Delivery of public goods and services at the grassroot level has remained ineffective in India due to various issues faced by local self governance. Highlight the issues and suggest remedial measures.

Institutions of local self governance were established by the 73rd and 74th Constitutional amendment act of India. Their effectiveness in the modern times has been questioned.

Issues faced by local institutions:

• Lack of proper financial and political power devolution. E.g. PRIs only earn 5% of their expenditure, ULBs only earn 55% of their expenditure.
• Issue of constant state interference in the working of PRIs.
• Lack of administrative staff and management.
• Limited discretion of local institutions in deciding projects and schemes for implementation.
• Poor technology and lack of ICT system.
• Gender issues and concept of Panchayat in local institutions.
• Lack of awareness among people about the powers and functions of local institutions.

Measures to improve their effectiveness and delivery of public goods and services:

• Proper financial devolution, so they can become self-sufficient. Providing them with more taxes, tolls, duties, etc.
• Giving more administrative and political power. More items from the voluntary list should be transferred to PRIs.
• ICT technologies and e-governance should be promoted in local self institutions.
• Proper transparency and accountability mechanism needs to be set up to curb corruption and maladministration.
• Shift appointment of staff and strengthening the State Public service commission.

Government has already started a variety of steps such as ‘Sabki Yojana, Sabka Vikas’, PM Sansad gram Yojana, Municipal bonds, etc. But there is a need for more reforms to bring transformational change in local bodies.

Topics: GS-II: Devolution of Powers and Finances Up to Local Levels