Adequately empowering the third tier of Indian federal structure is the key to strengthen federalism in India. Analyse.

The 73^rd and 74^th amendments to the constitution of India ushered in decentralization by establishing PRIs & Municipalities as 3^rd tier of Indian federal structure. Despite these constitutional amendments, the 3^rd tier suffers from problems inhibiting true empowerment.

It faces the problem of “4Fs”:

• Funds: less than 5% of funds spent by PRIs & municipalities are their own funds.
• Functions: The subjects in 11^th and 12^th schedules have not been developed by majority of states. (The eleventh Schedule contains the powers, authority and responsibilities of Panchayats. The twelfth Schedule contains the powers, authority and responsibilities of Municipalities).
• Functionaries: Lack of trained human resource.
• Functionality: Due to issues like overlapping jurisdiction with district administration.

Need for empowering 3^rd tier to strengthen federalism in India:

• Participative democracy lies at root of the federalism.
• Empowered local communities can better demand for rights & development (competitive federalism).
• Healthy cooperation with states & centre (Cooperative federalism).

Way forward:

• Incentivize devolution of subjects, such as through 15^th FC recommendations.
• Innovative funding mechanism: Municipal bonds, PPP infrastructure.
• Standardize recruitments at 3^rd

A vibrant democracy lies in a vibrant empowered 3^rd tier of federal structure.

Topics: GS-II: Major Issues Pertaining to Federal Structure • GS-II: Devolution of Powers and Finances Up to Local Levels