“The local self-government system in India has not proved to be effective instrument of governance.” Critically examine the statement and give your views to improve the situation. (UPSC 2017)

Local self-government has widened participation, but it has not become an effective governance instrument because power, funds and staff remain inadequate.

• Limits: Municipalities and panchayats raise little own revenue; property tax and user charges are weak, while dependence on state grants is high.
• Devolution gap: Many states have not fully transferred the 3Fs—functions, funds and functionaries; activity mapping is incomplete and parallel agencies dilute authority.
• Governance issues: Delayed/ignored State Finance Commissions, shortage of trained staff, poor planning capacity, elite capture and weak Gram Sabhas reduce accountability.

Way forward: strengthen own-source revenue, enforce timely SFCs and transfers, devolve subjects with staff, use social audits and e-governance, and insulate local bodies from excessive state control to make them truly self-governing.