Decentralization and Rural Governments in India

Decentralisation in India refers to the transfer of authority, responsibility, and resources from higher levels of government to lower levels, enabling local bodies to take decisions affecting their communities. It is a key principle of democratic governance, intended to bring administration closer to the people, promote local participation, and ensure equitable development. In rural India, decentralisation has been institutionalised primarily through the Panchayati Raj System, which serves as the foundation of rural self-government.

Concept and Significance of Decentralisation

Decentralisation means the systematic distribution of powers and functions from the Union and State Governments to local governments. It aims to empower people at the grassroots level to plan, implement, and monitor their own developmental activities.

Key Features of Decentralisation

• Devolution of Power: Transfer of administrative, financial, and decision-making powers to local institutions.
• Democratic Participation: Involvement of citizens in governance and development processes.
• Accountability and Transparency: Local bodies are directly answerable to the people they serve.
• Responsive Governance: Enables policies and programmes to be designed according to local needs.
• Capacity Building: Encourages leadership development and civic responsibility at the community level.

In India, decentralisation is both a constitutional and developmental necessity, given the country’s vast size, diversity, and rural predominance.

Historical Background

The idea of local self-government in India is not new. It can be traced back to ancient village panchayats which managed local affairs. However, the modern structure evolved gradually:

• 1882: Lord Ripon’s Resolution on Local Self-Government is often regarded as the “Magna Carta” of local democracy in India, advocating elected local bodies.
• 1950: The Constitution of India envisaged decentralised governance through the Directive Principles of State Policy (Article 40), which directs the state to organise village panchayats as units of self-government.
• 1957: The Balwant Rai Mehta Committee recommended a three-tier Panchayati Raj system for democratic decentralisation.
• 1959: Rajasthan became the first state to adopt the Panchayati Raj model, followed by Andhra Pradesh.
• 1992: The landmark 73rd Constitutional Amendment Act gave constitutional status to Panchayati Raj Institutions (PRIs), making decentralisation a mandatory feature of governance.

The 73rd Constitutional Amendment Act, 1992

The 73rd Amendment Act, which came into effect on 24 April 1993, institutionalised Panchayati Raj as a three-tier system of rural local governance. It added Part IX to the Constitution and the Eleventh Schedule, containing 29 subjects to be devolved to local bodies.

Objectives

• To promote democratic decentralisation.
• To ensure effective participation of people in decision-making.
• To establish a system of self-government at the village, intermediate, and district levels.

Three-Tier Structure of Panchayati Raj

1. Gram Panchayat (Village Level):
   • The basic unit of local governance, covering one or more villages.
   • Headed by a Sarpanch, elected directly by the Gram Sabha.
   • Responsible for local development, sanitation, water supply, and welfare programmes.
2. Panchayat Samiti (Block or Intermediate Level):
   • Functions as a coordinating body between Gram Panchayats and the Zila Parishad.
   • Plans and implements schemes for the block area.
3. Zila Parishad (District Level):
   • Apex body at the district level.
   • Coordinates development plans across blocks and oversees resource allocation and monitoring.

Gram Sabha

The Gram Sabha is the cornerstone of rural democracy under the 73rd Amendment. It comprises all registered voters of a village and acts as the deliberative and participatory forum for approving plans, budgets, and social audits.

Constitutional Provisions

• Articles 243 to 243O: Define the structure, composition, powers, and functions of Panchayati Raj Institutions.
• Reservation: One-third of all seats and offices are reserved for women, and proportional representation is provided for Scheduled Castes (SCs) and Scheduled Tribes (STs).
• Elections: Held every five years, supervised by the State Election Commission.
• Finance: The State Finance Commission recommends distribution of financial resources between the state and local bodies.
• Eleventh Schedule: Lists 29 functional areas, including agriculture, health, education, rural housing, and poverty alleviation.

Functions and Responsibilities of Rural Governments

The Panchayati Raj Institutions (PRIs) are entrusted with responsibilities for local development and welfare.

Major Functions

• Agricultural Development: Extension services, minor irrigation, soil conservation, and crop planning.
• Rural Infrastructure: Construction of roads, culverts, markets, and community halls.
• Education and Health: Managing primary schools, health centres, and family welfare programmes.
• Social Justice: Implementation of welfare schemes for weaker sections, SCs, and STs.
• Water and Sanitation: Ensuring clean drinking water, rural sanitation, and waste management.
• Poverty Alleviation: Execution of schemes like MGNREGA, PMAY-G, and NRLM.

Financial Decentralisation

Fiscal empowerment is essential for functional autonomy. The State Finance Commissions (SFCs), established every five years, recommend:

• The distribution of revenues between state and Panchayats.
• Measures to improve the financial position of Panchayats.
• Grants-in-aid from state governments.

Additionally, the Central Finance Commissions have consistently provided funds to strengthen PRIs and enhance their capacity for local development.

Achievements of Decentralised Rural Governance

1. Democratic Empowerment: Over three million elected representatives across 2.6 lakh Panchayats make it the largest democratic network in the world.
2. Women’s Participation: Reservation has empowered women in grassroots politics, with many states increasing the quota to 50 per cent.
3. Local Accountability: Citizens directly oversee implementation of programmes through Gram Sabhas and social audits.
4. Improved Service Delivery: Local management has enhanced efficiency in health, education, and welfare schemes.
5. Social Inclusion: Representation of marginalised communities in decision-making processes.

Challenges and Limitations

Despite progress, decentralisation faces several hurdles in India:

• Inadequate Devolution: Many states have not fully transferred the 29 subjects to PRIs.
• Financial Constraints: Dependence on higher tiers for funds limits autonomy.
• Administrative Weakness: Shortage of trained staff and bureaucratic control hinder effective functioning.
• Political Interference: State-level politics often dominate local governance.
• Lack of Awareness: Limited participation in Gram Sabha meetings due to low literacy and awareness levels.

Recent Initiatives and Reforms

The government has undertaken various initiatives to strengthen rural decentralisation:

• Digital Governance: Introduction of e-Panchayat Mission Mode Project for digital record-keeping and transparency.
• Capacity Building: Rashtriya Gram Swaraj Abhiyan (RGSA) focuses on training and strengthening PRIs.
• Devolution Index: Periodic ranking of states based on their degree of devolution to encourage competition.
• Financial Empowerment: Direct transfers of central funds to Gram Panchayats for local development.
• Social Audit Mechanisms: Institutionalised under programmes like MGNREGA to enhance accountability.

Significance of Decentralisation in Rural Development

Decentralised governance is crucial for achieving inclusive and sustainable rural development. It enables:

• Localised Planning: Tailoring policies to community-specific needs.
• Efficient Resource Use: Better identification of priorities and local assets.
• Transparency and Accountability: Greater citizen participation in decision-making.
• Empowerment of Marginalised Groups: Ensuring representation and voice for disadvantaged sections.