21st April 2022 | Local Self-Government 73rd and 74th Constitutional Amendments for sharing of powers – Panchayat Raj and Municipal Institutions | Laex Secure

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Syllabus- Local Self-Government 73rd and 74th Constitutional Amendments for sharing of powers – Panchayat Raj and Municipal Institutions.

Number of questions- Mains: 02, Prelims – 10

Mains Questions of the day- 

Q. Discuss the reasons for failure of the Local Self-Government institutions? 

Answer:

Introduction: –

Explain about the local self-government and its importance (promoting Representative Democracy and Participatory Democracy)

Body: –

Explain various problems which lead to the failure of the local self-governments in India.

Conclusion: – 

Mention some measures to overcome these problems and to perform as an effective, efficient and self-sustained institution.

  • The time has come to move towards the devolution of powers with local self-government with sufficient funds which promote the real participatory democracy of the country.
  • There is a need for the greater political will or maturity to accept the importance of PRIs, and devolve power to them as mandated in the Constitution of India.
  • Building the capacities of the PRIs not as mere implementers of the projects but as planners and evaluators would help strengthen the institution. 
  • The Center needs to financially incentivizes the states to encourage and promote the local self-government in such way it will act as self-sustained institutions.

Content: –

  • The 73rd and 74th Constitutional Amendment Act 1993 envisaged the idea of local self-government in India.
  • It promotes the grassroot democracy in the country which was the dream of the Mahatma Gandhi.
  • It transfers the representative democracy to participative democracy. 

Reasons for failure of the Local Self Government: –

  • 73rd and 74th Amendment providing voluntary provisions to state governments in devolving powers and funds. Only 20/29 subjects on an average have been devolved by the State Governments.
  • Lack of adequate resources and funds. As much as 95% of a Rural Local Government’s Budget relies on funds devolved from a higher level of Government.
  • Local government spending is only 2 percent of the GDP.
  • Reluctance of the state to devolve much powers to the district level. Even though States like Kerala, Tamil Nadu, Karnataka have done well in devolving the powers, states like Uttar Pradesh, Bihar are lagging behind.
  • Even though State Finance Commissions have been established in all states, their recommendations are not properly implemented.
  • PRIs also suffer from structural deficiencies i.e. no secretarial support and lower levels of technical knowledge which restricted the aggregation of bottom up planning.
  • Lack of separate bureaucratic cadre for local self-government with expertise in local administration. For example, Karnataka has separate cadre.
  • The State and Central Government have also started creating separate units for implementing specific projects on education, health, and so on, this limits the role and powers of the PRIs.
  • Institutional structures like the district planning boards, created to expedite decentralised planning, are either non-functional or do not give priority to PRIs. 

Q. Describe the salient features of the 73rd and 74th Constitutional Amendment Acts?

Answer:

Introduction: –

Give a brief introduction regarding the rural and urban local self-governments and their importance.

Body: –

Write about the salient features of the Local self-governments.

Conclusion: –

Suggest some measures to overcome existing issues and measures required for the effective and efficient functioning of these institutions.

  • States should devise proper mechanisms to devolve funds to the panchayats. 
  • They should be conferred power to generate their own revenue. 
  • Proper uniform cadre should be created for the panchayats. 
  • Education programs for the representatives should be conducted, teaching them about their powers, roles and responsibilities.
  • Powers of the panchayats should be properly demarcated. 
  • Gram Sabha should be empowered and regular meetings must be conducted. 
  • Social auditing mechanisms should be developed.

Content: –

  • The 73rd and 74th Constitutional Amendment Act 1993 envisaged the idea of local self-Government in India.
  • It promotes the grassroot democracy in the country which was the dream of the Mahatma Gandhi.

Salient Features of the Constitution 73rd and 74th Amendments: –

  • Added two new parts to the Constitution (Part IX: – “The Panchayats” (added by 73rd Amendment) and Part IXA: – “The Municipalities” (added by 74th Amendment)).
  • Basic units of Democratic System-Gram Sabha (villages) and Ward Committee (Municipalities) comprising all the adult members registered as voters.
  • Three-tier system of Panchayats at village, intermediate/block and district levels except in States with population is below 20 lakhs (Article 243B).
  • Seats at all levels to be filled by direct elections Article 243C (2).
  • Seats reserved for Scheduled Castes (SCs) and Scheduled Tribes (STs) and the chairpersons of the Panchayats at all levels also shall be reserved for SCs and STs in proportion to their population.
  • Uniform five-year term and elections to constitute new bodies to be completed before the expiry of the term.
  • In the event of dissolution, elections compulsorily within six months (Article 243E).
  • Independent State Election Commission in each State for superintendence, direction and control of the electoral rolls (Article 243K).
  • Panchayats to prepare plans for economic development and social justice in respect of subjects as devolved by law to the various levels of Panchayats including the subjects as illustrated in Eleventh Schedule (Article 243G).
  • 74th Amendment provides for a District Planning Committee to consolidate the plans prepared by Panchayats and Municipalities (Article 243ZD).
  • Budgetary allocation from State Governments, share of revenue of certain taxes, collection and retention of the revenue it raises, Central Government programmes and grants, Union Finance Commission grants (Article 243H).
  • Establish a State Finance Commission in each State to determine the principles on the basis of which adequate financial resources would be ensured for Panchayats and Municipalities (Article 243I).

Prelims questions of the day: –

Q1. The DPSPs aim to establish village Panchayats as units of Self-government. What does the term units of self-Government best imply?

  1. To provide Constitutional status to Gram Sabha and Gram Panchayat. 
  2. The State Government shall strive to ensure the socio-economic development of villages.
  3. The villages shall be empowered to plan for their resources and prioritize their needs without external intervention.
  4. The decision-making in the Panchayats to be vested with people.

Answer 😀

Explanation: –

The DPSPs (Article 40) of the constitution envisaged the establishment of village Panchayats as units of self-government. 

Self-government implies giving ultimate decision-making power to people. That power enables them to plan and prioritize their needs. (Hence option D is correct)

Without external intervention sometimes it is not possible to address some issues like untouchability and other discriminatory practices that are usually associated with villages. Moreover, every village can’t sustain itself completely without external dependence on resources. Precisely for these reasons, people like Dr. Ambedkar criticized the concept of ‘village Republics’.   (Hence option C is not the best meaning of self-government)

Constitutional status is a means to achieve the ideal of self-governance. Self-government doesn’t mean just Constitutional status. (Hence option A is incorrect)

Option B is about the socio-economic development of villages by the states. This can be done even without self-government in villages.  This option is very generic and can be easily eliminated. (Hence option B is incorrect)

Q2. Which of the following is not a type of Urban Local Government in India?

  1. County council
  2. Industrial township
  3. Special purpose agency
  4. Town area committee

Answer: A

Explanation: –

There are eight types of urban local governments in India. They are:

  1. Municipal corporation for administration of big cities.
  2. Municipality for administration of small cities and towns.
  3. Notified area committee for administration of a fast developing town due to industrialization or a town which is considered important by the state government.
  4. Town area committee for administration of small town. (Hence statement D is incorrect)
  5. Cantonment board for municipal administration of civilian population in the cantonment area.
  6. Industrial township where the municipal services are provided by an industrial establishment. (Hence statement B is incorrect)
  7. Port trust to manage and protect the ports and to provide civic amenities.
  8. Special purpose agency to undertake designated activities that ‘legitimately’ belong to the domain of municipal corporations or municipalities or other local urban governments. (Hence statement C is incorrect)

City Council is a type of urban local government in Britain. (Hence statement A is correct)

Q3. The State Finance Commission doesn’t make recommendations on which of the following matters?

  1. The determination of the taxes and duties that may be assigned to the municipalities.
  2. The measures that are needed to improve the financial position of the municipalities.
  3. The distribution of the net proceeds of the taxes levied by the state between the state and the municipalities.
  4. The grants-in-aid to the municipalities from the consolidated fund of India.

Answer 😀

Explanation: –

The State Finance Commission review the financial position of municipalities and make recommendation to the governor on the following matters:

  • The principles that should govern the distribution of the net proceeds of the taxes, duties, tolls, and fees levied by the state between the state and the municipalities. (Vertical devolution) (Hence statement C is incorrect)
  • Allocation of the above share of municipalities amongst the municipalities at all levels. (Horizontal devolution)
  • The determination of the taxes, duties, tolls, and fees that may be assigned to the municipalities. (Hence statement A is incorrect)
  • Principles governing the grants-in-aid to the municipalities from the consolidated fund of the state.
  • The measures that are needed to improve the financial position of the municipalities. (Hence statement B is incorrect)

It is the Union Finance Commission that recommends the grants-in-aid to the municipalities from the consolidated fund of India. 

Q4. Any dispute related to the delimitation of wards in the municipality can be taken up with which of the following?

  1. High court of the state
  2. District court under which the municipality falls
  3. Supreme court 
  4. None of the above

Answer 😀

Explanation: –

The state legislature makes laws prescribing the delimitation rules of municipalities. The 74th Constitutional Amendment Act declares that the validity of such laws relating to the delimitation of constituencies or the allotment of seats to such constituencies cannot be questioned in any court. 

Therefore, disputes related to the delimitation of wards in a municipality can’t be taken up by any court.

Q5. Consider the following statements about the ‘Notified Area Committee’.

  1. It is neither an elected nor a statutory body.
  2. It can be created for a fast developing town through a gazette notification.

Which of the above statement(s) is/are correct?

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2

Answer: -C

Explanation: –

A Notified Area Committee (NAC) is created for the administration of

  • A fast developing town due to industrialization (Hence statement 2 is correct)
  • A town that does not yet fulfill all the conditions necessary for the constitution of a municipality, but which otherwise is considered important by the state government

Since it is established by a notification in the government gazette, it is called a notified area committee.

Unlike the municipality, NAC is an entirely nominated body. All the members of NAC including the chairman are nominated by the state government. Thus, it is neither an elected nor a statutory body. (Hence statement 1 is correct)

Q6. Which of the following statements about the Cantonment Board is incorrect?

  1. It is created and administered by the central government.
  2. The president of the board is elected by the elected members from amongst themselves.
  3. The elected members of the board hold office for a term of five years.
  4. The executive officer of the cantonment board is appointed by the president of India.

Answer: -B

Explanation: –

A Cantonment Board is set up under the provisions of the Cantonments Act of 2006 by the central government. It works under the administrative control of the defence ministry. (Hence statement A is correct)

A cantonment board consists of both elected and nominated members. The elected members hold office for a term of five years while the nominated members (i.e., ex-officio members) continue so long as they hold the office in that station. (Hence statement C is correct)

The military officer commanding the station is the ex-officio president of the board and presides over its meetings. (Hence statement B is incorrect). It is the vice-president who gets elected by the elected members from amongst themselves for a term of five years.

The executive officer of the cantonment board is appointed by the president of India. He implements all the resolutions and decisions of the board and its committees. (Hence statement D is correct)

Q7. Which of the following statements about the ‘central council of local government’ is correct?

  1. It was set up under the provisions of the 74th Constitutional Amendment Act.
  2. It deals with both urban and rural local governments.
  3. Union Minister for Urban Development acts as the chairperson of the council.
  4. Decisions of the council are binding on the members. 

Answer: -C

Explanation: –

The Central Council of Local Government was set up in 1954. It was constituted under Article 263 of the Constitution by an order of the President of India. (Hence statement A is incorrect)

Till 1958, it dealt with both urban and rural local governments, but after that, it has been dealing with matters of urban local government only. (Hence statement B is incorrect)

The council consists of Union Minister for Urban Development and the ministers for local self-government in states. The Union minister acts as the chairperson of the Council. (Hence statement C is correct). 

The council is an advisory body and its decisions are not binding on the members. (Hence statement D is incorrect)

Q8. Which of the following is considered as the foundation of the Panchayati raj system?

  1. Gram Sabha
  2. Panchayat development plan
  3. Panchayat Council
  4. Village

Answer: A

Explanation: –

The 73rd constitutional amendment act provides for Gram Sabha as the foundation of the Panchayati raj system. It is the Gram Sabha that is vested with powers and functions by the state legislature. 

Panchayat council (Panchayat President and ward members) is responsible to Gram Sabha. Panchayat’s development plan is also chalked out by the gram sabha. (Hence options B and C are incorrect)

Thus the ultimate power lies with the gram sabha and it is considered the foundation for the Panchayati raj system. (Hence option A is correct)

Village is a broader term that includes the total population some of whom can’t be members of the gram sabha (like children, people without vote, etc.). (Hence option D is incorrect)

Q9. Which part of the constitution envisaged the establishment of village panchayats?

  1. Part III
  2. Part IV
  3. Part IVA
  4. Part IXA

Answer: -B

Explanation: –

 Article 40 under Part IV (Directive Principles of State Policy) of the constitution recommended for the establishment of village panchayats as functional units of self-government. (Hence option B is correct)

Part III deals with the fundamental rights.

Part IVA deals with the fundamental duties.

Part IXA deals with the municipalities.

Q10. Which of the following statements about finance of Urban Local Bodies (ULB) is incorrect?

  1. ULBs cannot raise money from the market by issuing bonds.
  2. ULBs can receive funds directly from the union government.
  3. ULBs can borrow from financial institutions only with the state government’s approval.
  4. Rent on municipal properties forms part of the non-tax revenue of the ULBs.

Answer: A

Explanation: –

 The Urban Local Bodies (ULBs) can raise funds by issuing bonds. These are called Municipal Bonds (also known as Muni bonds). Many cities like Ahmedabad, Bengaluru, and Lucknow issued these bonds in recent years. (Hence statement A is incorrect)

ULBs can receive funds directly from the union government in the form of finance commission grants, for implementation of schemes like Smart Cities Mission, etc. (Hence statement B is correct)

The ULBs can raise loans from the state government and financial institutions to meet their capital expenditure. They can borrow from the financial institutions only with the approval of the state government. (Hence statement C is correct)

The Non-Tax Revenue source of ULBs includes rent on municipal properties, fees and fines, royalty, profits and dividends, interest, user charges, and miscellaneous receipts. (Hence statement D is correct)

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