Chapter 8 Local Governments

In a democracy, it is essential to have elected governments not just at the central and state levels, but also at the local level to manage local affairs. This chapter examines the structure, importance, and functions of local governments in India and the changes brought about by constitutional amendments. After studying this chapter, you will understand the significance of local government, the provisions of the 73rd and 74th amendments, and the functions of local government bodies.

Why Local Governments?

Local government refers to the level of government closest to the common people, typically operating at the village and district levels. It deals with the day-to-day life and problems of ordinary citizens. The principle behind local government is that local knowledge and interests are crucial for effective democratic decision-making and efficient, people-friendly administration. The proximity of local government to the people allows for quicker and more cost-effective problem-solving.

Examples illustrate the importance of local governments. Geeta Rathore, a woman Sarpanch, demonstrated effective local leadership by harnessing community efforts for village development (renovating water tanks, building a school, roads, fighting domestic violence, promoting environmental awareness). The Gram Panchayat of Vengaivasal village successfully fought a court battle against the state government's attempt to acquire village land without their consent, highlighting the potential for local governments to protect local interests and rights.

Both these stories reflect a broader transformation occurring in India since 1993 when local government institutions were given constitutional status. Strong local governments enhance democracy by ensuring meaningful participation and accountability. The story of Geeta Rathore exemplifies committed participation. The actions of Vengaivasal Gram Panchayat show a mission to ensure accountability. Local government is the level where citizens can most directly participate in decisions about their lives, needs, and development.

In a democracy, tasks that can be performed locally should ideally be handled by local people and their representatives, as they are more familiar with local issues and their actions have a direct impact on daily life. Strengthening local government is seen as strengthening democratic processes itself, bringing governance closer to the grassroots.

Mahatma Gandhi strongly advocated for decentralization of power and believed in strengthening village panchayats as a means of effective decentralization and people's participation in development. He envisioned self-governing village republics as the foundation of independent India, where independence would begin at the bottom and power would be decentralized upwards, with villages managing their own affairs and cooperating with others.

The question about male members harassing women Sarpanches or unhappiness when women take responsibility highlights that while constitutional provisions empower women, social issues and power struggles at the local level can create challenges. It suggests that formal legal changes need to be supported by social change and vigilance to ensure women can exercise their roles effectively.

The concept of whether there could only be local governments with a national coordinating body reflects Gandhian ideas of village republics and decentralization, which were debated during the framing of the Constitution.

Check your progress questions prompt consideration of how local government strengthens democracy (meaningful participation, accountability, bringing governance closer to people) and how the Tamil Nadu government should have acted in the Vengaivasal case (respected Panchayat's constitutional status and consulted them).

Growth Of Local Government In India

Local government institutions in India have a long history, believed to have existed since ancient times as village assemblies ('sabhas') or Panchayats. In modern times, elected local government bodies were introduced after 1882, with initiatives by Lord Rippon (Viceroy), who created 'local boards'. The Indian National Congress later pushed for making these bodies more effective. Following the Government of India Acts of 1919 and 1935, village panchayats were established in some provinces.

During the freedom movement, Mahatma Gandhi championed decentralization and strengthening village panchayats as instruments for effective decentralization and participatory democracy. National leaders were concerned about the concentration of power at the center and saw decentralization as a key aspect of independence, ensuring decision-making and administration were brought closer to the people.

When the Constitution was drafted, the subject of local government was placed in the State List, meaning States have the power to legislate on it. It was also included in the Directive Principles of State Policy (Article 40), which encouraged states to organize village panchayats but did not make it legally enforceable (non-justiciable and advisory). Some argue that local government did not receive adequate importance in the Constitution due to factors like the strong unitary inclination during Partition turmoil and concerns about factionalism and caste divisions in rural society (voiced by some like Dr. B.R. Ambedkar, who questioned if faction-ridden rural society was ready for local self-governance). However, the importance of people's participation in development was widely accepted.

Local governments in independent India saw some efforts before the major constitutional amendments. The Community Development Programme (1952) aimed to promote local participation. A three-tier Panchayati Raj system was recommended for rural areas. Some States (Gujarat, Maharashtra) adopted elected local bodies around 1960, but these often lacked sufficient powers, functions, and financial autonomy, remaining dependent on state/central governments. In many states, elected bodies were not consistently established, or elections were indirect or postponed, leading to governance by government officers instead.

After 1987, a comprehensive review of local government functioning led to the P.K. Thungon Committee recommendation (1989) for constitutional recognition for local government bodies. This included recommendations for mandatory periodic elections, specific functions, and dedicated funds.

The statement "I don’t know about the past, but I suspect that a non-elected village panchayat would naturally be dominated by the village elders, the rich and men from upper strata." reflects concerns about traditional power structures influencing non-elected local bodies, suggesting that elections are necessary to ensure broader representation and counter dominance by entrenched social groups.

Check your progress questions cover objections to local governments (Nehru's concern about localism/threat to unity, Ambedkar's concern about rural factionalism/casteism), pre-1992 constitutional provisions (State subject, Directive Principle, non-justiciable), and States that had local government before 1992 (e.g., Gujarat, Maharashtra).

The question "Why are people afraid of factionalism at the village level when all the political parties and organisations or even my class has factions? Are groups and factions always so bad?" highlights that groups and differences of opinion are natural in any collective, but the concern about village-level factionalism might stem from fears that it could lead to intense, personalized conflicts hindering cooperation for development or perpetuating caste/social divisions, potentially undermining democratic functioning at the local level.

The quote by Ananthasayanam Ayyangar reflects the view that villages need training in self-governance and reform to truly become democratic units.

73rd And 74th Amendments

In 1989, the central government proposed constitutional amendments to strengthen local governments, aiming for uniformity in structure and functioning across India. In 1992, the 73rd and 74th constitutional amendments were passed by Parliament, coming into force in 1993. The 73rd Amendment applies to rural local governments (Panchayati Raj Institutions or PRIs), and the 74th Amendment applies to urban local governments (Nagarpalikas).

Since local government is a State subject, States had to amend their own laws within a year to conform to the constitutional amendments, bringing about consistency in local government structures nationwide.

The statement "If I understand this correctly, the centre forced local government reforms on the States. This is funny: you adopt decentralisation through a centralised process!" humorously points out the paradox of the central government mandating decentralization reforms for the states. This highlights the unique nature of cooperative federalism in India, where the center can legislate to ensure a minimum standard of decentralization across the country, even on subjects primarily belonging to states.

Three Tier Structure

The 73rd Amendment mandated a uniform three-tier structure for Panchayati Raj Institutions in rural areas across all States (although smaller States are exempted from having the intermediary level). This structure is:

1. Gram Panchayat: At the village level (or group of villages).
2. Mandal/Block/Taluka Panchayat: At the intermediary level (between village and district).
3. Zilla Panchayat: At the district level (covering the entire rural area of the district).

The amendment also made the creation of a Gram Sabha mandatory for each Panchayat area. The Gram Sabha comprises all adult members registered as voters in the Panchayat area. Its role and functions are defined by State legislation. The question "Does a Gram sabha mean the democratic forum of the entire village? Do Gram sabhas actually meet regularly?" raises concerns about the practical functioning and inclusiveness of Gram Sabhas, suggesting that their effectiveness as true democratic forums depends on active participation and regular meetings, which may not always happen.

Elections

The amendment mandated direct elections for members at all three levels of Panchayati Raj institutions. Each body has a term of five years. A crucial provision is that if a Panchayat body is dissolved by the State government before its term ends, fresh elections must be held within six months of the dissolution. This ensures the continuity of elected local bodies and prevents indefinite delays in elections, a common issue before the amendment.

Reservations

The 73rd Amendment includes significant provisions for reservations to ensure representation for disadvantaged groups and women:

• Women: At least one-third of the positions in all Panchayati Raj institutions (at all three levels) are reserved for women.
• Scheduled Castes (SC) and Scheduled Tribes (ST): Seats are reserved for SCs and STs at all three levels in proportion to their population in the respective Panchayat area.
• Other Backward Classes (OBCs): States have the option to provide reservations for OBCs if they deem it necessary.

Importantly, these reservations apply not only to the positions of ordinary members but also to the positions of Chairpersons (Sarpanch, Adhyaksha) at all three levels. This ensures that leadership positions are also reserved for women, SCs, and STs proportionally. For instance, a seat might be reserved for a woman who must also belong to a Scheduled Caste or Tribe. The question "We read in the chapter on Elections that the bill for reservations for women in the Assemblies and in the Parliament could not be passed. How come women’s reservations in local bodies were accepted so easily?" highlights a notable difference in political will regarding reservations for women in different levels of government, suggesting perhaps that resistance was stronger at higher levels of power, or that the need for grassroots participation was more widely recognized.

Transfer Of Subjects

To empower local governments, the 73rd Amendment identified twenty-nine subjects from the State List and included them in the Eleventh Schedule of the Constitution. These subjects, primarily related to local development and welfare functions, are to be transferred by the State governments to the Panchayati Raj institutions. This constitutional provision enables States to devolve powers to local bodies. However, the actual transfer of powers for these 29 subjects depends on legislation by each State. Each State government decides which and how many of these subjects will be assigned to the Panchayati Raj institutions within its territory (Article 243G allows States to endow Panchayats with powers and authority regarding these matters). The question "Why are subjects only from State list to be transferred? Why can’t we transfer some subjects from the Union List also?" reflects the constitutional division of powers in India; subjects in the Union List are under the exclusive domain of the central government, and the framework of local government is primarily within the State's jurisdiction.

Some subjects listed in the Eleventh Schedule cover crucial areas for rural development and welfare, such as agriculture, minor irrigation, rural housing, drinking water, roads, rural electrification, education (primary/secondary), health/sanitation, poverty alleviation, women and child development, social welfare, and the public distribution system.

The provisions of the 73rd Amendment were not automatically applied to tribal areas in many States. A separate act, the Provisions of the Panchayats (Extension to Scheduled Areas) Act, 1996 (PESA), was passed to extend Panchayat system provisions to these areas. PESA acknowledges and protects the traditional customs of Adivasi communities in managing their common resources (forests, water). It grants more powers to Gram Sabhas in these areas, requiring elected village panchayats to obtain the consent of the Gram Sabha in many matters, ensuring that local traditions of self-governance and resource management are protected while introducing elected local bodies, consistent with diversity and decentralization principles.

State Election Commissioners

The 73rd and 74th Amendments require the appointment of a State Election Commissioner by the State government. This autonomous office is responsible for conducting elections specifically to Panchayati Raj institutions and urban local bodies in the State. Before the amendment, state administration under state government control handled these elections. The State Election Commissioner is independent of the Election Commission of India and has the authority to ensure free and fair local elections.

State Finance Commission

To ensure the financial viability of local governments, the 73rd and 74th Amendments mandated the appointment of a State Finance Commission by the State government once every five years. This commission reviews the financial position of local governments (rural and urban) in the State and recommends the distribution of revenues between the State government and local governments, and between rural and urban local governments. This provision aims to ensure that local bodies receive adequate funds and that their financial allocation is not solely a political decision by the State government.

The question "State governments themselves are poor. In the last chapter we read that they ask for money from the Central government. How can they give money to the local government?" raises a practical challenge to effective decentralization. While State Finance Commissions can recommend revenue distribution, the actual financial capacity of local governments is limited by the financial health of the State government, which itself may be dependent on central grants, highlighting the fiscal constraints on decentralization in India.

Implementation Of 73rd And 74th Amendments

All States have enacted legislation to implement the provisions of the 73rd and 74th Amendments. Within a decade of their enactment (1994-2004), most States held at least two rounds of elections for local bodies, and some even three, demonstrating the regular conduct of local elections mandated by the amendments. The sheer scale of local government in India post-amendments is immense: over 600 Zilla Panchayats, about 6,000 intermediary Panchayats, 2,40,000 Gram Panchayats, over 100 City Corporations, 1400 Town Municipalities, and 2000+ Nagar Panchayats. More than 32 lakh members are elected to these bodies every five years, significantly increasing the number of elected representatives compared to State Assemblies and Parliament.

The amendments have created uniformity in the structure of Panchayati Raj and Nagarpalika institutions nationwide, establishing a platform for people's participation in government at the local level.

The reservation for women (at least one-third positions) has significantly increased women's presence in local bodies, including leadership roles (Sarpanch, Adhyaksha, Mayor). Millions of women have been elected, gaining political experience and sometimes bringing new perspectives and sensitivity to local discussions. While initially, some women representatives may have been proxies for male family members, their presence and participation are generally seen as empowering women and increasing their understanding of politics.

Reservations for SCs and STs are constitutionally mandated, and many States also provide reservations for OBCs, significantly altering the social profile of local bodies and making them more representative of local social reality. However, this has sometimes led to tensions as dominant social groups resist giving up power to newly empowered groups.

While 29 subjects were listed for transfer to rural local governments (12th Schedule for urban), the actual transfer of powers and functions has varied. Many States have not fully devolved powers for all assigned subjects, limiting the autonomy and effectiveness of local bodies. This raises concerns that the extensive election process might be somewhat symbolic if local bodies lack real power to choose welfare programs or allocate resources, operating mainly as implementing agencies for state/central schemes.

Local bodies often have very limited funds of their own and are heavily dependent on State and central government grants. This financial dependence undermines their capacity for independent operation and effective functioning. The question "So, the law is good but it is mostly on paper. Is this what they call the gap between theory and practice?" reflects concerns that the constitutional provisions for local government are not always fully realized in practice due to issues like limited devolution of powers and financial dependence.

An image featuring a flag or banner with a slogan or symbol related to local government, suggesting the expectations and aspirations people have for these institutions.

The image with the slogan "We are the government here in the village!" on a flag symbolizes the aspirations of village communities for local self-governance and empowerment through Panchayati Raj, highlighting their desire for meaningful control over local affairs, as envisioned by the constitutional amendments.

A photograph related to local governance in a village, perhaps showing people gathered for a Gram Sabha meeting or interacting with local representatives, suggesting the presence of 'local Sarkar' (local government).

Conclusion

The experience with local governments in India suggests that they often continue to primarily function as agencies implementing programs from higher levels of government. Empowering local government means achieving genuine decentralization of power, where people at the village and urban levels have the authority to decide on policies and programs relevant to their areas. Decentralization and giving more power to the people are key aspects of democracy. The laws regarding local governments, particularly the 73rd and 74th amendments, represent an important step towards further democratization in India.

However, the true success of democracy lies not just in having legal provisions but in their effective implementation and practice. Despite challenges like limited devolution of powers and financial constraints, the amendments have significantly increased people's representation and created structures for grassroots participation. The effectiveness of local governments in realizing the democratic potential of decentralization depends on addressing the gaps between constitutional provisions and actual practice.

The example of local governments in Bolivia (Popular Participation Law 1994) illustrates a system of democratic decentralization with popularly elected mayors and councils, automatic fiscal transfers based on population, and local control over health/education infrastructure, providing a different model for financial and functional decentralization.

Bolivian local governments have specific powers for local infrastructure (health, education) and their maintenance, funded partly by local taxes but largely by fiscal transfers from national tax collections (20% distributed on a per capita basis), ensuring a stable budget for local units.

Exercises

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