UPSC MainsPUBLIC-ADMINISTRATION-PAPER-II202120 Marks
Q16.

73rd and 74th Constitutional Amendment Acts aimed at making the third tier of government more powerful and effective for democratic decentralization. Critically examine the extent to which this goal has been transformed into reality.

How to Approach

This question requires a critical assessment of the 73rd and 74th Constitutional Amendment Acts’ success in empowering local bodies. The answer should begin by outlining the core objectives of these amendments – democratic decentralization and strengthening the third tier of governance. Then, it needs to analyze the extent to which these objectives have been met, considering both positive impacts (increased participation, devolution of functions) and limitations (financial constraints, state-level reluctance, lack of capacity building). A balanced approach, acknowledging both successes and failures, is crucial. Structure the answer into introduction, body (covering legal provisions, positive impacts, challenges, and remedial measures), and conclusion.

Model Answer

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Introduction

The 73rd and 74th Constitutional Amendment Acts, enacted in 1992 and 1993 respectively, marked a watershed moment in Indian governance by constitutionally recognizing and providing a framework for Panchayats (rural local bodies) and Municipalities (urban local bodies). These amendments aimed to realize the vision of democratic decentralization enshrined in Article 40 of the Directive Principles of State Policy, fostering grassroots democracy and responsive governance. Prior to these amendments, local bodies existed but lacked constitutional sanction, leading to inconsistencies in their structure, functions, and elections. The core objective was to empower these institutions to function as effective units of self-governance, capable of addressing local needs and promoting inclusive development.

Legal and Institutional Framework

The 73rd Amendment (Panchayats) and 74th Amendment (Municipalities) inserted new Parts IX and IXA into the Constitution, respectively. Key provisions included:

  • Regular elections: Mandating elections every five years.
  • Reservation of seats: For Scheduled Castes (SCs), Scheduled Tribes (STs), and women (at least one-third of seats).
  • State Finance Commission: Constitution of State Finance Commissions to recommend principles governing the distribution of taxes, duties, tolls, and fees between the state and local bodies.
  • State Election Commission: Establishment of State Election Commissions for conducting elections to local bodies.
  • Devolution of powers and responsibilities: State legislatures were empowered to devolve 29 subjects (listed in the Eleventh and Twelfth Schedules) to local bodies.

Positive Impacts: Transforming the Reality

The amendments have undeniably led to several positive outcomes:

  • Increased Political Participation: The reservation policy has significantly increased the representation of marginalized communities, particularly women, in local governance. As of 2023, over 1.4 million elected representatives are serving in Panchayats and Municipalities across India (Ministry of Panchayati Raj data).
  • Enhanced Local Planning: Local bodies are now actively involved in planning and implementation of development projects, leading to more localized and needs-based solutions.
  • Improved Service Delivery: In areas like water supply, sanitation, and primary education, local bodies have demonstrated the potential to improve service delivery, particularly when adequately empowered and funded.
  • Strengthened Grassroots Democracy: The amendments have fostered a greater sense of ownership and accountability among citizens, strengthening the foundations of democratic governance.

Challenges and Limitations

Despite the progress, the goal of truly empowering local bodies remains largely unrealized due to several challenges:

  • Financial Constraints: Local bodies continue to be heavily dependent on state governments for funds. The State Finance Commissions have not always been effective in ensuring adequate financial devolution. According to the Reserve Bank of India (RBI) report on State Finances (2022-23), own-source revenue of ULBs remains low, averaging around 20-30% of their total revenue.
  • Lack of Functional Devolution: States have been reluctant to devolve sufficient functions, powers, and responsibilities to local bodies. Many critical functions remain centralized at the state level.
  • Capacity Building Deficits: A significant number of elected representatives and officials lack the necessary skills and training to effectively manage local governance.
  • Political Interference: Local bodies often face political interference from state-level politicians and bureaucrats, hindering their autonomy and effectiveness.
  • Social Inequalities: Despite reservation, entrenched social hierarchies and power dynamics often limit the effective participation of marginalized groups.
  • Superimposition of Central Schemes: Many central schemes are implemented directly by state departments, bypassing local bodies and undermining their role.

Remedial Measures and Way Forward

Addressing these challenges requires a multi-pronged approach:

  • Strengthening State Finance Commissions: Ensuring their independence and providing them with adequate resources to formulate effective recommendations.
  • Promoting Functional Devolution: States need to proactively devolve functions, powers, and responsibilities to local bodies, as mandated by the Constitution.
  • Investing in Capacity Building: Providing comprehensive training and skill development programs for elected representatives and officials.
  • Enhancing Financial Autonomy: Exploring innovative financing mechanisms, such as local taxes and user charges, to increase the financial independence of local bodies.
  • Promoting Citizen Participation: Strengthening social audit mechanisms and encouraging greater citizen involvement in local governance.
  • Effective Implementation of the 15th Finance Commission Recommendations: The 15th Finance Commission recommended substantial grants to local bodies, which need to be effectively utilized.

Conclusion

The 73rd and 74th Amendments represent a significant step towards democratic decentralization in India. While they have undoubtedly empowered local bodies and increased political participation, the goal of creating truly effective and autonomous units of self-governance remains a work in progress. Overcoming the challenges of financial constraints, lack of functional devolution, and capacity building deficits is crucial to realizing the full potential of these landmark amendments and strengthening the foundations of Indian democracy. A sustained commitment from both state governments and the central government is essential to ensure that the third tier of governance plays its rightful role in India’s development trajectory.

Answer Length

This is a comprehensive model answer for learning purposes and may exceed the word limit. In the exam, always adhere to the prescribed word count.

Additional Resources

Key Definitions

Democratic Decentralization
The process of transferring power and responsibility from central authorities to local government bodies, enabling them to address local needs and promote participatory governance.
Eleventh and Twelfth Schedules
These schedules to the Constitution list the subjects that can be devolved to Panchayats (Eleventh Schedule) and Municipalities (Twelfth Schedule), respectively, providing a framework for functional devolution.

Key Statistics

As of December 2022, there are 243,389 Panchayats and 4,463 Municipal Corporations, Municipalities and Nagar Panchayats in India.

Source: Ministry of Panchayati Raj & Ministry of Housing and Urban Affairs (Data as of knowledge cutoff - Dec 2023)

According to a study by the PRS Legislative Research (2021), the average own-source revenue of urban local bodies in India is less than 25% of their total revenue, indicating a high dependence on state government transfers.

Source: PRS Legislative Research (Data as of knowledge cutoff - Dec 2023)

Examples

Kerala’s People’s Plan Campaign

Launched in 1996, this campaign involved extensive participation of local communities in identifying and prioritizing development projects, leading to significant improvements in infrastructure and service delivery.

Frequently Asked Questions

What is the role of the State Election Commission?

The State Election Commission is responsible for conducting free and fair elections to local bodies, ensuring compliance with constitutional provisions and electoral norms.

Topics Covered

PolityGovernanceConstitutional AmendmentsPanchayati RajDecentralization