Syllabus- Institutions of Rural and Urban Governance-Powers and Functions, Systems for delivery of Services; Cooperatives, State Finance Commission.
Number of questions- Mains: 02, Prelims – 10
Mains Questions of the day-
1.Explain the challenges faced by the Local Self Governments and the reforms which were made by the Government with the aim to strength the Local Self-Governments.
Introduction: –
Write briefly about local self-government’s evolution and its importance in the Governance.
Body: –
Write about the challenges faced by the Local Self Government and recent reforms that were taken by the Government in order to strengthen the same.
Conclusion: –
- The Three F’s for City Governments: The functional autonomy of city governments must be allowed and this should happen with three F’s: the transfer of ‘functions, finances and functionaries’ to city governments. Without these, functional autonomy would be empty.
- Devolution of Funds to local self-governments need political will and political maturity.
- Need of Behavioral Change for Transformation: Cities must be treated as important centers of governance, where democratic decentralization can bring in amazing results.
Content: –
Challenges of Urban Local Bodies: –
- Delegation of powers: Most state governments have not delegated power to urban local authorities, so ULBs have not been able to effectively carry out their functions.
- Ineffective leadership: Mayors and councilors use their positions for their political careers rather than being agents of change for desired urban reforms.
- Creation of parastatal agencies: Parastatal agencies such as urban development authorities and state-owned enterprises are accountable only to state governments and not to local governments.
- Lack of funds: The first and most serious problem facing urban local communities is lack of funding. Municipal committees in many small towns also have difficulty paying salaries to their employees on time.
- Corruption: the administrative mechanisms available to these local authorities are insufficient Often underpaid staff engage in corrupt practices which have resulted in loss of income.
- Limited capacity: Even though municipal bodies receive funds; they do not just not have the ability to function effectively. Most of the funds paid to ULBs are restricted funds.
Urban Local Bodies Reforms: –
Urban local government reforms and urban service reforms are underway with the aim of strengthening the financing of urban local governments in states. These reforms would enable ULBs to provide better public health and sanitation services to their citizens.
Goa has joined five other States namely, Andhra Pradesh, Madhya Pradesh, Manipur, Rajasthan and Telangana, who have completed ULB reforms.
The four citizen-centric areas identified for reforms are:
- Implementation of One Nation One Ration Card System
- Ease of doing business reform
- Urban Local body/ utility reforms
- Power Sector reforms.
The set of reforms stipulated by the Department of Expenditure to achieve these objectives are:
- The State will notify floor rates of property tax in ULBs which are in consonance with the prevailing circle rates.
- The state will notify floor rates of user charges in respect of the provision of water-supply, drainage and sewerage which reflect current costs/past inflation.
- The State will put in place a system of periodic increase in floor rates of property tax/ user charges in line with price increases.
2.Explain the reasons for introduction of 97th Amendment Act 2011?
Introduction: –
Write briefly about evolution of Cooperative Societies in India and its importance.
Body: –
Mention the reasons for the introduction of 97th Amendment Act 2011.
Conclusion: –
To secure the autonomy, independence and progress of the cooperatives, the following steps should be taken-
- Need Incorporating provisions in the law quantifying the minimum level of participation required by a member of cooperative annually.
- Encouraging democratic participation by members, developing effective leadership who can even influence policy formulation by government favorable to cooperatives.
- Infusing professionalism as it is key requirement for conversion of ideas/policies into tangible outcomes.
- Strengthening arrangements for ensuring sound human resources management practices in cooperatives such as recruitment, training, social security etc.
Content: –
REASONS FOR THE 97TH AMENDMENT ACT 2011:
- Cooperative sector has shown weaknesses in safeguarding the interests of the members and fulfilment of objects for which these institutions were
- For securing social and economic justice and equitable distribution of the fruits of development.
- It has been experienced that in spite of considerable expansion of co-operatives, their performance in qualitative terms has not been up to the desired level.
- The Central Government was committed to ensure that the co-operative societies in the country function in a democratic, professional, autonomous and economically sound
- On many instances, elections have been postponed indefinitely and nominated office bearers or administrators have remained in-charge of these institutions for a long time. This dilutes the accountability.
- Inadequate professionalism in management in many of the co-operative institutions has led to poor services and low productivity.
- To keep the co-operatives free from unnecessary outside interferences and also to ensure their autonomous organizational set up and their democratic functioning.
Prelims Questions of the day: –
1. GST comes under which of the following structure?
- Centralized Structure
- Decentralized Structure
- Unitary Structure
- Cooperative Federal Structure
Answer: D
Explanation:
In our Federal System both Centre and States have power to impose taxes. The division of such taxation powers is given in Union and State List under 7th Schedule. With the spirit of cooperative federalism, under GST, both Centre and States have given up taxation powers
2.The members of a Co-operative Society have, which of the following partnership?
- Unlimited liability
- Limited liability
- Joint and Several liability
- Joint liability
Answer: B
Explanation: –
Limited liability: The members of a cooperative society will have limited liability. The liability is limited to the amount of capital contributed by the member.
3. In India, the Co-operative Societies Act was passed in which year?
- 1919
- 1949
- 1904
- 1912
Answer: C
Explanation: –
In India, the Co-operative movement was started after the enactment of “The Co-operative Credit Societies Act, 1904”. On 25th March, 1904 the Bill was passed and on 26th March, 1904 it was published in the Gazette of India.
4. The Urban Credit Cooperatives are also known as
- National Banks
- Urban Cooperative Banks
- Cooperative Banks
- None of the above
Answer: B
Explanation: –
The first study of Urban Cooperative Banks was taken up by RBI in 1958-59. The Report published in 1961 acknowledged the widespread and financially sound framework of urban cooperative banks and emphasized the need to establish primary urban cooperative banks in new centers and suggested that State Governments lend active support to their development.
5.When is the report submitted by the Finance Commission available in the public domain?
- After the submission of the report to the President.
- After the approval of the President
- After it is presented to Prime Minister
- After the report is tabled in the Parliament
Answer: D
Explanation:
The report is presented to Prime Minister and is available in the public domain once it is tabled in the Parliament by the government along with an action taken report on its recommendations.
6.Who regulates the registration and other activities of a cooperative society?
- NABARD
- SBI
- SEBI
- Registrar Cooperative Societies.
Answer: D
Explanation:
The Registrar Cooperative Societies were delegated by the Lt.Governor, Delhi under Delhi Cooperative Societies Act, 2003, heads the Cooperative Department and assumes a crucial part in checking the working of Cooperative Societies enrolled under the Act.
7.Which was the first cooperative society registered under Cooperative Societies Act 1904 and in which year it was registered?
- Agricultural Credit Cooperative Society, 1905
- Grant Road Society, 1914
- Madras Cooperative Union, 1914
- None of the above
Answer: A
Explanation:
Agricultural Credit Cooperative Society of Kanaginahal town of Gadag District in Karnataka, was the principal helpful Society framed under the First Cooperative law of India.
This was dispatched on eighth July 1905 by the locals of Kanaginahal under the authority of Shri Siddanagowda SannaRamanagaowda Patil with the underlying offer capital of Rupees 2,000.
8. Which of the following former institution undermined the role of the Finance Commission in Centre-State fiscal relations?
A) State Governments
B) Zonal Councils
C) Planning Commission
D) Central Government
Answer: C
Explanation: –
The role of the Finance Commission in Centre-State fiscal relations has been undermined by the Planning Commission.
9. Which of the following ideal is promoted by the Local self-Government?
A) Secular
B) Socialism
C) Republic
D) Democratic Decentralization.
Answer: D
Explanation: –
Democratic Decentralization: Devolution of Power
Democratic decentralization is the process of devolving the functions and resources of the state from the Centre to the elected representatives at the lower levels so as to facilitate greater direct participation of citizens in governance.
10. Which article of the Directive Principle of State Policy promotes the formation of Cooperative Societies?
- Article 39(b)
- Article 44
- Article 40
- Article 43(b)
Answer: -D
Explanation: –
Article 43-B provides for the promotion of co-operative societies (DPSP) and states that the State shall endeavor to promote voluntary formation, autonomous functioning, democratic control and professional management of co-operative societies.