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State PCS




Mains Marathon

  • 01 Jul 2025 GS Paper 2 Polity & Governance

    Day 14: “Decentralisation of governance is effective only when backed by functional autonomy, financial empowerment, and accountability.” In this context, evaluate the effectiveness of the 73rd and 74th Constitutional Amendments in empowering local governments. (250 words)

    Approach

    • Briefly introduce the purpose of the 73rd and 74th Constitutional Amendments in the context.
    • Evaluate the effectiveness of these Constitutional Amendments.
    • Suggest a way forward.
    • Conclude with a scholarly remark.

    Introduction

    Decentralisation is the cornerstone of participatory democracy. Through the 73rd and 74th Constitutional Amendments (1992), India institutionalised local self-governance by giving constitutional recognition to Panchayati Raj Institutions (PRIs) and Urban Local Bodies (ULBs). While these reforms laid the foundation for grassroots empowerment, their success is conditional on functional autonomy, financial empowerment, and accountability mechanisms.

    Body

    Functional Autonomy:

    • The Eleventh and Twelfth Schedules enumerate 29 and 18 functions for PRIs and ULBs, respectively.
    • However, many states have not fully devolved these subjects, retaining control via state-level departments and parallel agencies.
    • States like Kerala and Karnataka have devolved substantial responsibilities, while others lag, leading to role ambiguity and dependence on the state executive.

    Financial Empowerment:

    • PRIs and ULBs have limited revenue-generation powers, with property tax and user charges as primary sources.
    • Dependence on State Finance Commission (SFC) recommendations and grants-in-aid from the Centre and states continues.
    • The 15th Finance Commission allocated ₹4.36 lakh crore to local bodies for 2021–26. However, utilization remains low due to capacity gaps and procedural hurdles.
    • Many SFCs are either not constituted on time or their recommendations are not implemented effectively.

    Accountability and Representation

    • The amendments mandated Gram Sabhas and Ward Committees to enhance transparency and citizen participation.
    • In practice, these bodies often remain ineffective, marred by poor attendance, politicization, and limited awareness.
    • Reservation of seats for women (33%, extended to 50% in many states) and SC/STs has boosted representation but not necessarily effective participation, owing to limited training and autonomy.

    Way Forward:

    • Mandatory Devolution Roadmaps: States should adopt activity mapping to ensure clear allocation of functions, functionaries, and funds (3Fs) to local bodies.
    • Empowered State Finance Commissions: Regular constitution and implementation of SFC recommendations with independent secretariats and legal backing.
    • Capacity Building: Continuous training for elected representatives and local staff in planning, budgeting, and digital governance.
    • Digital Integration: Expansion of platforms like e-Gram Swaraj, Audit Online, and SVAMITVA for transparency and accountability.
    • Legal and Political Will: Enacting model Panchayat and municipal laws aligned with the spirit of the amendments and reducing state control.

    Conclusion:

    As political theorist Dr. Niraja Gopal Jayal aptly remarked:

    “Decentralisation in India has not failed due to poor design, but due to poor implementation and lack of trust in local capacities.”

    To fulfil the vision of Gandhian Gram Swaraj, India must move beyond symbolic devolution and commit to real autonomy, adequate finance, and citizen-centric governance at the grassroots. Only then can decentralisation become a genuine vehicle of inclusive democracy and development.

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