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Local Governance

Context: In 1992 the Parliament of India of India passed 73rd and 74th constitutional amendments, which instituted panchayats and municipalities. These reforms have now complete 30 years.

Why Local governance is Important?

• First, it provides for effective provision of public goods since governments with smaller jurisdictions can provide services as per the preferences of their residents.
• Second, Decentralisation promotes deeper democracy since governments that are closer to the people allow citizens to engage with public affairs more easily.
• Local governance sought to institute a third-tier of governance in the federal framework through the devolution of functions, functionaries and funds to local governments.

Provisions of 73^rd and 74^th Constitutional Amendment

Even though local governments derive their authority directly from the Constitution, these reforms, municipal governments are often seen to be ineffective in addressing even the most basic needs of citizens, such as reliable water supply and walkable footpaths.

Major Reasons for the ill-functioning of local Governance

1.The 73^rd amendment Act had divided the Provisions under Compulsory and Voluntary.

• Compulsory Provisions are mandatory while the Voluntary are optional and discretion of devolving such areas to panchayat is with the state government.
• There has been very little devolution of authority and functions in the provision of education, health, sanitation, and water in the last 30 years.
• PRIs cannot govern unless they are given the authority to actually perform functions related to governance.

2. Lack of Finance

• Local bodies can either raise their own revenue through local taxes or receive intergovernmental transfers.
• The 73th Amendment recognized both forms of public finance but neither of them is compulsory provision.
• When it comes to intergovernmental transfers, the recommendations of State Finance commission on devolution is only advisory.
• Finance commissions have advocated for greater devolution of funds, there has been little action by states to devolve funds.
• States are reluctant to implement the 74th amendment as cities are economic powerhouses and controlling urban land is important for financing State governments.

3. Social Challenges

• The constitution has provided for one-third of women’s reservation but the emergence of ‘Sarpanch Pati’ or Pradhan Pati has diluted the effectiveness of the measure.

Way Forward

The 2^nd ARC recommended the clear cut demarcation of every tier of the government. It also recommended that the state Governments should encourage local bodies to outsource specific functions to public or private agencies, as may be appropriate, through enabling guidelines and support. The government is also taking steps such as E-Swaraj, Digital India and Gram Panchayat Development Plan to ensure smooth and efficient functioning of these bodies.