the phenomenon

of “Bounded Rationality”.

 The other big problem with ordinances is repeated reissuance.

 1970- Cavasjee Cooper vs Union of India case, the apex court said that judicial

intervention can be there to check the arbitrariness of the satisfaction of the ordinance

issuing authority.

 Repromulgation of Ordinance: Bihar Sugarcane (Regulation of Supply and Purchase)

Ordinance which was in effect for more than 13 years instead of seven-and-a-half

months. In all, 256 ordinances were thus misused between 1967 and 1981.

 D.C. Wadhwa vs State of Bihar case 1987, the Supreme Court termed the

repromulgation of the ordinance as constitutional fraud.

 5

 Krishna Kumar Singh v. State of Bihar 2017

 A seven-judge Constitution bench, by a majority of 6:1, held that repromulgation

is constitutionally "impermissible" and "defeats constitutional scheme” under which

a limited power to frame ordinances has been conferred upon the President and

the Governors of the States.

 Supreme Court said that the requirement of laying an ordinance before Parliament

or the state legislature is a "mandatory constitutional obligation cast upon the

government".

 Legislation by ordinances is not an ordinary source of law-making but is intended

to meet extraordinary situations of an emergent nature, during the recess of the

legislature“.

Judicial Powers of the President

 The President appoints the judges of the Supreme Court and the High Courts along

with their Chief Justices.

 Article 143: The President can seek advice on matters of law or fact from the Supreme

Court.

 Article 72: Pardoning power of the President.

 The President can grant pardon, reprieve, respite and remission of a punishment.

 He can suspend, remit and commute the sentence of any person convicted of any

offence.

Analyzing the Pardoning Power of the President

 The power to pardon is not about punishment but about redemption.

 Clemency is not a door which the President may open to let mercy through, but to see

if fairness has not been ensured.

 It is not a gift for the President to lavish on the criminal, but it is a power that the

people of India have conferred on him to see if the different codes to ensure justice

have not done their job.

 6

 Mercy, when prayed for by one sentenced to death, is not just about an individual's

scream for life against its judicial extinction, but part of humanity's journey towards

a higher order.

 Article 72 is not about the law, it is about the sovereign's overview of the human

situation involved in capital crime which the law cannot see or evaluate and thus satisfy

the thirsts of society's human sensibilities.

 The first six Presidents of independent India received 263 mercy petitions from those

who were on death row, of which only one was rejected and the rest commuted to life

imprisonment.

 The only rejection of a mercy petition was by Dr Rajendra Prasad during the tenure

of the first six Presidents from 1950 to 1982.

 Prasad commuted 180 out of 181 petitions that he received.

 S Radhakrishnan, Zakir Hussain and V.V. Giri received 57, 22 and 3 mercy petitions

respectively and all were commuted to life.

 President Zakir Hussain's tenure (1967-1969) was attenuated by death.

 President Fakhruddin Ali Ahmed and Neelam Sanjiva Reddy didn't have to deal with

any mercy petition during their tenure.

 President R. Venkataraman's tenure (1987-1992), witnessed the “rarest of rare”

principle, which brought the number of mercy petitions down.

 The first year of his tenure (1987-1992), saw a backlog of mercy petitions. He rejected

45 mercy petitions.

 President K.R. Narayanan's tenure (1997-2002) saw an even smaller number of

petitions.

 When the recommendation was one of rejecting the appeal for commutation, Mr

Narayanan explored the farthest limits of the case's 'rare' ness.

 7

 In the manner that he probed the recommendation, he made it clear to the Home

Ministry and, in particular to the sensitive Home Minister Indrajit Gupta, that he was

not a “hanging President".

 K.R. Narayanan and APJ Abdul Kalam according to the Law Commission "put the

brakes" on the disposal of mercy petitions.

 During the tenures of K.R. Narayanan and Pratibha Patil, both disagreed with the

home ministry's recommendation to confirm death sentences in a majority of cases

before them.

 Pratibha Patil commuted the death sentence to life in 34 cases while rejecting 5 mercy

petitions.

 "Sitting on" mercy petitions is abdication. (Renounce)

 'Disposing of' recommendations for rejection in the manner of an input-output

equaliser is automation.

 Article 72 is neither meant to be “switched off” nor put on a “treadmill”.

 Article 72 too should be exercised keeping in mind that “the collective consciousness of

the society is satisfied or not”.

 Moreover, in the name of misplaced humanitarian concerns acts of terror and grave

crimes against women shouldn't be pardoned as this is viewed often as a weakness of

the Executive and an injustice to the victims of the crime.


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 1

DAILY
CLASS NOTES
Public Administration

Lecture - 97
President (Part 2)
 2

President (Part 2)

Financial Powers of the President

 Article 112: He causes to be laid before the Parliament the ‘Annual Financial
Statement’, i.e. the Union Budget.

 Money bills can only be introduced in parliament after the prior recommendation of
the President.

 No demands for grants can be made without the prior recommendation of the
President.

 He can make advances from the Contingency Fund of India to meet unforeseen
expenditures.

 He constitutes the Central Finance Commission every five years or earlier to make
recommendations about the net share of taxes between the Union and the States.

Diplomatic Powers of the President

 The President of India enjoys the following Diplomatic powers

 International treaties and agreements that are approved by the Parliament are
negotiated and concluded in his name.

 Because the President is the “Head of the State”.

 He is the representative of India in international forums and affairs.

Military Powers of the President

 Article 53(2) provides the relationship between the President and the Military.

 Article 53(2): The supreme command of the Defence Forces of the Union shall be vested
in the President.

 He appoints the Chief of

 Army

 Air force

 Navy
 3

 However, the President has limited discretion in this aspect to prohibit him from
becoming a dictator.

 President functioning is based on Theory X and works under the guidance of the
Council of Ministers.

Emergency Powers of the President

 The constitution of India provides certain extraordinary powers to deal with some
extraordinary situations.

 The president can declare three types of Emergencies in India as per the constitution.

 National Emergency

 President's Rule

 Financial Emergency

 National Emergency - Article 352

 Basis- War, External Aggression and Armed Rebellion.

 In the original constitution, internal disturbance was one of the basis but was
replaced with armed rebellion through the 44th Amendment 1978.

 Article 352(3): The President can declare a National emergency only on the
written recommendation of the Union Cabinet (44th Amendment).

 Parliamentary approval → within one month and with a special majority. (44th
Amendment).

 Duration→ Maximum for 6 months at a time and can be extended for an indefinite
period of time by periodical approval every 6 months by the Parliament.

 Can direct the State with regard to the execution of its executive powers.

 Can alter the pattern of distribution of Financial resources between the Union and
the States.

 He can declare for the suspension of enforcement of Fundamental Rights (except

Article 20 and Article 21).

 Article 19 can also be suspended in case of national emergency is imposed on the

basis of war or external aggression. (External Emergency).

 4

 President's Rule - Article 356

 The president can declare presidential rule in the State on two grounds

 Article 356- If constitutional machinery in a State fails.

 Article 365- If a State fails to comply with the directions given by the Union

government.

 Parliamentary approval → Within 2 months and with a simple majority.

 Duration- for 6 months at a time and a maximum of 1 year but can be extended

for two more years if

 A National Emergency is proclaimed in India.

 The Election Commission recommends not to conduct elections in the state.

 The President can assign to himself all or some functions of the State government

and all or any of the powers vested in the Governor.

 Can promulgate an ordinance for the administration of the State.

 The President dismisses the state Council of ministers.

 From 1967 to 1992, there was frequent usage of presidential rule imposed

on the state and thus clear domination of the centre over states.

 Governor governs the State as a representative of the President in the State.

 The Chief Secretary works as the principal advisor to the Governor.

 The President can declare, that the powers of State legislature can be exercised

under the authority of Parliament.

 Parliament passes State legislative bills and the Annual Financial Statement of the

State.

 Financial Emergency

 It can be proclaimed if the President is satisfied that there is a crisis of financial

stability and credibility in India or any part of it.

 5

 Parliamentary approval→ within 2 months and with a simple majority.

 Duration → Can be proclaimed for an indefinite period once passed by the

Parliament.

 He can give direction to states to observe the canons of financial propriety.

 He can give direction for the reduction of salaries and allowances of all or any class

of persons serving under the Union and the State including the judges of the

Supreme Court and High Court.

 All money bills and other financial bills are to be reserved for the consideration of

the President.

Constitutional Position of the President

 India being a Parliamentary democracy the constitution has defined the role and

position of the President as given below:

 President - A De’Jure head.

 I.e. by law

 Thus Legal-Rational Authority

 Council of Ministers headed by the Prime Minister → De’Facto head

 The President has to exercise his powers and authority on the advice of the council

of ministers headed by the Prime Minister.

 Element of Domination

 The Supreme Court has held that Article 74(1) is mandatory and the President cannot

exercise his powers without the aid and advice of the Council of Ministers, with the

Prime Minister at the head.

 Situational Discretion

 Very limited constitutional discretion but the President have some situational

discretion:
 6

 Appointment of the PM: when no party or coalition has the majority for

example in 1989, President Venkataraman appointed V. P. Singh as the PM

as he was the leader of the largest party, Janata Dal.

 Again in 1990, President R Venkataraman appointed Chandrasekhar as Prime

Minister and in 1991 he appointed P.V. Narasimha Rao as Prime Minister who

was the leader of the then largest minority party, INC.

 In 1996, President Shankar Dayal Sharma invited Atal Bihari Vajpayee, leader

of the largest minority party in the newly elected hung House, to form a

government, advising him to seek a confidence vote.

 Coalition Era.

 In 1998, President Narayanan did not go through the motions of accepting

the claim of the largest minority party, BJP, led by Vajpayee to form the

government. Instead, he first called all major parties, to understand their

stand and satisfied himself that the BJP did have the support of the majority

in the House before inviting Vajpayee to form a government.

 Example of Economic Man, Completely Rational Decision.

 In 1999, after the defeat of the Vajpayee govt by one vote, President K.R.

Narayanan declared fresh elections by not accepting the claims of Sonia Gandhi

and Vajpayee.

 President K.R. Narayanan exhibited “Theory Y” traits.

 Dismissal of the Council of Ministers when it fails to prove its majority in the

Lok Sabha.

 Appointing the Prime Minister if a serving Prime Minister dies and there is no

obvious successor.
 7

 Constitutional Discretion

 Not explicitly but implicitly President has some constitutional discretion.

 Article 111- Veto Power of the President.

 Article 78- The President enjoys the right to seek information from the PM

regarding the administration of the affairs of the union.

Indian President: Analysing the role over the Years

 India's first President, Rajendra Prasad frequently disagreed with Prime Minister

Jawaharlal Nehru and sometimes subtly criticised the government in his public

speeches.

 Example of “Theory Y” and Integration.

 The position of the President hit a low when the fifth President Fakhruddin Ali Ahmed

agreed to the then-prime minister's demand for a declaration of National emergency.

("Rubber Stamp").

 Immaturity trait of Chris Argyris.

 President V.V. Giri accepted Indira Gandhi's decision to sack the Charan Singh

government in Uttar Pradesh.

 When the Privy Purse Abolition Bill was defeated in the Rajya Sabha, Mr. Giri gave

assent to an Ordinance for the same.

 He was considered “The Prime Minister's President, The Loyalist President and The

Rubber Stamp President”.

 The independence of the office eroded during his tenure.

 Neelam Sanjeeva Reddy renounced his Official Residence and took a 70% cut in his

salary as a gesture towards the poor economic conditions in 1977.

 He signed an ordinance that gave the government wide powers to arrest and detain

individuals for a year under preventive detention.

 8

 At the same time, he vetoed the Ordinance for state funding of candidates who stood

for election proposed by the Charan Singh Government.

 President Giani Zail Singh was often seen as a loyalist of the then-Indian PM Indira

Gandhi.

 The most controversial legacy of Mr Singh was that he gave approval to "Operation

Bluestar".

 Mr Singh later went on record to claim that the Prime Minister never took him into

confidence.

 President Giani Zail Singh had a stormy relationship with the then Prime Minister

Rajiv Gandhi.

 Mr Singh withheld his assent to the controversial "Indian Post Office (Amendment) Bill"

which curtailed the freedom of speech and expression and used Pocket Veto for the

same.

 one of the leaders who persuaded the President was Pranab Mukherjee.

 Reports of the era indicate that Mr. Singh contemplated sacking the Rajiv Gandhi

government over the Bofors Scandal.



 1

DAILY
CLASS NOTES
Public Administration

Lecture - 98
President (Part 3)
 2

President (Part 3)

 The ninth President Shankar Dayal Sharma returned two Executive Ordinances to the

cabinet in 1996 because they had been inappropriately issued before the general

election.

 One was to give Dalit Christians Scheduled Caste status and the other one was to

reduce the time of election campaigning from 3 weeks to 2 weeks which would have

affected the prospects of the opposition party.

 He thus used his position to check the excess of the Executive and usurping the role of

the Parliament.

 Mr Sharma rejected the mercy petitions of all the 14 convicts placed before him.

 Thus he was termed as an Activist President.

 President K.R. Narayanan brought in transparency in the working of the President.

 He set high standards and precedents for the office of the President and enlarged the

scope of the country's highest constitutional office.

 He often described himself as a "working President" who worked "within the four

corners of the Constitution"; something midway between an "executive President" who

has direct power and a "rubber-stamp President" who endorses government decisions

without question or deliberation.

 His tenure is memorable for his participation as a voter in the 1998 General Elections

and for not dismissing the Kalyan Singh Government in Uttar Pradesh, in 1997 and

the Rabri Government in Bihar, in 1998.

 The Vajpayee government had lost a no-confidence vote when the Kargil conflict broke

out.
 3

 Mr Narayanan asked Mr Vajpayee to discuss the conflict in the Rajya Sabha even

though there was no convention.

 Example of Non-Programmed decision.

 A.P.J Abdul Kalam is fondly remembered as the People's President.

 He went on record to say that the toughest decision that he had to take during his

tenure was the signing of the "Office of Profit Bill".

 Mr Kalam was criticised for his inaction over 20 of the mercy petitions out of the 21

he received.

 He drew flak again for supporting the Kudankulam Nuclear Power Plant.

 He took the controversial decision of dismissing the then-Bihar Government in 2005.

 President Pratibha Patil's stint as the President was mired in controversy over her

Government funded foreign trips often accompanied by family and relatives.

 This is evident from the fact that her foreign travels cost the exchequer Rs 205 Crore,

more than any other President.

 She drew flak for waiving the death penalty of 35 convicts.

 The gifts received by the President should be deposited with the official treasury of

gifts.

 However, Mrs Patil did not adhere to this protocol.

 Her acquisition of land in Pune for the construction of her retirement home was not

devoid of controversy.

 President Pranab Mukherjee spent a great deal of time in promoting the standards of

higher education and also urged the political leadership to maintain Constitutional

Probity.

 He cleared 32 mercy petitions out of which 28 were rejected.

 He is the first President to teach schoolchildren while in office.

 4

 He opened a Twitter account for the Rashtrapathi Bhavan to stay connected with the
people.

 President Ramnath Kovind has neither courted controversy nor created any new
precedents, unlike his predecessors.

 He is seen as a "loyalist" to the present government and has been following the advice
of the Council of Ministers in letter and spirit.

The Prime Minister

 India has a Parliamentary form of government.

 Prime Minister and the Council of Ministers→ De Facto executive.

 The Prime Minister is referred to as Primus inter pares i.e., first among the equals who
is the most instrumental person in a parliamentary government.

 "Moon among the Stars".

 "Sun around which the system revolves".

 The Prime Minister is the core and heart of the Central government and
administration.

 He is the CEO of the Union Government.

 The personality and style of the person determine the nature and functioning of the
union government.

 Article 74, Article 75 and Article 78 in a way defines the role of the Prime Minister
in India.

 It is very clear that without a PM the Council of Ministers cannot function so the PM
is a very decisive element in the Council.

 The 91st Amendment of 2003 brought some changes.

 The size of the Union Council of Ministers has been fixed to 15% of the total strength
of the House of the People (Lok Sabha).

 A member of either of the houses, belonging to any political party who is

disqualified under the anti-defection law, will also be disqualified from being

appointed as a minister.
 5

 The PM in a parliamentary form of government is the most important functionary.

 The powers and functions of the PM are multifaceted and multi-dimensional.

 The vision and mission of the PM decide the fate of the people of the country.

 He is the "Pradhan Sewak" who is decisive in ensuring “Sabka Saath Sabka Vikas"

(Inclusive Development).

Powers and Functions of the Prime Minister

 The PM is the leader of the house and enjoys the following powers.

 Announces the government policies on the floor of the house.

 Advises the President about the summon and prorogue of the Parliament.

 The PM can recommend the dissolution of the Lok Sabha at any time.

 The PM responds to all the queries made by members of the Parliament related to

important aspects of administration.

 In the recent past, it is seen that the PM is taking an extra-constitutional route

and the frequent use of ordinances which tends to undermine the institution of

Parliament.

 With the growing personality cult in Indian politics, it looks like the space of

Parliament is shrinking.

Prime Minister and Council of Ministers

 The PM allocates and reshuffles various portfolios among the ministers.

 He can bring the collapse of the ministry by resigning from the office.

 The relationship between the PM and the CoM depends upon the authority and

strength the PM has in the CoM.

 If the PM is in a position of authority then he is very powerful, on the contrary, if

there are multiple powerful personalities within the CoM, then the PM’s position is not

that authoritative.
 6

 Nehru-Vallabhbhai Patel, the position of Nehru was compromised.

 Indira Gandhi was quite weak in her initial period because of the presence of various

towering personalities in her cabinet.

 However, Indira Gandhi (later) and Rajiv Gandhi enjoyed a lot of authority as there

were no powerful individuals or critics in their cabinet.

 Due to large political clout and acceptance Vajpayee also enjoyed the same authority

and respect irrespective of the Coalition government.

 For Manmohan Singh, the comfort level was not the same as there were powerful

individuals in the cabinet.

 PM Modi enjoys an unparalleled authority and position as there is no one to challenge

or even raise an opinion against him within the CoM.

 Due to the strong mass support, and charisma and larger than the party image, the

current PM enjoys all the comfort and authority within the Council of Ministers.

Prime Minister and President

 The relations between the President and the PM have seen many ups and downs in

India.

 The relationship depends upon the stature of the kind of support the PM has within

his party and the political condition in the country.

 Between Dr Rajendra Prasad and Jawaharlal Nehru, the relations witnessed some

differences and disputes.

 On the Somnath temple issue, Hindu code bills and the Imposition of President's rule

in Kerala, both have crossed swords with each other.

 President S Radhakrishnan openly criticised Nehru over the manner in which the NEFA

(North-East Frontier Agency) crisis was handled.

 Radhakrishnan enjoyed respect and authority due to his stature.

 7

 The 1970s and 80s saw the era of the Prime Minister's President.

 Dr Zakir Hussain, V V Giri and Fakhruddin Ali Ahmed gave their fullest support to

Indira Gandhi.

 Neelam Sanjeeva Reddy was not that supportive of Morarji Desai.

 Giani Zail Singh was very supportive to the then Indira government as Mrs Gandhi

was very powerful.

 Rajiv Gandhi also enjoyed very comfortable relations with Mr Singh initially but in the

later half of the Rajiv government, the relations became sour.

 1989 President Giani Zail Singh used the famous pocket veto over the India Postal bill.

 Post-1989 is marked by an era of activist Presidents.

 President Narayanan was very active as his era was marked by political instability.

 He started the "Letter of Support System" for the formation of the government.

 He also was very assertive in turning down the decision of imposition of “President

Rule” in Uttar Pradesh and Bihar.

 President Kalam used a suspensive veto in the case of the “Office of Profit bill” in 2006.

 Between 1989 and 2007 the President were active and there was an era of Coalition

and political instability so the President, to an extent, restricted the role and position

of the PM.

 Dr Pranab Mukherjee guided and supported PM Modi on many issues.

 Dr Pratibha Patil and Dr Ram Nath Kovind were non-assertive.

Analysing the Role of Prime Minister

 Theoretically in a Parliamentary democracy, it is the PM who holds the decisive

authority.

 Practically the majority in the Lok Sabha, the place of the PM within the party,

political condition, the opposition, the personality and style of the PM and public

opinion decide the power and impact of the PM in the Indian Democracy.
 8

 Jawaharlal Nehru-led congress government had the vast majority and the opposition

was marginal.

 Nehru had a greater say in the decision-making of the government.

 Due to the presence of Sardar Patel and other strong personalities within the cabinet

and the party, Nehru was challenged as well.

 After the demise of Patel, Nehru enjoyed greater authority.

 Foreign policy and the economic policy of India was articulated by Nehru.

 Nehru was a great believer of Parliamentary norms so he always tried to bring

consensus.

 Integration

 Participative leadership

 Lal Bahadur Shastri initially faced lots of challenges in his short tenure but after

winning the 1965 war with Pakistan he became popular.

 Indira Gandhi, when she took over the post, was weak as she was opposed within the

party and also the political condition was not conducive.

 Dominative, exploitative authority.

 After the 1969 Presidential election and the 1971 Bangladesh Liberation War, Mrs

Gandhi grew in stature within the party and among the people.

 The then political condition, the mass support and the personality of Indira Gandhi

designed the strongest PM of India.

 This was a peak of Growth Needs, Self-Esteem and Self-Actualisation.

 After the split within the Congress, the 1971 war and Pokhran I, Indira Gandhi

enjoyed unparalleled power and authority within the government and within the

party.
 9

 She went ahead and imposed an Emergency in India and brought in the 42nd

Amendment in 1976.

 Authoritative, Exploitative, Non-consulting, Unilateral, Top-Down communication.

 The relationship between the executive and the judiciary reached the lowest level as

the separation of power was disturbed.

 Morarji Desai was not that powerful as he was leading a coalition government under

the umbrella of the Janta Party.

 It was also a short-lived government so nothing very notable and significant happened

but Mr Desai was also a believer of parliamentary norms.

 He changed the name of the Prime Minister's Secretariat to the Prime Minister's Office.

 Rajiv Gandhi who was said to be an unwilling PM, laid the foundation of modern India.

 He took bold steps to sort out insurgency problems in the North-East and Punjab.

 Assam Accord, Operation Black Thunder.

 In 1987 he sent an Indian peacekeeping force to Sri Lanka (to resolve the LTTE issue).

 Mr Gandhi enjoyed popular support within the party and also from the people.

 Shah Bano's episode and the Bofors arms scandal weakened the political aura and

image of Rajiv Gandhi.

 Within the party and from the opposition Mr Gandhi faced criticism.



 1

DAILY
CLASS NOTES
Public Administration

Lecture – 99
Prime Minister
 2

Prime Minister

❖ “Gali Gali me shor hai, Rajiv Gandhi chor hai” became the catchphrase.

➢ This showcases the erosion of the personality of the Prime Minister.

❖ As a result, he lost the 1989 polls.

❖ V.P. Singh and Chandrashekhar were very short-lived Prime Ministers.

❖ P.V. Narasimha Rao became the PM in 1991.

❖ The father of economic reforms in India as he had both the vision and the courage to

push them forward.

❖ He brought changes in Foreign policy according to the New World Order.

❖ From 1996 to 1998, political instability was there.

❖ PM had all the powers principally but was never able to use these powers practically.

❖ Coalition government became a new normal in Indian politics.

❖ "Coalition dharma” weakened the powers and authority of the PMs.

➢ Participative Decision Making.

➢ Coalition partners becoming multitudinous monarchs.

❖ From 1998 to 2004 Atal Bihari Vajpayee was in power.

❖ Being tall in stature and widely accepted across all political parties, he enjoyed much

authority as PM even though he was running a coalition government.

❖ The Kargil episode and Pokhran II made Vajpayee more famous and he was eventually

recognised as a Statesman.

❖ From 2004 to 2014 Dr. Manmohan Singh was in power.

❖ A general perception is that he was a weak PM but it is not true.

❖ He went ahead with the Indo-US nuclear deal despite opposition from coalition

partners.

❖ As his personality and style of functioning were very soft Mr Singh is often quoted as

a “weak PM”.
 3

❖ Mr Narendra Modi is often argued as the strongest PM and often parallels are drawn

between him and Indira Gandhi.

❖ Modi's style of functioning has been equated to “Prime Minister- President”, a new

hybrid political creature, because of Modi government's 3 most important decisions:

➢ Surgical strikes

➢ Abrogation of Article 370 and

➢ Demonetisation.

❖ They are examples of momentous, non-legislative unilateral executive orders.

❖ The induction of retired bureaucrats in the recent cabinet reshuffle is another instance

of a trend of growing reliance of the PM on professionals and experts.

❖ Mr. Modi enjoys unparalleled powers and authority.

❖ The political situation in the country, weak opposition, PM's charismatic personality

and style and political support that he has, all make Mr. Modi one of the strongest

PMs, India has ever seen.

PYQ

Q. "Ordinance-making power of the Executive needs to be suitably restrained." Examine

it critically. (10 Marks, 2015)

❖ Introduction:

➢ Explain about the ordinance and mention the article related to it.

❖ Body:

➢ Why restrain the Ordinance-making power

✓ Data

✓ Supreme Court ruling→ Especially on re-promulgation of ordinances.

➢ Why the ordinance-making power should not be restrained?

✓ Non-Programmed decisions need to be taken.

 4

❖ Conclusion:

➢ Ordinance making must involve integration and participative decision-making

else will lead to domination, win-lose and conflict in the system.

The Parliament

❖ Union Legislature known as Parliament.

❖ Article 79: Parliament comprises of the Council of States, The House of People and the

President.

❖ The President is an integral part of the parliament though he is not a member of either

of the houses.

❖ Rajya Sabha represents the federal character of the Indian State.

❖ The seats to the states in Rajya Sabha are allocated on the basis of population as per

Schedule IV of the constitution.

❖ The 42nd Amendment Act 1976 extended the tenure of Lok Sabha from 5 to 6 years

but it was restored to its original term of 5 years through the 44th amendment 1978.

❖ Parliament can re-adjust the seats in Lok Sabha on the basis of population after every

census.

❖ Parliament is the supreme body to legislate in India.

❖ The Indian Parliament does not enjoy complete sovereignty as the British Parliament.

❖ The Indian constitution follows the doctrine of legislative competence, i.e., Parliament

can make laws as per the space provided by the constitution.

❖ The Constitution has provided for the law of Judicial Review.

❖ Administrative Functions

➢ Discussion and debates

➢ Motions and resolutions

➢ Questions and censure

 5

❖ Financial Functions

➢ Article 112: Annual Financial Statement

➢ The Legislature has to take care of the public money and also safeguards the

economic interest of the common man.

➢ Article 265: No taxation without representation.

❖ Quasi-Judicial function

➢ Article 61: Impeachment of the President.

➢ President can remove some functionaries only on the recommendation of the

Parliament. (Judges of Supreme Court and High Court, CAG and Chief Election

Commissioner)

➢ Can impose penalties in case of contempt or breach of privilege.

❖ There are three designated roles for Parliament in a democracy.

➢ It is responsible for legislation– laws of the land – by which people govern

themselves (Legislative Responsibility).

✓ Make Laws

➢ It must ensure accountability of governments – on policies or actions —to the

people (Monitoring Responsibility).

✓ Check on Exeuntive

➢ To represent the views and aspirations of the people of their constituency in

Parliament (Representative responsibility).

✓ Represent the people

❖ In the Indian democratic set-up, the role of the Parliament has seen its ups and downs.

❖ The Nehruvian era was marked by constructive and disciplined acts of the

parliamentarians.

❖ Nehru himself was a great believer in Parliamentary traditions.

❖ Discussions and debates were very much a part of Parliamentary democracy.

 6

❖ Post-Nehruvian era witnessed a decline in the vibrant functioning and role of the

Parliament.

❖ It was more about stalling and walking out of the Parliament.

❖ The debate and discussions were on party lines.

❖ Criminalisation of politics and rampant corrupt practices diminished the role and

stature of the Parliament.

❖ The process of legislation is slow and lagged. There are times when it extends from one

Parliament to the next.

❖ Laws are often passed in a rush through loud voices or large numbers. There is little

scrutiny of draft legislation.

❖ It would appear that governments are more accountable to people at election time

than they are to Parliament in session.

❖ The examination, analysis and evaluation by Parliament, so essential for invoking

accountability, are not quite there.

❖ MPs are more often than not, reluctant to ask questions, especially from the ruling

party.

❖ The opposition is more involved in politicising the issue rather than going for

constructive debates and discussions.

❖ Questioning the government is akin to questioning the Individuals which at times

becomes personal.

❖ Discourse and debate on issues of national importance were an attribute and highlight

of Parliament during the first two decades of the republic, until around 1970 but it

eroded with the passage of time.

❖ The discussion at present is mostly on party lines.

❖ Differences lead to protests in the form of walk-outs or rushing to the well of the house.
 7

Data related to the Functioning of Parliament

❖ Number of Sitting days in the Lok Sabha and the Rajya Sabha since 1952

❖ Bills passed by the Parliament

❖ Referring the Bills to the Parliamentary Committee

 8

❖ Discussion on the General Budget


 1

DAILY
CLASS NOTES
Public Administration

Lecture - 101
Anti-defection Law
 2

Anti-defection Law

 In another case, the Supreme Court held that if a member belonging to a political
party is expelled from the party after being elected, he shall continue to belong to that
party as an unattached member.

 If such a member joins another political party “after being expelled” from his original
party, he will be deemed to have voluntarily given up his membership of the original
party.

 The Halim Committee Report on the Review of Anti-Defection Law (2003)

recommended that the term 'voluntarily giving up of membership' should be
comprehensively defined in the Tenth Schedule.

 In its 170th report, the Law Commission of India (1999) observed that the country's
experience with the Tenth Schedule had not been a happy one.

 The provision exempting splits in political parties from disqualification has been abused
the most.

 Since then, the provision that permitted splits by one-third of the membership has
been repealed.

 However, a merger with another party is permitted if two-thirds of the membership

opts for it.

 Goa (2022): Eight out of 11 MLAs of the Indian National Congress (INC) joined the
Bharatiya Janata Party (BJP) in the newly elected Goa Assembly.

 Maharashtra: 40 out of 55 MLAs of the Shiv Sena walked out of the coalition
government formed by the Shiv Sena, Nationalist Congress Party, and Indian National
Congress in Maharashtra.

 Madhya Pradesh (2020): In March 2020, 22 MLAs of the Indian National Congress
resigned from their membership of the legislative assembly which led to the fall of the
government in the state.
 3

 Karnataka (2019): 17 MLAs from the ruling coalition of Indian National Congress and
Janata Dal (Secular) resigned from their membership of the Karnataka Legislative
Assembly.

 These are also termed as the perils/problems of coalition government.

 According to the Tenth Schedule, the decision on whether to disqualify a member from
the House is taken by the Speaker (Lok Sabha and State Legislative Assembly) or the
Chairman (Rajya Sabha and State Legislative Council).

 In such cases, the presiding officer's decision is final.

 The Supreme Court has held that the provision granting finality to the order of the
speaker/chairman is valid.

 While functioning under the Tenth Schedule, the presiding officer acts as a tribunal
and exercises judicial power.

 Decisions taken in such capacity are subject to judicial review.

 However, while judicial review is permissible, it should not cover any stage prior to the
presiding officer taking a decision on the question of disqualification.

 The judiciary is only looking at whether the due process is being followed or not
and will not go into the merit of the case.

 It is important that the decisions taken by the presiding officer under the Tenth
Schedule are impartial and independent of political considerations.

 The role of the presiding officers is such that they are assumed to be impartial.

 However, in several instances it has been seen that the presiding officers do not
disqualify legislators or delay the decisions regarding disqualifications, therefore putting
their allegiance into question.

 The minority view in the Kihoto Hollohan case (1992) held that the Speaker is
dependent on the continuous support of the majority in the House.

 Thus, he does not meet the requirement of an independent adjudicating authority

under the Tenth Schedule.

 The Law Commission (2015) noted that legal challenges against decisions taken by
Speakers on disqualification erode the confidence placed in the office of the Speaker.
 4

 The Commission recommended that the power to decide on questions of disqualification

on the ground of defection should be vested with the President or the Governor, who
should act on the advice of the Election Commission of India (ECI).

 However, this solution also is based on the assumption that the ECI acts in an impartial
manner.

 Another lacuna (shortcoming) associated with the decision-making power of the

presiding officer under the Tenth Schedule is the absence of a timeline to make
decisions.

 The Anti-Defection Law is silent on the maximum time within which a decision must
be taken on questions of disqualification.

 The Supreme Court (2020) has observed that while acting as a tribunal under the
Tenth Schedule, the speaker is bound to decide disqualification petitions within a
reasonable period.

 While what time period is reasonable will depend on the facts of each case, the Court
held that disqualification petitions must be decided within three months from when
they are filed.

 Some Examples

 Manipur: In the elections for the 11th Manipur Legislative Assembly in 2017, none
of the political parties could secure a clear majority. The BJP staked a claim to
form a government in the state with the support of an MLA who had been elected
on the ticket of the Indian National Congress. The MLA was made a minister in
the BJP-led government in Manipur. The speaker of the legislative assembly took
no decision on the multiple disqualification petitions filed against the minister for
switching parties after being elected to the House. In March 2020, the Supreme
Court removed the MLA from the state cabinet and restrained him from entering
the legislative assembly. About 10 days later, the MLA was disqualified by the
speaker.

 Example of Judicial Activism.

 “Safety needs” → to be in power.

 5

 Telangana: After the Telangana Rashtra Samithi (TRS) formed the government in
Telangana in 2014, 26 MLAs defected from opposition parties to join the TRS at
different points in time. However, the speaker of the legislative assembly in the
state took no decision on the disqualification petitions until the dissolution of the
legislature before elections.

 Andhra Pradesh: 23 MLAs from YSR Congress defected to the Telugu Desam Party
which was in power in the state. The speaker did not act on the petitions seeking
to disqualify these MLAs from their membership of the House. Four of these MLAs
were even appointed as ministers in the state government.

 West Bengal: After elections to the West Bengal legislative assembly in 2021, an
MLA who was elected on the ticket of the BJP was seen to have joined the ruling
All India Trinamool Congress. A petition was filed before the speaker to dismiss
him from the House on the grounds of defection. However, the speaker rejected
the petition to disqualify the MLA. The Calcutta High Court held that the speaker
had ignored some of the evidence which was placed on record to support the
disqualification petition against the MLA. On these grounds, the Court found the
speaker's orders to be perverse and unsustainable. The Court directed the speaker
to take a fresh decision on the petition after giving due regard to all relevant
documents. In June 2022, the West Bengal speaker again rejected the petition to
disqualify the MLA on grounds of defection.

 Most advanced democracies do not disqualify legislators for defecting against their
parties.

 Such members may be subject to internal party discipline including expulsion from the
party.

 The seating arrangement of the person changing his party allegiance may be modified
in the House.

 Only in five other countries, members can be disqualified from the House for changing
political allegiances as well as voting against the party line.

 These are Bangladesh, Guyana, Pakistan, Sierra Leone, and Zimbabwe.

 6

 However, in Pakistan a member can be disqualified from voting against party lines only
in certain cases.
 These include:
 Election of the Prime Minister or Chief Minister,
 Vote of confidence/no-confidence, and
 Money Bills or constitution amendment Bills
Parliamentary Privileges
 Parliamentary privilege refers to rights and immunities enjoyed by Parliament as an
institution and MPs in their individual capacity, without which they cannot discharge
their functions as entrusted upon them by the Constitution.
 Article 105 and Article 194 of the Indian Constitution lay down the powers, privileges
and immunities of Members of Parliament (MPs) and State Assemblies respectively.
 The privileges given to the members are necessary for exercising constitutional
functions.
 According to the Constitution, the powers, privileges and immunities of Parliament
and MPs are to be defined by the Parliament.
 No law has so far been enacted in this respect.
 In the absence of any such law, it continues to be governed by British Parliamentary
conventions.
 A breach of privilege is a violation of any of the privileges of MPs or the Parliament.
 Among other things, any action “casting reflections” on MPs, parliament or its
committees; could be considered a breach of privilege.
 This may include publishing news items, editorials or statements made in
newspapers, magazines, TV interviews or public speeches.
 Privileges enjoyed by Individual members:
 Freedom of speech in parliament
 It is the essence of democracy, as free and fearless expression of opinion is a
necessity.
 It is not only available to the MPs but also to the non-members who have a
right to speak in the house. Example:- Attorney-general of India.
 There is a limitation also which is provided in Article 118 and Article 121.
 7

 Freedom from Arrest

 The members enjoy freedom from arrest in any civil case 40 days before and
after the adjournment of the house and also when the house is in session.

 No member can be arrested from the limits of the parliament without the
permission of the house to which he/she belongs so that there is no hindrance
in performing their duties.

 If the detention of any members of the parliament is made, the chairman or

the speaker should be informed by the concerned authority, of the reason for
the arrest.

 Exemption from attendance as witnesses:

 The members of the parliament enjoy special privileges and are exempted from
attending court as witnesses.

 They are given complete liberty to attend the house and perform their duties
without any interference from the court.

 Collective Privileges

 The right to punish members and outsiders for breach of its privileges.

 Parliament has the power to punish any person whether a stranger or any
member of the house for any breach or contempt of the house.

 When any breach is committed by the member of the house, he/she is expelled
from the house.

 This right has been defined as a 'keystone of parliamentary privilege' because,

without this power, the house can suffer contempt and breach and is very
necessary to safeguard its authority and discharge its functions.

 Right to prohibit the publication of proceedings

 If any expunged proceedings are published or any misrepresentation or

misreporting is found, it is held to be a breach of the privilege and contempt
of the house.

 Protection is only granted if it reflects the true proceedings of the house.

 8

 Right to exclude strangers

 The members of the house have the power and right to exclude strangers who
are not members of the house from the proceedings.

 This right is very essential for securing free and fair discussion in the house.

 The right to regulate the internal affairs of the house

 Under Article 118 of the Constitution, the house has been empowered to
conduct its regulation for proceedings and cannot be challenged in a court of
law on the ground that the house is not in accordance with the rules made
under Article 118.

 They can deviate or change the rule at any time accordingly.

 Punishment for breach of privilege or contempt:

 Imprisonment

 Imposing fine

 Prosecuting the offender

 Punishment to the Members of Parliament

 Cases of Parliamentary Privileges:

 In 1967, two people were held to be in contempt of Rajya Sabha, for having
thrown leaflets from the visitors' gallery.

 In 1983, one person was held in breach for shouting slogans and throwing chappals
from the visitors' gallery.

 In 2008, an editor of an Urdu weekly referred to the deputy chairman of Rajya

Sabha as a "coward" attributing motives to a decision taken by him.

 In 2011 several MPs gave breach of privilege notices against actor Om Puri and
ex-policewoman Kiran Bedi for using "derogatory and defamatory" language
against Members of Parliament.

 Congress moved a breach of privileges motion in both houses of the Parliament

against Narendra Modi for providing wrong information about Rafale Deal to the
Supreme Court.
 9

 A counter breach of privilege was filed against Rahul Gandhi for misleading the
House with regard to the Rafale Deal.

 4 MPs moved a breach of privilege motion against Rahul Gandhi an MP for asking
to observe a two-minute silence without seeking the Speaker's permission.

 Congress MP moved a breach of Privilege against Finance Minister Nirmala

Sitharaman for calling Rahul Gandhi "the Doomsday Man of India".

Expulsion of Members of Parliament (MPs)

 In 2005, 12 MPs (11 from Lok Sabha and 1 from Rajya Sabha) were expelled from
the Parliament allegedly for accepting cash in exchange for raising questions in
Parliament.

 In a 4-1 verdict, the apex court upheld the expulsion of MPs on the basis of Article
105 and called it a “self-protection" exercise by the Parliament.

 A five-judge bench led by Chief Justice Y.K. Sabharwal also added that "the Judicature
is not prevented from scrutinizing the validity of the action of the legislature
trespassing on the fundamental rights conferred on the citizens... the judicial review of
the manner of exercise of the power of contempt or privilege does not mean the said
jurisdiction is being usurped by the judicature."



 1

DAILY
CLASS NOTES
Public Administration

Lecture - 102
Parliamentary Privileges
 2

Parliamentary Privileges

Expulsion of Members of Parliament (MPs)

 In 2005, 12 MPs (11 from Lok Sabha and 1 from Rajya Sabha) were expelled from
the Parliament allegedly for accepting cash in exchange for raising questions in
Parliament.

 In a 4-1 verdict, the apex court upheld the expulsion of MPs on the basis of Article
105 and called it a “self-protection" exercise by the Parliament.

 A five-judge bench led by Chief Justice Y.K. Sabharwal also added that "the Judicature
is not prevented from scrutinizing the validity of the action of the legislature
trespassing on the fundamental rights conferred on the citizens... the judicial review of
the manner of exercise of the power of contempt or privilege does not mean the said
jurisdiction is being usurped by the judicature."

 Article 105 of the Indian Constitution deals with “powers, privileges, etc of the Houses
of Parliament and of the members and committees thereof."

 The Supreme Court mentioned the third clause of Article 105 which says "In other
respects, the powers, privileges, and immunities of each House of Parliament, and of
the members and the committees of each House, shall be such as may from time to
time be defined by Parliament by law, and, until so defined, shall be those of that
House and of its members and committees immediately before the coming into force
of section 15 of the Constitution (Forty-fourth Amendment) Act, 1978."

 Some MPs claim that it limits the freedom of expression of MPs in the House.

 The Supreme Court made it clear in its verdict that “there is no basis to claim... absolute
immunity to the Parliamentary proceedings in Article 105(3) of the Constitution.

 The manner of enforcement of privilege by the legislature can result in judicial scrutiny,
though subject to the restrictions contained in the other Constitutional provisions, for
example, Article 122 or 212".
 3

 The court also added that the “truth or correctness of the material (relied upon by
the Legislature for taking action) will not be questioned by the court nor will it go into
the adequacy of the material or substitute its opinion for that of the Legislature".

 Mahua Moitra was not expelled by the Ethics Committee.

 The 'cash-for-query' case against Mahua Moitra was handed over to the Lok Sabha
Ethics Committee.

 The Committee conducted the enquiry into the matter, as per the rules.

 During the investigation, the Ethics Committee panel questioned Moitra and other
parties in the case.

 The Committee held Moitra guilty and recommended her expulsion from the Lok Sabha.

 The recommendations of the Committee were presented in the form of a report, as

the rules suggest.

 The report by the Ethics Committee is presented to the Speaker who may direct that
the report be laid on the table of the House.

 After the report has been presented, the Chairperson or any member of the Committee
or any other member may move that the report be taken into consideration
whereupon the Speaker may put the question to the House.

 Parliamentary Affairs Minister Pralhad Joshi moved a motion to expel the TMC leader
for "unethical conduct".

 Before putting the question to the House, the Speaker may permit a debate on the
motion, not exceeding half an hour in duration.

 After the motion made under sub-rule (1) is agreed to, any member may move that
"the House agrees, or disagrees or agrees with amendments, with the recommendations
contained in the report," the Lok Sabha in its document says.

 If the panel recommends any punitive action, a motion is brought to the House based
on the proposal and it is voted upon.

 Disqualification vs Removal
 4

 Rahul Gandhi was "disqualified" as the Lok Sabha MP following his conviction in a
defamation case.

 Moitra's case is not about the disqualification but removal.

 In Moitra's matter, there is no offence committed under the Indian Penal Code
(IPC), which is why the matter was referred to the Ethics Committee.

 Moitra was expelled following a voice vote in the House, and Rahul Gandhi was
disqualified after the Lok Sabha Secretariat issued a notice to him, informing the
*same.

 Suspension of member

 Provision for suspension of members is given in Rule 374 and Rule 374A of the
Lok Sabha Rules for the Lok Sabha and Rule 256 of the Rajya Sabha Rules for
Rajya Sabha.

 As per the rules, "the Speaker or Chairman, as the case may be, may name any
member to be suspended in case of willful disregard for the rules of the House or
causing disruption in conducting sessions."

 "After naming, a motion to that effect is moved, and that member is suspended
for a period not exceeding the remaining days of that session," it adds.

 While the privileges committee looks into complaints raised by MPs against officials,
media or other MPs, the ethics panel is the only committee that probes the layperson's
complaints against lawmakers of the Lok Sabha.

Parliamentary Committees

 Parliamentary committees increase the efficiency and expertise of Parliament.

 Given the volume of work and the limited time at their disposal, legislators are unable
to scrutinise every matter in detail on the floor of the House.

 Some of this work is entrusted to Committees, which are composed of groups of

Members of Parliament (MPs).

 These Committees review proposed laws, oversee activities of the executive branch, and
scrutinise government expenditures.
 5

 Their reports allow for informed debate in Parliament.

 Committees also provide a forum to build consensus across party lines, help develop
expertise in subjects, and enable consultation with independent experts and
stakeholders.

 For example, the Committee on Health and Family Welfare studied the Surrogacy
(Regulation) Bill, 2016 which prohibits commercial surrogacy but allows altruistic
surrogacy.

 As MPs come from varying backgrounds, they may not have had the expertise to
understand the details around surrogacy such as fertility issues, abortion, and
regulation of surrogacy clinics, among others.

 The Committee called upon a range of stakeholders including the National Commission
for Women, doctors, and government officials to better their understanding of the
issues, before finalising their report.

 Committees also provide a forum for building consensus across political parties.

 The proceedings of the House during sessions are televised, and MPs are likely to stick
to their party positions on most matters.

 Committees have closed-door meetings, which allows them to freely question and
discuss issues and arrive at a consensus.

 After a Committee completes its study, it publishes its report which is laid in
Parliament.

 These recommendations are not binding, however, they hold a lot of weight.

 For example, the Standing Committee on Health made several recommendations to

the National Medical Commission Bill in 2017.

 Many of these were incorporated in the 2019 Bill, including removing the provision
for allowing a bridge course for AYUSH practitioners.

 There are 24 such Departmentally Related Standing Committees (DRSCs), each of

which oversees a set of Ministries.

 DRSCs were set up first in 1993, to ensure Parliament could keep up with the growing
complexity of governance.
 6

 These are permanent Committees that are reconstituted every year.

 They consist of 21 Members from Lok Sabha, and 10 Members from Rajya Sabha, and

are headed by a Chairperson.

 The DRSCs primarily look at three things:

 Bills

 Budgets

 Subject-specific issues for examination.

 Standing Committees can be broadly categorised into four types:

 Subject,

 Financial,

 Accountability,

 Administrative.

 Parliament may also form Ad hoc Committees from time to time. For instance, the

Jan Vishwas (Amendment of Provisions) Bill, 2022 was referred to as a Joint

Parliamentary Committee, which is an Ad-hoc Committee.

 Such Committees are disbanded after submitting the report.

 Department-related Committees, or subject Committees, ensure oversight over each

ministry.

 A Minister is not eligible to be a member.

 Membership in Committees is allocated to parties in proportion to their strength in

the House.

 Subject Committees review proposed laws, select subjects for closer examination, and

scrutinise the allocated budget for each ministry.

 To ensure proper scrutiny of Bills before passage, they can be referred to a subject

Committee for detailed examination.

 Committees have contributed to improving laws passed by Parliament.

 7

 For instance, the Anti-Maritime Piracy Bill, 2019, mandated the death penalty if an

act of piracy caused death.

 The Standing Committee on External Affairs noted that the Supreme Court had ruled
that the mandatory death penalty violated the fundamental rights to equality and
liberty.

 It recommended that the penalty be modified to life imprisonment or death.

 Parliament incorporated this change when it passed the Bill.




 1

DAILY
CLASS NOTES
Public Administration

Lecture - 103
Parliamentary Committees
 2

Parliamentary Committees

 Financial Committees consist of three Committees: Estimates, Public Undertakings, and

Public Accounts.

 A minister is not eligible to be a member.

 The Estimates Committee examines pre-budget estimates of ministries.

 The Committee on Public Undertakings (CoPU) examines the functioning of public

undertakings.

 The Public Accounts Committee (PAC) reviews the government's spending statement
approved by Parliament.

 There are other Committees that investigate administrative and accountability matters
related to Parliament and the House's day-to-day business.

 These Committees include the Committee on Privileges, which examines questions

involving breaches of rights, privileges, and immunities enjoyed by Members of
Parliament.

 The Committee on Petitions examines complaints sent to it in the form of petitions by

the public.

 The effectiveness of Parliamentary Committees is crucial to the effective functioning of

Parliament.

 There are several areas where Parliamentary Committees need improvement and
strengthening.

 When parliamentary committees are not functioning properly or the bills are not
sent to them regularly, it results in the loss of accountability process.

 E.g.- Electoral Bonds were passed by the Parliament through the Finance Bill.
The scheme was struck down by the judiciary terming it a violation of
Fundamental rights → Article 19 (1) (a).

 Suggestions on making the Parliamentary Committees more effective.

 Referring all Bills to Committees:

 3

 Currently, Bills are not automatically referred to a Committee.

 The decision of whether a Bill should be referred to a Committee depends on

the decision of the Speaker or Chairman, in consultation with the Minister
presenting the Bill.

 Referring all Bills to a Committee would ensure that all laws go through a
minimum level of Parliamentary scrutiny.

 It can be linked with Rational Decision-Making, System 4 of Likert,

Integration of Follet, and Informal groupings as suggested by Elton Mayo.

 For example, the Motor Vehicles Act, 1988, requires the owner of every motor
vehicle to take third-party insurance, which will cover compensation awarded
to any person in case of an accident.

 An amendment Bill in 2016 capped the insurance payout at Rs 10 lakh in

case of death.

 The Standing Committee pointed out that the compensation would be

awarded by the courts and does not have an upper limit.

 Therefore, there should be no cap on the insurance payout so that it covers

the entire compensation.

 Parliament accepted this recommendation while passing the Bill.

 During the 17th Lok Sabha, until the end of the Monsoon Session of 2023,
17% of Bills have been referred to Committees.

 Discussing the recommendations made by the Committees or specifying the

reasons for rejecting certain recommendations is also not mandatory.

 However, discussing these details in the House could help make laws robust.
Further, consulting with experts on proposed laws may help address potential
gaps in legislation.

 If Parliamentary scrutiny is done it will easily pass the judicial test.

 The National Commission to Review the Working of the Constitution (2002)

noted that all Bills introduced in Parliament should automatically be referred
to subject Committees for detailed consideration and discussion.
 4

 Further, subject Committees should also review the implementation of laws

passed by Parliament in their respective subject.

 In some Parliamentary systems, such as the United Kingdom, all Bills other
than Money Bills are automatically referred to Committees.

 Attendance of MPs:

 Parliamentary Committees hold multiple meetings to discuss issues through

deliberations among Members.

 The participation of Members in these meetings is essential for the success of

the Committee system.

 However, the attendance of MPs in Committee meetings is low.

 In the 17th Lok Sabha, as of July 2023, the average attendance for subject
committee meetings was 47%.

 The attendance in financial Committees drops further to 37%.

 In comparison, attendance in Parliament was 79% for the same time period.

 This showcases a lack of interest and lack of knowledge among the members.

 The quorum for a Committee meeting is one-third of the Committee members,

which is around 10 members for a subject Committee.

 The National Commission to Review the Working of the Constitution Report

(2002) noted that there was large-scale absenteeism in Committee meetings.

 Further, it observed instances where a single Committee encompassed too

many ministries.

 It was noted that these Committees may not be able to conduct an in-depth
examination of the functioning of multiple ministries.

 This will lead to incrementalism and “muddling-through” phenomenon.

 Shortage of technical staff and experts:

 The role of Committees includes examining selected matters in greater depth

than is possible in the House and reporting any conclusions of those
examinations to the House.
 5

 Parliamentary Committees can consult with expert witnesses, stakeholders,

and the public to better understand complicated issues and the potential
impact of policies or legislation.

 The National Commission to Review the Working of the Constitution (2002)

recommended that funds be secured to assist these Committees in conducting
inquiries, holding public hearings, and collecting data.

 Currently, technical support available to Parliamentary Committees is limited

to a secretariat that helps with scheduling meetings and taking notes.

 This is in contrast to other democracies like Canada where the Library of

Parliament provides research staff to all Committees on request.

 They provide background information and identify potential witnesses for the
Committee.

 Committees are free to seek additional or more specialised research help from
outside the Library of Parliament.

 Public transparency

 Committee reports are usually made public, but the internal workings of the
Committee may not be transparent.

 As a measure of transparency, the minutes of Parliamentary Committee

meetings are included within the Committee reports.

 However, the meetings themselves are held behind closed doors.

 While closed-door meetings allow for greater room to reach party consensus,
they may hinder public awareness of key findings of Parliamentary
Committees.

 Therefore, the National Commission to Review the Working of the Constitution

(2002) recommended that major reports of all Parliamentary Committees be
discussed in Parliament, especially where there is a disagreement between any
Committee and the Central Government.

 In contrast, some other democracies provide live webcasts of meetings.

 6

 In Canada, Parliament allowed Committees to broadcast their proceedings

within guidelines established by the Committee on House Management in
1991.

 During the Covid-19 pandemic, the United Kingdom had live coverage of the
Health and Social Care Committee on the country's preparedness for the
pandemic.

 The National Commission to Review the Working of the Constitution (2002)

recommended certain reforms for Parliamentary Committees.

 These include the establishment of three new Committees:

 the Constitution Committee,

 the Committee on National Economy, and

 the Committee on Legislation.

 The Committee noted that it may not be necessary to continue the existing
Committees on Estimates, Public Undertakings and Subordinate Legislation as
the topic covered by them can be covered by the subject Committees or the
proposed Committees.

 The recommendation has not been implemented.

Indian Judiciary

 Indian Judicial System is largely a British Legacy.

 1773 Regulating Act established a Supreme Court in Calcutta.

 1861 Act established three High Courts- Bombay, Madras and Calcutta.
 7

 The Government of India Act 1935 established the Federal Court which was renamed
as Supreme Court of India on 28 January 1950.

 Part V, Article-124 to 147 deals about the Supreme Court's structure, composition,
powers and authorities

 Part VI, Article- 214 to 231 deals about the High Court's structure, composition,
powers and authorities

 Article 232 to Article 237 deals about the Subordinate Courts.

 Appointment of Judges

 Article 124

 The judges of the Supreme Court are appointed by the President.

 The CJI is appointed by the President after consultation with such judges of the
Supreme Court and High Courts as he deems necessary.

 The other judges are appointed by the President after consultation with the CJI
and such other judges of the Supreme Court and the High Courts as he deems
necessary.

 Consultation with the chief justice is obligatory in the case of the appointment of
a judge other than the Chief justice.

 From 1950 to 1973, the senior-most judge of the Supreme Court was to be
appointed as the Chief Justice of India.

 This practice was violated in 1973 and 1977 when A.N. Ray and M.U. Beg was
appointed as CJI superseding senior judges.

 In the Constitution, Article 124 and Article 217 state the provision about the
appointment of Judges in the Supreme Court and High Court.

 The dispute was/is related to the term "Consultation".

 The Supreme Court has given different interpretations of the word 'consultation'
in the very famous "The Judges Case".

 In the First Judges case (1982), the Court held that consultation does not mean
concurrence and it only implies exchange of views.
 8

 In the Second Judges case (1993), the Court reversed its earlier ruling and changed
the meaning of the word consultation to concurrence.

 The Executive has to accept the views given by the Judiciary.

 The Second Judges case gave birth to the "Collegium- System".

 In the Third Judges case (1998), the Court opined that the consultation process
to be adopted by the Chief Justice of India requires 'consultation of plurality judges'.

NJAC (National Judicial Appointment Commission)

 The 99th Constitution Amendment Act 2014 provided for a plural body for the
matters of appointment and transfer of the Judges, to replace the Collegium System.

 It was a six-member body which had.

 CJI and 2 senior-most Judges of the Supreme Court.

 Union Law Minister

 Presence of the Executive in the selection of Judiciary.

 2 eminent personality

 However, the Supreme Court upheld the collegium system and struck down the NJAC
as unconstitutional on the grounds that the involvement of the Political Executive in
judicial appointment was against the "Principles of Basic Structure". i.e. the
"Independence of Judiciary".



 1

DAILY
CLASS NOTES
PUBLIC ADMINISTRATION

Lecture – 104
Indian Judiciary
 2

Indian Judiciary

NJAC (National Judicial Appointment Commission)

❖ The 99th Constitution Amendment Act 2014 provided for a plural body for the
matters of appointment and transfer of Judges, to replace the Collegium System.
❖ It was a six-member body which had.
➢ CJI and 2 senior-most Judges of the Supreme Court.
➢ Union Law Minister
✓ Presence of the Executive in the selection of the Judiciary.

➢ 2 eminent personality
❖ However, the Supreme Court upheld the collegium system and struck down the NJAC
as unconstitutional on the grounds that the involvement of the Political Executive in
judicial appointment was against the "Principles of Basic Structure". i.e. the
"Independence of Judiciary".
❖ It is also known as the Fourth Judges Case and is being criticised as it indirectly
constitutionalised the Collegium System.
All India Judicial Services (AIJS)

❖ Why it is required?
➢ The service will give an opportunity for the induction of suitably qualified fresh legal
talent, selected through a proper all-India merit selection system.
➢ If such a service comes up, it would help create a pool of talented people who could
later become a part of the higher judiciary i.e. the 25 high courts and the Supreme
Court.
➢ Huge vacancy of Judges and recruitment delay
➢ Widening gap between the number of judges and cases.
➢ In the next 30 to 40 years the number of cases is expected to rise by 15 to 20
crore which will require 80000 judges.
➢ In 25 High Courts, there are approximately 1000 plus Judges.
➢ Former CJI Ranjan Gogoi raised concern over the pressure on the Judicial system.
✓ Lower Courts: More than 3 crore pending cases

✓ High Courts: More than 0.5 crore pending cases

 3

✓ Supreme Court: More than 80,000 pending cases

➢ AIJS was first proposed in 1958 by the Law Commission of India.

➢ 42nd Constitutional Amendment 1976 provided for an All India Judicial Services.
➢ Law Commission in its 1st, 11th and 116th (1986) report recommended the
creation of AIJS.
➢ NITI Aayog in its report "Strategy for New India @75" also supported the idea of
All India Judicial Services for making appointments in the lower judiciary.
➢ If created, it will fill some 5000 vacancies at the District and Subordinate Judiciary.
➢ AIJS can bring objectivity in the selection process and uniformity across the country.
➢ It can bring a wider representation of the disadvantaged sections of the society.
➢ Out of the 650 judges appointed across various High Courts over the past six years,
as many as 75.7 per cent (492 individuals) hailed from the General Category.
➢ A mere 3.54 per cent (23 individuals) were from the SC category, 1.54 per cent
(10 individuals) were from the ST category, 11.7 per cent (76 individuals) were
from the OBC category, while 5.54 per cent (36 individuals) were from minority
communities.
➢ The representation of women judges in High Courts stood at 14.1 per cent,
accounting for 111 women judges out of 790 currently working judges.
➢ The maximum number of women judges in Punjab and Haryana High Court → 15,
followed by the Madras High Court with 12 judges and the Bombay High Court
with 11 judges.
➢ In the Supreme Court, there are three women judges, accounting for a meagre
representation of 8.82 per cent of the current strength.
❖ Apprehension (Concern) against All India Judicial Services
➢ States are reluctant as they will lose their power of appointment and
administration in the lower judiciary.
➢ Language barriers are also cited as AIJS is a pan-India post.
✓ A person from another state may find it difficult to hold the proceedings in
other states and it will affect the quality of justice.

➢ Centralisation of the recruitment process will have a negative impact on state

recruiting agencies.
➢ The argument that recruitment through UPSC leads to efficiency is also criticised.
 4

➢ Space for promotion will be curtailed for those state officers who are already in
service if recruitment is made through AIJS.
➢ AIJS will only do a little to what is required, it is just the tip of the iceberg as
Judicial reform is much needed in India.
➢ Poor Judicial infrastructure and low remuneration are not addressed by the AIJS.

Judicial Review/Judicial Overreach/Judicial Activism

❖ In the Indian Parliamentary system, the doctrine of legislative competence is the

guiding principle.
❖ The Parliament has to work within the limits of the constitution which naturally allows
judicial review.
❖ In India, the constitution is paramount and supreme.

❖ Judicial Review is not explicitly mentioned in the constitution but it is implicit under

Article 13.

❖ It simply means the judiciary can declare a law null and void if it is not in accordance

with the provisions of the Constitution.

➢ E.g.- The electoral bonds struck down by the Supreme Court as unconstitutional.

❖ Article 13(2): The State shall not make any law which takes away or abridges the

rights conferred by this Part III and any law made in contravention of this clause shall,
to the extent of the contravention, be void.

❖ Shankari Prasad vs Union Of India (1951) and Sajjan Singh vs Rajasthan State 1954,

the Supreme Court had said that Parliament can amend any part of the constitution
including Part III (Fundamental Rights).

❖ 1967, Golaknath vs Punjab State → The Supreme Court reversed its position.

❖ Parliament came up with the 24th amendment of 1971 which says Parliament can

amend any part or all provisions of the constitution.

❖ The 1973 Kesavananda Bharati verdict established the concept of Basic Structure.

❖ Not only any law or an amendment to fundamental rights but any amendment to the

constitution or any law can be challenged if it is violating the constitution and can be
declared null and void.
 5

❖ Judicial Activism

➢ Judicial activism is the use of judicial power to articulate and enforce what is
beneficial for society whereas judicial overreach is when the judiciary starts
interfering with the proper functioning of the legislature and executive, thereby
encroaching upon the legislature and executive domain.
✓ Here, Theory X behaviour is exhibited by the Legislature and executive and the
Judiciary exhibits Theory Y behaviour.

➢ It simply means a more active and intense role played by the Judiciary.
➢ It means that the Judiciary not only looks into the legal or constitutional aspect of
the matter but also the natural and human side of the case is very important.
➢ A judge is generally considered more willing to decide constitutional issues and to
invalidate legislative or executive actions.
✓ E.g.- Prevention of Money Laundering Act Ammentdment → The judiciary
legitimise the Enforcement Directorate powers after recognising the menace of
money laundering.

✓ Similarly the Judiciary upheld the Aadhar Act and Demonetisation.

➢ The alleged ineffectiveness of the Legislature and Executive in India, has given rise
to Judicial Activism.
➢ Due process of Law is the basis of Judicial Activism.
➢ As the citizens become more aware, assertive, demanding and informed, they will
demand more rights.
➢ Public Interest Litigation has helped the cause of Judicial Activism as Locus Standi
need not be explained.
➢ In India, it was started by Justice PN Bhagwati and Krishna Iyer.
➢ By the 1980s and 90s, the legislature and executive became less effective which
provided the space to the third organ of the democracy which is the Judiciary.
➢ The legislature and the executive, basically politicians, lost their glory and credible
image.
➢ People have faith and trust in Judiciary so it started to play a more active role.
➢ 1978 Maneka Gandhi case, the Supreme Court established the "Due Process of
Law".
 6

➢ The concept of Public Interest Litigation and an informed citizenry eventually gave
rise to Judicial Activism.
✓ Collegium System

✓ Playing National Anthem

✓ Ban on Liquor

✓ Establishing the Due Process of Law

✓ The Basic Structure of the Constitution

❖ Judicial Overreach

➢ With increased complexity, more and more demands and

inadequacy of law at times, has certainly increased Judicial

Activism.

➢ More and more Suo moto cognizance and technological

advancement, have led to Judicial Overreach.

➢ Separation of power is disturbed because of this.

➢ When the Judiciary intervenes in the spheres of others, i.e., the legislature and the
executive, it is termed as Judicial Overreach.

➢ Judicial overreach is only when the Legislature and Executive underreach.

➢ There is a very thin line between Judicial Activism and Judicial Overreach.

➢ Judiciary stepping in policy matters especially related to fiscal policy, political

affairs, internal proceedings of the legislature, etc can be categorized as judicial

overreach.

➢ It is very hard to categorise what is Judicial Review, what is Judicial activism and

what is Judicial Overreach.

➢ Under Article 13 (2) it is the Supreme Court which has to ensure the Rule of Law.

➢ Examples of Judicial Overreach

✓ Banning on Diwali firecrackers citing pollution.

✓ Banning the use of private vehicles after 10 or 15 years.

✓ Denying the role of the Executive in matters of collegium.

 7

✓ Invalidating the National Judicial Appointments Commission Act

✓ Ban liquor sales at retail outlets that are within 500 meters of any National or
State highway.

✓ Cancellation of telecom licenses in 2G case.

✓ Judicial legislation in Vishakha's case regarding the prevention of sexual

harassment of women in the workplace.

✓ The Supreme Court of India's setting up of the Lodha Panel to probe the
allegations of corruption and match-fixing in cricket and betting scandals in
Indian cricket was seen as interference not warranting the involvement of the
apex court.

✓ Interference in the educational policies of the government (Islamic Academy of

Education and Ors Vs State of Karnataka).

✓ Sealing of unauthorised commercial operations in Delhi.

✓ In the Enforcing Contracts indicator, India achieved 163rd position in the

Doing Business Report 2020, an improvement of 23 positions from the 186th
rank in the Doing Business Report 2015.

Recommendation of 2nd ARC

❖ The National Judicial Council should be constituted, in line with universally accepted
principles where the appointment of members of the judiciary should be by a collegium
having representation of the Executive, Legislature and Judiciary.

❖ The Council should have the following composition:

➢ The Vice President as the Chairperson of the Council.

➢ The Prime Minister
➢ The Speaker of the Lok Sabha
➢ The Law Minister
➢ The Leader of the Opposition in the Lok Sabha
➢ The Leader of the Opposition in the Rajya Sabha

❖ In matters relating to the appointment and oversight of High Court Judges, the Council
will also include the following members:
 8

➢ The Chief Minister of the concerned State

➢ The Chief Justice of the concerned High Court

❖ The National Judicial Council should be authorized to lay down the code of conduct for

judges, including the subordinate judiciary.

❖ The National Judicial Council should be entrusted with the task of recommending

appointments of Supreme Court and High Court Judges.

❖ It should also be entrusted the task of oversight of the Judges and should be empowered

to enquire into alleged misconduct and impose minor penalties.

❖ It can also recommend approval of a judge if so warranted.

❖ Based on the recommendations of the NJC, the President should have the power to

remove a Supreme Court or High Court Judge.

❖ Article 124 of the Constitution may be amended to provide for the National Judicial

Council.

❖ A similar change will have to be made to Article 217.

❖ Also, since the Council is to have the authority to oversee and discipline judges, further

changes will need to be made to Article 217 (4).

❖ A Judge of the Supreme Court should be designated as the Judicial Values Commissioner.

❖ He/she must be assigned the task of enforcing the code of conduct.

❖ A similar arrangement should also be made in the High Court.

PYQs

Q. There has been an opinion that the ethos of Indian Judicial System continues to be
colonial. Suggest measures for raising the level of judicial excellence for achieving speedy
justice. (10 Marks, 2019)

❖ The Judicial System is colonial as there is a bureaucratic element in it such as

hierarchy in the form of an integrated Judiciary, and structure which led to a
huge pendency of cases.
❖ Suggestions to improve Judicial functioning
 9

➢ The Law Commission suggested All India Judicial Services.

➢ National Judicial Council suggested by 2nd ARC.

➢ Recent Measures

✓ E-Courts.

Q. “Judicial overreach to a large extent is a consequence of ineffective executive." Examine.

(15 Marks, 2018)

❖ Judicial Overreach Definition

❖ Theory Y exhibited by the Judiciary because sometimes the Executive exhibits

Theory X behaviour.

❖ But at times Judiciary can take Suo-Moto action

➢ National Anthem in Cinema Hall

➢ Liquour ban

➢ FCI food distribution.

❖ Article 13 implicitly provides for judicial review and it has become an integral

part of our constitution. As long as the judiciary goes on correcting itself, judicial

review at max will be confined to judicial activism and will not lead to judicial

overreach.

Cabinet Secretariat

❖ The Cabinet Secretariat is responsible for the administration of the Government of

India (Transaction of Business) Rules, 1961 and the Government of India (Allocation of

Business) Rules 1961.

❖ It facilitates smooth transactions, of business in Ministries/ Departments of the Union

Government.

➢ Integration aspect.

❖ It provides Secretarial assistance to the Union cabinet and cabinet committees.

❖ It assists in decision-making in Government by ensuring Inter-Ministerial coordination.

 10

❖ The Cabinet Secretariat ensures that the President, the Vice President and Ministers
are kept informed of the major activities of all Ministries/Departments.

❖ Development
➢ The executive council of the Governor-General was responsible for all government
functions before Independence.
➢ Later the works were divided among the members of the council due to growing
complexities.
➢ The portfolio system was introduced during Lord Canning's tenure.
➢ The Secretariat of the Executive Council was headed by the Private Secretary to
the Viceroy.
➢ Under interim government the Council for governor-general, was redesignated as
the Cabinet Secretariat.
➢ The Economic Committee of the Cabinet was shifted to the Cabinet secretariat in
1950.
➢ In 1954, the Organisation and Methods Division was established under the Cabinet
Secretariat.
➢ In 1957, the Defence Committee of the Cabinet was constituted under the Cabinet
Secretariat.
➢ 1961-Department of Statistics
➢ 1965- The Intelligence Wing
➢ 1966- The Bureau of Public Enterprises was brought under the Cabinet Secretariat.
➢ In June 1970 three departments namely:

✓ Department of Electronics

✓ Department of Scientific and Industrial Research and

✓ Department of Personnel

➢ The Directorate of Public Grievances was set up in the Cabinet Secretariat in March
1988.
➢ 1997-National Authority, Chemical Weapons Convention (CWC).
➢ The Direct Benefit Transfer (DBT) Mission was created initially under the Planning
Commission but was transferred to the Cabinet Secretariat in 2015.
 11

➢ The Office of the Principal Scientific Adviser to the Government of India has been
placed administratively under the Cabinet Secretariat in August 2018.

❖ Organisation
➢ Politically headed by the Prime Minister.
➢ Administratively by the Cabinet Secretary.
➢ The cabinet secretariat is organised into three wings
✓ The Civil Wing

✓ The Military wing

✓ Intelligence wing

➢ The Civil wing is the primary one which provides Secretarial assistance to the
Cabinet and the Cabinet Committees.
❖ Functions:
➢ The business allocated to the Cabinet Secretariat under the Government of India
(Allocation of Business) Rules, 1961 includes
✓ Secretarial assistance to the Cabinet and Cabinet Committees;

✓ Rules of Business

➢ Allocation and disposal of Government Business

➢ Support to Cabinet Committees
➢ Promotion of Inter-Ministerial Coordination


 1

DAILY
CLASS NOTES
Public Administration

Lecture - 105
Cabinet Secretariat
 2

Cabinet Secretariat

Functions of Cabinet Secretariat:

 Allocation and disposal of Government Business

 The Cabinet Secretariat is responsible for the administration of the Government of

India (Transaction of Business) Rules, 1961 and the Government of India
(Allocation of Business) Rules, 1961.

 It works in facilitating smooth transactions of business in ministries/departments

of the Government by ensuring rules are followed.

 Support to Cabinet Committees

 Secretarial assistance to the cabinet and its committees.

 Convening the meetings of the Cabinet and its Committees on the orders of the
Prime Minister.

 Preparation and circulation of the agenda.

 Circulation of papers related to the cases on the agenda.

 Preparation of record of discussions.

 Circulation of the record of discussions after obtaining the approval of the Prime
Minister.

 Monitoring implementation of decisions taken by the Cabinet and its Committees.

 Promotion of Inter-Ministerial Coordination

 In the case of inter-ministerial cooperation, the ministries and departments often

seek the assistance of the Cabinet Secretariat.

 Committees of Secretaries (CoS) are very instrumental in this regard.

 Committees are constituted for discussing specific matters and proposals

emanating from various Secretaries to the Government Meetings are held under
the chairmanship of the Cabinet Secretary.

 These committees have been able to break bottlenecks or secure mutually

supporting inter-ministerial action.
 3

 The Cabinet Secretariat is seen as a useful mechanism by the Departments for

promoting inter-ministerial coordination.

 A monthly report is also sent by Ministries/ Departments to the Cabinet

Secretariat providing details on a wider range of issues such as important policy

matters, compliance with CoS decisions, sanction for prosecution pending for more

than 3 months, departure from Transaction of Business Rules, implementation of

e-Governance etc.

Significance of Cabinet Secretariat

 The role and function of the Cabinet in a parliamentary democracy is unparalleled.

 The cabinet is the supreme policy-making institution in India.

 The Cabinet Secretariat is the Secretariat to the cabinet and provides all the assistance

in fulfilling the duties, responsibilities and functions of the cabinet.

 The Secretariat assists in decision-making in Government by ensuring Inter-Ministerial

coordination.

 Achieves consensus through the instrumentality of the standing/ad-hoc Committees of

Secretaries.

 Management of major crisis situations in the country and coordinating activities of

various ministries in such a situation is also one of the functions of the Cabinet

Secretariat.
 4

Prime Minister’s Office

 In a Parliamentary democracy, the Prime Minister is the fulcrum of the power centre.

 He is the epicentre around whom all the things happen.

 He is the centre of power and responsibility.

 In fulfilling all the responsibilities the PM needs institutional assistance which is being
provided by the Prime Minister's Office (PMO).

 PMO receives its authority from the PM and he alone decides the functioning of the
PMO.

 The Prime Minister's Secretariat was created in 1947 taking over the functions
performed till then by the Secretary to the Governor-General.

 From June 1977, it is known as Prime Minister's Office and is headed by the Secretary
to the Prime Minister who is now designated as the Principal Secretary to the Prime
Minister.

 PMO enjoys the status of a Department under the Government of India Allocation of
Business Rules, 1961.

 PMO is administratively headed by the Principal Secretary (PS) who is assisted by

Additional Secretaries and Joint Secretaries.

 Below Joint Secretaries, there are Directors who are assigned specific duties.

 There are various Deputy Secretaries and Under-secretaries that work in PMO.

 The personnel are generally drawn from the civil services and also appointed for
varying periods.

 While most government servants serve at the pleasure of the President of India, the
Principal Secretary and others working in the PMO serve at the pleasure of the PM.
 5

 It is a staff agency (advisory body), mainly concerned with providing assistance to the
PM in fulfilling his responsibilities as overall in charge of the government.

 It initially had a low profile and was a non-constitutional and non-statutory body.

 I.e. neither established by the constitution nor by any law of the parliament.

 The jurisdiction of the PMO extends over all such subjects and activities that are not
specially allotted to any individual department.

 Allocation of Business Rules 1961, provides the roles and functions of the PMO

 To provide secretarial assistance to PM and act as a think tank.

 It deals with all references that under the Rules of Business come to the PM.

 Helps the PM in the discharge of his overall responsibilities as CEO and as head of NITI
Aayog.

 PM's relief fund and PM's National Defence Fund are managed by PMO, which are
based on voluntary contributions.

 To deal with the public relations side of PM, which is related to intellectual forums and
Civil Societies.

 Acts as an office to get feedback from the administration by considering public

grievances against the malfunctioning of the administrative system.

 To provide Prime Ministerial assistance in the examination of cases submitted to him

for orders under described rules, so it acts as a settlement house to finalize decisions
concerning administrative doubts.

 The functional span of PMO is very wide and comprehensive.

 The functions of the PMO can be categorized into four parts.

 The routine function of the PMO

 To review and monitor particular activities of ministries

 PMO and the policy formulation of the ministries

 Functions related to the poll promises (i.e. election promises).

 Routine Functions

 The filtering of a large number of cases submitted by various ministries and the
Cabinet Secretary for information, approval and sanction of the PM.
 6

 To review and monitor

 The Prime Minister is likely to use his office to review and monitor particular
activities of some ministries, keep a tab on developments on certain fronts and, at
times, depute his staff officers to undertake sensitive assignments.

 At present, this has become a matter of concern.

 Poll promises

 The PMO has to undertake some functions which cannot be clearly defined and
recognized.

 Such functions are basically related to the poll promises.

 The Prime Minister may entrust a special cell in his office to monitor, review and
assist in the implementation of each issue which was promised during the poll.

Changing Role of the PMO Over the Years

 The extra-constitutional device has attained power and grown in stature over the
years.

 The roles, powers and functions of the PMO heavily depend on the personality and
style of the incumbent PM.

 The political scenario of the country and challenges before the government decides the
role of the PMO.

 Jawaharlal Nehru:

 Nehru was a firm believer in parliamentary practices but wanted a strong PMO.
But this was resisted by the then Cabinet Ministers.

 It is the cabinet secretariat which became important under Nehru and the Prime
Minister's Secretariat was placed subordinate to the Cabinet Secretariat.

 Nehru's dependence on PMS was less.

 The Lal Bahadur Shastri period saw a steep rise in the role of PMS.

 Mr Shastri's limited knowledge of international, economic and scientific matters

saw the PMS becoming powerful.

 Mr Shastri who suffered a mild heart attack needed rest and therefore required
assistance in managing the government's affairs.
 7

 L.K. Jha was the Secretary to the PM and the personality of Jha was very dynamic
and forceful to the extent he demanded that he be called the Secretary to the PMS
and not the PPS (Principal Private Secretary).

 The then political condition in the country also helped in gaining power for the
PMS.

 Jha influenced the Economic policies and International Affairs related policies.

 The untimely death of Mr Shastri however nipped this new experiment.

 The strength of the PM's Secretariat increased from 116 in 1948-49 to 235 in
1965-66.

 Jha also worked with Indira Gandhi and even accompanied the PM during official
tours.

 The role of Prime Minister Secretariat reached its zenith during Mrs Gandhi's tenure.

 The staff strength was 242 in 1976-77.

 PM Indira Gandhi's arch-political rivals were from her own cabinet.

 This necessitated depending on professionals for frank and professional advice not
tampered with by parochial politics.

 LK Jha played a very crucial role in the decision-making of the Indira Gandhi
government.

 The PM Secretariat became the real decision-making centre and almost worked as
the government of India.

 Later P.N. Haskar was appointed as the Principal Secretary and the same tradition
continued.

 Haskar organised the work of the PMO and raised its calibre and potential for
assistance and advice.

 PMS started functioning as a think tank, policy planner, political strategist and
hub for coordinating the activities of the government.

 Haskar too was a confidant of the PM.

 Advised the PM on all political and party matters.

 8

 Haskar proved to be one of the most successful secretaries of the PMO.

 Dhar succeeded Haskar and the designation reverted to Secretary to the PM.
 PM Secretariat continued to grow in stature.
 During the Emergency the role played by the PMS tarnished the image of the
institution.
 Janata party regime of 1977-79, efforts were made to reduce its excessive
importance, the number of personnel was reduced from 229 to 203 and it was
designated as the PMO.
 During the tenure of Chaudhary Charan Singh both the PMO and the PM had a
low profile.
 During Indira 2.0, P. C. Alexander became the Principal Secretary to the PMO.
 The role of PMO again took centre stage.
 PMO assisted the PM in fulfilling her parliamentary responsibilities.
 P.C. Alexander was very much a part of all foreign visits and played a very
important role in foreign policy.
 PMO became more professional and tried to avoid the dangers of over-
centralisation.
 During Rajiv Gandhi's tenure the office of the P.M.O grew further in importance.
 The staff strength increased to 388.
 V.P. Singh who never had a good opinion about the PMO soon started liking the office
after he became the PM.
 During P.V. Narasimha Rao, the PMO provided all the political support required to the
PM and Mr. Rao depended heavily on the PMO under A.S. Verma during this politically
unstable period.
 The Prime Minister's Office played a crucial role in reshaping economic policies during
this phase.



 1

DAILY
CLASS NOTES
Public Administration

Lecture - 106
Prime Minister Office
 2

Prime Minister Office

 The Foreign Investment and Promotion Board was kept directly under the Principal
Secretary to the PM.

 The PMO was in charge of many ministries and departments.

 During the tenure of Deve Gowda and I.K. Gujral, the PMO was active but not as strong
as the governments were the result of the coalition.

 This however changed when Vajpayee became the PM.

 PMO under Brajesh Mishra became a powerful institution.

 The faith of the PM in Mr Mishra was absolute and it led to the creation of the post of
the National Security Advisor.

 The staff strength increased to 400.

 Vajpayee, like Rajiv Gandhi, relied on the advice of experts from outside the
government along with the officers in his PMO.

 Vajpayee's PMO saw considerable power conferred to its own officers who oversaw the
liberalisation of telecom policies and the National Highways.

 At its peak, the Economic, Foreign and Security framework came under the direct
influence of the officials advising Vajpayee directly.

 PMO under Sanjay Baru during the tenure of PM Dr. Manmohan Singh once again
reduced in importance because of the compulsions of Coalition Politics.

 The National Advisory Council decided on policy matters and this overshadowed the
working of the PMO.

 The presence of eminent staff like Pranab Mukherjee and A.K. Antony in the Cabinet
further undermined the office of the PMO.

 The P.S. to the PMO, T. K Nair did not have a strong demeanour, unlike his
predecessors.

 Nair depended extensively on Pulok Chatterjee who was a Joint Secretary and reported
directly to Sonia Gandhi.
 3

 This further corroded the Decision-making abilities of the PMO.

 This is a classic example of why we should not use System 4 in Public

Administration. Thus in some matters Domination and a top-down approach are
beneficial.

 Narendra Modi who became India's Prime Minister in 2014 brought in a style of
functioning very much similar to his stint as the Chief Minister of Gujarat.

 Modi's PMO is the most dominant PMO of recent times.

 He selected the officials based on their experience, expertise and performance.

 Modi's office brought Nripendra Misra, a former IAS officer from the UP cadre and the
celebrated and revered (respected) former IB Director and IPS officer Ajit Doval, as
his National Security Advisor.

 Modi unlike his predecessors has not vested all powers in a single individual.

 Thus he brought in a system of checks and balances, brought in division of work and
responsibility and also created alternate sources for advice.

 This clearly shows that PMO is a reflection of the work culture and personality of the
PM.

 The current staff strength stands at 397.

 The PMO has become a very strong body with all the major decisions being taken by
the office.

 The PMO has been known to override Ministries and tower over key decisions.

 During the Rafael deal, the Defence Ministry had protested against the parallel
negotiations being conducted by the PMO which was not part of the Indian Negotiating
Team.

PMO in Recent Years

 DoPT (Department of Personnel and Training), which comes directly under the PMO,
issued an order to all ministries and government departments to conduct quarterly
reviews of all officials.

 This is seen as a move to undermine the power clout of "Babus".

 Modi runs the most powerful, centralised PMO in decades.

 4

 His government has reshuffled the bureaucracy three times in the 18 months after
coming into power in 2014, fired the foreign and home secretaries, and shifted out a
second home secretary.

 Ministers can no longer pick and choose their bureaucrats.

 That task is done by the PMO.

 For the first time in recent years, officers from across central government services are
being inducted to posts that were earlier "exclusively reserved" for IAS officers.

 The 89 non-IAS officers out of the 269 joint secretary-level posts at the Centre are
believed to be the highest ever.

 Indian Revenue Service officer Aniruddha Kumar was appointed Joint Secretary,
Power; Indian Forest Service officer Amitabh Gautam was named Joint Secretary,
Agriculture; Darshana Momaya Dabral, Officer of Indian Posts and Telecommunication
Accounts and Finance Service, is now Joint Secretary and Financial Adviser, Ministry
of Human Resource Development.

 Close to 400 senior officers deemed incompetent or corrupt have been sacked or
superannuated in the last few years.

 The government armed with Rule 48 of pension Rules has the power to prematurely
retire senior officers.

 However, the fact that earlier PMOs did not use this rule effectively shows the present
PMO means business.

 On March 17, 2021, 3 IPS officers of the UP cadre were retired prematurely as they
were found to be "unsuitable to continue working as a public servant".

 Relevance of Classical Theory.

 In 2019, 50 IRS officers were compulsorily retired over corruption and sexual
harassment charges.

 In 2019, 284 officers from Central Secretariat Services were considered for
compulsory retirement.

 In 2017, 24 IAS officers were considered for premature retirement for “non-
performance”.
 5

 Between 2014 and 2019 sanction for prosecution was granted against 23 IAS and 4
IPS officers under the Prevention of Corruption Act, 1988.

 A Cambridge Study found that constant nudging by the Prime Minister helped keep
people in their homes during the COVID-19 pandemic.

 The PMO was at the forefront of the fight against coronavirus.

 The PMO spearheaded the creation of 'The Prime Minister's Citizen Assistance and
Relief in Emergency Situations Fund'.

 The PMO created the Covid-19 Economic Response Task Force to deal with the
economic challenges caused by the pandemic.

 The PMO also asked the business community and higher income groups to look after
the economic needs of those from lower income groups and urged them not to cut
their salary on the days they are unable to render services due to their inability to
come to the workplace.

 Officials of the Prime Minister's Office (PMO) were hands-on in the Silkyara tunnel
rescue mission - some working tirelessly at Ground Zero.

 Officials said that PMO's intervention was crucial for the mobilization of experts and
equipment from major PSUs, including RVNL, ONGC, SJVNL, THDC and DRDO as well
as the application of relevant technologies and devices such as drones, robots and
endoscopic cameras.

 PMO is currently reviewing the trade talks with the United Kingdom.

PYQ

Q- "Dominant centralized administration is correlated with decisive and authoritative

leadership provided by the Prime Minister's office." Explain with suitable examples since
independence (20 Marks, 2016).

 Domination of PMO

 Write about the functioning of the office from the tenure of Shastri to Modi in
chronological order.
 6

 Mary Parker Follett said Domination is not acceptable in conflict resolution but
the Domination exercised by the PMO helps in faster decision-making and
resolving inter-ministerial conflicts.

 System-2 of Likert.

 It also exhibits Theory Y.

 Makes Non-programmed decisions.

Q- "The status and functioning of the Cabinet Secretariat face a stiff challenge from the
Prime Minister's Office (PMO)." Argue both in favour and against the contention. (10
Marks, 2017)

 Introduction

 Write about PMO and Cabinet Secretariat.

 Body

 Cabinet Secretariat facing a challenge from the PMO

 E.g.- Intervention of PMO in Rafale Deal

 No the Cabinet Secretariat is not facing challenges from the PMO

 The Cabinet Secretariat's role is to ensure interministerial coordination,

whereas the PMO role is to decide in a non-routine and dynamic situation.

 Conclusion

 In the current scenario, where lots of dynamic changes are occurring, there is a
need for the centralised body to make non-programmed decisions, when it comes
to routine and programmed functions are best performed by the Cabinet
Secretariat.

Q- "Strong PMO is antithesis to the feature of collective responsibility of the Council of

Ministers''. Examine the issues in relation to the position of PMO via-a-vis Council of
Ministers in the light of this statement. (20 Marks, 2019)

 Introduction

 Write about PMO and the Council of Ministers.

 7

 Body

 During Nehru, PMO had less role.

 From L.B. Shastri to Rajiv Gandhi, the role of PMO increased tremendously and
reached its zenith during Indira Gandhi's tenure.

 During the coalition government, the role of the Council of Ministers increased
and that of the PMO reduced simultaneously.

Central Secretariat

 It is the totality of all the Ministries and Departments at the central level.

 Ministries and Departments are politically headed by the Ministers and

Administratively by the Secretaries.

 Article 77 talks about the Portfolio system and authorizes the President to make rules
for the more convenient business of the Union government.

 The Ministries/Departments enumerated in Allocations of Business Rules 1961 are

collectively known as the Central Secretariat.

 Evolution

 The Secretariat in India was referred to as the Office of Governor-General in

British India.

 At the end of the eighteenth century, the central government consisted of a

Governor-General, three Councillors, and the Secretariat of four departments.

 In 1919, the Government of India consisted of a Governor-General and seven

members and there were nine secretarial departments.

 Since then it kept on increasing in size and functions.

 Organisation Structure

 The central Secretariat is a collection of various ministries and departments.

 A ministry is responsible for the formulation of the policy of government within

its sphere of responsibility as well as for the execution and review of that policy.
 8

 A ministry, for the purposes of internal organisation, is divided into the following
sub-groups with an officer in charge of each of them.

 Department:

 Secretary/ Additional Secretary/ Special Secretary

 Wing: Joint/Additional Secretary

 Division: Deputy Secretary

 Branch: Under Secretary

 Section: Section Officer




 1

DAILY
CLASS NOTES
PUBLIC ADMINISTRATION

Lecture – 107
Central Secretariat
 2

Central Secretariat

Role of Central Secretariat:

❖ The Secretariat's role is of the Staff agency (involved in policy formulation).
❖ It is a “Think-tank” and “treasure house" of information.
❖ It carries out detailed, in-depth and comprehensive examinations and verifications of
an issue before the ministerial decision.
❖ The Secretariat assists the ministers in the formulation of governmental policies.
❖ Ministers finalize policies based on adequate data, precedents and other relevant
information provided by the Secretariat.
➢ For routine and programmed decisions, the central secretariat plays a major role.
❖ It enables the government to examine its present activities, emerging problems and
future policies.
❖ The Secretariat plays an important role in fulfilling the legislative responsibility of the
Ministers.
❖ It carries out detailed scrutiny of a problem bringing an overall comprehensive
viewpoint on it, getting approval, if required.
❖ The Secretariat also ensures that field offices execute, with efficiency and economy, the
policies and decisions of the Government.
❖ Assisting the minister in the discharge of his policymaking and parliamentary functions.
❖ Framing legislation, rules, and principles of procedure.
❖ Sectoral planning and program formulation.
❖ Budgeting and control of expenditure in respect of activities of the ministry's
department.
❖ Securing administrative and financial approval for the operational program and its
subsequent modifications.
❖ Supervision and control over the execution of policies and programs by the executive
departments or semi-autonomous field offices.
❖ Calculating steps to develop greater personnel and organizational competence within
the ministry/department and its executive agencies.
❖ Assisting in increasing coordination at the Central level.
 3

➢ Thus there is an overlap of function between the Cabinet Secretariat, the PMO and
the Central Secretariat.

ARC Comment on Central Secretariat

❖ "The Secretariat system of work has lent balance, consistency and continuity to the
administration and serves as a nucleus for the total machinery of a ministry.
❖ It has facilitated inter-ministry coordination and accountability to Parliament at the
ministerial level.
❖ As an institutionalised system, it is indispensable for the proper functioning of the
government."
❖ The secretariat is called a nodal agency, a think tank because it supplies vital
information with regard to policies and activities in the light of precedents.
❖ It provides a ready reference for detailed scrutiny of the issues after consulting the
ministries of law and finance.
❖ It serves as a nucleus for the total machinery of a ministry and facilitates inter -ministry
coordination.
❖ The functioning of the secretariat in India is based on two principles
➢ The Split System
➢ The Tenure System
❖ Split System
➢ There is a separation of policy-making and policy implementation in India.
➢ The Secretariat should focus only on policy making rather than indulging in policy
execution.
✓ Example of Differentiation of Riggs.
➢ L.S. Amary in his book. "Thoughts on the Constitution” pointed out the importance
of a separate policy-making institution.
✓ In the situation of dual functioning, the policy-making functions are likely to
suffer the most.
✓ Routine business is always more urgent and calls for less intellectual effort than
policy-making functions.
• The routine task will not stimulate the Growth Factors.
✓ He insisted that for effective planning a separate policy department should be
formed.
 4

➢ Advantages of Split System

✓ Free from day-to-day administration, the Secretariat prepare plans in

aggregate to the national interest, needs and requirements.

✓ It examines the policy objectively as the proposals coming from the executive

agencies are examined from the larger point of view of the Government as a

whole.

✓ The secretary in the secretariat is the secretary not to his minister but to the

Government as a whole.

• Thus it talks about System-4→ Participative Policy “Formulation”.

✓ It provides operational freedom to the executive agencies.

✓ It enables keeping the size and volume of the Secretariat manageable due to

the division of work.

✓ Examination of policy implementation can be done in an objective way.

❖ Tenure System

➢ Officers from States and from some Central services, for a specific period, work in
the Central secretariat. It is known as the tenure system.

➢ Under this system, every official so deputed has to work in the Secretariat for a

specified period and after completion, they return to their respective cadres.

➢ The Tenure System was introduced in India by Lord Curzon who believed that
“India may be governed from Shimla or Calcutta but is administered from the

plains”.

➢ The Llewellyn Smith Committee, Simon Commission, Wheeler Committee, Maxwell

Committee and Rowlands Committee all favoured the Tenure System.

➢ The First ARC also favoured the Tenure System.

✓ The tenure for different officials in the Secretariat.

• Secretary and Joint Secretary-05 years.

• Deputy Secretary-04 years.

• Under Secretary-03 years

 5

➢ Advantages of Tenure System

✓ It strengthens the federal polity as it enhances the coordination between the

Centre and the States.

✓ It facilitates the appointments of the officers in the central secretariat who

have first-hand experience in field administration.

✓ It provides the State officers to build a national perspective.

✓ It clubs the field knowledge and needs with the policy perspective which makes
the policy implementation more realistic.

✓ It provides equal opportunity to all the officials who want to work in the
Secretariat.

✓ It brings freshness among the officers by providing a different atmosphere to

work.

✓ It provides the required flexibility in the Personnel management of the

Secretariat by enabling it to remove incompetent and inefficient officers easily.

✓ It enables all the officers to enjoy the special benefits of Secretariat posting
thereby improving the morale and motivation of the officer.

• Examples of Growth Factors, Self-Esteem and Self-actualisation.

➢ Criticism

✓ As the functions of Ministries and Departments are becoming more and more
complex, the tenure system is not helping.

✓ Office-dominated administration.

✓ Over bureaucratisation of the Secretariat

✓ Specialisation is not met in the Secretariat as it is manned basically by the

generalist.

Organisations

❖ Organisation refers to a plan of action to ensure the fulfilment of purpose or purposes

which a group of individuals has set for realisation, and towards the attainment of
which they are collectively bending their energies.
 6

❖ We are living in the age of the Organisation Man - A man who accepts organisation
goals as the value premises of his decisions.

❖ For many persons, organisations represent a major part of their environment, tending
to make their behaviour 'organisation'.

❖ Line Agencies in modern government, are of three types:

➢ Departments
➢ Public Corporations and
➢ Independent Regulatory Commissions

Department

❖ A Department is the fundamental unit of administration on which rests the obligation

of carrying on governmental operations.

❖ Authority to organise the departments may be vested in the Constitution, the

Parliament or the Executive.

❖ In India, the formation and dissolution of ministries and departments is an executive

function.

❖ Departments are necessary for organisational performance and effectiveness.

❖ It helps in the process of determining the size, composition skills and capabilities of the
personnel required and for manpower planning and control.

❖ According to Willoughby, governmental operations may be organized in accordance

with two principles

➢ Independent or Uncorrelated System:

✓ It is characterised by the treatment of each service or agency as an independent

unit not related to other services, and the Line of Authority runs directly from
it to the Chief Executive or the Legislature.

➢ Departmental System:

✓ Related activities operating in the same general field are grouped together into
departments maintaining close relations with each other and here the Line of
Authority runs from the service to the department and from the department
to the Chief Executive.
 7

❖ It is now agreed that the Departmental System is far superior to any other system.

❖ Departments are necessary on account of the following reasons:

➢ Specialisation
➢ The feeling of autonomy
➢ Fixation of responsibility
➢ Appraisal of ministerial performance
➢ Administrative control
❖ Merits of Departmental Organisations
➢ It facilitates the integration of governmental activities and is, therefore, a very
simplified structure.
➢ It facilitates the formulation and implementation of the work programme.
➢ The Chief Executive has to deal with a lesser number of subordinates.
✓ Thus the Span of Control is good.
➢ The Chief Executive has better control over the administration.
✓ It helps in establishing a clear line of communication.
➢ Conflicts with regard to jurisdiction, overlapping of functions and duplication of
organisation, plant and activities can be avoided.
✓ However, the Rafael deal is an exception to this due to the involvement of the
PMO in the negotiation process.
➢ In the uncorrelated system, each agency will have to maintain its complete
organisation and installation, unlike a department.
➢ Grouping of similarly related services departmentally brings about economy and
efficiency in the performance of institutional activities.
❖ Demerits of Departmental Organisation
➢ It can complicate things and make coordination an issue.
➢ Thus there is a need for effective coordination between the Cabinet Secretariat and
the PMO.
➢ It demands time and attention from the head exclusively which may not be possible
at all times.
➢ It can cause delays in work. (Red Tapism)
❖ Departments therefore should be uni-functional even if it is difficult to achieve as it is
conducive to departmental unity.
 8

➢ I.e. Complete Diffraction as suggested by F.W. Riggs and it can be seen in the
functioning of the Enforcement Directorate, NIA, CRPF.

❖ 4Ps of Luther Gulick:

➢ Purpose: Based on Functional Division of Work.
✓ E.g.- Ministry of Railways, Education, Transport, etc.
➢ Process: There is a blurred line between process and purpose.
✓ It is concerned with skills of a specialised type.
✓ E.g.- Ministry of Law
➢ Person or Clientele: These Departments are mostly created to give justice to the
principle of social equity.
✓ E.g.- Department of Tribal Welfare
➢ Place: To handle the problems of a region that are peculiar to itself.
✓ E.g.- Department of Jammu Kashmir and Ladakh
❖ In practice, all 4 bases overlap each other.
❖ No single principle can be applied indiscreetly in creating organisations.
❖ The different bases of organisations are not exclusive rather they supplement each
other.
❖ Location of Authority in Department
➢ All directions flow from the head of the organisation.
➢ If it is vested in a single individual then it is called a Bureau System and if it is
vested in a plural body then it is a Board/Commission System.
✓ E.g.- CBI
➢ In India, both systems exist.
❖ Structure
➢ Political Head - Minister assisted by Minister of State, Deputy Ministers or
Parliament Secretaries (Non-Permanent).
 9

➢ Secretariat Organisation - Headed by Secretary (Permanent).

➢ Executive Organisation - Departments headed by the Director-General, Inspector
General, etc
✓ Officer Class
✓ Subordinate Class→ Clerks
➢ This system is seen in the Central Secretariat.
Board and Commission
❖ Governmental functions are operationalised by the departments manning it. However,
along with departments/ministries, certain other types of organisations also exist,
namely, boards and commissions.
❖ Board or Commission has become an integral part of administrative institutions.
❖ When administrative authority within a department is vested in a plural body, it is
called a 'Board' or 'Commission' system.
❖ A Board or Commission is generally defined as a group of people, elected or appointed,
to discharge public functions collectively.


 1

DAILY
CLASS NOTES
PUBLIC ADMINISTRATION

Lecture – 108
Organisation
 2

Organisation

Boards and Commission

❖ Governmental functions are operationalised by the departments manning it. However,

along with departments/ministries, certain other types of organisations also exist,

namely, boards and commissions.

❖ Board or Commission has become an integral part of administrative institutions.

❖ When administrative authority within a department is vested in a plural body, it is

called a 'Board' or 'Commission' system.

❖ A Board or Commission is generally defined as a group of people, elected or appointed,

to discharge public functions collectively.

❖ There would be Constitutional commissions, statutory commissions and commissions

set up by executive order.

➢ Constitutional Commissions: the provision related to the body is mentioned in the

constitution. E.g.- Article 280- Finance Commission.

➢ Statutory Commission: The body is created by the act of the legislature. E.g.-

National Human Rights Commission.

➢ Executive Commission: It is set up by the executive resolution. E.g.- NITI Aayog.

❖ The Commissions have some features of the departmental form of organisation and

some of the public corporation.

❖ Difference between Board and Commission

➢ A Board is a body of members who act collectively.

➢ A Commission is a body of members that acts in two ways.

✓ the members act collectively as members of a Board;

✓ every member also acts individually as the head of a distinct branch of an

organisation, for example, a Public Service Commission.

 3

➢ The term 'Commission' is generally used when the body is charged with important
regulatory duties relating to public utility enterprises.
➢ The Commission system provides the best advice and services at a low cost.
➢ They are free from political interference and promote active citizens' participation.

✓ E.g.- Election Commission of India

❖ According to Willoughby, Board/Commission types are useful:

➢ Organizations that perform quasi-judicial and quasi-legislative functions like the

Railway Board of the Government of India.
➢ Organizations which exercise large discretionary powers to perform their duties like
the Public Service Commission.
➢ Organizations which need representation from different groups to be able to
function objectively like the Arbitration Board of Industrial Dispute.
➢ Situations which are subject to a lot of political pressures and group rivalries.
➢ In such cases, various interest groups tend to sway the decisions of the government
authorities in their favour through various means.
➢ In such situations, the board/commission is in a better position to balance the
various pulls and pressures.

❖ Classification of Boards and Commissions

➢ Based on Nature

✓ Advisory boards/commissions like the small-scale industries boards, UGC and

Public Service Commissions.

✓ Boards/commissions performing policy-making functions such as the NITI

Aayog.

✓ Boards/commissions performing policy-making and executive functions, such

as the Railway Board and the Atomic Energy Commission.

➢ Based on Status

✓ Boards/commissions established by the Constitution

▪ Election Commission of India

▪ UPSC
 4

▪ Finance Commission

▪ National Commission for SC/ST and OBC

✓ Boards/Commissions established by some special statutes

▪ These are known as Statutory Boards or Commissions Established by the

Law

▪ Securities and Exchange Board of India

▪ University Grant Commission

▪ Central Vigilance Commission

▪ Atomic Energy Commission

✓ Boards/Commissions set up by resolutions of the Union Government

▪ All India Handloom Board

▪ Central Social Welfare Board

▪ The handicraft boards

▪ NITI Aayog

➢ Based on Location

✓ Boards/commissions performing the functions of the ministry and located in

the ministry.

▪ They perform all the functions of the ministries and some are involved in

executive functions.

▪ Examples Railway Board and Atomic Energy Commission

✓ Boards/commissions which work as heads of the departments but outside the

ministry.

▪ These boards function as important heads of departments under the

ministries. The examples are

• Central Board Of Direct Taxes,

• Central Board of Excise And Customs. (Central Board of Indirect Taxes

and Customs)
 5

▪ These boards give directions to the field offices under them and are also

responsible for their general performance.

✓ Boards/commissions in subordinate positions

▪ These are departmental boards.

▪ They are concerned with laying down syllabus and courses and conducting

examinations.

▪ Central Board for Secondary Education.

▪ State Educational Boards

Advantages of Board/Commission

❖ A plural executive system is more conducive to administrative integrity as it is less

likely to succumb to pressure.

❖ More views come which makes the decisions more practical and realistic.

❖ It is a combination of specialised knowledge and the representative character of

democratic government.

❖ Decisions are taken impartially.

❖ Along with their administrative work, they also perform quasi-legislative and quasi-

judicial work which are better performed by a plural body rather than a single

executive. For example, UPSC and the Election Commission.

❖ It helps to relieve the central/state governments of the responsibility of control over

the day-to-day functioning of a service organization.

❖ The collective wisdom of members reduces the possibility of collusion.

Finance Commission

❖ The Finance Commission is a constitutional body formed by the President of India to

give suggestions on centre-state financial relations. (Article 280).

❖ The 15th Finance Commission (Chairman: Mr. N. K. Singh) was required to submit two

reports.
 6

➢ The first report, consisting of recommendations for the financial year 2020-21,

was tabled in Parliament in February 2020.

➢ The final report with recommendations for the 2021-26 period was tabled in

Parliament on February 1, 2021.

❖ Key recommendations in the report for 2021-26 include:

➢ The criteria for distribution of central taxes among states for the 2021-26 period

is the same as that for 2020-21. However, the reference period for computing

income distance and tax efforts is different hence, the individual share of states

may still change.

➢ Income distance:

✓ Income distance is the distance of a state's income from the state with the

highest income.

✓ The income of a state has been computed as the average per capita GSDP

during the three-year period between 2016-17 and 2018-19.

✓ A state with lower per capita income will have a higher share to maintain

equity among states.

▪ The goals of the New Public Administration (NPA) also included Equity
 7

➢ Demographic performance:

✓ The Terms of Reference of the Commission required it to use the population

data of 2011 while making recommendations.

✓ Accordingly, the Commission used 2011 population data for its

recommendations.

✓ The demographic performance criterion has been used to reward efforts made

by states in controlling their population.

✓ States with a lower fertility ratio will be scored higher on this criterion.

➢ Forest and ecology:

✓ This criterion has been arrived at by calculating the share of the dense forest

of each state in the total dense forest of all the states.

➢ Tax and fiscal efforts:

✓ This criterion has been used to reward states with higher tax collection

efficiency. (Classical Thinkers)

✓ It is measured as the ratio of the average per capita own (state) tax revenue

and the average per capita state GDP during the three years between 2016-

17 and 2018-19.

➢ Over the 2021-26 period, the following grants will be provided from the centre's

resources

✓ Revenue deficit grants: 17 states will receive grants worth Rs 2.9 lakh crore to

eliminate the revenue deficit.

✓ Sector-specific grants of Rs 1.3 lakh crore will be given to states for eight

sectors:

▪ Health,

▪ School education,

▪ Higher education,
 8

▪ Implementation of agricultural reforms,

▪ Maintenance of PM Gram Sadak Yojana roads,

▪ Judiciary,

▪ Statistics, and

▪ Aspirational districts and blocks.

✓ A portion of these grants will be performance-linked.

✓ State-specific grants: The Commission recommended state-specific grants of

Rs 49,599 crore. These will be given in the areas of:

▪ Social needs,

▪ Administrative governance and infrastructure,

▪ Water and sanitation,

▪ Preservation of culture and historical monuments,

▪ High-cost physical infrastructure

▪ Tourism.

✓ The Commission recommended a high-level committee at the state level to

review and monitor the utilisation of state-specific and sector-specific grants.

▪ Example of System Theory.

✓ Grants to local bodies:

▪ The total grants to local bodies will be Rs 4.36 lakh crore (a portion of

grants to be performance-linked) including:

• Rs 2.4 lakh crore for rural local bodies,

• Rs 1.2 lakh crore for urban local bodies, and

• Rs 70,051 crore for health grants through local governments.

▪ The grants to local bodies will be made available to all three tiers of

Panchayat- village, block, and district.

▪ The health grants will be provided for:

 9

• Conversion of rural sub-centres and primary healthcare centres (PHCs)

to health and wellness centres (HWCs).

• Support for diagnostic infrastructure for primary healthcare activities,

and

• Support for urban HWCs, sub-centres, PHCs, and public health units at

the block level.

• Grants to local bodies (other than health grants) will be distributed

among states based on population and area, with 90% and 10%

weightage, respectively.

✓ The Commission has prescribed certain conditions for availing these grants

(except health grants).

❖ The entry-level criteria include:

➢ Publishing provisional and audited accounts in the public domain and

➢ Fixation of minimum floor rates for property taxes by states and improvement in

the collection of property taxes. (an additional requirement after 2021-22 for

urban bodies).

✓ This helped in achieving efficiency and economy.

✓ Centre pushing states to move from immaturity to maturity.

➢ No grants will be released to local bodies of a state after March 2024 if the state

does not constitute the State Finance Commission and act upon its

recommendations by then.

✓ Example of Domination exerted by the centre to the states.

➢ Disaster risk management:

✓ The Commission recommended retaining the existing cost-sharing patterns

between the centre and states for disaster management funds.

✓ The cost-sharing pattern between the Centre and states is:

 10

▪ 90:10 for north-eastern and Himalayan states, and

▪ 75:25 for all other states.

✓ State disaster management funds will have a corpus of Rs 1.6 lakh crore (the

centre's share is Rs 1.2 lakh crore).

➢ Fiscal deficit and debt levels:

✓ The Commission suggested that the centre bring down the fiscal deficit to 4%

of GDP by 2025-26.

✓ For states, it recommended the fiscal deficit limit (as % of GSDP) of:

▪ 4% in 2021-22,

▪ 3.5% in 2022-23, and

▪ 3% during 2023-26.

✓ If a state is unable to fully utilise the sanctioned borrowing limit as specified

above during the first four years (2021-25), it can avail the unutilised

borrowing amount (calculated in rupees) in subsequent years (within the 2021-

26 period).

✓ Extra annual borrowing worth 0.5% of GSDP will be allowed to states during

the first four years (2021-25) upon undertaking power sector reforms

including

▪ reduction in operational losses,

▪ reduction in revenue gap,

▪ reduction in payment of cash subsidy by adopting direct benefit transfer,

and

▪ reduction in tariff subsidy as a percentage of revenue.

✓ The Commission observed that the recommended path for fiscal deficit for the

centre and states will result in a reduction of total liabilities of

 11

▪ the centre from 62.9% of GDP in 2020-21 to 56.6% in 2025-26, and

▪ the states on aggregate from 33.1% of GDP in 2020-21 to 32.5% by

2025-26.

✓ It recommended forming a high-powered inter-governmental group to:

▪ Review the Fiscal Responsibility and Budget Management Act (FRBM),

▪ Recommend a new FRBM framework for the centre as well as states, and

oversee its implementation.


 1

DAILY
CLASS NOTES
Public Administration

Lecture - 109
Boards and Commission
 2

Boards and Commission

 Revenue mobilisation:

 Income and asset-based taxation should be strengthened.

 To reduce excessive dependence on income tax on salaried incomes, the coverage

of provisions related to tax deduction and collection at source (TDS/TCS) should
be expanded.

 Stamp duty and registration fees at the state level have large untapped potential.

 Computerised property records should be integrated with the registration of

transactions, and the market value of properties should be captured.

 Example of e-governance

 State governments should streamline the methodology of property valuation.

 GST

 The inverted duty structure between intermediate inputs and final outputs present
in GST needs to be resolved.

 Inverted duty structure: The rate of tax on inputs of a product is higher than
the rate of tax on the final products.

 Rate structure should be rationalised by merging the rates of 12% and 18%.

 States need to step up field efforts for expanding the GST base and for ensuring
compliance.

 It is seen as a solution for increasing revenue receipts of the state government.

 Financial management practices:

 A comprehensive framework for public financial management should be developed.

 An independent Fiscal Council should be established with powers to assess records

from the centre as well as states.

 The Council will only have an advisory role.

 3

 A time-bound plan for the phased adoption of standard-based accounting and

financial reporting for both centres and states should be prepared while the
eventual adoption of accrual-based accounting is being considered.
 The centre as well as states should not resort to off-budget financing or any other
non-transparent means of financing for any expenditure.
 A standardised framework for reporting contingent liabilities should be devised.
 Both centres and states should strive to improve the accuracy and consistency of
macroeconomic and fiscal forecasting.
 States should amend their fiscal responsibility legislation to ensure consistency with
the centre's legislation, in particular, with the definition of debt.
 States should have more avenues for short-term borrowings other than the ways
and means advances, and overdraft facility from the Reserve Bank of India.
 States may form an independent debt management cell to manage their borrowing
programmes efficiently.
 Other recommendations
 Health:
 States should increase spending on health to more than 8% of their budget by
2022.
 Primary healthcare expenditure should be two-thirds of the total health
expenditure by 2022.
 Centrally sponsored schemes (CSS) in health should be flexible enough to allow
states to adapt and innovate.
 The focus of CSS in health should be shifted from inputs to outcomes.
 All India Medical and Health Service should be established.
 Funding of defence and internal security:
 A dedicated non-lapsable fund called the Modernisation Fund for Defence and
Internal Security (MFDIS) will be constituted to primarily bridge the gap
between budgetary requirements and allocation for capital outlay in defence
and internal security.
 The fund will have an estimated corpus of Rs 2.4 lakh crore over the five years
(2021-26).
 4

 Of this, Rs 1.5 lakh crore will be transferred from the Consolidated Fund of
India.

 The rest of the amount will be generated from measures such as the
disinvestment of defence public sector enterprises, and monetisation of defence
lands.

 Centrally-sponsored schemes (CSS):

 A threshold should be fixed for annual allocation to CSS below which the
funding for a CSS should be stopped (to phase out CSS which outlived its utility
or has insignificant outlay).

 Third-party evaluation of all CSS should be completed within a stipulated

timeframe.

 Funding patterns should be fixed upfront in a transparent manner and be kept

stable.
5
 6

NITI Aayog

 NITI Aayog came into existence on January 1, 2015, through a resolution of the
Cabinet.

 The new body was chaired by the Prime Minister and includes the Chief Ministers and
Lt. Governors of States/UTs and other invitees. (Governing (Council)

 The main purpose of setting up NITI Aayog was to provide a nimble body that would
meet the governance and growth challenges in a new world.

 Unlike the Planning Commission, NITI Aayog does not have any power to allocate funds
to Union ministries or craft schemes for states.

 NITI Aayog therefore does not overshadow the Finance Commission, a constitutional
body.

 The Planning Commission was not adequately meeting the challenges because of its
top-down approach and centralized administration. (Domination, Win-Lose).

 The Planning Commission (PC) ended up as a dispenser of patronage through its power
to approve state development plans as well as distribute money for social sector
schemes.

 PC's relevance was coming down in a world where the market forces were determining
the allocation of resources and where the private sector was driving investment.

 I.e. After the New Public Management (NPM) and LPG reforms, the role of planning
decreased

 Five-year plans had laudable growth objectives but were often not achieved.

 The Planning Commission failed to achieve social equity.

 The biggest failure in 65 years of planning has been agriculture.

 Most plans failed to achieve the modest goals in agriculture.

 Most estimates were wide off the mark and resulted in Revised Estimates which were
different from the plan numbers.

 Planning also failed to address: Regional Inequalities, rising concentration of wealth and
parallel economy.
 7

 Planning was successful in becoming largely self-sufficient in food grains production,

setting up the basic industrial infrastructure (steel, cement, fertilizers), expanding the
telecommunication and transport (rail, road, ports) network, irrigation and power
infrastructure, space technology and laying the groundwork for primary, secondary
and higher education.
 There was an emphasis on the active involvement of the States in NITI Aayog and a
constant reference to cooperative federalism.
 Further, the focus shifted from Planning to Projects, most of which were to be
implemented in 'mission mode'.
 This was visible in the 'Jan Dhan' accounts which were opened across the country and
led to many citizens opening a bank account for the first time.
 This was combined with Aadhar and the mobile phone constituting the ‘JAM’ trinity
and has been successful in transferring benefits directly to the beneficiaries' accounts.
 ‘JAM’ trinity → Jan Dhan-Aadhar-Mobile
 This was extended further to include payment banks, United Payment Interface (UPI)
and seamless coverage across shops, establishments, merchants and many services:
popularly referred to as 'Digital India Stack.
 Another area where planning has been superseded and projects have been emphasized
has been in the area of large infrastructure projects and their regular monitoring:
mostly in the areas of railways, ports, highways and other socio-economic
infrastructure.
 All this has now been integrated into the PM Gatishakti platform, with projects being
monitored at the highest level.
Objectives of NITI Aayog
 To evolve a shared vision of national development priorities, sectors and strategies with
the active involvement of States.
 To foster cooperative federalism through structured support initiatives and mechanisms
with the States on a continuous basis, recognizing that strong states make a strong
nation.
 To develop mechanisms to formulate credible plans at the village level and aggregate
these progressively at higher levels of government.
 8

 To ensure, on areas that are specifically referred to it, that the interests of national
security are incorporated in economic strategy and policy.
 To pay special attention to the sections of our society that may be at risk of not
benefiting adequately from economic progress.
 To design strategic and long-term policy and programme frameworks and initiatives,
and monitor their progress and their efficacy. The lessons learned through monitoring
and feedback will be used for making innovative improvements, including necessary
mid-course corrections.
 To provide advice and encourage partnerships between key stakeholders and national
and international like-minded think tanks, as well as educational and policy research
institutions.
 To create a knowledge, innovation and entrepreneurial support system through a
collaborative community of national and international experts, practitioners and other
partners.
 To offer a platform for the resolution of inter-sectoral and inter-departmental issues
in order to accelerate the implementation of the development agenda.
 To maintain a state-of-the-art resource centre, be a repository of research on good
governance and best practices in sustainable and equitable development as well as help
their dissemination to stakeholders.
 To actively monitor and evaluate the implementation of programmes and initiatives,
including the identification of the needed resources so as to strengthen the probability
of success and scope of delivery.
 To focus on technology upgradation and capacity building for implementation of
programmes and initiatives.
 To undertake other activities as may be necessary in order to further the execution of
the national development agenda, and the objectives mentioned above.



 1

DAILY
CLASS NOTES
PUBLIC ADMINISTRATION

Lecture – 110
Organisations and PPP
 2

Organisations and PPP

Features of NITI Aayog

❖ NITI Aayog is developing itself as a state-of-the-art resource centre with the necessary
knowledge and skills that will enable it to act with speed, promote research and
innovation, provide strategic policy vision for the government, and deal with contingent
issues.

❖ It is supported by an attached office, Development Monitoring and Evaluation

Organisation (DMEO) flagship initiative, Atal Innovation Mission (AIM) and an
autonomous body, the National Institute of Labour Economics Research and
Development (NILERD).

❖ NITI Aayog's entire gamut of activities can be divided into four main heads:

➢ Policy and Programme Framework

➢ Cooperative Federalism
➢ Monitoring and Evaluation
➢ Think Tank, and Knowledge and Innovation Hub
❖ The functioning of NITI Aayog is similar to the POCCC principles of Henry Fayol, but
its focus on monitoring and evaluation differs it from the classical theories.

❖ The monitoring and evaluation part is related to the systems theory.

❖ The different verticals, cells, and attached and autonomous bodies of NITI provide the
requisite coordination and support framework needed to carry out its mandate.

Review of NITI Aayog

❖ It has contributed to policymaking at the central level.

❖ This has largely been due to the dynamic personality of its former CEO Amitabh Kant
who, by his sheer force of personality and erudition (i.e. great knowledge and skills) put
the stamp of NITI Aayog on public policy.

❖ Some of the areas where NITI Aayog has contributed is regarding the policy related to
electric vehicles and semiconductors.
 3

❖ It has handled issues like asset monetization which normally would be tackled by the
concerned departments.

❖ The mandate of the NITI Aayog is policy and programme framework, cooperative
federalism, monitoring and evaluation, and acting as a think tank and knowledge and
innovation hub.

❖ This mandate is quite wide and would often put NITI Aayog in conflict with the
concerned departments.

➢ However, the emergence of conflicts is largely dependent on the personality of the

CEO of the NITI Aayog who can resolve it through integration.
❖ However, once again, the personality of the CEO could determine the success of NITI
Aayog.

❖ 2021: The government is reviewing the performance of its think tank NITI Aayog to
ascertain whether the agency is meeting the objectives for which it was created to
replace the Planning Commission.

❖ The review is being undertaken at the behest of the Prime Minister's Office (PMO) as
there is a feeling that the body is not delivering as per stated objectives and may need
a reset in terms of its role and responsibilities so that it could play a more proactive
role on policy matters in the country.

❖ The review of its functioning is already done by a team of external experts under a
set-up called the NITI Evolutionary Committee.

❖ This committee is headed by Quality Council of India chairman Adil Zainulbhai, with
Bain Capital MD Amit Chandra, Avaana Capital founder Anjali Bansal, former telecom
secretary Aruna Sundararajan, founder of Global Alliance for Mass Entrepreneurship
Ravi Venkatesan, and the Ministry of Environment’s Secretary as its members.

❖ The panel has come out with a clearer mandate for NITI Aayog that includes barring
the agency from certain activities while adding a few additional tasks.

❖ It also wants Aayog to play a more proactive role in engaging with the states on various
matters.
 4

❖ For this, the suggestion is to augment its capabilities so that wider and more frequent
engagements could be organised.

❖ NITI Aayog has also been suggested to engage actively with external experts and build
a knowledge pool that comes in handy to various government agencies.

❖ The NITI Aayog has recruited a large number of young professionals as domain experts
and, currently, it has a manpower strength of over 700.

❖ These lateral entrants have come from the private sector or other areas and have
provided the relevant knowledge base to NITI Aayog to function as a think tank.

➢ This is an example of De-bureaucratisation.

❖ It has come to light that several private sector executives have joined NITI Aayog,
sacrificing their salary in order to contribute to the development of society and gain
expertise which would be of great help to them in the future.

➢ Thus this is an example of the Growth Factor of Herzberg, the Self-Actualisation

aspect of Maslow.
❖ NITI Aayog has been ranking the states on various parameters like sanitation, health
and education.

❖ This does lead to a competitive environment in which states want to outshine each
other. (Competitive Federalism).
❖ However, the states would gain more if NITI Aayog could mentor the low-performing
states on how to improve their performance.

❖ It is still a little early to pass a final judgment on the efficacy of NITI Aayog vis-à-vis
the Planning Commission. Still, one can say that the organisation has justified itself to
a large extent.

❖ However, there is a need for greater coordination with the states.

❖ Also, NITI Aayog should not depend merely on the competence of its CEOs but on an
institutional arrangement which would equip it with resources.

❖ These resources can be used to assist the laggard states in their development journey.
 5

❖ The Standing Committee on Finance as early as 2015 had strongly recommended that
the government should confer executive powers on NITI Aayog to enable it to perform
its functions in a more effective manner.

❖ Without the executive powers, neither central ministries nor states will feel compelled
to listen to the advice of a think tank and advisory body.

Future of NITI Aayog

❖ The government's think tank NITI Aayog will hold a “Chintan Shivir” to reimagine its
role to fulfil the “vision” of Amrit Kaal, a 25-year period between 2022 and 2047.

❖ The 'Chintan Shivir' to be held in May 2023, will focus broadly on five themes, which
are NITI for ‘Vikasit Bharať, 'Bank of Wisdom', 'Working with States', 'Strengthening
Networking', and 'In-house Capacity'.

❖ The Chief Executive Officer (CEO) and all four members of NITI Aayog have been tasked
with each of the five topics.

❖ Under the theme 'Vikasit Bharat', the focus will be on discussing the role of NITI in
helping India become a developed nation by 2047.

❖ The NITI Aayog will handhold each state to set up similar bodies, replacing their
planning boards for faster and inclusive economic growth, in tandem with the vision
of becoming a developed nation by 2047.

Independent Regulatory Commissions

❖ Those Commissions and Boards which enjoy the status of independence from the
executive and have the power to formulate their own policies are known as Independent
Regulatory Commissions.

❖ They are characteristically American devices to undertake public regulation of private

economic activities.

❖ The need for such regulation and control became apparent with the growing
industrialization of the country during the 19th century.

❖ This form of organisation is the result of the application of the disintegrated principle
in administrative organisation.
 6

❖ The Regulatory Commissions perform two sets of functions:

➢ They set up standards and rules to govern the behaviour of a particular industry.
✓ E.g.- Securities and Exchange Board of India (SEBI)

➢ They enforce these standards and rules and prosecute the defaulters.
❖ The Commissions are thus engaged in administrative legislation (or, rule-making) and
administrative adjudication.

❖ These bodies are marked by the following features:

➢ These Commissions are manned by experts and are relatively small.

➢ They are collegial, consisting of a group of men discussing and arriving at decisions
by majority vote.
➢ They are relatively independent of the Chief Executive.
Nature of Regulation

❖ Delicensing of industries, permissible private entry into the public sectors, liberalization
of taxes, and tax holidays to privately owned firms and corporates marked the
coexistence of public and private sectors in the Indian economy since the late eighties.

❖ In order to ensure a level playing field and to safeguard public interest, the policymakers
formalized the incorporation of three types of regulations:

➢ Economic Regulation
✓ These are regulations targeting economic or market failures; and rules that
proscribe and punish market-distorting behavior.
 7

✓ The firms may resort to anti-competitive practices, by charging a price more

than the assigned, product hoarding, and abuse of dominant or monopoly
power.

✓ Legislations have been enacted that empower authorities to prevent such

practices.

✓ Thus, regulation through a set of transparent, consistent, and non-

discriminatory rules can create a competitive and dynamic environment that
can prevent negative practices by market players.

▪ Here the commission acts as a “Doer” – ”Enabler” – “Steering”.

➢ Regulation in Public Interest

✓ Some of the major regulations pertain to ensuring affordable pricing, a

transparent public distribution system, free distribution of potable water, free
power supply to agriculture, free schooling, free health system, etc.

➢ Environmental Regulation

✓ The protection of the environment is imperative for society, as a clean and

healthy environment enables economic and social development.

✓ The initiatives taken up by the Ministry of Environment, Central and State

Pollution Control Boards, and National Green Tribunal, act as a deterrent to
the misuse of green environment and entails punitive actions.

Merits of Independent Regulatory Commission

❖ They are generally free from partial control or favouritism.

❖ They can resist outside influence better than an individual entrusted with the same
task.

❖ Accountability can be easily fixed on Independent Regulatory Commissions as they have

only "one job to do".

Criticism of the Independent Regulatory Commission

❖ They tend to be the "headless fourth branch" of the government.

❖ They end up becoming islands of autonomy that are not integrated with the larger
politico-administrative system.
 8

❖ Some of the commissions have quasi-judicial and quasi-legislative functions which

violated the principles of separation of powers between executive and legislative powers.

➢ E.g.- The recent SEBI– Adani Group– Hindenberg issue.

❖ Some of the Commissions have not been effective in thwarting malpractices.

❖ They tend to function in an ad-hoc manner.

❖ It has led to poor coordination among governmental agencies.


 1

DAILY
CLASS NOTES
Public Administration

Lecture - 111
Public Private Partnership (PPP)
 2

Public Private Partnership (PPP)

Public Private Partnership

 Public Private Partnership (PPP) means

 An arrangement between a Government or statutory entity or Government owned

entity on one side and a private sector entity on the other, for the provision of
public assets and/or public services,

 through investments being made and/or management being undertaken by the

private sector entity, for a specified period of time,

 well-defined allocation of risk between the private sector and the public entity

 the private entity is chosen on the basis of open competitive bidding,

 Private entity receives performance-linked payments that conform (or are

benchmarked) to specified and pre-determined performance standards,
measurable by the public entity or its representative.

 It is the mixture of the Differential piece wage system of Taylor, New Public
Management (economy, efficiency and effectiveness) and New Public Service
(To serve rather than steer).

 Types of Public Private Partnership (PPP)

 Public-private partnerships (PPPs) can take a wide range of forms varying in the
degree of purpose, involvement of the private entity, legal structure and risk
sharing.

 A PPP is generally memorialized in a contract or agreement to outline the

responsibilities of each party and clearly allocate risk. (Clear Communication).

 The broad contractual forms, as covered by the extant policy include

 DBFOT/BOT:

 DBFOT→ Designs–Builds–Finances–Owns–Transfer

 BOT→ Build–Operate–Transfer
 3

 The most common form of PPP used where the private sector operator Designs,
Builds, Finances, Owns and constructs the facility and operates it commercially
for the concession period, after which the facility is Transferred to the
authority.

 In this case legal ownership of the asset vests with the public sector once the
concession period ends.

 The most common form of a BOT project is a Toll Road project.

 Operations & Maintenance (Service contract):

 The Government bids out the right to deliver a specific service or gives part of
the undertaking to the private sector for operations and maintenance of the
assets.

 Such contracts are normally of a shorter duration than concession contracts.

 Lease, Develop, Operate and Maintain (a variation of BOT):

 Assets are leased out to the private sector under specific terms, to operate and
maintain the asset for the term of the concession period.

 The Ministry of Finance requires the Project sponsors to award PPP projects through
a transparent open competitive bidding process, for greater transparency and
consistency in the bid process and terms of contract, throughout the project life cycle
and market discovery of rates.

 Example of New Public Management.

 Unsolicited proposals and subsequent award of such proposals through the Bonus and
Swiss challenge route are not supported as this introduces various asymmetries into
the procurement process.

 These asymmetries include informational asymmetry and bidding asymmetry between

an Original Proponent (OP) and its competitors as the OP essentially gets an
opportunity to make the BAFO (Best and Final Offer) after one or more rounds of
negotiation- an opportunity that is denied to its competitors who are not authorized
to submit an equal number of negotiated response.

 This would also lead to a lack of robust bid submissions by other potential bidders.
 4

Government incentives
 The Government has facilitated the PPP sector by offering:
 India Infrastructure Project Development Fund (IIPDF):
 The Scheme supports the Central and State Governments and local bodies through
financial support for project development activities (feasibility reports, project
structuring etc.) for PPP projects.
 The IIPDF would assist ordinarily up to 75% of the project development expenses.
 On successful completion of the bidding process, the project development
expenditure would be recovered from the successful bidder.
 The procurement costs of PPPs, particularly costs of engaging transaction advisory
services, are significant and often burden the budget of the Sponsoring Authority.
 The Department of Economic Affairs (DEA) has identified the IIPDF as a mechanism
through which the Sponsoring Authority can source funding to cover a portion of
the PPP transaction costs, thereby reducing the impact of costs related to such
procurement on their budgets.
 From the Government of India's perspective, the IIPDF must increase the quality
and quantity of bankable projects that are processed through the Central or states
project pipeline.
 The IIPDF will be available to the Sponsoring Authorities for PPP projects for the
purpose of meeting the project development costs which may include the expenses
incurred by the Sponsoring Authority in respect of
 feasibility studies,
 environment impact studies,
 financial structuring,
 legal reviews and development of project documentation, including concession
agreements,
 commercial assessment studies (including traffic studies, demand assessment,
capacity to pay assessment),
 grading of projects etc.
 required for achieving Technical Close of such projects, on an individual or
turnkey basis, but would not include expenses incurred by the Sponsoring
Authority on its own staff.
 5

 IIFCL (India Infrastructure Finance Company Limited):

 There is an urgent need for providing long-term debt for financing infrastructure
projects that typically involve long gestation periods.

 Debt finance for such projects should be of a sufficient tenure which enables cost
recovery across the project life, as the Indian capital markets were found deficient
in long-term debt instruments; IIFC was set up to bridge this gap.

 Foreign Direct Investment (FDI):

 Upto 100% FDI in equity of SPVs (Special Purpose Vehicles) in the PPP sector is
allowed on the automatic route for most sectors.

 Special Purpose Vehicles are financial entities created for specific projects.

 Viability Gap Funding Scheme (VGF):

 Viability Gap Funding of up to 40% of the cost of the project can be accessed in
the form of a capital grant.

 The Viability Gap Funding Scheme of the Government of India for Financial
Support to Public-Private Partnerships in Infrastructure provides financial support
of up to 40% of the Total Project Cost in the form of a grant (one-time or deferred)
to infrastructure projects undertaken through public-private partnerships with a
view to making them commercially viable.

 Administered by the Ministry of Finance, budgetary provisions are made in the

Annual Plans on a year-to-year basis for the Scheme.

 The scheme aims at supporting infrastructure projects that are economically

justified but fall marginally short of financial viability.

 Support under this scheme is available only for infrastructure projects where
private sector sponsors are selected through a process of competitive bidding.

 The total Viability Gap Funding under this scheme will not exceed twenty percent
of the Total Project Cost; provided that the Government or statutory entity that
owns the project may, if it so decides, provide additional grants out of its budget,
up to a limit of a further twenty percent of the Total Project Cost.

 VGF under this Scheme is normally in the form of a capital grant at the stage of
project construction.
 6

Streamlining the PPP Projects

 The Cabinet Committee on Economic Affairs (CCEA) in its meeting on 27th October
2005 approved the procedure for approval of public-private partnership (PPP)
projects sponsored by Central Government Ministries/ Central Public Sector
Undertakings (CPUs)/ statutory authorities or other entities under their administrative
control.

 Pursuant to this decision, a Public Private Partnership Appraisal Committee (PPPAC)

was set up comprising of the following:

 Secretary, Department of Economic Affairs (in the Chair)

 Secretary, Planning Commission

 Secretary, Department of Expenditure;

 Secretary, Department of Legal Affairs; and

 Secretary of the Department sponsoring a project.

 The Committee would be serviced by the Department of Economic Affairs, which has
set up a special cell for servicing such proposals.

 Proposals for the PPPAC are submitted to the DEA, PPP cell

 The Department of Economic Affairs (DEA) has developed online PPP Toolkits covering
five infrastructure sectors namely,

 State highways,

 Water and sanitation (W&S),

 Ports,

 Solid waste management (SWM) and

 Urban transport (Bus Rapid Transport Systems).

 The toolkit is a web-based resource that has been designed to help improve decision-
making for infrastructure PPPs in India and to improve the quality of the PPPs that
are developed.

 This is an answer to Simons's Bounded Rationality. The administrative man can

become an Economic Man by the use of technology.
 7

 The Department of Economic Affairs (DEA) has also developed The "PPP Post-Award
Contract Management Toolkit", which is a web-based application that has been
designed to help improve the contract management and project execution of the
infrastructure sector-related PPP projects in India.
 It aims to do so by serving as an “efficient guide” to public sector entities involved in
the execution of these projects.
 The standard model is based on the Scientific Management of Taylor.
 Further, this activity has helped to convert the non-programmed decisions into
programmed decisions.
 The toolkit covers three infrastructure sectors namely, Highways, Ports and Schools.
National Monetisation Pipeline (NMP)
 Union Minister for Finance and Corporate Affairs, Smt. Nirmala Sitharaman launched
the asset monetisation pipeline of Central ministries and public sector entities.
 NITI Aayog has developed the pipeline, in consultation with infrastructure line
ministries, based on the mandate for 'Asset Monetisation' under Union Budget 2021-
22.
 NMP estimates an aggregate monetisation potential of Rs 6,0 lakh crores through core
assets of the Central Government, over a four-year period, from FY 2022 to FY 2025.
 Asset monetisation, based on the philosophy of Creation through Monetisation, is aimed
at tapping private sector investment for new infrastructure creation.
 This is necessary for creating employment opportunities, thereby enabling high
economic growth and seamlessly integrating the rural and semi-urban areas for overall
public welfare.
 8

 It will include

 Roads, Transport and Highways

 Railways

 Power

 Pipeline and Natural Gas

 Civil Aviation

 Shipping Ports and Waterways

 Telecommunications

 Food and Public Distribution

 Mining

 Coal

 Housing and Urban Affairs

 The framework for monetisation of core assets has three key imperatives:

 Monetization of 'Rights' not 'Ownership', Assets handed back to the government at

the end of transaction life.

 Brownfield de-risked assets, and stable revenue streams.

 Structured partnerships under defined contractual frameworks with strict KPIs

(Key Performance Indicators) and performance standards.

 This includes the selection of de-risked and brownfield assets with a stable revenue
generation profile with the overall transaction structured around revenue rights.




 1

DAILY
CLASS NOTES
Public Administration

Lecture - 112
PPP & State Government
and Administration
 2

PPP & State Government and Administration

National Monetisation Pipeline (Continued)

❖ The primary ownership of the assets under these structures, hence, continues to be

with the Government with the framework envisaging hand back of assets to the public

authority at the end of transaction life.

➢ For instance, the Airport Authority of India saved more than Rs. 500 crore by

leasing the airports under the PPP mode.

❖ The estimated value corresponds to ~14% of the proposed outlay for the Centre under

NIP (National Infrastructure Pipeline) (Rs 43 lakh crore).

❖ The government launched the National Infrastructure Pipeline (NIP) with a forward-

looking approach and with a projected infrastructure investment of around ₹111 lakh

crore during FY 2020-2025 to provide high-quality infrastructure across the country.

❖ The NIP currently has 8,964 projects with a total investment of more than 108 lakh

crore under different stages of implementation.

❖ It has been proposed to integrate NIP and Project Monitoring Group (PMG) portals.

❖ The top 5 sectors (by estimated

value) capture ~83% of the

aggregate pipeline value for

monetisation.

❖ These top 5 sectors include Roads

(27%) followed by Railways

(25%), Power (15%), Oil and Gas

pipelines (8%) and Telecom (6%).

State Government and Administration

❖ The very first Article of our Constitution says, “India, that is, Bharat, shall be a Union

of states."
 3

❖ The word "Union" has been used to mean "Federation" in the Constitution of the United

States (US) of America.

❖ In our Constitution, however, the Union is not a Federation of the type set up by the

US Constitution.

❖ The Indian Constitution has several features of a Federation like the dual government,

distribution of powers between the union and state governments, supremacy of the

Constitution and final authority of courts to interpret the Constitution.

❖ On the other hand, there are several unitary features like

➢ a unified judicial system;

➢ integrated machinery for election; accounts and audit;

➢ power of superintendence of union government over state government in

emergencies, and to some extent even in normal times;

➢ single citizenship, etc.

❖ Due to these features, our Constitution lays down a quasi-federal polity.

❖ Granville Austin has called our Federation a "Cooperative Federalism" due to the need

for close cooperation between the Union government and state governments.

❖ The Union and the state governments, function independently in their own spheres.

❖ There is an area of overlapping responsibility, and certain powers of superintendence

are vested in the Union government.

Powers of the State Government

❖ The Union government and state government derive their powers, directly from the

Constitution.

❖ The Constitution has adopted a three-fold distribution of legislative powers between

the Union and states (Article 246).

❖ Schedule VII of the Constitution enumerates the subjects into three lists.

❖ List I or the Union List consists of the items over which the Union has exclusive powers

of legislation.
 4

❖ Similarly, List II or the State List comprises items over which the state has exclusive

powers of legislation.

❖ List III known as the Concurrent List comprises subjects over which both the Union and

states have powers to legislate.

❖ The residual powers are vested in the Union.

➢ State List

✓ The State List contains 59/61 items (originally 66 items in Schedule VII) over

which states have exclusive jurisdiction.

✓ Some of the important ones are- Public Order, Police, Agriculture, Public

Health and Sanitation, Local Government, etc.

✓ These are subjects of maximum concern to the people, which can be better

dealt with at the state level.

✓ These subjects are generally under the exclusive jurisdiction of the states, but

under the following circumstances, the Parliament can legislate on these

matters.

▪ In the national interest, the Council of States by a resolution of 2/3rd of

its members present and voting may authorise the Parliament to legislate

on a state subject. Such authorisation may be for one year at a time but

can be renewed by a fresh resolution.

▪ Under a proclamation of emergency, the Parliament may legislate on a

state subject

▪ With the consent of two or more states, the Parliament may legislate on a

state subject with respect to the consenting states.

▪ Parliament has the power to legislate with reference to any subject

(including a state subject) for the purpose of implementing treaties or

international agreements and conventions.

 5

▪ When a proclamation is issued by the President on the failure of

Constitutional machinery in any state, s/he may declare that the powers

of the state legislature shall be exercised by or under the authority of

Parliament.

➢ Concurrent List

✓ The Concurrent List, which originally comprises 52 items (though the last item

is numbered 47) over which the Union and state legislatures have concurrent

jurisdiction.

✓ The important ones are- Criminal Law, Criminal Procedure, Marriage,

Education, Civil Procedure, Insurance, Economic and Social Planning etc.

✓ While the Union and states can legislate on any of the subjects in the Concurrent

List, predominance is given to the Union Legislature.

✓ It means that in case of repugnancy between the Union and a state law relating

to the same subject, the former prevails.

✓ The Concurrent List, which originally comprises 52 items (though the last item

is numbered 47) over which the Union and state legislatures have concurrent

jurisdiction.

✓ The important ones are- Criminal Law, Criminal Procedure, Marriage,

Education, Civil Procedure, Insurance, Economic and Social Planning etc.

✓ While the Union and states can legislate on any of the subjects in the Concurrent

List, predominance is given to the Union Legislature.

✓ It means that in case of repugnancy between the Union and a state law relating

to the same subject, the former prevails.

✓ Any dispute about the interpretation of the entries in the three lists is to be
decided by the Courts.

✓ The following principles have been followed in such interpretation:

 6

▪ In case of overlapping of a subject between the three lists, predominance is

to be given to the Union Legislature;

▪ Each entry is given the widest importance that its words are capable of,
without rendering another entry nugatory (no value).

▪ In order to determine whether a particular enactment falls under one

entry or another, its "pith (the essence of something) and substance (an
essential part of something)" are considered.

▪ If the pith and substance i.e., the true object of the legislation pertains to
a subject within the competence of the legislature that enacted it, it should
be held to be intra vires although it may incidentally encroach on the
matters not within the competence of the legislature.

Role of Governor

❖ Since 1858, when India was administered by the British Crown, provincial Governors
were agents of the Crown, functioning under the supervision of the Governor-General.

❖ Over the following decades, the Indian nationalist movement sought various reforms
from British rule, aiming for better governance.

❖ These efforts culminated in the Government of India Act, of 1935, which came into
force in 1937, bringing provincial autonomy.

❖ Post this, the Indian National Congress commanded a majority in six provinces.

❖ With the 1935 law, the Governor was now to act in accordance with the advice of
Ministers of a province's legislature but retained special responsibilities and
discretionary power.

❖ Upon Independence, when the Provisional Constitution of 1947 was adapted from the
1935 Act, the post of Governor was retained but the phrases 'in his discretion, 'acting
in his discretion, and 'exercising his individual judgement', were omitted.

❖ The post of the Governor was extensively debated in the Constituent Assembly, which

too decided to retain it while re-orienting its role from the British era.
 7

❖ Under the parliamentary and cabinet systems of governance adopted by India, the

Governor was envisaged to be the Constitutional Head of a State.

❖ Dr. B.R. Ambedkar, referring to the Governor's position as "ornamental", called his

powers "limited" and "nominal”. Our Constitution provides for the Parliamentary form

of government at the Union as well as the state levels.

❖ The Governor is the Constitutional head of the state and acts on the advice of the

Council of Ministers headed by the Chief Minister. (Article 163)

❖ She/he is appointed by the President for a term of five years and holds office during

her/his pleasure and is the Executive head of the State as per Article 154 and Article

155.

❖ S/he can be reappointed after her/his tenure as Governor of the same state or of

another state.

❖ According to the Constitution, the Governor has many executive, legislative, judicial

and emergency powers.

❖ The Governor appoints the Chief Minister and on her/his advice the Council of Ministers.

(Article 164)

❖ Article 167 empowers the Governor to ask the Chief Minister to furnish any

information regarding the "administration of the affairs of the State and proposals for

legislation".

❖ S/he makes many other appointments like those of Chairman and Members of the

State Public Service Commission, Advocate General, State Election Commissioner, etc.

❖ In fact, the entire executive work of the state is carried on in her/his name.

❖ The Governor is a part of the State Legislature.

❖ S/he has a right to address and send messages to and of summoning, proroguing the

State Legislature and dissolving the Lower House. (Article 174).

 8

❖ All the bills passed by the Legislature have to be assented to by her/him before becoming

law. (Article 200).

❖ S/he can withhold her/his assent to the Bill passed by the Legislature and send it back

for reconsideration.

➢ This is the most controversial aspect of the governor’s role.

❖ If it is again passed with or without modification, the Governor has to give her/his

assent.

❖ S/he may also reserve any Bill passed by the State Legislature for the assent of the

President.

❖ The Governor may also issue an Ordinance when the legislature is not in session.

❖ The Governor even has the power to grant pardon, reprieve, respite, and remission of

punishment or to suspend, remit or commute the sentence of any person convicted of

any offence against any law related to a matter to which the executive power of the

state extends.

❖ As far as the emergency powers of the Governor are concerned, whenever the Governor

is satisfied that a situation has arisen in her/his state whereby the administration of

the state cannot be carried on in accordance with the provisions of the Constitution,

s/he can report the fact to the President.

❖ On receipt of such a report, the President may assume to herself/himself the powers

of the state government and may reserve for the Parliament the powers of the State

Legislature (Article 356).

❖ Exercise of Discretion by the Governor

➢ It has already been pointed out that the Governor has to exercise her/his powers

on the advice of the Council of Ministers.

➢ S/he does not, therefore, have much discretion in the exercise of her/his powers as

long as a stable Ministry enjoying the confidence of the Assembly is in office.

 9

➢ It is this exercise of discretion that has made the Governor's office the most

controversial Constitutional office in the country.

➢ Major controversies have arisen in the following types of cases in the past.

✓ Appointment of Chief Minister: The Governor appoints the Chief Minister and

on her/his advice the Council of Ministers.

▪ When a party with an absolute majority elects a leader, the Governor has

no choice but to appoint her/him the Chief Minister and invite them to

form the government.

▪ Problems arise when no political party has an absolute majority in the

legislature.

▪ Here the discretion of the Governor comes into play.

✓ Dismissal of a Ministry

▪ A Chief Minister and her/his Ministers hold office at the pleasure of the

Governor, which is not subject to any scrutiny.

▪ However, the Governor has to exercise her/his discretion judiciously.

✓ Dissolution of the Assembly


 1

DAILY
CLASS NOTES
PUBLIC ADMINISTRATION

Lecture – 114
Governor
 2

Governor

Supreme Court Judgements

❖ The Supreme Court has clarified that the rejection of a Bill by a Governor does not

mean its death.

❖ The first proviso of Article 200 goes on to say that the Governor may send the withheld

Bill, if it is not a Money Bill, back to the House “as soon as possible” with a message

suggesting amendments or requesting the Assembly to re-consider the Bill or specific

provisions of it.

❖ The judgment holds that the first proviso does not offer the Governor a fourth

contingency.

❖ The court clarified that the Governor cannot choose between letting a Bill die after

rejecting it and sending it back to the House for re-legislation.

❖ The court had made it clear that the “final word” belongs to the legislature and not

the Governor.

❖ That is, once the House re-passes the returned Bill, with or without amendments, the

Governor has no choice but to grant consent.

❖ The Governor of Tamil Nadu had withheld 10 Bills that were re-passed by the

Legislature thereby violating Article 200.

❖ The Supreme Court said a governor cannot refer to the President the Bills that they

have previously withheld assent to, advising Tamil Nadu governor R.N. Ravi to resolve

the impasse with the state government over 10 Bills.

❖ Way Forward

➢ The Supreme Court has made it very clear, that once the bills are sent again for

the assent by the state legislature, the governor can neither sit on it nor it can
 3

send the bill to the president. The governor must abide by the provisions of the

constitution otherwise the administration of the State suffers.

Governor’s Role in Universities

❖ State public universities are established through laws passed by state legislatures.

❖ In most laws, the Governor has been designated as the Chancellor of these universities.

❖ The Chancellor functions as the head of public universities and appoints the Vice-

Chancellor of the university.

❖ Further, the Chancellor can declare invalid, any university proceeding which is not as

per existing laws.

❖ In some states (such as Bihar, Gujarat, and Jharkhand), the Chancellor has the power

to conduct inspections in the university.

➢ However in recent times, due to the spoil system in the appointment in universities,

the Governor has been seen actively questioning the state government.

❖ The Chancellor also presides over the convocation of the university and confirms

proposals for conferring honorary degrees.

❖ This is different in Telangana, where the Chancellor is appointed by the state

government.

❖ The Chancellor presides over the meetings of various university bodies (such as the

Court/Senate of the University).

❖ The Court/Senate decides on matters of general policy related to the development of

the university, such as:

➢ Establishing new university departments,

➢ Conferring and withdrawing degrees and titles, and

➢ Instituting fellowships.
 4

❖ The West Bengal University Laws (Amendment) Bill, 2022 designates the Chief Minister

of West Bengal as the Chancellor of the 31 public universities in the state.

❖ Further, the Chief Minister (instead of the Governor) will be the head of these

universities, and preside over the meetings of university bodies (such as the

Court/Senate).

➢ Political Executives if granted power to appoint the officials for University

Administration can result in partiality as the appointments would be to those who

propagate the party policies. It may also result in suppressing dissent in the

universities.

❖ In 1997, the Supreme Court held that the Governor was not bound by the aid and

advice of the Council of Ministers while discharging duties of a separate statutory office

(such as the Chancellor).

❖ The Sarkaria and Puunchi Commission also dealt with the role of the Governor in

educational institutions.

➢ Both Commissions concurred that while discharging statutory functions, the

Governor is not legally bound by the aid and advice of the Council of Ministers.

➢ However, it may be advantageous for the Governor to consult the concerned

Minister.

➢ The Sarkaria Commission recommended that state legislatures should avoid

conferring statutory powers on the Governor, which were not envisaged by the

Constitution.

➢ The Punchi Commission observed that the role of the Governor as the Chancellor

may expose the office to controversies or public criticism.

➢ Hence, the role of the Governor should be restricted to constitutional provisions

only.
 5

❖ The Statement of Objects and Reasons of the West Bengal University Laws

(Amendment) Bill, 2022 also mentions this recommendation given by the Punchi

Commission.

❖ Recently, some states have taken steps to reduce the oversight of the Governor in the

state public universities.

❖ In April 2022, the Tamil Nadu Legislative Assembly passed two Bills, to transfer the

power of appointing the Vice-Chancellor (in public universities) from the Governor to

the state government.

❖ As of June 8, 2022, these Bills have not received the Governor's assent.

❖ In 2021, Maharashtra amended the process to appoint the Vice Chancellor of state

public universities.

➢ Prior to the amendment, a Search Committee forwarded a panel of at least five

names to the Chancellor (who is the Governor).

➢ The Chancellor could then appoint one of the persons from the suggested panel as

Vice-Chancellor, or ask for a fresh panel of names to be recommended.

➢ The 2021 amendment mandated the Search Committee to first forward the panel

of names to the state government, which would recommend a panel of two names

(from the original panel) to the Chancellor.

➢ The Chancellor must appoint one of the two names from the panel as Vice-

Chancellor within thirty days.

➢ As per the amendment, the Chancellor has no option of asking for a fresh panel of

names to be recommended.

❖ Kerala Governor suspended vice-chancellor of the Kerala Veterinary and Animal

Sciences University in connection with the death of a student allegedly following a mob

trial and brutal ragging.

 6

Lieutenant Governor (LG)

❖ The Delhi government had approached the Supreme Court amidst a scenario in which

civil service officers were directly pushing policy files to the Lieutenant Governor,

considered an extension of the Centre, rather than consulting elected Ministers of the

Delhi government.

❖ The Supreme Court said a principle of "triple-chain of

collective responsibility" existed in the governance of the

capital.

❖ This three-cornered command included civil service officers

being accountable to Ministers, who are in turn accountable

to the Parliament/Legislature, which is ultimately answerable to the electorate.

❖ The Supreme Court ruled that the Delhi government had powers to make laws and

wield control over bureaucrats deputed to the departments while declaring that civil

service officers are "politically neutral professionals" who serve the people and not

political parties.

❖ A constitutionally entrenched and democratically elected government needs to have

control over its administration.

❖ The administration comprises several public officers, who are posted in the services of

a particular government, irrespective of whether or not that government was involved

in their recruitment.

❖ The Supreme Court in effect, debunked the Centre's argument that it retained

“administrative control” over officers deputed to the Delhi government.

❖ If a democratically elected government is not able to hold to account the officers posted

in its service, then its responsibility towards the legislature as well as the public is

diluted.
 7

❖ The Court noted that the efficacy of the State and the system of responsible government

to a large part depend upon professionals, who embody the institution of a competent

and independent civil service.

❖ The policies of the government are implemented not by the people, Parliament, the

Cabinet, or even individual Ministers, but by civil service officers.

❖ The effectiveness of the services is to a large extent dependent upon the relationship

between the Ministers and civil service officers.

❖ The apex court reiterated that the National Capital Territory of Delhi (NCTD) would

not have the power to legislate on public order, police and land in the national capital.

❖ The Court held that the Lieutenant Governor was, according to Article 239AA, bound

by the aid and advice of the Council of Ministers of NCTD in relation to matters within

the legislative scope of NCTD, which included all 'services' coming under Entry 41 of

the State List of the Seventh Schedule of the Constitution except those related to public

order, police and land.

❖ The Union government brought an ordinance designating the Lieutenant Governor (L-

G) as the administrator of Delhi who will have the final say on the postings and transfer

of all bureaucrats serving the Delhi government.

❖ The ordinance, promulgated by President Droupadi Murmu, seeks to amend the

Government of National Capital Territory (NCT) of Delhi Act, 1991.

❖ The ordinance seeks to establish for the first time the National Capital Civil Service

Authority (NCCSA) which will be headed by the Chief Minister of Delhi, with the Chief

Secretary and Principal Home Secretary of Delhi being the other two members.

❖ All matters required to be decided by the Authority shall be decided by a majority of

votes of the members present and voting.

 8

❖ The authority will decide the transfer, posting and vigilance matters of all Group A

officers and DANICS officers posted in Delhi through majority votes.

❖ The ordinance stated that the L-G will pass orders to give effect to the

recommendations passed by the NCCSA but can ask for the relevant material with

regard to officers belonging to All India Services and DANICS serving the Delhi

government.

❖ In case the Lieutenant Governor differs with the recommendation made, whether based

upon the material so-called for or otherwise, the Lieutenant Governor may, for reasons

to be recorded in writing, return the recommendation to the Authority for

reconsideration by the Authority.

❖ However, the final decision will lie with the Lieutenant Governor of Delhi, the ordinance

said.

❖ The ordinance stated that the Supreme Court passed the verdict "in the absence of any

specific parliamentary legislation dealing with the subject of services."

❖ It added that “any decision taken or an event in the capital of

the nation not only affects the residents of the national capital

but also the rest of the country and at the same time has the

potential of putting the national reputation, image, credibility

and prestige at stake in the international global spectrum."

❖ It said the national capital belongs to the entire nation and it is in the larger national

interest that the people of the entire country have some role in the administration of

the national capital through the democratically elected Central government.


 1

DAILY
CLASS NOTES
Public Administration

Lecture - 115
State Legislative
Assembly
 2

State Legislative Assembly

Sittings
 The Constitution provides for a Legislature in every State and the Union Territories of
Delhi and Puducherry.
 Legislatures have three primary responsibilities: discussing and passing Bills, holding
government accountable, and scrutinizing government finances.
 State legislatures pass Bills on subjects in the State and Concurrent Lists, such as land,
public health, water, agriculture, and police.
 They also oversee about 60% of the total government expenditure.
 While Parliament usually meets for three sessions a year, the number of sessions of
State Legislatures varies across states.
 In 2021, the Goa Assembly had four sessions, while Bihar had three and Andhra
Pradesh had two.
 Six states provide for a minimum number of sessions in their Rules of Procedure.
 This necessitates why we need principles of classical theory in the State Legislative
Assembly.
 This also shows that if there is no programmed decision, then it may lead to
indecisiveness.
 Uttar Pradesh, Himachal Pradesh, Odisha and Manipur have fixed the number of
sessions in each calendar year at three, and Manipur and Odisha provide that the
legislature must have at least three sessions.
 In 2021, on average, state legislatures sat for only 21 days.
 Between 2016 and 2021, 23 states sat for an average of 25 days.
 Most legislatures sit for around five hours a day.
 Fewer sittings imply less time for the legislatures to function effectively.
 This reflects in important business often not being taken up for discussion or matters
not being discussed in depth.
 For example, 16 Bills were introduced and passed on the last working day of the 15th
Punjab Legislative Assembly (2017-2021).
 3

 In the Uttarakhand Legislative Assembly's Winter session of 2022, the session duration
was cut short from five to two days.

 Within these two days, 13 Bills were introduced and passed.

 The legislative agenda allocated only five minutes for the discussion and passing of most
Bills.

 The power to convene a session of state legislatures lies with the Governor, who acts
on the aid and advice of the council of ministers.

 This effectively puts the power to convene legislatures in the hands of the government.

 Any session can also be cut short by the government as it has a majority of the
membership of the Assembly.

 Because in the constitution, the number of sessions and number of days per session
for the legislative assembly is undefined. This results in arbitrary decision-making
by the legislative assemblies which eventually leads to the Governor using
discretionary powers.

 While the business of the House is decided by its Business Advisory Committee (BAC),
the government, which has the most votes in the BAC, has veto power.

 These features effectively give control of the session timing and business to the
government, which goes against the idea of legislatures holding the executive
accountable for its actions.

 The only constraint is the requirement in the Constitution to have at least one sitting
every six months.
 One way to address this could be by allowing legislatures to meet if a minimum number
of members demand a session to discuss urgent matters.

 Another way is to have a pre-decided calendar for the year.

 There can also be methods to provide a greater say to the opposition.

 For example, in the UK, the Opposition can set the agenda for 20 sitting days every
year.

 In France, the National Assembly is in session for the whole year and sits for around
130 days a year on average.

 This international perspective is an example of Comparative Public Administration.

 4

 The National Commission to Review the Working of the Constitution (NCRWC)

recommended that State Assemblies with less than 70 members meet for at least 50
days a year and larger Assemblies for at least 90 days.

 Seven state legislatures have stipulated a minimum number of sitting days through
their Rules of Procedure.

 This includes Himachal Pradesh (35 days), Punjab (40), Manipur (50), Rajasthan (60),
and Uttar Pradesh (90).

 However, none of these states met these targets in 2021.

 In some states, such as Karnataka, the number of sittings of the Assembly has been
declining over the years.

 Incidentally, Karnataka enacted a law in 2005 to sit at least 60 days a year but has
never managed to do that.

 Legislators exhibiting Theory X with respect to the conducting of the session.

 Legislators have low motivation and focus on growth needs.

 The general attitude of the legislature is going for “muddling through”.

Passing Bills

 Discussing and passing Bills is a key function of legislatures.

 These Bills lay down the law of the land and can affect a large number of people.

 Therefore, it is important that the legislatures carefully scrutinize the implications of

the proposed law for various segments of society, as well as its legal and financial
consequences.

 The Rules of Procedure of all assemblies provide the process to be followed in passing a
Bill.
 5

 Most include a stipulated minimum duration for each step in the process.

 However, the House can do away with these timelines.

 With assemblies meeting for short sessions, and the legislative agenda being set by the
government, in most assemblies, Bills are introduced, considered, and passed quickly,
often, within the same day.

 For example, in the 14th Gujarat Assembly (2018-2022), 91 out of 92 Bills

introduced (excluding Appropriation Bills) were passed on the same day.

Role of Committees
 Legislatures are required to deal with diverse and complex issues within a limited period
of time.

 Delegating work to committees, including a detailed examination of Bills, allows smaller

groups of legislators to examine issues in greater detail.

 In committees, members can discuss each provision of a Bill in detail and understand
the potential implications of a Bill.

 They can also seek the opinion of outside experts, affected stakeholders, and the public.

 Their findings are presented to the House as reports, which may carry important
recommendations.

 However, in state legislatures, it is not mandatory to send all Bills to committees.

 In 2021, only around 40 out of more than 500 Bills passed by state legislatures
(excluding Appropriation Bills) were referred to committees.

 One exception is the Kerala Legislative Assembly, which has the convention of sending
most Bills to subject committees.

 However, even there, these committees are headed by the Minister who has piloted the
Bill, which could weaken the purpose of independent examination of legislation.
 6

 In Andhra Pradesh and Chhattisgarh, the Minister piloting a Bill is a member of the
Select committee examining it.

 Proper scrutiny of Bills may be ensured by sending every Bill to a committee and
allowing the discussion of its reports on the floor of the House.

 This practice is seen in other countries.

 In the UK, every Bill (except a Money Bill) is automatically sent to a committee, and
a Bill cannot be passed without the committee report on it being discussed in the House
of Commons.

 Even if a Bill is 'fast-tracked' through the British Parliament, it still has to go through
committees.

 In Denmark, a Bill may be referred to committees more than once, after the first and
second readings.

Subordinate Legislations

 Once a Bill becomes an Act, the government prepares rules and regulations to
implement its provisions.

 These are called subordinate or delegated legislation.

 They need to be examined to ensure that the government does not assume excessive
powers and go beyond the mandate set in the law.

 Rules of Procedure of state assemblies allow the Speaker to allot time to discuss
delegated legislation.

 Members can also move amendments and vote on them.

 However, delegated legislation is rarely discussed in Parliament or state legislatures.

 A 2011 report of the Lok Sabha Committee on Subordinate Legislation noted delays
in every step of the rule-making process, from framing of rules to printing them in
the official Gazette, to laying them in Parliament.

 This deprives the House of the power to adequately scrutinise rules and amend them.

 While almost all states have constituted such Committees on Delegated Legislation,
little information is available about their functioning.
 7

Financial Accountability

 Any money spent by the government out of the Consolidated Fund of the state must
be approved by the state legislature.

 As people's representatives, MLAs are responsible for ensuring that taxpayers' money
is spent efficiently.

 Every year, state legislatures discuss and pass the state budget.

 Typically, the budget session is longer than other sessions across all states.

 In 2021, on average, 61% of the sittings were held during the budget session.

 As is the case with Parliament, the annual budget of states is also discussed in two
parts – the first is a general discussion on the budget, and the second is to discuss
departmental/ministry-wise allocations (also known as Demands for Grants, or DFGs).

 Rules of Procedure of state legislatures provide minimum durations of time between

the budget presentation, the general discussion, and detailed discussion on DFGs.

 This gives members and committees sufficient time to study the budget.

 However, state legislatures do not always follow these guidelines.

 For example, the Goa Rules of Procedure provide that the general discussion must take
place at least two days after the budget presentation, and must last for at least three
days.

 Voting on DFGs must take place over at least 15 days.

 However, in 2021, Goa's budget session lasted only for four days.

 While budget sessions tend to be longer, they are still not adequate to discuss all the
DFGs in detail.

 This means that not all demands for grants are individually discussed and voted on in
the House.
 8

 Parliament faces a similar issue, but the lack of scrutiny has been partly addressed by
department-related standing committees.

 These committees examine the budget of each Ministry in detail and the reports are
tabled in the House (typically before the budget is passed, but delays have also been
seen).

 Since most states do not have such committees, a majority of the budget is passed
without any discussion.

 Reports of the Comptroller and Auditor General on state finances are also rarely
discussed in the House.

 State legislatures could emulate Parliament in this case, and ensure that all demands
are discussed in detail by subject committees before they are approved.

Legislative Accountability

 Legislators hold governments accountable using questions, which are typically taken up
in the first hour of every sitting.

 Starred questions are answered orally by Ministers, and members may ask
supplementary questions.

 This allows legislators to probe deeper into matters by further questioning the minister's
responses.

 Unstarred questions receive written replies.

 9

 In most states, question hour is televised, and citizens can see a Minister's responses to
questions.

 In several instances, disruptions in an Assembly have also led to question hours being
cut short.

 Currently, only 30% of starred questions are orally answered in Parliament.

 In state legislatures also, a few starred questions are answered on the floor of the
House.

 A resolution was passed at the 82nd All India Conference of Presiding Officers (2021)
to build consensus between all parties to prevent disruption of question hour.

 In Parliament and state assemblies, the Prime Minister or the respective Chief Ministers
are not asked questions.

 The Jharkhand Assembly's rules provided for questions to be posed directly to the Chief
Minister.

 However, this provision was removed in March 2022 following a recommendation of

the Jharkhand Assembly Rules Committee.

 In the House of Commons in the UK, the Prime Minister answers questions for 30
minutes every Wednesday.

 Unlike other questions which are sent to Ministries beforehand, these questions need
not be previously notified.




 1

DAILY
CLASS NOTES
Public Administration

Lecture - 116
State Legislative
Assembly (Part - 02)
 2

State Legislative Assembly (Part - 02)

Legislature Secretariat
 Legislature Secretariats provide information and research -support to legislators

 However, these offices are resource-constrained (bounded rationality) and cannot

provide adequate support to all legislators.

 In its report, the NCRWC listed a few techniques which could help legislators gather
sufficient information, such as briefing sessions on topical issues by experts background
notes, and fact sheets.

 Building institutional research support for legislators could also help further strengthen
legislative work.

 I.e. having an exclusive body to help the legislators.

 The NCRWC had also recommended capacity building and upgradation of the
professional competence of secretariats.

 The Government is accountable to the people through the legislature.

 The government is answerable to MLAs, and they, in turn, are accountable to their
constituents.

 Citizens can hold their representatives accountable only if they are aware of how their
legislators are functioning.

 Legislature secretariats are responsible for collecting, collating, and disseminating

information about the functioning of the legislatures.

 This information is provided through documents such as bulletins and session resumes.

 However, documents are often published months after the concerned session has ended.
 3

 Currently, the Rules of Procedure of states do not provide a time period within which
details of a session must be published.
 Absence of Transparency in State Administration.
 Most states do not publish complete information about the functioning of legislature
committees, including details of their sittings and copies of their reports.
 State legislatures do not publish information uniformly.
 While some states provide session-wise compilations of House proceedings, others only
publish daily summaries.
 Some states, like Rajasthan, have created online portals that allow advanced searches
through debates.
 However, little information is available on the legislatures of northeastern states and
Puducherry.
 The diversity of languages also creates barriers to accessing information.
 The Constitution allows state legislatures to conduct business in languages determined
by the state, Hindi, or English.
 Some states have chosen to publish documents only in regional languages.
 Since the 1990s, legislature secretariats across India have discussed reforms like live
telecast of proceedings, digitising legislatures, and e-connectivity between Parliament
and state legislatures.
 Few states telecast full proceedings of the legislature on TV.
 The common aspect of almost all legislative assemblies is maintaining “secrecy”.
Further, the legislators are following “muddling through” principles and manage
to remain in power for 5 years.
 Around 15 states live stream proceedings on different websites.
 More recently, the National eVidhan Application (NeVA) was launched, which aims to
host all information relating to Parliament and state legislatures.
 At the 82nd All India Presiding Officers Conference, a resolution was adopted to make
the proceedings of Parliament and all state legislatures public through a single platform.
 While most states have either a website or publish some information on NeVA, some
northeastern states do not do either.

 Lacking in political will; Struck at Hygiene Needs.

 4

State Finance Commission

 States are not appointing finance commissions (SFC).

 Both the central government appointed finance commissions and the state government
appointed ones are constitutional provisions and must be constituted every five years.

 The former is under Article 280 and the latter under Article 243(I).

 The former is set up regularly and the latter with long gaps.

 A recent National Institute of Public Finance and Policy (NIPFP) paper points out that
"state governments are constrained (from implementing) these recommendations on
the grounds of poor quality of SFC reports".

 NIPFP found that as per the constitutional provisions, the setting up of the fifth SFC
became due in 2014-15 in all the states.

 But even as late as 2019, only 13 states had constituted their fifth SFC.

 Since many of these hadn't yet submitted their reports, not many states were in a
position to set up their sixth SFCs which became due in 2019-20.

 Five states had constituted their fourth SFCs and there were several states that were
still in their third and second SFCs.

 Mizoram which was exempted from constituting SFC as per the 73rd and 74th
Amendment Act constituted its first SFC in September 2011.

 Telangana, the newest state, was formed out of Andhra Pradesh in June 2014.

 It constituted its first SFC in December 2017.

 Thus, there is a considerable divergence between the constitutional provisions regarding

the setting up of SFCs and their working on the ground.

 The federal one (Union Finance Commission) decides on the allocation of tax and grants
in aid proceeds between the central government and the states, as well as those among
the states.

 The state-level ones recommend the distribution between the state and local bodies of
the net proceeds of taxes leviable by the state and inter-se allocation between different
panchayats and urban bodies, plus the assignment of certain taxes and grants-in-aid.
 5

 The CFC makes allocations for the local governments from the central taxes, whereas
the SFC decides on the division from the state-level levies.

 As of now, every state should have constituted their sixth finance commission, but a
scorecard from the 15th Finance Commission notes only nine have set those up and of
those only two are in operation.

 Given the financial size of the municipal corporations, even panchayats and the impact
they have on the lives of citizens compared to the national finance commissions, this is
a huge gap in public finance.

 It would not be correct to assume that as the taxation powers have weighed heavily
towards the Centre, even more so after the GST, the role of the SFCs has come down
accordingly.

 There is little public scrutiny of the states in these respects, and the delays are
overlooked.

 The quality of the reports these SFCs submit is often below par.

 This is often because the chairman and members of these commissions are almost never
drawn from experts says the NIPFP paper.

 The SFCs require specialists but the generalist bureaucrats are appointed.

 The posts are always filled with former bureaucrats with rarely any knowledge of public
finance.

 In a break from the past, public finance experts were appointed to chair the central
finance commissions – a prominent example being eminent economist and former
finance secretary Dr Vijay Kelkar getting appointed as chairman of the thirteenth
finance commission.

 The third problem is the time given to the SFCs by states to submit their reports.

 Since the appointment is under duress, often a prod by the Comptroller and Auditor
General, the time frame available to them to work out the details is a bare minimum.

 There are attendant problems of lack of support staff and office space.

 The principal role of the SFCs is to create accountability at the third tier of governance
(Panchayats and Municipalities).
 6

 Earlier the municipal corporations and panchayats were starved of funds.

 The ones in the metros and the next level have massive finances.

 The poorly governed bodies offer shoddy services to their citizens.

 For the average Indian, it doesn't matter how income, corporation taxes or GST is
allocated between the Centre and the states.

 It is the provision of municipal services that matters. Justifiably so.

 The SFCs, if they could have devised clear rewards and punishment for these
governments, they could have set off a massive visible change in a people-centric
governance.

 The states also lose out on a critical handle of power.

 Chief ministers are often leery of handing out power to the elected municipal councillors
and panchayat pradhans, assuming them as threats to their leadership.

 A well-functioning SFC could have strengthened the hands of the state leadership
offering a clear measuring rod to evaluate performance at the third tier of governance.

 The regular appointment to SFCs and their reports would have kept the balance of
power going on.

State Secretariat

 The functioning of the government is made effective with the help of task-oriented
Ministries.

 No Ministry can run smoothly without the support of a Secretariat at the Union as
well as State levels.

 The Secretariat helps the government in policy-making and execution of legislative

functions.

 The three components of government at the state level are (i) the Minister; (ii) the
Secretary; and (iii) the Executive Head (the last one in most cases is called the Director,
although other nomenclatures are also used to refer to the executive head).

 The Minister and the Secretary together constitute the Secretariat, whereas the office
of the Executive Head is designated as the Directorate.
 7

 Literally, the term "Secretariat" means the Secretary's office.

 It originated at a time when what we had in India was really a government run by
the Secretaries.

 After Independence, the power of governance passed into the hands of the popularly
elected Ministers and thus the Ministry became the seat of authority.

 In the changed political situation, the term Secretariat has become a synonym for the
Minister's office.

 As the Secretary is the principal adviser to the Minister, therefore s/he needs to be in
the physical vicinity of the Minister.

 In effect, therefore, the Secretariat refers to the complex of buildings that houses the
office of Ministers and Secretaries.

 The expression Secretariat, it has been observed, is used to refer to the complex of
departments whose heads politically are Ministers; and administratively are the
Secretaries.

Position and Role

 The State Secretariat, as the top layer of the state administration, is primarily meant
to assist the state government in policy-making and in discharging its legislative
functions.

 The main functions of the State Secretariat are as follows:

 Assisting the ministers in policy-making, modifying policies from time to time and
discharging their legislative responsibilities.

 Framing draft legislation, and rules and regulations.

 Coordinating policies and programmes, supervising and controlling their execution,

and reviewing of the results.

 Budgeting and control of expenditure.

 Maintaining contact with the Government of India and other state governments.

 Overseeing the smooth and efficient running of the administrative machinery, and
initiating measures to develop greater personnel and organisational competence.
 8

 The administrative philosophy to which the secretariat system owes its existence is that
policy-making must be kept separate from policy execution.

 Several advantages claimed in favour of such an arrangement are:

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DAILY
CLASS NOTES
Public Administration

Lecture - 117
State Secretariat
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State Secretariat

Position and Role

❖ Several advantages claimed in favour of such an arrangement are:

➢ Freedom from operational involvement makes the policy-making apparatus

forward-looking and allows it to think in terms of the overall goals of
government rather than the narrow, sectional interests of individual
departments.

✓ (Role of Integration)

➢ Policy-making receives the time and attention it deserves if different sets of

persons are charged with the functions of policy-making as well as its execution.

✓ (Functional Specialisation)

➢ The secretariat serves as a disinterested adviser to the Minister. (Value Neutral

Behaviour of Max Weber).

✓ It is important to remember that the Secretary is the Secretary to the

government and not the Minister concerned, which ensures objective
examination of the proposals coming from the Executive Department. It
enables a more balanced scrutiny of proposals.

➢ Policy-making must be separated from current

administration; and day-to-day implementation
should be left to a different agency with executive
freedom, which ensures delegation of authority.

❖ The foremost role of the Secretariat is in policy-making.

❖ It assists the ministers in the formulation of government

policies. This has many aspects.

➢ First, the Secretary supplies the Minister with all the

data and information needed for policy formulation.

➢ Second, the secretaries sometimes provide the programmes, with content by

working out their details, on whose strength ministers are voted to power.
 3

➢ Third, the Secretariat assists ministers in their legislative work. Drafts of

legislation to be introduced in the legislature by ministers are prepared by the
secretaries. Besides, to answer questions in the Legislature, the Minister needs
relevant information; and the Secretary supplies this information to the Minister.
In addition, the Secretary also collects information required with respect to the
legislative committees.

➢ Fourth, the Secretariat functions as an institutionalised memory. This means that

the emerging problems require an examination in the light of precedents. Records
and files maintained in the Secretariat serve as an institutional memory and
ensure continuity and consistency in the disposal of cases.

➢ Fifth, the Secretariat is a channel of communication between one government

and another, and between the government and such agencies as the Finance
Commission.

➢ Finally, the Secretariat evaluates and keeps track of the execution of policies by
the field agencies.

Structure

❖ Vertically, a typical Secretariat Department has two hierarchical formations that of

the officers and, what is described as the office.

❖ Conventionally, the officers' hierarchy had three levels.

❖ Under this, a typical administrative department is headed by a Secretary who will

have a complement of Deputy Secretaries and Under/Assistant Secretaries.

❖ However, with growth in the functions of various secretariat departments, the

number of levels in the officers' hierarchy has been on the increase.

❖ As a result, between the Secretary and the Deputy Secretary, in some states,
positions of Additional and/or Joint Secretaries have also been created.

❖ A unique feature of the Secretariat system in India has been the distinction between
its two component parts - "the transitory cadre of a few superior officers” and “the
permanent office”.
 4

❖ The officers in each department, because they hold tenure posts, come and go. (IAS
mostly).

❖ It is the office, which is manned by permanent functionaries, which provides the

much-needed element of continuity to the Secretariat department.

❖ Unlike officers, the office constitutes the permanent element in the Secretariat
system.

❖ The office component is comprised of superintendents (or section officers), assistants,

clerks, computer operators etc.

❖ The office performs the spadework on the basis of which the officers consider cases
and make decisions.

❖ Office supplies officers with materials, which constitute the basis for decision-making.

❖ The structure of a typical Department can be depicted as follows:

➢ Department - Secretary

➢ Wing - Additional/Joint Secretary

➢ Division - Deputy Secretary

➢ Branch - Under Secretary

➢ Section - Section Officer

❖ The Section is the lowest organisational unit and it is under the charge of a Section
Officer.

➢ Other functionaries in a section are assistants, clerks, computer operators, etc.

➢ A Section is referred to as the office.

❖ Two Sections constitute the Branch, which is under the charge of an Under
Secretary.

❖ Two branches ordinarily form a Division, which is headed by a Deputy Secretary.

❖ When the volume of work of a department is more than a Deputy Secretary can
manage, one or more Wings are established with a Joint Secretary in charge of each
Wing.
 5

❖ At the top of the organisational hierarchy is the Secretary who is in charge of the
Department.

Pattern of Departmentalisation

❖ Each Secretary is normally in charge of more than one Department.

❖ The number of Secretariat departments would therefore be larger than the number
of secretaries.

❖ The number of secretariat departments varies from state to state.

❖ The number of departments in a particular state is not necessarily related to its size
in terms of population.

❖ For instance, in 2020, a small state like Mizoram had as many as 48 Secretariat
Departments, the corresponding figure for Gujarat (which is a much larger state) had
25 Departments. There are 53 departments in Haryana.

❖ The large number of departments, in most of the states is created on the basis of
factors such as volume of work, importance attached to certain items, political
expediency etc.

❖ Partly, such an increase in the number of departments may arise from the peculiar
problems a particular state may face.

❖ In this context, the Second Administrative Reforms Commission (ARC) observed that
a small and compact Secretariat in which all activities and functions are kept
together in one department, with more responsibilities devolved on local governments
and executive work, which is not related to policy-making and monitoring, hived off
to executive agencies is necessary for good governance at all levels of administration.

❖ Thus, there is an urgent need to rationalise the number of Secretariat Departments

in the State Governments.

Distinction Between the Secretariat and Executive Department

❖ The Secretariat Department must be distinguished from the Executive Department.

➢ Secretariat→ Staff Agency

➢ Executive Departments→ Line Agency

 6

❖ The Secretariat has the function of aiding, assisting and advising the Political
Executive in arriving at policy choices.

❖ The heads of Executive Departments - who are known as Director (although another
nomenclature is also used) have the responsibility of implementing policies formulated
by the Political Executive.

❖ Thus the Secretaries assist in policy formulation, whereas the Directors' role lies in
executing policy.

❖ Each Secretariat Department is in charge of a number of Executive Departments.

❖ This number varies over a wide range with some departments taking charge of a
much larger number of executive heads than others.

❖ There is an average of 6 to 7 executive departments in relation to one Secretariat

Department.

❖ However, it must be carefully noted that not all secretariat departments have
executive departments attached to them.

❖ Some of the Secretariat departments are engaged in advisory and controlling

functions and therefore do not have executive departments reporting to them.

➢ Examples are Departments of Law, Finance etc.

❖ The Secretariat and Executive departments organisationally express the policy

formulation and policy execution processes involved in the functioning of the
government; the two may be looked upon as extensions of the personality of the
Council of Ministers.

❖ The Secretariat Department is normally headed by a generalist civil servant (drawn

from the IAS), and the Executive Department by a specialist.

❖ The specialist (the head of the Executive Department) functions under the supervision
of the generalist (the Secretary or the Head of the Secretariat Department).

❖ The Director of Agriculture, who is a specialist, is trained in and holds a formal

degree in agricultural sciences, would function under the supervision of the Secretary,
Agriculture (a generalist, an IAS).
 7

❖ The latter represents the Agriculture Department at the Secretariat level, whereas
the Director of Agriculture represents the Agriculture Department at the Executive
level.

❖ The Director is the Executive Head of the Agriculture Department- the Directorate of
Agriculture.

❖ Likewise, the Home Department in the Secretariat has the Director-General of Police
as its Executive Head of the Department.

❖ A similar correlation exists between the Education Secretary and Education Director,
Industries Secretary and Industries Director, Social Welfare Secretary and Social
Welfare Director, and so on.

❖ At a conceptual level, the two are distinct and it is possible to identify and define
them as two clearly distinguishable phenomena.

❖ But at a 'practical plane, the two are inextricably interlinked, even tend to become
indistinguishable and, therefore, it is difficult to say where the policy ends and
administration begins.

❖ Policy is concerned with political choices and involves questions of broader values,
whereas administration is concerned with implementing programmes emanating
from particular policy decisions.

❖ Administration, therefore, involves such details of execution

as framing organisational structures, staffing organisations,
coordinating activities, directing, controlling, and
motivating the personnel and so on.

➢ POSDCoRB principles of Gullick and Urwick and POCCC

principles of Henry Fayol.

➢ Herzberg and Maslows concept of motivation.

❖ That the two are dichotomous is the traditional view, which owes its origin to
Woodrow Wilson's essay of 1887, "The Study of Administration". Politics, he said, is
the proper activity of the Legislature and other policy-making groups (e.g., political
parties, cabinet, etc.).
 8

❖ Administration is the sphere of administrators who carry out the policies stated in
the laws.

❖ The context of the dichotomy was the civil service reform movement of the 1880s in
the United States, which aimed to eliminate political interference in civil service.

❖ It was argued that civil service recruitment should, in the interest of administrative
efficiency, be based on considerations of merit and fitness rather than partisan
politics.

❖ In other words, politics should be kept out of administration.

❖ Max Weber further justified the separation of policy from administration by arguing
that the attributes of politicians (vote maximisation) are exactly the opposite of those
of civil servants (Legal-Rational-Authority).

❖ The essence of politics is to take a stand, to take personal responsibility for the
policies decided on, and to admit the transitory nature of the political role.

❖ The essence of administration is to execute conscientiously the order of the political

authority, even if it appears wrong to the administrator.

❖ The administrator is politically neutral. S/he simply does what s/he is asked to do
and assumes no personal responsibility.

❖ However, the complexities of governmental

operations have increasingly required
administrators to become involved in policy-
making or political decisions.

As a result of this, it is in practice found to be

difficult to draw a clear boundary separating policy
and administration, or to say where policy ends and
administration begins.

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DAILY
CLASS NOTES
Public Administration

Lecture - 118
Civil Services
 2

Civil Services

Administrative Expertise
 The administrators stay in office longer (they are career civil servants) than the
politicians, who come and go with elections, the former have opportunities of giving
sustained attention to problems.

 From this, they gain an invaluable kind of practical knowledge that comes from the
experience of handling these problems day in and day out.

 This knowledge is conserved in records and transmitted to new generations of civil

servants through training programmes.

 This monopoly of experience and practical knowledge coupled with continuity in office
gives them a decisive edge over politicians in framing policies.

 The administrators are in possession of facts, figures, information and intelligence

regarding the specific areas in which policies are to be framed.

 Politicians would need these data and statistics in formulating policies.

 Administrative expertise also comes pre-eminently from the fact that the governments
of today employ a large variety of professionals (doctors, engineers, scientists,
economists, etc.).

 They possess technical knowledge, which forms a vital input in policy-making.

 The advent of the merit system has also helped to build up administrative expertise by
attracting better talent in civil service and loosening the grip of politicians on civil
service.

 E.g.- The role of PMO in appointing bureaucracy in the Union Ministries based on
merit and probity.
 3

Policy Making
 The increase in civil service expertise, together with growth in the functions of
government and the growing complexity of administration, has resulted in an
increasing dependence of politicians on administrators in the task of policy-making.
 This is reflected in the following:
 Policy-making exercise is done based on facts, figures, information and data, which
are supplied by the bureaucracy.
 Civil servants based on their long administrative experience, tender advice to the
politicians on the administrative, technical and financial feasibility of the various
policy options under consideration.
 Civil servants prepare the draft legislations (bills), which after ministerial approval
are placed before the legislature for its consideration.
 Administrators formulate policy through the exercise of administrative discretion.
 When an administrator is required to choose between alternative courses of action
within a policy frame, s/he is said to exercise discretion.
 In this sense, administrators are described as supplementary lawmakers.
 Here, the actual content of policy becomes entirely a matter of bureaucratic
determination.
 The administrators decide how the State's power shall be used in specific cases.
 In modern times, there has been an increase in administrative discretion by virtue of
an incessant increase in the volume of legislation to be enacted.
 The legislature is under the circumstances, compelled to confine itself to indicating a
broad framework of law, leaving details to be filled up by the administrative agencies.
 The growing variety and complexity of laws to be enacted has further circumscribed
the Legislature's competence.
 The legislators do not have the technical know-how and training to venture into the
details of particular legislation.
 This further necessitates the exercise of administrative discretion.
 At any rate, if the Legislature delves into the details of each law, this would be at the
cost of other important duties and functions of the legislators and therefore an
undesirable thing to happen.
 4

 This coupled with the assurance that it has the necessary means available to hold the
administration accountable to itself, encouraged the Legislature in its attitude of not
delving too deeply into the details of the enactment it formulates.

 Ultimately, the policy is to be executed in the field where an administrator must

necessarily face a bewildering variety of situations as s/he sets herself/ himself to the
task of policy execution.

 For the law-making agency, it is not possible to visualise, at the point of legislation,
the different variety of situations that may arise in the field.

 For this reason, once again, the policy-makers must do no more than to provide only
broad guidelines in the legislation they frame.

 However, when the guidelines are very broad it creates the problem is they can be
interpreted in many ways.

Civil Services
Introduction

 Bureaucracy is a difficult term to define.

 It means different things to different people.

 There is no terminological accuracy about the concept of bureaucracy.

 Some equate bureaucracy with efficiency and others with inefficiency.

 To some, it is a term synonymous with civil service and for others, it refers to a body
of officials.

 But basically, bureaucracy is a systematic organisation of tasks and individuals into a

pattern which most effectively achieves the desirable ends of such collective effort.

 In a more traditional sense, the term bureaucracy is derived from the Latin word
'bureau' which means 'desk' and the Greek word 'cracy' which means ‘rule’.

 Thus it refers to desk rule or desk government.

 It was a Frenchman, Vincent de Goumay, who first coined the term bureaucracy in
1765.

 The normative model of bureaucracy emphasises the structure of the organisation.

 5

 While the empirical model of bureaucracy, that is bureaucracy in the modern context,

emphasises the behavioural and functional patterns in an organisation.

 If we look into structural features of bureaucracy like hierarchy, division of labour,

system of rules etc., bureaucracy is value-neutral.

 From the behavioural angle, since it displays certain characteristics like objectivity,

rationality, impersonality, rule orientation etc., bureaucracy shows some functional i.e.

positive as well as some dysfunctional i.e. negative symptoms.

 From the achievement point of view, it (bureaucracy) can be regarded as a pattern of

organisation that maximises the efficiency of administration.

Types of Bureaucracy

 Bureaucracy is influenced by social, cultural, economic and political factors.

 Thus every bureaucracy is influenced by the environment.

 With the result, at different points of time in history, it has taken different shapes and

forms.

 Fritz Morstein Marx has categorised bureaucracy into the following four types:

1. The Guardian bureaucracy

2. The Caste bureaucracy

3. The Patronage bureaucracy

4. The Merit bureaucracy

 The Guardian bureaucracy

 The Guardian bureaucracy was prevalent in China up to the advent of the

Sung period (960 A.D.) and in Russia during 1640 and 1740.

 The bureaucracy comprised guardians who were selected on the basis of their

education and were then trained in the right conduct.

 They were considered the custodians of justice and welfare of the community.

 Marx defined this type as "a scholastic officialdom trained in right conduct

according to the classics".

 6

 The Caste bureaucracy

 The Caste bureaucracy has a class base.
 According to Marx, it "arises from the class connection of those in the
controlling positions".
 In this type, recruitment is made from one class.
 Such a type is widely prevalent in oligarchical political systems.
 Under such systems, only persons belonging to upper classes or higher castes
can become public officials.
 Thus, in ancient India, only Brahmins and Kshatriyas could become high
officials.
 According to Marx, another way in which such a type manifests itself is, by
"linking the qualifications for the higher posts with arrangements that amount
to class preference".
 This is what Willoughby has described as the aristocratic type existing in
England till recently where aristocratic classes were preferred to the civil
service positions.
 The Patronage bureaucracy
 Another name for the Patronage bureaucracy is the "spoils system".
 Its traditional home has been the U.S.A., though patronage had full sway even
in the U.K., till the middle of the 19th century when it helped the aristocracy
to gain entry into the civil service.
 This type of civil service exists where public jobs are given as a personal favour
or political award.
 This system worked differently in the U.K. and the U.S.A.
 In the U.K., patronage bureaucracy marched side by side with an aristocratic
social order and fulfilled its purpose.


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DAILY
CLASS NOTES
Public Administration

Lecture - 119
Civil Services (Part 02)
 2

Civil Services (Part 02)

❖ The Patronage bureaucracy

➢ Another name for the Patronage bureaucracy is the "spoils system".

➢ Its traditional home has been the U.S.A., though patronage had full sway even in

the U.K., till the middle of the 19th century when it helped the aristocracy to gain

entry into the civil service.

➢ This type of civil service exists where public jobs are given as a personal favour or

political award.

➢ This system worked differently in the U.K. and the U.S.A.

➢ In the U.K., patronage bureaucracy marched side by side with an aristocratic social

order and fulfilled its purpose.

➢ In the United States, on the contrary, the system worked quite differently and jobs

were distributed as spoils to the victorious political party.

➢ This system of patronage bureaucracy was condemned as an anachronism (suitable

only for that period) for its lack of technical competence, its careless discipline, its

concealed greediness, its irregular ways, its partisanship and its absence of spirit of

service.

❖ The Merit Bureaucracy

➢ Max Weber has emphasised this type of bureaucracy.

➢ The Merit bureaucracy has, as its basis, the merit of the public official and it aims

at the efficiency of the civil service.

➢ It aims at a "career open to talent".

➢ Here an attempt is made to recruit the best person for the public service, the merit

being judged by objective standards.

➢ In modern times, this method is in vogue in all countries.

 3

➢ Appointment to public service is now no longer governed by class considerations,

and it is no more a gift or a favour.

➢ The public servant is not a self-appointed guardian of the people.

➢ The civil servant in a modern democracy is really an official in the service of the

people and is recruited on the basis of prescribed qualifications rested objectively.

➢ Also, he/she owes the job to no one except to one's hard work and intelligence.

Civil Services in India after Independence

Issues in Civil Services in India

❖ After Independence, the structure of the civil services underwent a change.

❖ Three types of services viz., All India Services, central services and state services were

created.

❖ All India Services (AIS)

➢ The Constitution of India has recognised only two All India Services namely the

Indian Administrative Service and Indian Police Service.

 4

➢ The Indian Administrative Service replaced the former Indian Civil Service in 1947

and similarly in 1951 Indian Police Service was constituted in place of the Indian

Police.

➢ In 1963, a provision was made for three more AISs. They are

✓ Indian Forest Service

✓ Indian Medical and Health Service

✓ Indian Service of Engineers

➢ In 1966 the Indian Forest Service was created.

➢ Article 312 authorizes the Parliament of India to create a new AIS based on a

resolution passed by the Rajya Sabha to that effect.

➢ The members of the All India Services, like the central services, are recruited and

trained by the central government, but they are assigned to different states.

➢ They serve the respective state government to which they are allotted and their

service conditions are also governed by the states, except that disciplinary action

against them can be taken only by the President of India in consultation with the

Union Public Service Commission.

➢ They also serve the central government on deputation and after a fixed tenure,

they are expected to return to their respective states.

➢ In 1951, the All India Services Act was passed.

➢ By virtue of powers conferred by sub-section (1) of Section (3) of this Act, the

central government framed a new set of rules and regulations pertaining to the

All-India Services.

➢ All the three AISs are Class - I (Group - A) Services.

➢ The AIS have three categories:

✓ Super Time Scale

✓ Senior Scale

✓ Junior Scale
 5

➢ In the beginning, officers are appointed in the Junior Scale

➢ In the course of time, they are placed in the Senior Scale and the Super Time Scale.

❖ Central Services

➢ These services are under the control of the Union Government and are responsible

for the administration of central subjects.

➢ These include the Indian Foreign Service, Indian Audit & Accounts Service, Indian

Postal Service etc.

❖ State Services

➢ These are services exclusively under the jurisdiction of the state governments and

primarily administer the state subjects.

➢ However, 33 per cent of posts in the All-India Service are filled by promotion from

the state services.

❖ This three-fold classification of services reflects the Constitutional pattern of division of

subjects into Union, State and Concurrent.

❖ Also, this is a unique feature of our federal system.

Constitutional Position

❖ Article 309 empowers the Parliament and the state legislatures to regulate the

recruitment and the conditions of service of the persons appointed to public services

and posts under the Centre and the states, respectively.

❖ Until such laws are made, the President or the Governor can make rules to regulate

these matters.

❖ Recruitment includes any method provided for inducting a person into public service

like appointment, selection, deputation, promotion and appointment by transfer.

❖ The conditions of service of a public servant include pay, allowances, periodical

increments, leave, promotion, tenure or termination of service, transfer, deputation,

various types of rights, disciplinary action, holidays, hours of work and retirement

benefits like pension, provident fund, gratuity and so on.

 6

Tenure of Office

❖ According to Article 310, members of the Defence Services, the civil services of the
Centre and the All India Services or persons holding military posts or civil posts under
the Centre, hold office at the pleasure of the President.

❖ Similarly, members of the civil services of a state or persons holding civil posts under a
state, hold office during the pleasure of the Governor of the state.

❖ However, there is an exception to this general rule of dismissal at pleasure.

❖ The President or the Governor may (in order to secure the services of a person having
special qualifications) provide for the payment of compensation to him in two cases:

➢ if the post is abolished before the expiration of the contractual period, or

➢ if he is required to vacate that post for reasons not connected with misconduct on
his part.

❖ The above provisions have been provided to protect the interest of specialists.

❖ Notably, such a contract can be made only with a new entrant, that is, a person who
is not already a member of a Defence Service, a Civil Service of the Centre, an All-
India Service or a Civil Service of a state.

Safeguards to Civil Servants

❖ Article 311 places two restrictions on the above 'doctrine of pleasure'.

❖ In other words, it provides two safeguards to civil servants against any arbitrary
dismissal from their posts:

➢ A civil servant cannot be dismissed or removed by an authority subordinate to that

by which he was appointed.

➢ A civil servant cannot be dismissed, removed or reduced in rank except after an

inquiry in which he has been informed of the charges against him and given a
reasonable opportunity of being heard in respect of those charges.

❖ The above two safeguards are available only to the members of the Civil Services of the
Centre, the All-India Services, the Civil Services of a state or to persons holding civil
posts under the Centre or a state and not to the members of defence services or persons
holding military posts.
 7

❖ However, the second safeguard (holding inquiry) is not available in the following three

cases:

➢ Where a civil servant is dismissed or removed or reduced in rank on the ground of

conduct which has led to his conviction on a criminal charge; or

➢ Where the authority empowered to dismiss or remove a civil servant or to reduce

him in rank is satisfied that for some reason (to be recorded in writing), it is not

reasonably practicable to hold such inquiry; or

➢ Where the President or the Governor is satisfied that in the interest of the security

of the state, it is not expedient to hold such an inquiry.

❖ Originally, the opportunity to be heard was given to a civil servant at two stages, the

inquiry stage and the punishment stage.

❖ However, the 42nd Amendment Act of 1976 abolished the provision for a second

opportunity (that is, the right of a civil servant to make representation against the

punishment proposed as a result of the findings of the inquiry).

❖ Hence, the present position is that where it is proposed (after inquiry) to impose upon

a civil servant the punishment of dismissal, removal or reduction in rank, it may be

imposed based on the evidence adduced at the inquiry without giving him any

opportunity of making representation on the penalty proposed.

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DAILY
CLASS NOTES
Public Administration

Lecture - 120
Civil Services (Part - 03)
 2

Civil Services (Part - 03)

 The Supreme Court held that the expression 'reasonable opportunity of being heard'
envisaged to a civil servant (in the second safeguard mentioned above) includes:

 an opportunity to deny his guilt and establish his innocence which he can only do
if he is told what the charges levelled against him are and the allegations on which
such charges are based;

 an opportunity to defend himself by cross-examining the witnesses produced

against him and by examining himself or any other witnesses in support of his
defence and

 the disciplinary authority must supply a copy of the inquiry officer's report to the
delinquent civil servant for observations and comments before the disciplinary
authority considers the report.

Systems of Recruitment

 The present system of recruitment to All India Services and higher Central Services in
our country is based on the recommendations made by the following committees:

 The Macauley Committee

 The Kothari Committee

 The Satish Chandra Committee

 The Khanna Committee

 The Nigavekar Committee

 It must also be mentioned here that the Alagh Committee (2000-2001); Hota
Committee (2004) and the Second Administrative Reforms Commission (2005 -
2009) have also reviewed the system of recruitment to All-India Services and higher
Central Services and suggested various changes.

 The report of the Macaulay Committee on the ICS laid down the basic policy governing
recruitment to civil service for the first time in 1854.
 3

 The most important aspects of this policy were the system of open competition and
the scholastic nature of the examination.

 The present scheme of examination to test the merit and suitability of candidates for
direct recruitment to the All-India Services and higher Central Services is laid down
by the Kothari Committee and the Satish Chandra Committee.

 However, the basic policy laid down, and the philosophy of recruitment advocated by
the Macaulay Committee continue to influence the system.

 The Committee on Recruitment Policy and Selection Methods under the Chairmanship
of D.S. Kothari was appointed by the UPSC in 1974.

 It submitted its report in 1976.

 The Government accepted most of its recommendations in 1978 and implemented

them in 1979.

 Thus, the new system of competitive examination came into existence in 1979.

 Only in 1993, some changes were introduced in this system on the recommendations
of the Satish Chandra Committee.

 The Committee on the Recruitment Policy and Selection Methods for All-India and
Central Services under the Chairmanship of Satish Chandra was appointed by UPSC
in 1988.

 It submitted its report in 1989.

 The Government implemented some of its recommendations in 1993.

 The main changes affected were the introduction of an essay Paper carrying 200
marks and an increase in the marks for the interview test from 250 to 300.

 In 2011, the UPSC changed the pattern and syllabus of the Civil Services Preliminary
Examination.

 In the old scheme (before 2011), there was one paper of General Studies which Carried
150 marks and a second paper where the candidate had the option to choose from
23 optional papers, carrying 300 marks.
 4

 Under the new and revised pattern, there are two common and compulsory papers of
200 marks each.

 In other words, the optional paper has been replaced with another General Studies
paper.

 These changes were made based on the recommendations of a Committee headed by

S.K. Khanna, Ex-Vice Chairman of UGC.

 This Committee was constituted in 2010 to review the scheme of the Civil Services
Preliminary Examination and suggest necessary changes.

 Subsequently, the UPSC formed another Committee (in 2011) under the Chairmanship
of Arun S. Nigavekar, Ex-Chairman of UGC, to review the scheme of the Civil Services
Main Examination and suggest necessary changes.

 The Committee submitted its report in 2012.

 Based on these recommendations, the UPSC introduced changes in the scheme of the
Civil Services Main Examination from the year 2013.

 In the new and revised format, the weightage of General Studies has been increased
and one optional subject (consisting of two papers) has been dropped.

 In effect, there are now four General Studies papers and only one optional subject
(with two papers).

 In August 2015, the UPSC constituted an Expert Committee under the Chairmanship
of B.S. Baswan, a former Education Secretary, to comprehensively examine the various
issues raised from time to time regarding the Civil Services Examination, with respect
to eligibility, syllabus, scheme and pattern of the Examination.

 The Committee submitted its report to the UPSC in August 2016.

 In March 2017, the Department of Personnel and Training (DoPT) received the
Baswan Committee's report along with that of the UPSC recommendations on it.

 The Civil Services examination that selects the top bureaucrats in the country is likely
to see major changes that include the reduction of the upper age limit and removal of
an optional paper in the mains, to ensure a level playing field for all the aspirants.

 The recommendations were made by the Baswan Committee, which is yet to be made
public.
 5

Baswan Report

 There is a need to expedite the cadre review process.

 The Personnel Departments of the State governments must be entrusted with the task
of cadre review process in a time-bound manner.

 A meaningful assessment should be done about the requirement of IAS officers every
year to send a realistic requirement of Direct Recruits each year, and to monitor the
vacancies under the promotion ceiling.

 To fulfil the requirement of the IAS for the next 10 years, the intake through the civil
service examination will need to be limited to a certain number to maintain quality
and to balance the demand of different cadres. This number should be realistic
according to the cadre gap.

 A limited competitive examination on the lines of the Special Recruitment for IAS
officers in the 1950s is under consideration for the IPS from the Home Ministry. This
need not be considered by DoPT, as the proposed rise in the recruitment of direct
recruits to the IAS should help close the gap.

 The process of settlement of disputes by the various state governments in relation to

the promoted officers should be done in a speedy manner, in order to minimize the
gap.

 The process of preparation of select lists should be initiated well in advance while taking
into consideration the number of vacancies that would arise in the next few years.

 The ACRs (Annual Confidential Reports) of the State Civil Service Officers should be
kept up to date as it saves time at the stage of promotion.

 There is need also to evolve and put in place appropriate norms for determining the
IAS cadre strength and ensuring the nature and requirements of ex-cadre posts. In at
least one case, an ad hoc increase in SDR has been approved.

 There should be an ongoing assessment of anticipated including voluntary retirements

and resignations.
 6

 The annual intake of IAS officers should be to the tune of 180 per year. With this
number, the backlog of 569 vacancies can be reduced by 443 in the year 2020. The
remaining backlog of 120 can be filled in the first half of the next decade.

 Any number above 180 would:

 Compromise Quality

 Exceed the LBSNAA's capacity.

 Lead to a distortion in the career pyramid of IAS Officers, particularly for senior
posts in the Government of India. It is also for this reason that we have not factored
in resignations, deaths and cadre reviews, and vacant posts in the Centre and
States can be filled by deputation where the number of deputationists would be
less than at present.
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DAILY
CLASS NOTES
Public Administration

Lecture - 121
Civil Services (Part - 04)
 2

Civil Services (Part - 04)

Hota Committee
 The minimum and maximum age at the recruitment stage should be what it was from
1948 to 1971, i.e. 21 and 24 years for general candidates.

 Mid-term appraisal of officers and if in that appraisal, the officer is not found to be
honest and performance-oriented, then he should be weeded out of service on
completion of 15 years on proportionate pension.

 This is in practice through Rule 56 (J) of Central Civil Services (CCS) Pension Rules,
1972.

 Every ministry, department and office with a large public interface must have a few
toll-free telephone numbers with a voicemail facility.

 Officers of AIS (All India Services) on deputation to their home state must immediately
report back to their parent cadres on the expiry of their periods of deputation.

 Only one term of deputation for an officer of the AIS should be allowed to the home
state.

 To increase the representation of women in the service, at least 25% of members of

higher civil services should be women as against the existing level of 12 to 13%.

 Women in higher Civil Services should be given four years of leave with full pay in this
entire service career, over and above the leave due to them under the normal rules.
Such a facility will enable them to balance their roles as officers with their roles as
mothers.

 Child Care Leave (CCL) is provided to women officials in government services.

 The Official Secrets Act should be modified to cover only the essential minimum
requirements of national security, public order and individual privacy.

 To provide a clean honest and transparent government, antiquated rules and

procedures must be discarded and new simplified ones should be put in place. Such an
exercise is absolutely essential for the introduction of e-governance.

 E.g.- e-Office and Public Financial Management Systems.

 3

 Annual property returns of all public servants should be put on the website.

 Rules should be framed under the Benami Transactions (Prohibition) Act, 1988 for
attachment/forfeiture of benami/ill-gotten property of corrupt bureaucrats.

 Currently, the Enforcement Directorate attaches property gained by illicit means

under the Prevention of Money-Laundering Act, 2002.

 The Constitution be amended to enable the President or Governor to dismiss or remove

public servants summarily in case of corrupt practice.

 All officers having a public interface to wear name badges while on duty.

 Junior officers at the cutting-edge level of administration should be given training in

customer services, attending to phone calls and resolving public grievances.

 E.g.- Likert Scale.

Second Administrative Reforms Commission Recommendation

 The Government of India should establish National Institutes of Public Administration

to run Bachelor's Degree courses in public administration/governance/management.
The selected universities should also be assisted to offer such graduate-level programmes
in public administration/governance / public management. These graduates from the
National Institutes of Public Administration and selected universities would be eligible
for appearing in the Civil Services Examination. Further, other graduates would also
be eligible to appear in the Civil Services Examination provided they complete a 'Bridge
Course' in the core subjects. The Bridge Course should be run by the same national
institutes/universities.

 The permissible age for appearing in the Civil Services Examination should be twenty-
one to twenty-five years for general candidates, twenty-one to twenty-eight years for
candidates from OBC and twenty-one to twenty-nine years for candidates from
SC/ST as well as for those who are physically challenged.

 The number of permissible attempts in the Civil Services Examination should be three,
five, six and six respectively for general candidates, candidates from OBC, candidates
from SC/ST and physically challenged candidates.
 4

 The Preliminary Examination should consist of an objective type test having one or two
papers on general, studies including the Constitution of India, the Indian legal system,
Indian economy, polity, history and culture. There should be no optional subjects.

 The Main Examination should consist of two papers only in the compulsory subjects.
These compulsory subjects may include the Constitution of India, the Indian legal
system, Indian economy, polity, history and culture etc. The question papers should be
of the conventional descriptive type. Besides, there should be a separate essay paper as
a part of the Main Examination.

 The induction of officers of the State Civil Services into the IAS should be done by the
UPSC on the basis of a common examination.

 Every government servant should undergo mandatory training at the induction stage
and periodically during his/her career. Successful completion of these training
programmes should be a minimum necessary condition for confirmation of service and
subsequent promotions. Mandatory induction training programmes should be
prescribed for Group D staff also before they are assigned postings.

 The training aspect has become less important due to the advent of technology,
contractual employment etc.

 A national institute of good governance may be set up by upgrading one of the existing
national/state institutes. This institute would identify, document and disseminate best
practices and also conduct training programmes.

 The NITI Aayog provides the best practices documents and case studies.

 For making the appraisal more consultative and transparent, the performance
appraisal systems for all Services should be modified on the lines of the recently
introduced Performance Appraisal Rules (PAR) for the All India Services.

 The Government should expand the scope of the present performance appraisal system
of its employees to a comprehensive performance management system (PMS).

 Annual performance agreements should be signed between the departmental minister

and the Secretary of the ministry/heads of departments providing physical and
verifiable details of the work to be done during a financial year. The actual performance
should be assessed by a third party.
 5

 For a transparent system of appointments in the government, covering all ranks, the
Commission has suggested the setting up of a Central Civil Services Authority. The
Authority should be a 5 member body with the Chairperson appointed by the President
on the recommendations of the Prime Minister and the Leader of the Opposition to
make it apolitical.

 The Commission is of the view that in order to avoid any conflict of interest,
government officials should not be allowed to go on deputation to private commercial
organisations.

 In order to increase accountability, the Commission suggested a periodic review of the

performance for which it recommended a system of two intensive reviews - one on
completion of fourteen years of service and the other on completion of twenty years.
The first review will primarily serve the purpose of intimating the individual about
his/her performance and the second is mainly to assess the fitness of the officer for
his/her future continuation in service. The employees found unfit after twenty years
should be dispensed with.

Civil Service Neutrality

 Neutrality means impartiality.

 The significance of the neutrality of the bureaucracy in the modern democratic state
is great.

 The bureaucracy plays an important role in policy-making as well as in its

implementation.

 The permanence of members of the bureaucracy helps to provide them with a long-
term perspective, while ministers tend to have a short-term perspective related to the
elections.

 The bureaucracy has access to a lot of confidential information, which ministers often
do not possess since they lack the time to read all the official documents.

 Bureaucrats come to have long experience in administration, while ministers come and
go.
 6

 Many of the members of the bureaucracy are technically qualified, while ministers
usually are amateurs.

 For these reasons, there is considerable dependence upon the bureaucracy in all
countries.

 In developing countries, interest groups and political parties are either weak or non-
existent, electoral systems are often defective and the traditions and conventions of
democracy have often not been well-established.

 Hence dependence upon the bureaucracy is greater in developing countries, making it

more important that the bureaucracy should be neutral.

 Neutrality of bureaucracy can be discussed under three heads:

 Neutrality between classes,

 Neutrality between cultural groups, and

 Neutrality between political parties.

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DAILY
CLASS NOTES
Public Administration

Lecture - 122
Civil Services (Part - 05)
 2

Civil Services (Part - 05)

Neutrality Between Classes

 The bureaucracy is the government's main instrument and must be neutral between
classes if justice is to be done.

 Justice between classes is difficult to achieve because their interests often conflict

 It is only if the government and the bureaucracy are seen to be neutral that the conflict
can be kept within limits and peace maintained.

 If, however, a class has the feeling that injustice is being done to it, it may take to the
warpath.

 E.g.- Naxalism movement.

 Thus disputes between capitalists and workers result in lockouts or strikes, sometimes
there is even violence and bloodshed.

 Hence the neutrality of the bureaucracy, which is the main instrument of the
government, is essential for the maintenance of social order.

 The conflict between classes is greater in developing countries like India than in
developed ones.

 This is because there are greater disparities in developing countries.

 According to Oxfam’s Report, between 2012 and 2021, the richest 1% owned
40% of the country’s total wealth in India.

 The neutrality of the bureaucracy is important also because of its role in helping to
bring about development.

 The government provides loans, subsidies, tax concessions, raw materials (such as steel
and cement), and inputs (such as coal, electricity, fertiliser and seeds) to industrialists
and farmers.

 The classes of big industrialists and big farmers have a lot of political and economic
power and, therefore, tend to monopolise these gains.
 3

 However, development requires that small industries and small farms (86% of total
farmers) should also prosper: they are large in number and make substantial
contributions to the national product.

 Justice also requires that they should not be ignored.

 Hence it is important that the bureaucracy, which distributes these facilities, should do
so impartially and justly.

 However, there are some problems in attaining this ideal.

 One of these is related to the bureaucracy's social background.

 Most of the higher bureaucracy comes from a single class. Thus about 70 % of the IAS
officers come from the urban, salaried or professional, middle class.

 This indicates that farmers and workers, who constitute the majority of the population,
remain grossly underrepresented.

 If the bureaucracy were more representative, it would likely be more neutral.

 Members of every class tend to be partial to the interests of their own class.

 This phenomenon is explained in Public Choice Theory as "Self-interest".

 If a large majority of members of the bureaucracy come from a single class, the
bureaucracy is likely to be partial to this class.

 This problem can be solved to some extent by making the examination for recruitment
more broad-based.

 Another problem relates to the influence of interest groups.

 A department that serves a certain interest is, in the course of time, likely to become
identified with it.

 It has to come into close and continuous touch with persons having this interest, and
it often has to function as the advocate of this interest.

 Thus the Department of Agriculture has to serve farmers by providing various facilities
and has to obtain funds for this purpose.

 In this process, the farmers' lobby and the Department of Agriculture are likely to
become mutually supportive.
 4

 If the interests of farmers and industrialists clash, as they often do, the Department
of Agriculture is likely to take the side of farmers.

 Hence such specialised agencies are in danger of losing their neutrality.

 This problem has arisen in an acute form in the United States with regard to various
'constituency agencies'.

 In developing countries like India, it tends to arise mainly with regard to agencies
dealing with powerful interests, like those of big' industrialists and big farmers.

 The solution to it lies in the development of organisations of hitherto weaker sections

of society.

 It can be done through Non-governmental Organisations, Civil Society

Organisations, Self Help Groups etc.

 Efforts are now being made in India to help landless labour to organise itself.

 E.g.- Farmers Union, E-Shram Portal.

 Similarly, if various interests organise themselves, and demand better political control
over the bureaucracy, so as to ensure its responsibility and accountability, it is likely to
remain more neutral.

Neutral Between Cultural Groups

 Our society consists of groups based on religion, caste, language and region.

 While all these groups have many common interests, they also come into conflict to
some extent

 The bureaucracy is required to hold the balance between the various groups.

 Hence it is important that it should be neutral between them.

 Since the conflict between cultural groups is generally greater in developing countries,
the significance of the bureaucracy's neutrality is also greater in these countries.

 The way to the achievement of such neutrality, and also to the general reduction of
conflict between cultural groups, lies through better education.
 5

 If the attitudes of the people can be changed through education so that they come to
regard themselves more as belonging to the Indian nation than to a particular group
based on religion, caste, language or region, the conflict between groups can be reduced.

 Members of the higher bureaucracy are recruited mostly from among those who have
received higher liberal education.

 If higher liberal education really broadens the mental horizon, members of the higher
bureaucracy should be among the most broad-minded people in society, and hence
neutral between cultural groups.

 Muslims in India have a lower HDI (human development indicators→ Health, Education
and Standard of Living) than other religious groups.

 Most Sikhs in Punjab have a rural background.

 Members of the scheduled castes all over India are generally poorer and have a lower
social status than others.

 Many of them are landless labourers.

 Conflict between cultural groups can be reduced by narrowing the disparities between
them.

 One of the effects of such disparities is that a cultural group having a lower social and
economic status has a lower representation in the bureaucracy.

 Such a bureaucracy, with a higher representation of certain groups than others, is

often not perceived as being neutral.

 Hence the reduction of socio-economic disparities between cultural groups will not only
reduce conflict between them but also make for a more representative and neutral
bureaucracy.

 Programmes aiming at poverty removal, better health and education services, and
loans to small farmers and industrialists, constitute part of the governmental effort to
reduce disparities.

 Thus there is a need for Welfarism along with Efficiency in the Neo-Liberal Era.
 6

 Further, if a cultural group suffers from poverty and exploitation and is unable to find
adequate representation in the bureaucracy, special measures are taken to help it in
getting such representation.

 Thus, some universities and state institutes run special courses to prepare those
belonging to weaker sections for competitive examinations for entry into the
bureaucracy.

 The Constitution of India permits the reservation of posts in the bureaucracy for any
backward class of citizens under Article 16(4).

 Many of the reserved seats, however, remain unfilled due to the non-availability of
candidates with requisite qualifications belonging to the weaker sections.

 Still, these measures are able to help in having a more representative and more neutral
bureaucracy.

Neutrality Between Political Parties

 Competition between political parties is an essential characteristic of a democracy.

 Democracy becomes meaningful only if the voter can choose between candidates of
different parties.

 The exercise of choice by voters at general elections results in the formation of the
government by one of the contending parties.

 Fulfilment of the wishes of the people requires the implementation of these policies.

 The main instrument of the government for the implementation of its policies is the
bureaucracy.

 Hence it is important that the bureaucracy should be neutral between parties: such
neutrality alone can ensure the fulfilment of the wishes of the people.

 While the neutrality of the bureaucracy is accepted as an ideal, many problems arise
in practice and come in the way of the fulfilment of this ideal.

 One such problem has been the spoils system, under which the winning party appoints
its followers or supporters to different positions in the bureaucracy.
 7

 Such a bureaucracy, naturally, lacks in merit and efficiency. The spoils system brought
home the advantages of neutrality of the bureaucracy.

 The spoils system tends to arise with democracy but has to be curbed later on.

 It prevailed in the United States during most of the nineteenth century.

 The effort to replace it with the merit system, through the selection of permanent
officials by a Civil Service Commission, began with the passage of the Pendleton Act in
1883.

 In developing countries, where democracy arose around the middle of the twentieth
century, the spoils system has often tended to exist despite a Civil Service Commission.

 Thus if members of the Civil Service Commission themselves are chosen from among
the supporters of a political party, the neutrality of those whom they select can hardly
be ensured.

 In India, the Constitution contains several provisions for the maintenance of the
independence of Public Service Commissions. These are as follows:

 The Chairman or a member of a Commission can only be removed from his office
by the President on the ground of misbehaviour according to the report given by
the Supreme Court after holding an enquiry.

 The conditions of service of a member of a Public Service Commission cannot be to

his disadvantage after his appointment.

 The expenses of a Commission are charged on the Consolidated Fund of India or of

the concerned State.

 A Chairman or a member of a Commission, on ceasing to hold office, cannot get

employment under the government except at a higher post in a Public Service
Commission.

 Another problem which tends to interfere with the neutrality of the bureaucracy
between political parties is the development of loyalty towards the politicians in power.

 Members of the bureaucracy who have been selected impartially by a Civil Service
Commission, can later, in the course of their career, shed their neutrality and become
aligned with the party, or the individuals, in power.
 8

 According to the Shah Commission, this problem existed during the Emergency (1975-
77) in India.

 Some writers maintain that nowadays also, there is a tendency for the development
of such relationships of alliance between ministers belonging to different political parties
and senior civil servants in governments of different political parties in India.

 Thus it is suggested that the problem is not related to any particular party, but rather
to the underdevelopment of our political system.

 The solution, then, lies in political development.

 Political development requires strengthening and improving the working of the various
parts of the political system: interest groups, political parties, the electoral system,
mass media, legislatures, the judiciary, and the political and bureaucratic parts of the
executive.

 E.g.- The electoral bond scheme data was made public by the order of the Supreme
Court.

 Thus if interest groups representing the various interests in society put constant
pressure upon the government, it will become difficult for a minister and a bureaucrat
to collude for making unjust and partisan gains.

 If there is internal democracy in the ruling political party, its leaders also will remain
accountable to the rank and file of the party and not try to make selfish gains with
the complicity of members of the bureaucracy.

 If the electoral system helps to elect those who can truly represent the people, elected
politicians will tend to be more responsive to the people and are likely to refrain from
misusing the bureaucracy.
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DAILY
CLASS NOTES
PUBLIC ADMINISTRATION

Lecture - 123
Civil Services (Part 06)
 2

Civil Services (Part 06)

❖ Some writers maintain that nowadays also, there is a tendency for the development

of such relationships of alliance between ministers belonging to different political

parties and senior civil servants in governments of different political parties in India.

❖ Thus it is suggested that the problem is not related to any particular party, but

rather to the underdevelopment of our political system.

❖ The solution, then, lies in political development.

❖ Political development requires strengthening and improving the working of the

various parts of the political system: interest groups, political parties, the electoral

system, mass media, legislatures, the judiciary, and the political and bureaucratic

parts of the executive.

➢ E.g.- The electoral bond scheme data was made public by the order of the

Supreme Court.

➢
❖ Thus if interest groups representing the various interests in society put constant

pressure upon the government, it will become difficult for a minister and a

bureaucrat to collude for making unjust and partisan gains.

❖ If there is internal democracy in the ruling political party, its leaders also will remain

accountable to the rank and file of the party and not try to make selfish gains with

the complicity of members of the bureaucracy.

 3

❖ If the electoral system helps to elect those who can truly represent the people, elected

politicians will tend to be more responsive to the people and are likely to refrain

from misusing the bureaucracy.

❖ If the mass media (the press, television and radio) are healthy and powerful, they will

provide for effective communication between the rulers and the ruled and help to

make the will of the people prevail.

➢ I.e. Cybernetics Theory

❖ Properly functioning legislatures will keep both the politicians and the bureaucracy

under check and make them behave with the realisation of their responsibility and

accountability.

❖ In short, the growth of democratic consciousness and institutions is likely to deal with

the problem of alliance between ministers and civil servants for making selfish gains.

Recent Examples

❖ Supreme Court

➢ Civil servants are required to be "politically neutral" and under the administrative

control of ministers for implementing the day-to-day decisions of the elected

government, the Supreme Court said.

➢ The day-to-day decisions of the Council of Ministers are to be implemented by a

neutral service, under the administrative control of ministers.

➢ "In order to ensure that the functioning of the government reflects the

preferences of the elected ministers and through them the will of the people, it is

essential to scrutinize the link of accountability between the civil service

professionals and the elected ministers who oversee them," the verdict said.
 4

➢ Elaborating on the triple chain of command, the verdict said civil service officers
are accountable to the ministers who in turn are accountable to Parliament or
assemblies and these Houses are accountable to the electorate.

➢ "An unaccountable and non-responsive civil service may pose a serious problem of
governance in a democracy. It creates a possibility that the permanent executive,
consisting of unelected civil service officers, who play a decisive role in the
implementation of government policy, may act in ways that disregard the will of
the electorate" the Supreme Court said.
❖ Viksit Bharat Sankalp Yatra
➢ The government passed an order asking government officials to communicate to
the public about the various central sector schemes.
➢ Under the initial order, the government officials were called "Rath Prabharis".
➢ The government's directive meant that officials - ranging from high echelons like
the joint secretary rank down to the village level - will be assigned roles for public
outreach programmes showcasing the current government's work.
➢ The decision was subject to scathing criticism from various sections of political
opinion.
➢ In response, the government issued a clarification that did away with naming
senior officers nominated to administer the two-month roadshow as 'rath
prabharis'.
➢ Instead, they would be called "nodal officers", thus restoring a bureaucratic
formalism to the role.
➢ With the new nomenclature, the government essentially delinked the role from
the theme of the programme, giving it a more generic ring.
 5

❖ Rules

➢ Rule 3 of the conduct rulebook for the All India Services, comprising the IAS, IPS

and IFoS, mentions maintaining political neutrality as one of the essentials for a

career in the service.

➢ The rule to disengage from political power competitions and participation in

electoral contests (except voting) is further elaborated in rule 5.

➢ Rule 5 mentions non-participation in political activity but does not further define

it.

➢ The ethos of neutrality has been part of bureaucratic systems in the modern

state, even that of the British-era Indian Civil Services set up by Lord Cornwallis

in 1793.

➢ Rule 3(3)(i) requires obedience to the official superior which, in many situations,

may have the political executive at the apex.

➢ So, this may present political contexts in which neutrality and hierarchical

obedience are in a trade-off equation.

✓ This will depend on the individual and the entire thing will come up to Zone

of Indifference, Acceptance Theory and Situational Leadership.

➢ The Conduct Rules cover a wide range of issues, from the ambiguous idea of

personal integrity to more specific actions.

➢ For instance, Rule 3(1) states that "Every member of the Service shall at all times

maintain absolute integrity and devotion to duty and shall do nothing which is

unbecoming of a member of the Service."

➢ This rule is purposefully vague and can be applied to individuals in cases of any

kind of wrongdoing, even if the allegations are not covered under any more

specific rules.

➢ For example, while the promotion of casteism is not covered under any specific

Conduct Rules, casteist behaviour can be interpreted as "unbecoming of a member

of the Service" under Rule 3(1).

 6

➢ On the other hand, Rule 4(1) of the AIS Conduct Rules is more specific.

➢ It states, "No member of the Service shall use his position or influence directly or

indirectly to secure employment for any member of his family with any private

undertaking or Non-Government Organisation."

➢ Rule 5(1) states, "No member of the Service shall be a member of, or be

otherwise associated with, any political party or any organization which takes

part in politics, nor shall he take part in, or subscribe in aid of, or assist in any

other manner, any political movement or political activity."

➢ 5(4) states, "No member of the Service shall canvas or otherwise interfere with,

or use his influence in connection with, or take part in, an election to any

legislature or local authority."

➢ While members can hold personal political beliefs, these rules restrict the degree

to which they can act on them.

➢ Rule 7 of All India Services Rules (AIS) states, "No member of the Service shall, in

any radio broadcast or communication over any public media or in any document

published anonymously, pseudonymously or in his own name or in the name of

any other person or in any communication to the press or in any public

utterance, make any statement of fact or opinion,- Which has the effect of an

adverse criticism of any current or recent policy or action of the Central

Government or a State Government; or which is capable of embarrassing the

relations between the Central Government and any State Government; or which

is capable of embarrassing the relations between the Central Government and the

Government of any Foreign State."

Rule 3 and Rule 7 of the Conduct Rule implicitly advocate for Committed

Bureaucracy.

➢ However, civil servants are allowed to express their opinions on official files and

other official documents and can even talk to the media during field postings.
 7

➢ What they can tell the media, though, is restricted to their job or some specific

event/issue.

➢ Personal beliefs on wider issues are not to be aired.

➢ Once selected for the services, officers receive numerous marriage offers.

➢ Influential families, including big political ones, covet civil servants as husbands for

their daughters and are willing to pay a big price to win their hand in marriage.

➢ A civil servant's job security, status and perks received play a major role in

inflating dowry demands.

➢ Officials from the Department of Personnel and Training (DOPT) even receive

queries to provide contact details of candidates selected.

➢ At the same time, civil servants and their families too are willing to receive a big

dowry.

➢ But as far as rules are concerned, both giving and receiving dowry is strictly

prohibited. Rule 11 (1-A) of the AIS Rules on "Giving or taking of dowry" states,

"No member of the Service shall- (i) give or take or abet the giving or taking of

dowry; or (ii) demand, directly or indirectly, from the parents or guardian of a

bride or bridegroom, as the case may be, any dowry."

➢ In fact, any "big" gift a civil servant receives needs to be reported.

➢ Rule 11(1) states, "A member of the service may accept gifts from his near

relatives or from his personal friends having no official dealings with them, on

occasions such as wedding, anniversaries, funerals and religious functions when

the making of gifts is in conformity with the prevailing religious and social

practice, but he shall make a report to the Government if the value of such gift

exceeds Rs.25,000."

➢ The threshold of Rs 25,000 was last fixed in 2015.

➢ Besides these conduct rules, there is also the Prevention of Corruption Act (PoCA).

➢ However, action on corruption in India is based less on intelligence and more on

complaints.
 8

➢ While anonymous complaints are not entertained, complaints with names and

details of complainants too hardly ever reach the proper forum. Fora where such

complaints can be made include the Central Vigilance Commission, Lokpal and

other investigation agencies.


 1

DAILY
CLASS NOTES
PUBLIC ADMINISTRATION

Lecture - 124
Committed Bureaucracy
 2

Committed Bureaucracy
Committed Bureaucracy

 According to Weber, the main characteristics of a bureaucracy are hierarchy, division

of labour, specialisation, rules and impersonality.

 All these factors make for efficiency.

 At the same time, however, a bureaucracy suffers from alienation.

 According to Marx, the members of bureaucracy suffer from loss of freedom, creativity,
humanity and morality.

 Weber agrees that members of a bureaucracy tend to function like "little cogs, little
men clinging to little jobs".

 Other writers have also pointed out the disadvantages, or dysfunctions, of bureaucracy.

 Thus Merton says that bureaucratic control over officials, requiring that they should
strictly follow rules, induces in them "timidity, conservatism and technicism".

 Hence the problem is how to maintain efficiency while reducing alienation or the
dysfunctions of bureaucracy.

 The solution to this problem lies mainly in improving the commitment of its members.

 In other words, the bad effects of bureaucratic controls can to some extent be reduced
if the employees are imbued with dedication.

 Dedication or commitment is required also because the employees have constantly to

deal with complex problems, many of which are new.

 It is a mistake to think that all bureaucratic activity is routine and monotonous.

 Developmental activity in particular requires forecasting, planning, risk-bearing,

breaking new ground and experimentation.

 E.g.- Demonetisation.

 Hence, innovations have to be made all the time.

 The making of innovations, or creativity, requires emotional commitment.

 3

 Commitment on the part of the members of a bureaucracy leads to effectiveness and

efficiency.

 Effectiveness means fulfilment of the organisational objectives, and efficiency means

doing so with as little expenditure of resources as possible.

 Thus effectiveness and efficiency are aspects of the successful working of the
organisation.

 However, the organisation consists of human beings and it is also important that they
should be happy.

 To some extent, monetary rewards can make them happy.

 This was also reiterated by Abraham Maslow and Frederick Herzberg.

 Equally important, however, is their need for job satisfaction

 Job satisfaction is the intrinsic satisfaction that one gets from doing a job.

 It is obvious that job satisfaction is related to commitment.

 Commitment leads not only to organisational effectiveness and efficiency but also to
the satisfaction and happiness of the employees.

 Hence commitment is significant from both, the organisational and individual points
of view.

1. Commitment to Values and Objectives

 Of our various commitments, the most important is the commitment to values.

(punctuality).

 In the ethical sense, values are ends in themselves: they are sought for their own sake.

 The most important of our values are what are called human values, that is those
values which are sought in all places and times. Examples are truth, compassion,
honesty and courage.

Additional Information

 Sympathy means you can understand what the person is feeling.

 Empathy means that you feel what a person is feeling.

 Compassion is the willingness to relieve the suffering of another.

 4

 While human values are universally sought, there are some values to which importance
is attached in only some countries.

 The latter may be called national values.

 Important human and national values may be mentioned in a nation's Constitution

also.

 Thus the following four human values are mentioned in the preamble to India's
Constitution: justice, liberty, equality and fraternity.

 These may be called human values since in no age or place has their desirability been
questioned.

 Then there are the values of nationalism, democracy, socialism and secularism which
may be called India's national or Constitutional values, since they find explicit or
implicit support in the Constitution.

 While it is expected that everyone everywhere will attach great importance to human
values, citizens of India are, in addition, expected to seek to fulfil the national or
Constitutional values.

 The bureaucracy is expected to attach even greater importance to both these sets of
values than ordinary citizens.

 The bureaucracy acts on behalf of the state or government.

 If the state and government are to have a human face, that is if they are to be seen
as being just and humane, the bureaucracy must show respect to human values.
 5

 Again, since the Constitution lays down the fundamental principles according to which
the state is governed, the bureaucracy, as the agent of the state and the government,
must accord the highest importance to all the values enshrined in the Constitution.

 Apart from human and constitutional values, the bureaucracy must also be committed
to national objectives.

 Some of these may be so important as to be mentioned in the Constitution, while

others are stated in laws.

 Thus Part IV of the Indian Constitution, entitled "Directive Principles of State Policy"
mentions objectives such as the following: securing just and humane conditions of work,
securing a living wage, provision of free and compulsory education for all children, and
the protection of Scheduled Castes and Tribes from social injustice and exploitation.

 However, the Constitution mentions only a few, paramount, objectives, most other
national objectives are stated in laws.

 Their seed may be found in the demands of interest groups, they are presented to the
people for their approval through the manifestos of political parties at election time,
and they are adopted as national objectives after their inclusion in the laws.

 The legislature consists of elected representatives of the people and hence is entitled to
declare the national will.

 Every act of the legislature contains such a declaration: the objectives which the act
seeks to fulfil are mentioned at its very beginning.

 Once objectives are enshrined in the Constitution or the laws, it becomes the duty of
the bureaucracy to faithfully fulfil them by implementing the law.

 The commitment of the bureaucracy to the objectives stated in the laws is thus essential
for the performance of its duties.

 A problem presents itself, however, if we consider the actual role of the bureaucracy.

 A law contains not only the objectives which are sought to be fulfilled but also the
chosen way in which this is to be done.

 This way can be called the policy.

 6

 Now, while the objectives are, more or less, decided through the interaction of political
parties with interest groups and, directly, with the people, policies are chosen on the
basis of the advice of technically trained and experienced members of the bureaucracy.

 E.g.- The state of Karnataka after talking to different groups announced a free bus
service and free electricity for up to 200 units. The implementation of this
programme is done by the bureaucracy.

 The role of the bureaucracy in the formulation of the policy is very important since
often only the bureaucracy knows what will work on the ground.

 The bureaucracy informs the minister about the advantages and disadvantages of each
of the alternative policies and advises on the adoption of the most suitable alternative.

 It is then for the minister to choose the policy: he may accept or reject the advice of
the permanent official.

 In case the civil servant's advice is rejected, he faces the problem of faithfully
implementing a policy which he considers to be bad, or wrong.

 Thus, during the Emergency (1975-77) there were, perhaps, some officials who
considered the policy of using compulsion for family planning as being a bad one, since
it would have achieved the 'desired objective.

 Still, they were expected to faithfully enforce the measures for compulsion.

 There may be differences of opinion between ministers and civil servants in regard to
the policy to be adopted.

 In such a situation, civil servants are expected to faithfully implement the policy chosen
by ministers.

 In other words, the bureaucracy is expected to be committed to a policy even if it

considers it to be faulty.

 Further, it is expected to become committed to a new set of policies on a change in

government.

 It comes in for criticism if the expected change in its commitment does not come
about.
 7

 Paul Appleby has pointed out that the civil service in Britain is criticised for not being
as responsive to policy shifts as it should be.

 The justification for expecting the bureaucracy to be committed to the policies of the
government of the day is inherent in democracy.

 It is the elected representatives of the people, and not civil servants, who are thrown
out of power, and office if the policies of the government are not liked by the people.

 The ministers are responsible to the people, hence they are justified in choosing policies
which they think the people want.

 The function of the civil servant is to advise the minister freely and frankly in the
formulation of the policy, however, if the policy is finally chosen by the minister, the
civil servant must implement it faithfully.

 If the policy is proved to be wrong, the minister is likely to be punished by the people
at the time of election.




 1

DAILY
CLASS NOTES
Public Administration

Lecture - 125
Committed Bureaucracy
(Part 02)
 2

Committed Bureaucracy (Part 02)

2-Commitment To Service of People

❖ The bureaucracy's important role in policy formulation and implementation gives it a

lot of power, it participates in deciding who should get what, when and how, and then

goes ahead to enforce these decisions.

❖ In developing countries, particularly, the power of the bureaucracy is considerable since

the other parts of the political system are weak.

❖ Hence while the civil servant is, ideally, expected to function as a "servant" of the

people, in reality, he may turn out to be a master.

❖ In countries like India, this problem becomes worse due to the heritage of the colonial

past, when the civil servant used to be the symbol and agent of the foreign power.

❖ After independence also, a cultural and social chasm continued to exist between the

mostly non-literate and poor people and the higher bureaucrat who often dresses,

speaks, and even thinks, like a foreigner.

❖ In a democracy, however, the people are expected to exercise real power, and the

bureaucracy is expected to remain under the control of the elected politicians and serve

the people.

❖ Hence commitment to providing service to the people is essential for the proper

performance of the bureaucracy's role.

❖ The bureaucracy's power, derived from its role in policy formulation and

implementation, is used also to fulfil its own interests.

❖ In developing countries, the bureaucracy is very powerful, the result often is that the

bureaucracy tends to fulfil its own interest even at the cost of the interests of the

people.

➢ I.e. the Rent-Seeking Behaviour

❖ Thus the extra profit (benefits apart from salary) remains high in most public

undertakings in India even if they lack effectiveness and run at a loss.

 3

❖ High officials play an important role in the determination of their own emoluments

and try to protect their interests by maintaining the emoluments at a high level.

➢ I.e By creating work for the bureaucracy

❖ Service of the people requires that where there is a conflict between their own interests

and those of the people, they should give priority to the people's interests.

3- Commitment to Profession

❖ When a professional joins the bureaucracy, he/she must continue to remain committed

to the ethics and the etiquette of his/her profession, in addition to his/her commitment

to the objectives of his/her organisation.

❖ Thus even if his/her position in the organisation confers a high status upon him/her,

he/she must not allow it to interfere with his/her professional duties.

Neutrality and Commitment

❖ Compatibility of Neutrality and Commitment

➢ In recent years there has been a lot of discussion in India about the nature of

neutrality and commitment, and particularly, whether the bureaucracy can have

the two qualities at the same time.

➢ Obviously, if commitment is taken to mean commitment to a particular political

party or to its leaders, it becomes antithetical to neutrality.

➢ However, commitment to human and constitutional values and national objectives,

to service of the people, and to professional ethics and etiquette, is not antithetical

to neutrality between classes, cultural groups and political parties.

➢ Indeed, commitment and neutrality reinforce each other if they are of the right

type.

➢ Thus commitment to the human value of compassion and to the constitutional

value of fraternity are likely to induce between classes and cultural groups

neutrality respectively.

➢ Similarly, commitment to national objectives is likely to induce neutrality between

political parties.

➢ Hence the effort should be to induce commitment and neutrality of the right kind.
 4

❖ Inculcation of Neutrality and Commitment

➢ Inculcation of desirable attitudes in the bureaucracy requires attention to all aspects

of personnel administration.

➢ The competitive examination for selection can include tests of attitudes towards

human and constitutional values and national objectives on the one hand, and

towards classes, cultural groups and parties on the other.

➢ Such tests can indicate whether the candidate has properly benefited from a liberal

education and has a broad mental outlook, or has merely committed materials to

memory for passing examinations.

➢ After entry, desired attitudes of neutrality and commitment can be inculcated in

the members of the bureaucracy through training.

➢ Various incentives, such as desired posting, visits abroad and quicker promotion,

can be provided to motivate employees to develop the right attitudes.

➢ Finally, control by the political executive and the legislature can ensure that they

do not deviate from the norms.

➢ Institutions like the Public Service Commission, Courts and Administrative Tribunals

should ensure that the exercise of control by political authorities is done fairly and

justly.

➢ Further, in a democracy, the people have the right and the duty to see that all

institutions function properly.

❖ Special Agencies and Recruitment Methods

➢ Special agencies and methods of recruitment can be used for important areas

requiring a high degree of both neutrality and commitment.

➢ One such special agency already in use is the autonomous university.

➢ Higher education and research constitute an area in which commitment and

neutrality are both of great importance.

➢ If commitment is not there, the pursuit of knowledge lacks excellence; if neutrality

is not there education becomes merely indoctrination.

 5

➢ The autonomous university aims at achieving both; it also retains the main

advantage of bureaucratisation, namely efficiency, while avoiding the dysfunctions

flowing from bureaucratisation due to its autonomy.

➢ Max Weber has noted that staff members of a university constitute a bureaucracy.

➢ The characteristics of hierarchy, division of labour, specialisation, rules and

impersonality are to be found in a university also, and hence it has efficiency flowing

from these factors.

➢ At the same time, its autonomy permits its staff members to remain committed

as well as neutral, since the rules of conduct applicable to government servants do

not apply to the employees of a university.

➢ There may be other areas requiring a high degree of both neutrality and

commitment.

➢ Perhaps one such area is that of rural development.

➢ The governmental programme of Community Development failed to fulfil its

objectives.

➢ Some of the deficiencies of the Community Development Programme may be traced

to the lack of a committed cadre.

➢ This is reflected in all aspects of rural development: most professionals detest

serving in rural areas and at the first opportunity apply for transfer.

➢ Appleby has suggested the recruitment of committed cadres on a flexible and

political basis for such new programmes, and their conversion later into career

bodies.

➢ Perhaps this, and similar suggestions, can be experimented with, after introducing

modifications appropriate to the country concerned.

✓ I.e. Cultural Filtering Lens.

 6

➢ Developing countries, where the government must play a leading role in bringing

about development, can postpone such experimentation only at great peril

(danger); for, underdevelopment increasingly tends to be associated with

phenomena like widespread disturbances and violence

Conclusion

❖ For the first few decades after Independence, there was only one dominant political

party, the Congress, and the social backgrounds of the politicians and civil servants

were not that different.

❖ However, even in those days, civil servants had affiliations to politicians but mostly

within the party.

❖ The idea of a "committed bureaucracy" was floated by Indira Gandhi thus striking at

the very rationale of neutrality.

❖ This culture was later endorsed by later Prime Ministers and Chief Ministers.

❖ Former Chief Minister Jayalalitha was known for casting out civil servants who held

key positions during the DMK regime.

❖ Post LPG

❖ In post-liberalised India, the All-India Services (AIS) were ordained the role of a

facilitator, and not necessarily one of a regulator.

❖ This took the sheen off AIS and its pre-eminence in economic decision-making is being

encumbered.

❖ Besides, in the past three decades, regional parties have taken over the reins at the

State level and the immediacy of the next election drove the agendas of these parties

in power.

❖ The AIS officers are made to toe the line of the political bosses.

❖ The concept of a "committed bureaucracy" is being encouraged subtly.

❖ The AIS officers, who always had a ringside view of this process in the Licence-Quota-

Permit Raj, started collaborating with political masters.

 7

❖ The percentage of officers who are in this collusive collaboration is increasing by the

day.

❖ The parties in power bestow favouritism on civil servants loyal to them.

❖ As is evident, from the recent incidents even “Lady Officers" have joined the party.

❖ It is no more true that women officers are more honest, they have made news for the

wrong reasons.

❖ The cardinal principles of civil service, viz. professionalism, anonymity, integrity and

neutrality, are under threat.

❖ The chains with which the AIS binds itself are self-acquired, the links were non-existent

at the entry, the links are slowly forged and the chains formed.

❖ The process is full of compromises, both intellectual and fiscal.

❖ Civil servants' taking to politics is a detestable phenomenon.

❖ One even rose to become a Chief Minister.

❖ This trend severely compromises neutrality during their tenure in service.

❖ Traditionally, civil servants were sent as Governors, post-retirement.

❖ Now even for this honour civil servants are cultivating politicians unabashedly.

(unashamed).

❖ Most of the evils perpetuated by 'to-retire' civil servants are their craving for post-

retirement sinecures.

❖ Ronald Reagan once said, "Politics is supposed to be the second oldest profession; I have

come to realise that it bears a very close resemblance to the first."

➢ The first profession in the world is “Prostitution”

❖ Vinod Mehta, in his book “The Lucknow Boy”, pays tribute to E.A.S. Sarma, who fought

the PMO to uphold steadfastly what, he thought, was in the larger interest of the

nation.

❖ In Andhra Pradesh, some officers who withstood the onslaught of a former CM are

breathing easy, and their successors who obeyed the 'diktats' of the former CM are

under the CBI scanner.

 8

❖ The Centre initiated major penalty proceedings against former West Bengal Chief

Secretary Alapan Bandyopadhyay for alleged misconduct and misbehaviour

❖ Mr Bandyopadhyay came into the limelight when he did not attend a meeting chaired

by Prime Minister Narendra Modi in Kolkata in the wake of Cyclone Yaas.

❖ He was issued a show cause notice under the Disaster Management Act. Mr.

Bandyopadhyay however resigned from service but was subject to disciplinary

proceedings initiated by the Centre.

❖ Noam Chomsky in ‘Deterring Democracy’ predicted that the unholy businessman-

politician nexus will undermine democracy.

➢ Thus here there is a need for Neutral and Committed bureaucracy.


 1

DAILY
CLASS NOTES
PUBLIC ADMINISTRATION

Lecture - 126
Generalist vs Specialist
 2

Generalist vs Specialist
Conclusion for Neutrality and Commitment (Continued..)
 The Centre initiated major penalty proceedings against former West Bengal Chief
Secretary Alapan Bandyopadhyay for alleged misconduct and misbehaviour
 Mr Bandyopadhyay came into the limelight when he did not attend a meeting chaired
by Prime Minister Narendra Modi in Kolkata in the wake of Cyclone Yaas.
 He was issued a show cause notice under the Disaster Management Act. Mr.
Bandyopadhyay however resigned from service but was subject to disciplinary
proceedings initiated by the Centre.
 Noam Chomsky in ‘Deterring Democracy’ predicted that the unholy businessman-
politician nexus will undermine democracy.
 Thus here there is a need for Neutral and Committed bureaucracy.
 No party is wholesome, now, without the media.
 The politician-business-media house nexus, with its tentacles in the bureaucratic
network, is a “heady mix”."
 A few high-profile cases against the AIS get so much adverse publicity that it becomes
a feed-forward mechanism for the judiciary to indulge in more activism. Ralph Waldo
Emerson said, "The only person you are destined to become is the person you decide
to be."
 The destiny of civil servants is in the conduct of their own brethren.
 Unless civil servants steadfastly return to the old edicts of professionalism, anonymity,
integrity and neutrality, the evanescent goodwill will be completely eroded.
 3

 The need of the hour is silent hard work.

 One should leave the system unheard, unsung and unwept and while in the system one
should be free, fair and frank.
 The civil servants we wish 'to be or not to be' are within us.
Generalist vs Specialist
 The biggest question confronting the IAS is its lack of specialisation.
 The IAS was modelled on the colonial era Indian Civil Service as a generalist service to
deliver the core functions of the state – collect taxes and maintain law and order.
 Fused Role as said by F.W. Riggs

 The challenge of development in a large, populous and impoverished country was

probably not on the radar screen when the IAS was designed.
 However, it soon became apparent that this development task would become central
to public administration, especially at the state level.
 The IAS adapted to these changing dynamics by retooling itself as a "development
agent", and on the whole acquitted itself quite creditably.
 As economic reforms deepened and the state started yielding to the market, the nature
of administration changed, demanding domain knowledge, especially at the policy level.

 The private sector's example is instructive.

 4

 There, young professionals are typically recruited in specialised areas and they rise to
generalist leadership positions negotiating their way up the hierarchy.
 What we have in the public sector is in fact its reverse: Young recruits join the IAS as
generalists, acquire breadth and then go on to acquire depth.
 This raised questions about the role and relevance of the IAS.
 Two views emerged.
 The first is the argument that the best leadership is provided by generalists who have
a breadth of understanding and experience.
 The first decade of an IAS' career is typically spent in field postings with responsibility
for policy execution which hones her administrative and people management skills,
apart from imparting an invaluable understanding of ground realities.
 From there an IAS graduate to policy formulating positions, at the central and state
levels.
 This transition provides the ideal marker for beginning to specialise combining the soft
skills they have learnt with the hard skills of a specialised domain.
 Specialists, no matter how competent, tend to have tunnel vision and are not equipped
to take a broader view.
 Sure, domain knowledge has to feed into policy-making, but that can be accomplished
by domain experts advising the generalist leader in decision-making.
 In this worldview, a good IAS officer can head the Department of Agriculture as
competently as she would the Department of Shipping.
 The opposing view is that the IAS, as generalists, tend to over-weigh their experience
of the process and form over understanding of policy content.
 I.e. Formality - Rules - Procedure - Protocol
 Only someone who has learnt the subject from the trenches, as it were, can provide
competent leadership in a functional area.
 E.g.- UIDAI (Aadhar)
 Having the IAS head specialised areas is an inefficient arrangement.
 This debate has frowned upon moderation.

 But there is no need to look for binary solutions.

 5

 The complex and interconnected nature of policy-making demands that specialist

expertise has to go with generalist experience.

 Notably, the Constitution Review Commission 2002 suggested the "need to specialise
some of the generalists and generalise some of the specialists".

 The Parliamentary Standing Committee on Personnel, Public Grievances, Law and

Justice (2020) suggested grouping ministries into clusters and assigning civil servants
with domain-specific knowledge to specific clusters.

 The Committee also suggested that the government bring 'specialised generalists'
who have domain-specific knowledge into the civil services to increase the efficiency
of the bureaucracy.

 "Officers should be assigned to a particular cluster based on their knowledge,

competency, interest and inclination," the report stated.

 The committee in its report said "reforming of the administration" is the need of
the hour.

 In this context, the panel said India needs

'specialised generalists' in civil services, who have
domain knowledge and work experience in a
particular field, and not either a generalist or a
specialist.
 6

 The panel suggested grouping ministries into small clusters such as rural clusters,
social clusters and financial clusters, and deputing civil servants with suitable
domain knowledge and experience to a particular cluster.

 "Arbitrary postings can be debilitating and can affect the career trajectory of civil
servants and the general administration," the panel stated.

 The government's decision to recruit talent laterally into the civil services was guided
by the logic that IAS officers are 'generalists' who hop from one ministry to another
through their careers and do not necessarily have expertise in any area.

 Lateral entry into administrative services is not a new idea.

 It is a widely applied practice, with the governments of the US, the UK, Australia and
New Zealand as well as several members of the European Union doing the same.

 Even in India, the idea was proposed as early as 2001, when the Union Public Service
Commission (UPSC) report of the civil services examination review committee, chaired
by noted economist Yoginder Alagh, recommended lateral entry into the middle and
top tiers of the bureaucracy.

 Then, in 2005, the second Administrative Reforms Commission (ARC), chaired by

Veerappa Moily, recommended that an institutionalised, transparent process be
established for lateral entry into central and state government administrative
positions.

 For instance, in the Cyber Crime Coordination Centre, there is a need for domain
experts and not Generalists.

 The year after that, Justice B.N. Srikrishna-headed sixth central pay commission report
reiterated the recommendation, stating that lateral entry could also 'ensure entry and
retention of talent in the civil services'.

 Experts say the move by the current government to opt for lateral entry was triggered
by Niti Aayog's 2017 report, which underlined the urgent need to induct specialists
into the administrative systems.

 It's hard to argue with the fact that the Indian administrative ecosystem is heavily
staffed by generalists and that specialists are becoming increasingly important in
several functions of government.
 7

 For instance, specialisations like big-data analytics are crucial to good governance. For
example, it does not matter how wide the net of Aadhaar is spread if the “babus”
responsible for those databases cannot come to grips with it.
 Domain expertise is no longer a bonus – it is a requirement.
 The colonial-style bureaucracy India still labours under, the so-called 'steel fortress', is
a major impediment to progress.
 In a 2016 study conducted by the Carnegie Endowment for International Peace, titled
'The IAS Meets Big Data', the authors write:
 "India's economy has grown rapidly in recent years, but the country's bureaucratic
quality is widely perceived to be either stagnant or in decline", and that "the IAS
is hamstrung by political interference and outdated personnel procedures, has a
mixed record on policy implementation, and is in need of urgent reform."
 Lateral entry was also presented as a solution to the dire shortage of senior
bureaucrats, especially in the IAS, which has only 5,004 such officers, against an
authorised strength of 6,500.
 This shortage also affects other
government sectors, including in the
police and judiciary.
 It is especially acute in the Hindi
heartland states, including Bihar, Uttar
Pradesh, Madhya Pradesh, Chhattisgarh,
Jharkhand and Rajasthan.
 In India's most populous state, Uttar
Pradesh, the overall shortage is 43 per
cent, according to a 2016 study.
 Those who advocate 'minimum
government' (New Public Management)
often describe the bureaucracy as
'bloated', arguing that vacancies do not
need to be filled because the administrative services are already overstaffed.
 This disagreement is a big reason for the slow progress in adopting lateral entry
as a method of filling government posts.
 8

 India's bureaucracy has long been criticised for being obstructionist, and that it has
often been an impediment to implementing even well-intended policy initiatives.

 Besides, bureaucratic procedures are cumbersome, slow, inefficient and trapped in a

file-pushing culture that encourages corruption.

 Critics point out that a bureaucracy manned by generalists is like a slow-moving bullock
cart in an era when information travels at the speed of light.

 The status quoists in the bureaucracy see red.

 I.e. anger and resistance against later entry.

 It is disquieting, after all, for an entrenched force to see its 'steel fortress' – even a
crumbling one - - being stormed by plebeians (commoners).



 1

DAILY
CLASS NOTES
PUBLIC ADMINISTRATION

Lecture - 127
Generalist vs Specialist
(Part - 02)
 2

Generalist vs Specialist (Part - 02)

Data related to the Vacancies

 However, many civil servants disagree hotly with the wisdom of lateral inductions,
arguing that the in-field experience and knowledge of government processes,
administrative hurdles and workarounds that IAS officers bring to the table are a form
of expertise that private sector professionals cannot possibly have.
 External talent cannot bridge the gap between policymaking and ground-level
implementation the way career civil servants can.
 3

 Critics from within the bureaucracy also allege that lateral entry is unconstitutional,
contrary to the public good and is likely to bypass the system of quotas meant to
ensure that scheduled castes and scheduled tribes have appropriate levels of
representation.

Current Trend

 Inducting private talent in a somewhat cloistered (congested) government environment

is a work in progress.

 Its roots go back to the 1980s, the heyday of the Rajiv Gandhi administration, but its
strongest manifestation can be felt now, with the Narendra Modi government
determined to reform the bureaucracy, thwarted and frustrated by the officialdom's
slow pace of implementing government programmes and plans, which otherwise sound
great on files.

 In September 2020, the BJP government embarked on its most ambitious project thus
far to reform the civil bureaucracy.

 The Prime Minister, at a Cabinet meeting, approved the launching of a Capacity

Building Commission.

 Its objectives were

 to "assist the PM Public Human Resources Council in approving the Annual Capacity
Building Plans;

 to exercise functional supervision over all Central Training Institutions dealing with
civil services capacity building;

 to create shared learning resources, including internal and external faculty and
resource centres;

 to coordinate and supervise the implementation of the Capacity Building Plans

with the stakeholder departments;

 to make recommendations on standardization of training and capacity building,

pedagogy and methodology;

 to set norms for common mid-career training programmes across all civil services
and to suggest policy interventions required in the areas of HR Management and
capacity building to the government.
 4

 The man to head this august body is no bureaucrat.

 An announcement on April 1, said that the Quality Council of India (OCI) chief, Adil
Zainulbhai, has been appointed as the chairperson of the Capacity Building
Commission, set up under the government's ambitious `Mission Karmayogi' for
introducing major reforms in bureaucracy.
 On the same day, Mallika Srinivasan, Chairman and Managing Director of Tractors
and Farm Equipment (TAFE) Limited, was appointed as the chairperson of the Public
Enterprises Selection Board (PESB).
 This is the first time that a private sector specialist has been appointed as the head of
the PESB, responsible for the appointment of top management posts in the Central
Public Sector Enterprises (CPSEs).
 In April 2019, for the first time, nine private sector experts were selected for
appointment as Joint Secretaries in central government departments under the lateral
entry template.
 Those entering through lateral channels are likely to face stiff resistance from IAS
officers when it comes to protecting their turf.
 For the lateral entrants, the other disadvantage is that the government machinery is
so vast that it could take months, even years, to figure out how things move.
 There is no doubt that the IAS is hamstrung by political interference and outdated
personnel procedures.
 The government must adopt safeguards to promote accountability while protecting
bureaucrats from political meddling.

District Collector
 Introduction
 A District Collector is also called a Deputy Commissioner in Karnataka, Assam,
Punjab and Haryana and a District Magistrate in West Bengal and Uttar Pradesh.
 The office of a District Collector is called the Collectorate.

 A district Collector is the head of the district administration and the official agent
of the state government in the district.

 The Office of a District Collector is unique as it has no parallels in the administrative

systems of other countries except the Office of Prefect in France.
 5

 In France, the Prefect is the Head of the Department (i.e. the largest territorial
unit of the administration in France) and an official agent of the Central
Government.
 The Office of Prefect is called the Prefectorate.
 French Prefect is the nearest analogue of the District Collector in India.
 The Revenue and General Administration Department and the Registration
Department of the district administration are directly under the charge of the
District Collector.
 His supervision and control also extend to all other departments of district
administration.
 He is a multipurpose functionary around whom revolves the entire administration
of the district.
 The District Collector belongs to the General Administration Department of the
State Government (i.e. the State Secretariat) which is headed politically by the
Chief Minister and administratively by the Chief Secretary.
 The Collector is controlled and supervised by the Divisional Commissioner.
 Evolution
 The district is the basic geographical unit of administration in India.
 Article 233 mentions the term district under "district judges"
 However, the 73rd and 74th Constitutional Amendment Acts of 1992 included
the term district in the Constitution at many places under Part IX and IX A, which
deal with Panchayats and Municipalities respectively.
 "District Administration is the total management of public affairs within this unit...
District Administration is that portion of public administration which functions
within the territorial limits of a district" - S.S. Khera
 During the Mughal rule, a district was called Sarkar and it was headed by Karori–
Faujdar, a military officer directly under the control of Subedar.
 The present-day district administration and the office of District Collector came
into existence in India under the British East India Company.

 This office was created in 1772 by Warren Hastings, the then Governor General
of India.
 6

 In 1787, the Collector was made responsible for civil justice and magistracy in
addition to revenue collection.
 He was a very powerful functionary and was described as a 'Little Napoleon'.
 The Indian Statutory Commission, 1930 (the Simon Commission) remarked that
the District Collector "is in the eyes of the inhabitants, the government” while
Ramsay McDonald compared the District Collector to a tortoise on whose back
stood the elephant of the Government of India. Lord Wavel said that the English
would be remembered not by this institution that, but by the ideals left behind in
the form of the office of the District Collector.
 After Independence, the office of the District Collector suffered in terms of status
and authority due to the following factors:
 Expansion in the sphere of governmental activities and functions due to the
replacement of the 'police state' by the 'welfare state'.
 Change in the form of government, that is, adoption of parliamentary
government both at the Centre and in states.
 Changes in ends and objectives of the government, that is, welfare orientation
replaced colonial exploitation.
 The emergence of Panchayati Raj as a unit of local administration
 Separation of judiciary from the executive.
 Increasing political consciousness among the people.
 Emergence and growth of a large number of departments in the district.
 I.e. Increasing Differentiation
 Replacement of ICS (Imperial Civil Service) by the IAS.
 Role and influence of pressure groups and political parties.
 Rise of the Commissionerate system of law and order administration in big
cities.



 1

DAILY
CLASS NOTES
Public Administration

Lecture - 128
District Collector
 2

District Collector
Roles and Functions

❖ Revenue Administration

➢ Historically, the collection of revenue has been the first charge of the District

Collector.

➢ This is the primary function.

➢ He is the head of revenue administration in the district.

➢ The Collector is responsible for:

✓ Collecting land revenue

✓ Collecting other government dues.

✓ Distributing and recovering Taccavi loans (short-term loans given to farmers).

✓ Maintaining land records

● Because of the digitalisation of land records, this function has been reduced.

✓ Collecting rural statistics

✓ Acquiring land for the purpose of colonisation, industry, slum clearance, capital

construction, etc.

✓ Implementing land reforms

✓ Looking after the welfare of farmers.

✓ Assessing losses of crops during natural calamities

● Due to GPS technology, real-time access to losses is done.

✓ Supervising treasury and subtreasury

● Salaries, Pensions, General Administration expenses etc.

✓ Enforcing Stamp Act

✓ Paying rehabilitation grant

✓ Managing government estates

✓ Hearing revenue appeals against the orders of lower authorities.

✓ Paying Zamindari Abolition compensation

 3

❖ Law and Order Administration

➢ Before Independence, the District Collector (DC) acted as both Executive Magistrate

and District Magistrate.

➢ As an Executive Magistrate, he was responsible for the maintenance of Law and

Order Administration and as a District Magistrate, he was responsible for the trials

of civil and criminal cases.

✓ I.e. Fused Role

➢ After Independence, under Article 50 of the Directive Principle of State Policy, the

executive has been separated from the judiciary.

✓ I.e. Prismatic Role.

➢ As a result of it the role of the collector as judicial magistrate ended.

➢ This function has been handed over to the district judge who works under the

direct control of the High Court.

➢ The DC in his capacity as the District Magistrate is ultimately responsible for the

maintenance of law and order.

➢ The district police force head, the Superintendent of Police, is under the control,

supervision and direction of the district magistrate.

➢ The Indian Police Act of 1861 vests the police administration of the district in the

District Superintendent of Police (SP) under the control of the District Magistrate

(DM).

➢ Therefore there is a system of dual control of law and order administration in the

district - control by the DM and control by the departmental line headed by the

DGP.
 4

➢ As the DM, DC performs the following functions:

✓ Control and supervise the subordinate magistracy.

✓ Issue orders when there is a threat to public peace and order under Section

144 of the CrPC.

✓ Dispose of all the petitions received from the government and others.

✓ Release prisoners on parole

✓ Inspect the jails.

✓ Submit an annual criminal report to the government.

✓ Grant, suspend or cancel licenses for arms, hotels, explosives, petroleum and

others.

✓ Supervise and control local bodies.

✓ Control and direct the action of district police.

✓ Enforce the Entertainment Tax Act and Press Act.

✓ Call the Armed forces to aid and assist the civil administration in dealing with

any abnormal situation in the district.

✓ To prosecute offenders under the Factories Act and Trademark Act.

✓ Order disposal of unclaimed property

✓ To recommend schemes for the development of forests.

❖ Development Administration

➢ As British India was a police state it was more concerned with regulation rather

than development.

➢ After independence and with the initiation of development planning, the

developmental role of the Collector became significant.

➢ He became an important figure in the implementation of development

programmes.

➢ But even with regard to development administration, two patterns have emerged.
 5

➢ In most of the States, like Tamil Nadu and Rajasthan the Collector is responsible

for both development and regulatory administration.

➢ He looks after revenue, magisterial and developmental activities in the State.

➢ All district-level officers engaged in the implementation of developmental

programmes function under the supervision, guidance and leadership of the

collector.

➢ Even though, in technical matters, they function under the control and supervision

of their respective departments, in the actual implementation of the development

programmes they are placed under the administrative control of the District

Collector.

➢ In many states, the collector is also designated as the District Development Officer

and is authorised to write the Annual Confidential Report of the district-level

officers engaged in the development administration.

➢ In the pattern found in Gujarat and Maharashtra, the Collector is made responsible

only for regulatory administration.

➢ The Development Administration in these states is the responsibility of the Zila

Parishads.

➢ All the District-level officers engaged in the implementation of the development

programmes function under the administrative control and supervision of the Zila

Parishads.

➢ For this purpose, the Zila Parishad has appointed the District Development Officer

(or chief executive officer) who also belongs to the IAS.

 6

➢ By this arrangement, the Collector is relieved of his responsibility in the

development field.

➢ The 73rd Constitutional Amendment Act of 1992 and the Panchayati Raj Acts of

1993 and 1994 of various states have reduced the role of the Collector in

development administration.

❖ Other Powers and Functions

➢ He acts as the Chief Returning Officer for elections to Parliament, State Legislative

Assemblies and Local Bodies.

➢ He acts as the District Census Officer. He conducts the census operations once in

10 years.

➢ He acts as the Chief Protocol Officer in a district.

➢ He prepares the annual administrative report of the district and submits it to the

State Government.

➢ He acts as the official representative of the State Government during ceremonial

functions in the district.

➢ He acts as a buffer between the citizens and the administration.

➢ He supervises the municipal administration in the district.

➢ He acts as the Public Relations Officer of the District.

➢ He acts as the crisis administrator-in-chief during natural calamities and other

emergencies.

➢ He deals with personnel matters of the district staff.

➢ He is responsible for civil supplies - food and other essential commodities.

➢ He handles work pertaining to civil defence.

➢ He maintains liaison with military authorities and looks after the welfare of both

serving and retired members of the armed forces.

➢ He acts as the Grievance Redressal Officer and takes regular tours of the District.

This highlights the importance of the interaction between the Collector and

common people
 7

➢ He makes arrangements for the training of different classes of probationers or

trainees.

➢ He facilitates interaction between civil society and state government at the district

level.

➢ He coordinates the activities of other agencies/departments at the district level.

Changing Role of the District Collector

❖ Second Administrative Reform Commission Observations/Recommendations

➢ With the constitutionally mandated establishment of Panchayati Raj Institutions

(PRI) and municipal bodies, it has become necessary to re-examine and redefine

the role of the district administration.

➢ It is imperative that the devolution of decision-making to local levels should face no

impediments.

➢ It is equally imperative that the unique administrative experience, expertise and

credibility of the office of the district collector built up over a period of two hundred

years is properly utilised.

➢ Though the recent amendments in the Police Acts by various States have removed

the clause which placed the police of the district under the general control and

direction of the district magistrate, the collector still continues to be recognised by

people as the overall in-charge of law and order in his jurisdiction.

➢ While there is no doubt in anybody's mind that the role of collector has changed a

lot since its colonial days the fact that "Collector is the king/queen of a district"

continues to hog the minds of the individuals who occupy the post and the general

public.
 8

➢ While rewards of developmental works are lauded a little late, punishments for

high-handedness are met out swiftly.

❖ Shailendra Singh, former collector of Chhatarpur, and Amar Bahadur Singh, former

additional collector and CEO of Chhatarpur Zila Panchayat were sentenced to seven

days simple imprisonment for contempt of court by a single bench of Madhya Pradesh

High Court which was stayed later by a Division Bench.

❖ In the echelons of India's vast bureaucracy, postings always carry an element of

punishment or reward.

❖ It is a tool political masters wield to intimidate and control officers, especially those

serving in foreign, administrative, police and revenue services.

❖ These unofficial and unwritten rules have spawned terms such as ‘garage postings’,

‘suitcase officers’, ‘Kala Pani' etc.

❖ The Northeast, especially, has a bad rap.

❖ The people in the Northeast call officers from central India suitcase officers.

❖ They live out of their suitcases hoping they will be transferred out soon.

❖ Even though there is an appointments committee at the Centre and committees under

the chief minister's office (CMO) in the states, postings are assigned as per the whims

of the ruling dispensation to put an officer in place.

❖ The process of transfers, removals and postings without any set rules is generally seen

as a 'shake-up, but it cuts both ways.

❖ To penalise an officer, governments often send them to a remote or less developed

region to teach them a lesson.

❖ But, in the process, it creates an adverse perception of the specific location.

❖ Ministry of Home Affairs transferred two IAS officers, a husband and wife, Senior IAS

officer Sanjeev Khirwar was transferred to Ladakh, and his wife Rinku Dugga was sent

to Arunachal Pradesh after a media report claimed they shut down a stadium early

to walk their dog.

❖ Punishment transfers tend to be ad-hoc and arbitrary.

 9

❖ However, with social media outrage over the misconduct of IAS officers intensifying,

the government is not left with much choice.

❖ Transfer is the only option.

❖ It almost seems like the exercise of Public Choice Theory (PCT) although in a different

way.

❖ Interestingly enough the moment the officer in question is transferred the public

outrage on social media platforms reduces.

❖ So in a way, NPS (New Public Service) and PCT can decide the fate of the duration of

tenure and postings of the District Collector.

❖ As far as unjustified transfers and postings are concerned aggrieved officers can

approach the Central Administrative Tribunal (CAT).

Central Administrative Tribunal (CAT)

❖ Mohsin, a 1996 batch IAS officer from Karnataka cadre, was suspended on April 16,

2019 by Election Commission of India (ECI) for checking Prime Minister Modi's

helicopter in Odisha's Sambalpur in "violation" of norms for dealing with SPG (Special

Protection Group) protectees.

❖ While allegations against him are that he conducted a search on PM Modi's chopper in

Sambalpur in Odisha, Mohsin claimed that he was not even present at the helipad

when the chopper landed.

❖ On April 25, the CAT stayed the ECI order, reinstating him to his post as a secretary

in the Backward Classes Welfare Department in Karnataka.

❖ In its order, the CAT said that “during an election process, while reasonable assurances

of protection and security must be made available to SPG protectees, it cannot be said

that they are eligible for anything and everything,"


 1

DAILY
CLASS NOTES
PUBLIC ADMINISTRATION

Lecture - 129
Central Administrative
Tribunal
 2

Central Administrative Tribunal

Introduction

 The growth of administrative tribunals both in developed and developing countries has
been a significant phenomenon of the twentieth century.

 In India innumerable tribunals have been set up from time to time both at the centre
and the states, covering various activities such as trade, industry, banking, taxation
etc.

 The question of the establishment of administrative tribunals to provide speedy and

inexpensive relief to government employees relating to grievances on recruitment and
other conditions of service had been under consideration by the Government of India
for a long time.

 Due to their heavy preoccupation, long pending and backlog of cases, cost and time
factors, judicial courts could not offer the much-needed remedy to the government
employees, with regard to their disputes with the government.

 The dissatisfaction among the employees, irrespective of the class, category or group
to which they belong, is the direct result of the delay in their long pending cases or
cases not attended to properly.

 The aspect of Job dissatisfaction was emphasised by Frederick Herzberg in his

“Two-Factor Theory”.
 3

 Hence, a need arose to set up an institution, which would help in dispensing prompt
relief to the aggrieved employees who perceive a sense of injustice and lack of fair play
in dealing with their service grievances.

 This, it has been felt would motivate the employees better and raise their morale which
in turn would increase their productivity.

 The First Administrative Reforms Commission (1966-70) recommended the setting

up of Civil Service Tribunals to function as the final appellate authority, in respect of
government orders inflicting major penalties of dismissal, removal from service and
reduction in rank.

 As early as 1969, a Committee under the chairmanship of J.C. Shah had recommended
that having regard to the very large number of pending writ petitions of the employees
in regard to the service matters, an independent tribunal should be set up to exclusively
deal with the service matters.

 The Supreme Court in 1980, while disposing of a bunch of writ petitions observed that
the public servants ought not to be driven to or forced to dissipate their time and
energy in the courtroom battles.

 The Civil Service Tribunals should be constituted which should be the final arbiter in
resolving controversies relating to conditions of service.

 The government also suggested that in the first instance, public servants might
approach fact-finding administrative tribunals.

 The matter came up for discussion in other forums also and a consensus emerged that
setting up of Civil Service Tribunals would be desirable and necessary, in public interest,
to adjudicate the complaints and grievances of the government employees.

 The Constitution of India was amended to enable the setting up of Civil Service
Tribunals (through the 42nd Amendment Act, Article 323-A).

 With a view to easing the congestion of pending cases in various High Courts and other
courts in the country, Parliament enacted the Administrative Tribunals Act 1985,
which came into force in July 1985.
 4

 This Act empowered the Parliament to provide for adjudication or trial by

administrative tribunals, of disputes and complaints with respect to recruitment and
conditions of service of persons appointed to public service and posts in connection with
the affairs of the union or of any state or local or other authority within the territory
of India or under the control of the government or of any corporation owned or
controlled by the government.

 As per the Supreme Court Judgement dated 18 March 1997, the appeals against the
orders of an administrative tribunal shall lie before the Division Bench of the concerned
High Court.

 The aggrieved person can personally appear before the tribunal.

 The government can present its case through its departmental officers or legal
practitioners.

 The objective of the tribunal is to provide speedy and inexpensive justice to the litigants.

 The provisions of the Administrative Tribunals Act 1985 do not however, apply to
members of Paramilitary Forces, Armed Forces of the Union; Officers or Employees of
the Supreme Court, or to persons appointed to the Secretariat Staff of either House of
Parliament or the Secretariat Staff of State/Union Territory legislatures.

Structure

 The Administrative Tribunals Act 1985 provides for the establishment of one Central
Administrative Tribunal, a State Administrative Tribunal for each state and a Joint
Administrative Tribunal for two or more states.

 The Central Administrative Tribunal (CAT) with its principal bench at Delhi and other
benches at Allahabad, Mumbai, Kolkata and Chennai was established on 1st November
1985.

 The Act vested the Central Administrative Tribunal with jurisdiction, powers and
authority of the adjudication of disputes and complaints with respect to recruitment
and service matters pertaining to the members of the All-India services and also of
any other civil service of the Union or those holding a civil post under the Union or a
post connected with defence or in the defence services being a post filled by a civilian.
 5

 The Act provides for the establishment of State Administrative Tribunals (SATs) to

decide the service cases of state government employees.

 There is a provision for setting up of a Joint Administrative Tribunal for two or more

states.

Composition

 Each tribunal shall consist of a Chairman, and such number of Vice-chairmen and

judicial and administrative members as the appropriate government (either the central

government or any particular state government singly or jointly) may deem fit.

 A bench shall consist of one judicial member and one administrative member.

 The bench at New Delhi was designated the Principal Bench of the Central

Administrative Tribunal and for the State Administrative Tribunals.

 The places where their principal and other benches would sit are specified by the state

governments by notification.

 Qualifications for Appointment

 In order to be appointed as Chairman, a person can be chosen only if he/she is a

High Court Judge or a retired person but, a person to be selected as the Vice

Chairman prior to the initiation of the Act shall be chosen to the post of Chairman,

if he/she has worked as Vice Chairman for a term of at least two years.
 6

 To be an administrative member, a person should have experience as a Secretary

in the central government or belonging to other services under the Government of
India or under the state government and has received a salary equivalent to that
of a Government Secretary or has worked as an Additional Secretary for the term
prescribed under the Act.

 Thus the Lateral Entry candidates can't be placed here and rather only the
generalist officer can be appointed as they are more aware of the procedures.

 The persons under the All India Services shall also be eligible to be appointed as
administrative members according to the terms specified in the Amendment Act,
2006.

 A person shall be appointed as a judicial member if he/she is working in the legal

affairs department as Secretary of the central government or has held such other
post in the legislative department.

 A member secretary under the Central Law Commission can also be appointed as
a judicial member.

 Appointments

 The Chairman, Vice-Chairman and every other member of the Central

Administrative Tribunal shall be appointed by the President and, in the case of
State or Joint Administrative Tribunal(s) by the President after consultation with
the Governor(s) of the concerned State(s).

 But no appointment can be made of a Chairman, Vice- Chairman or a judicial

member except after consultation with the Chief Justice of India.

 Term of Office

 The Constitutional Amendment Bill 2012, approved by the central government

provides that the Chairman, Vice-Chairman or other members shall hold office for
a term of five years from the date on which he enters upon his office or until
he/she attains the age of

 Sixty-eight, in the case of Chairman or Vice-Chairman

 Sixty-five, in the case of a member, whichever is earlier

 7

 Resignation or Removal

 The Chairman, Vice-Chairman or any other member of the Administrative

Tribunal may, by notice in writing under his hand addressed to the President,
resign from his office; but shall continue to hold office until the expiry of three
months from the date of receipt of notice or expiry of his term of office or the
date of joining by his successor, whichever is earlier.

 They cannot be removed from office except by an order made by the President on
the grounds of proven misbehaviour or incapacity after an inquiry has been made
by a judge of the Supreme Court; and after giving them a reasonable opportunity
of being heard in respect of those charges.

 As per the Constitutional Amendment Bill 2006, the central government, if it is

of the opinion that the continued existence of CAT or any of its branches is not
necessary, may by notification abolish any of them.

 Eligibility for Further Employment

 The Chairman of the Central Administrative Tribunal shall be ineligible for further
employment under either Central or State government, but the Vice-Chairman of
the Central Tribunal shall be eligible to be the Chairman of that or any other State
Tribunal or Vice-Chairman of any other State or Joint Tribunals.

 The Chairman of a State or Joint Tribunal(s) shall, however, be eligible for

appointment as Chairman or Vice-Chairman or any other member of the Central
Tribunal or Chairman of any other State or Joint Tribunals.

 The Vice-Chairman of the State or Joint Tribunal can be the Chairman of the
State Tribunal or Chairman, Vice-Chairman of the Central Tribunal or any other
State or Joint Tribunal.

 A member of any Tribunal shall be eligible for appointment as the Chairman or

Vice-Chairman of such Tribunal or Chairman, Vice-Chairman or other member of
any other Tribunal.

 Other than the appointments mentioned above, the Vice-Chairman or member of

a Central or State Tribunal, cannot be made eligible for any other employment
under the Government of India or under the Government of a State.
 8

 The Chairman, Vice-Chairman or other member shall not appear, act or plead
before any Tribunal of which he/she was the Chairman/Vice-Chairman/member.

 This is done to ensure the neutrality of the chairman, vice-chairman and

members of the tribunals.

 The Chairman shall exercise (or delegate to the Vice-Chairman or any other officer
of the Tribunal) such financial and administrative powers over the benches, as are
vested in him.

 The salaries and allowances and other terms and conditions of service, including
all retirement benefits in respect of the Chairman, Vice-Chairman and members
of the Tribunal shall be such as prescribed by the Central Government and cannot
be varied to their disadvantage, after appointment.

 The Administrative Tribunals (Amendment) Act 2006 was enacted on 29

December 2006 to make alterations to the Administrative Tribunals Act 1985
and certain changes were brought about in the Act.

 A new provision was included according to which a person can be chosen to the
post of chairman only if he/she is a High Court judge or retired person but, a
person to be selected as the Vice Chairman prior to the initiation of the Act shall
be chosen to the post of Chairman if he has worked as Vice Chairman for a term
of two years.

Jurisdiction, Power and Authority

 Chapter III of the Administrative Tribunals Act deals with the jurisdiction, powers and
authority of the tribunals.

 Section 14 (1) of the Act vests the Central Administrative Tribunal to exercise all the
jurisdiction, powers and authority exercisable by all the courts except the Supreme
Court of India under Article 136 of the Constitution.

 This relates to matters of recruitment and other service matters in respect of officers
belonging to All India Services or of members of Civil Services of the Union or those
holding civil posts under the Union or Defence Services.
 9

 No court in the country, except the Supreme Court is entitled to exercise any
jurisdiction or authority in matters of service disputes.

 The same authority has been vested in the State and Joint Administrative Tribunals.

 One of the main features of the Indian Constitution is judicial review.

 There is a hierarchy of courts for the enforcement of legal and constitutional rights.

 There is no such hierarchy of administrative tribunals and regarding adjudication of

service matters, one would have a remedy only before one of the tribunals.

 This is in contrast to the French system of administrative courts, where there is a

hierarchy of administrative courts and one can appeal from one administrative court
to another.

 But in India, with regard to decisions of the tribunals, one cannot appeal to an
Appellate Tribunal.

 Though the Supreme Court under Article 136 has jurisdiction over the decisions of the
tribunals, as a matter of right, no person can appeal to the Supreme Court.

 It is discretionary with the Supreme Court to grant or not to grant special leave to
appeal.

 The administrative tribunals have the authority to issue writs.

 In disposing of the cases, the tribunal observes the canons, principles and norms of
'natural justice'.

 The Act provides that “a tribunal shall not be bound by the procedure laid down in
the Code of Civil Procedure 1908, but shall be guided by the principles of natural
justice.

 The tribunal shall have power to regulate its own procedure including the fixing of the
place and time of its enquiry and deciding whether to sit in public or private".

 A tribunal has the same jurisdiction, power and authority, as those exercised by the
High Court, in respect of "contempt of itself" that is, punish for contempt, and for this
purpose, the provision of the Contempt of Courts Act 1971 has been made applicable.

 This helps the tribunals in ensuring that they are taken seriously and their orders are
not ignored.
 10

Advantages and Limitations

 The rendering of administrative justice through administrative tribunals serves the
varied and complex needs of modern society more adequately than any other method.
 It has also proved useful and effective.
 There are certain advantages of the tribunals which are:
 Appropriate and Effective Justice: The administrative tribunals are not only the
most appropriate means of administrative justice but also the effective means of
providing fair justice to individuals.
 Now the public service employees feel assured that in case of denial of justice
and fair play to them, the tribunals restore to them the benefits that rightfully
belong to them. (i.e. no dissatisfaction).
 Flexibility: There is a considerable amount of flexibility and adaptability in the
functioning of tribunals.
 Principles of natural justice play an important role in the operation of
tribunals.
 They are not bound by rigid rules of procedure of previous decisions of the rule
of law.
 The rules of natural justice are adaptable to the situation.
 While justice by the courts tends to be highly technical, tribunals are free from
technicalities of law.
 Less Expensive: Justice provided by administrative tribunals is inexpensive in terms
of the costs involved.
 This is in contrast to the long and cumbersome procedures involved in judicial
courts and the huge costs incurred in engaging lawyers, court fees and other
incidental expenses.
 Hence, the tribunals have now become popular judicial forums which provide
easy accessibility to government employees, who are encouraged to move the
tribunal even in minor service matters.
 Relief to Courts: The administrative tribunals have provided great relief to the
judicial courts which are preoccupied with so many petitions relating to civil,
criminal and Constitutional matters.
 11

 Despite these advantages, there are certain limitations in the functioning of tribunals.

 The administrative tribunals do not rely on uniform precedents and hence, this
might lead to arbitrary and inconsistent decisions.

 There is no hierarchy of administrative tribunals and this has completely excluded

the scope of judicial review on service matters.

 The tribunals consist of administrative members and technical heads who may not
possess any background in law or judicial work.

 The administrative tribunals have the power to issue writs, which till now was
exercised only by the Supreme Court and High Court under the Constitution.

 One more inadequacy noticeable in the present administrative tribunals is from

the structural-functional angle.

 This is the absence of an appellate forum within the tribunal which causes
considerable inconvenience.

 For example, if a bench of tribunal gives a judgement, it has got applicability all
over the country as there is only one Central Administrative Tribunal for the whole
of India and the various benches located in different parts of the country are parts
of the same tribunal.


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 1

DAILY
CLASS NOTES
PUBLIC ADMINISTRATION

Lecture - 130
Rural Governance
 2

Rural Governance
Current Situation of Central Administrative Tribunal

 Citing 1,350 cases pending disposal for more than 10 years, a Parliamentary
committee has asked the Central Administrative Tribunal (CAT) to decide them on a
priority basis, specifically the ones related to pensions and senior citizens.

 The tribunal adjudicates service matters of central government employees.

 As many as 80,545 cases are pending in different benches of the tribunal as of

December 31, 2022.

 In the Supreme Court, 80,221 cases are pending as of January 2024.

 Of these, 16,661 cases are pending for zero to one year, 46,534 for one to five years,
16,000 for five to 10 years and 1,350 for more than 10 years, the Department-
related Parliamentary Standing Committee on Personnel, Public Grievances, Law and
Justice said in its report.

 The panel said according to the Central Administrative Tribunal (Procedure) Rules,
1987, every application should be heard and decided as far as possible, within six
months from the date of its registration.
 3

 The Committee noted the mounting pendency of cases in CAT and it felt that one of
the major reasons for the delay is the non-availability of a sufficient number of
members.

 The sanctioned strength of members in CAT is 70 (35 judicial members and 35

administrative members), including the chairman.

 As of 2022, 53 (28 judicial members and 25 administrative members) members,

including the chairman, are in position and 17 posts (7 judicial members and 10
administrative members) are vacant.

 The Committee said it was informed that in some benches of the tribunal, cases are
pending for want of division bench as a sufficient number of division benches are not
available due to vacancy of members, according to the report.

 The panel inferred from the data provided by the tribunal that Allahabad, Bangalore,
Hyderabad, Jammu, and Patna benches are operating with 50 per cent of the
sanctioned strength, it said.

 "The Committee recommends that steps should be taken to ensure that these vacancies
are filled up at the earliest.

 The Committee is happy to note that CAT is contemplating implementing an Advance

Case Information system which facilitates hearing of cases through video-conferencing
and complete digitisation of the functioning of the tribunal and hopes that it is
operationalised soon," the report said.

 Video conferencing will become the norm rather than the exception.

 The Central Administrative Tribunal issued notice to the Union Public Service
Commission on a plea seeking a reduction in the cut-off for qualifying Part II (CSAT)
exam conducted by UPSC from 33% to 23%.

 The Supreme Court in May 2022 took serious note of huge vacancies in the Central
Administrative Tribunal (CAT) and said that the entire tribunal has collapsed.

 The top court noted that the Centre in its affidavit has said that benches that have
vacancies are functioning through physical/hybrid mode and virtual modes by joining
members from other benches.
 4

 It directed, in view of the matter, that since the vacancies in the CAT would impinge
upon the citizens' right of access to justice, this court is of the considered view that the
exercise of jurisdiction of Article 142 is mandated.

 The top court directed pending further orders, that the incumbent holding the post of
members of the CAT either the judicial member or the administrative member shall
continue to function even after the completion of their tenure, subject to their consent
and availability.

 2023: The Ernakulam Bench of the Central Administrative Tribunal (CAT) has directed
the Kerala State government not to issue orders of appointment, transfers and postings
to IAS officers in cadre posts without obtaining recommendations from the Civil
Services Board (CSB).

 This is done to ensure Civil Service Neutrality.

 Srinagar, 2023: The Central Administrative Tribunal (CAT) has held that an employee
has no vested right to claim transfer or posting of his choice and individual convenience
of a person in the service is always as per the public and administrative needs.

Rural Development
Introduction

 The Rig Veda, one of India's oldest sacred books and historical sources, mentions village
communities across the sub-continent that were self-governing over millennia, serving
as the main interface between the predominantly agrarian village economies and the
higher authorities.

 Custom and tradition elevated these earlier councils or assemblies called "Sabhas" to a
position of considerable authority.

 Slowly, they assumed the form of the "panchayat" (an assembly of five respected
elders).

 These panchayats in north and south India became the pivot of administration, the
focus of social solidarity and the principal forum for the dispensation of justice and
resolution of local disputes.

 During the medieval and Mughal periods, these characteristics of the village panchayats
remained unchanged.
 5

Evolution of Panchayati Raj Institution

 1870
 Lord Mayo (Viceroy of India → 1869-72), Governor General- in-Council, secured
the passage of a resolution for the decentralization of power aimed at bringing
about greater administrative efficiency in meeting the demands of the people but
primarily designed to augment imperial finances.
 I.e. to increase tax collection.
 A significant first step towards reviving the traditional village panchayat system in
Bengal was taken through the Bengal Chowkidari Act, of 1870, which empowered
District Magistrates to set up Panchayats of nominated members in the villages.
 From this time, the history of non-elected members being part of panchayats
has started.
 These nominated Panchayats could levy and collect taxes to pay for the chowkidars,
or watchmen, engaged by them.
 The Famine Commission of 1880 pointed to the absence of local bodies as a major
impediment in delivering relief supplies to famine-stricken people and underlined
the need to expand self-government to the villages as well.
 (Law of Situation)
 1882
 The Magna Carta of local democracy in British India was the Ripon Resolution of
1882 (Lord Ripon was Governor General and Viceroy of India →1880-1884)
providing for rural local boards with two-thirds of membership to be composed of
elected, non-official representatives and presided over by a non-official
Chairperson.
 Actual progress in implementation was slow, but the role of rural local administration
was elevated, and the term "self-government" gained currency.
 1907-1909
 In 1907, the Government constituted a six-member Royal Commission on
Decentralization, released in 1909, elaborated the principles enunciated in the
Ripon Resolution, and recognized the importance of Panchayats in the governance
of India.
 6

 1919

 'The Montagu -Chelmsford reforms of 1919 (Edwin Samuel Montagu was

Secretary of State for India 1917-22 and Lord Chelmsford was Viceroy of India
- 1916-21) made local self-government under the proposed scheme of Dyarchy
a "transferred subject", bringing self-government under the domain of Indian
Ministers in the provinces.

 To make local self-government both fully representative and responsible, the

Montagu- Chelmsford reforms suggested that there should be, as far as possible,
complete popular control in local bodies and the largest possible independence for
them from outside control.

 1935-39

 The Government of Indian Act, 1935 and the inauguration of provincial autonomy
under it marked another crucial stage in the evolution of Panchayats.

 With popularly elected governments in the Provinces, almost all provincial

administrations enacted legislation for further democratization of local self-
government institutions, including the village Panchayats.

 1948-50

 The amendment, eventually numbered as Article 40 reads:

 "The State shall take steps to organise village panchayats and endow them with
such power and authority as may be necessary to enable them to function as units
of self-government".

 It is noteworthy that right from the beginning, "self-government" has been

considered as the essence of Panchayati Raj.

 Entry No. 5 (Local Government) of the State List of the Seventh Schedule of the
Constitution.

 1952

 Community Development projects were inaugurated in 1952, modelled after the

earlier experiments at Santiniketan, Baroda (Vadodara), and Nilokheri.
 7

 1957

 In 1957, a historic breakthrough in establishing Panchayati Raj was effected

through the Report of the Team for the Study of Community Development Projects
and National Extension Service, headed by Shri Balwantrai Mehta, which
recommended that "Public participation in community works should be organized
through statutory representative bodies".

 Subsequently, the National Development Council endorsed the basic principles of

democratic decentralization enunciated in the Balwantrai Mehta report and laid
on States the duty of working out the structures suitable to each State.

 (Cultural Filtering Lens)

 It was during this period that the term "Panchayati Raj" gained currency as a
process of governance organically linking the will of the people from the Gram
Sabha to the Lok Sabha.

 1959

 The system of Panchayati Raj was first implemented in Rajasthan on 2nd Oct.
1959, at Nagaur.

 1978

 The Ashoka Mehta Committee Report of 1978 recommended that Panchayati Raj
be included in the Constitution.

 In keeping with the spirit of the Ashoka Mehta Committee recommendations, some
states, including West Bengal, Karnataka and Andhra Pradesh, revisited their
respective Panchayati Raj systems and undertook several new initiatives to endow
local bodies with more powers leading to these initiatives being cited as "second
generation" Panchayats, which served as a prime inspiration and example for
subsequent reform.

 1991-1993

 The Government introduced the 72nd (Panchayats) and 73rd (Nagarpalikas)

Constitution Amendment Bills, based substantially on the Bills moved in the Eight
Lok Sabha but also incorporating some of the changes wrought by the then
Government in power.
 8

 These two Bills were referred to a Joint Select Committee of the Parliament, which
effected some further changes but conformed in very considerable measure to the
earlier 1989 initiative.
 The Lok Sabha and the Rajya Sabha passed both Bills on the 22nd and 23rd of
December 1992 respectively.
 By the time the Parliament passed the two Bills, their sequence had changed to
73rd and 74th respectively.
 Following their ratification by more than half the State Assemblies as required
under the Constitution, the President of India gave his assent, and the Acts came
into force as the Constitution (Seventy-third Amendment) Act, 1992 on 24th
April 1993, and the Constitution (Seventy-fourth Amendment) Act, 1992 on 1st
June 1993, adding two new Parts to the Constitution, namely Part IX titled "The
Panchayats" and Part IXA titled "The Municipalities".
About Part IX and Ministry of Panchayati Raj
 The participation of local people in the development of rural areas through the
Panchayati Raj System was provided through the 73rd Amendment to the
Constitution of India.
 Part IX was inserted in the Constitution as a sequel to the 73rd Constitution
Amendment in 1993.
 Consequently 'Panchayats' have assumed Constitutional mandatory status.
 The "Ministry of Panchayati Raj” was created on 27th May 2004.
 It has the primary objective of
 overseeing the implementation of Part IX of the Constitution,
 implementation of the Provisions of the Panchayats (Extension to the Scheduled
Areas) Act, 1996 (PESA Act) in the Fifth Schedule areas and
 operationalizing District Planning Committees in terms of Article 243ZD of Part
IX-A of the Constitution.
 Since most of the actions including the framing of laws rests with the State
Governments, the Ministry strives to achieve its goals with regard to improvements in
the functioning of Panchayats primarily through policy interventions, advocacy,
capacity building, persuasion and financial support.
 9

 The aim of the Ministry is to make Panchayati Raj Institutions (PRIs) an effective,
efficient and transparent vehicle for local governance, social change and public service
delivery mechanisms meeting the aspirations of the local population.

 The role of MoPR involves strengthening the administrative infrastructure, basic

services etc by leveraging technology and capacity building of the functionaries of Rural
Local Body (RLB) institutions.

 The Ministry's roadmap, to realise the above objectives, is through three pillars:-

 provision of basic services through the Finance Commission funding,

 capacity building of RLBs through revamped Rashtriya Gram Swaraj Abhiyan

(revamped RGSA) and

 convergent holistic planning through inclusive and participatory process through

Gram Panchayat Development Plan (GPDP) and advocacy work.

 The Constitution envisages that Panchayats will function as institutions of local

government and prepare plans and implement schemes for economic development and
social justice, but leaves the precise devolution of powers and authority to Panchayats
to the States.

 Article 243G of the Constitution stipulates that Panchayats should plan for and
implement schemes for local economic development and social justice.

 Article 243ZD provides for setting up a District Planning Committee to prepare a

District Plan by consolidating plans of rural areas prepared by Panchayats and of
urban areas prepared by Urban Local Bodies.

 The State legislatures are to consider the 29 subjects illustratively set out in the
Eleventh Schedule (Annexure-1) for devolution to the Panchayats; for the planning
and implementation of schemes; for economic development and social justice.

 Powers to impose taxes and provisions of funds to the Panchayats are determined by
the States.

 Moreover, States play a critical role in building Panchayat capacities and in creating
an appropriate framework for accountability and transparency as well.
 10


 1

DAILY
CLASS NOTES
PUBLIC ADMINISTRATION

Lecture - 131
Rural Governance (Part 02)
 2

Rural Governance (Part 02)

Areas Not Covered under Part IX

❖ While Part IX of the Constitution applies to a vast area of the country, as per Article

243M of the Constitution, some areas are exempt from Part IX.

❖ These include the States of Nagaland, Meghalaya and Mizoram; tribal areas in the

States of Assam, Meghalaya, Tripura & Mizoram; the hill areas in the State of

Manipur (where District Councils exist); and the district-level Panchayats in the hill

areas of Darjeeling of State of West Bengal.

❖ Various kinds of grassroots-level local governance structures exist in these areas e.g.

Village Councils.

Provision in the Constitution For Panchayati Raj Institutions (PRIs)

❖ Part IX of the Constitution incorporates the following mandatory provisions for

Panchayats:

➢ Three tiers of Panchayats except in States with a population below 20 lakhs.

(Article 243 B)

➢
➢ Direct election to seats at all three tiers of Panchayats and indirect election to

officers (Article 243C)

 3

➢ Indirect elections for chairpersons of Block and District Panchayats (Article 243C

(2)).

➢ Reservation in seats for the Scheduled Castes and Scheduled Tribes in proportion

to their respective population [Article 243 D (1)1].

➢ Reservation of not less than one-third of seats and offices of chairpersons for

women including within SC and ST reservations [Article 243D(3)].

➢ Rotation of reserved seats and offices of Chairpersons [Article 243D (4)].

➢ Election to Panchayats every five years [Article 243E].

➢ To constitute the State Finance Commissions [Article 243-J] every five years to

review the financial position of Panchayats and make recommendations to the

Governor regarding distribution between the State and Panchayats of taxes,

duties, tolls etc.

➢ Setting up of State Election Commission (SEC) and vesting the superintendence,

directions and control of the preparation of electoral rolls for and the conduct of

all elections to the Panchayats in SEC [Article 243KJ].

Compulsory Conduct of Election

❖ Timely conduct of Panchayat Elections is an essential prerequisite for the effective

democratic functioning of Panchayati Raj Institutions (PRls).

❖ In terms of Article 243E of the Constitution of India, every Panchayat, unless sooner

dissolved under any law for the time being in force, shall continue for five years from

the date appointed for its first meeting and no longer.

❖ An election to constitute a Panchayat shall be completed before the expiry of its

duration of five years or before the expiration of a period of six months from the

date of its dissolution.

❖ Every State/UTs, covered under Part-IX of the Constitution, shall have a State

Election Commission, constituted under Article 243K of the Constitution, who is

responsible for superintendence, direction and control of the preparation of electoral

rolls for, and the conduct of, all elections to the Panchayats.
 4

❖ Thus, State Election Commissions play an important role in holding panchayat

elections on time.

Reservation of Women in Panchayati Raj Institutions (PRIs)

❖ Article 243D of the Constitution of India ensures the participation of women in PRls

by mandating not less than one-third reservation for women out of the total number

of seats to be filled by direct election and number of offices of chairpersons of

Panchayats.

➢
❖ As per the information available from the Ministry of Panchayati Raj, 21 States such

as Andhra Pradesh, Assam, Bihar, Chhattisgarh, Gujarat, Haryana, Himachal

Pradesh, Pradesh, Jharkhand, Karnataka, Kerala, Madhya Pradesh, Maharashtra,

Odisha, Punjab, Rajasthan, Sikkim, Tamil Nadu, Telangana, Tripura, Uttarakhand

and West Bengal, and 2 UTs such as UT of Lakshadweep and UT of Dadra & Nagar

Haveli and Daman & Diu, have made provisions of 50% reservation for women in

PRIs in their respective State Panchayati Raj Acts.

❖ In respect of remaining States/UTs, Constitutional provision as prescribed in Article

243D applies.

Governance in the Fifth Scheduled Areas

❖ The Fifth Schedule of the Constitution deals with the administration and control of

Scheduled Areas as well as of Scheduled Tribes residing in areas other than the States

of Assam, Meghalaya, Tripura and Mizoram.

 5

❖ Article 244 of the Constitution makes special provisions for the administration of

certain areas called "Scheduled Areas" in states other than Assam, Meghalaya,

Tripura and Mizoram.

❖ Article 243M (1) of the Constitution exempts Scheduled Areas and tribal areas

referred to in Clause (1) and (2) of Article 244 from the application of the

provisions of Part IX of the Constitution.

❖ However, article 243M (4) (b) empowers the Parliament to legislate and extend the

provisions of Part IX to the Scheduled Areas and tribal areas referred to in clause

(1), subject to such exceptions and modifications as may be specified in such law and

no such law shall be deemed to be an amendment of the Constitution for the purpose

of article 368.

❖ On the basis of the report of the Bhuria Committee submitted in 1995, the

Parliament enacted "The Provisions of the Panchayats (Extension to the Scheduled

Areas) Act, 1996" (PESA), for its applicability to Fifth Schedule Areas and tribal

areas as per article 243M (4) (b) of the Constitution.

❖ PESA Act, 1996 extends Part IX of the Constitution with certain modifications and

exceptions, to the Fifth Schedule Areas notified under Article 244(1) of the

Constitution.

❖ At present, Fifth Schedule Areas exist in 10 States viz. Andhra Pradesh,

Chhattisgarh, Gujarat, Himachal Pradesh, Jharkhand, Madhya Pradesh,

Maharashtra, Odisha, Rajasthan and Telangana.

❖ The Sixth Schedule of the Constitution provides for the creation of Autonomous

Districts to preserve tribal autonomy and protect the cultural and economic interests

of the hill tribes.

❖ Every village shall have its own Gram Sabha.

❖ A village may consist of one or more habitations or hamlets comprising a community

and managing its affairs in accordance with traditions and customs (In Part IX, all

electors of Village Panchayat constitute a Gram Sabha)

 6

❖ Gram Sabha is "competent" to safeguard and preserve the

➢ traditions and customs of the people, and their cultural identity,

➢ community resources, and

➢ customary mode of dispute resolution

❖ Gram Sabha has mandatory executive functions to

➢ approve plans, programmes and projects for social and economic development.

➢ identify persons as beneficiaries under poverty alleviation and other programmes.

➢ issue a certificate of the utilisation of funds by the Panchayat for the plans;

programmes and projects.

❖ Powers exclusive to Gram Sabha/ Panchayat at the appropriate level

➢ right to mandatory consultation in land acquisition, resettlement and

rehabilitation of displaced persons

➢ Panchayat at an appropriate level is entrusted with planning and management

of minor water bodies

➢ Mandatory recommendations by Gram Sabha or Panchayat at an appropriate

level for prospective licenses/lease, concessions for mines and minerals.

❖ Powers endowed to Gram Sabha and Panchayat at appropriate levels to

➢ regulate the sale/ consumption of intoxicants

➢ ownership of minor forest produce

➢ prevent land alienation and restore alienated land

➢ manage village markets

➢ control over money lending to STs

➢ control over institutions and functionaries in the social sector,

➢ local plans including Tribal sub-plans and resources.

❖ The Directive Principle of State Policy about the establishment of virtual 'Village

Republics' as envisaged in Article 40 of the Constitution and has been incorporated in

the PESA Act for the Fifth Schedule Areas.

 7

❖ Its effective implementation will bring about the following benefits to the tribal

population:

❖ Institutionalize self-governance and people's participation in decision-making.

❖ By notifying Gram Sabha at the village (hamlets or group of hamlets/habitation or

group of habitations) level, people will feel more comfortable in taking part in the

governance of the village.

Reduce alienation in tribal areas as they will have control over the utilization of public

resources in the village through Gram Sabha.


 1

DAILY
CLASS NOTES
PUBLIC ADMINISTRATION

Lecture - 132
Rural Governance (Part 03)
 2

Rural Governance (Part 03)

❖ Reduce alienation in tribal areas as they will have control over the utilization of

public resources in the village through Gram Sabha.

❖ Reduction of alienation and resentment among the tribal population will have a

positive impact in reducing left-wing extremism in the districts affected by it.

❖ Reduce poverty and out-migration among the tribal population as they will have

control over natural resources such, as minor water bodies, minor forest produce,

minor minerals, etc. Control over and management of these resources will improve

their livelihoods and incomes.

❖ Minimise exploitation of tribal population as they will be able to control and manage

money lending, consumption and sale of liquor and also village markets.

❖ Check illegal land alienation and also restore unlawfully alienated tribal land. This will

not only reduce conflict but will also improve the socio-economic status of tribals.

❖ Better implementation of developmental schemes and programmes due to enhanced

people's participation in planning and identification of beneficiaries.

❖ More accountable and responsive local administration due to control over

functionaries of the social sector and also the power to issue utilisation certificates.

➢
 3

❖ Promotion of cultural heritage through preservation of traditions, customs and

cultural identity of tribal population.

➢ E.g.- AI- BHASHINI launched to enable easy access to the internet and digital

services and help the creation of content in Indian languages.

Analysing Panchayati Raj Institutions

❖ When it comes to analysing the status of devolution, it is evident that some States

have forged ahead while many lag behind.

❖ The commitment of State governments towards decentralisation has been vital in

making Panchayati raj institutions an effective local governance mechanism at the

grass-roots level.

❖ The constitutional amendment has set forth specific details on fiscal devolution which

includes the generation of own revenues.

❖ Emanating from the Central Act, various States' Panchayati Raj Acts have made

provisions for taxation and collection.

❖ Based on the provisions of these Acts, panchayats have made efforts to generate

their own resources to the maximum extent.

❖ Participatory planning and budgeting were the end result of such interventions by

the Ministry of Panchayati Raj.

❖ Panchayats earn only 1% of the revenue through taxes with the rest being raised as

grants from the State and Centre.

❖ 80% of the revenue is from the Centre and 15% from the States.

❖ Revenue raised by panchayats is meagre even after 30 years of devolution initiatives.

 4

❖
➢ Due to the grants from the central and state governments, there is no incentive
to raise revenue for the panchayats.

❖
 5

❖ The report of the expert committee constituted by the Ministry of Panchayati Raj on

its own source of revenue (OSR) of rural local bodies elaborates on the details of State

Acts that have incorporated tax and non-tax revenue that can be collected and

utilised by panchayats.

❖ Property tax, cess on land revenue, (surcharge) on additional stamp duty, tolls, tax

on profession, advertisement, user charges for water and sanitation and lighting are

the major OSRs where panchayats can earn maximum income.

❖ Panchayats are expected to establish a conducive environment for taxation by

implementing appropriate financial regulations.

❖ This includes making decisions regarding the tax and non-tax bases, determining

their rates, establishing provisions for periodic revisions, defining exemption areas,

and enacting effective tax management and enforcement laws for collection

❖ The huge potential for non-tax revenue includes fees, rent, and income from

investment sales and hires charges and receipts.

❖ There are also innovative projects that can generate OSR.

❖ This covers income from rural business hubs, innovative commercial ventures,

renewable energy projects, carbon credits, Corporate Social Responsibility (CSR)

funds and donations.

❖ Gram sabhas have a significant role in fostering self-sufficiency and sustainable

development at the grass-roots level by leveraging local resources for revenue

generation.

❖ They can be engaged in planning, decision-making, and implementation of revenue-

generating initiatives that range from agriculture and tourism to small-scale

industries.
 6

❖ They have the authority to impose taxes, fees, and levies, directing the funds towards

local development projects, public services, and social welfare programmes.

❖ Through transparent financial management and inclusive participation, gram sabhas

ensure accountability and foster community trust, ultimately empowering villages to

become economically independent and resilient.

❖ Thus, gram sabhas need to promote entrepreneurship and foster partnerships with

external stakeholders to enhance the effectiveness of revenue-generation efforts.

❖ In several States, gram panchayats lack the authority to collect taxes, while in

numerous others, intermediate and district panchayats are not delegated the

responsibility of tax collection.

❖ When gram panchayats collect 89% of their own taxes, the intermediate panchayats

collect 7% and the district panchayats a nominal amount of 5%.

❖ There is a need to demarcate OSR for the entire three-tier panchayats to ensure

equitable sharing.

❖
❖ In Andhra Pradesh, revenue receipts of panchayats formed just 0.1% of the State's

own revenue.
 7

❖ The revenue of panchayats in Uttar Pradesh formed 2.5% of the State's own revenue,

the highest among States.

❖ There are several factors behind the general aversion towards generating own

income.

❖ With the increase in the allocation of Central Finance Commission (CFC) grants,

panchayats are evincing less interest in the collection of OSR.

The allocation for rural local bodies from the 10th and 11th CFC was 4,380 crore and

₹8,000 crore respectively. But in the 14th and 15th CFCs, there was a huge increase by

way of allocating 2,00,202 and 2,80,733 crore respectively.


 1

DAILY
CLASS NOTES
PUBLIC ADMINISTRATION

Lecture - 133
Rural Governance (Part - 04)
 2

Rural Governance (Part - 04)

Analysing Panchayati Raj Institutions (Continued)

 The tax collected in 2018-19 was ₹3,12,075 lakh which diminished in 2021-2022
to ₹2,71,386 lakh.

 The non-tax collected for the same period was ₹2,33,863 lakh and 2,09,864 lakh.

 At one time, panchayats were in competition to raise their own source of revenue
(OSR) for their commitment to fulfilling basic needs.

 This has now given place to dependency on grants allocated through central and State
finance commissions.

 Some States have a policy of incentivisation by providing matching grants but these
were sparingly implemented.

 Panchayats also have no need to penalise defaulters as they believe that OSR has not
been regarded as an income that is linked with panchayat finance.

 Thus the provision of grants has made panchayats the proponents of “Theory X”
as the state encourages this behaviour.

 Despite every enabling factor to raise revenue, panchayats confront several

impediments in resource mobilisation: the 'freebie culture' rampant in society is the
cause for the antipathy in paying taxes.

 Elected representatives feel that imposing taxes would alter their popularity adversely.

 The ‘safety needs’ of the elected representatives hinder the coming up of the
“Economic Man” and encourage the “Social Man”.

 There is a need to educate elected representatives and the public on the significance of
raising revenue to develop panchayats as self-governing institutions.

 Ultimately, the dependency syndrome for grants has to be minimised and in due
course, panchayats will be able to survive on their own resources.

 Panchayats can only achieve such a state of affairs when there are dedicated efforts in
all tiers of governance, which includes even the State and central levels.
 3

 A parliamentary panel has ticked off the Panchayati Raj Ministry over the non-release
of funds to States under the flagship Rashtriya Gram Swaraj Abhiyan (RGSA).
 In its report tabled in Rajya Sabha, the Standing Committee on Rural Development
and Panchayati Raj said these funds are released to the States primarily for capacity
building and training of elected representatives, functionaries and other stakeholders
of the panchayats.
 It said that 19 out of 34 States and Union territories have not received any funds
under the scheme for the financial year 2022-23 (as of 31.12.2022).
 Similarly, in 2021-22, no funds were released to nine out of 34 states and Union
territories.
 The ministry to this effect submitted that timely non-submission of requisite
documents and non-compliance with instructions stipulated by the Ministry of Finance
are the reasons for the non-release of funds.
 In this context, the committee recommend that the Ministry should be proactive in
ensuring compliance with Ministry of Finance stipulations and submission of requisite
documents by the States/UTs so that funds are released to all the States/UTs uniformly.
 It also said that if necessary, such matters should be taken up at the highest level with
the States/Union territories so that the progress of the envisaged schemes may not be
hampered on account of delay or non-release of funds under RGSA.
 The committee also raised concerns over the non-availability of computers in gram
panchayats (GPs).
 4

 The Committee are concerned to note that out of 2,71,102 Gram Panchayats in the
country, only 2,19,889 GPs have computers in them.

 It also pointed out that only 80,742 rural local bodies have active internet connection
as on 21-01-2023 out of 2,71,102 rural local bodies even though 1.92 lakh gram
panchayats have been made service ready.

 The Committee have also observed a lack of broadband connectivity in the Gram
Panchayats and the use of private cellular data for public service delivery during its
study visits undertaken to States such as Maharashtra.

 The Committee urged the Ministry to take concrete steps in coordination with the
other two Ministries to make all the 1.92 lakh service-ready GPs to have active
internet connection during 2023-24 and to connect all GPs with Broad Band
connectivity by 2024-25.

 It also recommended that the ministry ensure that all gram panchayats provide all
mandated online assured services instead of confining only birth and death certificates.

 Panchayats and Health

 Panchayats collaborate with health departments to maintain clinics and

dispensaries in rural areas.

 By encouraging institutional deliveries and ensuring prenatal and postnatal

checkups, they help reduce maternal and infant mortality rates (IMR).

 They also provide clean water and sanitation facilities.

 All these help improve health outcomes.

 Major states including Kerala, Tamil Nadu, Himachal Pradesh, Punjab, Jammu and
Kashmir (before it became a Union Territory), Karnataka, Maharashtra, and West
Bengal have a high score and a low IMR. Madhya Pradesh, Uttar Pradesh, Assam,
Rajasthan, Odisha, and Chhattisgarh have a low score and high IMR.

 Kerala, Karnataka, Maharashtra, and Tamil Nadu - have higher devolution scores.

 Assam, Odisha, Chhattisgarh, Madhya Pradesh and Uttarakhand — have lower

devolution scores.
 5

 Zilla panchayat CEOs should compulsorily visit taluk centres and gram panchayats once
a week.

 Speaking about pending inquiries, the Minister (in charge of the Ministry of Panchayati
Raj) said that probes against 253 Panchayat Development Officers, 130 panchayat
secretaries and 32 other officials of the department were on for more than one year
and they needed to be speeded up.

 The Minister said there were 46,655 employees across the gram panchayat offices but
only 63% were using the e-attendance facility.

 He asked officials to ensure that all take to e-attendance and disciplinary action be
initiated against those who do not fall in line.
 6

 The rule of special officers is back in the Panchayat Raj system again.

 With the term of the existing sarpanches expiring, the government has directed the
district Collectors to appoint officers from the category of tahsildar/mandal parishad
development officer/agriculture officer/mandal education officer/mandal panchayat
officer or officers of a similar rank as special officers for gram panchayat or panchayats
in their jurisdiction.

 “Officialdom” → bypassing democracy.

 This showcases that bureaucracy creates the work for itself with the blessings of
the government.

 The special officers have been authorised to exercise powers, discharge duties and
perform the functions of the gram panchayat till new members and sarpanches of the
respective villages assume office.

 The special officers should take charge with immediate effect, according to the order
issued by the Panchayat Raj and Rural Development department.

 Sense of inertia in implementing the Panchayati Raj Institution Act.

Women’s Quota: Panchayat

 The Union government's 2009 constitutional amendment to increase women's

reservation in local governments from 33% to 50% failed, many States have enacted
laws that reserve 50% seats for women and also instituted reservations of seats for
Other Backward Classes (OBCs).

 Hence, presently in panchayats and municipalities, there is, at one level, vertical
reservation of seats for SCs, STs, and OBCs and a horizontal category of reservation
for women that applies across all categories - general, SC, ST, and OBC.

 Panchayats in West Bengal and Rajasthan found that women leaders invest more in
public goods and ensure increased women's participation in panchayat meetings.

 Women-led panchayats made higher investments in public services like drinking water,
education, and roads.

 Women's reservations worsened the targeting of welfare programmes for SC/ST

households and provided no improvement for female-headed households.
 7

 Women leaders perform no differently than their male counterparts in South India

and instead institutional factors such as the maturity of the State's panchayat system

were more relevant.

 In Delhi, constituencies reserved for women are less likely to elect OBC women and

more likely to elect upper-caste women.

Bureaucratic Resistance

 Bureaucrats, insulated from political compulsions, remain steadfastly opposed to

strengthening local governments.

 They would lose their pre-eminent positions of power over where, how and when

government money is spent if they actually devolved power to local governments.

 There is a cabal forged between top-level politicians and such bureaucrats.

 More than three decades after the 73rd and 74th Amendment Acts, which gave

constitutional status to local governments, State governments, through the local

bureaucracy, continue to exercise considerable discretionary authority and influence

over panchayats.

 In India, the powers of local elected government remain seriously circumscribed by

State governments and local bureaucrats in multiple ways, thereby diluting the spirit

of the constitutional amendments seeking to empower locally elected officials.

 A three-pronged strategy is used to cripple the local government system.

 Every local government needs to have organisational capacity, by way of staff such as

engineers, office staff and social mobilisers.

 Staffing of local governments is scanty.

 In some states, many panchayats share a single secretary, who operates from a

shoulder bag, a jhola, carrying all the books.

 The sub-district staff are still controlled by the Collector, the head of the district

'administration'.
 8

 The line departments are loath to allow their local institutions — schools, anganwadis,
primary health centres, veterinary hospitals and so on–to be placed under the control
and supervision of panchayats.

 One cannot hold any higher-level bureaucrat to account for the abysmal quality of local
services.

 Second, local governments are starved of money.

 The Union Finance Commissions have made desirable recommendations, but the
pitifully low finances that are devolved to local governments, not more than 5% of the
divisible pool of Union taxes, come with conditionalities that bind them to specific uses.



 1

DAILY
CLASS NOTES
Public Administration

Lecture - 135
Urban Governance
 2

Urban Governance
❖ However, the Government had stiff control over these Municipalities through the official

chairman and many conditions were imposed to deprive them of real popular control.

❖ Mallik (1929) analysed that they had some practical autonomy though to a somewhat

lesser extent.

❖ However, no attempt was made to establish Municipalities outside the Presidency Towns

till 1842, when Bengal promulgated an Act to provide for municipalities if the towns

so wished supported by two-thirds of the households and willing to pay taxes for such

Municipalities.

❖ This experiment did not prove successful.

❖ In 1850, an Act was promulgated for the whole of British India, which provided for

taxation by indirect methods.

❖ It was largely applied in the North West Provinces and Bombay, but not much in Bengal

and Madras.

❖ This led to the creation of a large number of Municipalities.

❖ Lord Mayo, thereafter, initiated the development of self-government paving the way

for the principle of election.

❖ However, it was during the tenure of Lord Ripon that the development of local self-

government took shape significantly.

❖ He believed, “...local self-government was a means of popular and political education".

❖ In this regard, Acts were passed in 1883-84, which greatly altered the constitution

of the municipal bodies and also added to their power and functions.

❖ Some towns elected the Chairman in the place of Executive officials.

❖ The Municipalities were entrusted with the responsibilities of education, medical aid

and local public works.

❖ They were provided with some funds from provincial revenues for discharging their

responsibilities.
 3

❖ Thus, the Municipal Government became a body corporate consisting of members

elected by the ratepayers and some nominated by the Government.

❖ The Chairman of the Municipality was often an elected member of the body.

❖ Even the Municipal funds and properties were vested in these bodies.

❖ Generally, the tenure of elected members was for three years; and the rules for elections

were framed by the provincial governments.

❖ Voters were required to have either property or some status qualification.

➢ (no universal adult franchise)

❖ The elections, in general, were held on a wards or community basis or both.

❖ The functions of the Municipalities increased gradually and fell into the category of

either obligatory or discretionary.

❖ In 1881, there were 722 Municipalities, which rose to 739 in 1891, 742 in 1901

and 749 in 1921.

❖ It is pertinent to mention here that these urban areas had only 15 per cent of the

population of India.

❖ Lord Ripon's resolution mainly aimed at greater uniformity and greater association of

the people in the task of administration.

❖ But many powers of the Municipalities especially that of Calcutta Corporation were

curtailed by Lord Curzon.

❖ Lord Chelmsford accepted, "... local bodies must be as representative as possible" and

that their control should be real and not nominal, but he kept the franchise sufficiently

low to include only ratepayers.

❖ He agreed to increase the powers of local bodies.

❖ However, the control of the Municipalities over the funds including those raised through

their own efforts was reduced.

❖ The Government of India Act, 1935 expanded the functions of the local bodies, but

their budgetary sources were reduced.

 4

❖ The United Province Government appointed a committee to review the working of the

Municipal bodies, which submitted its report in 1939.

❖ It found that the existing management of the local bodies had given rise to very large

dissatisfaction in the public mind because of the nature of their constitution under

which they were forced to work due to which they could not attain the required

standard of efficiency.

❖ They became synonymous with intrigue, incompetence and bankruptcy.

❖ Between 1939 and 1945 the progress of local self-government reform was retarded

due to war and it had piecemeal reconstruction.

❖ The democratisation of these bodies by abolition of nominations or by extension of

franchise, or by granting more powers in some provinces to elected presidents had a

marked significance for these institutions.

➢ This showcases the importance of engaging with informal groups.

❖ India gained independence in 1947 and had the opportunity to introduce the reforms

felt by national leaders during the British rule.

❖ The Constitution of India has made detailed provisions for ensuring the protection of

democracy in Parliament and State Legislatures.

❖ However, the Constitution did not mention about Local Self-Government in urban

areas as a clear-cut constitutional obligation.

❖ While Village Panchayats had been included in the Directive Principles of State Policy,

there was no specific reference to ULBs (urban local bodies), except implicitly in Entry-

5 of the State List, which placed the subject of Local Self-Government as a

responsibility of the State.

❖ So, the country continued to have the municipalities in the form that were inherited

from the Britishers.

❖ Various states, which came into existence as a result of reorganisations enacted their

laws for constituting municipalities.

 5

❖ While structurally they were somewhat similar, there was a vast difference in the scope

of activities.

Structure

❖ The statutes of respective States / UTs determine the constitution of the municipalities

as earlier.

❖ There are two types of Acts namely Municipal Corporation Act and Municipal Act,

which prescribe the ULB structure in respective States.

❖ In general, there is a deliberative wing and an executive wing.

❖ The deliberative wing consists of the elected body and is headed by the Mayor or a

Chairman as the case may be.

❖ They have the power to advise, warn and criticise while the executive power is in the

hands of Commissioners.

❖ The executive wing is headed by the Commissioner, normally an officer of the State

Government.

❖ In bigger towns, they are officers of the Indian Administrative Service or Senior

Provincial Service Officers depending on the importance of the town.

❖ In cities like Mumbai, they are one of the senior-most civil servants of the State.
 6

❖ South Delhi Municipal Corporation (SDMC)

➢ The SDMC serves the population of almost 56 Lakh citizens in 104 wards with the

responsibility of monitoring, upgrading and developing civic amenities efficiently.

➢ It has more than 40 departments to carry out its, responsibilities.

❖ On the other hand, a smaller municipality like Nagar Palika Parishad, Gonda (Uttar

Pradesh) to caters to about 125,000 population has a limited number of departments

and limited roles and functions as well, which are as follows:

➢ To ensure running and maintenance of civic services and facilities such as water

supply and sewage system.

➢ To issue licenses/permits for shops and business establishments.

➢ To regulate the opening/closing of shops and markets.

➢ To run public health services.

➢ To maintain a record of land and properties owned by it.

➢ To discharge these functions, it has only seven departments: Public Works, Public

Health, Water Supply, License, Town Planning, Street Light and Tax.

❖ Given the size of the cities across the country, there are bound to be variations.

❖ In fact, two prominent patterns have been observed.

❖ Commissioner system

➢ In such a system the Mayor in the Municipal Corporation is usually chosen through

indirect election by the Councilors from among themselves for a term of one year,

which is renewable.

➢ The Mayor generally lacks executive authority.

➢ The Councilors act by Committee, usually the Standing Committee with its role of

the Steering Committee exercising executive, supervisory, financial and personnel

powers.

➢ It is composed of elected members.

➢ The Municipal Commissioner, a state-appointed officer, is the head of the executive

arm of the Municipality.

 7

➢ All executive powers are vested in him/her.

➢ Although the Municipality is the legislative body that lays down policies for the

governance of the city, it is the Commissioner who is responsible for the execution

of the policies.

➢ The tenure of the Commissioner is dependent on the State Government.

➢ The powers of the Commissioner are those provided by the Statute and those

delegated by the Corporation or the Standing Committee.

❖ Mayor-in-Council system

➢ This model was introduced in West Bengal in 1984.

➢ This system is composed of a Mayor and a Council of elected members with

individual portfolios.

➢ The Municipal Commissioner serves as the Principal Executive Officer, subject to the

control and supervision of the Mayor as the Chief Executive Officer in this model.

➢ The city is grouped into wards to form a Ward Committee, consisting of the

Councillors elected from the respective Wards.

➢ The Ward Committees are subject to the general supervision of the Mayor-in-

Council, and look after Ward-level functions such as water supply, drainage,

collection and removal of solid waste, disinfection and health services, housing

services, lighting, repairs of certain categories of roads, maintenance of parks, and

drains.

➢ There is normally a Directorate of the Municipal Administration, which looks after

the matters concerning them, whereas the Corporations may deal with the State

Government directly.

➢ Normally the Municipal Commissioner is a senior officer than the Director of Local

Bodies, causing the placement of the Commissioner directly under the control of

the respective State Department.

 8

❖ Maheshwari, (1971) evaluating the relationship between the ULBs and the state

governments commented that the control of the State Government over Local Bodies

degenerated into spasmodic, intermittent bouts and was often negative.

The Constitution (74th Amendment) Act, 1992

❖ The Government stated that the objects and reasons behind the introduction of the

Seventy-third Amendment Bill, 1991 which was enacted as the Constitution

(Seventy-fourth Amendment) Act, 1992 were that in many States Local Bodies had

become weak and ineffective on account of a variety of reasons, including the failure

to hold regular elections, prolonged suppression and inadequate devolution of powers

and functions.

❖ As a result, Urban Local Bodies were not able to perform effectively as vibrant

democratic units of self-government.

❖ The Act introduced political, functional and fiscal empowerment with reservation of

seats to women and other weaker sections (243T), continuity in elected body city

government (243U), creation of wards committees (2435), listing municipal functions

with the Schedule XII in the constitution and creation of State Finance Commission

(243Y).
 9

❖ Among these Schedule XII and 243Y are discretionary whereas others are mentioned

as “shall”.

❖ Accordingly, states have not devolved the functions as per Schedule XII in many cases,

whereas others are implemented as expected.

❖ The 2nd Administrative Reforms Commission stated that no major changes in the

structure and functioning of the ULBs have been observed till the 74th CAA, despite

rapid urbanisation and consequential increase in the complexities of problems in urban

areas.

❖ The powers and functions of these bodies varied from state to state as the subject

“Local Government" fell into the State List. States had the power to define the role of

the ULBs.

❖ The 74th Amendment to the Constitution, bestowed upon these municipal bodies the

Constitutional status.

❖ In terms of the Amendment, the responsibility for making decisions regarding activities

at the grassroots level, which affect people's lives directly would rest upon the elected

members of the people themselves.

❖ The Amendment conforms to the principle of subsidiarity, which has been the

determining factor for the distribution of subjects between the Centre, States and Local

governments.

❖ The 2nd ARC recommended that the reform package for the ULBs must be informed

by this principle.

❖ The constitutional status of the municipalities has ensured permanency to the entities

of self-government with a specific role in planning for development and social justice

for the local area.

➢ Fire services Water supply

➢ Urban Forestry

➢ Roads and bridges

➢ Slum improvement
 10

➢ Interest of weaker sections

➢ Urban poverty alleviation

➢ Promotion of culture, education and aesthetic aspects

➢ Socio-economic planning

➢ Urban planning including Town Planning

➢ Regulation of land use and construction of buildings

➢ Registration of births and deaths

➢ Registration of slaughterhouses

➢ Cattle Pounds

➢ Burial grounds and crematorial

➢ Urban amenities including parks

➢ Public conveniences including streetlights

➢ Public health, sanitation and solid waste management


 1

DAILY
CLASS NOTES
PUBLIC ADMINISTRATION

Lecture - 136
Urban Governance (Part - 02)
 2

Urban Governance (Part - 02)

 The 74th Constitutional Amendment Act did not specify the manner of election, tenure
or powers of the Mayors of ULBs (Urban Local Bodies).
 It has been left entirely at the discretion of the state.
 At present, some states such as Uttarakhand, Chhattisgarh, Jharkhand, Haryana,
Uttar Pradesh and Tamil Nadu - have directly elected mayors.
 However, they remain ceremonial heads with limited financial and political
independence.
 Their tenure is also not uniform.
 In different states they have different tenures, even as low as just one year.
 The directly elected Mayor is expected to tap the support of bureaucrats by presenting
himself as a people's representative of the city.
 The direct election provides the required legitimacy to the Mayor to interact, demand,
and get work executed in the best interest of the city.
 There is also a view that an empowered executive in the city can be achieved through
an indirectly elected "Mayor-in-Council" (MIC) system in which, the Mayor remains
accountable to the council.
 In Madhya Pradesh, the state adopted a system of directly electing a Mayor in 1998.
 However, the Mayor had to form an MIC out of the elected Councilors.
 This MIC was to aid and advise.
 The Mayor presided over the MIC meetings and deliberations.
 In Himachal Pradesh, the State Government amended the Municipal Corporation Act
in 2010 to introduce direct elections for the office of Mayor and deputy mayor.

Second Administrative Reforms Commission (SARC) Recommendations

 The 2nd ARC noted, "the Chairperson/Mayor in the Urban Local Government in most
states enjoys primarily a ceremonial status. In most cases, the Commissioner, appointed
by the State Government, has all the powers".
 Often it has been noticed that the elected representatives end up performing the role
of the opposition, and where Municipal Commissioners are headstrong, situations of
gridlock are quite frequent.
 3

 It recommended that the functions of chairing the Municipal Council and exercising
executive authority should be combined in the same functionary, i.e., Chairman or
Mayor, while the Commissioner should perform the functions delegated to him/her.

 It even recommended powers to the Local Bodies to select the Commissioner/Chief

Officer on the ground that the elected Mayor or Chairperson is accountable to the
electorate.

 At this stage, tenure is an important issue.

 The tenure of the Mayor or Chairperson, unlike the current practice of one year in
many states, should be uniformly five years across the country so that continuity and
accountability are established.

 The Ramnath Kovind panel on ‘One Nation One Election’ has also reiterated the
same.

 Similarly, the tenure of the Commissioner or Chief Executive Officers should also be
fixed for a reasonably good period.

 A survey by Janagraha (2016) has found that the average age of the Commissioner in
the country is 11 months.
 4

 The combined budget of all the municipal corporations in India is much smaller than
that of the Central and State governments, an RBI analysis of the finances of urban
local bodies concludes.

 The study titled “Report on municipal finances” reveals how municipal bodies are
increasingly dependent on fund transfers from the State and the Centre, while their
revenue-earning capacity is limited.

 Their revenue-raising powers are curtailed, the study shows.

 Limited funds aside, about 70% of it gets spent on salaries, pensions and administrative
expenses with the rest left for capital expenditure.

 Municipal corporations don't borrow much, leaving them gasping for funds.

 Taxes earned by municipal corporations in India are grossly inadequate to meet their
expenditure needs.

 In India, the own tax revenue of municipal corporations, comprising property tax,
water tax, toll tax and other local taxes, formed 31-34% of the total revenue in the
FY18-FY20 period.

 This share was low compared to many other countries and it also declined over time.

 Using budgetary data from 201 municipal corporations across India, the RBI report
calculated their overall revenue receipts — consisting of own tax revenue, own non-
tax revenue and transfers.

 In 2017-18 (actuals), it was estimated to be 0.61% of the GDP and according to

budget estimates for 2019-20, it increased slightly to 0.72% of the GDP.

 This was much smaller than Brazil's 7% and South Africa's 6%.

 Large variations can be observed if the municipal corporations' own tax revenue is
sliced State-wise.

 The own tax revenue of municipal corporations as a share of the State's GDP in 2017-
18 crossed the 1% mark in Delhi, Gujarat, Chandigarh, Maharashtra and Chhattisgarh,
while it was 0.1% or less in Karnataka, Goa, Assam and Sikkim.

 Another major issue with the municipal corporations' revenue-raising capabilities was
their dependence on property taxes.
 5

 In 2017-18, property taxes formed over 40% of the municipal corporations' own tax
revenue.

 Despite such dominance, property tax collection in India was much lower compared to
OECD (Organisation for Economic Co-operation and Development) countries due to
undervaluation, and poor administration, the report argues.

 Of the 13.27 lakh assessees in Chennai, only 6.94 lakh paid the property tax, while
6.33 lakh were yet to pay.

 The shortage of tax collectors has further impacted the revenues.

 The corporations are mostly dependent on transfers with their revenue-raising

potential being limited.

 Property taxes are not efficiently collected.

 The generated funds are mostly spent on revenue expenditure, leaving a much smaller
pie for capacity building.

 The first issue with respect to municipal elections is that they are not being held on
time.

 This is in violation of the Constitution.

 As per Jana Graha's Annual Survey of India's City-Systems 2023 study, over 1,400
municipalities did not have elected councils in place, as of September 2021

 The CAG's audit reports of 17 States on the implementation of the 74th Constitution
Amendment Act (74th CAA) observe that over 1,500 municipalities did not have
elected councils in place during the audit period of 2015-2021 across States.

 Among larger cities, the Greater Chennai Corporation had elections in 2022 after a
gap of nearly six years, and the Municipal Corporation of Delhi had elections after a
delay of seven months, while the municipal corporations of Mumbai and Bengaluru are
awaiting elections for over one and a half years and three years after the expiry of the
term of their previous elected councils.

 Second, where elections to urban local governments were held, in certain cases, councils
were not constituted, and elections of mayors, deputy mayors and standing
committees were delayed.
 6

 In Karnataka, there was a delay of 12-24 months in the formation of elected councils
after the declaration of election results in most of the 11 city corporations.

 As per reports, in 214 urban local governments (out of 304) in Karnataka, there was
a 26-month delay in the formation of councils and election of chairpersons and
standing committees for the first 2.5-year term, after election results were announced
in September 2018.

 Further, after the expiry of the first term of 2.5 years in May 2023, the same urban
local governments did not hold elections for chairpersons and standing committees for
more than eight months as of 2023.

 The delay in Chandigarh by comparison was 12 days.

 Summary data on the constitution of councils, and elections of mayors, deputy mayors
and standing committees are not available easily.

 Article 243U of the 74th CAA stipulates that the duration of urban local governments
is five years and that an election to constitute an urban local government should be
completed "before the expiry of its duration".

 Further, in case of dissolution of the elected council by the State, the election should
be held before the expiration of a period of six months from the date of its dissolution.

 Despite the Supreme Court stating in Suresh Mahajan v. State of Madhya Pradesh
(2022) that this constitutional mandate is inviolable, State governments do not hold
timely elections for urban local governments.

 Other challenges include:

 discretion of government officials in scheduling elections on time;

 the possibility of the State government exercising undue influence on officials to

delay elections;

 discretion of officials in identifying the presiding officer;

 the possibility of conflict of interest as the presiding officer may not be

independent; and

 the manual ballot paper-based process.

 A reform roadmap for timely, free, and fair elections is much needed.
 7

 The terms of mayors, deputy mayors and standing committees being less than five
years accentuates this challenge by necessitating frequent elections, sometimes even
annually.

 In India, 17% of cities including five of the eight largest ones have mayoral terms less
than five years.

 To deal with these challenges, State Election Commissions (SECs) need to play a far
more significant role.

 Articles 243K and 243ZA of the Constitution state that the superintendence,
direction, and control of the preparation of the electoral rolls for, and the conduct of,
all elections to panchayats and urban local governments shall be vested in SECs.

 Analysis of municipal legislation across 35 States and UTs reveals that while except for
Meghalaya, all States have constituted SECs, only 11 have empowered them to conduct
ward delimitation.

 The Supreme Court has emphasised that in the domain of elections to panchayats and
urban local governments under Part IX and Part IXA of the Constitution, SECs enjoy
the same status as the Election Commission of India.

 Unlike the Lok Sabha and State Assemblies, where there is a clear distinction between
the legislature and the executive, in the case of a municipality, the mayor heads both
the elected and the administrative wings of the city government.

 Patna High Court's order declared some provisions of the Bihar Municipal (Amendment)
Act, 2021 as unconstitutional.

 The 2021 amendment transferred the powers of appointment of Grade C and D

employees of municipalities from the Empowered Standing Committee of the
municipality to the State government-controlled Directorate of Municipal
Administration.

 The court held that these provisions violate the 74th Amendment since the
recentralization of power and the weakening of self-governance "are incompatible with
the idea, intent and design of the constitutional amendment”.
 8

New Localism

 New Localism refers to an arrangement where urban local governance is seen as

provided with a uniform framework under an order of central government.

 New Localism evolved in the U.K. in order to provide a uniform agenda and framework
for local governance throughout the nation.

 It was observed that in the absence of some uniform framework, the local governance
institutions developed various disabilities and there was widespread inconsistency in
regards to the functioning of such institutions.

 The Tony Blair govt. came out with a solution that was in the form of a framework in
which the structure and functions of local self-government institutions were specified
under an order of the central government and they were to be instructed to operate
as per the central government directives.

 Some concerns have been raised regarding the imperatives coming from the central
government for the local government institutions and it has been observed that in such
an arrangement decentralisation will be forced to reverse and take a backseat leading
to heavy centralisation and thus defeating the very purpose of local self-governance.

 However, New Localism has infused in many countries, and even though not
implemented fully but definitely does give some food for thought and bettering the
local self-governance.
 9

 It has been applied as a method of coordination between local governing institutions

across the country.

 It has provided for more autonomy for foundation hospitals.

 It has provided for a structural framework where service providers in a local region
coordinate with one another while executing their schemes.

 It has provided for a more comprehensive development at local areas as financial

management has become more active with better-forged relations with the centre.

 It has provided for a better networking arrangement through the various agencies
operational in a local area.

Global-Local Debate

 Global - Local debate refers to an ongoing debate in regard to development at local

levels what should be its guiding principles - The ideas and objectives developed at the
local levels or the technological urgencies that could be seen as leading the local level to
global development? Philosophers defending the idea of local attributes have favoured
the arrangement of locally conceived arrangements and locally developed technology.

 According to this group, the very concept of local arrangement is based on the idea of
immediateness and relevance.

 They believe that requirements fulfilled through local arrangements vary considerably
from area to area.

 It has been argued that a uniform arrangement in an environment of huge diversity

and valid clear-cut differences shall not be possible to achieve some uniform
arrangement for all local regions.

 Local arrangements work on the principle of relevance where readiness amongst the
people acts as the vehicle for implementation.

 Under this arrangement schemes developed locally gain high acceptance and is visible
and little is lost as there is little resistance.

 It has been further argued that under this local arrangement, local resources may be
employed in a more meaningful way and much time and resources may not be wasted
on training for implementation.
 10

 Participation under the local arrangement shall be more as a feeling of empowerment

and self-decision-making shall be present.

 The thinkers maintain that under such an arrangement quick identification shall be
possible and a more sensitive and responsive solution shall be possible.

 On the other hand, a group of thinkers pursuing the idea of a global arrangement,
opine that in the absence of a global perspective, a local region shall become myopic in
its vision and may witness a very slow rate of growth.

 The technological resource is a capital-extensive area and also an expression of

experiences, accidents, innovation, events of success and failures, etc that will help in
adopting benchmarks and best practices in local development.

 If any area shall try to keep itself closed to the experiences, innovations, etc of others
it may risk a lot being in such limited boundaries and may never think beyond/out of
the box than the ones prevailing in society.

 According to the Global thinkers the world is emerging as a global village and showing
an attitude of neglect towards this emerging trend shall be extremely risky and
undesirable for local development.

 It has been observed that local arrangements operate better when social and
technological readiness exists in regard to the factors of implementation.

 It has also been observed that development at the local level is promoted better in an
environment of local arrangement but at the same time technological appreciation
shall add to the purpose of the local authorities.

 It has been observed as well that technological import wherever seen useful shall be
customised to meet the local requirements so as to have higher acceptance and
minimize resistance to technological essentials.



 1

DAILY
CLASS NOTES
PUBLIC ADMINISTRATION

Lecture – 137
Law and Order
 2

Law and Order

Introduction

❖ The word 'police' is derived from the Greek word 'polis' meaning the State.

❖ The role and function of the police of a country are determined by the nature of the

State.

❖ During the reign of the Mughals, a regular police system was established and after the

uprising of 1857, the British, who were well-versed in the administration of justice,

introduced a number of changes in the police system.

❖ It was in 1861 that a police Act was enacted and a regular police system was

established in British India.

❖ The role and functioning of the police were identified and they were assigned the role

of strict disciplinarian and custodian of law and order to safeguard the interest of their

colonial regime.

❖ However, in the post-independence era, a series of radical changes were introduced in

the entire police system to tune the police system on modern lines.

❖ The police no doubt has improved its role and functioning to some extent, but

unfortunately the police over more than the last sixty years have not been in a position

to improve their image in society, which may be primarily because of their occupational

role, performance and the age-old statutes.

Reforms undertaken in Police

❖ Jan Maitri Police Stations in Kerala (Executive level)

➢ The Janamaithri Suraksha Project is a prestigious community policing initiative

which aims to give opportunities for the general public to join hands with the
Police to fight crime as well as to improve the security of the neighbourhood.
 3

➢ This project seeks the responsible participation of the citizens in crime prevention
at the level of the local community, conserving the resources, both of the
community and of the police, in fighting against crimes which threaten the
security of the community.

➢ Experience shows that by seeking the active cooperation of the public in the
performance of police duties, the process of Law Enforcement becomes far more
effective.

❖ Supreme Court Directive (Judicial level)

➢ For anybody who comes to file a police complaint, an FIR must be filed within
the first 24 hours.

❖ Replacement of age-old CrPC, IPC, CPC with Bhartiya Nyay Samhita (Legislature
level)

❖ Technology level

➢ Through social media, people can directly contact the police.

➢ Fingerprints/Bio-metric Data/ DNA Data bank.

➢ Many states have started taking the complaints online.

❖ Student Policing

➢ This is actively being undertaken in schools as schools nowadays have become a

breeding ground for drugs.

Law and Order during British Rule

❖ The foundations of contemporary police administration in India were laid during British
rule, particularly after the enactment of the Indian Police Act, 1861 which created an
organised system of constabulary.

❖ During the British rule, at the State level, the Inspector General of Police (IGP) exercised
control over the whole police force of the provincial government.

❖ The IGP was often a member of the Covenanted Civil Service, which is why even a few
ICS officers held the post of IGP.
 4

❖ At the district level, the IGP was assisted by the Superintendent of Police (SP).

❖ The SP as well as the Assistant Superintendents of Police (appointed in larger districts

to assist the SP) were Englishmen.

❖ A Subordinate police force, comprising Inspectors, Head Constables, Sergeants and

Constables, was also created.

❖ It may be recalled that the earlier system of police administration at the field level was

based on the office of the station officer or ‘darogah’.

❖ In the reorganized system of 1861, the darogah did not disappear, but he became a

sub-inspector subject to regular training and frequent inspections.

❖ Prior to the enforcement of the Indian Police Act, the Magistrate was the head of the

district police responsible for apprehending, trying and committing criminals.

❖ Under the modified arrangements, the Magistrate continued to occupy a position of

authority over the district, SP in matters of distribution and movements of the police,

preservation of order and repression of crime.

❖ But in matters of general organisation, including pay, clothing and training of the

police force, the district SP was placed under the orders of the IGP of the province.

❖ The Magistrate who had originally been a mere executive officer discharging police

functions, ceased to be a direct police functionary.

 5

❖ He remained an executive officer with control over police matters.

❖ He retained judicial authority in the administration of criminal justice which never had

belonged to his predecessor, the Mughal Faujdar

❖ District administration under the 1861 Act thus became a despotism. (Absolute Power)

❖ The Police Act of 1861 and the Code of Criminal Procedure 1861 strengthened the

position of the District Magistrate (DM) by giving him the power to exercise control

over the District police as well as over subordinate magistracy.

❖ This over-centralisation of authority in one official paved the way for administrative

despotism at the district level.

❖ The report of the Police Commission (1902 - 03) did not disturb the Supremacy of

the DM over the SP, though it expected the DM to interfere only rarely in the day-

to-day management of the police force or in the mode of conducting an investigation.

❖ The Commission recommended that the Police force should consist of:

➢ A European Service to be entirely recruited in England.

➢ A Provincial Service to be entirely recruited in India

➢ An Upper Subordinate Service comprising Head Constables and Constables.

➢ A Province was divided into ranges, each under a Deputy IGP.

❖ Most recommendations of the Police Commission were implemented by the provincial

governments.

❖ This resulted in substantial improvements in the recruitment, training, organization

and remuneration of police officers of various classes.

❖ In 1905, a new class of Indian Deputy Superintendents of Police was created to

perform duties similar to those of European Assistant Superintendents.

❖ Despite a few other reforms introduced in the police investigation procedures and the

organizational system, the broad pattern of police machinery remained unchanged

until the end of the British rule in India.

 6

❖ The Indian Penal Code of 1860 and the Code of Criminal Procedure of 1861, along

with other significant legislations such as the Indian Evidence Act, constituted the legal

framework of criminal justice administration that helped the police system to exercise

its functions effectively.

❖ These legal instruments became important components of the legacy of British rule in

India.

❖ A notable legacy of British rule in India was the introduction of the Rule of Law.

Organisation of Police Force

❖ The constitution of India provides that the police is the state subject.

❖ It is, therefore, the responsibility of the state to maintain peace and security within its

territorial jurisdiction.

❖ There are, however, certain situations which authorize the Centre to intervene in the

law and order problems of the State because the Centre is bound to protect the States

from internal disturbances.

❖ Primarily it is the duty of the State Government to maintain the civilian police force.

❖ Besides the State police force, there are certain police force establishments at the Union

level, such as the Border Security Force, the Railway Protection Force, the Central

Reserved Police Forces, and the Central Industrial Security Force.

❖ The constitution confers exclusive power on the States to control and regulate the

functioning of the police as the maintenance of law and order and police are State

subjects.

❖ The Central Government is concerned only with the administration of Central Police

Organizations.

❖ Though the Constitution of India enumerates the police as a State subject in the List,

it includes a long list of allied and quasi-police subjects in the Union List. E.g., preventive

detention, arms, ammunition, explosives, extradition, passport etc. are the sole

responsibility of the Central Government.

 7

❖ It also determines the selection and service conditions of all India Police Services.

❖ The selection and conditions of service of lower ranks is within the power of the State

Government.

Structure under the State Government

❖ The DGP reports to the Home Secretary, a career civil servant belonging to the IAS.

❖ The Home Secretary is accountable directly to the Chief Secretary, the head of the civil

service, and subsequently, to the Minister-in-charge of the Home Department, an

elected functionary who forms part of the Cabinet and is responsible to the State

Assembly.

❖ Earlier, an officer of the rank of Inspector-General of Police (IGP) headed each force.

❖ The level was upgraded to Director-General mainly to widen the career prospects of

IPS officers and, incidentally, to take into account the greater responsibility thrust on

the higher echelons in the context of heightened political and social tensions.
 8

❖ At the bottom of the pyramid is the Police Constable (PC), who constitutes the 'cutting

edge' of the force.

❖ Between him and the DGP, there are nine levels of officers.

❖ Each state has a police headquarters at the apex of the police administration which is

headed by the DGP who looks after the administration of the police force of the entire

state.

❖ The Police headquarters is constituted of several specialized police departments which

look after different specific functions of police.

❖ The various police departments or branches at the headquarters are generally headed

by one Additional Director General of police.

❖ There are generally the following branches:

➢ Criminal investigation department

➢ Intelligence

➢ Railway

➢ Administration

➢ Training

➢ Special armed force

➢ Provisioning and planning

➢ Telecommunication

➢ Complaints

➢ Special crime record bureau or computer

➢ A.J.K (Adim Jati Kalyan, branch for weaker section)

❖ As we have seen earlier police station is the basic unit of police.

District Police Administration

❖ Each state is divided into a number of districts for convenient civil administration.
 9

❖ The head of the District Police Force is the Superintendent of Police (SP) who is

accountable to the District Collector in matters of preservation of peace and control of

crime.

❖ The SP controls a large number of police stations (PS) - the lowest formation of the

local police machinery.

❖ Each station is headed by a Station House Officer (SHO) who could be of any rank but

is invariably a Sub-Inspector (SI) in a rural area, and an Inspector or Deputy

Superintendent (DSP) in a town.

❖ The extent of the geographical area covered by each police station varies from State to

State.

❖ On average, a rural station covers 100 sq. miles and an urban station, 25 sq. miles.

❖ The SHO is in charge of the administration of the Police station, the operation of their

staff, and other duties relating to the detection, investigation, and prevention of

offences.

❖ Under the Police Act of 1861, other officers of a higher rank than the SHO may

exercise the same powers as an SHO within their local area of appointment.

Police Station

❖ A Police Station is the nodal office of the Police through which the Police Department

carries out its statutory duties of prevention and detection of crime and maintenance

of law and order and all other allied functions within the ambit of these two broad

categories of work.

❖ Additionally, it serves as a 24-hour 365 days a year, interface point between police

and public.

❖ To carry out these vital functions, a police station consists of a building, official and

residential premises, manpower and equipment.

❖ However for a Police Station to exercise any legal powers, it has to be notified by the

Government with its exact geographical jurisdiction and location of the Police Station.
 10

❖ As per the Criminal Justice System existing in India, legal powers to initiate any action

against crime are dependent upon the place of occurrence of the incident.

❖ Hence for any Police Station to exercise any legal action, the crime should have occurred

in an area, which should have been notified as the area of jurisdiction of that Police

Station.

❖ Further, the State Government and not the Director General of Police exercises this

power of notification.

 1

DAILY
CLASS NOTES
PUBLIC ADMINISTRATION

Lecture - 138
Financial Administration and
Management
 2

Financial Administration and Management

Police Commissionerate

 A distinctive feature of the Indian Police is the commissionerate system that prevails

in major cities.

 Before Independence, this was available only in the three Presidency towns of Bombay,

Calcutta and Madras.

 Gradually, this has been extended to several others, including the nation's capital, New

Delhi.

 This system provides for greater freedom to the police from the Executive Magistrate

in the matter of crowd control and issue of licenses, such as those required for buying

arms and running cinema houses and hotels.

 In a typical commissionerate, the Commissioner (normally of the rank of Additional

DGP in major cities and IGP/DIG in the smaller ones) is assisted by one Additional and

several Joint Commissioners, each of whom looks after a geographical area or a specific

function, such as law and order, crime, traffic, etc.

 Next come the Deputy Commissioners (equivalent to a District SP) who have Assistant

Commissioners, Inspectors, Sub-Inspectors and the constabulary working under them.

 In the Police Commissioner system, a senior experienced and mature police officer is

directly in charge of policing and has complete authority over his force and is

functionally autonomous.

 He is directly accountable to the Government.

 Under the system, the public need not run to two different authorities i.e., District

Magistrate and Superintendent of Police, to process their application for licenses,

permits etc.

 This avoids delay and inconvenience to the public.

 The points mentioned above are examples of the differentiation concept of F.W. Riggs.
 3

Latest Reforms

 The Centre introduced three new bills in Lok Sabha on August 11 2023 to revamp
India's criminal justice system enacted by the British in 1860.

 There were recurring demands for overhauling the entire criminal justice system as it
was archaic and not in tune with contemporary times.

 The three bills, the Bharatiya Nyaya Sanhita Bill, 2023, the Bharatiya Sakshya Bill,
2023 and the Bharatiya Nagrik Suraksha Sanhita Bill, 2023 will replace the Indian
Penal Code, 1860; the Indian Evidence Act, 1972 and the Code of Criminal Procedure,
1973.

 The bills have been formulated with the aim of bringing a paradigm shift to ensure
speedy justice, and integrity of evidence for higher conviction and lower pendency.

 The bills have been referred to the Parliamentary Standing Committee for further
deliberations and the report may be tabled in the next session of Parliament.

 The Bhartiya Nyaya Sanhita (BNS) repeals 22 provisions of IPC, proposes changes to
175 existing_provisions and introduces nine new sections.

 It contains a total of 356 provisions.

 The Bharatiya Sakshya Bill (BSB) repeals five existing provisions of the Evidence Act,
proposes changes to 23 provisions and introduces one new provision.

 It contains 170 sections in total.

 The proposed bill permits witnesses, accused, experts and victims to appear via
electronic means.

 It also gives electronic evidence the same legal value as documents.

 The Bharatiya Nagarik Suraksha Sanhita (BNSS) repeals nine provisions of the CrPC,
proposes changes to 107 provisions and introduces nine new provisions.

 The bill contains a total of 533 sections.

 There are mixed views but one common refrain is that outdated laws of the colonial
era cannot be practised in modern times when the nature of crime, the psychology of
criminals and technology have changed drastically.
 4

 Provisions like 'zero FIR' and 'Deemed sanction' will expedite trials.

 Zero FIRs:

 When a police station receives a complaint regarding an alleged offence that has
been committed in the jurisdiction of another police station, it registers an FIR and
then transfers it to the relevant police station for further investigation.

 This is called a Zero FIR.

 No regular FIR number is given.

 After receiving the Zero FIR, the relevant police station registers a fresh FIR and
starts the investigation.

 While the courts have been progressive in dealing with socio-economic-cultural aspects
of crime, the executive and legislature needed to catch up.

 The world and society have transformed over the last few decades.

 Now with these proposals, the much-needed changes finally seem to be getting the
attention of the executive.

 The hallmark of the statutes is that they will bring the much-required changes to the
criminal justice system and ensure the delivery of justice within a maximum period of
three years.

 New offences such as organised crime, terrorism offences, endangering sovereignty,

mob lynching, sexual intercourse by deceitful means and false promise to marry, which
were absent in the Indian Penal Code, have been introduced in the proposed statute.

 The new bill envisages stricter punishment for crimes against women and children,
aims to decongest jails by releasing convicts who have served half their sentences and
fixes the accountability of police officers for arrests.

 Timebound trials, the introduction of summary trials (speedy trials) for petty crimes
as well as community service, and the provision for recording the statement of a victim
of sexual violence at her house by a woman magistrate are among the high points of
the bills.

 One of the key highlights of the bill is the provision of video-graphing at the time of
raids and during the process of investigation.
 5

 This will reduce the number of false cases being registered against innocent persons.
 The amendment in the Evidence Act with respect to electronic evidence is also a
welcome change.
 Stringent punishment for sexual assault on minors is a positive modification.
 Similarly, illegal arrests, arrests, illegal detention, and falsely implicating in criminal
cases will be reduced.
 The BNS Bill completely repeals the offence of sedition.
 The Bill, however, under Section 150, has provisions for 'Offences against the State'.
 Section 150 of the bill deals with "Acts endangering sovereignty, unity and integrity
of India" and provides for punishment in the form of imprisonment ranging from seven
years to life.
 Section 150 of the BNS, in fact, widens the ambit of the offence by including 'financial
transactions' and 'electronic communication'.
 A welcome step is the inclusion of phrases 'purposely or knowingly', which requires
‘mens rea’ or “criminal intent"
 A crucial but necessary change in the BNS is the provision for community service as
one of the punishments for petty crimes.
 Until now, the courts had exercised their discretion to order community service, but
now it will be a written law.
 Under Section 356 of the proposed BNSS, it has been provided that the trial can
proceed even if the accused is not present.
 This will help in trying criminals in absentia, especially the likes of famous absconders
such as Dawood Ibrahim, Vijay Mallya and Nirav Modi, to name a few.
 Section 187 of the BNSS, has increased the duration of police custody.
 The police custody can be spread over a period of up to 60 and even 90 days depending
upon the offence.

Financial Administration and Management

 Financial management relates to the system, which generates, regulates, and

distributes monetary resources needed for the sustenance and growth of organisations.

 Financial management is an important component of public systems management.

 6

 It plays an integrating role amongst the various functions of sales, production, plant
utilisation, etc., especially in the case of business enterprise, to generate information
relevant to management decision-making.

 Financial management assumes great significance for every government, as most of its
activities have a financial bearing.

 It is primarily related to the question of how the limited resources can be utilised to
the utmost and to achieve the maximum of national objectives.

Additional Information

 Fiscal deficit (FD) is the difference between the government’s total expenditure and
its total revenue (excluding borrowings).

 FD is beneficial for a developing country like India within a certain limit.

 However, it has to be seen whether the government is spending more on revenue

expenditure or capital expenditure.

 If FD is because of revenue expenditure it can lead to an increase in inflation and

depreciation of rupee.

 It leads to costlier imports of goods and thus the current account deficit increases.

 Due to this tax collection for the government reduces and thus the FD widens.

 A budget is a statement that provides a forecast of revenues and expenditures generally

for a period of one year.

 It reflects the activities of the government and the allocation of resources.

 The term budget is derived from the French word 'Baguette' which means a small
leather bag or pouch. It includes:

 a review of the revenues collected, expenditures incurred and changes in the

composition of the national debt and other matters during the fiscal year which
has immediately preceded the time when the budget is presented;

 an estimate of expenditure during the forthcoming year and the extent to which
it is expected to be covered at the existing tax rate; and

 proposals for such changes of tax remissions or increases as may be required to

balance the expenditure.
 7

Approaches to Budgeting

 The budget is not only a statement of income and expenditure but is a plan of action
for the year ahead that indicates programmes, activities etc. over time.

 The approach towards budgeting in a traditional sense is changing with emphasis on

performance.

 Some of them include planning and programming budgeting, performance budgeting,

zero-based budgeting and outcome-based budgeting.

 Planning Programming and Budgeting System (PPBS)

 PPBS is primarily a system to help decision-makers allocate resources.

 Planning refers to the definition of missions, goals and objectives, the identification
and evaluation of alternatives and the choices among the alternatives.

 Programming refers to the link between planning and budgeting.

 Coordination and Control element of POCCC.

 It involves the documentation of decisions on resources required and outputs to be

achieved, scheduled over the years involved in the planning period and the
accompanying information and documentation systems.

 Recording principle of POSDCoRB.

 Budgeting refers to the process of translating the decisions in the long-range-

planning format to the annual budget format with more precise measures of
inputs, price tags and outputs, which are possible and necessary when one is looking
only one year ahead.

 This approach to budgeting emphasises the important fact that planning,

programming and budgeting are interrelated to each other and together constitute
a system.

 This implies that budgeting cannot stand in isolation.

 The technique of performance budgeting attempts to assess the effectiveness of

each of the programmes/activities regarding output.

 It therefore involves the development of more refined tools such as work

measurement, performance standards, unit cost, etc.
 8

 Performance Budgeting

 According to the concept of performance budgeting, the annual budget is in

essence, a work plan specifying the programme targets to be achieved by the agency
concerned during the financial year.

 It emphasises the purposes for which funds are provided.

 It correlates the physical and financial aspects of each programme and activity, by
establishing a proper relationship between outputs and the corresponding inputs.

 The main purposes sought to be achieved by performance budgeting are to:

 Establish a correlation of the physical and financial aspects of every programme

and activity.

 Improve budget formulation, and review decision-making at all levels of

management in government.

 Economic Man/ Administrative Man at all levels.

 Facilitate better appreciation and review of the legislature.

 (System Theory).

 Make possible effective performance audits.

 Measure progress towards long-term objectives as envisaged in the plan.

 Integrate budgets and development plans. (Coordination)

 Development of Performance Budgeting in India

 In India, the Estimates Committee of Parliament made a suggestion in 1954

to introduce performance budgeting on the basis of the success of the operation
of performance budgeting in the U.S.A. (CPA)

 The Administrative Reforms Committee (ARC) in its report titled "Finance,

Accounts and Audit", recommended to the government that starting with the
1969-70 budget, performance budgeting should be introduced in all
departments and organisations of the government, which are in direct charge
of development programmes.
 9

 The recommendations of the ARC for the introduction of performance

budgeting were accepted by the Government of India which started
introducing it gradually in more and more of its developmental departments
with the budget for 1969-70 onwards.

 The position by now is that almost all the departments of the Government of
India prepare performance budgets every year and submit them to parliament.

 On the recommendations of the central government, all the state governments

also prepare performance budgets for development departments and submit
the documents to the legislature.



 1

VALUE ADDITION
CLASS NOTES
PUBLIC ADMINISTRATION

POLICE REFORMS
 2

POLICE REFORMS
Police reforms has been on the agenda of Governments almost since independence but even
after more than 50 years, the police is seen as selectively efficient, unsympathetic to the
under privileged.

It is further accused of politicization and criminalization. In this regard, one needs to note
that the basic framework for policing in India was made way back in 1861, with little
changes thereafter, whereas the society has undergone dramatic changes, especially in the
post independence times.

The public expectations from police have multiplied and newer forms of crime have
surfaced.

The policing system needs to be reformed to be in tune with present day scenario and
upgraded to effectively deal with the crime and criminals, uphold human rights and
safeguard the legitimate interests of one and all.

Committees / Commission on Police Reforms

Various Committees/Commissions in the past have made a number of important

recommendations regarding police reforms.

Notable amongst these are those made by the National Police Commission (1978-82); the
Padmanabhaiah Committee on restructuring of Police (2000); and the Malimath
Committee on reforms in Criminal Justice System (2002-03). Yet another Committee,
headed by Shri Ribero, was constituted in 1998, on the directions of the Supreme Court
of India, to review action taken by the Central Government/State Governments/UT
Administrations in this regard, and to suggest ways and means for implementing the
pending recommendations of the above Commission.

Constitutional Limitations of Central Government

“Police” being a State subject in the seventh schedule to the Constitution of India, it is

primarily the State Governments who have to implement the various police reforms

measures.
 3

The Centre has been making consistent efforts to persuade the States from time to time

to bring the requisite reforms in the Police administration to meet the expectations of the

people.

In this regard, the recommendations of the various Committees/Commissions were sent to

the State Governments/UT Administrations for taking necessary action.

Successive Union Home Ministers have been addressing the Chief Ministers/Administrators

of States/UTs in this regard.

Important recommendations of the various Committees/ Commissions and the

specific action taken by the Central Government

Reports of The National Police Commission

The National Police Commission (NPC) was constituted in 1977 to study the problems of

police and make a comprehensive review of the police system at national level.

The NPC dealt with wide range of aspects of police functioning.

The National Police Commission submitted eight reports during the period February 1979

to May 1981.

The first report was laid on the Table of Lok Sabha on 1.2.1980.

The remaining seven reports were released in March 1983 with the specific directive from

the Central Government to all State Governments/UT Administrations that these reports

may be examined quickly and appropriate action taken.

The Central Government took initiatives in persuading the State Governments/UTs to

implement the recommendations of the National Police Commission.

The major recommendations of the NPC to amend the Code of Criminal procedure 1973

were considered in the Chief Minister’s Conference on the Administration of Criminal

Justice System held on 13th November 1992.

The Code of Criminal Procedure (Amendment) Bill 1994 introduced in the Rajya Sabha

had, inter alia, contained these recommendations.

 4

This Bill was passed in the Rajya Sabha on 4.5.2005 and in Lok Sabha on 9.5.2005

respectively.

Other important recommendations of NPC for revision of syllabus for IPS probationers

trainees / augmentation of DCPW have already been implemented and a new Bill for

regulation of private security agencies has since been passed by the Parliament and become

an Act.

Reports of the Ribero Committee

On the directions of the Supreme Court of India in the case of Prakash Singh vs Union of

India and others pertaining to implementation of the recommendations of the National

Police Commission, the Government had on 25th May, 1998, constituted a Committee

under the Chairmanship of Shri J.F. Ribeiro, IPS (Retd.).

The Ribeiro Committee submitted two reports which were filed in the Supreme Court

during 1998 and 1999, respectively.

The Rebeiro Committee endorsed the recommendations of the NPC with certain

modifications.

The case came up for hearing on 10.2.2005 and the Hon’ble Court directed Union of India

and respective State Governments including NHRC to file their responses with regard to

the direction issued in the Vineet Narain case and implementation of recommendations of

Rebeiro Committee.

Report of the Padmanabhaiah Committee on Police Reforms

Government had set up a Committee in January, 2000 under the Chairmanship of Shri

K. Padmanabhaiah, former Union Home Secretary, to suggest the structural changes in

the police to meet the challenges in the new millennium.

The Committee submitted its report to the Government on 30.8.2000.

In all, there are about 240 recommendations made by the Committee.

 5

Out of 240 recommendations of the Committee, 23 recommendations regarding review

of allocation of cadre policy, direct IPS officers to be given charge of district, to post
IAS/IPS as judicial magistrate, police commissioners system in cities, division of NICFS,
compulsory retirement to those not empanelled as DIG, review of cadre allotment policy
of IPS for NE, recruitment of Constables and sub-Inspectors from the boys who have passed
10th & 12th Examination and giving them 2/3 years training in Police training
Schools/Police Training Colleges respectively, maximum age of entry of IPS to be reduced
to 24 years and federal offences etc were not accepted, after examination.

As many as 154 recommendations pertaining to recruitment, training, reservation of

posts, involvement of public in crime prevention, recruitment of police personnel,
delegation of powers to lower ranks in police, revival of beat system, use of traditional
village functional village functionaries, police patrolling on national and state highways,
designs of the police stations, posting and transfer of SP and above etc. were found to be
such that they can be implemented without any structural changes.

Malimath Committee on Reforms in the Criminal Justice System

Government had set up (November, 2000) a Committee under the Chairmanship of Dr.
(Justice) V.S. Malimath, a former Chief Justice of the Karnataka and Kerala High Courts
to consider and recommend measures for revamping the Criminal Justice System.

The Malimath Committee submitted its report in April, 2003 which contained 158
recommendations.

These pertain to strengthening of training infrastructure, forensic science laboratory and

Finger Print Bureau, enactment of new Police Act, setting up of Central Law Enforcement
agency to take care of federal crimes, separation of investigation wing from the law and
order wing in the police stations, improvement in investigation by creating more posts,
establishment of the State Security Commission, etc.

MHA Committee to review the various recommendations and the follow up taken:

Hon’ble Prime Minister, while interacting with DGPs / IGPs in 2004, appreciated the need

for police reforms and declared that a Committee would be constituted to review the status

of implementation of recommendations made by the various Commission/Committees.

 6

Accordingly a Committee was constituted by MHA in December 2004 to look into this

aspect.

The Committee short-listed 49 recommendations from out of the recommendations of the

previous Commission/Committees on Police Reforms as being crucial to the process of

transforming the police into a professionally competent and service oriented organization.

These 49 recommendations mainly pertain to:

❖ improving professional standards of performance in urban as well rural police stations,

❖ emphasizing the internal security role of the police,

❖ addressing the problems of recruitment, training, career progression and service

conditions of police personnel,

❖ tackling complaints against the police with regard to non-registration of crime, arrests,

etc. and

❖ insulating police machinery from extraneous influences.

The report of the Review Committee was sent to all State Governments/UTs

Administrations to initiate action on the recommendations concerning them and to initiate

action on regular basis on the same.

The implementation of these recommendations in the States were reviewed twice with the

Chief Secretaries and DGPs of all the States by the Union Home Secretary in September

2005 and February 2006.

The Committee of Secretaries under the Cabinet Secretary also reviewed the progress of

implementation of these recommendations on 20.9.2005, 28.9.2005 and 17.2.2006 and

also suggested milestones to be achieved in a time bound manner.

Ministry of Home Affairs also constituted a Sub-Committee of the National Integration

Council to examine the feasibility of the 49 recommendations identified by the Review

Committee.

The Sub-Committee of National Integration Council has seven Chief Ministers, three

eminent persons as members apart from Union Law Minister.

 7

A Meeting of this Committee was held on 29th July, 2006 under the chairmanship of

Union Home Minister and it was stressed that there is an urgent need for adopting the

right perspective towards Police Reforms and for strengthening the intelligence system,

imparting special training to police personnel and making them responsible.

Expert Committee to draft a New Model Police Act:

As one of the recommendations of Review Committee was replacement of Police Act, 1861,

the Ministry of Home Affairs set up an Expert Committee to draft a new Model Police Act

in September, 2005.

The Committee submitted a model Police Act on 30th October, 2006.

The Model Police Act emphasized the need to have a professional police ‘service’ in a

democratic society, which is efficient, effective, responsive to the needs of the people and

accountable to the Rule of Law.

The Act provided for social responsibilities of the police and emphasizes that the police

would be governed by the principles of impartiality and human rights norms, with special

attention to protection of weaker sections including minorities.

The other salient features of Model Police Act include:-

1. Functional autonomy: While recognising that the police is an agency of the State and

therefore accountable to the elected political executive, the Committee has specifically

outlined the role of Superintendence of the State Government over the police. The

Model Police Act suggested creation of a State Police Board, Merit-based selection and

appointment of the Director General of Police, ensuring security of tenures, setting up

of Establishment Committees,

2. Encouraging professionalism: To ensure an efficient, responsive and professional police

service, the Model Act sought earmarking dedicated staff for crime investigation; and

distinct cadre for Civil police vis-à-vis Armed Police,

3. Accountability paramount: the Act prioritised police accountability, both for their

performance and their conduct.

 8

4. Improved service conditions: The Act also aimed to provide better service conditions to
the police personnel including rationalising their working hours, one day off in each
week, or compensatory benefits in lieu. It suggested creation of a Police Welfare Bureau
to take care, inter alia, of health care, housing, and legal facilities for police personnel
as well as financial security for the next of kin of those dying in service. It further
mandates the government to provide insurance cover to all officers, and special
allowances to officers posted in special wings commensurate with the risk involved.

Forwarding of copies of the Draft Police Act to States/UTs :

A copy of draft Model Police Act as framed by the Committee has been sent to States for
consideration and appropriate action vide Home Secretary d.o. letter dated 31st October,
2006.

As per available information, 15 State Governments, viz., Assam, Bihar, Chhattisgarh,

Haryana, Himachal Pradesh, Kerala, Meghalaya, Mizoram, Punjab, Rajasthan, Sikkim,
Tripura and Uttarakhand have formulated their State Police Acts and 02 State
Governments, viz., Gujarat and Karnataka have amended their existing Police Acts (total
15 State Governments have either formulated State Police Acts or amended their existing
Police Acts).

Supreme Court judgment on 22.9.2006 on Police Reforms and the follow up action:

The Supreme Court of India has passed a judgement on September 22, 2006 in Writ
Petition (Civil) No.310 of 1996 – Prakash Singh and others vs UOI and others on several
issues concerning Police reforms.

The Court in the said judgement directed the Union Government and State Governments
to set up mechanisms as directed by December 31, 2006 and file affidavits of compliance
by January 3, 2007.

The directions inter-alia were:

1. Constitute a State Security Commission on any of the models recommended by the

National Human Right Commission, the Reberio Committee or the Sorabjee Committee.
2. Select the Director General of Police of the State from amongst three senior-most
officers of the Department empanelled for promotion to that rank by the Union Public
 9

Service Commission and once selected, provide him a minimum tenure of at least two
years irrespective of his date of superannuation.
3. Prescribe minimum tenure of two years to the police officers on operational duties.
4. Separate investigating police from law & order police, starting with towns/ urban
areas having population of ten lakhs or more, and gradually extend to smaller
towns/urban areas also,
5. Set up a Police Establishment Board at the state level for inter alia deciding all
transfers, postings, promotions and other service related matters of officers of and
below the rank of Deputy Superintendent of Police, and
6. Constitute Police Complaints Authorities at the State and District level for looking into
complaints against police officers.
7. The Supreme Court also directed the Central Government to set up a National Security
Commission at the Union Level to prepare a panel for being placed before the
appropriate Appointing Authority, for selection and placement of Chiefs of the Central
Police Organisations (CPOs), who should also be given a minimum tenure of two years,
with additional mandate to review from time to time measures to upgrade the
effectiveness of these forces, improve the service conditions of its personnel, ensure that
there is proper coordination between them and that the forces are generally utilized
for the purposes they were raised and make recommendations in that behalf.

Out of the above seven directives, the first six were meant for the State Governments and
Union Territories while the seventh directive related solely to the Central Government.

The matter was heard successively on different dates.

On May 16, 2008, Hon’ble Supreme Court, as regards the implementation of the various
directions made earlier in its judgement dated September 22, 2006, directed to set up a
Committee under the Chairmanship of Justice K.T. Thomas, former retired Judge of the
Supreme Court and two other Members.

The Terms of Reference for the Committee, inter-alia, included - to examine the affidavits
filed by the different States and the Union Territories in compliance to the Court’s
directions with reference to the ground realities; advise the Respondents wherever the
 10

implementation is falling short of the Court’s orders, after considering the Respondents’
stated difficulties in implementation; bring to the notice of the Court any genuine problems
the Respondents may be having in view of the specific conditions prevailing in a State or
Union Territory etc. This Committee’s term initially was directed for a period of two years.

The Committee submitted its report to Hon’ble Supreme Court and the said report has
been circulated to States/ Union Territories by the Registry of Supreme Court on
04.10.2010.

Implementation of Supreme Court’s Judgment dated 22.9.06 by MHA

The Government considered the matter as regards the directions pertaining to National
Security Commission.

The Union Government vide order dated 02.01.2007 set up a Committee on National
Security and Central Police Personnel Welfare.

The composition of the Committee is as under:

❖ Union Home Minister Chairman

❖ National Security Advisor Member
❖ Cabinet Secretary Member
❖ Union Home Secretary Member
❖ Director, IB Member
❖ Terms of Reference of the Committee are
(i) to prepare a panel of police officers for appointing as Head of Central Para Military
Forces,
(ii) to review issues pertaining to the service conditions of the Central police personnel
and
(iii) to make appropriate recommendations thereon and also to review and make
recommendation on any other matter relevant or incidental to the above, referred
to by the Government of India.

