UPSC MainsECONOMICS-PAPER-II202320 Marks
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Q21.

State the main provisions of the 73rd and 74th Constitutional Amendment Act, 1992. Do you agree that this Act has been successful in promoting the democratic decentralization in India? Justify your answer.

How to Approach

This question requires a detailed understanding of the 73rd and 74th Constitutional Amendment Acts and a critical assessment of their success in promoting democratic decentralization. The answer should begin by outlining the key provisions of both Acts, differentiating between them where necessary. Subsequently, it should evaluate the extent to which these Acts have achieved their objectives, considering both successes and limitations, supported by evidence and examples. A balanced conclusion acknowledging the progress made while highlighting areas needing improvement is crucial.

Model Answer

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Introduction

The 73rd and 74th Constitutional Amendment Acts, enacted in 1992, represent a landmark moment in India’s journey towards decentralized governance. Prior to these amendments, Panchayats and Municipalities lacked constitutional recognition and were largely dependent on state legislation. These amendments aimed to institutionalize local self-governance, empowering rural and urban local bodies to function as effective units of self-government, thereby fostering grassroots democracy and participatory development. The core principle underlying these amendments was to bring governance closer to the people, enhancing accountability and responsiveness.

Provisions of the 73rd Constitutional Amendment Act, 1992 (Panchayats)

The 73rd Amendment Act added Part IX to the Constitution, titled “The Panchayats,” dealing with the establishment of Panchayats. Key provisions include:

  • Constitutional Recognition: Granted constitutional status to Panchayats.
  • Establishment of Three-Tier System: Provided for a three-tier system of Panchayats at the village, intermediate (block/taluka), and district levels, except in states with a population below 20 lakh.
  • Reservation of Seats: Mandated reservation of seats for Scheduled Castes (SCs), Scheduled Tribes (STs), and women (at least one-third of seats) in Panchayats.
  • Duration of Panchayats: Fixed a five-year term for Panchayats.
  • State Election Commission: Provided for the establishment of a State Election Commission to conduct elections to Panchayats.
  • State Finance Commission: Mandated the establishment of a State Finance Commission to review the financial position of Panchayats and make recommendations regarding the distribution of funds.

Provisions of the 74th Constitutional Amendment Act, 1992 (Municipalities)

The 74th Amendment Act added Part IXA to the Constitution, titled “The Municipalities,” dealing with the establishment of Municipalities. Key provisions include:

  • Constitutional Recognition: Granted constitutional status to Municipalities.
  • Categorization of Municipalities: Provided for different types of Municipalities based on population and area – Nagar Panchayat (for transitional areas), Municipal Council (for smaller urban areas), and Municipal Corporation (for larger urban areas).
  • Reservation of Seats: Mandated reservation of seats for SCs, STs, and women (at least one-third of seats) in Municipalities.
  • Duration of Municipalities: Fixed a five-year term for Municipalities.
  • State Election Commission: The same State Election Commission responsible for Panchayat elections also conducts elections to Municipalities.
  • State Finance Commission: The same State Finance Commission also reviews the financial position of Municipalities and makes recommendations.

Success in Promoting Democratic Decentralization

The 73rd and 74th Amendments have undeniably contributed to democratic decentralization in India, but the extent of success is debatable. Several factors support this claim:

  • Increased Participation: The reservation of seats for marginalized groups has significantly increased their participation in local governance. According to the Ministry of Panchayati Raj (2023 data), over 1.4 million elected representatives are currently serving in Panchayats across India.
  • Enhanced Local Planning: The amendments have facilitated the preparation of plans at the local level, addressing specific needs and priorities of communities.
  • Improved Service Delivery: In some areas, local bodies have demonstrably improved the delivery of basic services like water supply, sanitation, and primary education.
  • Empowerment of Women: The one-third reservation for women has led to their increased political awareness and participation, challenging traditional gender roles.

However, several challenges hinder the full realization of democratic decentralization:

  • Financial Dependence: Local bodies remain heavily dependent on state governments for funds, limiting their autonomy and effectiveness. The 15th Finance Commission recommended increasing the share of states’ divisible pool allocated to local bodies, but implementation remains uneven.
  • Lack of Capacity: Many elected representatives and officials lack the necessary skills and training to effectively manage local governance.
  • State-Level Variations: The implementation of the amendments varies significantly across states, with some states being more proactive than others.
  • Political Interference: Local bodies often face interference from state-level politicians and bureaucrats, undermining their autonomy.
  • ‘Pseudo-Decentralization’: Critics argue that the amendments have resulted in ‘pseudo-decentralization,’ where real power remains concentrated at the state level.

Comparative Table: 73rd vs. 74th Amendment

Feature 73rd Amendment (Panchayats) 74th Amendment (Municipalities)
Area of Governance Rural Areas Urban Areas
Tier Structure Village, Intermediate, District Nagar Panchayat, Municipal Council, Municipal Corporation
Population Threshold States with population < 20 lakh may have fewer tiers Categorization based on population and area

Conclusion

The 73rd and 74th Constitutional Amendment Acts have undoubtedly been a progressive step towards strengthening democratic decentralization in India. They have broadened participation, empowered marginalized groups, and facilitated local planning. However, significant challenges related to financial autonomy, capacity building, and political interference remain. To truly realize the vision of self-governance, continued efforts are needed to address these challenges, ensuring that local bodies are adequately empowered and resourced to effectively serve their communities. Further reforms focusing on strengthening the financial position of local bodies and promoting greater accountability are crucial for the sustained success of these landmark amendments.

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 greater citizen participation in decision-making and promoting self-governance.
Untied Funds
Funds provided to local bodies without specifying the purpose for which they should be used, allowing them greater flexibility in addressing local needs and priorities.

Key Statistics

As of January 2024, there are 243,361 Panchayats in India.

Source: Ministry of Panchayati Raj, Annual Report 2023-24

According to a 2022 report by the PRS Legislative Research, the share of untied funds in the total funds available to Panchayats remains relatively low, hindering their ability to respond effectively to local needs.

Source: PRS Legislative Research, “Local Government Finances in India” (2022)

Examples

Kerala’s People’s Plan Campaign

Launched in 1996, this campaign involved extensive participatory planning at the local level, leading to significant improvements in infrastructure and social development. It demonstrated the potential of decentralized planning when coupled with genuine community involvement.

Frequently Asked Questions

What is the role of the State Finance Commission?

The State Finance Commission reviews the financial position of Panchayats and Municipalities and makes recommendations to the Governor regarding the principles governing the distribution of taxes, duties, and grants-in-aid between the state and local bodies.

Topics Covered

PolityGovernancePanchayati RajDecentralizationConstitutional Amendments