Day 73 | RAS Mains 2025 Answer Writing | 90 Days

The 73rd and 74th Constitutional Amendment Act, 1992 constitutionalized local self-government to strengthen democracy at the grassroots level. While beneficial in many aspects, implementation challenges have limited their effectiveness over the past three decades.

Major challenges faced by local self-governments in India:

1. Functional Challenges:
   • State Control: Most states have not adequately devolved functions to local government bodies.
   • Parallel Structures: State governments create parallel structures for projects in agriculture, health, and education, undermining local bodies’ status and autonomy.
   • Non-functional Committees: District Planning Committees, mandated by the 74th amendment, are non-functional in many states.
   • Excessive Bureaucratic Control:In certain States, Gram Panchayats are subordinated, forcing Sarpanches to spend excessive time seeking funds and technical approvals from Block Offices.
   • Status of the Gram Sabha:Many State Acts lack clarity on the powers and procedures of Gram Sabhas, as well as penalties for officials.
2. Financial Challenges:
   • Overwhelming dependency on government funding: Most local bodies rely heavily on external sources for funding, with around 80-95% of revenue coming from State and Union Government loans and grants.
   • Tied nature of funds :  Funds devolved to local governments often come with conditionalities, limiting their flexibility in spending based on local needs.
   • Reluctance to Use Fiscal Powers: Gram Panchayats have the authority to levy taxes on property, business, markets, fairs, and services like street lighting or public toilets. However, very few Panchayats exercise this fiscal power
   • State Finance Commission Delays:Several states are yet to constitute their 6th State Finance Commission in accordance with the constitutional mandate, which requires their formation every five years.
   • Low Expenditure: Local government expenditure is only 2% of GDP, significantly lower than major economies like China and Brazil.
3. Functionary Challenges:
   • Organisational Capacity: Local bodies often lack the necessary human resources and technical expertise to effectively plan and implement development projects.
   • Centralization of service delivery through technology, undermining local decision-making.
4. Other Challenges:
   • Delayed elections and prolonged periods of non-functional local governments.
   • Low voter turnout and inadequate interest in urban government functioning, despite relatively higher literacy.
   • Limited effectiveness of women’s representation due to the “Sarpanch Pati” syndrome, where male relatives wield actual power.
   • A large number of elected representatives of PRIs are semiliterate or illiterate and know little about their roles & responsibilities, programmes, procedures, systems. 

Ways to strengthen the local self-governance in India:

1. Ensure effective implementation of the 73rd/74th Constitutional Amendments:  regular constitution of State Finance Commissions, and timely elections.
2. Strengthening devolution of powers: State governments must devolve more powers and functions to local bodies.
3. Financial empowerment: The central and state governments should ensure adequate fiscal transfers to local bodies and enable them to tap additional sources of revenue.
4. Regular Training and capacity building programs should be organized for elected representatives and officials, equipping them with the necessary skills and knowledge.
5. Accountability and transparency: Measures like social audits, citizen report cards, and e-governance initiatives should be encouraged.
6. Revitalize Gram Sabhas and ward committees, facilitating inclusive discussions.
7. Foster citizen participation and engagement through NGOs and civil society organizations, while educating the public about local governance processes and decisions.

Despite its limitations, the local self-government system serves as the “tool of democratic seed drilling in the Indian soil,” as envisioned under Article 40 of the Constitution. Implementing recommendations from the 2nd ARC Commission and NCRWC can further strengthen this system.