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LOCAL GOVERNMENTS
In india
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Syllabus

UNIT: I - EVOLUTION OF LOCAL GOVERNMENT

Local Governments in Ancient and Medieval India-Ripon’s contribution to Modern
local governments in India Local Governments in Post-Independence India: Structure Rural
and Urban system.

UNIT: II - DEMOCRATIC DECENTRALIZATION

Democratic Decentralization Directive Principles of State Policy Balwantray Mehta
Committee and Ashok Mehta Committee.

UNIT : III - RURAL LOCAL GOVERNMENT

Rural Local Government: Gram Sabha Village Panchayat Panchayat Samiti -Zilla
Parishad-Niyaya Panchayat -73rd Amendment Act.

UNIT : IV - URBAN LOCAL GOVERNMENT

Urban Local Government: Municipal Corporation Municipality Township
Cantonments-Notified Area Committee 74th Amendment Act-Local Government Finance:
Taxes -Control over Local governments.

UNIT : V - ISSUES IN LOCAL GOVERNMENT

Issues in Local government: Corruption, Role of Political Parties, Gender and Caste
Discrimination, Election Issues.
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UNIT – 1 : EVOLUTION OF LOCAL GOVERNMENT

LOCAL GOVERNMENT

Meaning:-
Local government is a set of government institutions at local level. Local government is an authority to
determine and execute measures with in restricted area. It is a management of local affairs by the people of the
locality. Local government is a part of government that deals with local affairs administrated by the authorities those
who are elected by the people of locality. Local Government is established for the purpose of meeting the basic needs
and solve the local problems. The local government forms the third tier level of government and they are the lowest
unit of administration in the administrative structure of the government.

Nature/Characteristics:-
Local Areas: - A Local Government unit as far as its jurisdiction is concerned has a well defined area which
is fixed by the concerned state government. This area can be termed as a city, a town or a village. The territorial limits
of a local body unit are fixed by the state government subject to changes from time to time through legislation.
Local Authority: The administration of a particular locality is run by an authority or body of persons who are
elected directly by the people residing in that particular area. The authority which includes the elected representatives
of the people is responsible for management of local affairs in that area.
Civil Amenities For Local Inhabitants: - The Primary objective of Local Government is to provide certain
civic amenities to the people at their door-steps. The provision of these civic amenities ensures the healthy living of
local community. These services are specifically meant for those inhabitants who are living in that restricted area for
which the local government unit has been created. It has been rightly pointed out that all these amenities which make
thing better, physically, economically, socially and culturally should be assigned to the local inhabitants.
Local Finance: In order to perform its functions effectively, it is necessary that every local government unit is
provided with adequate finances. The services provided to the local Inhabitants are largely financed out of finances
raised locally. The local inhabitants are required to pay taxes imposed by the concerned local authority. It is the
authority of local government. However, unlike other levels of government that accords it a unique position among
corporate bodies, this authority has legal and constitutional basis. Infact, the local government possesses revenue
raising and spending authority only to the extent that the state/central government grants it to Them.
Local Autonomy. – Local Autonomy means the freedom of the local government to decide and act in the
sphere of activities and functions allotted to them by the statute under which they are created. Among other things, it
implies the legal right of the inhabitants of a local area to choose their representatives to govern the locality
concerned, according to the laws framed by the local council and to adopt the budget. It is however, to be understood
that the authorities which have been given the responsibility to run the local government are neither sovereign nor
self-created entities and they will have to depend upon the higher levels of government for their creation, rank, powers
and functions.
Local Participation: The success or failure of developmental plans at the local level depends upon the active
participation of local people for whom these plans are made. It is a local government which provides an opportunity to
the local people to participate in administration. If the goals of development have to be achieved, people’s
participation is a pre-requisit for it.
Local Leadership: The people who come under the purview of local government, especially those living in
rural areas, are generally illiterate, inexperienced, non-professional and unaware about the functioning of local bodies.
Strong leadership therefore needs to be provided to those people. This leadership is provided to the people from the
local area in the shape of elected representatives and elected office bearers of the elected councils in regard to the
policies and programmes of the government.
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Local Accountability: Local Government units which are created to provide civic amenities to the people are
accountable to the local people. The residents of a local area keep a watch on local authorities to ensure effective
performance of their functions. If a local body becomes inefficient and is not in a position to provide satisfactory
services to the people, it faces severe criticism of local residents.
Local Development: Local Government is concerned with the overall development of the people living
within its area. Every activity of local government is therefore aimed at Development.

Scope:-
School of Democracy: The Success of national democracy largely depends upon the success of democracy at
the grassroot level.
Platform for Political and Popular Education: Lord Ripon’s Resolution of 1882 emphasized the need of
political and popular education through local government. It is not primarily with a view to improvement in
administration that their measure is put forward and supported.
Promotes Spirit Of Liberty And Equality: “Town meeting are to liberty what primary schools are to
science: they bring it within the people’s reach, they teach men how to use and how to enjoy it.
Effective Solution of Local Problems: All the problems are not supposed to be solved by the central and
state governments. In fact, there are some problems which occur at the local level and need to be solved locally in
accordance with local needs, atmosphere, environment and wishes of the people.
Provides Civil Services: Local government institution perform numerous function to provide civil amenities
to the inhabitants. The services performed by these bodies include garbage collection, cleaning of streets, drainage,
electricity, water supply, fire services, health service etc, are very important for good civil life.
Local Government is Economical: The performance of any government whether central or local largely
depends upon availability of finances.
Reduce Centre and State Burden: local government helps to reduce the burdens of centre and state
government. It looks local interest and be responsible for the people of locality.
Channel of communication: local government serves as the channel of communication between the
community and state government.

Significance:-
The significance of local government may also be summarized in the following manner:

 It contributes to the strengthening of Democracy.

 It contributes to educate the citizenry.
 It acts as a nursery of democracy as it helps to train the budding leaders.
 It helps to check the power of bureaucracy.
 It provides daily essential services to the people.
 Local government reduces the burden of higher levels of government.
 Serves as ideal channel of communication between the government and people.
 Encourages the participation of people and civil society in the governance.
 It helps towards mobilization of local resources. Plays effective role in integrated social, economic and
cultural development.
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LOCAL GOVERNMENT IN ANCIENT INDIA

Local government in ancient India referred to the decentralized administrative structures that enabled
grassroots-level governance. Unlike modern bureaucratic systems, ancient Indian local governance was community-
driven, where local bodies handled daily civic affairs, justice, taxation, and public works. These institutions were
deeply rooted in the traditions of collective decision-making and social responsibility.
The term "local government" in the ancient Indian context encompassed a range of self-governing village institutions
such as sabhas, samitis, and panchayats. These units functioned autonomously in most matters, maintaining law and
order, managing irrigation systems, and overseeing education and welfare. Their decisions were usually made by
village elders or elected bodies, emphasizing consensus and dharma (righteousness).
These local institutions thrived under different dynasties and were closely integrated with cultural and religious life.
They not only offered administrative efficiency but also nurtured democratic values long before formal democracies
evolved. Thus, ancient local governance in India was both a practical tool for administration and a reflection of
civilizational values centered on community and cooperation.

Features of Local Government in Ancient India

1. Decentralized Governance:
One of the most notable features of ancient Indian local governance was its decentralized nature. Administrative
powers were distributed among various local institutions, especially at the village level. Villages managed their own
affairs with little interference from the central authority, ensuring both autonomy and relevance to local needs.
2. Community Participation:
Local governance encouraged the participation of community members. Elders, learned individuals, and heads of
families were typically involved in village sabhas or assemblies. In South India, the “Ur” and “Sabha” (especially in
Chola period) comprised members selected through elaborate processes like Kudavolai, ensuring representation and
accountability.
3. Judicial Functions:
Local bodies were empowered to resolve civil and criminal disputes within their jurisdiction. Panchayats acted as local
courts, dispensing justice based on customary law and dharma. Decisions were usually binding and respected by the
people, minimizing the need for external judicial intervention.
4. Revenue Collection and Land Management:
Local governments played a crucial role in land assessment, tax collection, and maintenance of revenue records. In
agrarian societies, the management of irrigation, allocation of land, and collection of grain or monetary taxes fell
under local institutions, ensuring economic stability.
5. Social Welfare and Infrastructure:
These local bodies undertook public works such as building roads, wells, tanks, and temples. They also organized
festivals, maintained education through gurukulas or pathshalas, and helped the poor and destitute. Welfare was seen
as a collective moral responsibility.
6. Religious and Ethical Foundations:
Dharma formed the ideological backbone of governance. Decisions were often made keeping in mind religious duties
and social harmony. Temples and monasteries were not only religious centers but also hubs of administration and
education, deeply involved in civic management.
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7. Documentation and Bureaucracy:

Especially in the South, there was a well-developed system of record-keeping. Inscriptions on copper plates or temple
walls documented land grants, administrative rules, and decisions taken by assemblies. This ensured transparency and
continuity across generations.
8. Continuity Across Dynasties:
Local self-governing institutions were not transient; they adapted and evolved under different regimes such as the
Mauryas, Guptas, Cholas, and Pallavas. Their continuity reflected the strength and adaptability of the local governance
model in ancient Indian polity.

Institutions of Local Government Ancient India

1. Indus Valley Civilization (IVC)
The urban planning of the IVC suggests a structured form of local governance. While no written administrative
records exist, archaeological findings like grid-patterned cities, standardized brick sizes, and advanced drainage
systems imply the existence of a civic authority. It is likely that municipal councils or group administrators managed
city planning, sanitation, water distribution, and possibly even trade regulation. The uniformity across cities like
Mohenjo-Daro and Harappa points to a strong local coordination system, perhaps functioning autonomously under a
central authority.
2. Vedic Period
During the Vedic period, governance was largely tribal and kinship-based. The sabha and samiti were the two main
local assemblies. Sabha consisted of elders and acted as a judicial body, while samiti was a general assembly involved
in policy-making. These bodies were democratic in spirit and managed local disputes, sacrificial rituals, and resource
distribution. Though these institutions later declined, they laid the foundation for participatory governance in rural
India.
3. Ramayana and Mahabharata Period (Epics)
In the two epics, local governance was often portrayed through kingdoms ruled by dharmic kings who delegated local
administration to village heads and regional officers. Villages had self-governing units, often led by respected elders
or appointed officials. Dharma was the guiding principle, and local disputes were resolved at the village level. These
narratives reflect the moral and administrative ideals of local self-governance in ancient India.
4. Kautilya’s Arthashastra & Mauryan Period
Kautilya’s Arthashastra provides a detailed account of urban and rural administration. The gopa, sthānika, and
gramika were local functionaries responsible for village-level tax collection, policing, and administration. Municipal
bodies called nagarpalas managed city affairs. The Mauryan empire under Ashoka maintained central control but
allowed significant autonomy to local administrators for effective governance. Local records were meticulously
maintained, showing a bureaucratic structure with a local orientation.
5. Post-Maurya Period
The post-Mauryan period saw the rise of Indo-Greek, Kushan, and Satavahana powers. While central control
weakened, local self-governing systems flourished. Guilds or shrenis began playing an administrative role in urban
centers, managing trade, standards, and disputes. In rural areas, villages continued to function autonomously with
local heads overseeing governance, agriculture, and taxation.
6. Gupta Period
The Gupta era is often regarded as a classical period of Indian civilization and saw well-organized local governance.
Villages were administered by grama sabhas, which took decisions on taxation, land use, irrigation, and justice. Urban
areas had nagarak, prathamakulika (chief policeman), and mahattara (elder) officers. The administration was
decentralized, with inscriptions indicating land grants ratified by local assemblies. Education and temple
administration were also managed locally.
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7. Post-Gupta Period
During the post-Gupta period, especially in South India, local self-government matured further. The Chola
administration is notable for its village councils like ur, sabha, and nagaram, which handled everything from law to
local economy. Committees (variyams) managed specific portfolios like garden maintenance or temple affairs. This
period marked the zenith of ancient Indian local governance in terms of documentation, autonomy, and democratic
practices.

Transition from Ancient to Medieval Local Government

 Continuity of Institutions - Many ancient Indian local governance structures continued into the medieval
period. Village sabhas and panchayats were not dismantled but evolved under changing political landscapes.
For instance, the Chola period's sabhas influenced later South Indian village assemblies even under Islamic
and Nayaka rulers. The idea of community-led management was thus carried forward.
 Role of Temples in Transition - Temples, central to both religious and administrative life in ancient times,
remained powerful during the medieval period. They became centers of land ownership, tax collection, and
education. In medieval South India, particularly, temple authorities worked alongside local bodies, managing
grants and overseeing welfare activities, a practice rooted in earlier traditions.
 Adaptation under Islamic Rule - With the advent of the Delhi Sultanate and Mughal rule, there was greater
centralization, yet local governance was retained, especially in villages. The muqaddam, patel, and panch
were village functionaries under Islamic rulers who resembled their ancient counterparts like the gramika.
These functionaries maintained tax records, law and order, and arbitration—echoes of earlier systems adapted
to new political norms.
 Guilds to Nagar Panchayats - Urban guilds (shrenis) transformed into merchant-led local councils during
early medieval times. These evolved into nagar panchayats or town-level decision-making bodies, particularly
in Western India. These institutions retained much of the functional autonomy seen in earlier periods, such as
market regulation and dispute resolution.
 Local Justice and Customary Law - The persistence of local dispute resolution through customary laws
indicates a deep cultural continuity. Whether under Hindu kings or Islamic sultanates, villages were often
allowed to apply their traditional laws, maintaining autonomy in everyday matters. This judicial independence
of local bodies was a direct inheritance from ancient models.
 Legacy in Colonial and Modern Governance - The local self-government structure seen during British India
(e.g., village panchayats and municipal boards) had strong parallels with ancient Indian traditions. The British
codified and modified them, but the roots were unmistakably ancient. Today’s Panchayati Raj institutions
reflect these deep civilizational continuities.

LOCAL GOVERNMENT IN MEDIEVAL INDIA

In medieval India, local government referred to the administrative mechanisms functioning at the village,
town, and provincial levels under the overarching control of dynasties like the Rajputs, Delhi Sultans, Mughals, and
South Indian empires. While centralized monarchy remained the dominant structure, local governance played a crucial
role in maintaining day-to-day administration and tax collection at the grassroots level. Unlike ancient times, local
governments in the medieval period operated with less autonomy and were closely supervised by central and
provincial officials. However, villages largely retained their traditional panchayat systems for resolving disputes,
managing land records, and coordinating communal activities. Towns were governed through municipal officers and
market regulators, and temple institutions remained strong in southern kingdoms.
Thus, local government in medieval India became a hybrid model—partially autonomous in rural and religious affairs
but more centrally regulated in urban and strategic regions. While the spirit of collective village governance
continued, it now existed under a more hierarchical, imperial framework that laid the groundwork for future colonial
administrative systems.
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Features of Local Government in Medieval India

1. Dual Structure – Central Oversight with Local Functioning:
Medieval local government operated under a dual framework. Local officials like muqaddams, patels, and chaudharis
were responsible for tax collection and law enforcement, but they answered to provincial and imperial officers. This
mix of central authority and local execution characterized governance under both Sultanate and Mughal rule.
2. Village Autonomy in Daily Affairs:
Despite imperial control, most villages enjoyed autonomy in managing land, irrigation, and minor disputes.
Traditional panchayats continued functioning, especially in North and Central India. Their role included settling civil
matters, organizing agricultural activities, and maintaining local order.
3. Temple and Religious Administration in South India:
In kingdoms like the Cholas and Vijayanagar Empire, temples became administrative centers. Local assemblies such
as sabhas and ur managed land grants, public works, and charity. They were highly organized and often maintained
detailed records through inscriptions.
4. Tax Collection and Land Revenue System:
Local government in medieval India was heavily focused on land revenue. Officers such as karoris, qanungos, and
patwaris kept land records and coordinated collection. Under Akbar’s Zabt system, land measurement and revenue
assessments became more scientific, relying on local documentation and participation.
5. Role of Guilds and Merchant Committees:
In urban areas, merchant guilds and trader associations held substantial power. They regulated trade, maintained order
in markets, and paid collective taxes. These bodies functioned as informal local governments in cities like Delhi, Agra,
and Hampi.
6. Record-Keeping and Documentation:
Both northern and southern kingdoms maintained local records. In the Mughal period, documentation was systematic,
with village-level officials maintaining land registers, crop data, and tax records. In South India, inscriptions on
temple walls recorded decisions, grants, and civic matters.
7. Customary Law and Local Justice:
Justice at the village level continued to be guided by customary law and religious norms. Panchayats delivered
judgments based on social consensus. The Mughal judicial system allowed some space for these traditions in civil
matters, while criminal justice was regulated more centrally.
8. Decline in Local Autonomy Over Time:
Over the centuries, the increasing centralization under the Mughals and growing feudal pressures reduced the
independent role of local governments. Revenue demands from the imperial court and jagirdars weakened local
institutions, setting the stage for a more extractive colonial model.

Institutions of Local Government in Medieval India

1. Rajput Period
During the Rajput era (7th–12th centuries), local governance followed a largely feudal and hereditary model. Land was
administered by local chieftains or thakurs, who acted as intermediaries between the king and the people. Villages
were largely autonomous in handling local matters such as irrigation, customary law, and religious activities. The
panchayat system continued, often presided over by village elders. Taxation was often in kind and collected by local
chiefs, who retained a share before forwarding the rest to higher authorities. Temples and mathas had both spiritual
and administrative functions, particularly in regions like Rajasthan and Gujarat. Though not as structured as later
systems, Rajput-era local governments were shaped by kinship, caste hierarchies, and dharmic traditions.
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2. Delhi Sultanate
Under the Delhi Sultanate (13th–16th centuries), local administration became more centralized, particularly in revenue
and policing. The sultan appointed governors (iqtadars) who granted land in exchange for military service. These iqtas
were subdivided into parganas and villages. At the local level, muqaddams and chaudharis supervised tax collection
and law enforcement, often from the same caste or village community. The patwari maintained land records, while the
qanungo ensured tax compliance. The Sultanate did not dismantle local customs entirely; village councils and caste
panchayats continued to manage social disputes. Urban centers were governed by kotwals and shahnas, who handled
policing and market regulation. Thus, the Sultanate blended Persian administrative principles with existing Indian
village systems.
3. Mughal Period
The Mughal Empire brought greater administrative sophistication to local governance. Akbar’s reforms, especially
under Raja Todar Mal, standardized the Zabt system, where land revenue was assessed based on crop yield and
productivity. At the village level, muqaddams, patels, and chaudharis acted as intermediaries, collecting revenue and
maintaining law and order. They were supported by patwaris (village accountants) and qanungos (record-keepers).
Each pargana (district cluster) had a shiqdar (police/military officer) and an amil (revenue officer), who coordinated
with village officials. These local units were responsible for law enforcement, revenue management, and minor
judiciary functions. The Mughal system was data-driven—village records were maintained in Persian and later in local
languages.
Urban local government was more centrally controlled. Kotwals regulated markets, sanitation, and crime in towns and
cities. Trade guilds continued to influence urban governance, and local customs were often acknowledged in civil
cases.
Though centrally directed, the Mughals recognized the importance of local customs and maintained indirect control
through patronage and oversight rather than full bureaucratic integration. However, the jagirdari system eventually
burdened local villages, reducing the autonomy of panchayats and placing more pressure on land revenue extraction.
This over-centralization would later create challenges during the transition to colonial rule.
4. Chola Period
The Chola dynasty (9th–13th centuries) in South India is renowned for its sophisticated system of local self-
government. Villages were organized into ur (general village assemblies), sabhas (assemblies of Brahmin villages),
and nagaram (town councils of merchants). These bodies managed day-to-day administration, justice, irrigation,
education, and temple maintenance.
One of the most remarkable features was the Kudavolai system—a method of selecting representatives by drawing
lots from eligible candidates, ensuring transparency and community participation. These representatives formed
variyams (committees) such as the garden committee, tank committee, justice committee, etc., each responsible for
specific civic functions.
Sabhas had autonomy over financial matters, land transactions, tax collection, and the appointment of local officials.
Detailed records of decisions were inscribed on temple walls or copper plates, showing a level of documentation
unparalleled in other regions at the time. Even audit systems were in place to prevent misuse of funds.
The Chola model represents a high point in India’s democratic tradition of local governance. The integration of
religious, economic, and administrative functions in village assemblies created a strong civil society structure that
continued to influence later medieval and even colonial village institutions in South India.
5. Vijayanagar Empire
The Vijayanagar Empire (14th–17th centuries) upheld many aspects of earlier South Indian local governance, especially
the temple-centered administrative model. Village assemblies (sabhas and urs) retained significant power in managing
land, resolving disputes, and maintaining public utilities like tanks and temples.
Each village had a maniyam (revenue collector), karnam (record keeper), and various specialized officials. The
temples were major landholders and often controlled large administrative domains. Local resources were pooled for
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festivals, social welfare, and education. In urban areas like Hampi, merchant guilds such as Ayyavole 500 and
Manigramam managed trade, infrastructure, and civic welfare.
The empire’s kings largely respected local autonomy, intervening only when needed for military or fiscal reasons.
This decentralized but coordinated system made Vijayanagar resilient and culturally vibrant. The local institutions’
continuity and their cooperation with central authority ensured effective governance throughout the empire.

Transition from Medieval to British Local Government

a) From Custom to Codification - Medieval local governance was rooted in customs and informal authority
structures—village panchayats, sabhas, and hereditary officials maintained order and justice based on
precedent and tradition. With the arrival of the British, this informal system began to be codified,
documented, and subjected to centralized oversight, gradually eroding traditional autonomy.
b) British Integration of Local Elites - The British, particularly in the early stages of colonization, continued
using existing local leaders such as zamindars, muqaddams, and patels as intermediaries for revenue
collection. This was a continuation of the Mughal and Sultanate tradition but formalized under colonial legal
frameworks. These local leaders became crucial for tax administration but were stripped of their earlier
community-oriented roles.
c) Loss of Autonomy - Unlike the medieval rulers who allowed villages to settle their own disputes and
govern themselves in most aspects, the British imposed legal uniformity. The Indian Penal Code and British-
style courts displaced customary justice. Panchayats lost judicial powers and became marginal players in
administration, now under the purview of colonial officials like Collectors and Deputy Collectors.
d) Municipalities and Urban Governance - In urban areas, the British introduced formal municipal
governance. The Madras City Municipal Act (1865) and Ripon’s Resolution (1882) encouraged local self-
government, but these were top-down initiatives with limited Indian representation. The focus shifted from
participatory village institutions to bureaucratic, revenue-centric systems.
e) The Legacy - Despite the colonial distortions, the British period sowed the seeds of modern local
governance through formal institutions, municipalities, and elected bodies. These drew, consciously or
unconsciously, from the medieval and ancient Indian models. The Panchayati Raj system, formalized post-
independence, can be seen as a synthesis of India’s traditional village autonomy and modern legal-
administrative frameworks.

LOCAL GOVERNMENT IN MODERN INDIA

In the pre-independence era, local government in India referred to the structured system of governance at the
municipal and rural levels, introduced primarily by the British to manage local administration, sanitation, tax
collection, and civic services. These institutions were created more out of administrative convenience for the colonial
government rather than promoting democratic decentralization.
Initially, these local bodies had limited autonomy and were largely dominated by appointed officials rather than
elected representatives. The British introduced municipalities and district boards to offload responsibilities such as
public health, water supply, road maintenance, and education. However, local Indians had minimal participation in
decision-making processes. The idea of representative and autonomous local self-government gradually developed
with the efforts of liberal administrators like Lord Ripon (1882), but it remained largely ineffective due to inadequate
financial resources, limited powers, and colonial interference. Thus, the local government during the pre-independence
period was a mix of token decentralization and actual central control, laying a foundational structure for post-
independence reforms.
Features of Local Government in Pre-Independence India
1. British-Controlled Framework:
Local bodies operated under colonial control. Most members were appointed rather than elected, and major decisions
were made by British officials. This made local governments more administrative than democratic in nature.
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2. Limited Financial Autonomy:

Local governments had insufficient financial powers and relied heavily on grants from provincial governments. Their
inability to raise adequate revenue restricted their capacity to deliver public services effectively.
3. Urban-Centric Governance:
Local governance was focused more on urban municipalities than rural areas. Cities received structured local bodies
early on, while village-level governance remained neglected until late reforms.
4. Minimal Public Participation:
Public involvement was minimal due to limited voting rights, property-based franchise, and low political awareness.
This resulted in poor accountability and weak community engagement in civic affairs.
5. Introduction of Municipalities:
Municipalities were introduced to manage sanitation, roads, lighting, and taxes in urban areas. However, these
institutions functioned more as tools of British administration than as organs of local self-rule.
6. District Boards in Rural Areas:
District boards were set up to oversee rural infrastructure and education, but they too were under bureaucratic
dominance, lacking representation from the local population.
7. Educational and Health Responsibilities:
Local bodies were assigned responsibilities like managing primary schools and local dispensaries. However, their
efficiency was constrained by insufficient staff, funds, and training.
8. Seeds of Representative Governance:
Despite their limitations, these institutions introduced the concept of electoral politics at the local level, planting early
seeds for future democratic governance post-independence.

Pre-Ripon Status of Local Government

1. Early Colonial Period: Centralized Rule
Before Lord Ripon’s resolution in 1882, local governance under British rule was highly centralized. The British East
India Company and later the Crown governed through a top-down administrative system. Local decision-making was
virtually absent, and the local population had no say in civic or fiscal matters.
2. Creation of Municipalities (Late 18th – Early 19th Century)
The earliest form of local government was introduced in 1688 with the formation of the Madras Municipal
Corporation, followed by Bombay (1726) and Calcutta. However, these bodies were limited in scope and were mainly
responsible for minor civic amenities for European settlements. These early municipalities were controlled by British
officials and functioned to serve colonial economic interests.
3. Lord Mayo’s Resolution (1870)
Lord Mayo attempted limited decentralization by encouraging local boards and municipalities. His 1870 Resolution on
Decentralization advocated the transfer of certain administrative responsibilities to local bodies, mainly in areas like
sanitation, public works, and education. However, financial control and policy-making remained with the provincial
governments. This was more of an administrative convenience to reduce the burden on the colonial bureaucracy than a
genuine move towards self-government.
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4. Lack of Democratic Spirit

These early local bodies were marked by a lack of public participation. Membership was restricted, with officials
dominating decision-making. There was little accountability to local residents, and these institutions functioned more
like colonial outposts than democratic entities.
5. Need for Reform
By the late 19th century, growing Indian political consciousness and administrative inefficiencies highlighted the need
for a more participatory and accountable local governance model. This led to Lord Ripon’s landmark resolution in
1882, considered the real beginning of local self-government in India.

LORD RIPON ERA

Lord Ripon, Viceroy of India from 1880 to 1884, is remembered as one of the most liberal and reform-minded
British administrators in colonial India. His tenure marked a significant shift in British policy toward greater Indian
participation in governance, education, and public administration. A firm believer in liberal and democratic values,
Ripon sought to empower Indians through institutions that fostered local autonomy and self-governance. Unlike his
predecessors who prioritized central control, Ripon advocated decentralization as a means of improving both
administrative efficiency and political development. His most celebrated initiative was the Resolution on Local Self-
Government of 1882, which laid the groundwork for municipal democracy in India. This earned him the title “Father
of Local Self-Government in India.” Ripon also worked to expand press freedom, promote vernacular education, and
include Indians in judicial roles—efforts that won him respect among Indian reformers and nationalists alike.

Ripon’s 1882 Resolution – Key Features

1. Decentralization as a Principle of Good Governance
Ripon’s resolution was built on the idea that local problems are best solved by local people. He emphasized
decentralization not only for administrative convenience but as a moral and democratic imperative. This was a major
shift from the earlier approach of bureaucratic dominance.
2. Expansion of Municipal Institutions
The resolution encouraged the formation of municipalities and local boards across urban and rural areas. These bodies
were to be empowered to manage public health, sanitation, education, roads, and water supply—functions that were
until then mostly handled by the provincial government.
3. Introduction of Elected Representatives
For the first time, Ripon mandated the inclusion of non-official (Indian) members, with a majority of them elected,
rather than nominated. Though property and tax qualifications limited broad participation, this move marked the first
instance of electoral democracy in Indian local governance.
4. Financial Autonomy to Local Bodies
Local boards and municipalities were given limited powers to levy local taxes and spend funds independently on civic
services. Though not absolute, this financial autonomy was a critical step toward functional self-government.
5. Supervision, Not Control
Ripon advocated that government officials should act only as guides and supervisors, not as controlling authorities.
The goal was to let local bodies function independently while receiving technical or administrative help as needed.
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6. Uniform Administrative Framework

The resolution proposed a uniform structure for local government throughout British India, balancing rural and urban
needs. This helped systematize and formalize local governance across provinces, creating consistency in policy
implementation.
7. Civic Responsibility and Political Education
Ripon believed that local self-government would train Indians in democratic participation, civic responsibility, and
administration. It was not just an administrative reform but also an investment in India’s political future.

Ripon’s Contribution to the Development of Local Government

1. Foundation of Democratic Local Institutions
Before Ripon, local government was largely nominal and dominated by British officials. Ripon’s 1882 resolution
created a real structure of local self-governance by empowering municipalities and district boards. These institutions
were no longer mere administrative agencies but became democratic forums with the inclusion of elected Indian
members.
2. Empowering the Indian Middle Class
Ripon’s reforms opened the doors for the emerging Indian middle class to engage in politics. Educated Indians who
were previously excluded from governance found a platform to voice their concerns and participate in civic
administration. This created a class of Indians experienced in governance, laying the foundation for future national
leaders.
3. Balancing Urban and Rural Governance
One of Ripon’s key contributions was the equal emphasis on both urban and rural governance. While earlier reforms
focused mostly on cities, Ripon extended the idea of local self-rule to rural areas through district boards. This
comprehensive vision ensured that local governance was inclusive and geographically balanced.
4. Training Ground for Responsible Citizenship
Ripon viewed local bodies as schools of political training. By allowing Indians to manage their local affairs, he
believed they would develop administrative skills, leadership qualities, and a sense of civic duty. This was a visionary
step that saw local government not merely as an administrative tool but as a means to prepare Indians for larger
democratic responsibilities.
5. Institutionalizing Accountability and Transparency
By introducing elected representatives and encouraging public participation, Ripon enhanced accountability in local
administration. Citizens now had a say in how their taxes were used. Municipal bodies had to justify expenditures and
prioritize local needs, fostering transparency and responsiveness in governance.
6. Long-term Legacy in Indian Governance
Ripon’s contributions did not disappear with his tenure. The Indian Councils Act of 1892 and later the Montagu-
Chelmsford Reforms of 1919 expanded on his vision. His model of decentralized governance influenced the
Panchayati Raj system post-1947, proving that his ideas had a lasting impact on India’s democratic evolution.
7. Recognition as the Father of Local Self-Government
For pioneering participatory governance and promoting Indian involvement in civic administration, Lord Ripon is
rightly called the “Father of Local Self-Government in India.” His reforms were not just administrative experiments
but seeds of democratic governance that shaped India’s political future.
 14

LOCAL GOVERNMENT IN INDIA: FROM RIPON TO INDEPENDENCE

The evolution of local government in India from the time of Lord Ripon’s landmark 1882 resolution until
India’s independence in 1947 represents a complex journey of administrative experimentation, colonial compromise,
and growing democratic consciousness. Though initially driven by the British need for administrative convenience,
local self-government gradually became a site for political participation, training future national leaders, and laying
the foundation for post-independence democratic decentralization.

1. Post-Ripon Period: A Period of Slow Progress (1882–1909)

Lord Ripon’s 1882 resolution had introduced the concept of representative local government, especially in
municipalities and district boards. However, the implementation remained weak. Provincial governments, reluctant to
devolve real power, often appointed more officials than elected members to local bodies. Financial powers were also
minimal, limiting the ability of these institutions to impact real change.
Despite these limitations, the municipal bodies became forums for early nationalist participation. Educated Indians
began to use these platforms to question British policies, discuss local issues, and develop organizational skills. The
slow but steady development of local governance during this period trained a class of leaders who would later
participate in national politics.

2. Indian Councils Act, 1909: No Major Reform in Local Government

The Morley-Minto Reforms (Indian Councils Act, 1909) were a major political milestone at the central and provincial
legislative levels, but they brought no significant reforms to local government. Local self-governing institutions
remained largely under bureaucratic dominance, with limited Indian representation and restricted responsibilities.
This stagnation was frustrating for Indian leaders, especially as they sought increased participation in governance. The
gap between the promise of local self-government and its actual execution remained a source of political discontent.

3. Montagu-Chelmsford Reforms & Government of India Act, 1919: Provincial Devolution

A major shift occurred with the Montagu-Chelmsford Reforms, formalized in the Government of India Act, 1919. The
act introduced the diarchy system in provinces and identified local self-government as a “transferred subject” —
meaning it was to be handled by Indian ministers rather than British officials. This move marked a turning point:
 Municipal and district boards came under Indian control in most provinces.
 Some provinces, like Bombay and Madras, allowed for greater Indian participation and even elected
chairpersons.
 However, despite these advancements, financial resources and autonomy remained limited.
Still, the reforms gave Indian leaders real administrative experience and enhanced the political legitimacy of local self-
government institutions. They also strengthened the demand for greater control over internal affairs.

4. Gandhian Vision of Village Swaraj

Parallel to these official reforms, Mahatma Gandhi championed the idea of “Gram Swaraj” (village self-rule). He
believed that true independence could only come when every village became self-reliant and self-governing. Gandhi’s
model of local government emphasized:
 Direct democracy, where villagers participate actively in decision-making
 Economic self-sufficiency, through local crafts and agriculture
 Moral leadership and non-violence as the basis of governance
 15

Although Gandhi’s vision was not institutionalized before independence, it heavily influenced post-independence
policy on Panchayati Raj and rural development.

5. Government of India Act, 1935: Foundation for Federalism, But Local Governance Stagnated
The Government of India Act, 1935 is often viewed as a blueprint for India’s federal structure, but its impact on local
self-government was minimal. The act devolved more powers to provinces, but local bodies remained under provincial
discretion, and reforms were inconsistently implemented
While some provinces made genuine efforts to improve local governance—especially under Congress governments
elected in 1937—other areas continued to experience bureaucratic dominance, limited participation, and poor funding.
Nonetheless, the local bodies during this period became training grounds for national leaders, particularly
Congressmen and regional politicians who gained firsthand experience in governance, administration, and mass
mobilization.

6. Role of Local Government in the Freedom Movement

Throughout the early 20th century, local government institutions played a subtle yet significant role in the freedom
struggle:
 They served as political platforms for Indians to contest colonial policies.
 Many nationalist leaders began their careers in municipal corporations and district boards.
 The Congress Party used these bodies to mobilize public opinion and demonstrate administrative capability.
Despite their limitations, these institutions helped deepen the culture of public accountability, electoral participation,
and civic engagement.

7. Legacy of Pre-Independence Local Governance

By the time India achieved independence in 1947, the structure of local government was in place but lacked
democratic depth and financial strength. However, the colonial period had:
 Introduced the concept of elected local bodies
 Created an administrative framework for municipalities and rural boards
 Trained a generation of leaders and citizens in civic participation
This legacy, though flawed, provided the institutional base upon which independent India would later build Panchayati
Raj and strengthen urban and rural local governance.

STRUCTURE OF LOCAL GOVERNMENT

Local government is a set of government institutions at local level. Local government is an authority to
determine and execute measures with in restricted area. It is a management of local affairs by the people of the
locality. Local government is a part of government that deals with local affairs administrated by the authorities those
who are elected by the people of locality. Local Government is established for the purpose of meeting the basic needs
and solve the local problems. The local government forms the third tier level of government and they are the lowest
unit of administration in the administrative structure of the government.. Local government classified into – Rural &
Urban
 16

A] RURAL LOCAL GOVERNMENT:-

Rural local government refers to the system of decentralized governance that operates in the villages and rural
regions of a country. It empowers local communities to take decisions regarding development, welfare, and
administration of their areas, ensuring grassroots participation in governance. In India, rural local government is
primarily organized through the Panchayati Raj system, which includes Gram Panchayat (village level), Panchayat
Samiti (block level), and Zila Parishad (district level). These bodies are elected by the rural population and are
responsible for managing local issues such as sanitation, water supply, rural roads, and social welfare schemes. This
system ensures democratic participation at the lowest level and enhances transparency and accountability in
governance. It bridges the gap between the government and rural citizens, making public service delivery more
efficient and responsive to local needs.

Characteristics of Rural Local Government:-

1. Decentralized Administration:
Rural local government functions on the principle of decentralization, transferring authority from the central and state
governments to the local level. This ensures quicker decision-making and more locally-relevant solutions to issues
such as agriculture, roads, and water management.
2. Three-Tier System:
The Panchayati Raj system in India follows a three-tier structure—Gram Panchayat at the village level, Panchayat
Samiti at the intermediate (block) level, and Zila Parishad at the district level. Each tier has its own defined functions,
ensuring coordination and proper division of administrative responsibilities.
3. Democratic Representation:
Rural local government is based on elected representation, ensuring that the members of the panchayats are chosen
through regular elections. Every adult citizen in a village has the right to vote and stand for elections, making it an
inclusive system that reflects grassroots democracy.
4. Localized Decision-Making:
One of the core features of rural local governance is that it promotes decision-making at the local level. Villagers are
directly involved in decisions affecting their daily lives, such as building schools, roads, or allocating welfare benefits.
This increases efficiency and people’s trust in the system.
5. Financial Responsibility and Resources:
Rural local bodies have the power to raise revenue through local taxes, fees, and grants. They are also allocated funds
by the central and state governments through schemes like MGNREGA or the Finance Commission grants. Financial
autonomy enables them to implement development projects effectively.
6. Accountability and Transparency:
To ensure public trust, rural local governments must maintain transparency and accountability. Gram Sabhas (general
village assemblies) play a crucial role in reviewing panchayat activities, approving budgets, and questioning
panchayat members on fund utilization.
7. Social Inclusion and Reservation:
The Constitution mandates reservation of seats in rural local bodies for Scheduled Castes (SCs), Scheduled Tribes
(STs), and women (minimum 33%). This has enabled historically marginalized communities to gain representation
and leadership experience in governance.
 17

8. Link to Development and Welfare Programs:

Rural local governments are key agents in implementing various rural development and poverty alleviation programs
such as rural employment schemes, sanitation drives, housing for the poor, and health initiatives. Their local presence
ensures better identification of beneficiaries and more effective delivery.

Significance of Rural Local Government in Modern Times

 Strengthens grassroots democracy by giving people a voice in local governance
 Facilitates effective implementation of rural development programs
 Ensures better delivery of public services like water, roads, and sanitation
 Promotes social inclusion through reservations for SCs, STs, and women
 Enables local solutions for local problems, increasing efficiency
 Reduces dependency on distant state or central bureaucracies
 Empowers villagers economically and politically
 Acts as a training ground for future political leaders

B] URBAN LOCAL GOVERNMENT:-

Urban Local Government refers to the system of governance responsible for administering towns, cities, and
urban regions. It is designed to manage urban infrastructure, public services, and development needs such as housing,
sanitation, transportation, and environmental protection. In India, urban local government functions through various
institutions like Municipal Corporations, Municipal Councils, and Nagar Panchayats, depending on the size and
population of the urban area. These bodies are formed under the 74th Constitutional Amendment Act, 1992, which
provides them constitutional status and specific powers, functions, and responsibilities. Urban local governments are
elected by urban residents and play a critical role in shaping city development plans, maintaining civic amenities,
regulating construction, and implementing welfare programs. Their presence ensures democratic decentralization and
enables cities to grow sustainably while addressing the needs of diverse urban populations.

Characteristics of Urban Local Government:-

1. Constitutional Backing through the 74th Amendment:
The 74th Constitutional Amendment Act, 1992 gave urban local bodies a constitutional status and clearly defined their
structure, powers, and functions. This marked a shift from ad-hoc arrangements to a legally recognized system of
urban self-governance in India.
2. Three Types of Urban Local Bodies:
Urban governance operates through three major types of local bodies based on city size:
 Municipal Corporations for large cities (e.g., Mumbai, Delhi)
 Municipal Councils for medium-sized towns
 Nagar Panchayats for transitional areas between rural and urban
Each has distinct responsibilities tailored to the needs of the population it serves.
3. Democratic Representation:
Urban local government members are elected directly by the residents of wards. Mayors, councillors, and standing
committees form the political arm, while commissioners and engineers make up the executive wing. This structure
ensures public participation and representative democracy in urban areas.
 18

4. Urban Planning and Civic Management:

One of the main responsibilities of urban local bodies is urban planning—designing roads, land use, housing,
sanitation systems, and public transport. They are also responsible for issuing construction permits, maintaining public
parks, and managing garbage disposal.
5. Financial Authority and Resource Mobilization:
Urban local bodies generate revenue through property tax, user charges, license fees, grants from state and central
governments, and funds from schemes like AMRUT, Smart Cities Mission, and 14th/15th Finance Commission.
However, many struggle with inadequate funds and reliance on grants.
6. Service Delivery and Infrastructure Maintenance:
They manage essential services like drinking water supply, sewage systems, drainage, waste management, street
lighting, and urban health services. Their ability to maintain such infrastructure directly impacts the quality of urban
life.
7. Role in Welfare and Development Schemes:
Urban local bodies implement national and state welfare programs, such as the PMAY (housing), DAY-NULM
(livelihood mission), and Swachh Bharat Abhiyan. Their grassroots reach ensures better targeting and community
engagement in these schemes.
8. Challenges and Accountability Mechanisms:
Despite their importance, many urban local governments face challenges like financial instability, bureaucratic
inefficiency, and political interference. Mechanisms like ward committees, citizen charters, social audits, and RTI aim
to improve transparency and accountability.

Significance of Urban Local Government in Modern Times

 Ensures democratic participation in city governance through elections
 Manages critical services like water supply, sanitation, and roads
 Drives infrastructure development and urban planning
 Implements welfare schemes and social safety nets in slums and low-income areas
 Acts as a bridge between citizens and higher government levels
 Encourages local-level innovation and city-specific solutions
 Boosts local economic growth through planning, licensing, and regulation
 Promotes sustainability and resilience in fast-growing urban centers
 19

UNIT – 2 : DEMOCRATIC DECENTRALIZATION…

DEMOCRATIC DECENTRALISATION

Democratic decentralisation refers to the process of transferring power, authority, and responsibility from
central and state governments to local-level democratic institutions such as panchayats and municipalities. It involves
not just administrative devolution but also political empowerment—where local people participate directly or
indirectly in decision-making through elected representatives.
The key objective of democratic decentralisation is to bring governance closer to the people, especially at the
grassroots level, allowing them to plan, execute, and monitor development according to local needs. It promotes
accountability, efficiency, transparency, and public participation in governance. In India, democratic decentralisation
is enshrined in the Constitution through the 73rd and 74th Constitutional Amendments (1992), which gave legal status
to rural and urban local bodies. This marked a shift from centralized planning to a bottom-up approach, where local
institutions are empowered politically, financially, and administratively to manage their affairs.

Characteristics of Democratic Decentralisation

1. Devolution of Power to Elected Bodies
A core feature of democratic decentralisation is the transfer of power and functions to elected representatives at the
local level. In India, this includes Gram Panchayats, Panchayat Samitis, Zila Parishads in rural areas, and Municipal
Corporations or Councils in urban areas. These bodies are elected by the people and have the authority to make
decisions regarding local administration, development projects, and public services. This ensures that governance is
rooted in democratic legitimacy and popular mandate.
2. Political Participation and Representation
Democratic decentralisation fosters active political participation by enabling citizens to vote, contest elections, and
participate in Gram Sabhas or Ward Committees. It includes reservation of seats for Scheduled Castes, Scheduled
Tribes, and women (at least 33%), ensuring representation of marginalized communities. By involving people directly
in governance, it enhances inclusivity and social justice, giving voice to those traditionally left out of decision-making
processes.
3. Administrative and Functional Autonomy
Local bodies are entrusted with a range of functions and responsibilities, including local infrastructure, health,
education, sanitation, water supply, and welfare schemes. They are allowed to plan and execute development activities
independently, subject to state guidelines. This functional autonomy helps tailor policies to local conditions and
speeds up service delivery, reducing reliance on distant bureaucracies.
4. Fiscal Decentralisation
Democratic decentralisation also involves financial empowerment of local bodies. Panchayats and municipalities are
granted the power to levy taxes, fees, and charges for services. They also receive funds from state and central
governments through budgetary allocations, grants-in-aid, and schemes such as the Finance Commission transfers.
This enables them to function efficiently and fund local development without total dependency on higher levels of
government.
5. Transparency, Accountability, and Citizen Oversight
Democratic decentralisation introduces institutional mechanisms of accountability. In India, Gram Sabhas (village
assemblies) are forums where elected officials present plans, budgets, and expenditures before the people. Citizens can
question their leaders and demand transparency. Social audits, Right to Information (RTI), and participatory planning
further enhance accountability. This local oversight reduces corruption and improves the quality of governance.
 20

6. Capacity Building and Administrative Support

Successful decentralisation requires that local institutions have the capacity to govern effectively. This includes
training of elected members and administrative staff, access to technical resources, and data for informed decision-
making. Governments often provide support through State Election Commissions, Panchayati Raj Ministries, and
training institutes to enhance local governance capacity. Without this support, decentralisation risks becoming
symbolic rather than substantive.

Origin, Development, and Functioning of Democratic Decentralisation in India

1] Origin: Historical Roots and Early Initiatives
The concept of democratic decentralisation in India can be traced back to ancient times, where local village
assemblies and councils played important roles in governance, especially under Chola and other South Indian
dynasties. However, under colonial rule, local self-government was reduced to an administrative convenience, lacking
democratic character. The modern framework began with Lord Ripon’s Resolution on Local Self-Government (1882),
considered the first conscious step toward democratic local administration. Ripon emphasized the need for elected
local bodies, public participation, and accountability. This legacy was carried forward with limited success during the
British era. Post-independence, Mahatma Gandhi’s vision of Gram Swaraj—village self-rule—gained prominence. He
believed true democracy could only be achieved by empowering villages to govern themselves, economically and
politically. Though the early years of independent India focused more on centralised planning, the need for
decentralisation remained a key political ideal.

2] Development: Constitutional Milestones and Legal Backing

A major breakthrough came in 1992 with the enactment of the 73rd and 74th Constitutional Amendment Acts, which
institutionalised democratic decentralisation in rural and urban governance. The 73rd Amendment established the
Panchayati Raj system with a three-tier structure: Gram Panchayat (village), Panchayat Samiti (block), and Zila
Parishad (district). The 74th Amendment focused on urban governance through Municipal Corporations, Municipal
Councils, and Nagar Panchayats.
Both amendments:

 Gave constitutional status to local bodies

 Mandated elections every five years
 Introduced reservations for SCs, STs, and women
 Required State Finance Commissions to recommend resource sharing
 Set up State Election Commissions to conduct free and fair elections
These amendments marked the true beginning of democratic decentralisation in India.

3] Functioning of Democratic Decentralisation in India

a. Political Functioning
Local elections are held regularly across states for Panchayats and Municipalities. Citizens directly elect ward
members and councilors, while heads like Sarpanch or Mayors are elected directly or indirectly, depending on state
laws. These institutions debate and decide on local issues such as roads, schools, water, sanitation, and housing.
Participation of women and marginalized groups has improved political representation, especially at the grassroots
level.
b. Administrative Functioning
Local bodies prepare and implement development plans, supervise schools, health centers, water schemes, and road
construction. They coordinate with line departments like Public Works, Health, and Education. However, lack of
 21

skilled manpower, bureaucratic control, and overlapping jurisdiction often hamper smooth functioning. Several states
have empowered Panchayats through the devolution of 29 subjects listed in the Eleventh Schedule (for rural areas) and
18 subjects in the Twelfth Schedule (for urban areas), but actual implementation varies.
c. Fiscal Functioning
The Finance Commissions (Central and State) provide grants to local bodies. Local governments also collect revenue
through property tax, license fees, and market charges. However, many rural and urban bodies face fund shortages,
impacting service delivery and autonomy. Central schemes like MGNREGA, Swachh Bharat Mission, Smart Cities
Mission, and National Rural Health Mission are implemented through local institutions. But excessive scheme-based
funding often limits flexibility in local planning.
d. Community Participation and AccountabilityThe Gram Sabha is a powerful tool of participatory democracy. It
approves village plans, audits accounts, and evaluates performance of the Panchayat. In urban areas, Ward
Committees and Resident Welfare Associations play similar roles, though with less statutory power. Social audits,
public hearings, and RTI have increased transparency. However, weak awareness, political interference, and elite
capture remain challenges to genuine people’s participation.

DIRECTIVE PRINCIPLES OF STATE POLICY

The Local Government system in India is a constitutionally recognized mechanism for decentralized
administration, aiming to bring governance closer to the people. While the idea of local self-government has historical
roots, its modern constitutional foundation is deeply linked with the Directive Principles of State Policy (DPSP),
enshrined in Part IV of the Indian Constitution (Articles 36–51). The DPSPs are non-justiciable guidelines meant to
direct the State towards ensuring social and economic democracy. One of their most critical but often understated
roles is in guiding the development and functioning of rural and urban local bodies.

Directive Principles of State Policy (DPSP)

The Directive Principles of State Policy (DPSP) are guidelines or principles laid down in Part IV (Articles 36
to 51) of the Indian Constitution. Inspired by the Irish Constitution, they aim to establish social and economic
democracy in India. While they are non-justiciable, meaning they are not enforceable by any court, they are
fundamental in the governance of the country. The State is expected to keep them in mind while formulating laws and
policies to promote welfare, justice, and equitable development. DPSPs seek to ensure that the State works toward
reducing inequality, improving living conditions, and promoting education, health, environment protection, rural
development, and international peace. They act as a moral compass for governments and have played a key role in the
evolution of socio-economic legislation in India, such as land reforms, reservation policies, and environmental laws,
thus making them vital to nation-building.

Features of DPSP
1. Constitutional and Moral Force
DPSPs are enshrined in the Constitution (Articles 36 to 51), giving them a constitutional status. Though not
enforceable by courts, they carry a moral and political obligation on the State to implement them. Parliament and State
Legislatures are expected to keep DPSPs in view while enacting laws.
2. Goal of Welfare State
The core purpose of DPSPs is to transform India into a welfare state. They aim to ensure economic and social
justice, eliminate inequality, and promote the common good. Provisions like equal pay for equal work (Art. 39d),
living wage (Art. 43), and universal education (Art. 45) reflect this vision.
 22

3. Classification into Three Broad Categories

DPSPs can be broadly classified as:

 Socialist Principles: Articles focusing on socio-economic justice and equal distribution of wealth (e.g.,
Art. 38, 39).
 Gandhian Principles: Inspired by Mahatma Gandhi’s ideals, including promotion of cottage industries
(Art. 43), prohibition (Art. 47), and panchayati raj (Art. 40).
 Liberal-Intellectual Principles: Related to international peace, uniform civil code (Art. 44), and
environment protection (Art. 48A).
4. Dynamic and Evolving Nature
DPSPs are flexible and dynamic. Parliament has interpreted and expanded their scope through amendments
and judicial interpretations. For example, the 86th Amendment made elementary education (Art. 45) a fundamental
right, previously part of DPSPs.
5. Guiding Role in Legislation
Many laws and policies in India derive legitimacy from DPSPs. Land reforms, maternity benefits,
environmental regulations, affirmative action, and rural employment schemes (like MGNREGA) were inspired by
their principles. Though not binding, courts have often invoked DPSPs to interpret fundamental rights in a progressive
manner.
6. Harmonization with Fundamental Rights
Though there can be tensions between DPSPs and Fundamental Rights, the Supreme Court in cases like
Kesavananda Bharati (1973) and Minerva Mills (1980) emphasized the need for harmonious construction between the
two, considering both essential to constitutional balance.

DPSP as the Constitutional Foundation of Local Self-Government

Among the various articles of the DPSP, Article 40 explicitly states:
 “The State shall take steps to organize village panchayats and endow them with such powers and authority
as may be necessary to enable them to function as units of self-government.”

This article recognizes village panchayats not just as administrative units, but as institutions of self-governance. It
serves as the constitutional foundation for democratic decentralization in India. Though not enforceable by courts,
Article 40 has played a vital role in the eventual institutionalization of the Panchayati Raj system.

From DPSP to the 73rd and 74th Amendments

Guided by the spirit of Article 40, the Indian State gradually moved toward granting real power to local
bodies. The turning point came in 1992 with the enactment of the 73rd and 74th Constitutional Amendments, which
gave constitutional status to rural and urban local governments, respectively. These amendments:

 Provided a three-tier structure for Panchayati Raj

 Mandated regular elections every five years
 Reserved seats for SCs, STs, and women
 Established State Election Commissions and Finance Commissions
 Transferred 29 subjects to Panchayats (11th Schedule) and 18 subjects to Municipalities (12th Schedule)
 23

DPSPs and the Spirit of Local Governance

Beyond Article 40, other DPSPs also align closely with the aims of local self-government:

 Article 38: Promotes welfare of the people by securing social, economic, and political justice at all levels.
Local governments help achieve this at the grassroots.
 Article 39: Seeks to ensure equal opportunity, adequate livelihood, and resource distribution—all goals
that local bodies address through rural and urban development programs.
 Article 43: Encourages cottage industries and rural economy, which Panchayats support through local
planning and MGNREGA.
 Article 47: Duty of the State to raise nutrition and standard of living—tasks often implemented by local
health missions and municipal bodies.

BALWANT RAI MEHTA COMMITTEE REPORT

The Balwant Rai Mehta Committee was a landmark in the history of rural development and local governance
in India. Constituted by the Government of India in 1957, this committee was tasked with the evaluation of the
Community Development Programme (CDP) and the National Extension Service (NES), both of which were
initiatives aimed at rural upliftment and development post-independence. The committee’s report, submitted in 1959,
laid the foundation for the Panchayati Raj system in India, a decentralized form of government where the power was
given to the local self-governing institutions.

Purpose of Constituting the Committee

The main objective behind constituting the Balwant Rai Mehta Committee was to analyze and assess the success and
shortcomings of the CDP and NES, which were introduced in 1952 and 1953, respectively. These programs were
designed to bring about socio-economic development in rural areas through community participation and the
extension of services like agriculture, health, and education. However, by the mid-1950s, there was a growing
realization that these programs were not achieving their desired impact. The committee was, therefore, formed to:
1. Evaluate the Performance: Assess the effectiveness of CDP and NES in meeting their objectives.
2. Identify Gaps: Understand the reasons behind the shortcomings and failures of these programs.
3. Recommend Improvements: Suggest measures to improve the delivery and effectiveness of rural development
programs.
4. Promote Decentralization: Explore ways to involve local populations more directly in the governance and
development processes.

Main Recommendations of the Committee

The Balwant Rai Mehta Committee made several significant recommendations that reshaped the structure of rural
governance in India. The key recommendations were:
1. Three-tier System of Panchayati Raj: The committee recommended the establishment of a three-tier system of local
governance, which included:
o Village Level (Gram Panchayat): The basic unit of governance directly elected by the people.
o Block Level (Panchayat Samiti): An intermediary level, serving a group of villages, with
representatives elected by the Gram Panchayats.
o District Level (Zila Parishad): The apex body at the district level, with representatives from the
Panchayat Samitis.
 24

2. Democratic Decentralization: Emphasized the need for democratic decentralization, transferring powers and
responsibilities from the central and state governments to these local bodies to ensure effective participation of local
communities in governance and development.
3. Adequate Resources and Powers: The committee stressed that these local bodies should be endowed with adequate
resources, both financial and administrative, to perform their functions effectively. They should have the power to
levy taxes and raise funds independently.
4. Integrated Approach: Suggested an integrated approach to rural development, where planning and execution of
development programs are carried out by the Panchayati Raj institutions.
5. Administrative Support: Recommended providing adequate administrative support and professional guidance to
these institutions to ensure efficient functioning.
6. Role of Women and Marginalized Groups: Highlighted the importance of involving women and marginalized
groups in the decision-making processes at all levels of Panchayati Raj institutions.

Significance of the Committee’s Recommendations

The recommendations of the Balwant Rai Mehta Committee were significant for several reasons:
1. Foundation of Panchayati Raj: The committee’s report laid the groundwork for the establishment of the
Panchayati Raj system in India, which was officially launched on October 2, 1959, in Nagaur, Rajasthan.
2. Decentralization of Power: It marked a shift from centralized to decentralized governance, empowering local
bodies and ensuring greater participation of the rural populace in decision-making processes.
3. Enhanced Rural Development: By involving local communities in planning and execution, the
recommendations aimed to make rural development programs more effective and responsive to local needs.
4. Inclusion and Empowerment: The emphasis on including women and marginalized groups in governance
processes aimed at promoting social equity and empowerment.
5. Administrative Reforms: The recommendations led to significant administrative reforms, improving the
efficiency and effectiveness of rural governance.

Achievements and Impact

1. Institutionalization of Local Governance: The three-tier system of Panchayati Raj institutions became an
integral part of India’s governance structure, institutionalizing local self-governance.
2. Increased Local Participation: The establishment of Gram Panchayats, Panchayat Samitis, and Zila Parishads
increased local participation in governance and development, making these processes more democratic and
inclusive.
3. Improved Service Delivery: Decentralized governance led to better implementation and monitoring of rural
development programs, improving service delivery in areas like health, education, and agriculture.
4. Capacity Building: The focus on providing administrative support and professional guidance helped build the
capacity of local institutions, enhancing their ability to manage development programs effectively.
5. Women’s Empowerment: The involvement of women in Panchayati Raj institutions contributed to their
empowerment and increased their participation in the public sphere.
6. Socio-Economic Development: The decentralized approach to rural development contributed to socio-
economic development in rural areas, addressing issues like poverty, unemployment, and inequality more
effectively.
7. Policy Influence: The success of the Panchayati Raj system influenced subsequent policies and reforms in
local governance, including the 73rd Constitutional Amendment Act of 1992, which gave constitutional status
to Panchayati Raj institutions.
 25

ASHOK MEHTA COMMITTEE

The Ashok Mehta Committee was established by the Government of India in December 1977 to examine the
functioning of the Panchayati Raj institutions and suggest measures to strengthen them. This committee was set up in
the context of widespread dissatisfaction with the existing Panchayati Raj system, which had been based on the
recommendations of the Balwant Rai Mehta Committee. By the late 1970s, it was evident that the system was not
functioning as effectively as intended. The Ashok Mehta Committee’s report, submitted in August 1978, provided a
comprehensive review and proposed significant reforms to revitalize local self-governance in India.

Rationale Behind Constituting the Committee

The Ashok Mehta Committee was constituted with the following primary objectives:
1. Evaluate the Existing System: Assess the effectiveness of the Panchayati Raj institutions established based on the
Balwant Rai Mehta Committee’s recommendations.
2. Identify Problems: Understand the challenges and obstacles that hindered the proper functioning of these
institutions.
3. Suggest Reforms: Propose measures to strengthen and revitalize the Panchayati Raj system to make it more
effective and responsive to local needs.
4. Promote Local Participation: Explore ways to enhance the participation of local communities in governance and
development processes.

Ashok Mehta Committee Recommendations

1. Two-Tier System: The three-tier system of Panchayati Raj should be replaced by a two-tier system,
comprising the Zila Parishad at the district level and the Mandal Panchayat below it, consisting of a group of
villages with a total population of 15,000 to 20,000.
2. Decentralization Starting Point: A district should be the initial point for decentralization under popular
supervision below the state level.
3. Executive Body for District Planning: The Zila Parishad should act as the executive body responsible for
planning at the district level.
4. Political Party Participation: There should be official participation of political parties at all levels of Panchayat
elections.
5. Compulsory Taxation Powers: Panchayati Raj institutions should have compulsory powers of taxation to
mobilize their own financial resources.
6. Regular Social Audit: There should be a regular social audit conducted by a district-level agency and a
committee of legislators to ensure that funds allotted for vulnerable social and economic groups are spent on
them.
7. Restriction on State Government Supersession: The state government should not supersede Panchayati Raj
institutions. In case of an imperative supersession, elections should be held within six months from the date of
supersession.
8. Separate Nyaya Panchayats: The Nyaya Panchayats should be kept as separate bodies from development
Panchayats and should be presided over by a qualified judge.
9. Conduct of Elections: The Chief Electoral Officer of a state, in consultation with the Chief Election
Commissioner, should organize and conduct Panchayati Raj elections.
10. Transfer of Development Functions: Development functions should be transferred to the Zila Parishad, and all
development staff should work under its control and supervision.
11. Role of Voluntary Agencies: Voluntary agencies should play an important role in mobilizing the support of the
people for Panchayati Raj.
 26

12. Minister for Panchayati Raj: A Minister for Panchayati Raj should be appointed in the state council of
ministers to oversee the affairs of Panchayati Raj institutions.
13. Reservation for SCs and STs: Seats for Scheduled Castes (SCs) and Scheduled Tribes (STs) should be
reserved based on their population.
14. Constitutional Recognition: Constitutional recognition should be accorded to the Panchayati Raj institutions to
provide them with the requisite status, sanctity, stature, and assurance of continuous functioning.

Significance of the Committee’s Recommendations

The recommendations of the Ashok Mehta Committee were significant for several reasons:
1. Restructuring of Panchayati Raj: The proposed two-tier system aimed to streamline and strengthen local
governance by reducing administrative complexities and improving efficiency.
2. Constitutional Status: The suggestion to provide constitutional recognition to Panchayati Raj institutions was a
major step towards ensuring their stability and protecting them from political and administrative interference.
3. Enhanced Democracy: Direct elections and the involvement of political parties were expected to enhance
democratic practices and accountability at the local level.
4. Empowerment of Local Bodies: The emphasis on financial autonomy and the developmental role of
Panchayati Raj institutions aimed at empowering local bodies to take charge of their development.
5. Inclusive Governance: The recommendations for reservations ensured that women and marginalized groups
had a voice in local governance, promoting inclusive and equitable development.
6. Integrated Planning: The proposal for a District Planning Committee underscored the importance of integrated
and coordinated planning for effective rural development.

Achievements and Impact

While the recommendations of the Ashok Mehta Committee were not immediately implemented, they had a
significant impact on subsequent reforms and policies. The major achievements and impacts include:
 Influence on 73rd Constitutional Amendment: The committee’s recommendations significantly influenced the
73rd Constitutional Amendment Act of 1992, which provided constitutional status to Panchayati Raj
institutions and incorporated many of the suggested reforms.
 Establishment of Mandals and Zila Parishads: The two-tier system of Mandals and Zila Parishads was adopted
in several states, streamlining local governance structures.
 Enhanced Political Participation: The involvement of political parties and direct elections improved political
accountability and participation at the local level.
 Empowerment through Reservations: The reservation policies for women, SCs, and STs led to increased
participation and representation of these groups in local governance, promoting social equity.
 Financial and Administrative Reforms: The emphasis on financial autonomy and the developmental role of
Panchayati Raj institutions led to reforms that improved the financial and administrative capacity of local
bodies.
 Integrated Rural Development: The concept of District Planning Committees contributed to more integrated
and coordinated planning and implementation of rural development programs.
 Strengthening Local Governance: The overall impact of the Ashok Mehta Committee’s recommendations was
the strengthening of local self-governance in India, making it more effective, democratic, and responsive to
local needs.
 27

UNIT – 3 : RURAL LOCAL GOVERNMENT

RURAL LOCAL GOVERNMENT

Rural local government refers to the system of decentralized governance that operates in the villages and rural
regions of a country. It empowers local communities to take decisions regarding development, welfare, and
administration of their areas, ensuring grassroots participation in governance. In India, rural local government is
primarily organized through the Panchayati Raj system, which includes Gram Panchayat (village level), Panchayat
Samiti (block level), and Zila Parishad (district level). These bodies are elected by the rural population and are
responsible for managing local issues such as sanitation, water supply, rural roads, and social welfare schemes. This
system ensures democratic participation at the lowest level and enhances transparency and accountability in
governance. It bridges the gap between the government and rural citizens, making public service delivery more
efficient and responsive to local needs.

Characteristics of Rural Local Government:-

1. Decentralized Administration:
Rural local government functions on the principle of decentralization, transferring authority from the central and state
governments to the local level. This ensures quicker decision-making and more locally-relevant solutions to issues
such as agriculture, roads, and water management.
2. Three-Tier System:
The Panchayati Raj system in India follows a three-tier structure—Gram Panchayat at the village level, Panchayat
Samiti at the intermediate (block) level, and Zila Parishad at the district level. Each tier has its own defined functions,
ensuring coordination and proper division of administrative responsibilities.
3. Democratic Representation:
Rural local government is based on elected representation, ensuring that the members of the panchayats are chosen
through regular elections. Every adult citizen in a village has the right to vote and stand for elections, making it an
inclusive system that reflects grassroots democracy.
4. Localized Decision-Making:
One of the core features of rural local governance is that it promotes decision-making at the local level. Villagers are
directly involved in decisions affecting their daily lives, such as building schools, roads, or allocating welfare benefits.
This increases efficiency and people’s trust in the system.
5. Financial Responsibility and Resources:
Rural local bodies have the power to raise revenue through local taxes, fees, and grants. They are also allocated funds
by the central and state governments through schemes like MGNREGA or the Finance Commission grants. Financial
autonomy enables them to implement development projects effectively.
6. Accountability and Transparency:
To ensure public trust, rural local governments must maintain transparency and accountability. Gram Sabhas (general
village assemblies) play a crucial role in reviewing panchayat activities, approving budgets, and questioning
panchayat members on fund utilization.
7. Social Inclusion and Reservation:
The Constitution mandates reservation of seats in rural local bodies for Scheduled Castes (SCs), Scheduled Tribes
(STs), and women (minimum 33%). This has enabled historically marginalized communities to gain representation
and leadership experience in governance.
 28

8. Link to Development and Welfare Programs:

Rural local governments are key agents in implementing various rural development and poverty alleviation programs
such as rural employment schemes, sanitation drives, housing for the poor, and health initiatives. Their local presence
ensures better identification of beneficiaries and more effective delivery.

Significance of Rural Local Government in Modern Times

 Strengthens grassroots democracy by giving people a voice in local governance
 Facilitates effective implementation of rural development programs
 Ensures better delivery of public services like water, roads, and sanitation
 Promotes social inclusion through reservations for SCs, STs, and women
 Enables local solutions for local problems, increasing efficiency
 Reduces dependency on distant state or central bureaucracies
 Empowers villagers economically and politically
 Acts as a training ground for future political leaders

GRAM SABHA
Gram Sabha too has got a Constitutional status along with the three-tiers of Panchayati Raj. A Gram Sabha is
in the nature of the primary village assembly consisting of the people themselves and not of their representatives. It
provides the real foundation to the structure of rural democracy. It is generally composed of all the people of a gram
sabha area whose name appear in the voter list. A Sabha area may be constituted of one or more revenue villages.
This means to say that one big village or two or more small villages may have a common gram sabha. In Punjab the
minimum size of population to establish a Gram Sabha is 200, in Haryana it is 500 and in H.P. it is 1000 whereas in
some other states such as Karnataka, Assam, Bihar etc. It is more than 5000.
Composition:
 Persons, those who are above 18 years of age.
 Living in the village.
 Whose names are included in the electoral rolls for the Panchayat at the village level.
Meetings:
A Gram Sabha is required to meet for a minimum of two to four times a year depending upon the state.
Sometimes meetings where held in some National and international days. They are:
 Republic Day - 26th January
 Independence Day - 15th AugustLabours day - 1st May
 Gandhi Jayanti - 2nd October
Generally, it is the Sarpanch who fixes a meeting and he is responsible to call the minimum number of
meetings of gram sabha as required by law.
Functions of Gram Sabha:
 To help implementation of the development programmes and schemes of the Panchayat.
 To identify beneficiaries for different programmes and schemes. However, if the Gram Sabha fails to identify
such beneficiaries within a reasonable time, the Gram Panchayat shall identify the beneficiaries.
 To solicit support — in cash or kind or both and voluntary labour — from the public for community welfare
programmes.
 To support the programmes of mass education and family welfare.
 To promote unity and harmony among all sections of the society in the village.
 To seek clarification from the Mukhiya, Up-Mukhiya and other members of the Gram Panchayat about any
particular activity, scheme, income and expenditure.
 To discuss and recommend appropriate action with regard to reports of the Vigilance Committee.
 29

 Other related matters brought to the notice of the Gram Sabha.

 To consider levy of taxes, rates, rents & fees & enhancement of rates thereof.
 To consider all such matters as may be referred by the Gram Panchayat for its decision.
Role of Gram Sabha:
As noted earlier the institution of gram sabha provides the foundation to the grass root democracy. It provides
an element of direct democracy where people are to be involved in a true, live and working sense. It is an institution
through which the concept of participatory, democracy takes firm roots in the orbit of a small community, when face
to face relationship and direct communication with leadership and administration is established. Besides participatory
democracy, the working of the Gram Sabha facilitates in boosting up the popular interest in political, civic and
developmental affairs and furthers their enthusiasm in all village affairs.
It is because of such a significance of gram sabha that it has been accorded the Constitutional status by the
way of 73rd Constitutional Amendment Act. Infact, it was operational in a number of states prior to the Constitutional
amendment but in most of the cases its working was not proper and it failed to evoke the popular interest. Also in a
number of states, it was found that the weaker sections and women had their own complaints of neglect. At many
places they were virtually out of Gram Sabha meetings thus forcing a blow to the spirit of democracy. All this has
been happening due to lack of legislative support, public apathy, absence of political will and overall decline of the
system of Panchayati Raj.
Over the years, there was a consistent demand for the revitalization of Panchayati Raj and providing of legal
base to the institution of Gram Sabha. With the latest amendments there is now a better working of Panchayati Raj
institutions and a definite mechanism of Gram Sabha. Although the overall picture is not much encouraging and the
results are not as per the expectations of policy makers, still at number of places this institution has started making a
genuine impact. Due to active participation of people, panchayat members and Sarpanches and also with the
interventions of NGOs we can witness the genuine transformations. With an increased awareness among people and
the local leaders, we can expect this institution to become a solid pillar of direct democracy.

VILLAGE PANCHAYAT
India has the oldest tradition of Gram or village panchayats. We can find reference to this institution of
‘little republics’ in the ancient writings. Now days, it constitutes the lowest tier of three-tier Panchayat Raj system.
Demographically speaking, every small locality possessing a few scattered hamlets, is described as a village. But all
the villages have not been put into separate independent ‘panchayats’. Only the large sized ones have been conferred
the status of separate ‘panchayats’ whereas the rest of them have been grouped together to form composite
panchayats. This indicates why the total number of panchayats in the country is 2,18,116, as against 6.4 lakh villages.
5.6.1
Composition:
With variation in the size of a panchayat /sabha area the size or composition of gram panchayats also varies.
As the Punjab State has the lowest size of 200 for the creation of a Panchayat, the number of its members too is the
lowest i.e., 5 to 13. In Haryana it is 6 to 20. This membership varies with the size of a gram sabha thus it may range
from 5 to 30 in different states. Till recently the all India average of the size of gram panchayats was 15.21 The
election of the Panches is generally conducted on the basis of wards which provide a fair and equal representation to
every locality.
The members of a panchayat are called the panches. The presiding officer of the panchayat wears a number
of designations. In Andhra Pradesh, J & K, Madhya Pradesh, Maharashtra, Orissa, Punjab, Rajasthan and Haryana, he
is called the ‘Sarpanch’, and in Himachal Pradesh and Uttar Pradesh, the ‘Pradhan’. In Bihar and Orissa he is known
as ‘Mukhiya’ and in West Bengal, the ‘Adhyaksha’. The sarpanch occupies a place of cardinal importance in the
socio-political life of a village.
The Sarpanch may be elected directly or indirectly by the panches. The later one is followed by most of the
states. In some of the states there is a provision of the election of UP Sarpanch (Deputy Sarpanch) such as in
Haryana and H.P.
 30

Reservation of Seats:
As per the Constitutional Amendment Act 1992, offices of panches are to be reserved for:
 Scheduled Castes and Scheduled Tribes: in proportion of their population in the panchayat area and
one-third of these reserved seats are meant for SC/ST women.
 Women: Of the total seats, at least one-third are to be reserved for women, including those of SC/ST
women.
 Backward Classes: As per the Act, reservation can be made for backward classes
Term:
As per the constitutional provisions, a gram panchayat is elected for a uniform term of five years in all the
states. Earlier there were variations and the term varied from three to six years
Powers and Functions of a Sarpanch:
The Sarpanch of a Gram Panchayat with some variations from state to state, is to:
(a) be responsible for convening the meetings of the Gram Sabha and preside over its meetings;
(b) be responsible for convening the meetings of the Gram Panchayat and preside over its meetings;
(C) be responsible for the maintenance of the records of the Gram Panchayat;
(d) has the general responsibility for the financial and executive administration of the Gram Panchayat;
(e) exercise administrative supervision and control over the work of the staff of the Gram Panchayat and the
officers and employees whose services may be placed at the disposal of the Gram Panchayat by any other authority ;
(f) Be responsible for the transaction of business connected with this Act or for the purpose of making any
order authorized thereby, exercise such powers, perform such functions and discharge such duties as may be
exercised, performed or discharged by the Gram Panchayat.
(g) exercise such other powers, perform such other duties as the Gram Panchayat may by general or special
resolution, direct or as the State Government may prescribe.
Functions of the Gram Panchayats:
The Balwant Rai Mehta Committee was of the opinion that all the functions concerning a village within the
jurisdiction of a village panchayat should be the responsibility of the village panchayat except for the functions
involving similar interests of more than one village panchayat. The committee assigned some compulsory functions
relating to civic amenities, administrative functions, financial functions and welfare functions.
A. Civic Functions: Civic functions of a Gram Panchayat incude:
 Control of all the public streets, water-ways;
 Construction of new bridges or culverts; .
 Diverting, discontinuing or closing of any public street, culvert or bridge;
 Widening or otherwise improving any public street, culvert or bridge; deepen or otherwise improve
waterways;
 Cuting any hedge or branch of any tree projecting on a public street;
 Prohibit bathing, washing of clothes and animals or doing of other acts likely to pollute the course water
meant for drinking purposes.
 Naming of streets and numbering of buildings.
 It is also responsible for sanitation; cleaning of public roads, drains, tanks and wells, etc.; management of
cattle ponds;
 Prevention of fire or other similar calamities;
 Destruction of stray and mad dogs;
 Lighting of village streets and so on.
 31

B. Developmental and Economic Functions : With the launching of a number of rural development programmes, the
gram panchayats are associated with a number of developmental functions such as : agriculture, irrigation,
cooperation, animal husbandry, industry, education and social education, health, rural housing, adult education etc.
The economic activities of a panchayat may be the maintenance of its property, which may include the land
given on rental basis or buildings etc. For the purpose of renting out for marriages, etc. Maintaining and running cattle
breeding centres; organising and managing of public markets, fairs and exhibitions; raising, preserving and improving
village forests, pastures and orchards; etc.
C. Legislative Functions: Every gram panchayat is involved in a number of legislative functions which include
passing of resolutions and making bye-laws. It assures the implementation of resolutions and may fix penalties for
the violation of its bye-laws or resolutions.
D. Judicial Functions: The panchayats in India also enjoy some judicial and quasi-judicial powers. A panchayat,
thus, acts as a small village court having the following civil revenue and petty criminal jurisdiction in its respective
area
 The Civil Judicial Powers are vested in a panchayat relating to any of the suits mentioned here: (a) suit for
the recovery of movable property or the value of such property; (b) suit for the money or goods due on
contracts, or price thereof; (c) suit for compensation for wrongfully taking or injuring movable property;
and (d) any other suit mentioned in the particular act.
 The revenue judicial powers of a panchayat extends in revenue matters, such” as recovery of dues etc.
 The criminal jurisdiction of a panchayat is confined to the trials of offences specified in the schedules
attached to the respective Panchayat Acts. It may include items out of Indian Penal Code 1860 or other
Acts.
E. Administrative Functions: A number of administrative functions in the list of functions of Panchayats include:.
 prohibiting the use of water of a well, pond or other , excavation suspected to be dangerous to the public
health; .
 regulating or prohibiting the dyeing or tanning of skins within certain radius of the residential area of a
village;
 regulation or prohibition of the excavation of earth or stone or other materials, establishment of brick kilns
and charcoal kilns, pottery-kilns, steeping of hemp or any other plant within certain prescribed area of the
village;
 regulation of the slaughter of animals; prohibit beggary; regulate the flaying and disposal of dead
animals; regulate offensive and dangerous trade or practices, and so on.
 financial functions such as the preparation of budget, maintaining of the accounts, levying of taxes, fees,
fines etc.

PANCHAYAT SAMITI

Panchayat Samiti is the intermediate tier in the three tiered Panchayati Raj set up. It exists at the block level
in most the states and at the ‘taluka’ level in some states (such as Maharashtra and Gujarat) – a level between the
block and district. Block is not a traditional institution and it was created after the implementation of Community
Development Programme and the National Extension Service during the first five year plan. The nomenclature of the
Panchayat Samiti too varies, like that of Gram Panchayat. It is known as Anchalik Panchayat in Assam, Anchalik
Parishad in West Bengal, the Janpada Panchayat in Madhya Pradesh, Panchayat Union Council in Tamil Nadu, Taluk
Development Board in Karnataka, the Kshetra Samiti in Uttar Pradesh and Panchayat samiti in Punjab, Haryana,
Andhra Pradesh, Bihar, Orissa, Rajasthan.
 32

Composition:
The area of a block or the size of a Samiti area too varies from state to state. However, it generally covers 70 to 100
villages. As far as its composition is concerned, before the Constitutional Amendment Act it was constituted of
indirectly elected and associate members. After the amendment, like all other local bodies directly elected members
must be there as the basic members. The number of members of a Samiti may range from 10 to 70 depending upon
the population in the block/taluka. Along with directly elected members, representatives of Sarpanches of the gram
panchayats falling in samiti area are included. MPs and MLAs relating to the particular Panchayat Samiti area are
also associated with it. A system of Reservation of Seats has been provided for the Panchayat Samiti in the following
manner:
(a) The number of seats to be reserved for the Scheduled Castes bears nearly the same proportion of
the total number of seats to be filled by direct election as the population of the SCs to the total
population in Samiti area. Such seats may be allotted by rotation to different constituencies in a
Panchayat Samiti.
(b) Not less than 1/3 of the seats reserved are for SC women. Not less than 1/3 of the total number of
seatsto be filled by direct election have been reserved for women including those for SC women.
Such seats may be allotted by rotation to different constituencies.
Functions:-
The Panchayat Samiti meets at regular intervals to take stock of the activities and discuss developmental matters of
local interest. Broadly, the functions of the Panchayat Samiti can be classified as:
 Delegated function,
 Community development function, and
 Supervisory functions.
1) Delegated functions: The delegated functions include implementation and co-ordination of policies of
development as determined by the state government. It is through the samitis that the state government implements the
developmental projects in the grass-root level and associates the people with such activities.
2. Community development function: The function of community development include the planning and
implementation of social welfare programs especially in the field of
a. Agriculture,
b. Irrigation,
c. Cottage and small scale industries,
d. Co-operatives,
e. Education, etc.
Through this program the Samiti gets a chance to tackle the peculiar problems of the area and provides an opportunity
to experiment developmental projects for the area.
3. Supervisory functions: The Panchayat Samiti has another very important function of supervising the work of the
Gram Panchayats within the block. It may also examine and modify the budget of the Gram Panchayats

ZILLA PARISHAD

Zila Parishad constitutes the apex of the Panchayati Raj structure. As the name indicates, the Zila Parishad is
a body set up at the district level. At the time of 73rd Constitution Amendment Act, it existed in all the states except
Assam and Tamil Nadu. However, states like Haryana, M.P. and Orissa abolished the institution of Zila Parishads.
The latest Constitution Amendment Act, however, provides for uniformity concerning the composition and powers of
Zila Parishad. At present there are over six hundred Zila Parishads in the country. The pattern of membership of the
Zila Parishad also varies from state to state. There are three types of Zila Parishads which are:
 33

(i) purely advisory and coordinating,

(ii) fully empowered district self-governing body with the panchayat samiti as agent,
(iii) mid-way between the two with some exclusive functions and own finances in addition to its
coordinating and advisory body.
Composition:-
The composition of a Zilla Parishad, which is a local self-government institution at the district level in India, generally
includes the following components:

 Members: The Zilla Parishad consists of elected members who represent different constituencies within
the district. These members are elected through direct elections held periodically, usually every five years.

 Chairperson: The Zilla Parishad is headed by a Chairperson who is elected from among the elected
members. The Chairperson presides over the meetings and represents the Zilla Parishad at various forums.

 Vice Chairperson: The Zilla Parishad also has a Vice Chairperson who supports the Chairperson and
takes over the responsibilities in their absence.

 Standing Committees: To facilitate the smooth functioning of the Zilla Parishad, various standing
committees are formed. These committees specialize in different sectors such as health, education,
agriculture, finance, and public works. Members are appointed to these committees to oversee and address
specific issues and make recommendations.

 Administrative Staff: The Zilla Parishad has administrative staff that assists in the day-to-day
functioning of the organization. This includes officers, clerks, and other support staff responsible for
implementing and executing the decisions and policies of the Zilla Parishad
Structure of Zilla Parishad:-
Number of Members
 Each Zilla Parishad has a minimum of 50 and a maximum of 75 members as determined by the State
Election Commission based on population.
 All these members are elected through direct election.
 The accepted member system has been completely discontinued.
 All the Chairpersons of all the Panchayat Samiti in the district are ex-officio members of the Zilla
Parishad.
Eligibility of Member

 To contest the election as a Zilla Parishad member the following eligibility conditions must be fulfilled.
 He should be a citizen of India.
 He must have completed 21 years of age.
 Should be eligible as per Act 1961 (Zilla Parishad Panchayat Samiti Act) or as amended thereto.
Reservation

 Zilla Parishad Act 1961 provides for the reservation of specific seats.

 Also provision of reserved seats for women as per the 110th constitutional amendment, the method of taking
associate members was stopped.
Tenure

 5 years but the State Government has the right to dissolve the Zilla Parishad for any reason.

 After the dissolution of such Zilla Parishad, it is mandatory to hold elections within 6 months from this date.
 34

Chairman:-
The Chairman of a Zila Parishad who may be called Pramuki, President or Chairman is generally elected by the
members of Zila Parishad. He enjoys vast powers and dignified position in the district.
He has powers to:
(a) convene, preside over and conduct meetings of the Zila Parishad ;
(b) perform all the duties imposed and exercise all the powers conferred on the Chairman under this
Act and rules made there under;
(c) exercise administrative supervision and control over the Chief Executive Officer and through him,
all officers and other employees of the Zila Parishad and the officers and employees whose
services may be placed at the disposal of the Zila Parishad by the State Government;
(d) exercise such other powers, perform such other functions and discharge such other duties as the
Zila Parishad may direct or as the State Government may by rules made in this behalf, prescribe;
(e) exercise all supervision over the financial and executive administration of the Zila Parish ad and
place before the Zila Parishad all questions connected therewith which shall appear to him to
require its orders and for this purpose may call for records of the Zila Parishad ;
(f) have power to accord sanction up to a sum of rupees in a year for the purpose of providing
immediate relief to those who are affected by natural calamities in the district.
Functions:-
 It looks after the developmental work of the district.
 It has many Standing Committees which execute the policies of the Zilla Parishad.
 It supervises the working of the Panchayats.
 In states such as Assam and Bihar, the Zilla Parishad also scrutinizes the budget estimates of the
Panchayat Samiti.
 It supervises and coordinates the working of the Panchayat Samiti regarding works undertaken by it like
providing irrigation facilities, setting up of schools and village industries, and carrying out works related
to sanitation and public health.
 It acts as a link between the state government and the Panchayat Samiti. It advises the state government
on all matters related to the Gram Panchayats and Panchayat Samitis.
 It approved the budgets of samiti is the district needs to be done.
 it advisors the state government on the working of Panchayat Raj system.
 It built maintain and inspect primary and secondary schools dispensaries health centre and hospitals
 It distribute the funds given by the government to the Panchayat samiti
 It co-ordinate and consolidate the block plans in the districtSupervisors the functioning of development
programmes and his responsible for the implementation of 5 year plans.

NYAYA PANCHAYAT

Nyaya Panchayats, or Gram Nyayalayas, are village-level judicial institutions established to provide
accessible, affordable, and speedy justice to people in rural areas. Rooted in the idea of decentralized justice, they aim
to reduce the burden on traditional courts and ensure that even the poorest individuals can seek redress without fear of
cost, complexity, or delay. The word “Nyaya” means justice, and these bodies embody the principle of justice at the
doorsteps of the common citizen. Historically, village assemblies or councils dispensed justice informally in ancient
and medieval India. These traditional bodies were often respected and accessible but lacked a codified legal
framework. Recognizing the value of local dispute resolution, the Indian Constitution (under Article 40, Directive
Principles of State Policy) encouraged the formation of village panchayats with judicial functions. However, a formal
legal structure only emerged much later with the introduction of the Gram Nyayalayas Act, 2008.
 35

Gram Nyayalayas function as mobile or stationary courts at the intermediate panchayat level and are empowered to
handle civil and criminal cases. Their procedures are simplified, and legal technicalities are reduced to encourage
participation without lawyers. The aim is not only to dispense justice quickly but also to promote conciliation and
compromise wherever possible, reflecting the spirit of restorative justice.

Salient Features of Gram Nyayalayas Act, 2008

1. Introduction and Objective of the Act
The Gram Nyayalayas Act, 2008 was enacted by the Parliament of India to create an accessible judicial system at the
village level. It came into force on 2 October 2009 with the objective of ensuring ”Justice at the grassroots.” The Act
is a response to the growing pendency of cases, inaccessibility of formal courts, and rising costs of litigation,
especially in rural India. The Act aligns with Article 39A (Equal Justice and Free Legal Aid) and Article 40 of the
Constitution, and seeks to democratize the justice delivery mechanism by empowering rural institutions.
2. Establishment of Gram Nyayalayas
Gram Nyayalayas are to be established at the intermediate panchayat level in every state. They are mobile or
stationary courts and are expected to sit within the local area to increase accessibility. States have the discretion to
notify their locations based on administrative convenience and population.
3. Jurisdiction and Powers
Territorial Jurisdiction: Each Gram Nyayalaya will have jurisdiction over one or more Gram Panchayats or villages as
notified by the State Government. Subject-Matter Jurisdiction: They deal with certain civil disputes (like land
boundaries, tenancy, water disputes, property damage) and criminal cases (like theft, assault, public nuisance) as listed
in the First and Second Schedule of the Act. The central and state governments can amend these schedules to add or
remove subjects.
4. Presiding Officer – Nyayadhikari
The Gram Nyayalaya is presided over by a Nyayadhikari (Judicial Magistrate) appointed in consultation with the
High Court. The Nyayadhikari has the same powers as a First-Class Judicial Magistrate in criminal cases and Civil
Judge Junior Division in civil matters. They are judicial officers under the control of the respective High Court to
ensure independence and legality.
5. Simple and Informal Procedure
Gram Nyayalayas do not follow complex procedural codes (CPC and CrPC) rigidly. They can adopt a simplified
procedure, including oral evidence, summary trials, and in-camera proceedings. Lawyers are not mandatory, and
parties can represent themselves or appoint non-lawyer representatives. They promote conciliation and mediation
before resorting to formal adjudication.
6. Mobile Courts for Rural Access
One of the unique features of Gram Nyayalayas is their mobility. They can hold sessions in villages, community
halls, schools, or panchayat buildings. This ensures justice reaches the remotest villages, reducing travel time and cost
for litigants.
7. Appeals and Enforcement
Appeals in civil cases lie to the District Court, while in criminal cases, they go to the Sessions Court. Appeals must
be filed within 30 days of the order. Gram Nyayalayas have powers to execute decrees and orders, including the use
of local administration for implementation.
8. State Government Role and Implementation Challenges
States are responsible for implementing the Act, but many states have shown reluctance due to budgetary constraints,
lack of infrastructure, and bureaucratic resistance. As of now, only a few states have fully operational Gram
Nyayalayas. Awareness, training, and monitoring are also required to make these institutions successful.
 36

Functions of Gram Nyayalayas

The primary function of Gram Nyayalayas is to provide speedy, inexpensive, and accessible justice to people living in
rural areas. Their jurisdiction includes both civil and criminal matters, specifically minor and localized disputes that
can be resolved quickly through simplified procedures.
1. Adjudication of Civil and Criminal Disputes
Gram Nyayalayas hear civil suits and criminal complaints listed under their jurisdiction. Civil matters include land
disputes, tenancy, family conflicts, or property damage. Criminal cases include petty theft, assault, trespassing, and
defamation. This reduces the burden on traditional courts and ensures timely justice.
2. Promotion of Conciliation and Compromise
One of their key roles is to resolve disputes amicably through conciliation. The Nyayadhikari may refer the matter to a
conciliator or personally attempt to mediate between parties. This ensures social harmony and reduces prolonged legal
battles.
3. Accessibility and Outreach through Mobility
Gram Nyayalayas can hold court in villages, making the justice system physically accessible to those who otherwise
might not visit a district court due to distance, expense, or illiteracy. This empowers the rural population and removes
fear or hesitation toward legal procedures.
4. Simplified Legal Process
By allowing oral evidence, flexible procedures, and non-reliance on legal jargon, Gram Nyayalayas make the legal
system user-friendly. Parties can present their own cases without hiring costly lawyers, and minor disputes are often
resolved in one or two hearings.
5. Execution of Judgments
Gram Nyayalayas are authorized to enforce their own orders, including collection of fines, civil decrees, and
restitution. They may seek help from local police or district administration when required.
6. Legal Awareness and Justice Outreach
Beyond adjudication, Gram Nyayalayas also act as agents of legal awareness, educating villagers about their rights,
welfare laws, and alternative dispute resolution methods. This promotes a culture of justice and legal literacy in rural
India.

Significance of Gram Nyayalayas

 Provide justice to the poor and rural population at their doorstep
 Reduce pendency and burden on regular judiciary
 Strengthen grassroots democracy and rule of law
 Encourage conciliation, reducing adversarial litigation
 Empower citizens through affordable and simplified procedures
 Promote gender justice and SC/ST access to legal remedies
 Build legal awareness and trust in judicial institutions
 37

73RD CONSTITUTIONAL AMENDMENT ACT 1992

The 73rd Amendment Act, enacted in 1992 and implemented on April 24, 1993, granted constitutional status
to the Panchayati Raj institutions (PRIs) in India. This landmark legislation marked a significant shift towards
decentralized governance, aiming to strengthen local self-governance and enhance grassroots democracy. The
amendment introduced a uniform structure for the Panchayati Raj system across the country, ensuring regular
elections, financial autonomy, and greater participation of marginalized groups.
The Act mandated the creation of a three-tier Panchayati Raj system consisting of:
1. Gram Panchayat (Village Level): The basic unit of local governance.
2. Panchayat Samiti (Block Level): An intermediary body coordinating the activities of Gram Panchayats.
3. Zila Parishad (District Level): The apex body responsible for district-level planning and administration.
The amendment also established provisions for the reservation of seats for Scheduled Castes (SCs), Scheduled Tribes
(STs), and women, thereby promoting inclusive governance. It required the formation of Gram Sabhas (village
assemblies) to ensure direct participation of people in decision-making processes. By providing a constitutional
framework, the 73rd Amendment aimed to institutionalize Panchayati Raj institutions, ensuring their stability,
continuity, and effective functioning. This move was intended to empower rural communities, improve the delivery of
public services, and promote socio-economic development at the grassroots level.

Why was the 73rd Amendment Made?

Before the 73rd Amendment, the Panchayati Raj system in India was characterized by inconsistency, inefficiency, and
lack of autonomy. Despite the recommendations of the Balwant Rai Mehta Committee in 1957 and the subsequent
implementation of the three-tier Panchayat system in several states, the system faced numerous challenges:
 Irregular Elections: Elections to Panchayati Raj institutions were not held regularly, leading to prolonged
periods of bureaucratic control and undermining the democratic process.
 Political Interference: Frequent dissolution and supersession of elected Panchayats by state governments
hampered their autonomy and effectiveness.
 Financial Dependency: Panchayats lacked financial resources and were heavily dependent on state grants,
which were often delayed or insufficient.
 Administrative Inefficiencies: Inadequate training and infrastructure, coupled with bureaucratic inertia,
hindered the effective functioning of Panchayats.
 Inadequate Representation: Marginalized groups, including women, SCs, and STs, had limited
representation and participation in local governance.
To address these issues, various committees, such as the Ashok Mehta Committee (1977), G.V.K. Rao Committee
(1985), and L.M. Singhvi Committee (1986), recommended comprehensive reforms. They emphasized the need for
constitutional recognition, regular elections, financial autonomy, and increased participation of marginalized groups.
The 73rd Amendment was introduced to provide a uniform framework for the Panchayati Raj system across the
country, ensuring its stability, continuity, and effectiveness. By granting constitutional status to PRIs, the amendment
aimed to institutionalize democratic decentralization, empower local communities, and promote inclusive and
participatory governance. It sought to address the shortcomings of the existing system and create a more robust,
accountable, and transparent framework for local self-governance.

Provisions of 73rd Amendment

The 73rd Amendment Act introduced several key provisions into the Indian Constitution, significantly altering its
framework to accommodate and empower Panchayati Raj institutions. These provisions are mainly encapsulated in
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Part IX of the Constitution, titled “The Panchayats,” and include the addition of Articles 243 to 243O, as well as the
Eleventh Schedule.
Key Provisions:
 Article 243A – Gram Sabha:
o Defines the Gram Sabha as a body consisting of persons registered in the electoral rolls of a village
within the Panchayat area.
o Empowers the Gram Sabha to exercise functions at the village level, ensuring direct participation of
people in decision-making.
 Article 243B – Constitution of Panchayats:
o Mandates the establishment of a three-tier system of Panchayats at the village, intermediate, and
district levels in every state, except those with populations below 20 lakhs, which can opt for a two-
tier system.
 Article 243C – Composition of Panchayats:
o Stipulates that members of Panchayats at all levels shall be elected directly by the people.
o Allows for the inclusion of Chairpersons of Panchayats at the village level and members of the Lok
Sabha and the Legislative Assembly as members at higher levels.
 Article 243D – Reservation of Seats:
o Reserves seats for SCs and STs in every Panchayat proportionate to their population.
o Provides for the reservation of not less than one-third of the total seats for women.
o Extends reservation provisions to the office of Chairpersons at all levels.
 Article 243E – Duration of Panchayats:
o Ensures a five-year term for every Panchayat, beginning from the date of its first meeting.
o Mandates that elections to constitute a Panchayat be completed before the expiry of its term or within
six months of its dissolution.
 Article 243F – Disqualifications for Membership:
o Specifies the criteria for disqualification from membership in a Panchayat, in accordance with state
laws.
o Includes provisions for the adjudication of disputes related to disqualifications.
 Article 243G – Powers, Authority, and Responsibilities of Panchayats:
o Empowers state legislatures to endow Panchayats with necessary powers and authority to function as
self-governing institutions.
o Lists 29 subjects in the Eleventh Schedule that can be devolved to Panchayats, including agriculture,
education, health, and rural development.
 Article 243H – Powers to Impose Taxes by, and Funds of, the Panchayats:
o Authorizes Panchayats to levy, collect, and appropriate taxes, duties, tolls, and fees.
o Provides for grants-in-aid from the state government and the creation of Panchayat funds.
 Article 243I – Constitution of Finance Commission to Review Financial Position:
o Requires the establishment of a State Finance Commission every five years to review the financial
position of Panchayats and recommend measures to improve their financial autonomy.
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 Article 243J – Audit of Accounts of Panchayats:

o Mandates the maintenance and auditing of Panchayat accounts, ensuring financial transparency and
accountability.
 Article 243K – Elections to the Panchayats:
o Provides for the establishment of State Election Commissions to conduct free and fair elections to
Panchayats.
o Grants State Election Commissioners the status, independence, and authority comparable to that of a
High Court judge.
 Article 243L – Application to Union Territories:
o Extends the provisions of Part IX to Union Territories, subject to modifications by the President.
 Article 243M – Part Not to Apply to Certain Areas:
o Excludes certain areas from the application of Part IX, including scheduled areas and tribal areas,
which have distinct governance structures.
 Article 243N – Continuance of Existing Laws and Panchayats:
o Ensures the continuation of existing laws and Panchayats until new laws are made in conformity with
the provisions of Part IX.
 Article 243O – Bar to Interference by Courts in Electoral Matters:
o Prohibits courts from interfering in matters related to the electoral processes of Panchayats.

Impact of the 73rd Amendment

Enhanced Political Participation
The amendment ensured regular elections to Panchayati Raj institutions, leading to increased political participation at
the grassroots level. The direct election of members and reservation of seats for SCs, STs, and women fostered greater
inclusivity and representation in local governance. Women, in particular, benefitted from the one-third reservation,
resulting in substantial participation in political processes and leadership roles.
Empowerment of Marginalized Groups
The reservation provisions empowered marginalized communities by ensuring their representation in decision-making
bodies. This inclusivity promoted social equity and helped address long-standing issues of discrimination and
exclusion. The presence of women, SCs, and STs in Panchayats contributed to more inclusive policy-making and
development planning.
Improved Service Delivery
By devolving powers and responsibilities to Panchayats, the amendment enhanced the delivery of public services and
the implementation of development programs. Panchayats became responsible for various functions related to
agriculture, health, education, and rural development, leading to more efficient and localized service delivery. This
shift brought governance closer to the people, allowing for better identification of local needs and priorities.
Strengthened Accountability and Transparency
The establishment of Gram Sabhas and the requirement for regular audits of Panchayat accounts promoted greater
transparency and accountability in local governance. Gram Sabhas provided a platform for villagers to participate
directly in decision-making, review development plans, and monitor the implementation of schemes. This increased
community involvement helped ensure that resources were utilized effectively and corruption was minimized.
 40

UNIT – 4 : URBAN LOCAL GOVERNMENT

URBAN LOCAL GOVERNMENT

Urban Local Government refers to the system of governance responsible for administering towns, cities, and
urban regions. It is designed to manage urban infrastructure, public services, and development needs such as housing,
sanitation, transportation, and environmental protection. In India, urban local government functions through various
institutions like Municipal Corporations, Municipal Councils, and Nagar Panchayats, depending on the size and
population of the urban area. These bodies are formed under the 74th Constitutional Amendment Act, 1992, which
provides them constitutional status and specific powers, functions, and responsibilities. Urban local governments are
elected by urban residents and play a critical role in shaping city development plans, maintaining civic amenities,
regulating construction, and implementing welfare programs. Their presence ensures democratic decentralization and
enables cities to grow sustainably while addressing the needs of diverse urban populations.

Characteristics of Urban Local Government:-

1. Constitutional Backing through the 74th Amendment:
The 74th Constitutional Amendment Act, 1992 gave urban local bodies a constitutional status and clearly defined their
structure, powers, and functions. This marked a shift from ad-hoc arrangements to a legally recognized system of
urban self-governance in India.
2. Three Types of Urban Local Bodies:
Urban governance operates through three major types of local bodies based on city size:
 Municipal Corporations for large cities (e.g., Mumbai, Delhi)
 Municipal Councils for medium-sized towns
 Nagar Panchayats for transitional areas between rural and urban
Each has distinct responsibilities tailored to the needs of the population it serves.
3. Democratic Representation:
Urban local government members are elected directly by the residents of wards. Mayors, councillors, and standing
committees form the political arm, while commissioners and engineers make up the executive wing. This structure
ensures public participation and representative democracy in urban areas.
4. Urban Planning and Civic Management:
One of the main responsibilities of urban local bodies is urban planning—designing roads, land use, housing,
sanitation systems, and public transport. They are also responsible for issuing construction permits, maintaining public
parks, and managing garbage disposal.
5. Financial Authority and Resource Mobilization:
Urban local bodies generate revenue through property tax, user charges, license fees, grants from state and central
governments, and funds from schemes like AMRUT, Smart Cities Mission, and 14th/15th Finance Commission.
However, many struggle with inadequate funds and reliance on grants.
6. Service Delivery and Infrastructure Maintenance:
They manage essential services like drinking water supply, sewage systems, drainage, waste management, street
lighting, and urban health services. Their ability to maintain such infrastructure directly impacts the quality of urban
life.
 41

7. Role in Welfare and Development Schemes:

Urban local bodies implement national and state welfare programs, such as the PMAY (housing), DAY-NULM
(livelihood mission), and Swachh Bharat Abhiyan. Their grassroots reach ensures better targeting and community
engagement in these schemes.
8. Challenges and Accountability Mechanisms:
Despite their importance, many urban local governments face challenges like financial instability, bureaucratic
inefficiency, and political interference. Mechanisms like ward committees, citizen charters, social audits, and RTI aim
to improve transparency and accountability.

Significance of Urban Local Government in Modern Times

 Ensures democratic participation in city governance through elections
 Manages critical services like water supply, sanitation, and roads
 Drives infrastructure development and urban planning
 Implements welfare schemes and social safety nets in slums and low-income areas
 Acts as a bridge between citizens and higher government levels
 Encourages local-level innovation and city-specific solutions
 Boosts local economic growth through planning, licensing, and regulation
 Promotes sustainability and resilience in fast-growing urban centers

MUNICIPAL CORPORATIONS

A Municipal Corporation is the highest form of urban local government in India, responsible for governing
and managing the administration of large cities with populations typically exceeding 1 million. It is established under
state municipal laws and derives its authority from the 74th Constitutional Amendment Act, 1992, which conferred
constitutional status to urban local bodies. Municipal Corporations are autonomous bodies with powers to levy taxes,
plan infrastructure, manage urban services, and implement welfare programs. Their main aim is to provide efficient
civic services, ensure sustainable urban development, and maintain public infrastructure like roads, waste
management, sanitation, water supply, and street lighting.
They are composed of elected representatives (Councillors), standing committees, and a Municipal Commissioner
(executive head appointed by the state government). This combination of elected and executive leadership ensures
both public accountability and professional governance. Today, Municipal Corporations play a pivotal role in shaping
the quality of urban life and are central to India’s Smart Cities and urban reforms agenda.

Background and Evolution

 The concept of municipal governance in India has deep colonial roots. The first municipal corporation was
established in Madras (now Chennai) in 1688, followed by Bombay (Mumbai) and Calcutta (Kolkata) by
1762, under the British East India Company. These early corporations were primarily revenue-collecting and
sanitation bodies serving colonial needs.
 Post-independence, urban governance remained state-driven, but the need for democratic decentralisation
became evident with growing urbanization. The 74th Constitutional Amendment Act, 1992 was a landmark
development that gave constitutional status to urban local bodies, including Municipal Corporations, ensuring
regular elections, fixed tenure, financial devolution, and functional autonomy.
 Municipal Corporations are now regulated by state-specific municipal laws (e.g., the Mumbai Municipal
Corporation Act, 1888 or the Delhi Municipal Corporation Act, 1957). These laws specify their structure,
powers, duties, and financial mechanisms.
 42

 In the present day, Municipal Corporations face the dual challenge of rapid urban growth and limited
resources. To address this, the Government of India has launched various initiatives such as the Smart Cities
Mission, AMRUT (Atal Mission for Rejuvenation and Urban Transformation), and Swachh Bharat Abhiyan,
in which Municipal Corporations are the key implementing agencies.

Structure of Municipal Corporatio

1. The Municipal Council
The Municipal Council is the legislative and representative wing of the Municipal Corporation. It is composed of
elected members called Councillors, who are elected from different wards (geographic divisions within the city) by
local residents. The number of Councillors depends on the population of the city. At the head of the council is the
Mayor, who is either directly elected or chosen by the Councillors from among themselves. The Mayor is the
ceremonial head, presides over meetings, and represents the corporation in public functions but has limited executive
powers.
The Council is responsible for:
 Debating and passing the municipal budget
 Approving development plans, policies, and proposals
 Raising civic issues like roads, water, sanitation, and public health
 Reviewing the work of the administration and holding it accountable
The Council functions as a mini-parliament of the city, ensuring that people’s voices are represented in the governance
process. Regular meetings are held where members raise questions, approve projects, and discuss matters affecting
city life. In large cities, councils are often subdivided into zone-level bodies to manage localized issues more
efficiently.

2. Standing Committees
Standing Committees are the policy-making and supervisory bodies within the Municipal Corporation. Since the entire
council cannot manage day-to-day governance in detail, the Standing Committees handle specific domains such as
finance, public health, education, engineering, and works. Each Standing Committee is composed of selected
Councillors and is headed by a Chairperson. The most important is the Finance Committee, which prepares the annual
budget and monitors revenues and expenditures.
Functions of Standing Committees include:
 Examining proposals and estimates prepared by departments
 Scrutinizing budget allocations and utilization
 Supervising execution of projects and contracts
 Ensuring compliance with laws and policies
These committees act like mini-cabinets and ensure specialized focus on different areas of governance. Their work is
later reviewed and approved by the full Council. Standing Committees play a crucial role in improving efficiency and
decentralizing workload among elected members.

3. The Municipal Commissioner

The Municipal Commissioner is the executive head of the Municipal Corporation and is usually an Indian
Administrative Service (IAS) officer or senior state civil servant appointed by the state government. Unlike the
Mayor, who is elected, the Commissioner is a professional bureaucrat responsible for implementing policies and
managing day-to-day affairs.
 43

The Commissioner’s key functions include:

 Executing the resolutions passed by the Council and Committees
 Preparing and presenting the annual budget and plans
 Supervising all departments like sanitation, water supply, public works, etc.
 Managing personnel, contracts, tenders, and urban development projects
 Coordinating with state and central governments
The Commissioner holds real administrative powers and is accountable for service delivery, law enforcement, and
financial management. In many cities, the power dynamic favors the Commissioner over the elected representatives,
leading to debates over accountability and democracy. The Commissioner-council model blends bureaucratic
professionalism with democratic oversight, though its success depends on cooperation and clarity in roles.

Major Functions of Municipal Corporations

1. Urban Planning and Land Use Regulation
 Prepare and implement master plans and zonal development plans
 Issue building permits and control construction
 Maintain public spaces, roads, and land records
 Prevent unauthorized development and encroachment
2. Water Supply and Sanitation
 Supply drinking water to residential and commercial areas
 Maintain pipelines, pumps, and reservoirs
 Ensure proper sewage disposal and drainage
 Prevent water pollution and manage stormwater
3. Public Health and Solid Waste Management
 Run municipal hospitals, dispensaries, and maternity homes
 Control spread of diseases and ensure sanitation
 Collect, transport, and process garbage and waste
 Promote hygiene through awareness and monitoring
4. Education and Public Welfare
 Run municipal schools, libraries, and adult education centers
 Provide mid-day meals and girl child incentives
 Implement welfare programs for SC/ST, disabled, elderly, and urban poor
 Support skill development and self-employment schemes
5. Urban Transport and Street Lighting
 Maintain roads, footpaths, flyovers, and underpasses
 Provide bus terminals, traffic signals, and parking lots
 Ensure well-lit streets and repair damaged poles and wires
 Coordinate with traffic police and metro authorities
6. Revenue Collection and Administration
 Levy and collect taxes like property tax, professional tax, and advertisement tax
 Issue licenses for businesses, shops, and hoardings
 Monitor civic records such as birth, death, and marriage certificates
 Prepare annual budgets and manage staff, audits, and procurement
 44

MUNICIPALITY / MUNICIPAL COUNCIL

A Municipality is a form of urban local government constituted to administer smaller cities and towns with a
population typically between 20,000 to 1 million. It operates under the 74th Constitutional Amendment Act, 1992,
which granted constitutional status to urban local bodies and aims to ensure grassroots democracy and efficient civic
management. Municipalities are created under respective State Municipal Acts and are entrusted with responsibilities
such as urban planning, sanitation, water supply, waste management, education, and welfare programs. They function
as self-governing institutions, allowing citizens to elect their representatives who oversee local governance and
development. The structure of a Municipality typically includes a Municipal Council (elected body), Standing
Committees (specialized bodies for policy matters), and a Chief Executive Officer (CEO) (appointed administrator).
Together, they ensure both democratic accountability and administrative efficiency in managing urban affairs.

Structure of Municipality
1. Municipal Council
The Municipal Council is the legislative arm of a Municipality and is composed of elected representatives
(Councillors) from different wards in the municipal area. Each ward elects one Councillor for a fixed term (usually
five years). The number of wards depends on the population of the area. The Council is headed by a Chairperson or
President, who may be directly elected by citizens or chosen by Councillors. This head presides over council
meetings, represents the municipality in official functions, and provides leadership in policy decisions.
The Council is responsible for:
 Approving the annual municipal budget
 Discussing and deciding local issues and development plans
 Supervising municipal departments and their functioning
 Passing resolutions and municipal by-laws
 Representing the concerns of citizens
The Council acts as a forum where citizens’ voices are reflected in urban policies. It ensures transparency, debate, and
deliberation on urban governance matters. The Council also acts as a check on the executive administration, ensuring
that projects and programs are implemented effectively.
2. Standing Committees
Standing Committees are smaller, focused bodies within the Municipality that deal with specific subjects or
departments. Since the full Council cannot manage every detail of administration, these committees take on
specialized responsibilities like finance, health, education, public works, and taxation. Each committee is composed of
selected Councillors, usually chosen by the Council itself. One Councillor acts as the Chairperson of the committee.
The most important of these is the Finance Committee, which prepares and monitors the municipal budget.
Functions of Standing Committees include:
 Reviewing departmental proposals and estimates
 Supervising and evaluating project implementation
 Advising the Council on policy formulation
 Monitoring service delivery and financial performance
 Facilitating inter-departmental coordination
Standing Committees act as miniature executive cabinets. They enhance efficiency, speed of decision-making, and
decentralized workload sharing within the municipality. Their decisions are placed before the full Council for final
approval.
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3. Chief Executive Officer

The Chief Executive Officer (CEO) or Municipal Commissioner is the executive head of the Municipality, usually a
civil servant appointed by the State Government. Unlike the elected representatives who make policies, the CEO is
responsible for implementing them on the ground. The CEO oversees the day-to-day functioning of the municipal
departments such as sanitation, water supply, building control, and public health. The CEO is also the custodian of
municipal records, finances, and contracts.
Key responsibilities include:
 Executing Council and Committee decisions
 Supervising departments and employees
 Preparing budgets and reports
 Ensuring compliance with state and central laws
 Coordinating with district and state officials
The CEO serves as the link between political and administrative arms of the Municipality. While accountable to the
Council, the CEO also ensures that policies are implemented efficiently and services delivered properly.In smaller
municipalities, the CEO plays a crucial role due to limited technical staff and resources. Their administrative skills and
ability to manage public projects often determine the success of municipal functioning. A cooperative relationship
between the CEO and the elected Council is essential for smooth governance.

Major Functions of a Municipality

1. Urban Planning and Regulation
Municipalities are responsible for preparing and enforcing zonal development plans, master plans, and land-use
regulations. They grant building permissions, regulate unauthorized constructions, and ensure proper urban growth.
Urban planning ensures that infrastructure development like roads, drainage, parks, and housing are well-coordinated
and sustainable, preventing slum expansion and environmental damage. Municipalities also oversee traffic
management, heritage preservation, and land demarcation in growing towns.
2. Water Supply and Sanitation
Ensuring clean and adequate drinking water supply is one of the core functions of municipalities. They lay pipelines,
manage water tanks and treatment plants, and ensure equitable water distribution. Alongside, they maintain public
toilets, drainage systems, and sewage treatment plants to ensure sanitation. This is crucial for public health and urban
hygiene, especially in high-density areas. In smaller towns, municipalities may coordinate with state agencies for
water sources and treatment.
3. Waste Management and Public Health
Municipalities handle solid waste collection, segregation, transportation, and disposal. They maintain cleanliness in
public spaces, organize cleaning drives, and run awareness campaigns. Public health responsibilities include running
municipal clinics, managing vaccinations, mosquito control, and preventing disease outbreaks. The health department
also monitors food safety in local markets and licenses eateries. Cleanliness and sanitation are directly linked to
preventing epidemics and ensuring citizen well-being.
4. Street Lighting and Urban Infrastructure
Maintaining street lights, public pathways, parks, and local markets are important functions of municipalities. They
install, repair, and upgrade lighting in residential and commercial zones. Municipalities also build and maintain
footpaths, overbridges, bus stands, and parking lots, promoting safe and inclusive urban mobility. These infrastructure
services ensure safety, reduce accidents, and contribute to economic vibrancy by improving accessibility and
functionality of the city.
 46

5. Education and Welfare

Municipalities manage primary and secondary schools, provide mid-day meals, and offer free textbooks and uniforms.
They also implement welfare programs for women, children, senior citizens, and urban poor, including health camps,
vocational training, and subsidized housing. Welfare initiatives are essential for inclusive development and address
issues like poverty, illiteracy, and inequality. Municipalities partner with NGOs and community groups to reach
marginalized populations effectively.

NAGAR PANCHAYAT

A Nagar Panchayat is a type of urban local government that administers transitional areas, i.e., settlements in
the process of transformation from rural to urban. It serves as a bridge between a village and a full-fledged town,
ensuring planned development and delivery of civic services in emerging urban areas. Nagar Panchayats were
constitutionally recognized through the 74th Constitutional Amendment Act, 1992, which provided a three-tier
structure of urban local bodies:
1. Municipal Corporations (for large cities),
2. Municipalities (for medium towns), and
3. Nagar Panchayats (for transitional or semi-urban areas).
States determine the criteria (usually population between 12,000 and 25,000) for declaring an area as a Nagar
Panchayat. These bodies help manage unregulated urban growth, prevent slum development, and introduce basic
urban services in areas that were previously governed as villages.

Composition of Nagar Panchayat

A Nagar Panchayat typically consists of:
 Chairperson: The head of the body, elected either directly by the people or by the elected members of
the council.
 Ward Councillors: Members elected from wards (geographic divisions within the town). Each ward
elects one Councillor for a five-year term.
 Executive Officer: Appointed by the state government to carry out day-to-day administration,
implementation of policies, and coordination of departments.
In addition, Standing Committees may be formed to focus on specific areas like health, education, and finance.
Representation for Scheduled Castes (SCs), Scheduled Tribes (STs), and women is ensured through reservation of
seats.

Functions of Nagar Panchayat

Unlike Municipal Corporations or Municipalities that cater to fully urbanized areas, Nagar Panchayats focus on
regulating growth and basic infrastructure in emerging towns. Here are five key functions specific to Nagar
Panchayats:
1. Regulation of Land Use and Rural-to-Urban Transition
Nagar Panchayats manage zoning, land use changes, and urban planning in areas witnessing rapid transformation.
They prevent haphazard construction, illegal colonies, and unregulated commercialization by implementing basic
town planning rules and land allocation norms.
 47

2. Provision of Basic Urban Services in Rural Setups

Since many Nagar Panchayat areas lack full urban infrastructure, these bodies work to introduce services like
drainage, piped water supply, and road connectivity gradually. They often start with small-scale public amenities,
laying the foundation for full urban infrastructure in the future.
3. Support for Informal Economy and Small Traders
Nagar Panchayats often serve areas dominated by street vendors, small shops, and unregistered businesses. They
regulate markets, issue trade licenses, and manage local bazaars, supporting informal employment while ensuring
order and hygiene in public trading spaces.
4. Waste Management with Limited Infrastructure
In semi-urban areas, there are often no formal garbage systems. Nagar Panchayats initiate door-to-door garbage
collection, waste segregation, and setup of small compost units, creating decentralized models of solid waste
management suitable for small towns.
5. Community Development and Urban Awareness
Nagar Panchayats conduct awareness campaigns on sanitation, health, and education, often in partnership with local
NGOs. They organize community events, run informal training for urban livelihoods, and support women’s self-help
groups to build civic consciousness in the transitioning population.

TOWNSHIP

A Township refers to an area established mainly to support industrial, commercial, or mining operations,
usually outside the control of a regular municipal body. These are privately or semi-government managed settlements
developed by public sector enterprises, corporations, or industries for their employees and operations. Townships are
not constitutionally recognized as independent urban local bodies but function as self-contained administrative units.
Composition
Townships are typically governed by:
 An Administrative Officer or Township Manager, appointed by the company or authority
 Engineers, planners, and department heads for services like water, electricity, and housing
 Residents may have advisory roles, but no elected council exists
Purpose
Their primary aim is to provide residential, welfare, and civic amenities to employees of the parent industrial
organization, such as steel plants, railways, coal mines, or large public sector units.
Functions
 Housing and quarters for employees
 Water supply, sanitation, and waste disposal
 Electricity distribution and street lighting
 Healthcare services through hospitals or clinics
 Educational institutions like schools and training centers
 Transport and internal roads maintenance
 Recreational and welfare services such as clubs, parks, gyms
 Security and law enforcement in collaboration with local police
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CANTONMENT BOARD

A Cantonment Board is an urban local body that administers a cantonment area, which is a military area
where both civilian and defense personnel reside. It is governed under the Cantonments Act, 2006 and functions under
the administrative control of the Ministry of Defence, Government of India. Cantonment Boards ensure civic services
in areas where regular municipal bodies do not operate due to the presence of defense establishments.
Composition
Cantonment Boards have both elected and nominated members:
 The Station Commander (senior-most military officer) acts as the President of the Board.
 Elected members represent the civilian population (elections every 5 years).
 Nominated military members include defense estate officers and other officials.
 A Chief Executive Officer (CEO) is appointed by the Ministry of Defence for administration.
Purpose
The main aim is to provide municipal services to civilian and military residents in a disciplined, clean, and planned
manner while ensuring national security concerns are upheld.
Functions
 Maintenance of sanitation and public health
 Regulation of building activity and land use
 Provision of water supply and street lighting
 Running schools, dispensaries, and welfare programs
 Maintenance of roads, parks, and crematoriums
 Collection of taxes and licensing
 Implementation of development schemes for civilians
 Coordinating civilian-military relations in urban services

NOTIFIED AREA COMMITTEE

A Notified Area Committee (NAC) is an urban local body established in areas that are rapidly developing or
urbanizing, but are not yet classified as municipalities. These are declared under state government notification and are
governed by the concerned municipal act. NACs are often found in industrial zones, pilgrimage towns, or border
areas, where immediate administrative setup is needed for civic management.
Composition
 NACs are entirely appointed bodies with no elected members.
 The District Collector or a senior officer usually serves as the Chairperson.
 Officers from departments like public works, sanitation, and health are deputed to manage services.
 The committee functions under the control of the state government.
Purpose
The purpose of an NAC is to provide basic urban infrastructure and regulate development in areas that are not fully
urban but require governance due to increasing population or industrial activity
Functions
 Land use regulation and building control
 Provision of drinking water and sanitation
 Garbage collection and disposal
 49

 Road construction and street lighting

 Licensing of shops and small businesses
 Maintenance of public health and prevention of diseases
 Collection of certain taxes and user fees
 Temporary civic arrangements during religious or tourist events

74TH CONSTITUTIONAL AMENDMENT ACT 1992

The 74th Amendment Act, enacted in 1992, granted constitutional status to urban local bodies (ULBs) in India, akin to
the recognition given to rural local bodies through the 73rd Amendment. This amendment aimed to strengthen and
institutionalize urban local governance, ensuring democratic decentralization in urban areas. It introduced Part IX-A to
the Indian Constitution, which laid down the structure, composition, powers, and functions of municipalities,
including Nagar Panchayats, Municipal Councils, and Municipal Corporations. The act mandated regular elections,
reservation of seats for disadvantaged sections, and provisions for the devolution of powers and responsibilities to
these urban bodies.

Purpose of enacting 74th Amendment Act

Growing Urbanization
By the early 1990s, India was witnessing rapid urbanization, leading to significant growth in the urban population.
This demographic shift created an urgent need for effective urban governance to manage the complexities of urban
areas, including infrastructure, housing, sanitation, and basic services.
Ineffective Urban Governance
Before the amendment, urban governance was largely managed by state governments, with municipal bodies often
being weak, underfunded, and lacking in autonomy. This led to inefficient service delivery, inadequate infrastructure
development, and poor urban planning.
Democratic Decentralization
There was a recognized need to extend the principles of democratic decentralization to urban areas, ensuring that local
residents had a voice in governance and decision-making processes. Empowering urban local bodies was seen as
crucial for promoting accountability, transparency, and community participation.
Constitutional Safeguards
The 74th Amendment was introduced to provide a uniform and robust constitutional framework for urban governance
across India. By incorporating urban local bodies into the Constitution, the amendment aimed to protect these
institutions from arbitrary dissolution and ensure their stability and continuity.

Provisions of 74th Amendment Act

Part IX-A: The Municipalities
 Article 243P – Definitions: Provides definitions for terms such as Municipality, Municipal area, Nagar
Panchayat, Municipal Council, and Municipal Corporation.
 Article 243Q – Constitution of Municipalities: Mandates the constitution of three types of municipalities:
Nagar Panchayats for areas in transition from rural to urban, Municipal Councils for smaller urban areas, and
Municipal Corporations for larger urban areas.
 Article 243R – Composition of Municipalities: Specifies the composition of municipalities, with direct
elections for seats and provisions for representation of SCs, STs, and women.
 50

 Article 243S – Constitution and Composition of Wards Committees: Mandates the establishment of Wards
Committees in municipalities with a population of three lakh or more.
 Article 243T – Reservation of Seats: Provides for the reservation of seats for SCs, STs, and women in
municipalities.
 Article 243U – Duration of Municipalities: Sets the term of municipalities at five years and mandates regular
elections.
 Article 243V – Disqualification for Membership: Lists the grounds for disqualification of members of
municipalities.
 Article 243W – Powers, Authority, and Responsibilities of Municipalities: Empowers state legislatures to
devolve powers and responsibilities to municipalities, including those listed in the Twelfth Schedule.
 Article 243X – Power to Impose Taxes by, and Funds of, the Municipalities: Authorizes municipalities to
levy, collect, and appropriate taxes, duties, tolls, and fees.
 Article 243Y – Finance Commission: Mandates the constitution of State Finance Commissions to review the
financial position of municipalities and recommend measures to improve their fiscal health.
 Article 243Z – Audit of Accounts of Municipalities: Requires the auditing of municipal accounts.
 Article 243ZA – Elections to Municipalities: Entrusts the State Election Commissions with the responsibility
of conducting municipal elections.
 Article 243ZB – Application to Union Territories: Extends the provisions of Part IX-A to Union Territories.
 Article 243ZC – Part Not to Apply to Certain Areas: Exempts certain scheduled and tribal areas from the
provisions of Part IX-A.
 Article 243ZD – Committee for District Planning: Mandates the formation of District Planning Committees to
consolidate plans prepared by Panchayats and municipalities.
 Article 243ZE – Committee for Metropolitan Planning: Mandates the formation of Metropolitan Planning
Committees for metropolitan areas.

Impact of the 74th Amendment Act

Empowerment of Urban Local Bodies
The 74th Amendment significantly empowered urban local bodies by granting them constitutional status and ensuring
regular elections. This has led to greater accountability and responsiveness in urban governance, with elected
representatives being directly accountable to the urban populace.
Improved Urban Governance
The amendment facilitated better urban governance by mandating the devolution of powers and responsibilities to
municipalities. This has enabled municipalities to play a more active role in urban planning, infrastructure
development, and service delivery, leading to improved urban management and development outcomes.
Enhanced Community Participation
The establishment of Wards Committees and the provision for Gram Sabhas in urban areas have enhanced community
participation in local governance. This has ensured that urban residents have a say in decision-making processes,
promoting transparency and accountability.
Focus on Inclusive Development
The reservation of seats for SCs, STs, and women has ensured the representation of marginalized and disadvantaged
sections in urban governance. This has promoted social equity and inclusiveness in decision-making processes,
leading to more inclusive urban development.
 51

Financial Empowerment
The amendment empowered municipalities to levy, collect, and appropriate taxes, duties, tolls, and fees, enhancing
their financial autonomy. The establishment of State Finance Commissions has further strengthened the fiscal capacity
of municipalities by recommending measures to improve their financial health.

FINANCES OF LOCAL GOVERNMENT

Local governments play a crucial role in delivering essential public services such as sanitation, water supply,
health, education, and infrastructure at the grassroots level. To perform these functions effectively, they require
adequate and reliable financial resources. The sources of finance for local governments include both internal (like
taxes and fees) and external (like grants and loans) avenues. Ensuring proper funding is essential for achieving goals
of decentralised governance and local development. Over time, efforts have been made through constitutional
provisions, finance commissions, and state policies to strengthen the financial autonomy and capacity of local bodies
in India.
Finances of local government are as follows:

 Taxes
 Non tax revenue
 Grant in aid
 Other sources
I. TAXES
1. Property Tax - It is the primary source of revenue for local governments, levied on real estate such as land
and buildings. Based on property size, usage, and location, this tax funds essential services like road repair, garbage
collection, and street lighting.
2. Professional Tax - Levied on individuals engaged in professions, trades, and employment (like doctors,
lawyers, and salaried employees), professional tax is collected by local bodies but capped under state laws. It provides
regular, though limited, revenue to municipalities and panchayats.
3. Entertainment Tax - Imposed on movie tickets, exhibitions, and other public entertainment activities, this
tax was earlier a local revenue source. After the introduction of GST, this revenue has reduced but in some states, a
part is still assigned to local bodies.
4. Advertisement Tax - Local governments charge this tax on outdoor advertising such as billboards, posters,
and hoardings placed in public areas. It regulates visual clutter and contributes modestly to municipal revenues,
especially in commercial zones.
II. NON-TAX REVENUE

 Non-tax revenue refers to income earned by local governments from fees, fines, service charges, and rents,
apart from taxation. It plays a crucial role in supplementing municipal and panchayat finances, especially in
urban areas with high service demands.
 Municipalities and Panchayats collect user charges for services such as water supply, garbage collection,
parking, and public toilets. These fees reflect the ”pay-as-you-use” principle and promote responsible
consumption of public services.
 License and permit fees are charged for running shops, markets, trade, and food businesses. Birth and death
registration, marriage certificates, and building approvals also involve small administrative charges.
 Fines are imposed for violations of municipal rules, such as littering, illegal construction, encroachments, and
improper waste disposal. While not a major source of income, they serve as a deterrent and ensure compliance
with civic norms.
 In addition, local bodies earn income from renting out community halls, markets, shops, and municipal
properties. These recurring sources create financial autonomy, especially when efficiently managed.
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III. GRANT-IN-AID
 Grants-in-aid are financial transfers from higher levels of government—usually the state or central
government—to local bodies, either as general purpose or specific-purpose grants. These grants aim to fill the
fiscal gap between local needs and actual income.
 General grants are given without conditions and can be used for any local development work or
administration. Specific grants (also called tied grants) are meant for particular projects like drainage systems,
rural roads, drinking water schemes, or smart city components.
Grants can be classified as:
 Statutory Grants: Recommended by Finance Commissions (Central and State). The 15th Finance
Commission recommended substantial transfers to panchayats and municipalities.
 Discretionary Grants: Released by state governments depending on political or administrative
priorities.

 Grants-in-aid promote equity among local bodies, especially when wealthier urban areas can raise more taxes
while poorer rural areas cannot. They also help local governments implement centrally sponsored schemes
like MGNREGA, PMAY, SBM, etc.
IV. OTHER SOURCES
1. Assigned Revenues - State governments assign a share of certain taxes like stamp duty, motor vehicle tax,
and electricity duty to local bodies. Though collected by the state, a portion is transferred to municipalities or
panchayats as per legislation or executive order.
2. Municipal Bonds - Urban local bodies raise funds through municipal bonds issued in capital markets for
infrastructure projects. While still new in India, cities like Pune and Ahmedabad have used this route to finance smart
urban infrastructure like roads and water systems.
3. Loans from Financial Institutions - Local bodies may borrow from institutions like HUDCO, NABARD,
or commercial banks for development projects. These loans are usually long-term and need approval from state
governments, often tied to specific infrastructure or housing schemes.
4. CSR Funds and Donations - Corporate Social Responsibility (CSR) contributions from private
companies, NGOs, or citizens can fund local sanitation drives, public health programs, or beautification efforts. These
are voluntary but increasingly tapped for community-oriented projects.
5. Public-Private Partnerships (PPP) - Local bodies collaborate with private firms in PPP models to fund and
manage services like parking, bus terminals, water treatment plants, etc. It combines private investment and efficiency
with public accountability.

Problems in Local Government Finance

Despite having multiple sources of revenue, local governments in India face chronic financial distress. Most
urban and rural bodies are heavily dependent on grants from state and central governments, as their own revenue
collection is limited and inefficient. The power to levy taxes exists, but collection remains poor due to lack of
infrastructure, outdated systems, and political reluctance to revise rates.
In addition, non-tax revenue remains underutilized. User charges are either too low or not collected at all.
Local bodies rarely update property records or digitize assessments, leading to massive tax evasion. Many services
like water supply or waste collection are heavily subsidized without adequate cost recovery. Municipal bonds and
PPPs, though promising, are limited to a few cities with strong financial management.
Further, delayed and discretionary fund transfers from state governments affect local planning and
implementation. Local governments lack predictable, untied funding. They are often forced to adjust their
development priorities to suit the objectives of centrally sponsored schemes, weakening grassroots autonomy. Weak
 53

accounting systems, lack of transparency, and limited technical capacity to prepare project reports or investment plans
make local bodies financially inefficient.
To strengthen grassroots democracy and ensure inclusive development, there is an urgent need to empower
local bodies with fiscal autonomy, accountability, and modern tools. Capacity-building, performance-based incentives,
and devolution of financial powers must become central to urban and rural governance reform.

CONTROL OVER LOCAL GOVERNMENT

Local governments, both rural and urban, are vital institutions that bring governance closer to the people. The
73 and 74th Constitutional Amendments provided constitutional status to Panchayati Raj Institutions (PRIs) and
rd

Urban Local Bodies (ULBs), aiming to ensure democratic decentralisation. However, for accountability, efficiency,
and coordination with higher authorities, a system of control over local government is essential. This control is
exercised by State Governments, Union Government, Finance Commissions, and judiciary, across constitutional,
administrative, financial, and legal domains.
1. Constitutional and Legislative Control
The Constitution of India entrusts State Governments with the power to create, regulate, and control local bodies:

 Under Articles 243 and 243W, the powers, authority, and responsibilities of local governments are
determined by State Legislatures.
 The structure, composition, and jurisdiction of Panchayats and Municipalities are defined in State
Panchayat/Municipal Acts, and hence they can be altered, dissolved, or merged by state laws.
 States can decide the subjects devolved to local bodies from the 11th and 12th Schedules, leading to
variability and uneven empowerment across India.
This legislative control ensures local governments operate within a legal framework but also limits their autonomy, as
states can dilute or delay devolution.
2. Administrative Control
State governments exercise direct administrative control over local bodies through various departments, agencies, and
officers:

 District Collectors supervise and guide the functioning of Panchayats. Block Development Officers
(BDOs) and Chief Municipal Officers act as a bridge between the state and local institutions.
 Approval of development plans, recruitment of staff, and appointments often require state clearance.
 State departments can issue circulars, instructions, and rules to be followed by local bodies.
 The state has powers to inspect and inquire into the functioning of local bodies and even dissolve or
supersede them in cases of misgovernance.
Though necessary for coordination and monitoring, excessive administrative control often leads to bureaucratic
dominance over elected representatives, undermining local democracy.
3. Financial Control
One of the most significant constraints on local governments is financial dependence on state and central
governments. Key forms of financial control include:

 Budget approval: Local bodies must prepare annual budgets, which are often subject to scrutiny and
approval by state authorities.
 Audit: State government auditors or the Comptroller and Auditor General (CAG) inspect the accounts of
local bodies to ensure compliance with rules.
 Grants and funds: Local governments depend heavily on grants-in-aid from the state and central
governments. These often come with conditions and earmarked purposes, limiting flexibility.
 54

 Taxation power: While local governments have the power to levy certain taxes (like property tax or
professional tax), their rate, base, and collection mechanisms are regulated by state laws.
Without real financial autonomy, local governments struggle to plan and implement programs independently, leading
to project delays and weak accountability.
4. Judicial Control
Local governments are subject to the control of the judiciary, ensuring legality, constitutional compliance, and
protection of citizens’ rights:

 High Courts and the Supreme Court can review laws, decisions, and actions of local bodies under writ
jurisdiction (Article 226 and 32).
 Courts can strike down ultra vires (beyond power) bylaws or actions taken in violation of principles of
natural justice.
 Citizens can challenge elections, tax assessments, encroachments, and misuse of power by local
governments in courts.
 The judiciary has, in various judgments, upheld the autonomy of local governments (e.g., K.
Krishnamurthy v. Union of India on reservation in local elections).
While judicial oversight ensures accountability, prolonged litigation and delayed justice can hamper the timely
execution of local works.
5. Political and Electoral Control

 Regular elections to local bodies serve as a democratic check. Every five years, citizens assess the
performance of their local representatives.
 State Election Commissions supervise and control the conduct of local body elections, ensuring
transparency.
 Political parties also influence local government functioning, often leading to politicisation of local
governance but also acting as a check through opposition presence.
Challenges and Way Forward
Despite being constitutionally mandated, local governments often function with limited autonomy due to excessive
external control. This leads to:

 Delay in decision-making
 Poor fund utilisation
 Reduced accountability of officials to the local community
 Erosion of people’s trust in decentralisation
To strengthen local self-governance:

 Greater functional and financial devolution is needed

 Capacity-building of local officials and elected members should be prioritised
 Clear role demarcation between elected and administrative wings is essential
 Monitoring should focus on outcomes, not micromanagement
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UNIT – 5 : ISSUES IN LOCAL GOVERNMENT

CORRRUPTION

Local government is the closest level of administration to the people. It is expected to be transparent,
responsive, and accountable, serving as the backbone of grassroots democracy. However, the growing incidence of
corruption in Panchayati Raj Institutions (PRIs) and Urban Local Bodies (ULBs) has emerged as a major obstacle to
effective decentralised governance. Corruption in local bodies distorts service delivery, erodes public trust, and
disproportionately affects the poor. Addressing it requires not only enforcement but a deep structural transformation.

Nature and Forms of Corruption in Local Government

Corruption in local governance takes many forms, often petty but highly pervasive:

 Bribery for issuance of licenses, building permits, and certificates (like birth, caste, and land records)
 Misappropriation of funds in development schemes like MGNREGA, housing, water supply, and road
projects
 Ghost beneficiaries in welfare programs
 Favouritism and nepotism in contract allocation and recruitment
 Delays and rent-seeking in file movement
 Election-related malpractices like vote-buying and misuse of funds
This corruption is often localized and informal, making it difficult to detect yet deeply rooted in day-to-day
governance.

Causes of Corruption in Local Bodies

Several systemic and behavioral factors contribute to corruption in local governments:
1. Weak Accountability Mechanisms: Local bodies often function without effective internal audits, social audits,
or citizen oversight.
2. Overdependence on State and Central Funds: Lack of financial autonomy compels local representatives to
compete for discretionary grants, encouraging lobbying and favoritism.
3. Poor Capacity and Training: Elected members, especially at the panchayat level, often lack the knowledge of
rules and ethical conduct, making them vulnerable to manipulation.
4. Contractor-Politician Nexus: Infrastructure projects are commonly cornered by a close network of politicians
and contractors who inflate costs and share commissions.
5. Lack of Digitisation: Absence of real-time, online monitoring and paper-based administration allows
manipulation of records and under-the-table deals.

Impact of Corruption
The effects of corruption in local government are disproportionate and far-reaching:

 Denial of Basic Services: Citizens suffer from poor roads, erratic water supply, unsafe sanitation, and
failing public health systems.
 Exclusion of the Vulnerable: The poor and marginalised often have to pay bribes to access welfare
entitlements or are simply excluded.
 Loss of Public Faith: People begin to see local bodies as extensions of corrupt politics rather than
participatory democracy.
 56

 Inefficient Resource Use: Leakages in funds hamper effective use of public money, reducing the impact of
developmental initiatives.
 Stagnation of Decentralisation: Corruption weakens the spirit of self-governance and keeps power
concentrated in informal elites.

Efforts Taken to Curb Corruption

Some significant steps have been taken in recent years:

 Social Audits and Gram Sabhas: Introduced in schemes like MGNREGA to ensure community oversight
of expenditure.
 E-Governance Tools: Online portals for property tax, service requests, and fund tracking in many
municipalities have improved transparency.
 Lokayuktas and Vigilance Departments: At the state level, they investigate misconduct and prosecute
corrupt local officials.
 Capacity Building: Training programs for Panchayat functionaries through State Institutes of Rural
Development (SIRD).
 RTI Act, 2005: Citizens use the Right to Information to demand accountability in projects and budgets.

Way Forward
A multi-pronged strategy is required to tackle corruption at the local level:
1. Transparency through Technology - Digitisation of public services, real-time dashboards for schemes, and
online tendering systems can significantly reduce human discretion and corruption.
2. Empowered Local Vigilance - Institutionalising Ward Committees, Resident Welfare Associations (RWAs),
and Gram Sabhas to monitor development work and grievance redressal can enhance accountability.
3. Decentralised Auditing - Regular third-party audits, social audits, and public disclosure of financial data in
local languages can empower citizens.
4. Ethical and Legal Reforms - Whistleblower protection, strict penalties for collusion, and time-bound
grievance redressal mechanisms must be enforced at the local level.
5. Capacity and Civic Education - Training elected representatives in ethics, finance, and rights, and promoting
civic education among citizens to demand clean governance.

GENDER & CASTE DISCRIMINATION

Local government in India was envisioned as a space for inclusive grassroots democracy, ensuring the
participation of marginalized sections like women, Scheduled Castes (SCs), and Scheduled Tribes (STs) in
governance. Constitutional amendments, especially the 73rd and 74th Amendments, mandated reservations to promote
social justice. Yet, on the ground, gender and caste discrimination continue to distort democratic functioning. Though
representation has improved on paper, systemic inequalities, socio-cultural hierarchies, and political manipulation
persist in practice.

Caste Discrimination in Local Governance

Despite constitutional safeguards, caste-based discrimination is entrenched in local politics, especially in rural areas.
1. Token Representation and Proxy Politics - While SC/STs may be elected due to mandated reservations, they often
serve as proxy candidates for dominant castes. Real power remains with the local elite who manipulate decisions and
access to resources.
 57

2. Exclusion from Decision-Making - Even after elections, lower-caste representatives face humiliation, isolation in
meetings, denial of seating arrangements, or being forced to sign documents without consent. Many are not informed
about meeting schedules or financial decisions.
3. Unequal Access to Welfare - Dalit-majority hamlets or bastis often face delayed or denied development works
such as street paving, drainage, or electrification. Projects are often diverted to dominant caste localities.
4. Caste-Based Violence - Elected Dalit leaders have faced verbal abuse, social boycott, threats, or even physical
violence, especially if they assert independence. Such incidents discourage political participation from marginalized
communities.

Gender Discrimination in Local Governance

Although one-third of all seats are reserved for women, and some states like Bihar and Rajasthan have raised this to
50%, women still face structural and cultural discrimination in local government.
1. Proxy Representation (“Sarpanch Pati” Culture) - In many places, elected women serve as nominal heads,
while their husbands or male relatives run the office. These “Sarpanch Patis” violate the spirit of representation and
reduce women to figureheads.
2. Lack of Training and Exposure - Many women, especially from rural or marginal backgrounds, are first-
time entrants into politics. With limited education and no training in governance, they struggle with administrative
work and are sidelined in decision-making.
3. Cultural Norms and Mobility Restrictions - Traditional gender roles limit women’s mobility, voice, and
leadership capacity. Speaking in meetings, dealing with male bureaucrats, or supervising fieldwork often invites
ridicule or resistance.
4. Harassment and Violence - Instances of intimidation, sexual harassment, and character assassination are
used to silence assertive women leaders. They are also more vulnerable to political and social pressures.

Intersectionality: Double Discrimination

Women from SC/ST/OBC communities face intersectional discrimination—due to both caste and gender. A Dalit
woman sarpanch, for instance, may be excluded from village decisions due to her caste, and simultaneously
undermined by male officials due to her gender. This double marginalization is a major barrier to truly inclusive
governance.

Steps Taken to Address Discrimination

 Reservations: Constitutional amendments guarantee representation of women and SC/STs in panchayats
and municipalities.
 Training Programs: Government and NGOs conduct leadership and legal awareness training for elected
women and Dalit leaders.
 Legal Protections: SC/ST Prevention of Atrocities Act and workplace harassment laws offer some legal
recourse.
 Self-Help Groups and Collectives: Women’s groups and Dalit rights organizations have emerged to
support elected representatives and hold institutions accountable.

Challenges That Remain

 Social attitudes and hierarchies continue to undermine real empowerment.
 Lack of political will and weak enforcement mechanisms enable continued discrimination.
 Inadequate grievance redressal systems discourage victims from speaking up.
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 Absence of economic independence further limits autonomy of marginalized leaders.

Way Forward
 Institutional Support: Strengthen support cells for SC/ST and women leaders at district and block
levels.
 Capacity Building: Mandatory and regular training on leadership, finance, and legal literacy.
 Penal Provisions: Strict enforcement against caste and gender-based discrimination in local bodies.
 Incentivize Real Participation: Recognition, rewards, and exposure for genuine leadership from
marginalized groups.
 Civic Education: Promote democratic values, gender sensitivity, and anti-caste attitudes through
community education.

ELECTION ISSUES

Free and fair elections are the cornerstone of democracy, and in India, local government elections represent
the most direct form of citizen participation. After the 73rd and 74th Constitutional Amendments, elections to
Panchayati Raj Institutions (PRIs) and Urban Local Bodies (ULBs) became mandatory every five years, aiming to
decentralise power and deepen democratic processes. However, the practice is riddled with numerous election-related
issues that dilute the purpose of participatory governance and undermine democratic legitimacy at the grassroots.
1. Delay in Elections
One of the most common problems is the postponement of local elections, often under pretexts like delimitation,
natural disasters, or legal disputes. Many states dissolve elected bodies and continue governance through
administrators, defeating the spirit of timely representation. Despite constitutional provisions, State Election
Commissions (SECs) lack the institutional strength and independence to resist government pressure, making elections
vulnerable to executive delays.
2. Political Interference
Local elections are increasingly influenced by state-level politics. National or regional parties often treat local polls as
proxy battles, using money, muscle, and media to dominate the process. This undermines independent, community-
based leadership and promotes polarisation and partisanship at the village or ward level. The core idea of local self-
governance is compromised when local representatives become extensions of political parties, not accountable to the
local public.
3. Caste and Identity-Based Voting
While caste-based reservations in local bodies were introduced to ensure representation of marginalised groups,
elections are often reduced to identity contests. Candidates are selected not for their capability or commitment, but
based on caste arithmetic. This leads to division of communities, factionalism, and in some cases, caste-based violence
before or after elections. Women and Dalits are sometimes fielded as token candidates, with real control held by
dominant caste elites.
4. Proxy Candidates and Dummy Leadership
The phenomenon of proxy leadership, especially in reserved seats for women or SC/STs, is widespread. In many
cases, the elected representative is a nominal head, while the actual decision-making is done by male relatives or
dominant groups. Known as “Sarpanch Pati” culture, this violates the essence of democratic representation and legal
mandates.
5. Use of Money and Muscle Power
Increasingly, local elections witness the distribution of cash, liquor, or household goods to sway voters. Criminal
elements and contractors contest elections to gain access to local contracts and funds. Booth capturing, voter
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intimidation, and manipulation of voter lists are still reported in some areas, especially in conflict-prone or politically
volatile regions.
6. Lack of Voter Awareness and Participation
In many rural and semi-urban areas, voter turnout is low due to a lack of awareness about the powers and functions of
local government. People often vote based on personal loyalties, caste, or inducements, not on developmental issues.
This leads to the election of ineffective or corrupt leaders, weakening the quality of governance.
7. Weak Role of State Election Commissions
Unlike the Election Commission of India, State Election Commissions (SECs) are poorly staffed, lack independent
funding, and are often headed by retired bureaucrats appointed by the state government. As a result, their ability to
ensure free, fair, and timely elections is compromised. Reforms to strengthen their autonomy and capacity are urgently
needed.
8. Electoral Malpractices
Common irregularities in local elections include:
 Bogus voting and impersonation
 Incomplete or outdated electoral rolls
 Tampering of Electronic Voting Machines (EVMs) or ballot boxes
 Suppression of opposition candidates through threats or fake legal cases
Such malpractices distort the democratic process, especially in marginalized or conflict-ridden regions.
9. Lack of Post-Election Accountability
After elections, many elected representatives are not held accountable to their manifestos or responsibilities. No recall
mechanism, weak Gram Sabha participation, and absence of performance metrics mean that poor-performing leaders
often escape scrutiny.

Way Forward
 Strengthen State Election Commissions with independent funding, recruitment, and protection from
executive interference.
 Digitize electoral rolls and increase transparency in candidate nominations.
 Promote non-partisan local elections in panchayats to focus on development over politics.
 Enforce stricter laws against electoral bribery and caste-based campaigning.
 Conduct voter awareness campaigns to educate citizens on issues, powers of local bodies, and
accountability.
 Encourage regular Gram Sabha meetings to monitor post-election performance.

ROLE OF POLITICAL PARTIES

Local government is the foundation of participatory democracy in India. It serves as the link between the state
and the citizens, ensuring governance reaches the grassroots. While the 73rd and 74th Constitutional Amendments
institutionalized Panchayati Raj Institutions (PRIs) and Urban Local Bodies (ULBs), they did not prescribe the
specific role of political parties in these bodies. Despite this, political parties have become an integral part of local
governance, especially in urban areas and in states where party-based local elections are allowed. Their influence has
both positive and challenging aspects, depending on how their presence aligns with democratic decentralisation.
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1. Mobilisation of Voters and Political Awareness

Political parties play a crucial role in politicising local issues, raising voter awareness, and encouraging participation
in elections. Their presence helps in mobilising public opinion, especially in large or diverse constituencies. Through
manifestos, campaigns, and public meetings, parties help citizens understand local needs, development priorities, and
government schemes. This contributes to a more informed and engaged electorate at the grassroots.
2. Political Representation and Leadership Grooming
Local governments serve as a training ground for emerging political leaders. Political parties use local bodies as
platforms to nurture new talent, identify leaders from underrepresented communities, and give them real-time
experience in public administration. Many state and national-level leaders, including chief ministers and MPs, began
their journey in municipalities or panchayats. Thus, parties strengthen the political pipeline and leadership structure in
the country.
3. Organised Functioning and Policy Continuity
In places where political parties are active, local governments often benefit from greater organisational discipline,
policy clarity, and administrative support. Party-based panchayats and municipalities may work more efficiently when
aligned with state or national governments, allowing for smoother implementation of welfare schemes and
infrastructure projects. Political parties help bring policy continuity and coordination between levels of government.
4. Facilitating Accountability and Opposition
The presence of political parties ensures there is a structured opposition within local bodies. This facilitates debate,
dissent, and transparency, holding ruling members accountable to their promises. Party-affiliated opposition members
often raise important questions, scrutinize budgets, and push for transparency in governance. This check-and-balance
function is essential for healthy local democracy.
5. Promoting Inclusivity and Representation
Political parties, particularly national and regional ones, are bound by constitutional mandates to promote social
justice and inclusion. By fielding candidates from SC/ST, OBC, minority, and women categories, parties help enhance
the diversity of local governments. Reservation policies are better enforced when backed by party support and
electoral legitimacy.

Challenges and Limitations

While political parties bring structure and visibility, their presence is not without limitations. Excessive politicisation
of local governance can:

 Shift focus from development to ideology or vote-bank politics

 Encourage party loyalty over community interest
 Lead to polarisation and factionalism even at the ward or village level
 Allow state-level politics to interfere in local decision-making
In some regions, money and muscle power from higher-level politics seep into local elections, distorting grassroots
democracy. Also, local representatives may become dependent on party instructions, weakening autonomy and
responsiveness to local needs.