UPSC MainsECONOMICS-PAPER-II202515 Marks
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Q14.

4. (c) What are the guidelines of the Decentralized Planning process in India? Describe.

How to Approach

This question requires a comprehensive description of the guidelines for decentralized planning in India. Begin by defining decentralized planning and its constitutional backing (73rd and 74th Amendments). Then, elaborate on the key guidelines, categorizing them for clarity (e.g., institutional, participatory, financial). Conclude with a summary of its importance and the way forward. Use specific examples and relevant articles of the constitution.

Model Answer

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Introduction

Decentralized planning in India represents a fundamental shift from a centralized, top-down approach to one that empowers local communities to actively participate in their own development. This "bottom-up" planning mechanism is crucial for a diverse country like India, enabling development initiatives to be more responsive, relevant, and sustainable by addressing specific local needs and priorities. The essence of decentralized planning lies in transferring decision-making power and resources to local self-governments – Panchayati Raj Institutions (PRIs) in rural areas and Urban Local Bodies (ULBs) in urban areas – constitutionally mandated by the 73rd and 74th Amendment Acts of 1992. These amendments laid the groundwork for a more inclusive and participatory governance structure, aiming to ensure social justice and economic development at the grassroots level.

Guidelines of the Decentralized Planning Process in India

The decentralized planning process in India is primarily guided by the spirit of the 73rd and 74th Constitutional Amendment Acts, which institutionalized local self-governance. The guidelines aim to ensure that planning is participatory, inclusive, and effective, aligning local aspirations with broader development goals.

1. Constitutional Mandate and Empowerment of Local Bodies:

  • 73rd Amendment Act (1992): This amendment gave constitutional status to Panchayati Raj Institutions (PRIs) at the village, intermediate (block), and district levels. It mandated the devolution of powers and responsibilities to Panchayats regarding subjects listed in the Eleventh Schedule (29 subjects), including agriculture, rural development, health, and education.
  • 74th Amendment Act (1992): Similarly, this amendment granted constitutional status to Urban Local Bodies (ULBs) like Municipal Corporations, Municipal Councils, and Nagar Panchayats. It devolved powers for subjects listed in the Twelfth Schedule (18 subjects), covering urban planning, public health, sanitation, and poverty alleviation.
  • Democratic Participation: Both amendments mandate direct elections for members of these local bodies, fostering democratic participation and accountability at the grassroots level.

2. Planning from Below (Bottom-Up Approach):

  • Gram Sabha/Ward Committees: The planning process is envisioned to begin at the lowest level, with Gram Sabhas in rural areas and Ward Committees in urban areas serving as platforms for community mobilization, awareness creation, and identification of local needs, resources, and priorities.
  • Needs Assessment and Prioritization: Local bodies conduct participatory appraisals to assess available resources, identify development gaps, and prioritize the most pressing needs of the community. This ensures plans are community-driven and aligned with local aspirations.

3. Institutional Framework for Planning:

  • District Planning Committees (DPCs): Article 243ZD mandates the constitution of DPCs in every state. The primary function of a DPC is to consolidate the plans prepared by Panchayats and Municipalities in the district into a single draft development plan for the entire district. This ensures integrated and coordinated planning, avoiding duplication and promoting equitable development across rural and urban areas within the district.
  • Metropolitan Planning Committees (MPCs): For metropolitan areas, Article 243ZE mandates the formation of MPCs to prepare a draft development plan for the metropolitan area as a whole, considering the plans prepared by the Municipalities and Panchayats in that area.

4. Financial Devolution and Resource Allocation:

  • State Finance Commissions (SFCs): Article 243I (for Panchayats) and Article 243Y (for Municipalities) mandate the constitution of SFCs every five years. These commissions recommend the distribution of state revenues, grants-in-aid, and the determination of taxes, duties, tolls, and fees that can be assigned to or appropriated by local bodies, enhancing their fiscal autonomy.
  • Strategic Resource Allocation: Decentralized planning emphasizes needs-based funding, where resources are allocated based on specific development gaps and priorities identified at the local level rather than uniform distribution.
  • Local Resource Mobilization: Local bodies are encouraged to generate their own revenue through taxes, fees, and other local levies to finance development activities and reduce dependency on central or state funds.

5. Capacity Building and Institutional Strengthening:

  • Training and Skill Development: Successful decentralized planning requires building the capacity of local officials, elected representatives, community leaders, and technical staff in planning methodologies, project management, and governance practices.
  • Institutional Frameworks: Strengthening local institutions like Gram Sabhas and empowering them to make decisions and implement plans is crucial for effective decentralized planning.

6. Transparency, Accountability, and Monitoring:

  • Downward Accountability: Decision-making being closer to the people enhances accountability and transparency, making it easier to monitor and evaluate progress. Gram Sabhas and Ward Committees serve as platforms for public oversight.
  • Data Collection and Analysis: Local bodies are encouraged to collect and analyze data to inform their planning processes, track progress, and ensure evidence-based decision-making.
  • Citizen Participation: Active involvement of all sections of society, including marginalized groups, women, and Scheduled Castes/Tribes, in the planning process ensures their voices are heard and needs addressed.

Key Features of Decentralized Planning Guidelines

Feature Description
Community-Driven Local communities take the lead in identifying needs and developing plans.
Inclusive Growth Ensures all members, including marginalized groups, have a say.
Localized Solutions Plans are tailored to specific needs and conditions of the community.
Empowerment Local bodies are empowered to make decisions and implement plans.
Accountability Increased transparency and oversight due to proximity to citizens.

These guidelines collectively aim to foster inclusive, participatory, and sustainable development by linking local priorities with state and national objectives, strengthening democracy at the grassroots, and ensuring equitable and effective local development.

Conclusion

The guidelines for decentralized planning in India, primarily enshrined in the 73rd and 74th Constitutional Amendment Acts, mark a pivotal shift towards empowering local self-governments. By promoting a bottom-up approach, fostering democratic participation, institutionalizing planning bodies like DPCs and MPCs, and ensuring financial devolution through State Finance Commissions, India aims to make development more responsive to local needs. While challenges such as inadequate financial resources, capacity gaps, and political interference persist, the framework provides a robust foundation for inclusive and sustainable growth. Continuous efforts towards strengthening local institutions, enhancing their capacities, and ensuring greater autonomy are essential to fully realize the transformative potential of decentralized planning in India.

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

Decentralized Planning
Decentralized planning is a "bottom-up" approach to development where decision-making power and resources are transferred from central authorities to local administrative units and communities, enabling them to identify, plan, and implement development initiatives tailored to their specific needs.
Panchayati Raj Institutions (PRIs)
Panchayati Raj Institutions are constitutionally mandated local self-governments in rural India, established at village, intermediate (block), and district levels to facilitate grassroots-level democratic governance and development planning, as per the 73rd Constitutional Amendment Act.

Key Statistics

As of 2023, there are approximately 2.5 lakh Gram Panchayats, over 6,500 Panchayat Samitis, and around 600 Zila Parishads across India, forming the backbone of decentralized planning in rural areas.

Source: Ministry of Panchayati Raj, Government of India

The 15th Finance Commission recommended a total grant of ₹4,36,361 crore to local governments (both rural and urban) for the period 2021-26, signifying a substantial commitment to financial devolution for decentralized development.

Source: 15th Finance Commission Report

Examples

Kerala's People's Plan Campaign (PPC)

Initiated in 1996, the Kerala People's Plan Campaign is a pioneering example of decentralized planning where 35-40% of the state plan funds were devolved to local bodies. It involved extensive Gram Sabha meetings and expert committees to formulate local plans, demonstrating successful grassroots participation in development.

Mahila Gram Sabhas in Rajasthan

Many villages in Rajasthan have successfully organized 'Mahila Gram Sabhas' (Women's Village Assemblies) where women identify and prioritize issues like water, sanitation, and women's safety, directly influencing local development plans and demonstrating inclusive participation.

Frequently Asked Questions

What is the main role of District Planning Committees (DPCs) in decentralized planning?

The main role of DPCs, as per Article 243ZD, is to consolidate the plans prepared by both rural Panchayats and urban Municipalities within the district into a single draft development plan for the entire district, ensuring integrated and coordinated development.

Topics Covered

GovernanceEconomyDecentralized PlanningGovernanceLocal GovernmentEconomic Planning