Civil Service Exam General Studies Indian Constitution, Local Governments Reviews
Local bodies are institutions of the local
self governance, which look after the administration of an area or small
community such as villages, towns, or cities. The Local bodies in India are
broadly classified into two categories. The local bodies constituted for local
planning, development and administration in the rural areas are referred as
Rural Local Bodies (Panchayats) and the local bodies, which are constituted for
local planning, development and administration in the urban areas are referred
as Urban Local Bodies (Municipalities).
Local Government is a State subject
figuring as item 5 in List II of the Seventh Schedule to the Constitution of
India. Article 243 G of the Indian Constitution enshrines the basic principle
for devolution of power to the Local Bodies. In the nation's journey towards
becoming an economic power, local bodies play an important part in enabling
infrastructure availability to the citizens.
The many roles that the local government
is expected to play today include:
- A Regulator, namely the administration of various acts and regulations
- A Provider, that involves providing urban services efficiently and equitably by managing its accounts effectively and efficiently.
- An Agent that takes the schemes of higher levels government to the people. This includes promotion of popular participation
- A Welfare Agency, which provides active assistance to higher level governments in the equitable distribution and delivery
- An Agent of Development, who strives for improvement in the quality of life through the augmentation of infrastructure
Rural Local Bodies:
The term ‘Panchayat Raj’ is relatively
new, having originated during the British administration. 'Raj' literally means
governance or government. Mahatma Gandhi advocated Panchayati Raj, a
decentralized form of Government where each village is responsible for its own
affairs, as the foundation of India's political system. His term for such a
vision was "Gram Swaraj" or Village Self-governance. It was adopted
by state governments during the 1950s and 60s as laws were passed to establish
Panchayats in various states. Panchayati Raj is included in the State List of
the Seventh Schedule of the Constitution. It is the States that have been
charged with the responsibility for devolution of powers to the Panchayats.
After independence, Community Development Programme was started in 1952. But because it was not
attached with the people, therefore it couldnot prove to be a success story.
People took it as a burden put on them by the government. A team, under the
leadership of Balwantrai Mehta tried to find out the cause for the failure of
this programme and came up with the inference that there should be an
organisation at village level, which would select the true beneficiaries and
implement various government programmes and schemes. This organisation would
act as the representative of all the villagers and should ensure the
development of the village as well as participation of villagers.
In this way Balwantrai Mehta tried to
achieve local self-government though Panchayats (the organisation). In 1977,
Ashok Mehta Committee was set up to review the working of Panchayats. The
committee found out that Panchayati Raj is the soul of democracy and therefore
it should be empowered with more authority. Those Panchayats which formed after
1977 are known as Second Generation Panchayats. In West Bengal, the Panchayats became more effective after
accepting the suggestions made in this report.
During the decade of 1990, it was realized
that without constitutional power, the self-government can not be fruitful.
Therefore the Central Government passed the 73rd Constitutional Amendment Act
in 1992, which became effective from 20th April 1993 (from the date of
publication in the Gazette of India). The Constitution (73rd Amendment) Act,
1992 that came into effect in April 1993 brought about major reform in local
governance in the country. The Amendment Act of 1992 contains provision for
devolution of powers and responsibilities to the panchayats to both for
preparation of plans for economic development and social justice and for implementation in relation
to twenty nine subjects listed in the eleventh schedule of the constitution.
The panchayats receive funds from three sources ie, local body grants, as
recommended by the Central Finance Commission, funds for implementation of
centrally-sponsored schemes, and funds released by the state governments on the
recommendations of the State Finance Commissions.
The Ministry of Panchayati Raj was set up
primarily to oversee the implementation of Part IX of the Constitution,
inserted by the Constitution (73r Amendment) Act, 1992, the Panchayats
Extension to the Scheduled Areas Act, 1996 (PESA), and Article 243ZD of Part
IX-A relating to District Planning Committees. Although the Panchayats have
historically been an integral part of rural life in India, these Acts have
institutionalised the Panchayati Raj Institutions (PRIs) at the village,
intermediate, and district levels as the third tier of government. The aim has
been to combine social justice with effective local governance, with an
emphasis on reservation of seats for the deprived classes of population,
including of the leadership positions.
Article 234G read with the Eleventh
Schedule of the Constitution stipulates that States may, by law, endow the
Panchayats with such powers and authority as may be required to enable the
latter to function as institutions of self-government. Such laws may also
provide for the devolution of powers and responsibilities upon Panchayats for
preparation of plans for economic development and social justice and
implementation of the schemes as may be entrusted to them. The main features of
the Constitution (73r Amendment) Act, 1992 are as under:
- Panchayat: A Panchayat means an institution (by whatever name called) of self-government constituted under article 243B of the Constitution of India for the rural areas.
- Panchayat area: A Panchayat area means the territorial area of a Panchayat;
- Village: A village means a village specified by the Governor by public notification to be a village for the purposes of this Part and includes a group of villages so specified.
- Gram Sabha: A Gram Sabha means a body consisting of persons registered in the electoral rolls relating to a village comprised within the area of Panchayat at the village level; Gram Sabha may exercise such powers and perform such functions at the village level as the Legislature of a State may, by law, provide.
- Village level panchayat: It is called a Panchayat at the village level. It is a local body working for the good governance of the village.
- Intermediate level panchayat: An Intermediate level means a level between the village and district levels specified by the Governor of a State by public notification to be the intermediate level for the purposes of this Part. Panchayats at the intermediate level may not be constituted in a State having a population not exceeding twenty lakhs.
- District level Panchayat: In the district level of the panchayati raj system, there is zilla parishad. It looks after the administration of the rural area of the district and its office is located at the district headquarters.
Composition of Panchayats: Article 243C of the Constitution states that the
Legislature of a State may, by law, make provisions with respect to the
composition of Panchayats, provided that the ratio between the population of
the territorial area of a Panchayat at any level and the number of seats in
such Panchayat to be filled by election shall, so far as practicable, be the
same throughout the State. All the seats in a Panchayat shall be filled by
persons chosen by direct election from territorial constituencies in the
Panchayat area and; for this purpose, each Panchayat area shall be divided into
territorial constituencies in such manner that the ratio between the population
of each constituency and the number of seats allotted to it shall, so far as
practicable, be the same throughout the Panchayat area. The Legislature of a
State may, by law, provide for the representation of the Chairpersons of the
Panchayat at appropriate level.
As per information provided by Ministry of Panchayati Raj there were
232855 village panchayats, 6094 intermediate panchayats and 633 district
panchayats during 2009. Following figure indicates growth in the number of
panchayats over 2001.
There were 651 districts, 585 District Rural Development Agencies
(DRDA), in 2012, whereas, there were 640 districts and 570 DRDAs in 2008.
Besides, there were 645856 villages in the country during 2012 vis a vis 640852
villages in the country as per Census 2011.
Election: The Chairperson of a
Panchayat at the village level shall be elected in such manner as the
Legislature of a State may, by law, provide; and a Panchayat at the
intermediate level or district level shall be elected by, and from amongst, the
elected members thereof. The Chairperson of a Panchayat and other members of a
Panchayat whether or not chosen by direct election from territorial
constituencies in the Panchayat area shall have the right to vote in the
meetings of the Panchayats. Article 243K of the Constitution states that the
superintendence, direction and control of the preparation of electoral rolls
for, and the conduct of, all elections to the Panchayats shall be vested in a
State Election Commission consisting of a State Election Commissioner to be
appointed by the Governor.
Reservation of seats: Article 243D of the
Constitution makes the provision for reservation of seats for Scheduled Castes
and Scheduled Tribes in every Panchayat. The Seats are reserved for the
Scheduled Castes and Scheduled Tribes in every Panchayat and the number of
seats of reserved shall bear, as nearly as may be, the same proportion to the
total number of seats to be filled by direct election in that Panchayat as the
population of the Scheduled Castes in that Panchayat area or of the Scheduled
Tribes in that Panchayat area bears to the total population of that area and
such seats may be allotted by rotation of different constituencies in a
Panchayat. Same rule is also applied for the reservation of offices of the
chairpersons at each level of the panchayats. There is also provision for
reservation of the seats including offices of the chairpersons for the women of
each category. The number of offices reserved for the chairperson is allotted
by rotation to different Panchayats at each level. State may also provide the
reservation of the seats in any Panchayat or offices of Chairperson to backward
class of citizen’s by their legislation.
Elected Representation In 2009: Information on the elected
representatives to Panchayati Raj Institutions has been provided by Ministry of
Panchayati Raj till 2009 only. As per the same, elections to the local bodies
had not been conducted in Jharkhand whereas Goa, Manipur, Sikkim, D and N
Haveli, Daman and Diu and Lakshadweep did not have intermediate Panchayat as
only 2 Tier system was in place. District Panchayat did not exist in Puducherry
whereas in NCT of Delhi Panchayati Raj System was yet to be revived. Meghalaya
Mizoram and Nagaland had traditional councils in place of village, intermediate
and district Panchayats.
In 2009, 37% of elected representatives in all the three panchayats,
i.e. gram panchayat, intermediate panchayat and district panchayat, were women.
The share of SC elected representative in gram, intermediate and district
panchayats was 18, 21 and 17 per cent respectively whereas that of ST elected
representative was 12, 7 and 11 percent respectively. Total number of elected
representative in gram panchayat declined by 3% during 2001 to 2008 whereas the
number of women, SC and ST representatives increased by 42, 29 and 18 percent
respectively.
Duration of Panchayats : Every Panchayat, unless sooner dissolved under
any law for the time being in force, shall continue for five years from the
date appointed for its first meeting and no longer.
Powers, authority and responsibilities of Panchayats : Article 243G of the
Constitution states that subject to the provisions of this Constitution, the
Legislature of a State may, by law, endow the Panchayats with such powers and
authority as may be necessary to enable them to function as institutions of
self-government and such law may contain provisions for the devolution of
powers and responsibilities upon Panchayats at the appropriate level, subject
to such conditions as may be specified therein, with respect to:
- the preparation of plans for economic development and social justice; and
- the implementation of schemes for economic development and social justice as may be entrusted to them including those in relation to the matters listed in the Eleventh Schedule.
Powers to impose taxes by, and Funds of, the Panchayats: Article 243H of the
Constitution states that the legislature of a State may, by law-
- authorise a Panchayat to levy, collect and appropriate such taxes, duties, tolls and fees in accordance with such procedure and subject to such limits;
- assign to a Panchayat such taxes, duties, tolls and fees levied and collected by the State Government for such purposes and subject to such conditions and limits;
- provide for making such grants-in-aid to the Panchayats from the Consolidated Fund of the State; and
- provide for Constitution of such Funds for crediting all moneys received, respectively, by or on behalf of the Panchayats and also for the withdrawal of such moneys.
Audit of accounts of Panchayats: Article 243J of the Constitution states
that the Legislature of a State may, by law, make provisions with respect to the
maintenance of accounts by the Panchayats and the auditing of such accounts.
Extension to the Scheduled Areas:
Parliament passed a separate legislation in 1996 as an annexure to the
73rd Amendment specifying special provisions for Panchayats in Schedule V
areas. Panchayats (Extension to the Scheduled Areas) Act, 1996 (PESA) extends
Part IX of the Constitution to the areas listed under the Fifth Schedule
subject to certain exceptions and modifications. A major function of the
Ministry of Panchayati Raj is to oversee the implementation of the provisions
of PESA by the nine States, namely, Andhra Pradesh, Jharkhand, Chattisgarh,
Himachal Pradesh, Madhya Pradesh, Gujarat, Maharashtra, Orissa, Rajasthan that
have the areas listed in the Fifth Schedule. The PESA Act enjoins the State
governments to endow Gram Sabhas and Panchayats at the appropriate level with
the power to enforce prohibition, ownership of minor forest produce, power to prevent
alienation of land and restore unlawfully alienated land, power to manage
village markets, power to exercise control over money lending, power to
exercise control over institutions and functionaries in all social sectors and
power to control local plans and resources for such plans including tribal
sub-plans. The Act prohibits Panchayats at the higher level to assume the
powers and authority of any Panchayat at the lower level.
Tribal Areas under Sixth Schedule of the Constitution:
Under the Sixth Schedule, separate provisions have been made for the
Administration of Tribal areas in Assam, Meghalaya, Tripura and Mizoram. These
provisions have been made in exercise of the enabling provisions given in
Articles 244(2) and 275(1) of the Constitution. The Sixth Schedule identifies
and designates certain tribal areas as autonomous districts. It provides for
the constitution of District Councils and Regional Councils for autonomous
areas, consisting of not more than thirty members each, of whom not more than
four persons shall be nominated by the Governor and the rest shall be elected
on the basis of adult suffrage for a term of five years. An exception has been
made in respect of the Bodo Territorial Council. The administration of an autonomous
district is to be vested in a District Council and of an autonomous region, in
a Regional Council. The Sixth Schedule endows Councils with powers of
legislative, judicial, executive, financial, collection taxes and fees,
entitlement to royalties and indication of resources to be credited to
Councils. The sixth schedule has entrusted several key powers to the Governor
of the State concerned in respect of District and Regional Councils. These
powers are classified and briefly described as (1) constituting district and
regional councils, (2) dissolving and superseding councils (3) affecting
electoral representation in the council area, (4) enlarging, diminishing powers
or reviewing decisions of District and Regional Councils, (5) Giving prior
assent to laws, rules and regulations of the District and Regional Councils (6)
arbitration, (7) Powers to appointing a Commission to ensure into the
administration of autonomous district regions. In addition to the above powers,
special powers have been conferred in respect of the Governors of Assam,
Tripura and Mizoram in certain subjects.
As per the article 243G of the constitution, the Legislature of a State
may, by law, endow the Panchayats with such powers and authority as may be
necessary to enable them to function as institutions of self-Government and
such law may contain provisions for the devolution of powers and
responsibilities upon Panchayats at the appropriate level, subject to such
conditions as may be specified therein, with respect to the preparation of
plans for economic development and social justice; the implementation of
schemes for economic development and social justice as may be entrusted to them
including those in relation to the 29 matters listed in the Eleventh Schedule.
To keep an account of Income and Expenditure of Panchayati Raj database
formats for PRIs at the district and state levels suggested by CAG has been
accepted by Ministry of Panchayati Raj and NIC has been entrusted to develop
input screens on the Ministry’s portal and link this to all states for
uploading of state-wise data.
Urban Local Bodies:
The origin of local self-government had very deep roots in ancient India.
On the basis of historical records, excavations and archaeological investigations,
it is believed that some form of local self-government did exist in the remote
past. In the Vedas and in the writings of Manu, Kautilya and others, and also
in the records of some travelers like Magasthnese, the origin of local
self-government can be traced back to the Buddhist period. The Ramayana and the
Mahabharata also point to the existence of several forms of local
self-government such as Paura (guild), Nigama, Pauga and Gana, performing
various administrative and legislative functions and raising levies from
different sources. Local government continued during the succeeding period of
Hindu rule in the form of town committees, which were known as ‘Goshthis’ and
‘Mahajan Samitees’.
Independence brought a new kind of activity in every sphere of public
life. It opened a new chapter in the history of local government in India. The
present Constitution came into force in 1950 and the local self government entered
a new phase. The Constitution of India has allotted the local self-government
to the state list of functions. Since Independence much important legislations
for reshaping of local self government have been passed in many states of
India. The constitutions of local bodies were democratized by the introduction
of adult suffrage and the abolition of communal representation. In July 1953,
the U.P. Government took a decision to set-up Municipal Corporations in five
big cities of Kanpur, Agra, Varanasi, Allahabad and Lucknow, popularly known as
KAVAL Towns. As a result, the state of U.P. adopted a new Act for Municipal
Corporations in 1959.
The Centre Council of Local Self-Government constituted by the Central
Government, has also played a significant role in labouring on reforms needed
in the various aspects of municipal government and administration. The
Rural-Urban Relationship Committee devoted itself to both functional and
financial aspects and was largely microscopic in its approach. One more report
came from another committee of the council on the service conditions of
municipal employees (1965-68). In 1985, the Central Government appointed the
National Commission on Urbanization, which gave its report in 1988. This was
the first commission to study and give suggestions on all aspects of urban
management. Apart from the contributions made by the Central Government,
committees were appointed in different states in order to improve the municipal
organizations and administration there under.
The Constitution (74th Amendment) Act, 1992 is a landmark initiative
of the Government of India to strengthen local self-government in cities and
towns. The Act stipulates that if the state government dissolves a
Municipality, election to the same must be held within a period of six months.
Moreover, the conduct of municipal elections is entrusted to statutory State
Election Commission, rather than being left to executive authorities. The
mandate of the Municipalities is to undertake the tasks of planning for
‘economic development and social justice’ and implement city/town development
plans. The main features of the 74th Constitutional Amendment are as
under:
• Committee: Committee means a Committee constituted under article
243S of the Constriction.
• Metropolitan area: Metropolitan area means an area having a population
of ten lakhs or more, comprised in one or more districts and consisting of two
or more Municipalities or Panchayats or other contiguous areas, specified by
the Governor by public notification to be a Metropolitan area.
• Municipal area: Municipal area means the territorial area of
a Municipality as is notified by the Governor.
• Municipality: Municipality means an institution of
self-government constituted under article 243Q of the Constitution.
Constitution of Municipalities: As per Article 243Q, every State should
constitute three types of municipalities in urban areas. Provided that a
Municipality under this clause may not be constituted in such urban area or
part thereof as the Governor may, having regard to the size of the area and the
municipal services being provided or proposed to be provided by an industrial
establishment in that area and such other factors as he may deem fit, by public
notification, specify to be an industrial township. The constitution of three
type of municipalities by every State are as under:
- Nagar Panchayat: Nagar Panchayat (by whatever name called) for a transitional area, that is to say, is an area in transition from a rural area to an urban area.
- Municipal Council: A Municipal Council is constituted for a smaller urban area; and
- Municipal Corporation: A Municipal Corporation is constituted for a larger urban area.
Type of Area: The Governor declares a transitional area, or smaller urban area or
larger urban area based on the population of the area, the density of the
population therein, the revenue generated for local administration, the
percentage of employment in non-agricultural activities, the economic
importance or such other factors as he may deem fit, specify by public
notification for the purposes.
Composition of Municipalities: Article 243R of the Constitution makes the
provision for the composition of Municipalities. All the seats in a
Municipality are filled by persons chosen by direct election from the territorial
constituencies in the Municipal area and for this purpose each Municipal area
shall be divided into territorial constituencies to be known as wards. The
Legislature of a State may, by law, provide the manner of election of the
Chairperson of a Municipality.
Wards Committees: Article 243S of the Constitution make the provisions for constitution
and composition of Wards Committees, etc. consisting of one or more wards,
within the territorial area of a Municipality having a population of three
lakhs or more. A member of a Municipality representing a ward within the
territorial area of the Wards Committee shall be a member of that Committee.
Where a Wards Committee consists of two or more wards, one of the members representing
such wards in the Municipality elected by the members of the Wards Committee
shall be the Chairperson of that Committee.
Reservation of seats: Article 243T makes the provisions for the reservation
of seats. Seats are reserved for the Scheduled Castes and the Scheduled Tribes
in every Municipally and the number of seats so reserved shall bear, as nearly
as may be, the same proportion to the total number of seats to be filled by
direct election in that Municipality as the population of the Scheduled Castes
in the Municipal area or of the Scheduled Tribes in the Municipal area bears to
the total population of that area and such seats may be allotted by rotation to
different constituencies in a Municipality. Not less than one-third of the
total number of seats reserved Scheduled Caste are reserved for women belonging
to the Scheduled Castes or, as the case may be, the Scheduled Tribes. Not less
than one-third (including the number of seats reserved for women belonging to
the Scheduled Castes and the Scheduled Tribes) of the total number of seats to
be filled by direct election in every Municipality are reserved for women and
such seats may be allotted by rotation to different constituencies in a
Municipality. The office of Chairpersons in the Municipalities shall be
reserved for the Scheduled Castes, the Scheduled Tribes and women in such
manner as the Legislature of a State may, by law, provide.
Duration of Municipalities: As per Article 243U of the Constitution, every
Municipality, unless sooner dissolved under any law for the time being in
force, shall continue for five years from the date appointed for its first meeting
and no longer provided that a Municipality shall be given a reasonable
opportunity of being heard before its dissolution.
Powers, authority and responsibilities of Municipalities: As per Article 243W of
the Constitution states the powers, authority and responsibilities of
Municipalities, etc. Subject to the provisions of this Constitution, the
Legislature of a State may, by law, endow:
a. the Municipalities with such powers and authority as may be necessary
to enable them to function as institutions of self-government and such law may
contain provisions for the devolution of powers and responsibilities upon
Municipalities, subject to such conditions as may be specified therein, with
respect to-
- the preparation of plans for economic development and social justice;
- the performance of functions and the implementation of schemes as may be entrusted to them including those in relation to the matters listed in the Twelfth Schedule;
b. the Committees with such powers and authority as may be necessary to
enable them to carry out the responsibilities conferred upon
them including those in relation to the matters listed in the Twelfth Schedule.
Power to impose taxes by, and Funds of, the Municipalities: Article 243X of the Constitution
states the power to impose taxes by, and Funds of, the Municipalities. The
Legislature of a State may, by law:
- authorise a Municipality to levy, collect and appropriate such taxes, duties, tolls and fees in accordance with such procedure and subject to such limits;
- assign to a Municipality such taxes, duties, tolls and fees levied and collected by the State Government for such purposes and subject to such conditions and limits;
- provide for making such grants-in-aid to the Municipalities from the Consolidated Fund of the State; and
- provide for constitution of such Funds for crediting all moneys received, respectively, by or on behalf of the Municipalities and also for the withdrawal of such moneys there from.
Audit of accounts of Municipalities: Article 243Z of the Constitution
states about the audit of accounts of Municipalities. The Legislature of a
State may, by law, make provisions with respect to the maintenance of accounts
by the Municipalities and the auditing of such accounts.
Expenditure and Income of Municipal Corporations 2011- 12: On the basis of
information available, except for Bhubaneswar which recorded almost negligible
percent increase in income and decrease in expenditure over previous year, the
increase in income and expenditure of municipal corporations ranged from minor
(up to 15% - NDMC , Brihanmumbai, Kolhapur, Chennai) to moderate(20 to 40 % -
Thane, Lucknow) to more than 100 percent annual increase (Vishakhapatnam, Varanasi
and Jaipur) in the income and expenditure during 2011-12. 42.37 Income and
expenditure of NDMC in 2011-12 has become about 3 times of the values in
2000-01 whereas that for Brihanmumbai has become about four times. In case of
Chennai municipal corporation, income during the period has become almost five
times, whereas the expenditure has become three times of the values in 2000-01.
Elections to the Municipalities: As per provisions made in Article 243ZA,
the superintendence, direction and control of the preparation of electoral
rolls for, and the conduct of, all elections to the Municipalities are vested
in the State Election Commission referred to in article 243K. Subject to the
provisions of this Constitution, the Legislature of a State may, by law, make
provision with respect to all matters relating to, or in connection with,
elections to the Municipalities.
Committee for Metropolitan planning: As per Article 243ZE of the
constitution, in every Metropolitan area, a Metropolitan Planning Committee may
be constituted to prepare a draft development plan for the Metropolitan area as
a whole. Every Metropolitan Planning Committee shall, in preparing the draft
development plan have regard to (i) the plans prepared by the Municipalities
and the Panchayats in the Metropolitan area; (ii) matters of common interest
between the Municipalities and the Panchayats, including co-ordinated spatial
planning of the area, sharing of water and other physical and natural
resources, the integrated development of infrastructure and environmental
conservation; (iii) the overall objectives and priorities set by the Government
of India and the Government of the State; and (iv) the extent and nature of
investments likely to be made in the Metropolitan area by agencies of the
Government of India and of the Government of the State and other available
resources whether financial or otherwise. The Chairperson of every Metropolitan
Planning Committee shall forward the development plan, as recommended by such
Committee, to the Government of the State.
To meet the expectations of various stakeholders, the role of the local
government is being continuously modified to keep pace with the changes in
expectation of local governance. The 74th Constitutional Amendment Act of 1993
has broadened the role of the local bodies formally. There have also been other
changes that have occurred as a result of the economic reforms on the 1990s.
Accounting Reforms as Engines of Good Governance
An integral part of the new expectations of governance is for Public Information
– without which there cannot be meaningful participation or shared
decision-making. The modern citizen expects a fair account of how the
government is faring in its job in much the same way as investors in a company
expect fair accounts of the company’s financial position and performance.
Transparent accounting and financial reporting is central to the fulfillment of
new age governance. The introduction of acceptable accounting practices and
disclosure norms are not just technical practices but the foundations for the
integrity and maturity of the government. For instance, municipal bodies in
India today are facing an unprecedented growth in the demand for urban
infrastructure and civic services. Municipal accounting systems would therefore
need to reflect not only financial transactions but also the ‘financial
performance’ of the municipal governments, which includes its ability to
achieve its developmental goals, meet its programme targets, its efficiency in
the use of resources, its financial position including income, assets and
liabilities as well as its foresight in dealing with the developmental and
financial challenges of governing the city.
It is necessary that accounting system has to satisfy the following basic
objectives (i) be accurate in capturing the underlying transactions, (ii)
enhance transparency, and (iii) be user-friendly to facilitate understanding of
the accounting statements by most users. The prevailing cash-based accounting
system in India is deficient on the dimensions of transparency and user-friendliness
and therefore it becomes necessary to reform the accounting system.
The story of municipal accounting reforms in India is barely two decades
old. The period between 1981 and 1991 can be termed the first phase of
municipal accounting reforms in India. The second phase of the
municipal accounting reforms can be traced from 1990 to 1995. The third
phase presents a sudden wave of accounting reforms across the country
since 1998. This phase has also witnessed broader institutional developments in
municipal accounting reform. Most notably, the development of a technical guide
for accounting and financial reporting by urban local bodies by the Institute
of Chartered Accountants of India (ICAI) in 2000 and formulating the
recommendation of the 11th Finance Commission that Comptroller and Auditor
General of India (CandAG) should audit accounts of urban local bodies. The
Supreme Court of India in the year 2001, while hearing a Public Interest
Litigation (PIL) relating to the functioning of ULBs, opined that urban local
bodies in India should take immediate steps to get their accounts converted
from cash basis to accrual basis.
The proposed system is an improvement over the present cash based
system and not a mere replacement of the existing system. The appropriate
accounting system provides all the information that is available in the present
dispensation, besides providing such additional information which will make the
accounting records more complete from a users’ perspective. In a nutshell, the
proposed accounting system supplements the cash accounting system, and does not
supplant it. While cash accounts serve the purpose of legislative control over
public finances, an accrual system is helpful in expanding the efficacy of
fiscal management. Many local bodies still follow the cash based accounting system.
The Government has been alive to the fact that many cities are shifting to
accrual based accounting systems, driven by the need for better transparency,
the need to make corporations more accountable, and the need to make accounting
statements more useful to Governments and other users.
Source of information on Local Bodies : Ministry of Panchayati Raj maintains information on
Panchayati Raj institutions viz gram panchayats, district panchayats etc . the
information includes number of panchayati Raj institutions, number of elected
representatives and the constitution of elected representatives according to
various categories – sex wise , SC/ST etc. The information w.r.t. functioning
viz income and expenditure of various urban local bodies – municipal corporations
is maintained by respective municipal corporations.
Civil Service Exam Points for General Studies, Public Administration, Political Science, Indian Constitution
Ø
G. V. K. Rao Committee (1985) remarked this on
account of bureaucratization of development programme.
Ø
Central Council for Local Self Government was
set up under Article 243 of the constitution.
Ø
L.M. Singhvi Committee in 1986 felt the need of
constitutional sanction to Village Panchayats.
Ø
Since seventy third amendment act created Part
IX Act 243-244 for Panchayats, hence it gave constitutional status to
Panchayats, regular election and reservation of seats to women are mandatory
conditions.
Ø
District Boards and Port Trusts are not a form
of local bodies in India.
Ø
The existence of two important functionaries at
the district level, namely the Chairman of the Zila Parishad and the Collector
and District Magistrate has resulted in conflict of authority.
Ø
Council and its Head Mayor is a cabinet form at
local level just Chief Minister/Prime Minister and its cabinet.
Ø
Zila Parishad is a democratic body. Only the
popularly elected persons can be the members of this body. Health-care
Specialists are not elected persons. Hence eliminate this option.
Ø
Panchayati Raj bodies do provide all the inputs
needed for development.
Ø
Seventy third Act made the election of
Panchayati Raj mandatory; Democratic Decentralization was recommended by B.R.
Mehta Committee; Seventy fourth Amendment inserted IX A containing articles 243
P to 243 ZG, and the twelfth schedule. It provided for 3 types of
municipalities with the devolution of powers and responsibilities by state
legislature. Block Committee is intermediate level between Grain Sabha and Zila
Parishad.
Ø
Seventy third Constitution Amendment Act says
that mode of election of chair-person at village level is left to the states as
they may decide. It may be direct or indirect. Hence eliminate the option 3 and
select the answer accordingly.
Ø
The laws prescribed by State Government as Local
Government is State subject. So there is no uniformity.
Ø
Among sources of revenue of Urban local bodies
grants is the most important source. Taxes also contribute significantly such
as toll tax.
Ø
Devolution of functions motioned in Eleventh
schedule of constitution by the State Government. This schedule was created by
Seventy third Amendment Act. Same act created State Finance Commission. It also
credited a separate Election Commission.
Ø
IRDP is holistic in nature so it cannot be one
dimensional in nature
Ø
Multiplicity of Authority means more specific
agency and having the element of autonomy. (R) explains this that the system is
new and not easily understandable by common hence adds to the problem.
Ø
Increased Government regulation is regarding
urban development should check the growth of slumps.
Ø
Quantum of money supplied by State Government to
local bodies from State Government is based on the recommendation of State
Finance Commission. Which was created by Seventy third Amendment Act.
Ø
The Directorates of local bodies in States
supervise the working of Municipal Corporations.
Ø
Reservation of seats to the backward classes is
not provided by Seventy fourth Amendment Act. All other three provisions are there.
So eliminate point 3 and select the correct answer.
Ø
Council Mayor is a form of Urban governance in
India. There is a counsil and counsilers are elected. They elect one Mayor for
Municipal Corporation in India.
Ø
Local Finance enquirey committee (1949-51). The
committee of Ministers for the argumentation of finances and (1963).
Rural-urban relationship committee (1963-66). National commission on
Urbanization (1985-1988).
Ø
Nagar Palika Bill was introduced during the
Prime Ministership of Rajiv Gandhi. But it could not be passed in both the
houses, Lateron in 1992 (Seventy fourth Amendment Act) it was created.
Ø
It was L.M. Singhvi committee which for the
first time felt the need of constitutional sanction to village panchayats. L.M.
Singhvi Committee was created in 1986.
Ø
State Finance Commission is appointed under
Article 243 I. State Finance Commission makes the recommendation to the
governor of state regarding the pattern of distribution of States Tax Revenue
between the State Government and local bodies.
Ø
Empowerment of women is must and reservation of
seats for women in local government is the step to advice the same.
Ø
The Chief Minister of a State is the head of the
Council of Ministers of that State. Since Chief Minister enjoys the majority
and is responsible to legislature he is head of the council.
Ø
In Seventy third Constitutional Amendment Act,
under Article 243 State Finance Commission was created. Seventy fourth
amendment Act is related to Urban Govt. i.e. Municipal Council, Balwant Rai
Mehta Committee discussed Democratic Decentralization. L.M. Sanghvi Committee
(1986)¾Constitutional
Status to the Panchayati Raj.
Ø
In India Local Government upholds the principle
of collective responsibility and provides a plural political executive.
Ø
Village Panchayats are not responsible for
higher vocational education. Hence eliminate this point and choose the correct
answer.
Ø
The Constitution of India now provides a
mechanism for regular flow to Panchayati Raj Institutions. The Panchayati Raj
Institutions have been greatly handicapped in the perform of their assigned
duties by paucity of funds. Paucity of fund for Panchayati Raj Institutions has
been a problem in their functioning. This was the reason that Constitution of
India provides for fund flow to Panchayati Raj Institutions (But still it is
not enough).
Ø
Sales Tax is the State subject and is collected
by State Government by local bodies. Hence remove this and select the correct
answer.
Ø
Seventy third Amendment Act has no relation with
judicial power decentralization. Hence drop this point and choose the correct
answer.
Ø
Single unified authority is not the feature of
Seventy fourth amendment act. Drop this point and select the correct answer.
Ø
Salaries of Municipal employees are not
increased upto that level. There are other constraints responsible for
financial presence.
Ø
The efforts of Mahatma Gandhi were first given
place in Directive Principles of State Policy in the constitution under Article
40, lateron through seventy third Amendment Act 1992 it was implemented.
Ø
Ashok Mehta Committee recommended the
establishment of Mandel Panchayat. This committee also recommended the Nyaya
Panchayat with a qualified judge.
Ø
Rural-Urban Relationship Committee recommended
the integration of Union State and Local Finances.
Ø
Jawarhar Gram Samridhi Yojana as the name
suggest is designed for rural development. Hence it has to be implemented at
Village Panchayat level.
Ø
All the four points mentioned in this question
signify people’s participation in the context of grass root democracy.
Ø
Urban local self government is mentioned in
Seventh schedule under state list. Do not confused with twelfth schedule
because in twelfth schedule functions of Urban local self government are
mentioned.
Ø
All the four points given in this question are
of revolutionary features of Seventy third Amendment. These features were
present earlier also but through Seventy third amendment in these functions of
the constitution status.
Ø
Responsive Government would require complete
decentralization of delivery of services through fully empowered elected Local
Government bodies consistent with the spirit of the Seventy third and Seventy
fourth Constitutional Amendments.
Ø
It is the State Government under the scheme of
Division Local Government is the State subject.
Ø
In Madhya Pradesh the power of recall is vested
in Gram Sabha i.e., to recall members of Village Panancyat.
Ø
State Government’s administrative control over
municipalities does not include the power to decide over borrowing.
Ø
It was G.V.K. Rao Committee which recommended
the separation of regulatory and development functions at the District level.
The committee was appointed by planning commission in 1985.
Ø
Seventy third Constitution Amendment says that
the reservation for the Other Backward Classes in Panchayati Raj institutions
is left to the state’s discretion. So drop the point I and choose the correct
answer.
Ø
Part IX of the Constitution deals with
Panchayats. This part has been inserted through the Seventy third Amendment
Act.
Ø
Reservation for Scheduled Castes in Panchayats
is not applicable in the state of Arunachal Pradesh.
Ø
The Recall provision to renew the elected office
bearer from the Local Government institution has been executed in Madhya
Pradesh. This is the most possible answer.
Ø
Direct Election of the Chair-person of
Municipality is not provided by Seventy fourth Constitutional Amendment Act. So
drop point 4 and choose the correct answer.
Ø
Under Article 40 in Directive Principles in the
constitution is mentioned. Provision was their already. Afterwards Seventy
third Act was passed which opened the ways for democratic decentralization.
Ø
Local bodies in India do have the constitutional
status. Through Seventy third and Seventy fourth Amendment Act they have been
given the constitutional status.
Ø
Legislature of state may by making law, provide
the grant-in-aid to Panchayat from Consolidated Fund of State.
Ø
Tree-tier structure and Reservation of the seats
to women are the features of Seventy third Act, So drop point 3 and 4 and
choose the answer.
Ø
Eleventh schedule of constitution relating to
Panchayati Raj contains 29 items. This schedule was added by Seventy third
Amendment Act.
Ø
No constitutional obligation regarding the
maintenance of Public Distribution System has been made.
Ø
Eleventh and Twelfth schedule has been added by
Seventy third and Seventy fourth Amendment Act for the purpose.
Ø
A new panchayat so constituted shall continue
for the remaining period of that term.
Ø
Chair-person of Panchayat shall be elected as
the state may provide.
Ø
Ashok Mehta Committee recommended the two tier
system one at Mandal level and another at District level.
Ø
In 1977, under the Chairmanship of Ashoka Mehta
the committee on Panchayati Raj was formed.
Ø
Lord Rippon is hailed as the ‘father of local
self-government’.
Ø
Cantonment Boards do not have constitutional
foundation. It is governed by Contonment Act 1924.
Ø
Municipal area means the territorial area of
municipality as is notified by Governor of the State.
Ø
District Planning Committee came into existence
under Article 243-ZD.
Ø
It is District Planning Committee which
consolidate the plans prepared by Panchayats and Municipalities in a district.
Ø
Under Article 243 (G) and 243 (H) State
Legislature delegates the powers and functions to the Pancahyats.
Ø
Seventy third and Seventy fourth Constitutional
Amendments do not apply to Meghalaya.
Ø
Article 243 (S) in its clause (1) says that
there shall be constituted ward committee consisting one or more wards within
the territorial area of Municipality having a population of three lacs or more.
Ø
Balwant Rai Mehta Committee which was constituted
in 1957 and in its report recommended people’s participation in the programmes.
Ø
Seventy fourth Amendment Act does not apply to
Scheduled areas and Tribal areas governed by Article 244 (1) and (2). The act
is silent on the manner of election of the chair-person of a municipal
corporation.
Ø
The first Municipal Corporation was setup in
Madras in 1687-88.
Ø
No expansion of elected non-officials took place
official control was maximum. Drop point 3 and 4 and choose the correct answer.
Ø
Ashok Mehta Committee was appointed in 1977 and
it gave the recommendation that PRIs elections should be contested on political
party basis.
Ø
A Metropolitan Committee can be set up in an
area having population above 10 lacs.
Ø
No Vigilance Committee is constituted in order
to keep a watch on panchayats.
Ø
Non-tax revenues of municipal bodies are fees
and fines, income from enterprises. Octroi and toll are the taxes.
Ø
Urban local government cannot apply for loans
from World Bank and Union Government also.
Ø
Elections of the chair-person at the village
shall be elected in such a manner as the state legislature determines.
Ø
Reservation for Other Backward Classes and
provision of Nagar Panchayats are not the common compulsory provisions of the
Seventy third and Seventy fourth Amendment Act. Eliminate the point 2 and 4.
Ø
Providing reservation to the backward classes
has been left to the will of the state government.
Ø
State Finance Commission is constituted in
accordance with the Article 243-I in the Constitution of India.