Chapter 8 Local Governments

Introduction

In a democratic country, having elected governments at the national and state levels is crucial, but it's equally important to have elected governance at the local level. These local governments are responsible for managing local affairs.

This chapter will explore the structure of local government in India, highlighting its significance and discussing how it can be empowered with independent authority.

Upon completing this chapter, you will understand:

• The importance of local government institutions.
• Key provisions introduced by the 73rd and 74th constitutional amendments related to local self-governance.
• The roles and responsibilities assigned to local government bodies.

Why Local Governments?

Local government operates at the village and district levels, making it the layer of administration closest to the general public. It directly deals with the daily lives and issues faced by ordinary citizens.

The philosophy behind local government is that local knowledge and interests are vital for effective and democratic decision-making. It also promotes efficient administration that is responsive to people's needs. The proximity of local government makes it convenient and less costly for people to seek solutions to their problems quickly.

Stories like that of Geeta Rathore, a Sarpanch in Madhya Pradesh re-elected for her impactful work in village development, environmental issues, and social problems, demonstrate how empowered local leaders can drive significant change. Similarly, the Gram Panchayat of Vengaivasal village in Tamil Nadu successfully defended its right to decide the fate of its land against a directive from higher authorities through legal action, highlighting the potential of local bodies to protect community interests.

These examples illustrate that providing constitutional status and powers to local government institutions, as done in India after the 1993 amendments, can lead to transformative changes.

Democracy thrives on meaningful participation and accountability. Robust local governments foster both. They enable active citizen participation in decisions directly affecting their lives, needs, and development. They also ensure accountability of local representatives to the community.

Tasks that can be handled effectively at the local level should ideally be managed by local people and their elected representatives. Citizens are typically more familiar with their local government's workings and are directly impacted by its actions or failures, making them more invested in its performance. Strengthening local government is, therefore, equivalent to strengthening the roots of the democratic process itself.

(The question regarding possible dominance by village elders, wealthy individuals, or men in unelected panchayats reflects concerns about power dynamics and lack of inclusivity in traditional or informal village structures.)

(The thought about only having local governments and a national coordinating body echoes Mahatma Gandhi's vision of village republics as the foundation of independent India, advocating for decentralisation as a core principle.)

Growth Of Local Government In India

The history of local governance in India traces back to ancient times, with evidence of self-governing village communities known as 'sabhas'. Over time, these evolved into 'Panchayats' (assemblies, often of five members) resolving local issues. Their roles changed throughout history.

Modern elected local bodies were introduced during the British Raj, starting with the initiative of Lord Ripon in 1882, which led to the creation of 'local boards'. Progress was slow, leading the Indian National Congress to push for more effective local bodies. The Government of India Act 1919 led to the establishment of village panchayats in several provinces, a trend that continued under the Government of India Act of 1935.

During the freedom struggle, Mahatma Gandhi strongly advocated for the decentralisation of both economic and political power. He believed that empowering village panchayats was crucial for effective decentralisation and that local involvement was necessary for the success of development initiatives. For national leaders, independence meant moving away from concentrated power in Delhi towards decentralized decision-making.

Gandhi's vision saw every village as a self-sustained republic, with nested layers of governance forming an ever-ascending structure where the base (villages) supported the apex.

When the Constitution was drafted, 'Local Government' was placed under the State List, meaning States had the authority to legislate on this subject. It was also included as a Directive Principle of State Policy (Article 40), advising the State to organise village panchayats. However, being a Directive Principle, it was not legally enforceable and was primarily advisory.

Many felt that local governments were not given sufficient importance in the original Constitution. Possible reasons include:

• The impact of Partition, which led to a focus on national unity and a relatively strong unitary bias in the Constitution, with concerns that extreme localism might threaten national integration (reflected in Nehru's views).
• Concerns raised by some, like Dr. B.R. Ambedkar, that the existing social realities of factionalism and caste divisions in rural society might undermine the democratic goals of local government at the village level.

Nevertheless, the importance of people's participation in development was widely acknowledged. Many Constituent Assembly members supported village panchayats as the foundation of Indian democracy but were wary of rural social ills.

(The question "Why are people afraid of factionalism... when all the political parties... or even my class has factions?" challenges the notion that factions are inherently detrimental only at the local level and points out their presence in other political spheres.)

Local Governments in Independent India (Before 73rd/74th Amendments)

Even before the constitutional amendments in the 1990s, there were efforts to promote local governments. The Community Development Programme in 1952 aimed to involve people in local development. This led to the recommendation of a three-tier Panchayati Raj system for rural areas. Some states like Gujarat and Maharashtra adopted elected local bodies around 1960.

However, these bodies often lacked sufficient powers and funds, remaining dependent on State and central governments. Many States did not establish elected local bodies, or dissolved them, replacing them with government officers. Elections were often indirect or postponed. This uneven and often ineffective implementation highlighted the need for stronger constitutional backing.

Starting in 1987, a review of local government functioning was undertaken. The P.K. Thungon Committee in 1989 recommended granting constitutional recognition to local government bodies, ensuring periodic elections, defining their functions, and providing funds.

73rd And 74th Amendments

Based on recommendations and reviews, the central government introduced constitutional amendments to strengthen local governments. In 1992, the 73rd and 74th Constitutional Amendment Acts were passed by Parliament, coming into effect in 1993.

• The 73rd Amendment pertains to rural local governments, known as Panchayati Raj Institutions (PRIs).
• The 74th Amendment pertains to urban local governments, known as Nagarpalikas.

Since local government is a State subject, States had to amend their own laws to align with these constitutional changes. They were given one year to make these necessary adjustments.

(The comment "If I understand this correctly, the centre forced local government reforms on the States. This is funny: you adopt decentralisation through a centralised process!" highlights the paradox of the central government mandating decentralisation reforms across the States, a centralised approach to achieving decentralisation.)

Three Tier Structure

The 73rd Amendment mandated a uniform three-tier structure for Panchayati Raj institutions across all States (smaller States have the flexibility regarding the intermediate level):

• Base Level: Gram Panchayat, covering a village or group of villages.
• Intermediate Level: Mandal / Block / Taluka Panchayat (optional for smaller States).
• Apex Level: Zilla Panchayat, covering the entire rural area of a district.

The amendment also made the creation of a Gram Sabha mandatory. A Gram Sabha consists of all adult voters registered in the Panchayat area. Its specific roles and functions are defined by State legislation.

(The question "Does a Gram sabha mean the democratic forum of the entire village? Do Gram sabhas actually meet regularly?" explores the practical reality of Gram Sabhas as democratic forums and their actual frequency of meetings, raising questions about their effectiveness.)

Elections

A key provision is the mandate for direct elections to all three levels of Panchayat institutions. The term of office for each body is five years. If a Panchayat body is dissolved by the State government before its term ends, fresh elections must be held within six months. This ensures the regular and continuous existence of elected local bodies, addressing the past practice of postponing elections or replacing elected bodies with officials.

Reservations

The 73rd Amendment introduced mandatory reservations to ensure representation for various groups:

• One-third (1/3rd) of positions in all Panchayat institutions (at all three levels) are reserved for women.
• Seats are also reserved for Scheduled Castes (SC) and Scheduled Tribes (ST) at all three levels, in proportion to their population in the respective area.
• States have the discretion to provide reservations for Other Backward Classes (OBCs).

Importantly, these reservations apply not only to members but also to the positions of Chairpersons (Sarpanch/Adhyaksha) at all three levels. The reservation for women is comprehensive, applying within the general category as well as within the seats reserved for SCs, STs, and OBCs, ensuring that women from these communities also have representation as Chairpersons.

(The question "How come women’s reservations in local bodies were accepted so easily?" reflects on the difference in ease of passing reservations for women at the local level compared to the national and state legislatures, prompting consideration of factors like less political resistance or different priorities at the local level.)

Transfer Of Subjects

The 73rd Amendment identified and listed twenty-nine subjects in the newly added Eleventh Schedule of the Constitution. These subjects were previously part of the State List and are intended to be transferred to the Panchayati Raj institutions. These subjects largely relate to local development and welfare functions.

The actual transfer of specific functions related to these 29 subjects depends on the legislation passed by each State. States have the flexibility to decide how many of these subjects and what specific powers related to them are devolved to the local bodies.

(The question "Why are subjects only from State list to be transferred?" highlights the constitutional division of powers and the fact that local government falls under the State's domain.)

Some subjects listed in the Eleventh Schedule:

This list includes areas crucial for rural development and welfare, such as:

• Agriculture, minor irrigation, water management
• Small scale industries
• Rural housing, drinking water, roads
• Rural electrification
• Poverty alleviation programs
• Education (primary & secondary), technical & vocational training, adult education, libraries
• Cultural activities, markets and fairs
• Health and sanitation (including hospitals, primary health centres)
• Family welfare, women and child development, social welfare, welfare of weaker sections (SC/ST)
• Public distribution system

Article 243G empowers State Legislatures to endow Panchayats with powers and authority regarding these matters.

Special Provisions for Adivasi Areas (PESA Act, 1996)

The provisions of the 73rd Amendment were not automatically applied to areas with significant Adivasi (tribal) populations. Recognising their distinct traditional governance systems, a separate Act, the Provisions of the Panchayats (Extension to Scheduled Areas) Act, 1996 (PESA), was passed. PESA extends the Panchayat system to these areas while protecting the traditional customs of Adivasi communities, especially regarding the management of common resources like forests and water bodies.

PESA grants more powers to the Gram Sabhas in these areas and requires elected village panchayats to obtain the Gram Sabha's consent on many matters. The intent is to harmonise modern elected bodies with traditional self-governance practices, consistent with the principles of diversity and decentralisation.

State Election Commissioners

To ensure free and fair elections to Panchayati Raj institutions, the 73rd Amendment requires State governments to appoint a State Election Commissioner. This office is intended to be autonomous, similar to the Election Commission of India, and is responsible for conducting local government elections. The State Election Commissioner operates independently of the national Election Commission.

State Finance Commission

The 73rd Amendment also mandates the appointment of a State Finance Commission by the State government every five years. This Commission's role is to assess the financial health of local governments within the State and recommend the distribution of revenues between the State and local governments, and between rural and urban local governments. This aims to make the allocation of funds to local bodies less subject to political discretion.

(The question "State governments themselves are poor... How can they give money to the local government?" raises a valid point about the financial constraints of State governments and their dependency on central funds, which can impact their ability to adequately finance local bodies, highlighting a potential challenge to decentralisation.)

Implementation Of 73rd And 74th Amendments

Following the passage of the 73rd and 74th Amendments, all States have enacted legislation to implement their provisions. Over the decade following their enactment (1994-2004), most States conducted at least two rounds of local body elections, with some holding three.

The amendments have established a uniform structure for Panchayati Raj and Nagarpalika institutions nationwide. India now has a significant number of elected local bodies: over 600 Zilla Panchayats, 6,000 intermediate-level Panchayats, and 2,40,000 Gram Panchayats in rural areas, along with over 100 City Corporations, 1400 Town Municipalities, and 2000+ Nagar Panchayats in urban areas.

These bodies together account for over 32 lakh elected representatives every five years, vastly increasing the number of elected officials in the country (compared to less than 5000 in State Assemblies and Parliament combined). Of these, at least 13 lakh are women, a significant increase due to the reservation policy.

The reservation for women, including in Chairperson positions (Sarpanch, Adhyaksha, Mayor), has brought a large number of women into leadership roles at the local level (e.g., over 80,000 women Sarpanchas). This has potentially empowered many women, enhancing their political understanding, confidence, and ability to influence decisions and resource control. While initial concerns about women being mere proxies for male family members existed, such instances are reportedly decreasing.

Reservations for SCs and STs are mandatory, and many States have also included OBC reservations. With about 16.2% SC and 8.2% ST population in India, approximately 6.6 lakh elected members belong to these communities. This has significantly diversified the social composition of local bodies, making them more reflective of local social realities.

While this increased representation from historically marginalised groups can sometimes lead to tensions as dominant groups resist yielding power, such conflict is often seen as part of the process of making democracy more inclusive and meaningful by extending power to those previously excluded.

(This photograph likely depicts a local government meeting taking place in a village setting, possibly outdoors, with elected members present. The caption "The local Sarkar is sitting out in the sun" implies the accessible and grassroots nature of local government. Observing the participants' demographics could reveal the impact of reservations and social diversity.)

(This image of a flag with the slogan "We are the government here in the village!" encapsulates the aspiration of local self-governance. It signifies that formal constitutional provisions should translate into actual empowerment and decision-making authority for the local community, making them feel like the true governing body in their area, not just subjects.)

The amendments transferred 29 subjects related to local welfare and development needs to local governments. However, the actual autonomy and effectiveness of local bodies in performing these functions remain limited. Many States have not fully devolved powers related to these subjects, making the function of elected local bodies somewhat symbolic in practice.

Critics argue that despite the numerous elected representatives, the real power to choose welfare programmes or allocate resources remains concentrated at the central and state levels. Local bodies also face significant financial dependence on State and central governments. While rural local bodies might account for 4% of government expenditure, their own revenue collection is only about 0.24% of total government revenues, making them heavily reliant on grants, which erodes their capacity for independent action.

(The statement "So, the law is good but it is mostly on paper. Is this what they call the gap between theory and practice?" summarises the criticism that the constitutional framework for local government is sound in principle, but its practical implementation is hampered by insufficient devolution of powers and finances, creating a gap between the ideal and the reality.)

Democratic Decentralisation in Bolivia

Bolivia is highlighted as a successful example of democratic decentralisation. The Popular Participation Law in 1994 devolved power to the local level, creating municipalities headed by popularly elected mayors and councils. The system involves automatic fiscal transfers (20% of national tax collections distributed per capita) to these municipalities, which can also levy local taxes.

Bolivian local governments are responsible for building and maintaining local health and education facilities, with fiscal transfers providing the bulk of their budget. This model demonstrates a system of decentralisation with mandated funding and clear functional responsibilities for local bodies.

Conclusion

The experience with local governments in India suggests that while the legal framework for decentralisation is in place, local bodies often function primarily as implementers of central and State welfare and development schemes. Genuine decentralisation requires being prepared to share power meaningfully.

Ultimately, democracy is about power shared among the people. Residents of villages and urban areas must have the authority to decide their own policies and programmes. The constitutional provisions for local governments represent an important step towards democratisation. However, the true measure of democracy lies not just in the laws but in their effective implementation and practice, ensuring greater power devolution to the people at the grassroots level.

Exercises

As per instructions, the content of the exercises is not included, only the section heading structure is provided.