Local Governance: 73rd and 74th Constitutional Amendments.Types of Urban local bodies and Panchayati Raj institutions in India.Sources of Finance in Urban Local Bodies and Panchayati Raj Institutions.

Panchayats And Municipalities

Panchayats

Village Panchayat

In the structure of the Panchayati Raj, the Village Panchayat is the lowest unit. There is a Panchayat for each village or a group of villages in case the Population of these villages happens to be too small. The Panchayat chiefly consists of representatives elected by the people of the village.

Only the persons who are registered as voters and do not hold any Office of Profit under the government are eligible for election to the Panchayat. The persons convicted by the court for criminal offences are disqualified from election of the Panchayat.

There is also provision for co-option of two Women and one member of the Scheduled Castes and Scheduled Tribes, if they do not get adequate representation in the normal course.  The Panchayat as a body is accountable to the general body of the village known as Gram Sabha which meets at least twice a year. The Gram Panchayat must present its budget, accounts of the previous year and annual administrative report before the Gram Sabha. Furthermore, it has to secure the latter’s approval of the village production plan, proposals for Taxation and development programmes before they are enforced by the Panchayat.

Every Panchayat elects a President or Sarpanch and a Vice-President or Upsarpanch. In some states the Sarpanch is directly elected by the Gram Sabha either through the show of hands or through secret ballot while in other states the mode of election is indirect.  The Sarpanch occupies a pivotal position in Gram Panchayat system. He supervises and coordinates the various activities of the Panchayat.  He is an ex-officio member of the Panchayat Samiti and participates in its decision-making as well as in the election of the Pradhan and of the members of various Standing Committees. He acts as the executive head of the Panchayat, represents it in the Panchayat Samiti as its spokesman and coordinates its activities and those of other local institutions like cooperatives.

Panchayat Samiti

The Panchayat Samiti is the second on join tier of the Panchayati Raj. The Balwant Rai Mehta Committee report has envisaged the Samiti as a single representative and vigorous democratic institution to take charge of all aspects of development in rural areas. The Samiti, according to the Committee, offers “an area large enough for functions which the Village Panchayat cannot perform and yet small enough to attract the interest and Services of residents.”

Usually a Panchayat Samiti consists of 20 to 60 villages depending on area and population. The Average population under a Samiti is about 80,000 but the range is from 35,000 to 1, 00,000. The Panchayat Samiti generally consists of-

  • About twenty members elected by and from the Panches of all the Panchayats falling in the block area;
  • Two women members and one member each from the Scheduled Castes and Scheduled Tribes to be co- opted, provided they do not get adequate representation otherwise;
  • Two local persons possessing experience of public life and administration, which may be beneficial for the rural development;
  • Representatives of the Co-operatives working within the jurisdiction of the block;
  • one representative elected by and from the members of each small Municipality lying within the geographical limits of a block;
  • the members of the State and Union legislatures representing the area are to be taken as associate members.

Zilla Parishad

The Zilla Parishad stands at the apex of the three-tier structure of the Panchayati Raj system. Generally, the Zilla Parishad consists of representatives of the Panchayat Samiti; all the members of the State Legislature and the Parliament representing a part or whole of the district; all district level officers of the Medical, Public Health, Public Works, Engineering, agriculture, Veterinary, Education and other development departments.

There is also a provision for special representation of women, members of Scheduled Castes and Scheduled Tribes provided they are not adequately represented in the normal course. The Collector is also a member of the Zilla Parishad.

The Chairman of the Zilla Parishad is elected from among its members. There is a Chief Executive Officer in the Zilla Parishad. He is deputed to the Zilla Parishad by the State Government. There are subject matter specialists or officers at the district level in all the states for various development programmes.

The Zilla Parishad, for the most part, performs co-ordinating and supervisory functions. It coordinates the activities of the Panchayat Samitis falling within its jurisdiction. In certain states the Zilla Parishad also approves the budgets of the Panchayat Samitis.  The Zilla Parishad also renders necessary advice to the Government with regard to the implementation of the various development schemes. It is also responsible for the maintenance of primary and secondary schools, hospitals, dispensaries, minor Irrigation works etc. It also promotes local industries and art.

The finances of the Zilla Parishad consist of the grants received from the State Government and share in the land cess and other local cess and taxes. Sometimes it has been allowed by the State Government to levy certain taxes or enhance the taxes already levied by the Panchayat Samitis subject to a certain limit.

Municipalities

 

74th Constitutional Amendment added a new part IX-A to the Constitution entitled as ‘The Municipalities’ and a new Twelfth Schedule containing 18 functional items for municipalities. The main provisions of this Act can be grouped under two categories–compulsory and voluntary.

Some of the compulsory provisions which are binding on all States are:

  • Constitution of Nagar panchayats, municipal councils and municipal corporations in transitional areas (areas in transition from a rural area to urban area), smaller urban areas and larger urban areas respectively;
  • Reservation of seats in Urban Local Bodies for Scheduled Castes / Scheduled Tribes roughly in proportion to their population; Reservation of seats for women up to one-third seats;
  • The State Election Commission, constituted in order to conduct Elections in the panchayati raj bodies (see 73rd Amendment) will also conduct elections to the urban local self- governing bodies;
  • The State Finance Commission, constituted to deal with financial affairs of the Panchayati Raj bodies will also look into the financial affairs of the local urban self governing bodies;
  • Tenure of urban local self-governing bodies is fixed at five years and in case of earlier Dissolution fresh elections are to be held within six months;

Composition

The Municipal bodies are constituted of persons chosen by direct election from the territorial constituencies (known as wards) in the municipal area.  However, the Legislature of a State may, by law, provide for the representation in a municipal body of persons having special knowledge or experience of municipal administration, the members of Rajya Sabha, Lok Sabha and the members of Legislative Council and Legislative Assembly of the State, representing constituencies, which comprise wholly or partly the Municipal Area.The state legislature may also provide the manner of the election of the Chairpersons of a municipality.  The state legislature may also provide the manner of the election of the Chairpersons of a municipality.

Empowerment of weaker sections of Society and women by reserving seats for such groups is one of the important constitutional provisions of the Constitutional Amendment.  The offices of chairperson are also reserved for SC/ST and women. Thus, at least one year, out of five year duration of Municipal Corporation of Delhi, the office of Mayor is reserved for a woman, and for one year is reserved for a Councillor of Scheduled Caste. It gives a term of five years to the municipalities and if any of them is to be dissolved, it must be given an opportunity of being heard.

 

The 73rd and 74th Constitutional Amendment Acts, 1992, which gave Constitutional status to panchayati raj institutions (PRIs) and urban local bodies (ULBs) respectively, in both letter and spirit in order to bring about greater decentralisation and increase the involvement of the community in planning and implementing schemes and, thus, increase accountability.

The Amendments left important matters such as implementation, service delivery (including local capacity building) and transfer of responsibilities and powers to rural local bodies at the discretion of the state legislatures. Consequently, while expenditure responsibilities of local bodies are extensively enhanced, there is no law to ensure a corresponding assignment of funds to match the additional responsibilities.

Panchayats and Municipalities will be “institutions of self-government”.

1. Basic units of democratic system-Gram Sabhas (villages) and Ward Committees (Municipalities) comprising all the adult members registered as voters.

2. Three-tier system of panchayats at village, intermediate block/taluk/mandal and district levels except in States with population is below 20 lakhs (ARTICLE 243B).

3. Seats at all levels to be filled by direct elections [Article 243C (2)].

4. Seats reserved for Scheduled Castes (SCs) and Scheduled Tribes (STs) and chairpersons of the Panchayats at all levels also shall be reserved for SCs and STs in proportion to their population.

5. One-third of the total number of seats to be reserved for women. One third of the seats reserved for SCs and STs also reserved for women. One-third offices of chairpersons at all levels reserved for women (Article 243D).

6. Uniform five year term and elections to constitute new bodies to be completed before the expiry of the term. In the event of dissolution, elections compulsorily within six months (Article 243E).

7. Independent Election Commission in each State for superintendence, direction and control of the electoral rolls (Article 243K).

8. Panchayats to prepare plans for Economic Development and social Justice in respect of subjects as devolved by law to the various levels of Panchayats including the subjects as illustrated in Eleventh Schedule (Article 243G).

9. 74th Amendment provides for a District Planning Committee to consolidate the plans prepared by Panchayats and Municipalities (Article 243ZD).

10. Funds: Budgetary allocation from State Governments, share of revenue of certain taxes, collection and retention of the revenue it raises, Central Government programmes and grants, Union Finance Commission grants (Article 243H).

11. Establish a Finance Commission in each State to determine the principles on the basis of which adequate financial Resources would be ensured for panchayats and municipalities (Article 243I).

 

The civic functions relating to sanitation, cleaning of public roads, drains and ponds, public toilets and lavatories, primary health care, vaccination, supply of drinking water, constructing public wells, street lighting, social health and primary and adult education, etc. are obligatory functions of village panchayats. The optional functions depend on the resources of the panchayats. They may or may not perform such functions as tree plantation on road sides, setting up of breeding centres for cattle, organising child and maternity welfare, promotion of agriculture, etc.

The State Finance Commissions are required to recommend financial support from the state and principles for determination of taxes, tolls and fees that could be assigned to or appropriated by the local bodies

Article 243I of the Indian Constitution prescribes that the Governor of a State shall, as soon as may be within one year from the commencement of the Constitution (Seventy-third Amendment) Act, 1992, and thereafter at the expiration of every fifth year, constitute a Finance Commission to review the financial position of the Panchayats and to make recommendations to the Governor as to

The principles which should govern

  1. The distribution between the State and the Panchayats of the net proceeds of the taxes, duties, tolls and fees leviable by the State, which may be divided between them under this Part and the allocation between the Panchayats at all levels of their respective Shares of such proceeds;
  2. The determination of the taxes, duties, tolls and fees which may be assigned as, or appropriated by, the Panchayats;
  3. The grants-in-aid to the Panchayats from the Consolidated Fund of the State;

,

Local Governance in India

Local governance is the process of governing at the local level. It involves the participation of citizens in decision-making and the delivery of services to the community. Local governance is important because it helps to ensure that the needs of local people are met and that resources are used efficiently.

In India, local governance is carried out by a variety of institutions, including Panchayati Raj Institutions (PRIs) and Urban Local Bodies (ULBs). PRIs are local self-government institutions that are responsible for rural areas. ULBs are local self-government institutions that are responsible for urban areas.

The 73rd and 74th Constitutional Amendments of 1992 were landmark legislation that strengthened local governance in India. The 73rd Amendment provided for the establishment of PRIs at the village, intermediate, and district levels. The 74th Amendment provided for the establishment of ULBs in all urban areas with a population of 30,000 or more.

The 73rd and 74th Amendments also provided for the devolution of powers and functions to PRIs and ULBs. This means that these institutions have the authority to make decisions and deliver services in a number of areas, including health, education, sanitation, and water supply.

The 73rd and 74th Amendments have had a significant impact on local governance in India. They have led to the establishment of PRIs and ULBs in all parts of the country, and they have devolved powers and functions to these institutions. This has helped to improve the delivery of services to local people and to increase citizen participation in decision-making.

However, there are a number of challenges that still need to be addressed in order to strengthen local governance in India. One challenge is the lack of financial resources for PRIs and ULBs. Another challenge is the lack of capacity among these institutions to deliver services effectively. Finally, there is a need to improve coordination between PRIs and ULBs, as well as between these institutions and the state and central governments.

Despite these challenges, local governance is an important part of the Indian Democracy. It is essential to ensure that the needs of local people are met and that resources are used efficiently. The 73rd and 74th Amendments have made a significant contribution to strengthening local governance in India, and there is still more that can be done to improve this important area of governance.

Types of Urban Local Bodies and Panchayati Raj Institutions in India

There are six types of ULBs in India: municipal corporations, municipal councils, town municipalities, notified areas committees, town area committees, and cantonment boards. Municipal corporations are the largest type of ULB, and they are responsible for the administration of cities with a population of more than one million. Municipal councils are responsible for the administration of towns with a population of between 100,000 and one million. Town municipalities are responsible for the administration of towns with a population of between 20,000 and 100,000. Notified areas committees are responsible for the administration of areas that have been notified by the state government as being in need of urban development. Town area committees are responsible for the administration of areas that have been declared as town areas by the state government. Cantonment boards are responsible for the administration of cantonments, which are areas that are set aside for the use of the armed forces.

There are three types of PRIs in India: panchayats, municipalities, and district panchayats. Panchayats are the lowest level of PRI, and they are responsible for the administration of villages. Municipalities are the intermediate level of PRI, and they are responsible for the administration of towns. District panchayats are the highest level of PRI, and they are responsible for the administration of districts.

Sources of Finance in Urban Local Bodies and Panchayati Raj Institutions

The sources of finance for ULBs and PRIs include:

  • Taxes: ULBs and PRIs can levy taxes on property, vehicles, and other items.
  • Grants from the central and state governments: The central and state governments provide grants to ULBs and PRIs to help them meet their expenses.
  • Loans from financial institutions: ULBs and PRIs can borrow Money from financial institutions to finance their projects.
  • User charges: ULBs and PRIs can charge users for services such as water supply, sanitation, and electricity.
  • Other sources, such as fees and fines: ULBs and PRIs can also generate revenue from other sources, such as fees and fines.

Local Governance: 73rd and 74th Constitutional Amendments

The 73rd and 74th Constitutional Amendments were passed in 1992. They are known as the Panchayati Raj and Nagarpalika Amendments, respectively. The 73rd Amendment deals with rural local bodies, while the 74th Amendment deals with urban local bodies.

The amendments provide for the establishment of three-tier Panchayati Raj institutions at the village, intermediate, and district levels. They also provide for the establishment of municipalities and municipal corporations at the urban level.

The amendments empower local bodies to function as institutions of self-government. They also provide for the devolution of powers and functions to local bodies.

The amendments have been hailed as a major step towards Decentralization and empowerment of local communities. They have also been credited with improving the delivery of services at the local level.

Types of Urban local bodies and Panchayati Raj institutions in India

There are three types of urban local bodies in India: municipalities, municipal corporations, and cantonment boards.

Municipalities are the smallest type of urban local body. They are responsible for providing basic services such as water supply, sanitation, and street lighting.

Municipal corporations are larger than municipalities. They are responsible for providing the same basic services as municipalities, as well as additional services such as public transport, education, and healthcare.

Cantonment boards are responsible for providing services to the residents of cantonments, which are military bases.

There are three types of Panchayati Raj institutions in India: panchayats, panchayat samitis, and zilla parishads.

Panchayats are the smallest type of Panchayati Raj institution. They are responsible for providing basic services such as water supply, sanitation, and street lighting.

Panchayat samitis are larger than panchayats. They are responsible for providing the same basic services as panchayats, as well as additional services such as public transport, education, and healthcare.

Zilla parishads are the largest type of Panchayati Raj institution. They are responsible for providing the same basic services as panchayat samitis, as well as additional services such as planning and development.

Sources of Finance in Urban Local Bodies and Panchayati Raj Institutions

The main sources of finance for urban local bodies and Panchayati Raj institutions are:

  • Taxes: Urban local bodies and Panchayati Raj institutions can levy taxes on property, vehicles, and other items.
  • Grants: The central and state governments provide grants to urban local bodies and Panchayati Raj institutions.
  • Loans: Urban local bodies and Panchayati Raj institutions can borrow money from banks and other financial institutions.
  • User charges: Urban local bodies and Panchayati Raj institutions can charge user fees for services such as water supply, sanitation, and street lighting.
  • Other sources: Urban local bodies and Panchayati Raj institutions can also generate revenue from other sources, such as leasing land and selling assets.

Question 1

Which of the following is not a type of urban local body in India?

(A) Municipal Corporation
(B) Nagar Panchayat
(C) Gram Panchayat
(D) Cantonment Board

Answer

(C) Gram Panchayat is a type of rural local body, not an urban local body.

Question 2

Which of the following is not a SOURCE OF FINANCE for urban local bodies in India?

(A) Taxes
(B) Grants from the central government
(C) Loans from banks
(D) Income from user charges

Answer

(B) Grants from the central government are a source of finance for Panchayati Raj institutions, not urban local bodies.

Question 3

Which of the following is not a function of urban local bodies in India?

(A) Providing water supply
(B) Maintaining sanitation
(C) Collecting taxes
(D) Providing education

Answer

(D) Providing education is a function of the state government, not urban local bodies.

Question 4

Which of the following is not a feature of the 73rd and 74th Constitutional Amendments?

(A) Decentralization of power
(B) Introduction of Panchayati Raj institutions
(C) Reservation of seats for women and SC/STs
(D) Introduction of Nagarpalika Act

Answer

(D) The Nagarpalika Act is a law passed by the state government, not a feature of the 73rd and 74th Constitutional Amendments.

Question 5

Which of the following is not a level of government in India?

(A) Central government
(B) State government
(C) Local Government
(D) Panchayat Raj institution

Answer

(D) Panchayat Raj institutions are not a level of government in India. They are local self-government institutions.