INDEX

SEMESTER-V RURAL LOCAL GOVERNANCE (508/A)

S. Page
CONTENT
NO No

MODULE-I INTRODUCTION
a. 2
DEMOCRATIC DECENTRALISATION AND LOCAL ORGANISATIONS

b. EVOLUTION OF RURAL GOVERNANCE. INSTITUTIONS – 5

BALAWANTARAI MEHTA COMMITTEE
c. 21
ASHOK MEHTA COMMITTEE

MODULE-II
a. 28
3RD GENERATION PANCHAYAT’S

b. CONSTITUTIONAL STATUS OF RURAL LOCAL GOVERNMENT WITH 32

SPECIAL REFERENCE OF 73RD CAA

MODULE-III: LOCAL ORGANISATIONS FOR RURAL DEVELOPMENT

a. 40
PANCHAYAT RAJ: PATTERN, FUNCTIONS & PERFORMANCE

b. FINANCES OF PANCHAYAT RAJ INSTITUTIONS – STATE FINANCE 49

COMMISSION
MODULE-IV: RURAL DEVELOPMENT STRATEGIES & SERVICES

a. 60
RURAL DEVELOPMENT: STRATEGIES, PROGRAMMES & ISSUES
b. 79
COOPERATIVES: STRUCTURE, FUNCTIONS & PERFORMANCE
c. 91
BASIC SERVICES & WELFARE MEASURES IN RURAL AREAS
d. 107
STATE CONTROL OVER RURAL LOCAL GOVERNMENTS
113
IMPORTANT QUESTIONS
114
PREVIOUS YEAR PAPER

Study Material for SCIAS students prepared by Dr. S V B Rao

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 MODULE-I
a. DEMOCRATIC DECENTRALISATION
CONCEPT, EVOLUTION AND SIGNIFICANCE:
The dawn of the 20th century brought about changes in democracy through
decentralized governance. This led to the system of transparency, responsibility and
accountability of good governance. Decentralisation became necessary to deal with
changes in social life and development. Keeping this ideology the makers of our
constitution introduced local self government institutions to achieve socio economic
upliftment.
Democracy is considered to be one of the best forms of government because
it gives liberty in every aspect more so right to participate in political decision
making. Participation and governance by the people needs decentralization. This led
to district, block and village levels where all people sit together, discuss their
problems and plans and find solutions as well as monitor their implementation. This
is called as the CRUX of Democratic Decentralisation. Democracy explains the nature
and purpose of the concept and decentralization indicates the methods to realize the
end as given in the word democratic. Hence decentralization is transfer of planning,
decision making and administrative authority from the central levels to its field
organisations. Democratic Decentralisation is grant of authority by a superior to a
subordinate as a right to be exercised by the subordinate. It is an extension of the
distribution of powers to people's representative and organisations from the top to
the bottom level in political decision making, financial control and administrative
management with lesser interference from the higher levels. The local self-
governments work among themselves within its institutions. Decentralisation is not
an end in itself but depends on the circumstances under which it occurs and
democracy provides the best environment for meeting its growth and realization.

Evolution:
After the 2nd world war the new nation states adopted social, economic and welfare
programs for development and the states assured political responsibility for these
developments. The people were treated as mere beneficiaries and objects of
development. In India the planned development of the last 60 years for welfare
measures, economic growth, removal of poverty etc., led to inequality, regional
differences and absolute poverty. The policy analysts realized that with increased
government activities it was difficult to administer these activities from the central
level. This led to the process of decentralization. Participatory development emerged
as a solution which led for a better change through intervention by citizens and other
institutions. This created new ideas of development along with economic growth
with people's participation in decision making, providing opportunities for
employment, access to consumer goods and basic services like health, sanitation,
education and communication. Participative development ensured more people to
control their resources and also made people active in development processes.

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 The upward shift from the district to the state and union has not made
planning more effective instead it has led to negative planning by the ground level
reality losing its importance. The outcome of this was the demand of the people to
have a say in running their own affairs. Due to this the political parties started
turning their attention towards decentralized governance which wanted
administration to be brought to the door step of the people by establishing direct
relations between people and administration. The local institutions, the private
sector and the civil society all played an important role in decentralized governance.
Post independent India adopted democratic decentralization through the Acts of
1909, 1919 and 1935 by giving power in administration to the people. They felt that
democracy could be a success if it built from below and not upwards. (URSULA
HICKS)
In India panchayat raj institutions set an example for the world due to
democratic decentralization. For this they adopted the following reports:
1. The Balwant Rai Mehta Report favoured the Block as being nearest to the
people (1957).
2. The Ashok Mehta Report of (1978) on Panchayat Raj favoured the district
because it was the centre of local administration for centuries and so
expertise for planning and other matters must exist at this level and not below
it.
These reports are considered as landmarks in the history of democratic
decentralization in India. The 73rd and 74th amendments extended the scope of
democracy to women, OBCs and Dalit's at the grass root level.

SIGNIFICANCE:
Democratic Decentralisation is a global aspect today. It is a method of
development which requires a number of institutions for uplifting the poor and it
builds up the administrative activities whenever the need is expected.
Decentralisation is an important mechanism through which democracy becomes
truly representative and responsible.

Following are the advantages of Decentralisation given by Shabbier Cheema and

Dennis:
1. It leads to tailor made plans as per the needs of the vast regions and groups.
2. It cuts through red tapism.
3. It leads to closer contacts between government officials and local population
whenever required.
4. It allows penetration of national policies to remote area.
5. It allows greater representation of political, religious, tribal groups in
development, decision making that could lead to greater equity in allocation
of resources.
6. It develops the managerial and technical skills of local bodies.

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7. Top management would be relieved of routine jobs and can devote more time
to important jobs.
8. It ensures better coordination.
9. It leads to exchange of information.
10. It regulates the influence of the elite people.
11. It leads to flexible, innovative and creative administration.
12. Local people can execute, monitor and evaluate their plans in a better way.
13. Increased political stability will be ensured by increasing the participation of
the local people in decision making.
14. It reduces the cost of planning and increase the number of public goods.
Thus new ideas will develop for better governance like:
a) Providing people the opportunity to express their views and ideals.
b) Taking the points of service delivery closer to the people.
c) Strengthening the local bodies as self-governing institutions.
d) Tapping local initiative and practices by involving grass roots organization
such as self-help groups.

Representative and participatory democracy both works better through

decentralized governance. There is interactive policy making which leads to
decentralized decision making. There is interactive policy where government and
nongovernmental sectors like private sector, non- governmental organization
communities, grass roots organization, pressure groups all participate in decision
making to influence issues and suggest alternatives.
Hence decentralized governance is an alternative strategy for development,
which is people centered, participatory and bottom-up development mechanism.
It is good for the people when they understand what the government does. It
works up with problems at various situations from place to place.
The third world countries need more of decentralized governance for their
development. Many countries like India have worked up constitutional amendments
to strengthen the process of decentralization. A new tier in governance gives
sanction to panchayats and urban local bodies was made by 73rd and 74th through
utilization of gram sabha and ward committees.

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 b. EVOLUTION OF RURAL GOVERNANCE. INSTITUTIONS –
Balawanthrai Mehta

Q. CONCEPT, DEFINITIONS, FEATURES AND IMPORTANCE OF RURAL

GOVERNMENTS IN INDIA. (15 M)
Local government is a living expression of local people which afford maximum
opportunity for participation by all classes of people. It is a government on
the spot. Local self government is defined as "a government by popularly
elected body charged with administrative and executive duties in matters
concerning the inhabitants of a particular district or place and vested with
powers to make bye-laws for their guidance". Local government is the life and
blood of democracy. It is concerned with the functions of a particular locality
and it is concerned with every expanding social service.
It is these institutions that provide opportunities to actively participate
in the political process by learning civic matters, art of governing themselves
by creating new techniques and devices of government and administration.
True democracy cannot sustain for long unless the country has a democratic
climate in the management of social, economic and welfare schemes form the
bottom upwards. Local bodies are important units to help achieve
decentralization of political power and promotion of democratic values. Local
government can also be more efficient in routine matters by avoiding the
control of a centralized system. Local bodies are the media through which
functional compartmentalization can be channelized into coordinated planning.

DEFINITION:
Encyclopedia of Britannica: "Local government is an authority to determine and
execute measures within a restricted area inside and smaller than the whole
state".
L. Golding: "Local government is the management of their own affairs by the
people of a locality".

FEATURES:
1. LOCAL AREA: A local government like any other government has to operate
in a geographical area which has to be small i.e., a village, a town or a city as
against the whole country or state. There is a limit to the size of both
population and territory beyond which it cannot go.
2. STATUTORY STATUS: Local governments enjoy statutory status i.e., although
it is created by a specific law of the legislature, its powers do not rest on the
central or state government because through various amendments they have
been granted constitutional status. Hence they are free in exercising the powers as
per the autonomy granted to govern themselves as per legal laws framed by local
council.

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3. LOCAL PARTICIPATION: It is called democracy at the grass root level.
Participation of local people in decision making and administration of the local
authority is important which gives it the importance of self-government.
4. LOCAL ACCOUNTABILITY: They provide services of local nature like
sanitation, education, transport etc., to the people of the area hence are
accountable to them. The control of the local people will force them to serve
them better and also make them elective institutions.
5. LOCAL FINANCES: They have two main sources of finances. A) Grants in aid
given by the central and state governments and B) taxes imposed by
themselves. To make them independent they must raise their own revenues
through taxation and spend as per their local needs. +
6. CIVIC AMENITIES FOR THE LOCAL PEOPLE: The main objective of the local
government is to provide healthy living conditions for the people at their door
step like sanitation, street lighting, registration of births and deaths,
maintenance of parks, libraries, cremation grounds, water supply, health care,
primary education etc. These are the basic needs of the people which becomes
their first concern. Thus local government is a general purpose authority apart
from performing single purpose specific functions.
7. LOCAL LEADERSHIP: The people living in rural areas are inexperienced and
unaware about t the functioning of local bodies which needs strong leadership
to be provided to those people which is provided to them from the local area
in the shape of elected representatives and elected office bearers of the
councils with regard to the policies and programs of the government.
These features make the local government unit move towards
development and over all concern for all the people at the grass root level.

IMPORTANCE:
Democracy at the top may not be a success unless you build on this
foundation from below. The concept of welfare state has enlarged the scope
and functions of the government totally, hence the number of functions of the
local government has increased along with national functions.
1. Grass root democracy: Local government provides scope for democracy
at the grass root level because at the national and state level it is indirect.
Democracy at the national level can function effectively only when it is
supported by local government democratic principles.
2. Serves as a training ground: Local government is an excellent ground for
training future leaders. The participation at the local level in the management
of their own affairs gives them necessary experience to handle bigger affairs
later at the state and national levels but it also provides an outlet for
competent persons of the locality to render social service to the community.
3. Encourages people's participation in public affairs: It gives opportunity to
the people to participate in public affairs because local government is close to
the citizen unlike participation at state or national levels.

6
4. Local government is economical: The management of local affairs results in
economy and they know that the money being spent is their own money
which has been raised through local sources hence will try to economize and
avoid wastage. There will be less employment by utilization of local specialists.
The local people can hold the government responsible for misuse of funds etc.
5. Reduces burden of central government: Since the local functions are
exercised by the local government, the central government is free from the
burden and responsibility hence can concentrate more on affairs of national
importance. This makes the local government know its areas of activity in
which it can develop its competence.
6. Promotes political consciousness: Local governments encourage good
citizenship qualities like service mindedness, self- sacrifice, honesty, and
responsible behavior. During times of national emergency local governments
help people to work for national tasks and mobilize them for various activities.
7. Decentralization of power and authority: They provide number of
opportunities to the people in the organization and administration of local self
institutions. They develop leadership virtues, safeguard liberty, efficiency of the
people by avoiding excessive interference of central and state governments in
local affairs.
It is the experience of many countries that all matters of a local
concern are ultimately best administered by a properly organized system of
local government. Thus local bodies are the strength of a free nation. Thus
local government becomes very essential for the working of the Panchayat Raj
System and it requires cooperation between the central and local organs to
obtain the best results.

Q. Evolution of Rural government in India. (15 M)

ANCIENT INDIA
It goes to the Indus Valley civilization which was essentially urban in character.
Mohenjadaro, Harappa and other areas like Punjab, Harayana and Rajasthan were
the earliest planned cities of the world. There were wide streets, market places,
public offices, community baths, drainage system etc., which indicate an effective
municipal government.
The Aryans were rural people hence village was the main base of
administration carried out by elders through the method of supervision and control
by hereditary system. They had a village council, village accountant where they
worked by regular contact with the people. They kept record of village lands, papers
of government dues and admitted decisions of village council.
The Gupta and Chola periods had regular councils, ordinary villages and
sabhas also.
Medieval India - were self- governing institutions of local government. It suffered
due to invasions from the pre Mughals and their powers. Through the Kotwals they

7
exploited the peasants without administrative action and used the villages only for
collection of revenue.

Pre-Independence Period
SIR CHARLESS METCALFC, the provincial governor general of India (1835 – 36
had called the Indian villages communities as “the little republics” Now–a-days these
little republics are only called as a Panchayathi Raj bodies in rural areas and
municipalities and municipal corporation in the Urban areas. In modern India they
have come to stay as Rural and Urban governing bodies. The evolution of local
government in India can be traced as follows.

Mayo Resolution
Lord Mayo, in 1870 got a resolution passed in the council for decentralization of
powers with a view to bring about administrative efficiency and also to finance local
services out of local taxation. This step, by Lord Mayo, is considered as a landmark in
the evolution of policy regarding local bodies.

Rippon Resolution
Lord Rippon is considered as the father of local bodies in modern India The Local
Self-government Resolution of Rippon is regard.: as the `Magna Carta'. He passed a
resolution on I8th May 1882 providing for local boards consisting of a large majority
of elected non-official members and presided over by a non-official chairperson. He
thought that the local self-governing institutions would act as instruments of political
and popular education. He paved the way for local democracy in India. This
resolution elevated the role of local administration. Rippon is consider as the Father
of local self government.

Royal Commission
The Commission was set up in 1907 and submitted its report in 1909. The
Commission studied the working of the local and district boards in various provinces
of the country to enquire why decentralization had not been a success in the
country. It reported that paucity of funds and caste and religious disputes were the
main obstacles in effective functioning of the local bodies. The commission came to
the conclusion that the unrepresentative character and inadequate powers of these
bodies had made them a failure. He was of the opinion that it was desirable in the
interest of decentralization to associate. people with the local tasks of
administration. The Commission has recommended in 1909 constituting and
developing village Panchayats for the administration of village affairs.

Montague - Chelmsford Reforms

In 1919, Montague-Chelmsford report suggested that the local boards be
made representative bodies. According to the report, as for as possible, State
intervention should be minimised to enable the local bodies learn from their

8
mistakes. The reforms of Montague-Chelmsford, under the proposed scheme of
dyarchy, made local self-government a "transferred subject". This meant that local
self-government was brought under the control of Indian ministries in the provinces.
The idea was that the local bodies are made representative with popular control.

Government of India Act 1935

The Government of India Act of 1935 empowered the provincial governments
to enact legislation for further democratization of the local self-government
institutions, including Village Panchayats. Accordingly almost all-provincial
governments enacted legislation.
Though the position of local bodies was improved somewhat better than the
earlier, in terms of functions, powers etc., but these bodies were not democratic in
the real sense because most of its members were not elected but were nominated
by the government. They had few powers given to them and their financial resources
were also limited. The situation remained more or less the same till 1947.

Post-Independence Period
Village Panchayats were part and parcel of India's national movement. Gandhi
was for village Swaraj with a Panchayat having full powers. The idea was to have
democratic process operating at the grassroots level as much as at the national level.
Despite the nationalist movement's commitment to Panchayats and Mahatma
Gandhi's propagation of the ideal, the first draft of India's Constitution did not
include a provision for Panchayats. Dr. Ambedkar opinioned that villages in India
were caste-ridden and had little prospects of success as institutions of self-
government.. After lot of debate the village Panchayats found a . place in the
constitution. A provision was included in Part IV of the Constitution under the
"Directive principles of State Policy". According to article 40, `the state should take
steps to organize village Panchayats and endow them with such powers and
authority as may be necessary to enable them to function as units of self-
government."
Village Panchayats were recognized as an important vehicle for social
transformation and implementation of development programmes. Yet, they did not
get a constitutional status.

Balwantrai Mehta Committee (4 M)

A committee was appointed headed by Balwantrai Mehta, in 1957 by the
Committee on plan Projects to suggest institutional set-up to secure people's
participation for the effective implementation of Community Development and
National Extension Service programmes. The Committee favored an agency at the
village level, which could represent the entire community, assume responsibility and
provide the necessary leadership for implementing development programmes. Thus,
the committee recommended democratic decentralization, which accelerated the
pace of constituting Panchayati Raj Institutions in all the states. It may be noted that

9
there is a difference between a `Panchayat' and Panchayati Raj. While Panchayat
connotes a local body limited to a geographical area. It refers to, a system organically
linking people from the Gram Sabha to the Lok Sabha. Therefore, one has to write
Panchayati Raj but not Panchayat Raj while referring to the system.
Nehru hailed Panchayati Raj system as "the most revolutionary and historical step ',in
the context of new India". It was received with enthusiasm in rural India. The people
felt that they had had say in the affairs affecting their day -to- day life of rural
democracy, through Panchayati Raj system. A: feeling, was created among the
people that they are responsible for moulding their own future.
But, those promising days of Panchayati Raj system have been reduced to a
focus of frustration. Regular elections were not held. Elections were either
postponed or not held. Fears were expressed that attempts were made to cripple
and discard Panchayati Raj system because a threat was seen to the interests of
vested interests. The weaknesses of these bodies were highlighted. There was
nobody to say that `Let village authorities function and let them make a million
mistakes'

Debate on Constitutional Status

Many State Governments as an integral part of democracy did not treat
Panchayati raj institutions. Elections were not held. There was a gap between funds
and functions. Lack of political will to allow them to grow as political institutions was
very much visible. The working of Panchayati raj bodies made many people to
wonder why democracy was not allowed to percolate down to the grass- root level
by the state level politicians. It was felt that unless they are given constitutional
support, they couldn't deliver the goods and win the confidence of people. A public
debate to provide Constitutional status to the Panchayati raj bodies was set in
motion so that the grass- root democracy will become a reality.
Prior to the provision of Constitutional status to the local bodies, the
Government of India has appointed many Committees and Commissions, to review
the working of Panchayati Raj bodies. The Asoka Mehta Committee (1977), G.V.K.Rao
Committee (1985), L.M.Singhvi Committee (1986), Sarkaria Commission (1984-1988)
and P.K. Thungon Committees are some important committees. These committees
were appointed to suggest certain measures to strengthen them to enable a
decentralized system of planning and development in rural areas. Let us examine,
very briefly, the important recommendations of these committees,

Asoka Mehta Committee

The committee attempted to make the Panchayati Raj institutions genuine
political institutions. It observed that rural India was the backbone of all
development programmes. The future of India would depend on the welfare of the
villages. Panchayati Raj system should contribute to the philosophy and functions of
rural life in India. It also recommended including Panchayatiraj in the Constitution of
India.

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 The most significant recommendation of the Committee was the two-tier
Panchayati Raj system, Zilla Parishad at the district level and Mandal Panchayat for a
group of villages. The committee ignored the importance of Gram Sabha.

G. V. K. RAO COMMITTEE
The G.V.K. Rao Report (1985), prepared at the instance of the Planning
Commission, recommended a bold scheme of democratic decentralisation in which
the district - level body was to be of pivotal importance. In 1986 appeared the L. M.
Singhvi Committee Report, submitted at the instance of the Ministry of Rural
Development. After tracing the growth and development of democratic
decentralisation. the Singhvi Committee resurrected the nearly forgotten Gram
Sabha, comprising all the inhabitants of a village, and called it as the embodiment of
direct democracy. Besides, it wanted to ves panchayati raj with a constitutional
status, saying that" a separate chapter'should be added in the Constitution (of India)
so as to make the identity and integrity of the panchayai raj institutions reasonably
and substantially inviolate”. It wanted the establishment of nyaya panchayats for a
cluster of villages. As regards the participation of political parties in panchayati raj
elections, it itself did not volunteer any definite recommendation and wanted a
governmental decision which is pragmatic workable and consensual and in
consultation with difference parties of the land.
Mention has already been made of the G.V.K.Rao Committee, appointed in
1985 to suggest suitable administrative arrangements for rural development and
poverty alleviation. The committee wanted to activate the panchayati raj institution
in order to make it effective for handling local people's problems. It recommended
that the zilla parishad should become the principal body for administration of
development programmes. The chief executive of the zilla parishad should be the
district development commissioner who should be responsible for planning and
implementation of development programmes. The office of the district development
commissioner should be of a higher status than that of the district collector. This is
designed to establish the primacy of development administration over regulatory
administration. The G. V. K. Rao Committee viewed the block development office as
the sheet anchor of rural development process and wanted him to redesignated as
the assistant development commissioner.

L. M. SINGHVI COMMITTEE:
In June 1986 the Government appointed an eight-member committee under
L. M. Singhvi to prepare a concept paper,for discussion at a national workshop to
review the growth, present status and functions of the panchayati raj institutions and
suggest remedies to make the latter effective institutions in the constructive task of
rural development and national building. The foremost recommendation of the
Singhvi Committee was that local government should be constitutionally recognised,
protected and preserved by the inclusion of a new chapter in the constitution. Local
governments should be viewed as units of self government to facilitate the

11
participation of the part of the concept of self-government. Development planning
should be democratic planning.
Attention should be drawn to three other important recommendations made by the
Singhvi Committee:
1. Village should be reorganised to make for more viable village panchayats. For
this, villages may be grouped and thus encouraged.
2. Each state should have a panchayati raj judicial tribunal to adjudicate disputes
in relation to elections, suspensions, super sessions, dissolutions and other
matters relating to the working of panchayati raj institutions.
3. Ways and means must be devised to ensure adequate financial resources for
panchayati raj institutions to enable them to function effectively.

Sarkaria Commission
The Commission primarily concerned with the centre-state relations did not
agree with L.M.Singhvi Committee's report of conferring a constitutional status on
Panchayati Raj Institutions. The Commission advocated that the power regarding
Panchayati Raj should vest with the states. But at the same time the commission
recommended the strengthening of local bodies financially and functionally and
holding of elections regularly.

THE P. K. THUNGON COMMITTEE:

Mention may as well be made of a sub-committee of the parliamentary
consultative committee attached to the Central Ministry of Personnel, Public
Grievances and Pensions setup in 1988 under the chairmanship of P. K. Thungon to
consider the type of political and administrative structure in the district for district
planning'. The P. K. Thungon Committee, as it is called, pleaded for the constitutional
recognition of panchayati raj. The zilla parishad should be its pivot being the planning
and development agency in the district and thus the most effective level in the
panchayati raj system. The term of the panchayati raj bodies should be fixed at five
years, and they must not remain superseded for more than six months. A notable
recommendation of the Thungon Committee was about the district collector being
made the chief executive officer of the zilla parishad. The state government should
appoint officers of the rank of additional collectors to assist the collector in
development and regulatory administration. Its other important recommendations
were about a detailed list of subjects for panchayatiraj to be incorporated in the
constitution and the setting up of the state finance commissions to lay down the
criteria and guidelines for devolution of financial resources on the panchayati raj
bodies.
COMMUNITY DEVELOPMENT PROGRAMMES AND NATIONAL EXTENSION SERVICE
The year 1959 marked a revolutionary step in the institutions of rural local self
government in the country. The year saw the inauguration of Panchayat Raj
movement throughout the country.

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THE COMMUNITY DEVELOPMENT PROGRAMME (4 M)
The United Nations defined Community Development " as a process designed
to create conditions of economic and social progress for the whole community with
its active participation and the fullest possible reliance upon the community's
initiative". The Panchayat Raj system in India has evolved out of the Community
Development Programs (CDP) introduced on 2nd October 1952 intended to bring
about the socioeconomic development of rural masses in a democratic way. This
programme was started on the recommendations of the Krishnamachari Committee.
It was a nationwide project and involved the people in the local developmental
action with locally available resources. India is the only country in the world-the
greatest democracy- where this programme was initiated for the betterment of the
life of several others in a peaceful way. The programme of community development
stared on October, 2 1952, with the launching of 55 community projects comprising
27,388 villages and a population of about 2 lacs and a cultivated area of about
1,50,000 acres. was worked out with a budget of Rs.650,000 spread over three years
. Each block consisted of Block Development Officer (BDO), subject specialists and
Village Level Workers (VLWs). This programme covered several activities like
agriculture, animal husbandry, health; education and employment. Agriculture
remained as the main agenda to solve the problems of the rural economy. Hence
without Community Development democracy cannot work for a longer period
because it is with Community Development that economic development takes place.
On 2nd October 1953 the government launched another programme called
National Extension service programme (NES). This was a great plan for the uplift of
the rural masses of India. This programme was initiated with a view to removing the
mental lethargy of the rural people, i.e, to develop both an urge and the initiative for
better living conditions. It is a human movement that seeks to “instill in the people a
will for a better life, create in them a passionate desire for improving their standard
of living through their own efforts and in full co-operation with the neighbors. Under
the scheme the blocks setup under the CDP then under the NES started working
together. The CDP was intended to last three years but the NES was to a permanent
multifunctional extension agency in the block. The term National extension Service
refers to the block level organization consisting of the BDO, subject specialists, the
Village Level Worker's and the extension officers.
Although the CDP and the NES were to be worked out in a planned manner
these programs did not give the desired results due to lack of people's participation
and also could not work out socio-economic life of the rural masses as was expected
in the first five year plan document. They also did not lead to increase in agricultural
production. several studies pointed out many disadvantages in these programs like:
1. The program worked very fast and the development officers were
incompetent with insufficient training.
2. The working aspects was made difficult for community development blocks of
many villages.
3. The immediate needs of the people were ignored.

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4. There was corruption at various levels.
5. The administration at the block and district levels were left to the greed of the
politicians and the rich and powerful were benefitted more and monopolized
the entire functioning against the poor landless and depressed groups.
Thus in 1957 a team to study Community Projects and NES known as Bawant
Rai Mehta Committee was set up which suggested the formation of a three tier
system of rural local government to be called as Panchayat Raj. The ideology behind
this change as to shift the decision making centres closer to the people and to
encourage their participation. Along with this the government also started launching
several other programs to improve the rural economy.

NATIONAL EXTENSION SERVICE (NES): (4 M)

Alongside the CDPs was launched, a year later, another programme of rural
reconstruction, called the `National Extension Service'. The Grow More food enquiry
Committee, which recommended the constitution of a development block
coextensive with a taluka or tahsil it was decided to establish a permanent extension
service all over the country with a development block as the lowest administrative-
cum-development unit and to have a suitably phased programme for this purpose.
Thus each block was to have a first stage called the national extension service stage
for a period of three years with a budget provision of Rs. 5.50 Lakhs. This was to be
followed - by an intensive development stage called the community development
stage, which was to extend over a period of three years with a budget of Rs. 15 lakhs.
After this, it was visualized to have a post-intensive, with budget of Rs. 30,000 per
year. In all these stages, the method of work was the same, the difference being only
in the quantum of available funds. It was intended that the entire state should" be
covered by NES blocks by the end of the second plan period. After the block attained
the post-intensive stage, the national extension service agency was to be utilized by
state departments for their normal development activities".
Started in 1953, the NES has, in 3 decades, covered 3 the entire country. Originally,
the criterion governing selection of sities for opining the NES blocks was threefold,
namely:
1. The blocks should be so sited as to constitute a compact administrative charge
under a sub-divisional officer or a sub-collector.
2. The blocks should not cut across the normal administrative boundaries.
3. The special needs of the areas inhabited by scheduled tribes and other backward
classes should be kept in view in the selection of blocks.

BALWANT RAI MEHTA COMMITTEE

Q. What are the important recommendations of Balwanthrai Mehta Committee?
(15 M)
INTRODUCTION:
To the Team for the Study of Community Projects and National Extension Service,
popularly known as the Balvantray Mehta Committee after the name of its chairman,

14
goes the credit for the present system of rural local government in India. Seldom has
music flowed so melodiously from an unmusically titled committee; scarcely has a
committee in the annals of local government brought about more pervasive and
fundamental system of reforms.

COMMITTEE OBJECTIVES:
This Committee (it is proposed to use this word Committee in preference to Team)
was sot up by the Committee on plan Projects to study and report on the community
projects and national extension service with a view to ensuring economy and
efficiency generally and with specific reference to the following aspects:
i) The content of the programme and the priorities as assigned to different fields
of activity within it.
ii) The arrangements for the execution of the programme with special reference
to -
a) Intensification of activities in the sphere of agricultural production;
b) Coordination between:
(1) the different ministries/departments at the centre;
(2) the centre and the states;
(3) the different agencies within the Community Projects
Administration and other state Government Organisations and
Departments.
(c) the organizational structure and methods of work with a view to securing a
greater speed in the dispatch of business.
iii) the assessment of the requirements of personnel for community projects and
national extension service and examination of existing training facilities in
order to meet the growing requirements of personnel for extending the
coverage of the programme.
iv) the assessment of the extent to which the movement has succeeded in
utilizing local initiative and in creating institutions to ensure continuity in the
process of improving economic and social conditions in rural areas.
v) The methods adopted for reporting upon the results attained by the
community projects and national extension service.
vi) any other recommendation that the Team may like to make in order to ensure
economy and efficiency in the working of the a community projects and the
national extension service.

RECOMMENDATION OF THE BALWANTRAY MEHTA-3 TIER SYSTEM:

The Committee in its report published in 1957, was struck by the following three
findings:
1. The community development and national extension service programme had
failed to evoke popular initiative;
2. Local bodies at a level higher than the panchayat had evinced but little
enthusiasm in the community development programmes; and

15
3. Even the panchayats had not come into the field of community development
in any significant way.

To the Committee the remedy lay in decentralization of responsibility and

power to levels below the state. It recommended “devolution of power to a body
which, when created.. will have the entire charge of all developments work within its
jurisdiction, the government... reserving to itself the functions of guidance,
supervision and higher planning and where necessary, providing extra finance”.
To secure this the Committee envisaged a three-tier system of rural local
government, namely village panchayat at the village level, the panchayat samithi at
the block level, and the zilla parishad at the district level. Of these three however,
the most effective body was visualized at the block level. It is proposed, therefore, to
first describe this Institutions.

PANCHAYAT SAMITI, AREA:

The Balwantray Mehta report gave to this block level body the name of
panchayat samiti. The panchayat samiti should be a statutory and elective body,
comprehensive in its functions equipped with necessary executive authority and in
possession of adequate resources. “It must not be cramped by too much control by
the government agencies”. It must function in freedom from interference or
elaborate control by the government. It would require guidance, which ought to be
provided by government.

AREA:
The area of jurisdiction of the panchayat samiti should be kept neither too
large as to defeat the very purpose for which it is created nor too small as to militate
against efficiency and economy. According to the Committee, the village panchayat is
too small in area, population and financial resources to be considered as a viable unit
of administration, and the district level body would be too remote from the people
to enlist their active participation and therefore, the Committee recommended that
the jurisdiction of the panchayat samiti should be made co-extensive with the
development block which "allows an area large enough for functioning which the
village panchayat cannot perform and yet small enough to attract the interest and
service of the residents. As a development block has already been existing as the unit
of administration. It is more desirable to make the panchayat samiti coincide with it
rather than disturb the block. A block should not have more than twenty circles in it,
each circle having a population not exceeding four thousand people.

FUNCTIONS :
In addition to functioning as the unit of rural local government, the panchayat
samiti would act as the solo authority for all development programmes, which are of
exclusive interest to the area. The development programme covers agriculture,
animal husbandry, cooperation, minor irrigation, village industry, primary education,

16
local communications, sanitation, health, medical relief, local amenities and similar
subjects.
The Committee expected that the government in all these matters would
cease to operate within the area and in certain circumstances, when it has to; it has
to do so through the agency of the panchayat samiti. The state's role would then be
confined to guidance, supervision and higher planning and provision of financial
assistance.

FINANCE:
As the chronic weakness of the local government in India, both rural and
urban, has been paucity of finance to carry out its tasks, the Balvantray Mehta
Committee addressed itself to that problem and recommended the following sources
of income to the panchayat samiti:
1. A fixed percentage of land revenue collected within the block. 3 tire
2. Cess on land revenue, water rate etc.,
3. Tax on professions and trades.
4. Surcharge or duty on the transfer of immovable property;
5. Rents and profit accruing from property e.g. ferries, fisheries etc.,
6. Tolls and leases of roads and bridges.
7. Pilgrim tax.
8. Tax on entertainments.
9. Primary education cess.
10. Proceeds from periodical fairs and markets.
11. A share of the motor vehicle tax.
12. Voluntary public contributions.
13. Grants from government.

Further, the Committee wrote: "At present state Governments spend money on rural
development mainly through their own machinery and small amounts through village
panchayats; but public funds are also spent in another manner i.e., by direct
assistance to what are known as non-official bodies which are all non statutory.
Certain central organizations, which spend public funds on specified aspects of rural
development, function either through their own branch organization or through
these non-official bodies. We recommend that all central and state funds spent in a
block area should invariably be assigned to the panchayat samiti to be spent by it
directly or indirectly, , except to an institution, assistance to which is either beyond
the panchayat samiti's functions or its financial resources".
The panchayat Samiti should have an elective chairman. Members of all the
panchayats in the block should elect from amongst themselves members of the
panchayat samiti. THE panchayat samiti should not have more than 20 members. The
elected representatives should co -opt two women who are interested in work
among women and children. Where the population of scheduled castes exceeds five
percent of the total population of the panchayat samiti area. One person belonging

17
to the scheduled castes should be co-opted. Similarity; one member of scheduled
tribes should be co-opted, if the population of scheduled tribes is five per cent or
more of the samiti area. In addition, the panchayat samiti may co-opt two local
residents whose experience in administration, public life or rural development would
be of benefit to the samiti. The cooperatives functioning within the area of the
panchayat samiti should also be represented in the panchayat samiti. The panchayat
samiti should have a tenure of five years.

LIMITATIONS :
The Balvantray Mehta Committee desired the government not to interfere in-
the functioning of panchayat samithi but at the same time felt the necessity of the
government exorcising control under certain circumstances The government, for
example, should have the ultimate power to supersede a panchayat samitiin public
interest.
The district collector should also be empowered to suspend the resolution of a
panchayat samiti when the SEES danger to peace or where the action proposed to be
taken by a panchayat samiti is ultra vires of the constitution or contrary to the law of
the land.

PERSONNEL :
As regards personnel, the Panchayat Samiti will have two sets of officers -
those at the block level and those at the village level. The block level officers will
include the block development officer, who will be the chief executive officer, and
various technical or extension officers in charge of agriculture, irrigation, roads and
buildings, public health, animal husbandry, cooperation, social education, primary
education, etc.. The block development officer should be statutorily vested with
administrative powers. These powers will be similar to those of the chief executive
officer of a municipal council. Both the block development officer and the extension
officers. should be drawn from the corresponding state cadres and would be lent to
the panchayat samiti by the state government which will meet the cost of their pay,
pension and leave contributions. These officers should be transferable. The
Committee recommended that the extension officers of the panchayat samiti should
be under the technical control of the corresponding district level officers but under
the administrative control of the block development officer.
As regards the staff at the village level like the gram sewak, the primary school
teacher etc., they would be recruited by the Zilla Parishad, which will assign them to
the various panchayat samitis. They will be under the administrative and operational
control of the block development officer.

VILLAGE PANCHAYAT - FUNCTIONS:

Below the panchayat samiti will be the village panchayat. The village panchayat
should be constituted on an elective basis but two women members and a member
from the scheduled castes and scheduled tribes may be co-opted.

18
FUNCTIONS:
The village panchayat should have the following compulsory functions:

1. Provision of water supply for domestic use.

2. Sanitation.
3. Maintenance of streets, drains, tanks etc.,
4. Lighting of the village streets.
5. Land management.
6. Maintenance of records relating to cattle.
7. Relief of distress.
8. Maintenance of village roads, culverts, bridges, drains etc.,
9. Supervision of primary schools.
10. Welfare of backward classes.
11. Collection and maintenance of statistics.

In addition the village panchayat may act as the agent of the panchayat samiti
in executing any schema of development or other activities. Balvantray Mehta
Committee emphasized the desirability of using the village panchayat as an agency
for the collection of land revenue.

FINANCE:
The village panchayat should have the following main resources at its disposal:
1. Property or house tax.
2. Tax on markets, bazaars etc.,
3. Tax on vehicles like carts bicycles, boats and pack animals.
4. Octroi or terminal tax.
5. Conservancy tax.
6. Lighting rate.
7. Water rate.
8. Income from cattle pounds.
9. Fees to be charged for registration of animals sold within the local areas.
10. Fees from slaughter house etc.,
11. Grants from the panchayat samiti.

The Committee was aware of the unsatisfactory collection of panchayat taxes. It,
therefore, suggested that legislation should provide that a person who has not paid
his taxes in the penultimate year should be debarred from exercising his franchise in
the next panchayat election and that a panchayat member should automatically lose
his membership if his tax is in areas of in arrears for more than six months.

LIMITATIONS :
The budget of the village panchayat should be subject to the scrutiny and
approval of the panchayat samiti.

19
ZILLA PARISH AD :
With an effective panchayat samiti at the block level, the Balvantray Mehta
Committee did not visualize need for any affective body at the district level. AS the
district continues to be the unit of administration and the unit of coordination of the
functions of all departments functioning within the area, the panchayat samitis
operating in the district obviously need a coordinating organization at the district
level. The Committee, therefore, recommended a zilla parishad which should be a
purely coordinating and supervisory agency and should have no executive authority.

MEMBERSHIP :
The Zilla Parishad should consist of the presidents of the panchayat samitis in
the district, all members of the state legislature and of parliament representing the
district, and district level officers of the medical, public health, agriculture.
veterinary, public health, engineering, education, backward classes welfare, public
works and other development departments. The district collector should be the
chairman of the Zilla Parishad and one of his officers, its secretary.
The Zilla Parishad should have its standing committees to ensure rapid disposal of
work. The Committee recommended that the Zilla Parishad should have a standing
committee for finance and a standing committee for services.

FUNCTIONS:
The Zilla Parishad should be a supervisory and coordinating body. "We do not
contemplate that this parishad will have executive functions; that way lies danger to
the initiative and, therefore, the effectiveness of the panchayat samities in their early
years". Its functions should include the fallowing
1. Zilla Parishad should examine and approve the budget of panchayat samitis in
the district.
2. It should distribute funds made available by the government for the district as
a whole, among the panchayat samitis.
3. It will coordinate and consolidate the block plans in the district.
4. It will consolidate and forward requests for grants by the panchayat samiti to
the state government.
5. It will generally supervise activities of the panchayat samitis in the district.

This, then, is the three-tier system of rural local government recommended by

the Balvantray Mehta Committee. It needs to be emphasized that the Committees
recommendation was nothing short of a complete transformation of the existing
rural local government into an effective and apt system.

CONCLUSION:
We may observe here that panchayati raj represented a new phase in the
administrative; and in a sense political, evolutions of the country. In a brief survey
like this, it is difficult to do justice to the contribution of the Mehta Report to this

20
evolution, involving as it does many complex details. In a handsome tribute professor
Maddick describing it (the report) as "an outstanding document and model of the
way in which such an enquiry should be conducted", said : For community
development this report was most valuable study and for the growth of democratic
institutions in the country one of vital importance.

c. ASHOK MEHTA COMMITTEE

Q. What are the important recommendations of Ashok Mehta Committee? (15 M)

INTRODUCTION
The government of the India, appointed a committee popularly known as
Ashok Mehta committee on Panchayati Raj Institutions in December 1977, with the
main task assigned to enquire into the working of panchayati raj institutions and to
suggest measures to strengthening them so as to enable a decentralised planning
and development to be effective. Under the Rajiv Gandhi government some
important committees are appointed these are G. V. K. Rao committee, L. M. Singhvi,
P. K. Thungan committee. Panchayathi Raj under Rajiv Gandhi all earlier attempts at
the reconstruction of local government, both rural and urban look pale in view of its
most daring recasting attempted during in 1989 even though these could not
become the law of the land having been defeated in the upper chamber of the Indian
Parliament, where the ruling congress (I) party did not possess the requisite two-
third majority of membership necessary for the passage of 64th & 65 amendment
bills. Yet these two bills were historic importance.

ASHOK MEHTA COMMITTEE:

It was in this overall context that the Central Government appointed, in
December 1977, the Committee on Panchayati Raj institutions under the
chairmanship of Asoka Mehta to suggest measures to strengthen the panchayati raj
institutions. The Committee submitted its report in August 1971 making nearly 100
recommendations. As this Report is bound to the subject of extended discussion and
debate throughout the country, a few of observations on it are pertinent.
The Asoka Mehta Committee's principal thesis the functional necessity for
decentralisation of administration. Where millions of people are involved where the
lot of the poor is sought to be improved through a very large, number of micro
projects, decentralised administration is an unavoidable necessity is: "The
formulation of structure, functions and the utilisation of financial, administrative
and-human resources of panchayati raj institutions should, in our opinion, be
determined on the emerging functional necessity of management of rural
development." Such a philosophy'-or approach' -conceives of panehayati raj in come
what narrow terms, it gives one a feeling in at panchayati raj is a mere administrative
contrivance whose justification lies only in terms of rural development. It may have
been more secular if panchayati raj, or rural local government is regarded, like its
counterparts at the state and central levels, as a system of government havings

21
measure of autonomy in the matter of its functioning and existing in its own right.
The committee is a too closely focussed definition of rural local government and it
needs to be liberalised and made more open-ended.

MANDALPANCHAYATS:
The most significant recommendation of the Committee is for the creation of
a two-tiered system of pancnayati raj. It regards the revenue district as the first point
of decentralisation below the state level which assures the technical expertise of a
high order required for rural development, In short, the zilla parishad should be the
executive body-as in Maharashtra and Gujarat. Below the zilla parishad is to be a
mandal panchayat which is to be constituted by grouping a number of villages. The
Committee wrote: "While preference is for two tiers-a district-level zilla parishad and
mandal panchayat-we are conscious of the fact that two other tiers are already in
existence and it may take time for the suggested institutional design to take shape
and become initial operational. The block-level panchayat samiti , where they
exist now would be converted into non-statutory executive committees of zilla
parishad shad and when the mandal panchayats become active, most of their
functions be taken over by the mandal panchayats: As a transitional structure,
the block can, therefore, continue as per the convenience of the states keeping in
view their requirements and the stage of development. At the village level, the
people would be involved in mandal panchayats through village committees which
would look after the municipal functions and related welfare activities. Tilt the
mandal panchayats are constituted, a federation of existing village panchayats
maybe desirab1e. Th e `committee's listing of functions to be performed by the
decentralised structure is satisfactory, and if accepted, would be an exercise in
genuine decentralisation. Of course, the position cannot remain static and has to be
reviewed periodically to see whether some more functions may be devolved upon
the panehayati raj bodies.
The zilla parishad should be the level of democratic decentralisation which is
to be entrusted with functions of an executive nature in a pattern already in
operation in some parts of India. But the suggestion for the creation of mandal
panchayats (which are to be the implementing bodies) covering a population of
15,000 to 20,000 is a new and novel one. The Asoka Mehta Committee adduced
technological and administrative arguments in support of its recommendation for
mandal panchayats. According to it, a mandal panchayat would atone be able to
ensure a balance between technological requirements and possibilities of popular
participation in decision making. The size of the proposed lower tier would be such
as to make projects and. Schemes economically viable. Besides, there are many
programmes which need a larger unit than the present block to handle them. In
short, mandal panchayat would ideally bring about symbiosis between technology
and democracy. Thus runs the argument.
The Committee 's recommendation favouring a two-tier form of panchayati raj
needs to be discussed carefully and dispassionately. The Committee does not

22
recognize a need for an elective participative organism at the level of the village: it is
content with village committees. Such a view makes the village too conspicuous by
its absence in the Mehta scheme of reorganization, political institutions do not
operate in a vacu and by overlooking the village, which is an organic entity; the Asoka
Mehta Committee runs the risk of suggesting precisely such a kind of remedy. It ma
perhaps do us good to recognize the full organic personality of the village and build
the decentralized structure upon it.
This apart, the committee has to clear some other doubts as well. The present
structure of panchayati raj was designed in the early sixties, and it necessarily takes
time for it to grow roots and enter into the minds of rural people. Rural people have
their own psyche: they are rather slow in accepting innovations but having once
accepted, are rather seeptical about proposals for their abandonment, it is only
recently that the panchayati raj flossary has gained their understanding and even
acceptance, words like "block" `Panchayat samiti' `gram panchayat' etc. Have now
become household expressions in rural India, One would like to be convinced more
than the committee had done in its report about the distinct superiority of the
proposed scheme. Perhaps, the weakness of the panchayati raj system are rather in
accurately ascribed to the structure alone. The fact is that it has not given a really fair
trial -and a sympathetic analysis. It appears that the proposed two-tier system of
panchayati raj and the exact location of the tiers are the structural manifestations of
an oversensitivity on the part of the Committee to technology and a studied
underaction to democracy at the grassroots.

COMPULSORY POWERS OFTAXATIONS:

As regards taxation, the Asoka Mehta Committee wants the panchayati raj
institutions to have `compulsory powers of taxation' to mobilse the necessary
resources on their own thereby reducing their dependence on devolution of funds
from the state government. As we know from experience, this is easier said than
done: the centre, too, exhorts the state governments to display vigour in the matter
of taxation but without visible effect on the latter, it is necessary that panchayati raj
overcome its shyness in levying taxes. The Committee has hinted at areas, such as,
profession tax, entertainment tax. house tax and special taxes on lands and buildings.
The problem here is that at certain levels of income these are the zones of the state
governments while at a lower level there is not enough income left for these local-
level bodies to levy taxes on.
A central feature of the local government in India is lack of its inherent power
of taxation as the Constitution of India does not specify any taxes fonts exclusive use
this. however, was not always the position. During the period 1921-37 the local
government was endowed with a separate tax domain. The Government of India Act,
1919, which came into force in 1921, contained a local list comprising the following
taxes:
1. Toll
2. Tax on land and land values

23
3. Tax on buildings
4. Tax on vehicles and boats
5. Tax on manilas and domestic servants
6. Tax on animals
7. Octroi
8. Terminal tax
9. Tax on trade, professions and callings
10. Tax on private markets
11. Tax Imposed in return for services rendered such as:

(a) water rate, (b) lighting rate, (c) drainage rate, (d) fees for use of markets, and
(e) other public conveniences.

The Government of India Act, 1935 did not include any local list of taxes, and
so, with the inauguration of the Act in 1937 the local government for deprived of the
special position in regard to taxation. Nor does the present Constitution enumerate,
as it has done in the case of both the central and the state governments, taxes
reserved for use of or by the local government only. This has occasioned a demand
that local government in India be given a separate list of taxes, and that, in order to
ensure definite and elastic sources of revenue, the Constitution needs to be suitably
amended to include, on the lines of the union and the state lists, a list of local taxes
also. The Asoka Mehta Committee examined the larger question of according a
constitutional base to panchayati raj and wanted the central government 'to give
careful consideration' to the proposal. One wishes that the Committee had lent a
more positive support to the plea for making panchayati Raj a part of the organic law
of the land. A constitutional base is apt to impart both sanctity and stature to the
grassroot government.

OPEN PARTICIPATION OF POLITICAL PARTIES :

A remarkable feature of the Mehta Report is its recommendation favouring
'open participation' of political parties in panchayati raj affairs. This marks a
departure from the hitherto followed policy. It may, however, be mentioned that
West Bengal and Jammu Kashmir have held panchayat elections on party basis. In
many states, where partyless polls are claimed, the political parties have been up to
their necks in the fray. The fact is that the partyless polls acquire in practice the same
competitive character, except,ofcourse., for the labels. The recommendation that
political parties be allowed to contest the panchayat elections is thus pragmatic. It is
desirable too. Not only are the political parties the main channels of mass
involvement incurrent issues including local ones but they also become accountable
when they are openly involved in the panchayati raj institutions. The view that
political parties are a species of impurity from which the rural local government in
India needs to be shielded failing which the rural life would get polluted 'carries little
meaning. Political parties are an essential ingredient of the democratic process. But

24
the political parties must reorient themselves and learn a new style of functioning at
the local level. As visualised by the Committee, the panchayati raj elections are to be
based on political parties with reserved constituencies for schedule castes and tribes
and a minimum of two reserved for women. The election will be conducted by the
chief electoral officer of the state in consultation with the Chief Election
Commissioner.
The Committee has also made some very interesting recommendations
favouring the creation of certain monitoring forums to safeguard and promote the
interests of the vulnerable social and economic groups in the villages. It suggests a
regular social audit by a district level agency as well as by a committee of legislators,
to check whether funds allotted for these groups are actually spent on them. This is a
wholesome recommendation. An absence of such bodies in the present structure has
made it easy for smart operators to monopolise the benefits at the expense of those
they profess to serve. The Committee had also proposed a 'social Justice committee'
in each zilla parishad to ensure that panchayati raj bodies function so as to show
keen interest in the welfare of these groups. These bodies proposed by the
Committee have great potential, provided their members are carefully selected and
they are truly representative of the diverse interests in the locality. Further, the stale
legislatures will have a committee on panchayati raj with adequate representation
for scheduled castes and tribes and this body will attend to the needs of the weaker
sections.

OTHER RECOMMENDATIONS:
An important recommendation of the Committee is that the state government must
not supersede the panchayati raj institutions on partisan grounds. If, however, the
super session of a body becomes necessary, there should be an election within six
months. This is a salutary recommendation.
The Ashok Mehta Committee treats rural development as part of ,the urban-rural
continuum and therefore argues for the provisions of urban amenities such as roads,
potable drinking water, medical care, employment and education in the rural areas
to weaken or even neutralise the pull for migration to urban centres. This is good in
so far as it goes but on closer analysis it does not seem to go very far. The present
pattern of local government in India Is essentially based on rural-urban dichotomy;
the two arms of local government urban and rural, presently constitute two separate
independent entities with title organic interrelationships characterizing their
activities. The mass media, the rapid means of communication, the interlocking
nature of the economy, the growing political socialization and above all the
revolution of rising expectations have been bringing about the social and political
mobilization of the people. The correct solution may perhaps lie in a sharper
definition of relationships between the urban and local government, or even in the
creation of a single area government in' which all the urban and local governments of
the area would get merge.

25
Its Main Recommendations can be summarized as follows:-
The Panchayat Raj Institutions although introduced in India in 1959
could not work efficiently and the government with the object of restructuring
this body through public participation appointed a committee known as Ashok
Mehta Committee to suggest remedial measures. The Janata Party government
appointed a 14 member committee from different political parties under the
chairmanship of Ashok Mehta in December, 1977. The committee submitted its
report in Aug 1978 consisting of 11 chapters with 300 pages and made 132
recommendations. which was discussed by the conference of Chief Ministers in
May 1979. This committee identified the importance of panchayat raj for
economic, social and political set up. They suggested a two tier system of
administration at the panchayat and district levels.

Its main recommendations are:

(i) The three-tier system of Panchayati Raj should be replaced by the two-tier system,
that is, Zilla Parishad at the district level, and below it, the Mandal Panchayat
consisting of a group of villages covering a population of the 15,000 to 20,000.
(ii) A district should be the first point for decentralization under popular supervision
below the state level.
(iii) Zilla Parishad should be the executive body and made responsible for planning at
the district level.
(iv) There should be an official participation of political parties at all levels of
Panchayat elections.
(v) The Panchayati Raj institutions should have compulsory powers of taxation to
mobilize their own financial resources.
(vi) There should be a regular social audit by a district level agency and by a
committee of legislators to check whether the funds allotted for the vulnerable social
and economic groups are actually spent on them.
(vii) The state government should not supersede the Panchayati Raj institutions. In
case of an imperative supersession, election should be held within six months from
the date of supersession.
(viii) The Nyaya Panchayats should be held kept as separate bodies from that of
development Panchayats. They should be kept as separate bodies from that of
development panchayats. They should be presided over by a qualified judge.
(ix) The Chief Electoral officer of state in consultation with Chief Election
Commissioner should organize and conduct the Panchayati Raj elections.
(x) Development functions should be transferred to the Zilla Parishad and all
development staff should work under its control and supervision.
(xi) The voluntary agencies should play an important role in mobilizing the support of
the people for Panchayat Raj.
(xii) a minister for Panchayati Raj should be appointed in the state council of
ministers to look after the affairs of the Panchayati Raj institutions
(xiii) Seats for SCs and STs should be reserved on the basis of their population.

26
 Due to the collapse of the Janata Government before the completion of its
term, no action could be taken on the recommendation of the Ashok Mahta
Committee at the central level. However, the three states of Karnataka, West Bengal
and Andhra Pradesh took steps to revitalize the Panchayti Raj, keeping in view some
of the recommendations of the Ashok Mehta Committee.

27
 MODULE-II
RD
a. 3 GENERATION PANCHAYAT’S

2nd Generation Panchayat

The All India Panchayat Adhyaksha Sammelan held here on 5th and 6th April
2002 to build a consensus on the measures needed to revitalise the Panchayati Raj
System adopted the following declaration and also urged the Central Government to
effectively monitor the implementation of this Declaration.
The State Governments will take all necessary measures to ensure regular
and timely elections to the Panchayats. Where the elections are due, they shall be
held by December 31,2002.
All State Governments shall take action to devolve Funds, Functions and
Functionaries to the Panchayati Raj Institutions (PRIs) before December 31,2002. In
doing so , they will be guided by the recommendations of the Task Force on
Devolution of Powers and Functions upon Panchayati Raj Institutions.
There is a major mis-match between the responsibilities and the resources of
Panchayati Raj Institutions. The State Governments will do everything required to
ensure by December 31, 2002 that Panchayati Raj Institutions have the requisite
financial resources and powers. In particular, they will implement the
recommendations of the State Finance Commissions and enable the Panchayati Raj
Institutions to raise requisite resources.
In addition, the Union Government is urged to devise an appropriate
mechanism to provide significant non-budgetary resources in the form of loans with
long maturities to PRIs, specifically to be used for such developmental projects as are
planned and executed by PRIs themselves.
The States will ensure that the Panchayati Raj Institutions are empowered to
work as functional institutions duly enjoying the requisite ability to plan and execute
most Developmental works. The Executive should use the powers of superseding the
Panchayats sparingly and only after complaints in this regard are looked into by a
designated Ombudsman (to be headed by a retired judge), to be set up by December
31,2002.
The State Government will, before December 31,2002, place the services of
functionaries at the disposal of the Panchayats. Panchayats shall be given adequet
powers of control and supervision over such staff. Future appointments will be done
by the Panchayati Raj Institutions in accordance with the procedures to be laid down.
All the State Governments will ensure that District Planning Committees (DPCs) are
fully functional by the December 31,2002.The Chairperson of the District Panchayat
will chair the DPC.
State Governments will take action, before 31 December,2002, to ensure that
parallel bodies, if any, particularly at the village level function under the guidance of
the Panchayats.
The institutions of Gram Panchayats and Gram Sabha need to be
strengthened. The Gram Sabha shall meet at least four times a year, preferably on

28
January 26, May 1, Augusts 15 and October 2. The Gram Sabha Meetings will be
attended by concerned Government functionaries for which the State authorities will
issue and ensure compliance of appropriate instructions.
Each Gram Panchayat will have a Panchayat Planning Committee consisting of
the Sarpanch, Members of the Panchayat and User Groups (Self-Help Groups,
Watershed Development Committees, School Committees, etc.) This Committee will
advise the Panchayat in the formulation of Development Plans and assist in
execution and supervision of Programmes.
The Panchayats need to be given adequate control over natural resources -
Land, Water, Minor Forest Produce and Minerals. The State Governments will make
suitable provisions or amendments, before December 31.2002, in the Laws and Rules
governing these subjects.
The functioning of the Panchayats will be in accordance with the 4-point
strategy - Awareness, Participation, Transparency and Social Audit. Necessary legal
provisions in this behalf will be made by the States before December 31,2002.
In order to improve the pace and quality of administration, the facility of
Information Technology will be extended, over the 10th Five Year Plan period to the
Panchayats with the participation of the Central and State Governments.
The Central and State Governments should make adequate provision to
ensure effective training to all the elected representatives as well as other
functionaries of the Panchayati Raj Institutions.
An appropriate structure of incentives will be put in place by the State and
Central Governments to recognise and encourage the Panchayats for outstanding
performance, especially in respect of improvements effected in accepted Social
Development Indicators.
The Sammelan welcomed the proposal mooted by the Hon'ble Prime Minister
to discuss the need for an appropriate new Amendment to the Constitution to bring
about speedy and effective devolution of financial and administrative powers to PRIs.
After detailed discussion, the delegates to the Sammelan unanimously resolved to
urge the Union Government to quickly initiate the process of bringing in the much
needed new Constitution Amendment. The Sammelan also urged all the Political
Parties and Members of Parliament to pass the Amendment and thus usher in the
era of Second Generation of Panchayati Raj Reforms.

3RD GENERATION PANCHAYAT’S

IRCA July 2008: In a path-breaking move the Union Government allows select
private players to manage public pension funds. The entry of private sector players,
albeit only marginally, was a clear hint that the Manmohan Singh government had
not shed its belief in reforms, something that appeared to have been put on the
back-burner after it joined hands with the Left.
But while everyone is again talking of reforms, the issues that appear to be
getting put on the sidelines are: What are the types of reforms the government must

29
go for? What has been the progress on the oft-talked about first and second
generation reforms? What is the unfinished agenda?
As former finance minister Yashwant Sinha said in a recent interview with
Inclusion: "The first generation reforms were initiated by Dr Singh in 1991 while the
second generation reforms were initiated by the BJP-led NDA government. But,
today the need of the hour is to step on the third generation of reforms even as the
government moves beyond the unfinished agenda regarding the earlier reform
measures."
Here, the general viewpoint that is gaining ground is that the government
should use the rest of its term to brainstorm on the next generation of reforms,
setting in place an agenda of action for the new government. The list of pending
reforms is known to all; after all major economic bills relating to banking, insurance
and pension await passage. What the government more importantly has to do is to
initiate steps on the third generation reforms, which are an essential element of its
aim to ensure inclusive growth.
As this issue's cover story highlights, there have been several examples of ICT-
based services bridging the gaps of outreach and infrastructure and it is time that the
government upscales such success stories. If the third generation reforms are about
strengthening delivery systems, then ICT and e-governance efforts have a crucial role
to play.
It is not that the government is unaware of the steps needed on the reforms
front. As the draft report of the high-level committee on financial sector reforms
headed by economist Dr Raghuram Rajan noted that there are deep linkages among
different reforms, including broader reforms to monetary and fiscal policies, and
recognising these linkages is essential to achieve real progress. The Committee
submitted its report earlier this year when the political canvas had a different set of
colours.
The Committee had three major conclusions. Firstly, that the country's
financial system is not providing adequate services to a majority of retail customers,
small and medium-sized enterprises, or large corporations. Government ownership
of a majority of the banking system and hindrances to the development of corporate
debt and derivatives markets have stunted financial development. This will inevitably
become a barrier to high growth, it says.

Second, the financial sector – if properly regulated but unleashed from government
strictures that have stifled the development of certain markets and kept others from
becoming competitive and efficient – has the potential to generate millions of much-
needed jobs and, more important, have an enormous multiplier effect on economic
growth. And lastly, financial stability is more important than ever to keep growth
from being derailed by shocks hitting the system.
And as a recent Goldman Sachs paper notes, some of the most important reforms
that India needs are improved governance; higher basic education levels; a credible
fiscal policy and liberalised financial markets. Of these one of the most important

30
and one that is integral to most other reforms, barring the financial sectors reforms,
is improving access to and quality of education.
Says Sam Pitroda, Chairman of the National Knowledge Commission, India has
the potential to become the workforce supplier to the world. Here, education and
skills development are critical if India is to reap the benefits of its demographic
dividend. Pitroda says it is necessary to scale up the pace of development, both in
education and vocational training. "We can no longer look at growth rates of 5-10
percent, a quantum leap is what is required."
In a more philosophical vein, third generation reforms have to be based on
pursuing rules of the world economy, realising cooperation and mutual confidence
between the state and the citizen. The citizen's confidence is in that the state will
provide him with services in the framework of justice, equality and a real interest in
assisting him to face life burdens. Moreover, the state's confidence in the citizen is as
being a partner, who shoulders the responsibility of assisting it in managing the
resources of its public budget and in monitoring its expenditure. State reform is
much talked-about, but seldom clearly defined and even more rarely implemented.
When it comes to poverty-alleviation, the tendency has been not to reform existing
policies and institutions, but to bypass them.

31
 b. CONSTITUTIONAL STATUS OF RURAL LOCAL GOVERNMENT –
WITH SPECIAL REFERENCE OF 73rd CAA

INTRODUCTION:
In September, 1991, the congress government under P. V. Narasimha Rao
introduced the 73rd (Panchayats) and 74th (Nagarapalika) constitutional amendment
bills. They were referred to a joint select committee of Parliament, the Loksabha
passed the bill in December 22, 1992 while the Rajyasabha passed it the following
day. Following its ratifications by more than half of the state assemblies the
president gave his assent on April 20, 1993, and the Act was brought into force by a
Government notification on April 24, 1993 as the 1992 constitution (Seventy third
amendment) Act.

SPIRIT BEHIND 73RD CONSTITUTIONAL AMENDMENT:

India's democratic structure has three levels of governance - National, State or
regional, and the grass-root levels. Grass root levels are the Panchayati Raj system
covers the village, block and the district. It is at this level that the contact between
the people and their representatives, between the rulers and the ruled can be
intimate, constant, vigilant and managable. It is with this object that 73rd
Amendment has been passed to ensure continuity and uniformity in Panchayati Raj
system in the whole country and to make Panchayats as powerful, efficient and
responsive means of selfgovernance. In this transfer of power to grass roots level
role of gramasabha and elected representatives becomes very important.

GRAMA SABHA 243 A

Gram Sabha is the basic unit of the Panchayati Raj system. All the adults of a
Panchayat constitute the Gram Sabha, for that Panchayat. Over the years, the Gram
Sabha has become weak. The Panchayats begun to function according to the
convenience of the sarpanch. The 73rd Constitutional Amendment says that Gram
Sabha will exercise all such powers as the State Legislature provides. It is only a
strong and powerful Gram Sabha which can provide the basis for strong Panchayati
Raj system.

ROLE OF GRAMA SABHA

Let us now discuss the role that the Gram Sabha can play for the better functioning
of Panchayati Raj. It can:
i) Help the panchayat to identify the problems and needs of the village:
ii) suggest remedial measures for economy and efficiency in the functioning of
the panchayats:
iii) question and criticise the decisions of the panchayats:
iv) discus the Annual Financial Statements of the Gram Panchayats: and
v) Supervise and assess the developmental schemes and suggest new schemes

32
PROVISIONS REGARDING ROLE OF GRAM SABHA IN VARIOUS STATE PANCHAYAT
ACTS
Some states like Himachal Pradesh, Karnataka, Guj'arat, Punjab and Bihar have made
comparatively elaborate provisions regarding the Gram Sabha. They are as follows:
a) A minimum of two meetings in a year of the Gram Sabha with a provision for
extraordinary meetings:
b) Getting voluntary labour and contributions in cash or kind for the community
welfare programmes.
c) Identifying beneficiaries for implementing developmental schemes related to
the village:
d) Helping to implement developmental schemes for the village:
e) Promoting unity and harmony among all sections of society in the Sabha area:
and
t) Seeking clarifications from Pradhan. Up-Pradhan and members of the Gram
Panchayat about any particular activity scheme, income and expenditure.

The Gram Sabha, according to the Acts, may consider the following matters
and make recommendations and suggestions to the Gram Panchayat:
i) The annual statement of accounts of the Gram Panchayat, the Report of the
Administration of the previous Financial Year, the last Audit Note and replies
to that (if any) :
ii) The report of the development programmes of the Gram Panchayat of the
previous year and the development programmes proposed to be undertaken
during the current year:
iii) The programme of adult education within the village: and
iv) Any other matter, which the Panchayat Samithi, Zilla Parishad, Deputy
Commissioner or any other officer authorised on his behalf, may require to be
placed before the Gram Sabha.

CONSTITUTION OF PANCHAYATS (243 B)

(I) There shall be constituted in every State, Panchayats at the village, Intermediate
and district levels in accordance with the provisions of this part.
(2) Notwithstanding anything in clause (1), Panchayats at the intermediate level may
not be constituted in a State having a population not exceeding twenty lakhs.

COMPOSITION OF PANCHAYATS (243 C)

(1) Subject to the provisions of this part, the Legislature of a State may, by law, make
provisions with respect to the composition of Panchayats:
Provided that the ration between the population of the territorial area of a
Panchayat at any level and the number of seats in. such panchayat to be filled by
election shall, so far as practicable, be the same throughout the State.
(2) All the seats in a Panchayat shall be filled by persons chosen by direct election
from territorial constituencies in the Panchayat area and, for this purpose, each

33
panchayat area shall be divided into territorial constituencies in such manner that
the ratio between the population of each constituency and the number of seats
allotted to it shall, so far as practicable, be the same throughout the Panchayat area.
(3) The Legislature of a State may, by law, provide for the representation,-
(a) Of the Chairpersons of the panchayats at the village level, in the panchayats at
the intermediate level or, in the case of a State not having panchayats at the
Intermediate level, in the Panchayats at the district level:
(b) of the Chairpersons of the Panchayats at the intermediate level, in the
panchayats at the district level:
(c) of the members of the House of the people and the members of the Legislative
Assembly of the State representating constituencies which comprise wholly
or partly a Panchayat area at a level other than the village level, in such
Panchayat:
(d) of the members of the Council of States and the members of the Legislative
Council of the State, where they are registered as electors within –
(i) a Panchayat area at the intermediate level, in Panchayat at the Intermediate
level:
(ii) a Panchayat area at the district level, in Panchayat at the district level
(4) The Chairperson of a Panchayat and other members of a Panchayat whether or
not chosen by direct election from territorial constituencies in the Panchayat area
shall have the right to vote in the meetings of the Panchayats.
(5) The Chairperson of -
(a) a Panchayat at the .'village level shall be elected in such manner as the
Legislature of a State may, by law, provide, and
(b) a Panchayat at the intermediate level or district level shall be elected by, and
from amongst, the elected members thereof.

RESERVATION OF SEATS (243 D)

(a) The Scheduled Castes: and
(b) The Scheduled Tribes,
in every Panchayat and the number of seats so reserved shall bear, as nearly as may
be, the same proportion to the total number of seats to be filled by direct election in
that Panchayat as the population of the Scheduled Castes in that Panchayat area or
of the Scheduled Tribes in that Panchayat area bears to the total population of that
area and such seats may be allotted by rotation of different constituencies in a
Panchayat.
(2) Not less than one-third of the total number of seats reserved under clause (1)
shall be reserved for women belonging to the Scheduled Castes or, as the case may
be, the Scheduled Tribes.
(3) Not less than one-third (Including the number of seats reserved for women
belonging to the Scheduled Castes and the Scheduled Tribes) of the total number of
seats to be filled by direct election in every panchayat shall be reserved for women
and such seats may be allotted by rotation to different constituencies in a Panchayat.

34
(4) The Offices of the Chairpersons in the Panchayats at the village or any other level
shall be reserved for the Scheduled Castes, Scheduled Tribes and women in such
manner as the Legislature of a state make by law.
Provide that the number of offices of Chairpersons reserved for the Scheduled
Castes and the Scheduled Tribes in the Panchayats at each level in any State shall
bear, as nearly as may be, the same proportion to the total number of such offices in
the Panchayats at each level as the population of the Schedule Castes in the strate or
of the Scheduled Tribes in the State beaks to the total population of the State
Provided further that not less than one-third of the total number of offices of
Chairpersons in the Panchayats at each level shall be reserved for women.
Provided also that the number of offices reserved under this clause shall be allotted
by rotation to different Panchayats at each level.
(5) The reservation of seats under clauses (1) and (2) and the reservation of offices of
Chairpersons (other than the reservation for women) under clause (4) shall cease to
have effect on the expiration of the period specified in Article 334.
(6) Nothing in this Part shall prevent the Legislature of a State from making an)
provision for reservation of seats in any Panchayat or offices of Chairpersons in the
Panchayats at any level in favour of backward class of citizens.

DURATION OF PANCHAYATS, ETC. (243 E)

(1) Every Panchayat, unless sooner dissolved under any law for the time being in
force, shall continue for five years from the date appointed for its first meeting and
no longer.
(2) No amendment of any law for the time being in force shall have the effect of
causing dissolution of a Panchayat at any level, which is functioning immediately
before such amendment, till the expiration of its duration specified in clause (1).
(3) An election to constitute a Panchayat shall be completed -
(a) before the expiry of its duration specified in clause(,):
(b) before the expiration of aperiod of six months from the date of its dissolution:
Provided that where the remainder of the period for which the dissolved Panchayat
would have continued is less than six months.
It shall not be necessary to hold any election under this clause for constituting the
Panchayat for such period.
(4) A Panchayat constituted upon the dissolution of a Panchayat before the
expiration of its duration shall continue only for the remainder of the period for
which the dissolved Panchayat would have continued under clause (1) had it not
been so dissolved.

DISQUALIFICATIONS FOR MEMBERSHIP. (243 F)

(1) A person shall be disqualified for being chosen as, and for being, a member of a
Panchavat-
(a) If he is so disqualified by or under any law for the time being in force for the
purposes of elections to the Legislature of the State concerned: Provided that no

35
person shall be disqualified on the ground that he is less than twenty-five years of
age, if he has attained the age of twenty-one years:
(b) if he is so disqualified by or under any law made by the Legislature of the
State.
(2) If any question arises as to whether a member of a Panchayat has become subject
to any of the disqualifications mentioned in clause (1), the question shall be referred
for the decision of such authority and in such manner as the Legislature of a State
may, by law, provide.

POWERS, AUTHORITY AND RESPONSIBILITIES OF PANCHAYATS. (243 G)

Subject to the provisions of the Constitution, the Legislature of a State may, by
law, endow the Panchayats with such powers and authority as may be necessary to
enable them to function as institutions of self-government and such law may contain
provisions for the devolution of powers and responsibilities upon panchayat at the
appropriate level, subject to such conditions as may be specified therein, with
respect to a) the preparation of plans for economic development and social justice:
b) the implementation of schemes for economic development and social justice as
may be entrusted to them including those in relation to the matters listed in the
Eleventh Schedule.

POWERS TO IMPOSE TAXES BY AND FUNDS OF THE PANCHAYATS. (1243 H)

The Legislature of a State may, by law, -
(a) authorise a Panchayat to levy, collect and appropirate such taxes, duties, tolls and
fees in accordance with such procedure and subject to such limits:
(b) assign to a Panchayat such taxes, duties, tolls and fees levied and collected by the
State Government for such purposes and subject to such condition and limits.
(c) provide for making such grants-in-aid to the Panchayats from the Consolidatedted
Fund of the State: and
(d) Provide for constitution of such funds for crediting all moneys received
respectively, by or on behalf of the Panchayat also for the withdraw of such moneys
there from as maybe specified in the law.

CONSTITUTION OF FINANCE COMMISSION TO REVIEW FINANCIAL POSITION (243 I)

(1) The Governor of a State shall, as soon as may be within one year from the
commencement of the Constitution (Seventy-Third Amendment) Act, 1992, and
thereafter at the expiration of every fifth year, constitute a Finance Commission to
review the financial position of the Panchayats and to make recommendations to the
Governor as to -
(a) the principles which should govern -
(i). The distribution between the State and the Panchayats or the net proceeds of
the taxes, duties, tolls and fees leviable by the State which may be divided between
them under this part and the. allocation between the Panchayats at all levels of their
respective shares of such process:

36
(ii) the determination of the taxes, duties, tolls and fees which maybe assigned to: or
appropriated by, the Panchayats
(iii) the grants-in-aid to the Panchayats from the Consolidated Fund of the State
(b) The measures needed to improve the financial position of the Panchayats
(c) Any other matter referred to the Finance Commission by the Governor in the
interests of sound finance of the Panchayats
(2) The Legislature of a State may, by law, provide for the composition of the
Commission, the qualifications which shall be requisite for appointment as members
thereof and the manner in which they shall be selected.
(3) The Commission shall determine their procedure and shall have such powers in
the performance of their functions as the Legislature of the State may, by law confer
on them.
(4) The Governor shall cause every recommendation made by the Commission under
this article together with an explanatory memorandum as to the action taken
thereon to be laid before the Legislature of the State.

AUDIT OFF ACCOUNTS OF PAN CHA\'ATS. (243 J)

The Legislature of a State may, by law, make provisions with respect to the
maintenance of accounts by the Panchayats and the auditing of such accounts.

ELECTIONS TO THE PANCHAYATS. (243 K)

(1) The superintendence, direction and control of the preparation of electoral rolls
for, and the conduct of all elections to the Panchayats shall be vested in a State
Election Commission consisting of a State Election Commissioner to be appointed by
the Governor.
(2) Subject to the provisions of any law made by the Legislature of a State, the
conditions of service and tenure of office of the State Election Commissioner shall be
such as the Governor may by rule determine: Provided that the State Election
Commissioner shall not be removed from his office except in like manner and on the
like grounds as a Judge of a High Court and the conditions of service of the State
Election Commissioner shall not be varied to his disadvantage after his appointment.
(3)The Governor of a State shall, when so requested by the State Election
Commission, make available to the State Election Commission such staff as may be
necessary for the discharge of the functions conferred on the State Election
Commission by clause (1).
(4) Subject to the provisions of this Constitution, the Legislature of a State may, by
law, make provision with respect to all matters relating to, or in connection with,
elections to the Panchayats.

APPLICATION TO UNION TERRITORIES. (243 L)

The provisions of this part shall apply to the Union territories and shall; in
their application to a Union territory have effect as if the references to the Governor
of a State were references to the Administrator of the Union territory appointed

37
under Article 239 and references to the Legislature or the Legislative Assembly of a
State were references, in relation to a Union territory having a Legislative Assembly,
to that Legislative Assembly: Provided that the President may, by public notification,
direct that the provisions of this Part shall apply to any Union territory or part
thereof subject to such exceptions and modifications as he may specify in the
notification.

BAR TO INTERFERENCE BY COURTS IN ELECTORAL MATTERS (243 O)

Not with standing any in this Constitution.
(a) the validity of any law rotating to the delimitation of constituencies or the
allotment of seats to such constituencies, made are purporting to be made under
article 243k, shall not be called in question in any court:
(b) no election to any Panchayat shall be called question except by an election
petition presented to such authority and in such manner as is provided for by or
under any law made by the legislature of a State.

AMENDMENT OFF ARTICLE 280

In clause (3) of Article 280 of the constitution, after sub cause (b), the
following sub-clause shall be interested, namely:
the measures needed to augment the consolidated fund of a state to supplement the
resources of the panchayats in the state on the basis of the recommendations made
by the Finance Commission of the state.

ELEVENTH SCHEDULE (A243 G)

After the Tenth Schedule to the Constitution, the following schedule shall be added,
namely:
*eleventh Schedule (Article 243 G)
1. Agriculture, including agricultural extension.
2. Land improvement, implementation of land reforms, land consolidation and soil
conservation.
3. Minor irrigation, water management and watershed development-
4. Animal husbandry, dairying and poultry.
5. Fisheries.
6. Social forestry and farm forestry.
7. Minor forest produce,
8. Small-scale industries, including food processing industries
9. Khadi, village and cottage industries.
10. Rural housing.
11. Drinking water.
12. Fuel and fodder.
13. Roads, culverts, bridges, ferries, waterways and other means of communications.
14. Rural electrification, including distribution of electricity
15. Non-conventional energy sources.

38
16. Poverty alleviation programme.
17. Education including primary and secondary schools.
18. Technical training and vocational education.
19. Adult and non-formal education.
20. Libraries.
2 1. Cultural activities.
22. Markets and fairs.
23. Health and sanitation, including hospitals, primary health centres and
dispensaries.
24. Family welfare
25. Women and child development.
26. Social welfare, including welfare of the handicapped and mentally retarded.
27. Welfare of the weaker sections, and in particular, of the Scheduled Castes and
the Scheduled Tribes.
28. Public distribution system.
29. Maintenance of community assets."

CONCLUSION
Delineating the factors for the constitutional seventy third amendment and
analysing the functions of Panchayat Raj Institutions in the country there in the need
to have a further amendment to revitalise Panchayat Institutions and make them
vibrant institutions in the country. Although .hopes were pinned down by providing
constitutional status to Panchayat Raj Institutions is a central practice, at operational
level, they were saddled with a variety of problems grama Sabha which was pilot of
Panchayati Raj in the New Panchayati Raj in is the new Panchayati Raj dispensation
was sidelined to a corner in some states There were some other impediments too
attaching the functioning of Panchayat Raj Institutions in respect of structural
pattern of Panchayati Raj composition of Panchayats, organic linkages of Panchayati
Raj institutions direct checkings to Panchayati Raj Institutions, representations of
MLAs. MLCs and MPs in Panchayati Raj Institutions, the concept of rotates in the
case of reserved seats, devolution of powers and functions to Panchayati Raj
Institutions be seancratic control new Panchayati Raj Institutions, function
devolution and financial devolutions etc. So there is a need to making another
amendment to the constitutions to rectify the commodities for a decentralised
governance. ;

39
 MODULE-III: LOCAL ORGANISATIONS FOR RURAL DEVELOPMENT
a. PANCHAYATI RAJ: PATTERN, FUNCTIONS & PERFORMANCE

Q. Describe the different patterns and functions of Panchayati Raj in the state of
Telangana. (15 M)
VLLAGE PANCHAYAT
It is the lowest unit in the set-up of the rural local governments. The
village panchayat consists of four organs viz.,
1. Panchayat
2. Sarpanch .
3. Secretary
4. Gram sabha

PANCHAYAT - It works as the deliberative wing of the village. It consists of a

Sarpanch, Vice Sarpanch and some ward members elected by the voters of the
village for five years. The membership is 5 to 21. The Sarpanch presides over
the meetings of the panchayat. The records of the panchayat are maintained
by the Secretary who is appointed by the state government. Some officers of
the state government attend the meetings as permanent members. Some seats
are reserved for the SC, STs, women and weaker sections. Different states
identify the panchayats with different names like nagar panchayat, town
panchayat, kar samithi etc.

GRAM SABHA - There will be a gram sabha in every panchayat which consists
of all the registered voters of village panchayat. It meets at least thrice a year
and approves all administrative and audit reports. It works into the
development programs and also takes steps for mobilizing voluntary labour for
community welfare programs.

SARPANCH - He is the political head of the panchayat and presides over the
meetings of panchayat and gram sabha. He exercises administrative control
over the panchayat secretary. He advises regarding implementation of various
panchayat resolutions. The agenda of the meetings are prepared on his advice
by the secretary.

FUNCTIONS: It exercises two important functions

1. Essential Functions - These have to be exercised without fail like
i) Construction, maintenance of roads and other public places, drainage, canals,
burial grounds, footpaths, culverts, public parks, play grounds etc.
ii) Erection and maintenance of electric poles.
iii) Registration of births and deaths.
iv) Provision of drinking water facilities.
v) Manufacture and sale of manures and maintenance of cattle farms.

40
2. Discretionary Functions - These functions are performed as per availability of
financial resources.
i) Construction and maintenance of rest houses.
ii) Construction and maintenance of primary schools, dispensaries, libraries,
reading rooms, market places etc.
iii) Establishment and maintenance of maternity and child welfare centres. iv)
Publishing modern methods of cultivation.
v) Implementation of land reforms.

SOURCES OF INCOME
a) Grants-in-aid from state and union governments. (As per recommendations of
Finance Commission)
b) Funds for centrally sponsored schemes.

MANDAL PARISHAD
It is the middle level local body in the district which is set up as per
the statutes of state government. It consists of four organs namely
1. Mandal Parishad 2. Mandal Parishad President
3. M.P. Development officer 4. Mandal Mahasabha

MANDAL PARISHAD - It is the legislative and deliberative wing of the Mandal.

It consists of elected, co-opted and ex-officio members. The District Collector,
Village Sarpanchas, Z.P.T.C members, Z.P.Chairman and Agricultural Marketing
Committee Chairman attend the meetings as permanent invitees. Every Mandal
Parishad is devided into territorial constancies. The mebers elected from these
constituency are known as MPTCs will have a president and a vice-president,
elected by the members of the Mandal Parishad. Some posts are reserved for
SC, STs, weaker sections and women. It has a tenure of five years.
There will be a Mandal Parishad Development Officer (MPDO) for
every Parishad. He acts as the chief executive head of the parishad appointed
by the state government under its control. There will be a Mandal Mahasabha
in every Mandal Parishad. It consists of the sarpanchas of the village
panchayats and members of Mandal Parishad. The Mandal Parishad president
presides over its meetings. The MPDO convenes its meetings on the advice of
Mandal Parishad president. Mandal Mahasabha worked as a link between
Mandal Parishad and villages. It discusses the matters of annual budget audit
report and administrative report of the previous year.

MANDAL PARISHAD PRESIDENT - acts as the political head of the Mandal

Parishad. He presides over the meetings of the Mandal Parishad. He works up
the date and agenda in consultation with MPDO. He controls the MPDO in
the working of various resolutions of the Mandal Parishad. He also takes

41
suggestions from non-political, eminent, experienced persons in the functioning
of the Parishad.
MANDAL PARISHAD DEVELOPMENT OFFICER (MPDO) - is the administrative
head of Mandal Parishad. He has an important role in the administration and
prepares the agenda of the meetings, participates in it and renders advice to
members in the meetings on various matters. He prepares the annual budget.

FUNCTIONS OF MPDO
Functions of Mandal Parishad
1. It implements various community development programs.
2. It arranges for amenities like dispensaries, drinking water, vaccination
and non-choking gas stoves.
3. It takes steps for raising production in agricultural sector through
superior quality seeds, manures, pesticides and advanced technology.
4. It implements programs like community education, communication,
cottage industries, women and social welfare.

It receives revenue from various sources. Funds from union and state
governments, community development grants, levies from village panchayats,
public donations and aid from All India Organizations.

ZILLA PARISHAD
There will be a Zilla Parishad in every District. It is the superior local body at
district level.

COMPOSITION - Consists of six organs

1. Zilla Parishad 2. Zilla Parishad Chairman 3.Zilla Mahasabha 4.Chief
Executive Officer 5. Standing Committees and 6. District Collector

ZiLLA PARISZIHAD - It is the legislative wing of the district level. It consists of

ZPTCs elected. The ZP Geographical area is divided into territorial constituencies. The
members elected from these constituencies by the people for a period of 5 years is
known as ZPTCs. co-opted and ex-officio members. District level authorities
like District Collector, Chairman of District Cooperative Central bank, District
Cooperative Marketing Society and Zilla Grandhalaya Samastha participate as
permanent invitees. The members of state legislative assembly and Lok Sabha
participate in the meetings as exofficio members.

FUNCTIONS OF ZP CHAIRMAN/PRAMUKH
1. The Pramukh presides over the meetings of the Zilla Parishad and conducts its
meetings.
2. He pays visit to the Panchayats Samitis to enthuse them and to inspect their work.
He places his report regarding their work before the Zilla Parishad.

42
3. He sends a report to the Collector regarding the work of the Secretary of the Zilla
Parishad.
4. Where Zilla Parishad is executive body, he possesses considerable administrative
powers to deal with emergencies*
5. He supervises the Chief Executive officer for implementing the resolutions and
orders of the council.
6. He submits confidential report to the commissioner
7. He can pass remarks on confidential reports of class I and II officers as submitted
by the Chief Executive officer.
8. He can have access to the records of the council.
9. in emergency, he can direct the execution of any work pertaining to the district
body.

ZILLA MAHASABHA
There will be a Zilla Mahasabha in every Zilla Parishad. It has a
chairman and some other members of Zilla Parishad. It works as an advisory
body to the Zilla Parishad and the Zilla Parishad chairman presides over its
meetings. The Chief Executive Officer attends its meetings in ex-officio capacity.
It performs three important functions namely
1. Examining the annual budget and audit reports of Zilla Parishad.
2. Administrative report of the previous year and
3. Other matters of Zilla Parishad.

CHIEF EXECUTIVE OFFICER (CEO)

There will be a Chief Executive Officer in every Zilla Parishad, appointed by
the State government, is responsible to the State government and Zilla
parishad in exercising his powers and functions. He serves as the administrative
head of the Z.P. He prepares the annual budget and agenda for the general
meetings of Zilla Parishad along with Z.P.Chairman. He has control over the
personnel, assets and records of Zilla Parishad. He takes steps for implementing
the decision of Z.P., Zilla Mahasabha and Standing Committees.

STANDING COMMITTEES
The zilla parishad functions through a number of standing committees elected by
general body. These committees generally deal with the following subjects (1)
Community development, (2) Agriculture cooperative, irrigation and power and
animal husbandry, (3) Industries including cottage, village and small-scale industries,
(4) Education and social welfare, (5) Finance and taxation, and (6) Public health.

Functions
In most States, the zila parishad functions as a supervisory and coordinating body,
the pivotal role being reserved for the panchayat samiti. However, in some of the

43
States, it is an executive body, the Panchayat Samiti being merely its agent and
appendage: Broadly speaking, the functions of a zila parishad are as follows:
1. It examines and approves the budget of panchayat samitis in the district.
2. It issues directions to the panchayat samitis for efficient performance of their
functions.
3. It coordinates development plans prepared by the panchayat samitis. It also
coordinates interblock activities.
4. It advises the State government on all matters relating to development
activities in the district.
5. It informs the district collector and the divisional commissioner about
irregularities, if any, committed by any pancltayat or panchayat samiti in the
district.
6. It distributes funds, allocated by the State government to the panchayat
samitis in the district.
7. It collects statistics relating to the activities of local authorities in the district.
8. It exercises such powers an performs such functions as may be assigned to it
by the State government)

REVENUE:- SOURCES OF INCOME

The sources of income of the zila parishads may broadly be classified into four
categories : taxes, non-tax revenue, grants from the State government and
miscellaneous. A few States have given to the zila parishad the power to levy taxes. It
is significant that in all States the zila parishad looks to the government for funds for
meeting its expenditure. It depends on the State government for grants-in-aid, share
of land cess and local cesses. Self-raiked taxes and cesses.constitute only a fraction of
the total income of the zila parishad.

Role of the Collector in Panchayati Raj

The office of the collector was called upon to play a prominent role in the
implementation of development programmes in free India. Introduction of
community development and national extension programme in 1952 and 1953
added further importance to the traditional prestige and position of the collector.
This completely changed the emphasis of the duties of the collector.'From regulatory
activities the emphasis now shifted to development activities. The introduction of
panchayati raj in 1959 added a new dimension to the developmental activities of the
collector. The Balwantrai Mehta Committee recommended that the collector should
be closely associated with the new institutions of panchayati raj and he should be the
chairman of the Zila Parishad.-When the different states interpreted the
recommendations in different ways and prepared legislations for panchayati raj in
their respective states, it was found that different roles were assigned to the
collectors of different states. A scholar can discern three different models of
panchayati raj from the point of view of the role of the collector in it. In some of the
states like Andhra Pradesh and Tamil Nadu, the involvement of the collector is

44
manifold. Starting from the Zila Parishad to the gram panchayat level he is invested
with wide and sweeping powers to exercise. He is the kingpin of development
activities. He is the chairman of the District Development Council. At the other
extreme falls the Maharashtra model where, as in Madhya Pradesh and West Bengal,
the collector has been kept outside the Zila Parishad. The collector has nothing to do
with the working of the Zila Parishad and is not even a member of it. In the third
category come states like Assam, Gujarat, Punjab and Rajasthan. In these states the
collector is a member of the Zila Parishad but without the right to vote. Legislation in
these states postulates that the collector should be associated with the Zilla Parishad
in an advisory capacity and does not envisage any active involvement of the collector
with the decision-making process. However, in Rajasthan, the collector has not been
completely dissociated with development work. The Rajasthan Panchayati Samitis
and Zila Parishad Act has designated the collector as the District Development
Officer.
Because of the introduction of the panchayati raj and assigning of
developmental role to the panchayati raj institutions there arose a controversy
during the sixties relating to the utility of the office of the collector in mid and late
sixties. This controversy shook the citadel of the collector temporarily but it survived
the shock.

FUNCTIONS OF ZILLA PARISHAD

1. It approves the annual budget of the Mandal Parishads in the district.
2. It allocates the grants given by the union and state governments among
the Mandal.
3. It takes various measures to implement the directives of the union and
state governments.
4. It maintains secondary schools in the district.
5. It renders advice to the union and state governments on financial
matters of the village panchayats and mandal parishads.
6. Zilla Parishad implements its activities based on the grants of union and
state governments, contributions from Mandal Parishads and public
donations.

PANCHAYATI RAJ AND RURAL DEVELOPMENT

INTRODUCTION:
Rural development as a whole is very dynamic and is very much related to the
social and economic development through agriculture and related activities along
with the traditional home-based occupations. Among the developing countries, it has
been identified as an important sector if not the major one, and hence demands
detailed discussion and analysis. In developing countries like India, it was also a
major theme of debate among the national leaders engaged in the struggle for
independence. An attempt was made to define the strategy to be adopted when the

45
country would achieve independence. The analysis of the post-independence period
in terms of programmes, organisation structure and performance of various
initiatives demand a historical analysis in the line of integrative coordinated method.
Rural development is a very complex and multidimensional phenomenon, Due
to this reason, it is necessary to understand its meaning and content before going
into the details of the study. However, it is not unusual to read studies of rural
development including anti-poverty strategy without any theoretical or conceptual
framework, the process of development, whether only in rural areas or in general,
which is more important, is analyzed with certain ideological view points either
openly or not so openly in the name of scientific research. Such a, situation is very
much related to the old controversy of value free research applying some "scientific
method" discussed in all the common text books of social" science research
methods.

MEANING OF RURAL DEVELOPMENT:

Rural development means development of rural areas with human and
natural resources. It is one of the major objectives of the government. It is also one
of the main concerns of planning strategy in India since 1951-52. The Government of
India has evolved Institutional strategy and special Programme strategy to ensure
rural development. Panchayat Raj is one of institutional strategies aimed at bringing
rural development.

PANCHAYAT RAJ :
More than 70% of the population live in rural areas in India to achieve
economic democracy along with political democracy and to provide a framework for
people's participation, Panchayat Raj institutions are necessary. There is a mention
about local institutions in the part-IV of the Indian constitution. Art, 40 says that,
"The state shall take steps to organise village panchayats to endow them with such
powers and authority as may be necessary to enable them to function as units of
self-government".

THE PANCHAYAT RAJ AND DEMOCRATIC DECENTRALISATION :

A new phase in local government was ushered in by democratic
decentralization to make lower units of administration more popularly elected, more
socially broad-based, and more engaged in a wider range of activities than hitherto.
The philosophy of decentralization claims that ail powers and responsibilities
regarding development matters intimately affecting, the rural people should belong
to a viable socio-economic community. The exceptions would be those and
responsibilities which can be better exercised some other governmental
organization, at a higher level and for a larger area of operation, and those
technological improvements which favour larger units of administration. The unit of
local government must be sufficiently small so that people can understand it. It must
be sufficiently near so that people can live up to its expectations.

46
FOCUS&ON PANCHAYAT RAJ IN FIVE YEAR PLANS AND THE REPORTS OFTHE
VARIOUS COMMITTEES:
Free India has been 'much concerned to fulfill Gandhiji's promise and to
implement the constitutional directive; the first five year plan declared that "from
now on, the primary emphasis in district administration has to be on the
implementation of development programmes in close cooperation with the active
support of the people". The second Five Year Plan also gave special attention to the
development of local government, and urged that the village panchayats, along with
cooperatives, strive to bring about a more just and integrated social structure in rural
areas. The Local Finance Enquiry Committee, 1951, and the taxation Enquiry
Commission, 1954 have both recommended strengthening the local revenue base in
order that the states political sub-division may have the strength to be the
foundation of the new socialist pattern of society.

PANCHAYAT RAJ INSTITUTIONS AND RURAL DEVELOPMENT:

Panchayat Raj which is equated with democratic decentralization and "three-
tier system" is working as both training and information centers. Panchayat Raj
institutions are contributing to rural development in the. following ways:

ECONOMIC GROWTH:
This vitally depends upon the performance levels of organizations involved in
development: The tasks of poverty, unemployment, low productivity, low
consumption and literacy levels etc. demand urgent action. This involves, in it two
things: (a) Local Specific Planning (b) Intensive utilization of local resources. Effective
implementation of development programmes demand these above conditions. For
this the machinery of panchayat Raj is necessary.

MODERNISATION:
the secular outlook needed to the process of modernization can be attained only
through Panchayat Raj. Strong desire "to get developed', increase in productivity,
active participation of people in governmental affairs, proper utilization of human
and natural resources, and bidding good-bye to old techniques indicate
modernization.

POLITICISATION:
The inducting of people into political processes and policies" is known as
politicization. This is attained through periodical elections and effective local
leadership.
The process of development would gain momentum only through politicization.

SOCIAL CHANGE:
Development is not only economic but social also. To get out of the clutches
of caste system and give an opportunity to the weaker sections of the society, the

47
system of Panchayat Raj is necessary. These institutions are playing a vital role in
motivating the people inducing in them the secular attitudes and urging tile people
to break with tradition bound customs. It is helping the cultivation of scientific
temper among the people.

PLANNING:
Decentralization in planning is made possible. Unless local institutions are not
constitutional as the part of constitutional government, the democracy remains as a
dream only.

CONCLUSION :
Panchayat Raj fills in the organizational gap in the implementation of policies
and programmes relating to rural development. They strengthen the base of
democracy it the gross root level. Panchayati Raj played a vital role for rural
development in India.

48
 b. FINANCES OF PANCHAYATHI RAJ INSTITUTIONS-STATE FINANCE
COMMISSION

Q. Panchayati Raj institutions are financially not autonomous. Comment. (15 M)

INTRODUCTION
There has been a remarkable rapid expansion of the activities of the
government particularly during the Panchayat Raj phase. The Panchayati Raj
institutions, in this context, have a significant and clear role as developmental
agents. As their performance depends on the provision of adequate finances, many
committees and commissions suggested the improvement of finance of local bodies.

The Rural-Urban Relationship Committee (1966) observed that "the state

government had by and large ignored the pressing recommendations of the
committee and commissions previously appointed and that if local bodies were to be
made financially self reliant, they should be assured of adequate sources of revenue
to meet the cost of their essential services",
In the following pages an attempt is made to study major financial resources
of the three-tier systems of Panchayati Raj in different states.

THE FINANCIAL RESOURCES OF PANCHAYAT RAJ INSTITUTIONS

(1) Proceeds from taxes levied by them : (2) Fees and charges imposed 3) income
from property : investments and remunerative enterprises (4) Assistance received
from state government : and (5) Public contributions, donations. etc-
The taxes that can be lived by the Panchayat differ from, state to state. The
various taxes, fees and income from other sources may broadly be categorized as
follows : house tax, professions tax, vehicle tax on transfer of immovable property,
tax on bus stands, fees from sale of goods and animals in Panchayat markets,
drainage fee, tax for arranging water supply income from hats or markets, tanks,
octroi, tolls on vehicles and pack animals, and sanitary cess. The nature of taxes
levied by the Gram Panchayats varies from state to state. Some states made taxes
levied by Gram Panchayats as optional or obligatory. Whereas in the other state
these taxes are made compulsory. The study team on Panchayati Raj Finances
reviewing the resources of. Panchayats in different states recommended that house
tax, procession tax, profession tax and vehicle tax should be compulsory levied by
Panchayats.
The financial resources of Panchayat Samithis very little from state to state as
the functions entrusted to these bodies are almost similar. The Panchayati Samithis
in Andhra Pradesh and Orissa do not has power of taxation, though in Andhra
Pradesh a same an impose a surcharge. Discussing the resources of Panchayat
Samithis, the Santhanam Committee suggested that the procedure flawed in Madras
of placing all grants under the CD schematic budget and those from the state
departments and of evolving a development schematic budget for Samithi may be
examined by all other state governments. It recommended an annual average per

49
capita grant of one rupee to be made to each Samithi to be ear marked for maintains
of staff on an agreed pattern. The expenditure should be shared equally by the state
and central government. A very important suggestion made by it was that Rs. 10 per
capita should be allotted in the Fourth Plan of the central government for
unspecified local development works to be given on a matching basis.
The Financial resources of Zilla Parishads cannot be considered in isolation
from there functions. The position may be summarized as follows.
It is in the highest tier of Panchayati Raj that the difference in functions are
the greatest. At one end stands the Zilla Parishad of Maharastra which is conceived
on a generous scale and is designed to take over the entire functions of the
government at the district levels. At the other end, stands the districts development
council in Madras which is purely advisory, which as no funds of its own and of which
the district collector is the chairman. Other Zilla Parishads may be divided into two
categories : (i) The Zilla Parishads of Mysore, Rajasthan, Punjab, Uttar Pradesh and
Orissa are essentially advisory but they also have functions of supervisions and co-
ordination of the work of Sainithis and Panchayats : (ii) In Andhra Pradesh, Assam
and Gujarat, the Zilla Parishads have not only advisory and supervisory functions but
also some executive functions. In Andhra Pradesh Zilla Parishads manages the
government secondary, vocatio al and industrial schools distributed plan funds and
determines the increased annual quota of teachers etc. among Samithis.
In view of these wide variations, the Study team on Panchayati Raj finances did not
think it necessary or useful to go into the issue of the functions verses resources of
Zilla Parishads but it made some genera! observations that whenever funds are
transferred to Zilla Parishads for redistribution among Samithis there should be
definite principles and criteria laid down for such distribution and where the
distribution is more or less automatic, there is no purpose in channeling these funds
through Zilla Parishads and they may be sent directly to Panchayat Samithis or
Panchayats concerned.
According to the Narasimham committee, the grants given to the Zilia
Parishads in Andhra Pradesh and the funds available to them for maintaining and
improving district roads are totally inadequate. The independent sources of income
of Zilla Parishads are more or less the same as what the old district board had viz.,
items like income from ferries, canals, license fees, rents from land buildings,
fisheries, sale proceeds of threes, fines and cattle pounds. The Act provides for a few
other sources of income like tax on vehicles and animals tools etc., besides raising of
loans. The Zilla Parishads have not so far tapped these sources.
State Governments do provide small loans grants to Panchayati Raj
institutions for the buildings up of remunerative assets. The Study Team on
Panchayati Raj institutions for the building up of remunerative assets. The Study
Team on Panchayati Raj Finances was convinced that loans to Panchayati Raj bodies
for purpose of undertaking public utility works, construction of shops, markets etc.,
which will ensure a study and growing income, purchase of tractors, pumping sets,
agricultural implements and other equipment to be hired out to agriculturists and

50
cooperative societies, and for plantations and for afforestation, scientific pisciculture
and several kinds of remunerative industrial undertakings, cannot adequately be
given by the state departments and even where it is possible, it is desirable to give
them through a special institution which will function purely as a financial concern,
free from any kind of political influence. So, it recommended that every state
government should establish a Panchayati Raj Finance Corporation with a authorized
capital of one to five crores of rupees.
If the avowed object of improving the rural areas, particularly the conditions
of weaker sections, is to be achieved, the Narasimham Committee felt that the
existence of a financing organization like Panchayati Raj Finance Corporation in the
state of Andhra Pradesh was Absolutely necessary.
In order to find out a proper arrangement for the financial ; sources of
Panchayats, the Democratic Decentralization Committee of Gujarat headed by Parikh
had suggested that a State Financial Board should be constituted to go into this
matter. Grants can be categorized as general purpose grants and specific purpose
grants. The general purpose grants can be utilized by the local bodies in any manner
they desire and are usually made use of for meeting the establishment expenses and
for discharging other functions for which they have no separate grants-in-aid. These
can be appropriately sanctioned lumpsum every year in the month of April itself.
Grants given for a specific purpose. For example, drinking water, have necessarily to
be pooled at the Samithi level and accounted preferably under a single head. One of
the causes contributing to delay in the funds reaching the Panchayati Raj bodies is
the necessity for issue of authority slips in each individual case by the Accountant
General.
The difficulty can be overcome if, in accordance with the existing rules, the
governments or other suitable subordinate authorities and authorize them to
sanction payments. Generally the land cess and the portion of land revenue which
are the main items transferred usually by state to the Panchayati Raj institutions are
capable of reasonable estimates with reference to the collection for the past three or
four years There are, other types of proceeds like the surcharge on stamp duty or
entertainment tax which are likely to vary from year to year. In such cases the grants
to Panchayat bodies will necessarily have to be related to current collection.
The next important factor governing effective flow of funds is the number of
levels, government as well as Panchayati Raj, through which a particular tax has to
flow. In cases like the land cess where the proceeds could be reasonably estimated
and full figures are more easily availably with the collector rather than the
government, the adjustment should be left to the collector. A similar estimate can be
made in respect of other taxes like surcharge on stamp duty and entertainment tax.
Reference among departments either at government level or at lower levels could be
minimized or even dispensed with after standing the procedure in consolation with
all concerned. Similarly, where a particular tax revenue has to go statutory to a
particular tier of Panchayati Raj institution, it seems unnecessary to channel it
through the higher tiers.

51
 Financial resources of Panchayati Raj in Andhra Pradesh -Financial sources of
Grama Panchayats
Taxes leviable by Gram Panchayats-d) A Gram Panchayat shall levy in the village ;
(a) a House-tax
(b) `Kolagaram', or `Katarusum' that is to say, tax on the village produce sole in the
village by weight measurement or number subject to such rules as may be
prescribed;
(c) such other tax as the Government may, by notification, direct any Gram
Panchayat or class of Gram Panchayats to levy subject to such rules as may be
prescribed;
Provided that no such notification shall be issued and no such rule shall be made
except with the previous approval of the Legislative Assembly of the bate.
(2) A duty shall also be levied on transfers of property situated in the area under the
jurisdiction of the Gram Panchayat in accordance with the provisions of Section 69.
(3) Subject to such rules as may be prescribed the Gram Panchayat may also levy in
the village;-
(i) a vehicle tax;
(ii) a tax on agricultural land for a specific purpose;
(iii) a land-cess at the rate of two naya paise in the rupee on the annual rental
value of all occupied lands which are not occupied by or adjacent and
appurtenant to buildings;
(iv) fees for use of porambokes or communal lands under the control of the Gram
Panchayat;
(v) fees for. the occupation of building including `chavadies' and 'satais' under the
control of the Gram Panchayat.
(4) Every Gram Panchayat may also levy a duty in the form of a surcharge on the fees
collected by the Government on materials other than minerals and minor minerals
quarried in the village provided that the rate it which such duty shall be levied shall
be fixed by the Gram Panchayat with the previous approval of the Government
(5) Every Gram Panchayat may, with the previous approval of the prescribed
authority also levy, in respect of lands lying within its jurisdiction a duty in the form
of a surcharge. at such rate, not exceeding twenty-five naya paise in the rupee, as
may be fixed by the Gram Panchayat-
(a) in the Andhra area, on the land cess, leviable under Section 78 of the Andhra
Pradesh(Andhra Area) District Boards Act, 1920 (Act XIV of 1920) and on the
education tax leviable under section 37 of the Andhra Pradesh Education Act, 1982
(1 of 1982) ;
(b) in the Telangana Area, on the local cess leviable under Section 135 of the Andhra
Pradesh (TelanganaArea) District Boards Act 1955 (1 of 1956) and on the education
tax leviable under Section 37 of the Andhra Pradesh Education Act, 1982 (1 of 1982)
(6) Any resolution of a Gram Panchayat abolishing an existing tax or reducing the rate
at which a tax is levied shall not be carried into effect without he previous approval
of the Commissioner.

52
FINANCIAL SOURCES OF MANDAL PARISHAD
(1) All money received by a Mandal Parishad shall constitute a fund called the
Mandal Parishad Fund and shall be applied for the purposes specified in this Act and
for such other purposes and in such manner as may prescribed.
(2) All money received by the Mandal Parishad shall be lodged in the nearest
Government treasury.
(3) All orders or cheques against the Mandal Parishad Fund shall be signed by the
Mandal Parishad Development Officer.
(i) Funds relating to institutions and schemes transferred by the Government or
Heads or Departments of the Government to the Mandal Parishad;
(ii) Funds relating to the community development programmes ;
(iii) Central and state aid and aid received from the all India bodies and institutions
for the development of cottage, and village industries, khadi, silk, coir, handicrafts
and the like;
(iv) Donations and contributions received by the Mandal Parishad from Gram
Panchayats or from the public in any form
(v) Such income of the Zilla Parishad as the Government may, by order, allocate to it;
(vi) Such share of the land revenue, state taxes or fees as may be prescribed ;
(vii) Proceeds from taxes, surcharge or fee which the Mandal Parishad is empowered
to levy under this Act or any other law ;
(viii) Such contributions as the Mandal Parishad may levy from Gram Panchayats ;
(ix)' Any other income from remunerative enterprises and the like
(2) Government shall also make and annual grant at the rate of five rupees per
person residing in the Mandal calculated on the basis of the last preceding census of
which figures are available
(3) The expenses of the Mandal Parishad shall include the salaries and allowances of
its officers and other employees, the allowances to be paid under Sections 159 and
170 any item of expenditure directed by the Government for carrying out the
purposes of this Act and such other expenses as may be necessary for such purposes.

FINANCIAL SOURCES OF ZILLA PARISHAD

(1) All moneys received by the Zilla Parishad shall constitute a fund called Zilla
Parishad Fund, and shall be applied for the purposes specified in this Act and for such
other purposes and in such manner as may be prescribed.
(2) All moneys received by the Zilla Parishad shall be lodged in the nearest
overnment' Treasury.
(3) All orders or cheques against the Zilla Parishad Fund shall be signed by the Chief
Executive Officer.
Income and expenses of a Zilla Parishad (1) The sources of income of Zilla Parishad
shall consist of -
(i) The Central or State Government funds allotted to the Zilla Parishad;
(ii) Grants from All India bodies and Institutions for the development of cottage,
village and small scale industries and the like ;

53
(iii) Such share of the land cess or local cess. State taxes or fees as may be
prescribed ;
(iv) Proceeds from taxes or fees which the Zilla Parishad ; may under any law, levy
(v) Income. from endowments or trusts administered by the Zilla Parishad;
(vi) Such income of the District Board as the Government may by order, allocate
to it;
(vii) Donations and contributions from the Mandal Parishads or from the public in
any form ;
(viii) Such contributions as the Zilia Parishad may levy from the Mandal Parishad
with the previous approval of the Government ;
(ix) Any other income from remunerative enterprises and the like.
(2) The Government shall also make an annual grant at the rate of two rupees per
person residing in the District calculated on the basis of the iast preceding census of
which figures are available.
3) The expenses of the Zilla Parishad shall include the salaries and allowances of its
officers and other employees, the allowances to be paid under Section 189 and
Section 196, any item of expenditure directed by the Government for carrying out
the purposes of this Act and such other expenses as may be necessary for such
purposes.
4) If, in the course of a year, the Z.P. finds it necessary to make any alterations in the
budget with regard to its receipts or items of expenditure a revised or supplemental
budget may be granted submitted and sanctioned or approved as for as my be in to

OTHER SOURCES OF INCOME

Income from agency functions, donations and other types of voluntary
contributions comprise this source of income.
It will be relevant to point out that in some states, certain taxes are obligatory
whereas in others, they are optional. For example. Professional tax is compulsory in
Andhra, Madhya Pradesh, Madras, Mysore and Kerala. Likewise, House tax is
compulsory in all the above States as well as in Maharashtra and Punjab. In Gujarat,
Assam, Rajasthan, Uttar Pradesh, Jammu and Kashmir, all taxes are optional.
The income of the Panchayat varies from state to state and from Panchayat to
Panchayat within the same state. The average income of Panchayat in Bihar and U.P.
is about 25 paise per capital whereas in Gujarat it is Rs. 3 and Rs. 4 per capita. The
highest per capita income was recorded at Rs. 17.86 per capital in Takhatgrah
Panchayat of Rajasthan whereas the lowest per capita income was recorded at Rs
0.80 in some Panchayat of Bihar.

HEADS OF EXPENDITURE
The paucity of funds leads to incurring of low expenditure on obligatory and
discretionary functions and high ratios of administration costs to the total
expenditure. The expenditure level also varies from sate to state, from year to year

54
and from Panchayat to Panchayat. The heads of expenditure are administration; civic
amenities, social welfare, construction, maintenance and miscellaneous.
A study team on Panchayati Raj finances recommended an expenditure of Rs.
5 per capita as an immediate target. Keeping in view the civil developmental
functions of the Panchayats this is hardly an ambitious target. The Panchayats are
apt to lose prestige, if they do not perform all these functions satisfactorily. At
present, the highest chunk of the Panchayat income is spent on administration. Less
than 5% is spent on Education, Social Welfare and Public Safety. Only one-ninth of
the' total expenditure is incurred on public health, sanitation and water supply.
Public works receive approximately one fourth of the total. It is estimated that in
majority of the Panchayats not more than 60% of the total (Panchayats) expenditure
is devoted to municipal and developmental functions.

PROBLEMS OF RESOURCES
LACK OF WILL/ABILITY TO IMPOSE TAXES
Taxes, in general are compulsory payments for which no direct quid pro quo
can be established on the part of the tax imposing authority. The tendency is to
evade-paying them and hence, the need arises for tax-enforcement machinery. No
such machinery is available to P RIs. They do not have the wherewithal to take action
against those who do not pay their taxes. Thus, there can be no teeth in the tax
collection efforts of PRIs. In absence of which meager amounts are collected.
Moreover, potential taxpayers are those who form the upper economic crust of the
village population ; these are typically powerful segments, from whom tax collection
is an uphill task. In addition may of these powerful sections find a representation
directly or indirectly in the PRI decision making body itself and are in a position to
thwart tax collection efforts.

POOR FINANCIAL POSITION OF STATE

As regards grants-in-aid being provided by State government, it has to be
borne in mind that state government finances are themselves in a shambles. They
have been running into huge budget deficits for years together. In fact, on the
recommendations of successive finance commissions, the government of India has
been giving grants-in-aid to State governments. in this scenario, state government
does not have the financial ability to give substantial funds to PRIs.

TAX BASE IS NARROW

The tax base-in the form of property, profession income, vehicles (chiefly
bicycles, rickshaws, carts), etc is itself not very. wide, given the low standards of
living. However, with time, poverty ratio has declined, but the improvement in
incomes and property has not yet got reflected in substantial increases in tax
collection by PRIs. Thus evasion is of high order.

55
UNFAVOURABLE ATTITUDE OF STATE
It is commonly perceived that State governments have not given the PRIs their
due share. There are countless instances of PRIs not having been constituted,
supersession of PRIs, not giving sufficient powers and authority to PRIs to enable
them to carry out their functions in any meaning ful manner, etc. This unfavorable
attitude manifests itself in the meager amounts given to PRIs by State Governments.

LACK OF RESOURCES TO EXPLOIT

PRIs raise funds through local enterprises. However, these are very limited in
number and scope. Serous efforts have not been made to, say, establish small-scale
units on a co-operative basic to manufacture products based on local resources, or to
go in for agro-based enterprises, etc. These can become good sources of surpluses.

APATHY OF THE VILLAGE COMMUNITY

Involvement of the village community is very essential for the successful
functioning of PRIs. That has been sadly missing. This reflects itself in the low amount
of voluntary contributions that are made to PR! funds.

ABSENCE OF RURAL INDUSTRIES

Because of lack of rural industrialization, there is not much scope of high taxation.
The above said list is by no means exhaustive, it only spells out some important
factors responsible for the dismal state of PRI finances.

SUGGESTIONS TO IMPROVE PANCHAYAT RESOURCES

The paucity of Panchayat funds poses a big problem. Following methods can be
adopted for improving the resources of the panchayts:
1. Further utilizatiott of the existing sources of self-raised income can augment
Panchayat income. An independent agency maybe setup for assessing the liabilities,
toning up collection machinery, plugging the leakages and punishing the defaulters,
i.e., the evaders of taxes.
2. Panchayats should man their resources a bit more vigorously. Through common
land, common grazing grounds, small irrigation works and fisheries considerable
additional incomes possible.
3. Steps should be taken to have Panchayat undertakings and Panchayat utilities. For
example, construction of or letting out of residential houses, markets, hotels, cinema
houses, shops, etc. can be fairly fruitful enterprises for the Panchayats. Loans on
liberal terms can be procured "to build up the Panchayat enterprises. They may
purchase tractors, bore-well units, thrashers, etc., to be hired out or initiate small-
scale undertakings for processing agricultural or animal husbandry produce. Once
they are built up, the returns which are apt to be substantial can be utilized to pay
off the principal and the interest be substantial can be utilized to pay off the principal
and the interest
4. Government grants must be enhanced.

56
If the sources suggested. are tapped and the government also extends grant liberally,
the per capita income of Panchayat will certainly go up Lofty expectations from the
Panchayats might be frustrated if sincere efforts to raise per capita income are not
made.

CONCLUSION
According to financial paucity has been one of the main causes of PRIs failure
in the past. To remove this hurdle every 5 years the state governor would appoint a
finance commission to review and advise state government the principles governing
distribution of funds to the Panchayats.

STATE FINANCE COMMISSION

INTRODUCTION:
According to 73rd constitutional amendment In each State a finance
commission will be established to determine the principles on the basis of which
adequate financial resources would be ensured for Panchayats.

CONSTITUTION' OF FINANCE COMMISSION TO REVIEW FINANCIAL POSITION:

The Governor of a State shall, as soon as may be within one year from the
commencement of the Constitution (seventy-third Amendment) Act, 1991 and -
thereafter at the expiration of every fifth year, constitute a Finance Commission to
review the financial position of the Panchayats and to make recommendations to the
Governor as to
(a) the principles which should govern :
i) the distribution between the State and the Panchayats of the net proceeds of the
taxes, duties, tolls and fees leviable by the State, Which may be divided between
them under this part and the allocation between the Panchayats at all levels of their
respective shares of such proceeds;
ii) the determination of the taxes, duties, tolls and fees which may be assigned to, or
appropriated by, the Panchayats;
iii) the grants-in-aid to the Panchayats from the consolidated Fund of the State.
(b) the measures need to improve the financial position of the Panchayats?
(c) any other matter referred to the Finance Commission by the Governor in the
interests of sound finance of the Panchayats.
2. The Legislature of a State may, by law, provide for the composition of the
Commission, the qualifications which shall be requisite for appointment as members
thereof and the manner in which they shall be selected.
3. The commission shall determine their procedure and shall have such powers in the
performance of their functions as the Legislature of the State may, by law, confer on
them.

57
4. The Government shall cause every recommendation made by the commission
under this article together with an explanatory memorandum as to the action taken
thereon to be laid before the Legislature of the State.

CONSTITUTION OF FINANCE COMMISSION IN ANDHRA PRADESH:

1. The Governor shall on the recommendation of the state Government constitute a
Finance commission as soon as may be within one year from the date of
commencement of the Constitution (seventy-third) Amendment Act, 1992 and
thereafter on the expiration of every fifth year.
2. The IX Finance commission shall! consist of a Chairman and tour other members
of whom one shall be the Member Secretary. The Governor shall by order appoint on
the recommendation of the Government the Chairman and other members of the
commission.
3. The Government shall make available to the Finance Commission such staff as may
be necessary for the discharge of the functions conferred on the Finance
Commission.

QUALIFICATIONS FOR APPOINTMENT AS AND THE MANNER OF SELECTION OF

MEMBERS OF THE COMMISSION:
The Chairman of the Commission shall be selected from among persons who
have had experience in public affairs and the other members shall be selected from
among persons who -
(a) have special knowledge of the finances and accounts of Government? or (b) have
had wide experience in financial matters and in administration? or (c) have special
knowledge of economics.

PERSONAL INTEREST TO DISQUALIFY MEMBERS:

Before appointing a person to be a member of the Commission the Governor
shall satisfy himself that the person will have no such financial or other interest as is
likely to affect prejudicially his functions as a member of the commission, and the
Governor shall also satisfy himself from time to time with respect to every member
of the commission that he has no such interest and any person who is, or whom the
Governor proposes to appoint to be a member of Idle Commission shall, whenever
required by the Governor so to do, furnish to him such information as the Governor
considers necessary for the performance by him of his duties under this section.
DISQUALIFICATIONS FOR BEING A MEMBER OF THE COMMISSION :
A person shall be disqualified for being appointed as, or for being a member of
the Commission:-
(a) if he is of unsound mind?
(b) if he is an undischarged insolvent.
(c) if he has been convicted of an offence involving moral turpitude?
(d) if he has such financial or other interest as is likely to affect prejudicially his
functions as a member of the commission.

58
FUNCTIONS OF THE COMMISSION:
1. The Finance Commission shall review the financial position of the Gram
Panchayats, Mandal Parish ad and Zilla Parishads and made recommendations to the
Government as to?
(a) the principles which should government -
i) the distribution between the State and the said Gram Panchayats and Parish
ads of the net proceeds of the taxes, duties, tolls and fees leviable by tile State,
which may be divided between them and the allocation between - the said Gram
Panchayats and Parish ads at all levels of their respective shares of such proceeds?
ii) the determination of the taxes, duties, tools and fees which may be assigned
to or apportioned by, the said Gram Panchayats and Parish ads;
iii) the Grant-in-aid to the said Gram Panchayats and Parishads from the
Consolidated Fund of the State;
(b) the measures needed to improve the financial position of the said Gram
Panchayats and Parishads.
2. The Government shall cause every recommendation made by the commission
under this section together with an explanatory memorandum as to the action taken
thereon to be laid before the Legislature of the State.

PROCEDURE AND POWERS OF THE COMMISSION CENTRAL ACT 5 OF 1980:

1. The Commission shall determine their procedure and in the performance of
their functions shall have all the powers of a civil court under the code of civil
Procedure 1908 while trying a suit in respect of the following matters, namely:
(a) summon and enforcing the attendance of witnesses;
(b) requiring the production of any document;
(c) requisitioning any public record from any court or office.
2. The Commission shall have power to require any person to furnish
information on such points or makers as in the opinion of the commission may be
useful for, or relevant to, any matter under the consideration of the commission and
any person so required shall, notwithstanding anything contained in sub-section (2)
of Section 54 of the Indian 8 Income-Tax Act, 1922 (central Act 2 of 1922) or in any
other law for the time being in force, be deemed to be legally bound to furnish such
information within the meaning of Section 1^6 of the Indian Penal Code (Central Act
45 of 1860).
3. The commission shall be deemed to be a Civil Court for the purposes of
Section 345 (I) and 346 of the code of Criminal Procedure, 1973. (Central Act 2 of
1974).
For the purposes of enforcing the attendance of witnesses, the local limits to the
Commission's jurisdiction shall be the limits of the territory of the State of Andhra
Pradesh..

59
CONCLUSIONS:
In Andhra Pradesh the first State finance Commissions under the
Chairmanship of M.V. Lakshman Swamy submitted its report on May 31, 1997. The
government appointed a Committee of Secretaries to study the recommendations
and suggest measures for implementation. In addition. a cabinet sub-committee was
also appointed to look is.into the recommendations of the SFC report.

MODULE-IV
a. Rural Development: Strategies, Programmes & Issues

INTRODUCTION
The term `rural development' is a subset of the broader term development. The
term rural development connotes overall development of rural areas with a view to
improve the quality of life of the rural poor. In this sense, it is a comprehensive and
multi-dimensional concept, encompassing the development of agriculture and allied
activities, village and cottage industries including crafts, socio-economic
infrastructure, community services and facilities, and above all, the human resource
development in rural areas. As a phenomenon, rural development is an end result of
transactions between various physical, technological, economic, socio-cultural and
institutional factors. As a strategy, it is designed to improve the economic and social
well being of the specific group of people-'the rural poor'.

Rural development, as such, is nothing new to the third world countries. Many
developing countries have been practicing or promoting rural development for a
number of years and many of them have achieved significant success in their efforts.
However, rural development has been attracting since long and special importance
and attention is being given by the planners.
Alongside, there has been considerable discussion of the need for and nature of shift
in emphasis and approach called for in rural development in keeping with the
objective of overall development policy for speedy alleviation of poverty.

The concept of `rural development' was born in the context of agriculture, and it
remained, for a long time coterminous with agricultural development in India. The
Royal Commission on Agriculture (1928), for instance provides this kind of
interpretation to `rural development'.

Since the seventies, the concept of rural development has undergone a change, and
has become more comprehensive. The concept of rural development, as enunciated
by the World Bank, marks such a change. The World Bank defines 4 - "rural
development as a strategy designed to improve the economic and social life of a
specific group of people - The rural poor. Rural development involves extending the

60
benefits of development to the poorest among those who seek livelihood in the rural
areas. The group includes small-scale farmers, tenants and the land less." To quote
from the World Bank Sector Policy Paper on Rural Development (1975): "A national
programme of rural development should include a mix of activities including projects
to raise agricultural output, create new employment, improve health and education,
expand communications and improve housing.

Components of Rural Development Policy

A policy designed to bring about rural development as defined above, needs to
incorporate the following components.
a) The first component of such a policy may be `man and his environment'
with an objective of creating skills and appropriate knowledge so that man can
exploit his environment and can expand his resources for better quality of life.
b) The second important conceptual focus has to be on the ecological setting.
Since rural is in contrast to urban and its development may be proportionate to
urban development.
c) The means of production and appropriate technology needs to constitute the
third component of rural development.
d) The building of institutional infrastructure necessary for mobilizing economic
resources and management of men, money and material resources may be the
fourth component of rural development.
e) The fifth important component of rural development is `self reliance', which needs
to be brought in through local initiative, participation and mobilization of existing
resources.
f) The last, though not the least, dimension of rural development needs to focus
on distributive justice in so far as the poor segments of the rural population are
concerned.
In short, in formulating the rural development policy the whole approach has to be
fundamental and targeted towards alleviating the rural poor from the `cluster of
poverty' that has been perpetuated over the ages.

STRATEGIES OF RURAL DEVELOPMENT

All the plan strategies for rural development are based on various approaches. A
review of various rural development programmes and policies followed in India after
independence reveal different strategies of development.
They are discussed below:

The Multi-purpose Strategy

Rural Development approach in India started with the multi-purpose approach. The
Community Development programme (CDP), started in 1952, was aimed at
developing to the fullest extent, the material and human resources of an area
through the co-operative efforts of the people and the active help of the state. It was

61
essentially an educational and an organizational process since it concerned itself with
changing those attitudes and practices, which were obstacles to social and economic
improvement.
The rationale of the approach was that all the aspects of rural life are
inextricably interlinked with each other. The activities of CDP included agriculture,
animal husbandry, irrigation, cooperation, village and small-scale industries, health
and sanitation, education, communication and housing etc.
The programme as a whole was to converge on the totality of human
development; therefore, the destination of the Community Development
programme was man. After sometime, it was felt that the C.D. Programme was too
diffused to give concrete results, and due to limited finances, a multi-pronged attack
was not possible and certain priorities had to be drawn up to solve the problem of
food shortage. A more specific limited-purpose approach was considered to be the
way out.

Growth Oriented Strategy

This is based on the philosophy that rural people, like any other people, are rational
decision makers, who, when given adequate opportunity and a proper environment,
will try to maximize their incomes. The critical assumption of this strategy is that the
benefits of increased production will gradually `trickle down' to the poor. The
regulation and coordination of the activities of the private and public agencies is
primarily through market mechanisms. This paradigm formed the basis of the
predominant agricultural development strategy of the 1960s, when programmes like
the Intensive Agriculture District Programme (IADP), the Intensive Cattle
Development Programme (ICDP), the High Yielding Varieties Programme (HYVP),
were launched. This strategy led to `Green Revolution' in India. But, this approach
helped only the richer farmers in the rural areas, so its utility was limited and the
green revolution failed to bring any greenery to the rural poor who continued to
remain pale.

Target Group Strategy

In this approach, a particular group is taken up for studies and plan priorities are
accordingly modified30. Recognizing that the small farmers/marginal farmers and
landless agricultural labourer's problems are different to those of the bigger ones,
separate programmes like the SFDA/MFAL were started for their development. The
Antyodaya Schemes (betterment of the last in line) is a target approach. This
approach produced a client-oriented design and the ultimate goal is to transfer all
the responsibilities of planning and development to the clientele themselves.

Area Development Strategy

Under this strategy, emphasis is laid on the development of the backward regions.
The area development approach presumes that the growth centres have an even
geographical spread effect and that the benefits of development percolate to spread

62
effect and that the benefits of development percolate to the lower levels over a
period of time. Under this strategy, a pinpointed area is taken for development. A
backward area is identified for concentrated efforts, such as Drought Prone Area
Programme (DPAP), Tribal Area Development Programme (TADP), Command Area
Development Programme (CADP), Hill Area Development Programme etc, which
comes under this approach.

Spatial Planning Strategy

The need for appropriately locating all the special programmes in their respective
fields, the induction of production plans, the full employment schemes and the
supply of basic needs of the rural population, all demand that the plan formulation
and implementation strategy should be rural oriented. In the Fifth Plan, multi level
planning was very much emphasized and it was argued that since more intimate,
precise and detailed knowledge about physico-geographical, techno-economic,
socio-political and organizational administrative conditions is available for planning
activities which have strong local foci is more fruitfully undertaken at the district
level, therefore, under this approach, progress was too slow, owing to a number of
other factors affecting the national plan formulation35. The paucity of the
techniques and the weakness in conceptualizing area-level-improvement in the
national context, led to the compilation of all the visualized needs as a district plan.
Generally, the attempts ended up in a desegregation of the state plan allocation
district-wise and department-wise.

Integrated or Holistic Strategy

It has been realized that development should be an integrated one. This is possible
when "sectoral development programmes, human resources development
programmes, social welfare schemes and infrastructural development progrmmes"
33 are brought within the framework of a prospective plan for implementation,
where ach programme reinforces the other through linkages. Integrated Strategy
combines all the positive features of the earlier strategies, and is designed to
simultaneously achieve the goals of growth, welfare, equity, and community
participation. This paradigm takes a very comprehensive but integrated view of the
basic problems of poverty, unemployment and inequality, and seeks to address the
physical, economic, technological, social, motivational, organizational and political
bases of these problems. The multiple goals of this strategy are sought to be
achieved by building the capacity of the community to involve itself in development
in partnership with the government. The anti-poverty programmes launched in India
in the 1970s, particularly the IRD programme, National Rural Employment Progrmme
and Training of Rural Youth for Self-Employment were intended to follow this
paradigm.

It has been rightly observed by John.P.Lewis: "A serviceable rural development

programme in India must deal with the several aspects of the rural economy in an

63
integrated fashion. An isolated agricultural development effort unrelated and
unsupported by other kinds of rural policies would be doomed to failure almost
surely" 34. On account of IRD programmes, the number of persons living below the
poverty line has been considerably reduced; still, however, much remains to be done
for these poverty-stricken people.

Participatory Strategy
During the last two decades several new approaches like `top-down
lanning',`planning from below', `bottom up planning', `micro level planning',
and `multi-level planning' have been thought of in the context of involving the
people in every phase of development. In the current plan (Xth Five Year Plan), the
government has devised participatory strategy to promote rural development.
Provision has been made to expand economic and social opportunity for individuals
and groups by encouraging greater participation in decision making. Right now we
have the `Swarnajayanthi Gram Swarozgar Yojana', which has replaced the earlier
programmes like IRDP, TRYSEM, etc. It is a single self-employment programme for
the rural poors.
The various programmes and strategies that have been examined by the experts
confirm that no single package or formula is sufficient for effective rural
development. Mere extension of approaches and strategies which are far from
reality would not serve the purpose and a major re-thinking is required to develop
rural India. The entire strategy calls for adaptation, modification, and
experimentation, depending upon the exigencies of the situation in our country.

Q. Role of Panchayati Raj in Rural Development and Disadvantages sections.

INTRODUCTION:
The majority of the rural populace can be construed as disadvantaged sections
by and large. The disadvantaged sections are those who are at the receiving end
informs of access to their employment in the areas of education, health and in
political and economic spheres. More than 80% of countries populations is living in
rural areas. Besides the urban rural divide, the gender, social and caste inequalities
form part of the basic structure of rural populace. Without an effective participation
of all these disadvantaged groups the democratic decentralisation would rendered
meaningless.
Keeping in mind this basic philosophy of the Panchayati Raj institutions the
Government of India and the State Governments have conceived several schemes
and programmes to ensure the participation of the weak and meak in the democratic
decentralisation process of Panchayati Raj institutions.

CENTRALLY SPONSORED SCHEMES:

The main responsibility of the Panchayati Raj Institutions is to accelerate the pace of
development and involve all people in this process so that the felt needs of the

64
people and their development aspirations are fulfilled. Central Government offered
some schemes for the development of the Disadvantaged Sections in the Society.

WATER SHED DEVELOPMENT:

OBJECTIVE :
The Objective of the watershed development programme is to conserve soil
and moisture for optimum utilization on one hand and sustainable production of bio-
mass and restoration of ecological balance *in drought prone and rainfed areas, on
the other. In addition, the programme also emphasises on improving the standard of
living of people through increased employment.

CONTENT:
Watershed is an area, which drains at a common point and does not allow the
ow of water from other side of the ridge. The watershed generally comprises non-
arable lands, arable land and drainage line. The contents are: Soil and water
conservation, plantation, cropping pattern, maintenance of assets, gully plugs,
contour bunds and check dams, recharging of wells, percentage of survival of
plantation, prevention of soil run-off, increase of soil productivity, employment
generation, community organisation and training.

COVERAGE:
The watershed development programme in drought prone/ desert areas will
be implemented by taking up projects for development of watershed of
approximately 500 hectares each in every village in phased manner. Watershed
projects under DPAP/ ODP/IMDP/EAS (50%i/JRY (50%) would be implemented-in the
districts and the block which have been notified by Government of India under
respective programmes. The treatment of watershed' should be phased over to four
years so as to saturate the whole watershed in a period of five years within the
available funds.

SELECTION OF WATERSHED:
In each of the selected villages a micro-watershed of approximately 500
hectares will be identified and selected by the project team in consultation with the
panchayat/ village community. The criteria used in prioritising the selection of
watershed areas acute shortage of drinking water, large population of SC/ST,
preponderance of wastelands and common lands, in the village.

WATERSHED MANAGEMENT:
While the DRDA/XP would administer and coordinate implementation of
programme at the district levels the project Implementation Agency (PIA) appointed
from the non-governmental organisations and other institutions will coordinate and
supervise the plan formulation and implementation of watershed development

65
project in a group of selected villages. The PIAS will be assisted by multi-disciplinary
team of experts.

FUNDING PATTERN:
The watershed development project is one of the Centrally sponsored
programme and it is to be funded by the Five programmes viz., DPAP/ DDP, IWDP,
IJRY (50%) and EAS (50%) on mutually exclusive basis at the watershed level.

ROLE OF PANCHAYATI RAJ INSTITUTIONS:

Zilla Parishad (ZP) shall be fully responsible for the implementation of
watershed development programme at the district level. The Chief Executive `Officer
(CEO). Will be the member of the district watershed advisory committee. The ZP at
the district, and PS at the block level will monitor and review the implementation of
programme and provide guidance for improvement in administrative arrangements.
At the village levels Gram Panchayat (GP) shall be fully evolved in the community
organisation and training programme and use its administrative authority and
financial resources to support and encourage the formation of user groups and self
help groups.
The GP will also be responsible for operation and maintenance of the assets
created and the common property resources. The GP shall also ensure the flow of
funds from other development programmes. It will also monitor and review the
programme to .ensure proper progress of work.

WASTE LAND DEVELOPMENTS : RATIONALE:

Wasteland development programme has been taken up jn a big way with the
objective of restoring the productive capacities of the biomasses of various kinds,
either indigenous or introduced, in the given area.

THE PROGRAMME:
Development of wastelands is possible mainly through afforestation and
adoption of reclamaration-practices, specially in agricultural lands. Though
reclamation of agricultural lands is an old phenomenon, afforestation in non-
agricultural wastelands has been attempted seriously since the Seventh Five-Year
Plan. The government has set a target of afforesting five million hectares of these
wastelands annually, with the active participation of local communities.
Two Ministries are responsible for coordinating the wasteland development
activities. While the activities in non-forest areas are looked after by Ministry of
Rural Areas and Employment, the Ministry of Environment and Forests take care of
forest areas. At local level. State Forest Departments, DRDAs and other bodies
execute the wasteland development projects. The Ministry of Rural areas and
Employment has the following schemes for wasteland development:
Integrated approach for afforestation in wastelands on a.watershed basis
(Integrated Wastelands Development Projects Schemes).

66
 Raising Plantations of fuel wood and fodder species and developing pastures
on watershed basis (Fuel wood and Fodder Projects Schemes).
Involving NGOs to raise plantations on private and community lands through
monetary assistance (Grant-in-Aid Scheme).
Encouraging socially beneficial projects like agro-forestry, urban fuel wood
plantation etc., through providing margin money (Margin Money Scheme)
Encouraging village level nursery to meet local needs of saplings (Decentralised
People's Nursery Scheme).

ROLE OF PANCHAYAT:
Panchayats can really become a vary strong instrument of making the
wasteland development a social movement by organising.the local communities
around these activities. They can significantly contribute in:
* Assessment of local biomass needs. * Transfer of land for afforestation. * Nursery
raising.
* Transfer of technology.
* Protection of plantation (including stall feeding of cattle) * Benefit distribution.
* Constitution of village committees and overseeing its function.
* Monitoring and Evaluation.

RURAL HOUSING:
INTRODUCTION:
There is an acute-shortage of houses in rural areas. The poor and the weaker
sections are particularly the most affected groups. Appreciating this problem, the
Government of India independently and with the support of the State governments
have launched several rural housing schemes in rural areas.
OBJECTIVES:
1. To provide "House for all" with minimum living space, verandah, latrine, etc.
based on the scheme; and '
2. To meet the requirements of the specific needs of the artisans and tribal
communities.

CONTENT:
Rural Housing Scheme has two major components namely: (1) allotment of
house site (2) construction of houses. The constructed houses are given free to
weaker sections and for others there is an element of loan with soft interest,
repayable within a specified time period. In some housing schemes the labour is to
be rendered by the beneficiaries and in others the labour component is being paid
either in cash or in terms of foodgrains.

TARGET GROUPS:
1. Weaker Sections of the society like Scheduled Castes, Scheduled Tribes.
2. Artisans like Weavers/Fishermen/Cobblers/Blacksmiths etc., and

67
3. Victims of disaster prone areas like floods or cyclones or earthquakes.

AREA OF COVERAGE:
The Programme focuses particularly on the backward and the hilly regions and
calamity affected rural areas. The housing schemes are constructed in areas, which
are identified as wastelands used for other than agricultural purposes. Based on the
area, the building materials and specifications may vary on economic as well as
technical grounds.

IMPLEMENTING AGENCIES:
The housing scheme are implemented mostly by Departments such as
Panchayati Raj Engineering Department, Rural Housing Corporations, District Rural
Development Agency; Gram Panchayats, and Non-Governmental Organisations such
as Voluntary Agencies and Corporate Bodies. Housing Corporations also take up rural
housing. The resources for the housing schemes are drawn from the Central, and
State Schemes or from International Agencies or Corporate Bodies. The
implementing agencies have their own supervision and monitoring system. However,
various Sectoral Departments which are facilitating some amenities, too have their
own supervision and monitoring system. The evaluation aspect is done by either an
independent body or a government agency.

ROLE OF PANCHAYATS:
1. to assess the situation of rural housing in the village;
2. to identify the beneficiaries among the Weaker Sections -SCIST, Artisans, and
others;
3. to identify wastelands for house construction or for allotting house sites;
4. to identify the locally available building materials to be used in the housing
schemes like boulders, laterite blocks, bricks, lime, sand, roofing materials,
bamboo and timber etc.,
5. to develop amenities like drainage, approach roads, rural electrification, rural
drinking water, sanitation facilities etc.,
6. to collect house taxes;
7. to draw technical and administrative support for the implementation of
housing schemes;
8. to develop local manufacture base for the rural housing schemes like bricks,
boulders, pro-fabricated materials etc.,
9. to arrange to train the mason and labourers with low cost technology for skill
development locally;
10. to upkeep and maintain the houses constructed.

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DEVELOPMENT OF WOMEN AND CHILDREN IN RURAL AREAS (DWCRA)
INTRODUCTION:
DWCRA is a Sub-scheme of IRDP. This programme was designed exclusively for
women, as the women members of IRDP families were not receiving the benefits
adequately. It was introduced in 1982-83.
OBJECTIVES:
1. to provide opportunities of self-employment on a sustained basis;
2. to promote better access to services and enhance their productive skills; and
3. to enhance their bargaining power, and decision making abilities through
collectivisation.

CONTENT:
The districts are selected on the basis of backwardness of the areas, high (MR,
low female literacy and ICDS. In this programme a group of 10-15 women is the unit
of assistance. They will select an economic activity of their choice. The groups are
assisted through a package of the following services:
a) Skill development.
b) Revolving Fund (Rs.15,000 one time grant to each group, shared equally by
Centre, state and UNICEF.
c) Loan and subsidy (as entitled. under IRDP).
d) Access to services (ICDS, family Welfare, Adult Education, nutrition etc..)
e) Multipurpose centre/workshed.
f) Special staff (APO at the district and additional Gram Sevika at Block level).

TARGET GROUP:
The women under the programme should belong to the families living below
the poverty line, who are in the age group of 18-35. Inc children (Q.5) of the women
members are also entitled to receive child-care facilities.

AREA OF COVERAGE:
At present 354 districts are covered under the scheme, As many as 60,000
groups with a membership of one million women are operating. All the districts in
the country will be covered by the end of Eighth Plan.

PROGRAMME IMPLEMENTATION:
At the state level Deputy Secretary/Director, Department of Rural
Development is the overall incharge of the implementation of the programme. APO
(women Development) under the supervision of Project Director, DRDA is to
implement the programme at district level. The additional Gram Sevika will work in
coordination with the Block staff (Mukhya Sovika, Gram Sevika).
NIRD is the nodal agency for training of DWCRA functionaries (district and
above) and training of trainers. The training of Gran Sevika/Mukhya Sevika is
assigned to SIRDs. APQ Monitoring at DRDA will monitor the programme.

69
ROLE OF PANCHAYATS:
a) Zilla Parishad is to be responsible for preparing a comprehend . district plan
for all rural development programmes.
b) IRDP infrastructure fund should be placed with ZP to create and maintaining
required infrastructure to support the rural development programmes.

PANCHAYAT SAMITUMANDAL PANCHAYAT:

a) The BDO will pursue the implementation of the programme through Mukhya/
Gram Sevikas. He should also ensure the convergence of services at the grass-root
level.

GRAM PANCHAYAT:
a) Gram Panchayat should prepare the database for women and Child
Development Programme and periodically update it.
b) Assist the DWCRA staff in selecting the group members and oversee the
groups performance.
Support the eligible women groups during credit camps for getting loans
under various RD schemes.

RURAL DRINKING WATER AND SANITATIONS : INTRODUCTION:

Safe drinking water supply is a vital human need. The availability of safe and
adequate drinking water has a direct hearing on the working conditions and health of
the people. Disease and death, particularly of children, every year and the drudgery
of women are directly attributable to the tack of potable water. Sanitation includes
liquid and solid waste disposal, food hygiene, personal, domestic as well as
environmental hygiene. Poor sanitation causes 80 per cent of the human diseases.
Hence, proper hygienic sanitation practice is an essential per-requisite for health
promotion.

OBJECTIVES:
1. to provide adequate and safe drinking water to each habitation in the country;
2. to provide proper sanitation facilities to all rural population, mostly weaker
sections and people below poverty line;
3. to create-an awareness through health education;
4. to eradicate manual scavenging by converting all dry latrines to low cost
sanitary latrines;
5. to popularise suitable cost effective sanitary latrines.

CONTENT:
The Rural Water Supply and Sanitation is an important element of the
Minimum Needs Programme. The norms stipulated is 40 litres of water per capita
per day and 30 litres of water per capital per day-for the cattle and one handpump or

70
standpoint for every 250 persons, with water point within a reach of 1.6 Kms and
within 100 metres elevation in hilly regions.
The Rajiv Gandhi National Drinking Water Mission (RGNDWM) has been
promoting sustainable sources of safe drinking water in the rural areas. The
Accelerated Rural Water Supply Programme (ARwsP) supplemented the efforts of
the State Governments in providing safe drinking water.
Several International Agencies also actively participate in the area of rural
drinking water and sanitation programmes like the World Health Organisation,
UNICEF, ODA etc.. The Voluntary Organisations are also involved in these
programmes.
The Central Rural Sanitation Programme (CRSP) provides sanitary latrines to
SC/ST families and people below poverty line. Funding for the programmes is made
on the-basis of 75% from Centre and 25% from the State. The Programme includes
measures like (Aconstruction of individual sanitary latrines, (ii) conversion of dry
latrines into low cost sanitary latrines, (iii)construction of exclusive village sanitary
complexes for women, (iv) setting up sanitary marts, (v) total sanitation of villages
through construction of drains, soakage pits, solid and liquid waste disposal and (vi)
intensive campaign for awareness building and health education. The programme
gives special emphasis to the needs of women by earmarking 10% of the total funds
provision.

TARGET GROUPS:
The target groups for the programme are: (1) all the rural populate living in
rural areas; (2) weaker sections like sc/sT; (3) people below poverty line; and (4)
women.

AREA OF COVERAGE:
The programme covers all the rural areas of the country. Besides it has specific
bearing on areas affected by Fluoride, Arsenic, Salinity, Iron, Nitrates etc., and
infected by Guineworms and bacilli causing diseases like Cholera, Typhoid etc.,

IMPLEMENTING AGENCIES:
The programmes are implemented mostly by Government Departments,
Panchayats, Voluntary agencies and International Agencies. The Panchayati Raj
Engineering Department or the public Health Engineering Department have been
entrusted with the responsibilities. Several agencies provide funds for the schemes.
The norms of funding are: (1) one water source per 250 population; (2) Rs.2500 per
unit cost of individual latrines in a cluster of 20 in a village; (3)funds from JRY,
RGNDWM, cRSP etc., (4) International funds; and (5) Voluntary agency efforts.

ROLE OF PANCHAYATS:
The various activities, that can be taken up at Panchayat level are :
1. to assess the existing condition of rural drinking water supply and sanitation;

71
2. to estimate the requirement of safe drinking water and sanitation facilities;
3. to identify the appropriate agency for a particular programme;
4. to assist the implementing agencies in identification of (a)individual
beneficiaries,
(b) community groups from weaker sections,' (c)location of the source/facility;
5. to enforce the stipulated norms under various schemes;
6. to ensure the maintenance and use of the facilities;
7. to prevent misuse and deliberate attempt to damage the facilities;
8. to report appropriate authorities about the operational problems.
9. to repair and maintenance of existing sources/facilities;
10. to obtain basic input materials like handpumps, construction materials like
cement rings, hume pipes, pre-fabricated sanitary structures etc.,
11. to draw technical and administrative help towards implementation of
schemes successfully.

NATIONAL SOCIAL ASSISTANCE PROGRAMME (NSAP):

The National Social Assistance Programme (NSAP) is a centrally-sponsored
programme. Under the programme, special social assistance benefits are extended
to families living below poverty line. `The programme aims at providing uniform
social security everywhere in the country. The NSAP comprises three major SACial
Assistance Schemes, namely, (1)National Old Age Pension Scheme (NOPS),
(2)National Family Benefit Scheme (NFBS), and (3) National Maternity Benefit
Scheme (NMBS).

NATIONAL OLD AGE PENSION SCHEME (NOPS):

The scheme provides Central assistance @ Rs.75 as old age pension.
BENEFICIARIES : - He or she must be listed under family below poverty line.
- He or she must have attained the age of 65 years for above.
- He or she is a destitute having little or no regular means of subsistence from
his/her own source.
- He or she must not be getting financial support from family member or any
other source.

NATIONAL FAMILY BENEFIT SCHEME (NFBS):

The scheme provides Central assistance for a lumpsum one time assistance in
case of death of the primary breadwinner in the bereaved family. The amount of
assistance is restricted to Rs.5000 in case of natural death and Rs.10,000 for death
due to accident.

BENEFICIARIES :
The family must be listed under below poverty group.
The person who died in the family must be primary breadwinner. i.e., his/her
contribution was the major source of family income.

72
The person who died must have been within age group of 18-64 years.
- The surviving member should succeed as head of the family.

NATIONAL MATERNITY BENEFIT SCHEME (NFBS) :

It is a Centrally sponsored scheme to provide financial assistance to pregnant
mother.. The financial assistance is restricted to Rs.300 per pregnancy.
BENEFICIARIES:
- The family must be listed under below poverty group.
- The benefit is restricted to only first two live births.
- The pregnant woman must be in the age group over 19 years.
- The application for maternity benefit must be submitted 12 weeks prior to the
deli very.

HOW TO APPLY FOR NSAP:

- The applicant for any of the above three Schemes must be identified and
selected by the Panchayat through Gram Sabha.
- His/her application on the prescribed form'should be scrutinised by the Gram
Pandhay at/Municipality, in case of maternity benefit, the application must be
submitted 12 weeks prior to delivery.
- The application for assistance shall be addressed to the District Collector.

ROLE OF PANCHAYAT:
The panchayat shall be responsible in implementation of the programme
under overall guidance of the District Collector. The Chairman, Zilla Parishad or
member equivalent to Standing Committee and representatives of Chairpersons of
Panchayat Samithi/Municipality shall be member of the District level Committee
headed by the Collector to oversee the programme implementation

THE PANCHAYAT/MUNICIPALITY SHALL BE RESPONSIBLE:

- to give wide publicity of the programme by informing/ educating the
prospective beneficiaries regarding the procedure to obtain benefit under
different schemes.
- identify the programme beneficiaries under different schemes. obtain and
scrutinize the application for assistance.
- prepare list of such applicants for different schemes and recommend the
same to Collector/appropriate authority for sanction of assistance.
- report every case of death of the old age pension holder immediately.
- send quarterly and annual statements of the beneficiaries to the District
Collector/ appropriate authorities.
- constantly monitor and follow up cases for elimination of delay in sanction
and disbursement of the assistance.
- recommend discontinuation/cancellation of assistance to any defaulting
person.

73
RURAL HEALTH CARES IN INDIA:
India is committed to achieving `Health For all (UFA) by 2000 AD' Through
universal provision of comprehensive primary health care services. The National
Health Policy (NHP) aims at promotion of health as an integral part of human
resource development and a vital component of overall socio-economic
development of the country. Creation of adequate health infrastructure in rural
areas is of prime importance for realisation of the objectives of the NHP and the goal
of HFA.
The objective of rural health care services is to provide simple curative,
preventive and promotive health services to the people at their doorstep. The
primary health care approach is characterised by integration of various health and
family welfare services.
As part of Minimum Needs Programme (MNP), A sub-centre(SC) is created for
every 5.000 population in plain areas and 3.000 population in hilly and tribal areas. In
all, over 1.31 lakh SCs are functioning in the country. The SC is maied by a male and a
female multipurpose health worker (MPw). The PHCs at the block level are located
on the basis of one PHC, manned by 2.3 medical officers and 5-6 paramedical staff,
for every 30.000 population in plain areas and for every 20.000 population in hilly
and tribal areas. In all, over 22.000 PHCs are operating. The Community Health
Centres (CHCs) act as referral centres for PHCs in a block. Rural Hospitals with
specialist facilities are established by upgrading PHCs to cover a population of 80.000
1.2 lakh. There are about 2200 CHCs.
The country at present is passing through a demographic phase which is
inarked by a fairly high fertility and moderate mortality. In 1991, the birth rate was
29 and death rate was 10 per thousand population with an.Infant Mortality Rate of
79 per thousand live births; per capita income Awas low, the incidence of poverty
was high as more than a third of the population lived below the poverty tine and the
female literacy WAS only 28.5 percent. The population of the country was 846.3
million in 1991 and is now nearing the 950 million mark. Success on the population
front is vital for the success of all national development and anti-poverty efforts.
The National Family Welfare Programme seeks to promote responsible and
planned parenthood through voluntary and free choice of family planning methods,
best suited to individual acceptors. What is required is'dovetailing the family welfare
programme into wider socio-economic programmes and promotion of spacing
methods, if the goals of family welfare are to be achieved. The family welfare
programme is a Centrally sponsored programmed with a common administrative
infrastructure, budget, training and motivational and implementation strategies. Its
salient features are improving the quality and outreach of family welfare services;
increasing the coverage of younger age couples through vigorous promotion of
spacing methods introducing new contraceptives and improving the quality of
contraceptives; revitalising training activities of medical and paramedical personnel;
sustaining the good work done under the Universal Immunisation programme and
strengthening of other interventions for maternal and child health care;

74
reorientation of information, education and communication, efforts to focus on the
quality of life issues and interpersonal communication and involving non-
governmental organisations in a big way to promote active community participation
in the programmes.

PRIMARY AND NON-FORMAL EDUCATION:

Keeping in view the objective of universal is at ion of education all our efforts
are being made to achieve the target by the turn of the century. Accordingly, primary
education and non-formal education are being take up as national programmes. The
Xlth Schedule of the Constitution Amendment also included primary education and
non-formal education as the two of the 29 subjects to be entrusted to the Panchayati
Raj Institutions. Accordingly, the Panchayati Raj Institutions are required to play a
significant role in spreading the education in rural areas. The new education policy
which was adopted by parliament in 1986 envisaged an overhaul of the system of
planning and management of the education from national lovely state levels strict
and local levels. It is in this context that the subject of primary education and non-
formal, education are to be transferred to the Panchayati Raj Bodies. The advantages
are:
(a) mobilisation of resources for infrastructural development.
(b) exercising supervision and control over the primary school; which cannot be done
effectively by meagre departmental staff,
(c) meeting the day to day requirements and needs of the school, and
(d) increasing the enrolment and bringing down the rate of drop-outs.
- The Central Advisory Board on Education (CASs) envisioned an important role for
PRI in supervising early childhood care and education, non-format education,
primary and adult education. It recommended that a standing committee on
education may be constituted with not less than 7 and not more than 15 members
with representation of SC, ST.BC and members of parent association, anganwadi
workers and members from the community interested in education.

OBJECTIVES:
1. Ensuring that no child in the school worthy age group is denied of the
opportunity to attend formal instruction and no adult illiterate opts out of
instructional sessions,
2. To oversee the regularity of attendance of the pupils and the teachers, and to
initiate deterrent action against erring teachers,
3. Supervise proper utilization of funds realized through various accounts and
verify stock and equipment received under different programmes like
operation black board etc.,
4. Assist in proper management of the mid-day meal programme for school
children wherever under implementation in terms of timely supply of inputs,
quality and quantity of recipe provided to the students and identification of

75
 the target groups as per plan, and school health programme implementation
on time.
5. Secure adequate cooperation from the parents and other higher levels to
prevent drop-out stagnation and refusal to attend school owing to domestic
chores, Target group for personal interaction include the parents of the school
worthy age group children, more particularly from the disadvantaged
communities and with specific reference to parents of girl children and adult
illiterates.
Role envisaged for the panchayati Raj institutions include (a) constitution of
an education committee at the Zilla Parish ad. Block Panchayat, and Village
Panchayat to propose, plan, review, oversee, the education programme process, (b)
review the dropout position and implement suitable remedial measures, (c)
undertake periodic household survey at panchayat level to ensure that no child skips
the school and no adult illiterate avoids literacy classes, (d) support establishment of
new schools, deck regularity of teachers and students, (e) recommend suitable
candidates for vocational training and (f) coordinate and help in organising non-
formal education.

CONVERGENCE OF COMMUNITY-BASED BASIC SERVICES:

Special employment and bottom-end poverty alleviation programmes such as
Integrated Rural Development programme (IRDP), Training of Rural Youth of Self-
Employment (TRYSEM), Jawahar Rojgar Yojana (JRY), Nehru Rojgar Yojana (NRY) have
been the main stay of India's development strategies. During 1993-94, two
programmes viz.. Employment Assurance Scheme (EAS.) and prime Minister's Rojgar
Yojana (PMRY) were added. Very recently, the Prime Minister had announced
another programme viz., National Social Assistance Programme (NSAP), which
includes National Old Age Pension Scheme (Mops), National Family Benefit Scheme
(NFBS), National Maternity Benefit Scheme (NMBS). For all the programmes, the
target group is the rural poor.
This points to the fact that the success of these programmes will depend on
the extent to which different services will be delivered at the village level. For this,
the primary need is to provide sustained convergence of various services in order to
benefit them to the extent possible. So, the need of the hour is to integrate all these
efforts at the grassroot level so as to avoid duplication, financial burden and delay in
achieving the desire results in a minimum possible time. There is an adage that `local
problems. have local answers'. By identifying the local problems on the basis of the
fell-need of people and in solving them the Panchayati Raj Institutions have to play a
central role. The PRIs which are constituted on the concept of, popular participation
can alone ensure effective implementation of programmes which are intended to
alleviate rural poverty.
Wide prevalence of unemployment and the large proportion of population
below the poverty line underscores strengthening of these programmes. Proper
planning, identification of thrust areas at the lower levels, viable projects within the

76
management capacities of poor families, and effective tying up of forward and
backward linkages, credit and marketing, are important for bringing about qualitative
change in the rural areas.
Various policies and programmes adopted for development in basic services
have started showing positive results. First and foremost, the quality of life his
improved. The employment content of growth has registered improvement in the
recent times. It must, however, be conceded that the problems of poverty alleviation
and human resource development are complex in nature and large in size. Serious
and sustained efforts are therefore needed to reduce wide disparities among the
states, between rural and urban areas as also between males and females.
The higher budgetary allocations for social sectors in recent years have also
facilitated in mini.nising the short-term social costs of structural adjustments. To
augment resources, more innovative options including private sector involvement
and greater support from ?;cos have to be examined.
In recent times, there have been sustained efforts to bring administration
down to the grassroots. The process of decentralisation in the implementation of
several social sector programmes has been facilitated by the 73rd Constitutional
Amendment. Involvement of Panchayati Raj Institutions and Voluntary Organisations
has to be wholesome so that these institutions are able to facilitate convergence of
basic services. This will not only provide social acceptance to various
schemes/projects related to basic services but also help in their smooth
implementation at the village level with full involvement of local leadership.

STATE GOVERNMENT SPONSORED SCHEMES :

The State Governments introduced several welfare programmes, apart from
the Centrally sponsored schemes for the uplift of rural poor and backward
communities. However these appears to be no clear demarcation between the
Panchayat Raj Institutions and State Governments especially in Andhra Pradesh with
respect to implementation of these programmes. Practically after the advent of
Janmabhoomi programme and the Nodel Officer system this demarcation has
become quite hazly. Although Sarpanches are involved in the process of
implementing certain State sponsored programmes the Nodel Officer system seems
taking precedence over the elected representatives. Because or concentration of
controls over the schemes relating to planning and funds and management in the
hands of Nodel Officers.

WELFARE PROGRAMMES UNDER IMPLEMENTATION THROUGH MANDAL

PARISHAD DEVELOPMENT OFFICER (M.P.D.O):
Selection of beneficiaries is made by M.P.D.O. under the following schemes:
I. Swarna Jayanthi Rojagar Yojana.
2. Prime Minister Rojgar Yojana.
3. Financial assistance to self help groups.
4. Individual Toilets.

77
5. Yuvasakthi programme (CMEY)
6. Purnima Programme.
7. Deepam Programme.
8. Physically Handicapped Welfare (Cheyuta)
9. National Maternity Assistance Programme.

WOMEN & CHILD WELFARE PROGRAMMES:

1. Intensive Child Development Programme.
2. Kishora Balika Programme.
3. Baliak Sisusamkshema Programme.
4. Sukhibbhava Programme.
5. Anadha Sthrila Sikshana Centre.

INSURANCE PROGRAMMES:
1. Jana Sree policy programme.
2. RaJa Rajeswari Mahila Kalyana Yojana.
3. Bhaghyasri Programme.
4. Students Group Insurance Programme.
Approval by Village Sarpanch is mandatory for the selection of beneficiaries
under the following schemes!
1. Integrated Rural Development programme.
2. S.C.Corporation Service Programme.
3. Integrated Tribal Development Agency.
4. B.C.Welfare Cooperation Organisation.
5. Minorities Financial Cooperative Corporation.
6. Khadhi and Cottage Industries Centre.
7. District Industries Centre.
8. State Women Welfare Board.

CONCLUSION:
Inspite of host of schemes intended for the uplift of the marginalised sections,
these so called disadvantaged sections have still remained on the margin of social
progress even five decades after independence. These reality highlights the need for
a retook at designing and implementation of the welfare schemes. The very
stakeholders -disadvantaged groups have remained mute spectators to the process
of planning execution, sanction and expenditure of funds relating to the schemes
due to lack of sense of belongingness and participation community ownership in
execution of the schemes can be achieved by ensuring the participation of
communities at every stage of implementation of the schemes.

78
 b. COOPERATIVES: STRUCTURES, FUNCTIONS & PERFORMANCES

What is a co-operative?
A co-operative is a democratic form of business, organized, owned and
controlled by its members, and where all members have an equal say in how the
organization is run for the promotion of their economic interests. “Though Co-
operatives are economic institutions, the main objective for people to set up or join a
co-operative is to improve their economic as well as their social conditions through
joint action for the good of all members”. However, every co-operative must
accomplish this in a business like manner if it is to survive, grow and become
sustainable.

Characteristics of co-operatives
Co-operatives all over the world have common characteristics such as:
• Members are united through at least one common interest
• Members pursue the goal of improving their economic and social situation
through joint actions
• Members use a jointly owned and operated unit, which provides them with
services or goods. Regardless of its physical size and activities, the unit’s purpose is to
use the joint resources of the members to produce or obtain goods or services for
members.
Co-operatives are based on the values of self-help, self-responsibility,
democracy, equality, equity and solidarity.

The main types of co-operatives

There are many types of co-operatives e.g. marketing, consumer, producer,
financial, service and workers co-operatives, housing, etc.
Marketing co-operatives market farmers’ produce such as coffee, maize, beans,
livestock, etc. Members sell their produce through their co-operative and benefit
from the economies of scale. By so doing, they get a better price for their
produce.
Consumer co-operatives provide goods and services to their members at competitive
prices.
Producer co-operatives are where members work together to produce or
manufacture a product and sometimes market it together.
Financial co-operatives such as savings and credit co-operatives, co-operative village
banks, co-operative insurance societies, co-operative banks, etc. provide financial
services
Service co-operatives provide services such as housing, health care, funerals, day
care, water, power and energy and many other services. Usually people go for
services from such co-operatives in order to benefit from lower prices, better quality
or when existing services are inadequate. Under this, there is no limit as to the kind

79
of services that people can provide themselves with under a cooperative
arrangement.

Workers co-operatives are co-operatives, which are owned by the people who also
work for the same organization. This type of co-operatives is relatively new globally
but is gaining popularity, as co-operatives under it have proved quite successful.
From the above, one can appreciate why the co-operative model is often called “one
solution to so many problems”. It is this characteristic with its flexibility that makes
the co-operative model a very powerful tool for empowerment of its members.

The seven of Co-operatives Principles

• Open and voluntary membership to all interested people from a designated area
of operation. All those persons able to use the services of co-operatives and
willing to accept the responsibilities of membership should be allowed to join
without any gender, social, racial, political or religious discrimination.
• Democratic member control; one member, one vote in the case of primary
societies (while co-operatives at other levels are also organized in a democratic
manner) in all matters of decision-making. Men and women serving as elected
representatives are accountable to membership.
•Member economic participation/patronage; Members contribute equitably to
and democratically control the capital of their co-operative. Members receive limited
compensation if any on capital subscribed as a condition of membership, and
interest on their saving deposits. Members allocate the operating surpluses
realized by the co-operative for any of the following; developing their co-operative,
setting up reserves part of which would at least be indivisible, and supporting
other activities as approved by the membership.
• Autonomy and independence; Co-operatives are autonomous, self-help
institutions controlled by their members. If they enter into agreements with
other organizations including governments, or raise capital from external
sources, they do so on terms and conditions that ensure democratic control by
their members and maintain their co-operative autonomy.
• Education, training and information to promote member’s education and
awareness; Co-operatives provide education and training for their members,
elected representatives, managers and employees so that they contribute effectively
to the development of their co-operatives. They inform the general public
particularly young people and opinion leaders about the nature and benefits of co-
operation.
• Cooperation among co-operatives; Co-operatives serve their members most
effectively and strengthen the cooperative movement by working together through
local, national, regional and international structures.
• Concern for community development; co-operatives work for the sustainable
development of their communities through policies approved by their members.

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Legal Basis of Co-operatives
In India, co-operation is the State Subject under Constitution and hence, various
States have enacted laws governing the co-operative societies operating in the
respective states.
However, in other cases and for covering societies operating in more than one state,
the Central Government has enacted ‘Multi State Co-operative Societies Act, 2002’
as elaborated further.

HISTORICAL PROFILE OF COOPERATIVE MOVEMENT IN INDIA

Around the world modern cooperatives have developed for over 200 years.
Cooperative institutions exist all over the world providing essential services, which
would otherwise be unattainable. In many Third World countries, cooperatives such
as credit unions and agricultural organizations have been very successful in helping
people to provide for themselves where private and other corporate capitals do not
see high profitability. In 90 countries of the world, over 700 million individuals
are members of cooperative institutions. Globally, cooperatives have been able to
elevate its position as a powerful economic model. In some countries they are a
sizeable force within the national economy.
During the British rule, Nicholson a British Officer in India suggested to
introduce Raiffersen model of German agricultural credit Cooperatives in India. As a
follow-up of that recommendation, the first Cooperative Society Act of 1904 was
enacted to enable formation of "agricultural credit cooperatives" in villages in India
under Government sponsorship. With the enactment of 1904 Act, Cooperatives were
to get a direct legal identity as every agricultural Cooperative was to be registered
under that Act only.

The 1904 Cooperative Societies Act was repealed by 1912 Cooperative Societies Act,
which provided formation of Cooperative societies other than credit. Under
1919 Administrative Reforms act, Cooperatives was made a provincial subject making
each province responsible for Cooperative development. In 1942, the British
Government enacted the Multi-Unit Cooperative Societies Act, 1942 with an object
to cover societies whose operations are extended to more than one state. The
impulses of the Indian freedom movement gave birth to many initiatives and
institutions in the post independence era in India and armed with an experience of
42 years in the working of Multi Unit Cooperative Societies and the Multi-Unit
Cooperative Societies Act, 1942, the Central Government enacted a comprehensive
Act known as Multi State Cooperative Societies Act, 1984, repealing the Act of 1942.

GROWTH OF COOPERATIVE SECTOR IN INDIA

India has basically an agrarian economy with 72% of its total population residing in
rural areas. The rural people need lot of services in daily life, which are met by village
co-operative societies. The seeds of cooperation in India were sown in 1904 when
the first Cooperative Societies Act was passed. Since then, the cooperative

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movement has made significant progress. Cooperatives have extended across the
entire country and there are currently an estimated 230 million members
nationwide. The cooperative credit system of India has the largest network in the
world and cooperatives have advanced more credit in the Indian agricultural
sector than commercial banks. The village cooperative societies provide strategic
inputs for the agricultural sector, consumer societies meet their consumption
requirements at concessional rates; marketing societies help the farmer to get
remunerative prices and co-operative processing units help in value additions to the
raw products etc. In addition, co-operative societies are helping in building up of
storage go-downs including cold storages, rural roads and in providing facilities like
irrigation, electricity, transport and health.

Various development activities in agriculture, small industry marketing and

processing, distribution and supplies are now carried on through co-operatives.
In fertilizer production and distribution the Indian Farmers Fertilizer
Cooperative (IFFCO) commands over 35 percent of the market. In the production of
sugar the cooperative share of the market is over 58 percent and in the marketing
and distribution of cotton they have a share of around 60 percent. The cooperative
sector accounts for 55 percent of the looms in the hand-weaving sector.

Cooperatives process, market and distribute 50 percent of edible oils. Dairy

cooperatives operating under the leadership of the National Dairy Development
Board and through 15 state cooperative milk-marketing federations has now
become the largest producer of milk in the world. The groundwork for this was laid
in the early 1970's when the largest dairy development programme in the world -
Operation Flood - was launched. Operation Flood was a national marketing
strategy linked to a dairy infrastructure development programme that created a
chain of dairy processing plants, collection stations and a national milk
transportation grid. With the passage of the Insurance Act, cooperatives have
been allowed to entry into the insurance business. Insurance is a field where the
immense potential of cooperatives still remains untapped. The Indian Farmers
Fertilizer Cooperative has recently teamed up with a Japanese company and
formed a joint venture for undertaking general insurance business in India. This
signifies that Indian cooperatives have come of age in formulating strategic
alliances.

Thus, the co-operative societies in India in fact are playing multi-functional roles both
in rural and urban areas. An Expert Group constituted by the Govt of India in 1990,
recommended -
i) to facilitate building up of integrated co-operative structure;
ii) to make the co-operative federation organizations responsive towards their
members;

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iii) to minimize government interference and control in the functioning of co-
operatives and
iv) to eliminate politicization from the cooperative sector.

Based on the recommendations, the Central Government enacted the Multi

State Cooperative Societies Act, 2002 which provided for democratic and
autonomous working of the Cooperatives, which came into force with effect from
August 19, 2002. Various development activities in agriculture, small industry
marketing and processing, distribution and supplies are now carried on through co-
operatives. The co-operatives in India have made an all-round progress and their
role in, and contribution to agricultural progress has particularly been significant.

STRUCTURE AND SIGNIFICANCE OF COOPERATIVES

The cooperative structure in India consists of different constituents. At the bottom of

this structure are the primary societies, which render various types of services. Of
this large number about 80% is concerned with agriculture. Most of these societies,
about 60% deal with credit only. Thus a large majority of primary societies are
related to agriculture and credit. They perform various functions such things as
credit, irrigation, marketing, transports etc. These are generally divided into two
groups (i) credit societies and (ii) non credit societies with each of these two sub
groups is further split up into sub groups: (a) agricultural societies and (b)
non -agricultural societies. Agricultural societies (both credit and non credit
are found in rural areas, but non agricultural societies (both credit and non
credit) are found in urban areas. For supervision and financial assistance to
cooperative credit societies there are central banks and state cooperative banks. The
central banks supervise the functioning of the primary societies of a district or art of
a district and offer financial assistance to them. Their capital is drawn from public
deposits, share capitals and loans from other sources. Because of variety of
sources from which these banks can draw money, they act as a link between
cooperative societies and the money market. They function as balancing centers by
diverting funds of surplus societies to the needy societies. They also perform
ordinary banking functions.

At the top of the cooperative credit is the state cooperative bank, at the state level,
known as the apex bank. It controls the working of central banks and provides
finance to them. It also acts as the link between Reserve Bank of India from which it
borrows and the central banks and primary societies. It directs the cooperative
movement in the state. Its capital comes from share capital, public deposits and
loans and advances from the state and Reserve bank of India. The National
Cooperative Union of India is the apex organisation promoting the cooperative
movement in the country.

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All the above three types of institutions are concerned with short and medium term
credit of people. Long term loans are given by Land Development banks, which has a
unitary structure having branches at different places. These banks obtain their funds
from share capital, reserves, deposits, issue of bonds and debentures. However, the
major part of their resources is drawn from the floating of ordinary debentures in the
market. The investors in these debentures are LIC, commercial banks,
Cooperative banks, central and state governments and Reserve bank of India.

Cooperation in a vast country like India is of great significance because:

• It is an organization for the poor, illiterate and unskilled people
• It is an institution of mutual help and sharing
• It softens the class conflicts and reduces the social cleavages
• It reduces the bureaucratic evils and follies of political factions
• It overcomes the constraints of agricultural development
• It creates conducive environment for small and cottage industries

Composition: The Committee’s composition is determined by the General Body

Meeting or Managing Committee, which elects its members.

Duties and Responsibilities:

• Managing Committee defines mission /vision, strategic objectives, and policies of
cooperative, and ensures that plans conform to them
• Reviews and approves business plans & budgets before presenting to AGM
• Supervises management in the execution of approved plans
• Mobilizes resources for the co-operative on behalf of the members
• Monitors the activities of committees
• In some cases, draws up long term and annual plans

Depending on the size of the co-operative and the nature of its business, the
committee may with the authority of the AGM create a number of sub-
committees like Loans, Planning/Evaluation, Human Resource; Business
Development and Disciplinary subcommittees to enable it do a better job.

ii) Audit / Supervisory Committee

For purposes of ensuring good governance, it has become necessary to have another
organ known as The Audit /Supervisory Committee which consists of two to
three people who are charged with the responsibility of checking on the consistency
of the actual operations of the co-operative, and to ensure they support its vision,
mission and strategic objectives. The Audit / Supervisory committee is also charged
with ensuring that the financial affairs of the organization are handled with
prudence, due care and transparency.

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Composition: Two or three people elected by the AGM. The members must not
be members of other committee(s)or any of its sub-committees nor members
of the management staff. They must have strong financial skills with a deeper
understanding of the co-operative and its business. The Audit Committee members
should preferably include one woman and youth.

Duties and Responsibilities

• Checks for consistencies in the co-operative’s financial and operating records
• Authenticates the co-operative’s financial reports
• Ensures that the co-operative’s operating policies and procedures, and expenditure
controls are followed
• Ensures prudent Asset and Liquidity controls
• Regularly inspects books, records and transaction documents of the co-operative
• Monitors operations, especially the related financial documents and records.
• Checks operations of all co-operative’s departments, managers and officers
for compliance with the set policies, rules and standards.

iii) Management Staff Composition:

Professional people hired by the Committee and paid a salary or commission for their
services.

Duties and Responsibilities:

Appointed and supervised by the board/committee, the Management Staff performs
the following duties and responsibilities:
• Translating the mission and objectives into actions.
• Preparing Business plans, annual plans and budgets
• Maintaining books, records and accurate accounts
• Making periodic financial and operating reports
• Implementing policies and operating programmes of the co-operative
Good governance in a co-operative society is nonetheless necessary for smooth
functioning of its day-to-day affairs. It is expected that the members shall perform
various functions by letters of spirit rather than letter of law.

Documentation and Other Records

Being the organisation formed for the members, by the members of the
members themselves, it is absolutely necessary that proper documentation is
maintained.

This is so apart from the legal compliance mandatorily to be complied. The provisions
of ‘Maharashtra Co-operative Societies Act, 1960 require all the societies to
maintain certain documents, registers as well as such other records. Though the

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provisions are dispersed in the act as well as rules and byelaws, some of the
important provisions are discussed herein below.

The social significance of cooperation

Any discussion of the importance of cooperation is inadequate without reference to
its social significance and popular movement dimension. Only after viewing it from
these aspects can an overall picture be obtained of the profound and far-reaching
influence cooperation has had on laying the foundations of Indian society and its role
during the critical stages in the country’s history.

The 97th Constitutional Amendment Act of 2011 gave a constitutional status

and protection to co-operative societies. In this context, it made the following three
changes in the constitution:
1. It made the right to form co-operative societies a fundamental right (Article 191).
2. It included a new Directive Principle of State Policy on promotion of co-operative
societies
(Article 43-B2).
3. It added a new Part IX-B in the Constitution which is entitled “The Co-operative
Societies”
(Articles 243-ZH to 243-ZT).

CONSTITUTIONAL PROVISIONS
Part IX-B of the constitution contains the following provisions with respect to
the co-operative societies:
Incorporation of Co-operative Societies: The state legislature may make provisions
for the
incorporation, regulation and winding-up of co-operative societies based on the
principles of voluntary formation, democratic member-control, member-economic
participation and autonomous functioning.
Number and Term of Members of Board and its Office Bearers: The board shall
consist of such number of directors as may be provided by the state legislature.3 But,
the maximum number of directors of a co-operative society shall not exceed twenty-
one.
The state legislature shall provide for the reservation of one seat for the
Scheduled Castes or the Scheduled Tribes and two seats for women on the board of
every co-operative society having members from such a category of persons.
The term of office of elected members of the board and its office bearers shall
be five years from the date of election.
The state legislature shall make provisions for co-option of persons having
experience in the field of banking, management, finance or specialisation in any
other related field, as members of the board. But, the number of such co-opted
members shall not exceed two (in addition to twenty-one directors). Further, the co-

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opted members shall not have the right to vote in any election of the co-operative
society or be eligible to be elected as office bearers of the board.
The functional directors of a co-operative society shall also be the members of
the board and such members shall be excluded for the purpose of counting the total
number of directors (that is, twentyone).
Election of Members of Board: The election of a board shall be conducted before the
expiry of the term of the board so as to ensure that the newly elected members
assume office immediately on the expiry of the term of the office of members of the
outgoing board.
The superintendence, direction and control of the preparation of electoral rolls and
the conduct of elections to a co-operative society shall vest in such body, as may be
provided by the state legislature.
Supersession and Suspension of Board and Interim Management: No board shall be
superseded or kept under suspension for a period exceeding six months.5 The board
may be superseded or kept under suspension in case
(i) Of its persistent default
(ii) Of negligence in the performance of its duties
(iii) Of committing any act prejudicial to the interests of the co-operative society or
its members
(iv) Of there being a stalemate in the constitution or functions of the board
(v) Of the election body having failed to conduct elections in accordance with the
provisions of the State Act.
However, the board of any such co-operative society shall not be superseded
or kept under suspension where there is no Government shareholding or loan or
financial assistance or any guarantee by the Government.
In case of supersession of a board, the administrator appointed to manage the
affairs of such a cooperative society shall arrange for conduct of elections within the
period of six months and handover the management to the elected board.
Audit of Accounts of Co-operative Societies: The state legislature may make
provisions for the maintenance of accounts by the co-operative societies and the
auditing of such accounts at least once in each financial year. It shall lay down the
minimum qualifications and experience of auditors and auditing firms that shall be
eligible for auditing the accounts of the co-operative societies.
Every co-operative society shall be audited by an auditor or auditing firm, appointed
by the general body of the co-operative society. But, such an auditor or auditing firm
shall be appointed from a panel approved by the State Government or a body
authorised by the State Government on this behalf.
The accounts of every co-operative society shall be audited within six months of the
close of the financial year.
The audit report of the accounts of an apex co-operative society shall be laid before
the state legislature.

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Convening of General Body Meetings: The state legislature may provide that the
annual general body meeting of every co-operative society shall be convened within
a period of six months of the close of the financial year.
Right of a Member to Get Information: The state legislature may provide for access
to every member of a co-operative society to the books, information and accounts of
the co-operative society. It may also make provisions to ensure the participation of
members in the management of the cooperative society. Further, it may provide for
co-operative education and training for its members.
Returns: Every co-operative society shall file returns, within six months of the close
of every
financial year, to the authority designated by the State Government. These returns
shall include the following matters:
(a) Annual report of its activities
(b) Its audited statement of accounts
(c) Plan for surplus disposal as approved by the general body of the co-operative
society
(d) List of amendments to the by-laws of the co-operative society
(e) Declaration regarding date of holding of its general body meeting and conduct of
elections when due
(f) Any other information required by the Registrar in pursuance of any of the
provisions of the State Act.
Offences and Penalties: The state legislature may make provisions for the offences
relating to the co-operative societies and penalties for such offences. Such a law shall
include the commission or omission of the following acts as offences:
(a) A co-operative society wilfully makes a false return or furnishes false information
(b) Any person wilfully disobeys any summon, requisition or order issued under the
State Act
(c) Any employer who, without sufficient cause, fails to pay to a co-operative society
the amount deducted from its employee within a period of fourteen days
(d) Any officer who wilfully fails to handover custody of books, accounts, documents,
records, cash, security and other property belonging to a co-operative society to an
authorised person
(e) Any person who adopts corrupt practices before, during or after the election of
members of the board or office bearers.
Application to Multi-state Co-operative Societies: The provisions of this part shall
apply to the multi-state co-operative societies subject to the modification that any
reference to the “State Legislature”, “State Act” or “State Government” shall be
construed as a reference to “Parliament”, “Central Act” or “Central Government”
respectively.
Application to Union Territories: The provisions of this part shall apply to the Union
territories. But, the President may direct that the provisions of this part shall not
apply to any Union territory or part thereof as he may specify in the notification.

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Continuance of Existing Laws: Any provision of any law relating to co-operative
societies in force in a state immediately before the commencement of the
Constitution (Ninety-seventh Amendment) Act, 2011, which is inconsistent with the
provisions of this part, shall continue to be in force until amended or repealed or
until the expiration of one year from such commencement, whichever is less.

Table: Articles Related to Co-operative Societies at a Glance

Article No. Subject-matter
243ZH Definitions
243ZI Incorporation of Co-operative Societies
243ZJ Number and Term of Members of Board and its Office Bearers
243ZK Election of Members of Board
243ZL Supersession and Suspension of Board and Interim Management
243ZM Audit of Accounts of Co-operative Societies
243ZN Convening of General Body Meetings
243ZO Right of a Member to Get Information
243ZP Returns
243ZQ Offences and Penalties
243ZR Application to Multi-state Co-operative Societies
243ZS Application to Union Territories
243ZT Continuance of Existing Laws

Conclusion
After independence, India marched ahead with central planning in order to achieve
economic development. The new economic policy of globalization after eighties has
reduced the dominant role of the state. The pendulum of economic growth in India is
swinging from over commitment of public sector to over enthusiasm of the
private sector. The urban sector is growing impressively very fast in India. The growth
rate of service sector has become very impressive but the agricultural sector
has lagged behind. The problem of poverty and unemployment among common
people poses a real dilemma between the role of the State and role of the market
forces. Market forces fail to unleash forces for growth and at the most it tends to
generate low-income activities horizontally.

It has created a dangerous process of marginalization and contractualisation. As a

result the economic vulnerability and livelihood insecurity manifests. There is
inherent urban bias in the formulation of macro adjustment policies. It is creating a
system, which is ultimately as centralised and undemocratic as any that can be
imposed by the meddlesome bureaucracy. Its success can at best be treated as a
pyrrhic victory, when means win and ends lose. Market is never friendly to the
poor people or backward regions. It creates sharp regional imbalance. Majority
of the rural sector and the unskilled and illiterate section of the urban sector tend
to lose their right to livelihood and economic citizenship.

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In this background, the co-operative structure assumes significance and the
importance of the role played by it cannot be undermined. The people governing and
managing the affairs may not be qualified, educated or properly trained, but
the spirit of co-operation needs to be promoted. The professional like Chartered
Accountant definitely plays a vital role, which also throws various professional
opportunities, associated with it.

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 c. BASIC SERVICES & WELFARE MEASURES IN RURAL AREAS

Development of rural areas and the rural people has been the primary
concern of the economic planning and development process of the country. In the
wake of economic liberalization and structural adjustments and in order to provide a
safety net, especially for the rural poor, top priority has been accorded to rural
development through introduction of new programmes and restructuring of the
existing ones. The Ministry of Rural Development is committed to eradicating
poverty and hunger from the rural India and to usher in all round development of
rural masses. As such there has been a paradigm shift in the policy of rural
development, as the rural poor are treated as resource who form an integral part of
the development strategy. Accordingly, the Ministry of Rural Development is
implementing a number of schemes which aim at :

HUMAN AND GENDER DEVELOPMENT

The Human Development Report (HDR) published by the United Nations
Development Programme (UNDP) estimates the HDI in terms of three basic
capabilities : to live a long and healthy life, to be educated and knowledgeable. and
to enjoy a decent economic standard of living.

Bharat Nirman
This programme, launched in 2005-06 for building infrastructure and basic
amenities in rural areas, has six components, namely rural housing. irrigation
potential, drinking water, rural roads, electrification, and rural telephony. It is an
important initiative for reducing the gap between rural and urban areas and
improving the quality of life of people in rural areas.
Rural Roads have been identified as one of the six components of Bharat Nirman and
a goal has been set to provide connectivity to all villages with a population of 1000
(500 in hilly or tribal areas) with all-weather roads. New connectivity is proposed to a
total of 63,940 habitations under Bharat Nirman.
• Bridging the rural-urban divide : In order to ensure rapid development in rural
areas, the budgetary support for implementing the various rural development
schemes have been increased many folds over the years.
• Guaranteeing wage employment and ensuring food security : This is sought to be
achieved through the National Rural Employment Guarantee Act and Sampoorna
Grameen Rozgar Yojana.
• Making rural people the arbiter of their own destiny & to provide for economic
upliftment by self employment : For the development to be in consonance with the
people's wishes and aspirations, emphasis is put on participation of people as also
social mobilization of rural poor through Self-Help Groups and Panchayati Raj
Institutions.
• Creating rural infrastructure for better economic opportunities and growth :

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Connectivity is provided to all unconnected habitations through Pradhan Mantra
Gram Sadak Yojana (PMGSY) and village infrastructure is also created through works
undertaken under wage employment schemes.
• Providing for dignified living : The Ministry provides shelter, water and clean
environment through rural housing. drinking water and sanitation schemes.
• Restoring lost or depleted productivity of the land : This is done through watershed
development programmes and initiating effective land reform measures for
providing land to the landless rural poor.

MAJOR RURAL DEVELOPMENT PROGRAMMES

The major on going programmes for rural development are :
1. Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)
2. Sampoorna Grameen Rozgar Yojana (SGRY)
3. Pradhan Mantri Gram Sadak Yojana (PMGSY)
4. Indira Awaas Yojana (IAY)
5. Swarnjayanti Gram Swarozgar Yojana (SGSY)
6. Provision of Urban Amenities in Rural Areas
7. National Social Assistance Programme and Annapurna Scheme
8. Integrated Wasteland Development Programmes (IWDP)
9. Drought Prone Areas Programme (DPAP)
10. Desert Development Programme (DDP).

MAHATMA GANDHI NATIONAL RURAL EMPLOYMENT GUARANTEE ACT: MGNREGA

The National Rural Employment Guarantee Act aims at enhancing the livelihood
security of the people in rural areas by providing guaranteed wage employment
through works that develop the livelihood resource base of that area so that in that
process of employment generation durable assets are built up. The Act was enacted
in September 2005. The Act covered 200 districts in its first phase, implemented on
February 2, 2006 and was expanded to 330 districts in 2007-2008. All the remaining
districts have been notified on September 28, 2008. At present, 640 districts of the
country are covered under the NREGS. Now the NREGA is renamed as Mahatma
Gandhi National Rural Employment Guarantee Act.

Key elements of the Act

• Households domiciled in a village (not just those below the poverty line) are
entitled to register for seeking employment.
• Job cards containing photographs should be issued to all entitled applicants within
15 days of application.
• Demand for work from job card holders should be acknowledged and work allotted
within 15 days.
• The instrument for allocating employment is unskilled manual work.
• Works taken up should be predominantly for water and soil conservation,
afforestation and land development.

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• 50% of the works should be implemented by gram panchayats.
• The shelf of projects for a village should be recommended by the gram sabha and
approved by the zilla panchayat.
• No contractors and machinery should be used.
• Labour intensive works with 60% wage component should be taken up.
• Payment should be made within 15 days. The State's notified minimum wage for
agricultural labour is to be applied.

Institutional arrangements for transparency

(a) At the village level, States have been asked to set up local Vigilance and
Monitoring Committees and members of the Committee are to be trained to be
able to keep a watch on the quality of NREGA processes.
(b) At the district level, the District Vigilance and Monitoring Committee has been
authorized to review NREGA.
(c) At the State level, State Employment Guarantee Councils are being set up to
review and monitor the programme.
(d) At the National level, the Central Employment Guarantee Council rules have been
notified on 25.5.2006. The Central Employment Guarantee Council has been
constituted on 22.9.2006 and has met and reviewed the NREGA in detail.
All the documents on NREGA are also to be made available for public scrutiny.

Social Audit
Social Audit exercises by States are being facilitated through training and resource
materials so that beginning with at least one pilot district social audit can be done in
all districts. Social audit has begun in Rajasthan, Andhra Pradesh, Madhya Pradesh.
To enable States to do a quality social audit that meets the mandate of the Act, a
framework of social audit kit detailing the procedure has been prepared. From
October 27, 2006, a 4 days workshop of 5 States was convened in Hyderabad to train
resource persons from States on social audit and facilitate social audit in one district
each in five States : UP, Bihar, Chattisgarh, Maharashtra, Orissa. A second workshop
on capacity building for social audit for the remaining State's social audit capacity
building was held in February, 2007 at Udaipur.

Muster Roll verification exercise

States have been asked to undertake a Muster Roll verification exercise for 100%
verification of all muster rolls on all NREGA works. Formats and guidelines have been
shared and discussed with States.

MIS
A computer based MIS has been developed to monitor the Programme
[http://nrega.nic.in]. This makes data transparent and available in public domain to
be equally accessed by all. States are at different levels of operationalisation of MIS,
dependent on their existing infrastructure.

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Streamlining financial systems
A National Employment Guarantee Fund is being set up as a non-lapsable Public
Account to facilitate prompt transfer of funds to the States, since fund release is on
the basis of demand that is related to the work season and to a financial year. Fund
rules have been sent for final notification. Proforma for reporting physical & financial
performance have been evolved and shared with all States so that fund releases can
be measured against outcomes. Format and guidelines for preparing a labour budget
have been developed and shared with States to enable them to estimate and plan for
labour demand on a yearly basis and to calibrate fund releases according to the
labour budget. Setting up effective grievance redressal mechanisms States have been
asked to take action on complaints received. This is an area of concern that requires
greater focussed action by the States.

SAMPOORNA GRAMEEN ROZGAR YOJANA

The Sampoorna Grameen Rozgar Yojana (SGRY) was launched on 25th September,
2001 by merging the on-going schemes of Jawahar Gram Samridhi Yojana (JGSY) and
Employment Assurance Scheme (EAS).

Objectives
The objectives of the Programme are to provide additional wage employment in the
rural areas as also food security, alongside the creation of durable community, social
and economic infrastructure in the rural areas. The programme is self-targeting in
nature with special emphasis to provide Wage Employment to women, scheduled
castes, scheduled tribes and parents of children withdrawn from hazardous
occupations.

Salient Features of the SGRY

• The Sampoorna Grameen Rozgar Yojana (SGRY) is Centrally Sponsored Scheme
(CSS). It envisages for creation of additional wage employment of 100 crore I
mandays with an yearly outlay of Rs. 10,000 crore.
• Under the Scheme, foodgrains is being provided every year, free of cost, to the
State Governments and Union Territory Administrations.
• The cost of the cash component of the Programme is shared by the Centre and
State in the ratio of 75 : 25.
• The payment of foodgrains is made by the Ministry of Rural Development to the
Food Corporation of India (FCI) directly.
• About 100 crore mandays of employment are envisaged to be generated every
year in the rural areas.
• Every worker seeking employment under the SGRY will be provided minimum 5kg.
of foodgrains (in kind) per manday as part of wages. However, from 1.1.2005 to
31.3.2007, foodgrains has been provided 3 kg instead of 5 kg to the labourers due to
shortage of foodgrains.

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• The balance of wages will be paid in cash so that they are assured of the notified
minimum wages.
• The State Governments and UT Administrations will be free to calculate the cost of
foodgrains (paid as part of wages) at either BPL rates or APL rates or anywhere
between the two.
• Panchayat Raj Institutions (PRIs) can take up works as.per the felt need of the
areas.
• 200 identified districts have been subsumed in the National Rural Employment
Guarantee Act (NREGA) with effect from 1.4.2006. During the year 2006-07, SGRY
is being implemented to remaining 388 districts except Chandigarh and Delhi.

Annual Action Plan (AAP)

Each District Panchayat/DRDA, Intermediate Panchayat and Village Panchayat shall
independently prepare and approve, before the beginning of each financial year, an
Annual Action Plan equivalent in value of about 125 per cent of its share of funds
allocated in the preceding year. No work can be taken up unless it forms part of the
Annual Action Plan. The exercise of approval of Annual Action Plan should be
completed by the end of February of the preceding financial year.

Monitoring and Vigilance

(a) Vigilance & Monitoring Committees at the State, District & block levels have been
constituted for overseeing the various programmes of the Ministry of Rural
Development are also responsible to monitor the implementation of the works
under the SGRY.
(b) For every work sanctioned by District Panchayat/Intermediate Panchayat/Village
Panchayat, there is to be a monitoring committee of the villagers of the area
belonging to the locality/village where the work is undertaken to closely monitor the
progress and quality while the work is in progress. Every such committee shall have
five to nine members who would be nominated from amongst the social workers,
retired civil, defence or private sector officers, other retired-empivyees like teachers,
well-educated persons and will include an SC/ST and a women's representative. This
committee would be apprised by the implementing agency about the estimate of the
work, time-frame and quality parameters. The final report of the committee would
be attached along with the completion certificate of the work and would also be
placed in the next meeting of the Gram Sabha of the Panchayat where work has
been executed and also before the general assembly of the Intermediate
/District Panchayat if the work has been sanctioned by it.

Works to be taken up
The works to be taken up must be labour intensive, leading to the creation of
additional wage-employment, durable assets and infrastructure, particularly those
which would assist in drought-proofing such as soil and moisture conservation works,
watershed development, promoting of traditional water resources, afforestation and

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construction of village infrastructure and link roads, primary school buildings,
dispensaries, veterinary hospitals, marketing infrastructure and Panchayat Ghars.
The works taken up should in a manner that they are capable of giving a boost to the
rural economy besides creating additional employment opportunity as well.

Works Prohibited
(i) Buildings for religious purposes and the like.
(ii) Monuments, Memorials, Statues, Idols, Arch Gates/Welcome Gates and the
like.
(iii) Big buildings and big bridges.
(iv) Building for Higher Secondary Schools and Colleges.

PRADHAN MANTRI GRAM SADAK YOJANA : PMGSY

Pradhan Mantri Gram Sadak Yojana (PMGSY) was launched on 25th December. 2000.
It is a 100% Centrally Sponsored Scheme, with the target of connecting, through
good all-weather roads, every habitation that has a population of more than 1,000
within 3 years and every habitation with a population of more than 500 by the end of
the Tenth Plan. In respect of the Hill States (Himachal Pradesh, Jammu & Kashmir,
Uttaranchal), North-East, Sikkim, Desert Areas and Tribal (Schedule V) areas, the
objective is to connect habitations with a population of 250 persons and above.

Requirement of Funds for PMGSY

Based on the Core Network survey conducted after launching the programme and
the experience of the first 3 years with the average cost of construction of PMGSY
roads, the cost of the programme has been revised to Rs. 1,32,000 crore (as against
Rs. 60,000 crore projected initially).

Bharat Nirman
The President of India, in his address to Parliament on 25th February, 2005,
announced a major plan for rebuilding rural India and had called it Bharat Nirman.
The Government has identified Rural Roads as one of the six components of Bharat
Nirman and has set a goal for the UPA Government to provide connectivity to all
villages with a population of 1,000 (500 in the case of hilly or tribal areas) with an All
weather road by 2009.
A total of 54,648 habitation is proposed to be covered under Bharat Nirman. This
would involve construction of 1,46,184 km of rural roads. In addition to new
connectivity, Bharat Nirman envisages upgradation of 1,94.130 km of rural roads.
Under the rural roads component of Bharat Nirman, 38,575 havitations have been
provided all whether road connectivity upto December 2010 and projects for
connecting 14,995 habitations are at different stages of implementation. During
2010-11 over 28,963 km of all whether roads has been completed upto December
2010. New connectivity has been provided to nearly 3,949 habitations with an
expenditure of Rs. 9,677 crore under PMGSY.

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Quality of Works
Pradhan Mantri Gram Sadak Yojana lays special emphasis on quality of road works.
The standards have been prescribed through the following publications :
(i) `Rural Roads Manual' published by Indian Roads Congress, IRC SP : 20-2002.
This manual has been prescribed as a technical manual for the programme.
(ii) The specifications for the works have been prescribed through `Specifications
for Rural Roads, August 2004' published by Indian Roads Congress for Ministry of
Rural Development.
Ensuring the quality of road work is primarily the responsibility of the State
Governments. A three tier quality mechanism has been prescribed for facilitating
this. Quality is sought to be ensured through an in-house mechanism wherein the
contractors are required to carry out mandatory quality control tests prescribed
under the specifications, under the supervision of District Programme
Implementation Unit (PIU). The record of quality control tests is maintained by the
PIU in prescribed Quality Control Registers. The supervisory officers of the executing
agency are required to inspect the works with a view to ensure the quality of work as
per standards. This tier is required to be monitored at the district and the State level.

INDIRA AWAAS YOJANA

Housing is a basic need which is critical for determining the quality of human life. A
roof over the head endows a shelterless person, with an essential asset and improves
his physical and mental well-being. Hence, fulfilling the need for rural housing and
tackling rural housing shortage is an important task to be undertaken as part of the
poverty alleviation efforts of the government. The Indira Awaas Yojana (IAY) is a
subsidy based Scheme of the Ministry of Rural Development to provide houses to the
poor in the rural areas.

Salient Features of IAY

(a) In 1985-86, Indira Awaas Yojana (IAY) was launched as a sub-scheme of Rural
Landless Employment Guarantee Programme and from 1989, it became a sub-
scheme of the Jawahar Rozgar Yojaria (JRY). On January 1, 1996. IAY was finally
delinked from JRY and made an independent Scheme. In the beginning, it was meant
to provide assistance for constriction ubelow line n3P viral households belonging
to the Scheduled Cstes, Scheduled Tribes and fr reed labourer categories. Later on,
the scope oaf the Scheme was extended to ocoverl non-Scheduled Castes and
Scheduled Tribes viral BPL poor with the condition that the coverage of SC/ST be 60%
of the total IAY allocation. 3% of the houses are also reserved for the rural BPL
physically and mentally challenged persons. The benefits of the Scheme have also
been extended to the families of the personnel from defence services paramilitary
forces killed in action as well as exservicemen, displaced persons and special tribal
groups. The dwelling units have invariably to be allotted in the name of a
female member of the beneficiary household. Alternatively, it can be allotted in the

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name of both husband and wife. Only in case there is no eligible female member in
the family, a house can be allotted to a male member of the family.
(b) The funding of the IAY is shared between the Centre and State in the ratio of
75:25. From the year 2005-06, the allocation of funds under the Indira Awaas Yojana
to the States/UTs is being made on the basis of rural housing shortage estimated by
the Office of the Registrar General of India based on 2001 Census and the poverty
ratio, as approved by the Planning Commission, giving 75% weightage to housing
shortage and 25% weightage to poverty ratio. Similarly, the allocation to a district
assign 75 : 25 weightage to housing shortage and SC/ST population respectively.

IAY as a Part of Bharat Nirman

Bharat Nirman Programme is a business plan of the Government of India
comprising six components aimed at augmenting the rural infrastructure base of the
country and rural housing is one of the them. During the time-frame of Bharat
Nirman from 2005-06 to 2008-09, 60 lakh houses have to be constructed through the
Indira Awaas Yojana (IAY) for the rural BPL families. During the year 2005-06, 15.52
lakh houses have been constructed against a target of 14.41 lakh houses. During the
year 2006-07 the target is to construct 15.33 lakh houses against which 8.16 lakh
houses have been constructed so far and 9.14 lakh houses are under construction at
various stages.

SWARNJAYANTI GRAM SWAROZGAR YOJANA: SGSY

The Swarnjayanti Gram Swarozgar Yojana (SGSY) is a major on-going
programme for the self-employment of rural poor. The programme was started from
1.4.1999 after restructuring the erstwhile Integrated Rural Development Programme
(IRDP) and its allied programmes namely Training of Rural Youth for Self Employment
(TRYSEM), Development of Women and Children in Rural Areas (DWCRA), Supply of
Toolkits in Rural Areas (SITRA) and Ganga Kalyan Yojana (GKY), besides Million Wells
Scheme (MWS). The basic objective of the SGSY is to bring the assisted poor families
(Swarozgaris) above the Poverty Line by providing them income-generating assets
through a mix of bank credit and governmental subsidy. The programme aims at
establishing a large number of micro enterprises in rural areas based on the ability of
the poor and potential of each area.

Target Group
Families below the Poverty Line (BPL) in rural areas constitute the target
group of the SGSY. Within the target group, special safeguards have been provided to
vulnerable sections, by way of reserving 50% benefits for SCs/STs, 40% for women
and 3% for disabled persons.

Financial Assistance
Assistance under the SGSY, to individual Swarozgaris or Self-Help Groups, is
given in the form of subsidy by the government and credit by the banks. Credit is the

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critical component of the SGSY, subsidy being a minor and enabling element.
Accordingly, the SGSY envisages greater involvement of the banks. They are to be
involved closely in the Planning and preparation of Project Reports, identification of
activity clusters, infrastructure planning as well as capacity building and choice of
activity of the SHGs, selection of individual Swarozgaris, pre-credit activities and
post-credit monitoring including loan recovery.
Subsidy under the SGSY to individuals is uniform at 30% of the Project Cost
subject to a maximum of Rs. 7,500. In respect of SCs/STs and disabled persons, the
subsidy is 50% of the Project Cost, subject to a maximum of Rs. 10,000. For groups of
Swarozgaris (SHGs), the subsidy is 50% of the cost of the scheme, subject to per
capita subsidy of Rs. 10,000 or Rs. 1.25 lakh, whichever is less. There is no monetary
limit on subsidy for Irrigation Projects. Subsidy is back ended.
Credit targets under the SGSY are fixed every year by a Committee having
representatives from the Ministry of Finance, NABARD, Reserve Bank of India (RBI),
State Bank of India (SBI) and Ministry of Rural Development.
A close coordination between different agencies responsible for implementation of
SGSY is critical for the success of the programme. In order to ensure coordination
amongst Rural Development functionaries, bankers and PRIs etc. various Committees
are constituted under SGSY. At Central level, Central Level Coordination Committee
(CLCC) has been constituted to review and ensure effective implementation of the
dcuss the It consists o of representatives from discuss the progress of rog the
Pro Likewise at State level Central Level SGSY Committee has been constituted which
meet every quarter to ensure proper follow up and effective implementation of the
programme. At District level there are district SGSY Committee under the
chairmanship of District Collector/ Chief Executive Officer which meets every month
to review the progress of SGSY and suggest corrective action wherever necessary.
There are block level SGSY Committee in each block meets once in a month.

PROVISION OF URBAN AMENITIES IN RURAL AREAS

The Scheme of Provision of Urban Amenities in Rural Areas (PURA) was announced
by the Hon'ble Prime Minister in his speech on 15th August, 2003 based on the
concept promoted by the Hon'ble President of India to bridge the rural-urban divide
and achieve balanced socio-economic development.
The scheme aims to meet the gaps in physical and social infrastructure in the
identified rural clusters consisting of 10-15 villages around towns with population of
one lakh or less to further their growth potential. The identified areas of intervention
and support are :
• Road, transportation and Power connectivity.
• Electronic connectivity in the form of reliable telecom, internet and IT Services.
• Knowledge connectivity in the form of good educational and training institutions.
• Market connectivity that would enable farmers to get the best price for their
produce.

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• Provision of drinking water supply and upgradation of existing health facilities.
These facilities are expected to be created by the implementing Agencies by
converging resources of the on-going Central and State Government programmes. If
there is any gap which cannot be funded under any scheme or the available funds
under the existing schemes are insufficient for the purpose, such gaps will be funded
through PURA.
The PURA builds on the existing schemes while providing funds for critical gaps.
Ministry of Rural Development in consultation with Planning Commission decided to
launch a pilot phase for implementation of PURA in seven states selecting one cluster
of 10-15 villages in each State. The seven clusters selected for the pilot phase are
Rayadurg (districtAnnanthpur in the State of Andhra Pradesh), Gohpur (district
Sonitpur in the State of Assom), Motipur (district Muzzafarpur in the State of Bihar),
Basmath (district Hingoli in the State of Maharashtra), Kujunga (district Jagatsinghpur
in the State of Orissa), Shahpur (district Bhilwara in the State of Rajasthan) and
Bharthana (district Etawah in the State of Uttar Pradesh).
A Steering Committee on PURA under the chairmanship of Secretary (RD) has been
constituted to examine, sanction and monitor the implementation of the project
under PURA. The Committee in its meeting held on 11th January, 2005 decided that
each cluster under PURA scheme would be financed to the tune of Rs. 4-5 crore over
the period of three years.

Rural drinking water : Drinking water supply is one of the components of Bharat
Nirman. About 73.91 per cent of rural habitations are fully covered under the
provision of safe drinking water in rural areas as measured by habitations with the
provision of at least 40 litres per capita per day (lpcd) of safe drinking water. The rest
are either partially covered or have chemical contamination in drinking water
sources. As against the target of 7,98,967 habitations to be covered during the
Eleventh Five Year Plan, the coverage up to 31st March, 2012 was 6,65,052 (83.23
per cent). The financial outlay for rural drinking water supply increased considerably
under Bharat Nirman from Rs. 4,098 crore in 2005-06 to Rs. 10,500 crore in 2012-13.
All uncovered habitations have been reported as being covered on 1st April, 2012.
Census 2011 reported that 84.2 per cent rural households as having improved
drinking water sources with tap water, hand pumps, and covered wells constituting
the major sources. Therefore ensuring safe drinking water for the remaining 15.8 per
cent of rural households with unimproved sources and 22.1 per cent of rural
households that have to fetch water from beyond 500 m is the major challenge. In
the Twelfth Five Year Plan period, the focus is on increasing the service level from 40
lpcd to 55 ipcd and provision of drinking water through piped water supply schemes
and household tap connections.

Rural Sanitation-Total Sanitation Campaign (TSC) : According to Census 2011, only

32.7 per cent of rural households have latrine facilities. The TSC renamed the Nirmal
Bharat Abhiyan (NBA) aims to transform rural India into `Nirmal Bharat' by adopting

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a community saturation approach and achieve 100 per cent access to sanitation for
all rural households by 2002. NBA projects have been sanctioned in 607 rural districts
with a total outlay of Rs. 22,672 crone, with a central share of Rs. 14,888 crore.
Allocation for the NBA has increased from Rs. 1,500 crore in 201 1-12 to Rs. 2,500
crore in 2012-13. Under the NT3A, the provision of incentives for individual
households latrine units has been widened to cover all above poverty line (APL)
households that belong to/are SCs, STs, small and marginal farmers, landless
labourers with homesteads, physically challenged, and women headed along with all
BPL households. Since 1999, over 8.97 crore toilets have been provided to rural
households under the TSC/NBA. A total of 12.57 lakh school toilet units and 4.24 lakh
Anganwadi toilets have also been constructed. With increasing budgetary allocations
and focus on rural areas, the number of households being provided toilets annually
has increased from 5.96 lakh in 2002-03 to 88 lakh in 2011-12. In the year 2012-13
(up to November 2012), more than 27 lakh toilets have been provided to rural
households. A total of 28,002 gram panchayats, 181 intermediate panchayats, and 13
district panchayats have been awarded the Nirmal Gram Puruskar (NGP) in the last
seven years.

NATIONAL SOCIAL ASSISTANCE PROGRAMME AND ANNAPURNA SCHEME

The National Social Assistance Programme (NSAP) comprising of National Old
Age Pension Scheme (NOAPS), National Family Benefit Scheme (NFBS) and National
Maternity Benefit Scheme (NMBS) came into existence w.e.f. 15.8.1995 for providing
social assistance benefit to poor households in the case of old age, death of the
primary breadwinner and maternity. NMBS was transferred to Department of Family
Welfare w.e.f. 2000-01 on the recommendation of the Group of Minister and a new
Scheme called Annapurna was launched on 1.4.2000 in the Ministry of Rural
Development. These Schemes continue to be administered by the Ministry of Rural
Development upto 2001-02 as centrally sponsored schemes until in 2002-03 these
schemes were transferred to the State Plan on the recommendations of the National
Development Council.
After the transfer of the schemes, under NOAPS the amount of additional
central assistance of Rs. 75 per month was provided per beneficiary for destitute
aged 65 years and above until Finance Minister in his budget speech for the year
2006-07 has announced an increase in pension under NOAPS from Rs. 75 per month
per beneficiary to Rs. 200 per month per beneficiary and making it effective from 1st
April, 2006. Under NFBS Rs. 10,000 is given on the death of the breadwinner. This
benefit is given to the households below the poverty line on the death of the primary
breadwinner who was in the age group of 18-64 years and whose earnings
contributed substantially to the total household income. Under the Annapurna
Scheme the beneficiaries should be 65 years or above and must be destitute. The
beneficiaries will be entitled to 10 kg of foodgrains per month free of cost. The
ceiling on the total number of Annapurna beneficiaries will be at least 20% of the
persons eligible to receive pension under NOAPS. The State Governments/UTs can

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utilize the ACA provided to them by taking up one or two or all the three schemes or
in any other combination.in accordance with their own priorities and needs. After
the transfer of the schemes to the State Plan, the total combined allocation for the
Schemes is decided by the Planning Commission. The State-wise allocation of ACA is
made by the Ministry of Rural Development and Planning Commission and the funds
are being released by the Ministry of Finance /Ministry of Home Affairs as Additional
Central Assistance (ACA) to the States/U'1's. The Ministry of Rural Development also
monitors the progress of the Schemes and recommends the release of ACA to the
States to the Ministry of Finance.

INTEGRATED WASTELANDS DEVELOPMENT-PROGRAMME: IWDP

Integrated Wastelands Development Programme (IWDP), a Centrally
Sponsored Programme, has been under implementation since 198 9-90. From 1st
April, 1995, the programme is being implemented through watershed approach
under the Common guidelines for Watershed Development. The developmen t of
wastelands and degraded lands under the programme is expected to promote the
generation of employment in the rural areas besides enhancing the participation of
pe sustainable development of land and equitable sharing of ople at all stages-
leading to the benefits.
IWDP envisages the development of non-forests wastelands in the country.
The basic approach in implementation of this programme has been modified from
1.4.1995 when the Guidelines for Watershed Development through watershed
approach came into force.
Since then, projects for development of wastelands on micro watershed basis
are being sanctioned. From 1999-2000, new IWDP projects are prioritized for
sanction in consultation with. the State Governments. The project proposals have to
be prepared by the Zilla Panchayats/District Rural Development Agencies and the
same are submitted to the Department through the State Government concerned for
consideration of a Project Sanctioning Committee headed by the Additional
Secretary in the Department of Land Resources. The Projects have to be
implemented over a period of five years.

Objectives
The Programme is aimed at integrated development of wastelands/ degraded lands
based on village/micro watershed plans. The Programme aims at fulfilment of the
following objectives :
• Developing wastelands/ degraded lands on watershed basis, keeping in view the
capability of land, site conditions and local needs.
• Promoting the overall economic development and improving the socio-economic
condition of the poor and disadvantaged sections inhabiting the programme areas.
• Restoring ecological balance by harnessing, conserving and developing naturals
resources i.e., land, water, vegetative cover.
• Encouraging village community for :

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Sustained community action for the operation and maintenance of assets created
and further development of potential of the natural resources in the watershed.
Simple, easy and affordable technological solutions and institutional arrangements
that make use of, and build upon, local technical knowledge and available materials.
• Employment generation, poverty alleviation, community empowerment and
development of human and other economic resources of the village.

DROUGHT PRONE AREAS PROGRAMME: DPAP

Drought Prone Areas Programme (DPAP) is the earliest area development
programme launched by the Central Government in 1973-74 to tackle the special
problems faced by those fragile areas, which are constantly affected by severe
drought conditions. These areas are characterised by large human and cattle
populations which are continuously putting heavy pressure on the already degraded
natural resources for food, fodder and fuel. The major problems are continues
depletion of vegetative cover increase in soil erosion and fall in ground water levels
due to continuous exploitation without any effort to recharge the underground
aquifers.

DESERT DEVELOPMENT PROGRAMME: DDP

The Desert Development Programme (DDP) was started both in hot desert
areas of Rajasthan, Gujarat and Haryana and the cold deserts ofJammu & Kashmir
and Himachal Pradesh in 1977-78. From 1995-96, the coverage has been extended to
a few more districts in Andhra Pradesh and Karnataka. In hot sandy desert areas,
sand dune stabilization and shelterbelt plantations were given greater weightage. On
the other hand, in cold desert areas. since rainfall is negligible, crop cultivation and
afforestation were taken up only through assured irrigation. In these areas, the main
activity was water resources development by construction of channels for diversion
of water flow from glaciers and springs to the fields and lift irrigation works in the
valleys.

Objectives
The programme has been conceived as a long-term measure for restoration of
ecological balance by conserving, developing and harnessing land, water, livestock
and human resources. It seeks to promote the economic development of the village
community and improve the economic conditions of the resource poor and
disadvantaged sections of society in the rural areas. The major objectives of the
programme are as under :
• To mitigate the adverse effects of desertification and adverse climatic conditions
on crops, human and livestock population and combating desertification.
• To restore ecological balance by harnessing, conserving and developing natural
resources i.e., land, water, vegetative cover and raising land productivity.

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• To implement developmental works through the watershed approach, for land
development, water resources development and afforestation/pasture
development.

CHALLENGES OF RURAL DEVELOPMENT

Some of the problems and challenges of rural development are highlighted as :
1. Development Challenges
Many evaluation studies have pointed out the gaps in implementation of the
programmes affecting the delivery of benefits to the intended beneficiaries. Gram
Panchayat is the lowest. level of the hierarchy of Panchayati Raj Institutions which is
expected to plan and implement the welfare and development programmes of the
Government. However, the Gram Panchayats are poorly equipped with manpower
and equipment in most of the States. The knowledge and understanding of the
functionaries of Grain Panchayat is inadequate. The situation at the intermediary
level of Block Panchayat is somewhat better. Nevertheless, much needs to be done
to enhance their capacity to deliver public services. Under Mahatma Gandhi National
Rural Employment Guarantee programme delays have been seen in provision of
work to eligible rural households, payment of wages and compensation. Provision of
worksite facilities is not of stipulated norms and quality of work done is not in
accordance with the required standards. Under Swarnajayanti Swarozgar Yojana
(SGSY) now renamed as National Rural Livelihood Mission, effort is being made to
provide financial assistance, organizational and infrastructural support to the poor to
enable them to cross the poverty line. However, it is found that institutional
weaknesses of DRDAs and Blocks remain, participation by banks remains low
especially in poverty stricken states, and the poor in general have not been properly
mobilized. It is expected that under the new initiative of NRLM the weaknesses in
this programme will be plugged. Pradhan Mantri Gramin Sadak Yojana is a major
rural infrastructure development programme of the country which aims to provide
connectivity to rural habitations by constructing all weather roads. So far this
programme has been able to provide connectivity to 73,000 habitations and 4.18
lakh kms-of roads have been constructed.
There is a need to ensure proper quality in the works by improving people's
peop participation in monitoring of the execution of the road works. The access to
safe drinking water and sanitation is critical to well being of the rural population.
Ministry spends over scale 10,000 crores for this purpose. The success of this
programme requires large scale people's involvement and sensitization for adopting
hygienic practices in individual and community living. Disposal of wastes needs to be
done safely and villages need to be freed from open defecation. This requires
awareness generation and community participation.
In order to provide shelter to rural households, Ministry is implementing IAY
programme which aims to provide financial support to build individual houses. So far
71 lakh houses have been built. The pace of house construction requires speeding up

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and the quality of work also needs improvement. Use of energy efficient
environment friendly materials need to be encouraged.

2. Completing the Agrarian Transition

The condition of agriculture is critical to the life of the rural population. There
are 12 crore cultivators and 10.7 crore agricultural labourers who derive their
livelihood from agriculture. Nearly 86% of the cultivators are small and marginal
farmers tilling less than 40% of total arable land in the country and having limited
access to key farm inputs like improved seeds, fertilizers, water, pesticides, modern
farm implements and credit. Nearly 70% of the arable land does not have access to
irrigation during the rabi season.
Resultantly, productivity of foodgrains remains as low as 1.3 tonnes per
hectare in the country as against 4 tonnes per hectare in China. Food security cannot
be attained unless the country is able to produce 240 to 250 million tonnes of
foodgrains every year to feed its growing billion plus population. The Government
has initiated a number of programmes such as RKVY, NFSM, NHM. and IWMP for
watershed management in dryland areas to augment agricultural productivity and
attain self reliance. However, on account of the limited reach of the agriculture
extension system in the country through KVKs and State Departments of Agriculture,
situation in agriculture leaves much to be desired. The observed agricultural growth
rates during the 1990s are less than those of 1980s. During the current decade also,
the growth rate has fallen further in agriculture. This poses a serious threat to food
security, rural livelihoods, self-reliance and price stability in the country.

3. Improving Human Capital

The quality of human resources in the country also requires significant
development. Nearly 30% of the population still remains illiterate and 46% of
children below 3 years suffers from malnutrition. With lack of awareness and access
to family planning measures among the rural households the total fertility rate in the
poorer states is above 3.0 against the national average of 2.6 and the desired norm
of 2.1. Infant mortality rate in the country remains at 45 per 1000 live births and also
shows wide variation among the States. Government is implementing a host of
programmes for improving the status of health and education of the population. The
outreach of these programmes also need to be enhanced by proper engagement of
the grassroot functonaries like ASHA (for health) and literacy workers in the villages.

4. Voluntary Action to Streamline Programme Delivery

It may be possible to avoid the problems in agriculture and rural areas if steps
are taken for streamlining the implementation of existing government programmes
by a campaign for awareness generation, capacity building of institutions and greater
engagement with the people. This will require closer contact with the people.
Considering the limitations of the existing government machinery, closer contact
with people may be established through a large village based cadre of volunteers

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who may be provided suitable training and incentives to actively support the
administrative machinery and the Panchayati Raj Institutions in implementation of
government programmes. Besides establishing closer contacts with the rural
households, the volunteers may assist the government functionaries in shouldering
the responsibilities of delivering public services in a variety of ways. This can greatly
improve administrative efficiency in a cost effective manner. Therefore, it is
suggested to create "Bharat Nirman Volunteers Cadre."

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 d. STATE CONTROL OVER RURAL LOCAL GOVERNMENTS
All the countries in the world developing and developed, have a system of
local government, as we under-stand it, and exercises a greater or lesser degree
of control over bodies. The spectrum is wide but the extremes of complete control
do not exist. However, in the Indian context, a study of early conferences of the
central council for local self-government and those on community development
gives us the impression that anyone who argued for any form of supervision or
control of panchayati raj institution was looked on as betraying an ideal-the
ideal being that the purpose of the panchayat was to create local self governing
communities at the village level. Many people thought of Panchayati Raj Institutions
as being entirely independent of any other institutions.

In fact, no aspect of local government is as controversial and ticklish as a

subject of relationship between the state and the panchayati raj institutions.
There are two schools of thought representing two divergent views in this regard.
The advocates of the first school of thought hold the view that local authorities
are and should be meant for making the local people self-governing. They
believe that external interference should be limited to the state government of
expenditure and the challenge of items in the courts. They hold that the
"autonomy of local government is axiomatic (self evident). It is also believed that
the mechanism of control and supervision of panchayati raj institutions is
unwarranted, even fought with mischief;

self-government would cease to exist if it is made subject to external control

and supervision. Further, S.R.Maheshwari rightly points out that the system
of control should seek to fulfil the following objectives;
(1) To ensure fulfilment of policies, programme and targets;
(2) To ensure that the panchayati raj institutions, are able to establish sound and
healthy, traditions and conventions of work and behaviour;
(3) To ensure an atmosphere of mutual trust and confidence between the elected
and permanent personnel Panchayati Raj institutions.
The philosophy of state government and panchayati raj relationship was thus spelt
out by the Mehta team.
The team was of the views that relationship between the state and
panchayati raj bodies must not be cramped by too much control by
government and government agencies.
It must have the power to make mistakes and to learn by making mistakes,
but it must also receive guidance which will help it to avoid making mistakes.

The Pattern and Machinery of Supervision and Control

The pattern of supervision and control over panchayati raj institutions is
constituted by four main elements viz: basis, nature, level and form. The basis

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is simply indicative of the Act authorising the state government to establish the
panchayati raj institutions.
For instance, the Himachal Panchayati Raj Act 1968, authorises the state
government to setup gram panchayats and panchayat samitis. The nature of
control is external as well as executive. In fact, we find that the control is mostly
exercised by the executive wing of the state government. The state legislature
plays little role.
It mainly deals with lying down the general statutory directions. To be
more specific it relates to the powers and functions of control and supervision
exercised through the agency of executive departments and functionaries of the
state government. The level stands for the various levels of government, i.e.,
state, regional and local.
In the final analysis, we can say that the form of control indicates the type
of control exercised by the state government over these institutions.
Technically speaking, panchayati raj institutions have been the concern of the state
government. The union, however, has also shown great deal of interest in their
development object of guiding and educating the institution of panchayati raj with
this end, a complex of bodies have been created at i:he union level. These bodies
are concerned mainly with study, planning, policy formulation and research on the
problems of panchayati raj. They have been constituted at the union level, viz.
central council of local self-government and National Institute of Rural
Development, Hyderabad.
Types of state Control over Panchayathi Institution: In terms of form all the
states govts exercise form types of control over these Institutions. They are
(1) Institutional (2) Administrative (3) Technical and (4) Financial

1. Institutional Control
The terms 'institutional control' and 'supervision' are used to connote and
cover all those statutory provisions which empower some specific agency Usually
the government or the collector's role is to regulate the formation, area and
jurisdiction, membership structure and composition, elections, size of the Councils,
functional jurisdiction, staff, inter institutional disputes and so on and so
forth. To be more specific, the various provisions as envisaged in the various
Acts, thus determine the vital components of an institution, i.e., name, area,
boundaries and membership.
In fact, institutional control is the corner stone of the pattern of control
and supervision over panchayati raj institutions, which relates to the basic
structure and fabric of the panchayati raj institutions.
It tends to ensure that these statutory bodies in their operation do not
violate or viliate the spirit and the letter of the law that has created the
panchayati raj bodies. In otherwords, the institutional control is a multi-
dimensional affair which takes the forms below:

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The control is exercised by the state government and its functionaries over the
Panchayati Raj system. There are a number of provisions to the Controlling Acts in
the States.
(i) Determining the Size and Boundaries of Panchayati Raj Institutions As the
panchayati raj institutions are off springs of the Acts enacted by the state
legislatures; not products of organic evolution of self-government, their
jurisdiction is subject to control. The various types of panchayati raj legislations of
various states empower the state government to determine the size and
boundaries of these institutions.
(ii) Amendment of Schedule and Delegation of Authority: The various state Act
vest sole authority in the State government to amend the schedule wherein the
functions of these bodies are enumerated. The state government has been
authorised to delegate all or any of its powers to any officers or authority for
carrying out the functions.
(iii) Power of the Government to hold General Election: Another important type
of institutional control that the state government exercises over panchayati raj
institutions is in regard to their elections. The second important aspect relates to
the schedule of dates within which the elections are to be held and completed.
(iv) Determining the Size of the Council: In regard to the size of the council,
the state governments possess a lot of discretionary powers. Similarly, in regard to
the mode of elections too, the panchayati raj institutions are subject to
governments control.
The degree of control is greater in the case of panchayats as compared to
other tiers. In all most all the states, the precise strength and composition of
the intermediate and apex tiers, is explicitly defined in the Acts.governing their
establishment. However, in all the states the various statutes establishing the
panchayats merely prescribe the minimum and maximum number of members,
empowering the collector to detemine the actual size of the panchayats.
(v) Control over Panchayati Raj staff
This is an important medium of institutional control. Rather it is one of the
basic ingredients of the institutional control over panchayati raj institutions.
It is interesting to note that in addition to controlling the condition of service,
strength and status of state cadre officials, the various acts authorise the state
governments to regulate the conditions of service of even those officials whom
the panchayati raj institutions recruit on their own, and pay out of their own funds.
(vi) Settlement of Inter-Institutional Disputes
As Panchyati Raj system is a three-tiered, interlocked institutional structure, the
possibility of conflicts and disputes between institutions at the state level and
at different levels are quite high. The disputes may arise between two panchayat
samitis or between a panchayat samiti and a municipal board. The various
panchayati raj Acts have such provisions. the work of the bodies at the lower
level. The objective of such provisions is to avoid vertical inter-institutional
conflicts.

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 (vii) Control over Properties, Papers, Premises, Records and Documents
Although the Panchayati Raj bodies have been granted corporate status (by the
statutes governing the panchayati raj institutions) with powers to manage their
own affairs and properties, they are nevertheless subjected to a variety of
institutional controls, designed to keep a watch on their properties, papers,
records and documents.
The main purpose of the foregoing media of institutional controls is to
enable the government and various government departments to maintai control
and supervision over the administrative, technical and financial aspects of the
working of the panchayati raj bodies.

2. Administrative Control
The term administrative control refers to these powers and measures
which enable the controlling agency to check and regulate the day to day policies
and administration of panchayati raj institutions. As already stated, every state
has a well-knit administrative apparatus from the state level to the block level to
exercise administrative control over panchayati raj bodies.
It includes both control over 'policy' and 'administration The main objective
of administrative control is to prevent the implementation of certain policies and
decisions if they run counter to the basic goals and purposes of the institution
concerned. The following are the major media of administrative control:
(i) Supersession and Dissolution of Panchayati Raj Institutions
In all states, statutory provision exist for the supersession and dissolution
of panchayati raj bodies before the expiry of their normal term by state
governments, The state is empowered to suspend or supercede the panchayati
raj institutions, if, in the opinion of government, these bodies are incompetent
to form or persistently default in the performance of duties imposed on them
by the Acts, or exceed or abuse their powers. On the suspension or
supersession of gram panchayats and panchayat samitis, under the controlling
Acts, all members will cease to exercise their powers and functions and vacate
their seats in case of suspension and supersession respectively.
(ii) Power to Cancel or Suspend Resolutions
A relevant legislations empower the state governments to cancel or
suspend resolutions by the panchayati raj institutions and direct or prohibit the
execution of any work in the public interest.
(iii) Removal of Members of Panchayati Raj
This is also an important medium of administrative control. All the
contolling Acts of various states make provision for this type of control.
However, though the authorities are competent to order the removal of
members and the grounds of such as well , the mode of removal is not
uniform in all states. The main purpose of providing for the removal of members
and office bearers from the panchayati raj institutions is to enable the

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controlling authority to take adequate discriplinary action against an individual
who does not abide by the laws and rules governing these istitutions.
(iv) Inspections and Tours
The main purpose of inspection is to satisfy the rules and regulations.
This is done through the medium of periodic inspections of their papers,
proceedings of gram panchayats and their immovable property, and also by
demanding any information desired to make the supervision and control
worthwhile and effective, the various state governments have laid down the
scale of inspection and tours for the heads of departments regional district and
block level officers. However, for the officers attached to the particular
headquarter it is the discretion of the head of the department to prescribe the
scale of inspections and tours,

3. Technical Control
Technical supervision refers to the regulation and supervision of various
plans, programme and projects formulated and implemented by panchayati raj
institutions within their statutory functional jurisdiction. Although the distinction
between administrative control and techical control is rather tenuous, yet the
state government and and the technical department in almost all the states
exercise technical control and supervision over panchayati raj istitutions. The
extent and medium of control and supervision over panchayati raj bodies differs
from state to state, in accordance with the status and level of technical
functionaries. But the media of control in most of the states can be summed
up in the following categories.
(i) Providing technical approval of schemes and projects
(ii) Inspections, tours and personal visits by the technical functionaries.
(iii) Attendance in meetings of panchayati raj institutios
(iv) Administrative control over the technical functionaries .
(v) Periodical staff meetings.

4. Financial Control
Financial control and supervision is one of the most effective
instruments of control over the panchayati raj institutions. Financial control and
supervision relate to regulation of the finances, budgets/ accounts and audit of
the panchayati raj institutions. However, the study of the various financial
provisions under the Acts shows that those provisions make its entire structure
susceptible to state control to a great extent in two ways. In the first place,
in all the states, detailed accounting procedures have been laid down by the
state government for panchayati raj bodies . These pertain to (a) intemisation
of income and expenditure; (b) custody of and control over funds; (c)
periodical scrutiny of accounts by the appropriate authorities; (d) audit of
accouts at regular intervals; (e) sanctioning of the budget so on and so forth.

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Audit is the instrument through which control and supervision is exercised,
deficiencies located, and loop holes plugged to ensure soundness all round. There
is provision for the periodical audit of accounts of the panchayati raj bodies
by the auditors appointed by the state governments. Generally, the panchayat
accounts are audited by the inspecting officer of panchyats at the Samiti level
on behalf of the development officer.
In this light respondents were asked about the satisfaction with the
present system of state control and supervision over PRIs. Summing up the
discussion, it may be concluded that mans critics are not satisfied with the
present system of state control and supervision over panchayati raj institutions.
In addition the critics state that block, district and state jointly cotrol and
supervision over these istitutions. and believe that slow developnt of rural
areas is due to excessive state control.

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 Important Questions
Long Answer Questions
1. What is meant by Democratic Decentralization? Discuss its merits?
2. Explain the meaning of Local Government and bring out the features of Rural Local
Governance in India?
3. What are the stages of evolution rural Local government?
4. Examine the recommendation of Balwanth Rai Mehta?
5. Critically Examine the Ashok Mehta committee Recommendations on Rural and
Governance?
6. Briefly explain the provisions of 73rd CAA 1992?
7. What is the composition functions of Gram Panchayat?
8. What are the patterns, powers and functions of Rural Governance in the state of
Telangana?
9. Describe the Organisation and functions of Zilla Parishad.
10. What are the important features of Telangana State Panchayati Raj Act 2018?
11. What are the various methods of state control over the Rural Local Governance?
12. What are the strategies, programmes and issues in Rural Development?
13. What is structure and function of cooperative societies?
14. What are the basic services and welfare measures in rural areas?
15. What is the role of State finance Commission in augmenting finance of RLG? (or)
“Panchayathi Raj Institutions are financially not autonomous” comment.

Short Answer Questions

1. CDP
2. Rippon Resolution
3. Gram Sabha
4. Mandal Parishad
5. M. P. D. O
6. Zilla Parishad – Chairman
7. CEO – ZP
8. Standing Committee in ZP
9. Sarpanch
10. User Association
11. Paralel Bodies
12. Self Help Groups
13. Panchayat society
14. Micro Planning
15. social audit

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 Code No. 9354
FACULTY OF SOCIAL SCIENCES
B.A. V-Semester (CBCS) Examination, November / December 2018
Subject : Public Administration

(DSE) Paper - VI (A) : Rural Local Governance

Time :3 Hours Max. Marks: 80
PART - A (5 x 4 = 20 Marks)
(Short Answer Type)

Note: Answer any FIVE of the following questions.

1. Importance of Local Governance.
2. Ashok Mehata Committee
3. Constitutional status of Local Governments
4. Grama Sabha
5. Sarpanch
6. District Development Officer
7. Importance of Rural Development
8. Mahatma Gandhi Rural Employment Programme

PART - B (4 x 15 = 60 Marks)
(Essay Answer Type)

Note: Answer ALL from the following questions.

9. (a) Explain the importance of the concept of Democratic Decentralization.
OR

(b) Write a critical note on the Evolution of Rural Governance Institution.

10. (a) Discuss the importance of Third Generation Panchayat.

OR
(b) Examine the significance of 73rd Constitutional Amendment.

11. (a) Discuss the organization and functions of Zilla Parishad.

OR
(b) "Panchayathi Raj Institution are financially not Autonomous" Comment.

12. (a) Define cooperatives. Discuss their junction.

OR
(b) Explain the various methods through which Rural Governments are
controlled.

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