PREFACE

In a bid to standardize higher education in the country, the University Grants

Commission (UGC) has introduced Choice Based Credit System (CBCS) based on five
types of courses viz. core, generic, discipline specific, elective, ability and skill
enhancement for graduate students of all programmes at Honours level. This brings in the
semester pattern which finds efficacy in sync with credit system, credit transfer,
comprehensive continuous assessments and a graded pattern of evaluation. The objective
is to offer learners ample flexibility to choose from a wide gamut of courses, as also to
provide them lateral mobility between various educational institutions in the country where
they can carry their acquired credits. I am happy to note that the university has been
recently accredited by National Assessment and Accreditation Council of India (NAAC)
with grade “A”.
UGC (Open and Distance Learning Programmes and Online Programmes) Regulations,
2020 have mandated compliance with CBCS for U.G. programmes for all the HEIs in this
mode. Welcoming this paradigm shift in higher education, Netaji Subhas Open University
(NSOU) has resolved to adopt CBCS from the academic session 2021-22 at the Under
Graduate Degree Programme level. The present syllabus, framed in the spirit of syllabi
recommended by UGC, lays due stress on all aspects envisaged in the curricular
framework of the apex body on higher education. It will be imparted to learners over the
six semesters of the Programme.
Self Learning Material (SLMs) are the mainstay of Student Support Services (SSS)
of an Open University. From a logistic point of view, NSOU has embarked upon CBCS
presently with SLMs in English / Bengali. Eventually, the English version SLMs will be
translated into Bengali too, for the benefit of learners. As always, all of our teaching
faculties contributed in this process. In addition to this we have also requisioned the
services of best academics in each domain in preparation of the new SLMs. I am sure they
will be of commendable academic support. We look forward to proactive feedback from
all stakeholders who will participate in the teaching-learning based on these study materials.
It has been a very challenging task well executed, and I congratulate all concerned in the
preparation of these SLMs.
I wish the venture a grand success.
Professor (Dr.) Ranjan Chakrabarti
Vice-Chancellor

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 Netaji Subhas Open University
Under Graduate Degree Programme
Choice Based Credit System (CBCS)
Subject : Honours in Political Science (HPS)
Course Title : Public Policy and Administration in India
Code : CC-PS-09

First Print : December, 2022

Printed in accordance with the regulations of the Distance Education

Bureau of the University Grants Commission.

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 Netaji Subhas Open University
Under Graduate Degree Programme
Choice Based Credit System (CBCS)
Subject : Honours in Political Science (HPS)
Course Title : Public Policy and Administration in India
Code : CC-PS-09

Board of Studies
Members
Professor Sobhanlal Dattagupta Professor Krityapriya Ghosh
Retd. Surendranath Chair Professor Retd. Associate Prefessor of Political
University of Calcutta Science
Presidency College (WBES)

Professor Amitava Ray Dr. BarnanaGuha Thakurta (Banerjee)

Retd. Associate Professor Head and Associate Prefessor of
Gurudas College Political Science
Netaji Subhas Open University

Dr. Manoj Kumar Haldar Prof. Sital Prasad Nag

Assistant Professorof Political Science Associate Prefessor of Political Science
Netaji Subhas Open University Netaji Subhas Open University

Dr. Narayan Chandra Datta Dr. Utathya Banerjee

Associate Professorof Political Science Associate Prefessor of Political Science
Netaji Subhas Open University Netaji Subhas Open University

: Course Writers :
Block - 1 Block - 2
Dr. Amrita Banerjee Professor Santosh Kumar Bhagat
Associate Professor of Political Science Assistant Professor of Political Science
B.C College, Asansol Banwarilal Bhalotia College, Asansol
Block - 3 Block - 4
Professor Sujit Kumar Panja Professor Kasturi Sinha Roy
Associate Professor of Political Science Assistant Professor of Social Work
Asansol Girls' College, Asansol School of Professional Studies
Netaji Subhas Open University

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 : Course Editor :
Dr. Arindam Roy
Associate Professor of Political Science
University of Burdwan

: Editorial Assistance, Formatting Language

Editing & Conversation :
Dr. Narayan Chandra Datta
Associate Professor of Political Science
Netaji Subhas Open University

Notification
All rights reserved. No part of this Self-Learning Material (SLM) may be reproduced in
any form without permission in writing from Netaji Subhas Open University.

Dr. Ashit Baran Aich

Registrar (Acting)

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 NETAJI SUBHAS Honours in
OPEN UNIVERSITY Political Science
(HPS)

Code : CC-PS-09

Module – 1
Unit 1 q Definition, Characteristics and
Models of Public Policy 9-18
Unit 2 q Public Policy Process in India 19-25
Unit 3 q Meaning, Significance, Approaches and
Types of Decentralization 26-33
Unit 4 q Local Self Government in India: Rural 34-42
Unit 5 q Local Self Government in India: Urban 43-49

Module – 2
Unit 6 q Concept and Significance of Budget 53-61
Unit 7 q Budget Cycle in India 62-73
Unit 8 q Various Approaches of Budgeting 74-84
Unit 9 q Types of Budgeting 85-94
Unit 10 q Role of Finance Ministry in the
Framing of a Budget 95-100

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Module – 3
Unit 11 q Public Service Delivery 103-108
Unit 12 q Redressal of Public Grievances (RTI) 109-116
Unit 13 q Lokpal Bill 117-122
Unit 14 q Citizens' Charters 123-127
Unit 15 q E-Governance 128-133

Module – 4
Unit 16 q Social Welfare: Concepts and Approaches 137-146
Unit 17 q Social Welfare Polices: Right to Education 147-155
Unit 18 q National Health Mission 156-170
Unit 19 q Right to Food Security 171-178
Unit 20 q MGNREGA 179-189

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Unit 1 o Definition, Characteristics and Models of
Public Policy

Structure
1.1 Objective
1.2 Introduction
1.3 Features of Public Policy Making
1.4 Models of Public Policy
1.5 Conclusion
1.6 Summing up
1.7 Probable Questions
1.8 Further Reading

1.1 Objective
After studying this unit, the learners will be able to:
l understand the meaning of public policy;
l throw light on the features of public policy;
l highlight the Policy making models to policy analysis

1.2 Introduction
Public Policy in the broad terms refers to the policy that is formulated and implemented
for the benefit of the public. The dream for improved life especially its achievement rests
on our own efforts, to formulate public policies. As a subject or field of inquiry has a long
past, though the current public policy analysis has a specific American origin. The root of
public policy can be traced back to 1940s which had made a significant impact on the
government and academic organizations over these years. From 1950s onward public
policy has assumed a disciplinary status in social sciences in terms of academic rigion and
methodological sophistocation.
To cope with the varied troubles and demands of the people the government has to
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create several policies which are called public policies. There are several studies in relation
to the public policy and several scholars have attempted to describe public policy from
serveral angles. Before explaining the meaning of public policy, let us first go through some
of its definitions. Robert Eyestone considers public policy as “the relationship of government
unit to its environment. Thomas R. Dye says that “public policy is whatever government
chooses to do or not to do” Richard Rose says that “public policy is not a decision; it is
a course or pattern of activity. In Carl J. Friedrich’s opinion public policy is a proposed
course of action of a person, group, or government within a given environment providing
opportunities and obstacles which the policy was proposed to utilize and overcome in an
effort to reach a goal to realize an objective or purpose.
From these definitions, it is clear that public policies are governmental decisions, and
are actually the result of activities which the government undertakes in pursuance of certain
goals and objectives. It can also be said that public policy formulation and implementation
involves a well-planned pattern or course of activity. It call for smooth interactions among
the significant govermental agencies like political executives legislature judiciary and
bureaucracy. Hence in sum public policy encapsulates the following points: Public Policies
are goal oriented. Public policies are formulated and implemented in order to attain the
objectives which the government has in view for the ultimate benefit of the masses in
general. These policies clearly spell out the programmes of government. Public policy is the
outcome of the government’s communal actions. It means that it is a pattern or course of
activity or the governmental officials and actors in a communal sense than being termed as
their discrete and segregated decisions. Public policy is what the government actually
decides or chooses to do. It is the relationship of the government units to the specific field
of political environment in a given administrative system. It can take a diversity of shapes
like law, ordinances, court decisions, executive orders, decisions etc. Public policy is
positive in the sense that it depicts the concern of the government and involves its action
to a scrupulous problem on which the policy is made. It has the sanction of law and
authority behind it. Negatively, it involves decisions through the governmental officials
concerning not taking any action on a scrupulous issue.

1.3 Features of Public Policy Making

This sub section attempts to cast some light on the features of public policy.
l Public Policy Making is a Very Intricate Process: Policy making involves several
components, which are interconnected through communication and feedback loops
and which interacts in dissimilar methods. Some parts of the process are explicit

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and directly observable, but several others proceed through hidden channels that
the officials themselves are often only partly aware of. These hidden procedures are
very complicately, and often impossible to observe. Therefore, guidelines are often
shaped through a series of single decisions that result in a „policy without any one
of the decision makers being aware of that process.
l It is a Dynamic Process: 4s a process policy making is a continuing activity taking
place within a structure. For sustenance, it requires a continuing input of possessions
and motivation. It is a dynamic process, which changes with time, the sequences
of its sub-processes and stages vary internally and with respect to each other.
l Policy Making Comprises Several Components: Public policy making is essentially
a complex process involving serveral substructures. The identity of these substructures
and the degree of their involvement in policy making, vary because of dissimilar
issues, circumstances and societal values.
l Policy Structure creates Dissimilar Contributions: This feature suggests that every
substructure creates a dissimilar, and sometimes unique, contribution to public policy.
What sort of contribution substructures create, depends in part on their formal and
informal features which vary from society to society?
l Decision-Making: Policy making is a species of decision-making because it lets us
use decision-making models for dealing with policy making.
l Policy provides Major Guidelines: Public policy, in most cases, lays down general
directives, rather than detailed instructions. To be followed. After main lines of
action have been decided on, detailed sub-policies that translate the general theory
into more concrete conditions are usually needed to execute it.
l Results orientednes is another imoirtant hallmark of public policy. Policies are
designed to transform dicisions actions.
l Future Orientation: Policy making is directed at the future. This is one of its most
significant features since it introduces the ever-present elements of uncertainty and
doubtful prediction that establish the basic tone of almost all policy making.
l Actual policy making tends to formulate policies in vague and elastic conditions;
because the future is so uncertain. It permits policy makers to adjust their policy
according to emerging facts and enables them to guard against unforeseen
circumstances.
l Mainly Formulated through Governmental Organs: Public policy is also directed, in
part, at private persons and non-governmental structures. As when it calls for a law

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prohibiting a certain type of behaviour or appeals to citizens to engage in private

saving. But public policy, in most cases, is primarily directed at governmental organs,
and only intermediately and secondarily at other factors.
l Aims at Achieving what is in the Public Interest: Though hard it might be to discover
out what the ‘„public interest” may correctly refer to, the term never the less
conveys the thought of a “general” orientation and seems so to be significant and
important. Furthermore, there is good evidence that the image of “public interest”
powers the public policy making process and is so at least, as conceived through
the several public policy making units, a “real” phenomenon, and a significant
operational tool for the study of policy making.
l Involvement of Several Bodies/Agencies: Industrial workers, voters, intellectuals,
legislators, bureaucrats, political parties, political executives, judiciary etc. are the
several organs that participate in public policy making and can power the policy
process to a great extent.

1.4 Models of Public Policy

The idea of models and frames that structure and provide a discourse of analysis came
into use in the 1970s and 1980s. They were thought of as modes of organising problems,
giving them a form and coherence. A model involves the notion of constructing a boundary
around reality, which is shared or held in common by a group of scholars or a theorist.
When we study public, policy we must be aware of how different models of analysis define
and discuss problems, and how these clashes and shift around.
There are various models to help understand public policy, the major ones are:
The Systems Theory of Policy-Making:
This theory draws heavily on David Easton’s The Political System.

The concept of system implies an identifiable set of institutions and activities in society
that function to transform demands into authoritative decisions requiring the support of the
whole society. This concept also implies that elements of the system are interrelated, that

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the system can respond to forces in its environment, and that it will do so in order to
preserve itself. Inputs are received into the political system in the form of both demands
and support. Demands occur when individuals or groups in response to real or perceived
environmental conditions, act to affect public policy. Support is rendered when individuals
or groups accept the outcome of the elections. obey the laws, pay their taxes and generally
conform to policy decisions. Any system absorbs a variety of demands into output public
policy; it must conceive settlements and enforce them upon the parties concerned. It is
recognised that output public policies may have a modified effect in the environment and
the demands arising from it, and may also have an effect of the political system. The system
preserves itself by:
1. producing reasonable satisfying outputs,
2. Relying upon deeply rooted attachments to the system itself and
3. Using or threatening to use force.
The Incremental Theory of Policy Making:
The word ‘increment’ means ‘a small increase in quantity’, ‘to add a small to’, often
at regular intervals. The fundamental concept of incrementalism is contained in `organisational
drift’, ‘satisficing’, `bounded rationality’, and `limited cognition’. The incremental theory
contends that only limited policy alternatives are provided to policy makers and each of
these alternatives represent only a very small change in the status quo. The incremental
theory puts the bureaucracy in a conservative mould, ever tied to the past and slow to
change. ‘Sunk costs’ also rule out radically new course of action.
Incremental theory is conservative. It does not question the validity of past policies
which were formulated in a piecemeal way under parochial considerations. It is historical
and a theoretical also: the increment list theory assumes - wrongly - that the present limits
of knowledge and prediction would ever continue. But it is politically expedient. As it is
difficult to have agreed upon societal policies, there is easy agreement on increment list
theory: existing policies thus get continued.
Incrementalism:
Incrementalism has been increasingly used in public administration since the sixties when
Charles L. Lindblom popularised it in 1959 in his paper The Science of Muddling Through’,
published in Public Administration Review (Vol. 19, spring I9597). What incrementalism
means is the gradual and modest increase in specific governmental allocations, that is -
budget. Since the seventies, a reverse trend in public administration in most-Countries is
in evidence which goes by the name of ‘cutback management’. This has induced some like
George H. Frederickson to coin the antonym ‘decrementaIism’. Decrementalism signifies

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gradually decreasing financial allocations.

According to Lindblom’s theory, public administration is not governed by principles nor
is administration separated from politics in a unified administrative system. Nor does
Lindblom think that an administrator is the optimal rationaliser of efficiency and effectiveness.
The truth is that public administration is the art of the possible _in the modern _pluralistic
world of competitive interest groups. An administrator muddles, not manages. Negotiation
and strategy are his operational-tools as he aims to devise an ‘agreeable’ compromise-.
Ibis confused manner of incremental decision-making produces social harmony, unity, stability
and equilibrium in a fluid environment of ever-changing interest-groups.
The incremental model has its advantages, but its limitations are no less obvious. First
and foremost, this approach is inherently conservative, even status quorist. It makes it very
difficult for the government to direct the society it wants, for its penetrative strategy is
diffused, multi-dimensional and mutually contradictory. Incrementalism tends to be reinforcing:
every interest group builds up support in the corresponding governmental department,
which lobbies for the former’s continuance. This leads to involvement of more and more
agencies, rendering the issue of co-ordination more problematic. Secondly, as incrementalism
believes in the adoption of small steps in changing a policy, it may end up in unintended
and unforeseen consequences. For Example, the American scholars’ have cited the case
of the American Bay of Pigs invasion of Cuba in 1961 as the culmination of incremental
approach. This approach is notoriously weak in organisational memory the original motivating
considerations get overlooked. Thirdly, Since the challenge is to re-direct and re-construct
the entire society, the incremental model of decision-making is not to the preferred and
adopted.
The rationalist theory of policy making:
In a sense, the rationalist theory is the opposite of the incrementalist theory. The
rationalist theory seeks to find out all the value preferences which exist in a society, assign
each value a weightage, find out all the alternatives as well as all the consequences of each
alternative and in the end make the final selection in terms of’ the costs and benefits of
social values. The rationalist model is used in Operations Research, Programme Evaluation
and Review Technique (PERT). Critical Path Method (CPM) and Zero-based budget.
A rational policy is one which maximises social gain. This is another way of saying that
no policy should be adopted if its costs exceed its benefits. Secondly, the policy-maker
should choose that policy that produces the greatest benefits. A public policy is rational
when the difference in its benefits and disadvantages is greater than that in any other policy.
A rational policy would thus involve:

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1. Knowing all value preferences of society.

2. Knowing all the policy alternatives available.
3. Knowing all the consequences of each policy alternative
4. Evaluating the ratio of benefits to costs for each policy alternative
5. Selecting the most efficient policy alternative, that is, the one that brings the greatest
benefits and the least disadvantages.
Rational policy making is possible only by ‘Economic Man’. In contrast, public
administration has ‘Administrative Man’ who ‘satisfices’ and not ‘maximises. Moreover, in
the world in which we live what prevails is ‘bounded rationality’ even though the information
revolution made possible by computers makes available more and more information.
Other barriers also confront rational policy making:
1. When policy-makers make policies, their basic instinct is self-preservation and
organisational survival.
2. Search behaviour for alternatives stands foreclosed by policies and decisions. This
is ‘sunk cost’.
3. Information collection itself faces limitations. Not only is there the problem of cost,
the time involved in collecting information sets a limit as well.
4. The segmental nature of policy-making in government organisations stands in the
way of co-ordination of decision-making. As a result, contradictory policies are
seen to be in operation in government.
5. The techniques of cost-benefit analysis cannot apply where diverse political, social,
economic and cultural values are at stake.
6. Even otherwise, it is very difficult to assess accurately the benefits and costs of each
policy alternative. Simply because the predictive ability of the social and behavioural
sciences as well as of the physical and biological sciences is not all that advanced
The Game Theory of Policy-Making:
The game theory is an abstract and deductive theory or model of policy-making. It is
a form of rationalism applied in competitive situations where the outcome depends on what
two or more participants do. A conflict situation is called a game. The game theory is the
study of rational decisions in situations in which two or more participants have choices to
make and the outcome depends on the choices each of them makes. The theory is put into
application in policy-making situations where there is no independently best choice which
one can make and where, moreover, the best outcome depends on what others do. In the
conflict situation all participants try to maximise their gain and minimise their losses.

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The game theory is applicable to competitive problems, that is, conflict sitnations. It can
be applied to decisions about war and peace, international diplomacy, bargaining or coalition
in parliament or the United Nations. The idea underlying the game is that policy-makers are
involved in choices which are independent. Each player in the conflict situation must adjust
his conduct to reflect not only his own desires and expectations but also his assessment
about what other will do.
The games considered are games of strategy, not games of chance. The game strategy
of a participant includes all possible options for contingencies arising from a strategy of
other participants. Strategies are evaluated in terms of payoffs. Numerical values are
assigned to the outcomes of particular moves. The motivation underlying the game theory
was to provide information on strategies that should be adopted. Employment of an optimal
strategy is called ‘rational’ behaviour in game theory.

1.5 Conclusion
It is evident that the area of public policy has an important role in the public domain.
Public policy is not only worried about the explanation and extension of the reasons and
concerns of the government actions. It also has the development of scientific information
about the services determining public policy. The examination of public policy aids us in
determining the social ills of the matter under the examination. Policies do more than effect
alteration in the situations of the society, they bring the people together to follow the
uniformity in the state. These public policies are the main devices for any democratic nation
and they improve the social and economic procedures from the present of the future.
Hence, the examination of the public policy has become a significant element of the academic
society as well.
Some well accepted models of policy making have been discussed here. Policy science
has always resorted to metaphors, to the device of proceeding from the recognized to the
unknown. There has been criticism of models in general and also of each specific model.
Those who criticise the use of models need to understand that they too necessity use them.
The choice, in obvious conditions, is not flanked by models and no models, but flanked
by a critical consciousness of their use and an uncritical acceptance. We must remember
that the success of policy formulation, execution, and monitoring ultimately depends on the
success of policy analysis. In India, this trend appeared with the launching of our Five-Year
Plans. As the years passed through, one Five Year Plan was followed through another and
disillusionment started setting in. Goals of socio-economic development could not be achieved.
Those who were supposed to benefit from the development effort began to lose. Attention

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shifted to the management and administration in order to discover out why the policies were
failing to achieve their objectives.

1.6 Summing up
l This unit dealt with the various approvals to models of public policy.
l Public policy can be characterized as a dynamic complex and interactive system
through which public problems are identified and resolved through the creation of
new policy.

1.7 Probable Questions

Essay Type Questions
1. Discuss the meaning, nature and definition of the Public Policy.
2. Discuss the importance of public policy.
3. Discuss the Game theory of policy making.
4. Critically examine the policy-making models and suggest best suitable model/models
for a specific policy.
Short Questions
1. Describe several models of policy making.
2. What is Lindblom’s theory?
3. Explain the word “Increment” in the Incremental theory of policy making.
Objective Questions
1. Whose name is associated with the systems theory?
2. Who popularized the term, “ incrementalism”?
3. Name one scholar who define public policy.
4. What is the full form of “CPM” in rationalist theory of policy making?
5. Name any one theory of policy making.

1.8 Further Reading

1. Joyee M. Mitchell & William C. Mitchell, Political Analysis & Public Policy: An
Introduction to Political Science, Thomson Press limited, New Delhi, 1972.

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2. R.K. Sapru, Public Policy, Art and Craft of policy Analysis, PHI learning private
limited, New Delhi, 2011.
3. Brian W. Hogwood & Lewis A. Gunn, Policy Analysis for the Real World, Oxford
University, Press, 1986.
4. Arvind Sivaramakrishnan, Public Policy and Citizenship, Battling Managerialism
in India, Sage publications, New Delhi, 2012.
5. Louis W. Koening, An Introduction to Public Policy, Prentice-Hall, New Jersy,
1986.
6. Hoghiar Singh, Pradeep Sachdeva, Public Administration, Theory and Practice,
Pearson, Delhi, 2012.
7. Charles L. Cochran & Eloise F. Malone, Public Policy Perspectives and Choices,
Viva Books Private Limited, New Delhi, 2007.

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Unit 2 o Public Policy Process in India

Structure
2.1 Objective
2.2 Introduction
2.3 Public Policy Process
2.4 The Stages of a Policy Cycle
2.5 Conclusion
2.6 Summing up
2.7 Probable Questions
2.8 Further Reading

2.1 Objective
After studying this unit, the learners will be able to
l understand what the processes of Public Policy are.
l understand the making of Public Policy that includes some steps –getting of agenda,
policy formulation, policy adoptions, and policy implementation.
l analyse the five stages of public policy process
l grasp the policy-making process in India.

2.2 Introduction
Policy refers to a broad statement that spells out the future goals and aspirations and
provides guidelines for carrying out those goals. Hill (1993: p.47) defines ‘policy’ as ‘the
product of political influence, determining and setting limits to what the state does. To be
more precise, when a government takes a decision or chooses a course of action in
order to solve a social problem and adopts a specific strategy for its planning and
implementation, it is known as public policy (Anderson 1975). According to Moore (1998),
a good policy formulation process is one, “which is committed to producing a high-
quality decision – not any particular decision” Such a decision should be made with a
high degree of legitimacy, power and accuracy. Hence, in order to produce such a high-
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quality decision, the policy formulation process should hold onto certain characteristic
features while formulating the policies
After the independence, India opted for planned economic development. It was believed
that economic development wanted usher in social and political development, leading to the
culmination of human development. In India, this role was primarily taken up by Planning
Commission to formulate policies and develop perspectives that could define the direction
which the country would follow. For all policy directions, the Five-Year Plans (FYP)
became the major source. The first major goal of public policy in India was in the area of
socio-economic development. Major policy formulations were done in the areas of industrial
and agricultural development. In addition to socio-economic challenges, India also faced
internal and external security threats. Regionalism, for example, has given both to the
fissiparous tendencies like secessionism. Hence, the formulation of defence policies got
without profit to maintain national integration and to create greater national cohesiveness.
FYPs focused primarily on agriculture, and subsequently from the second one
industrialization of the country out huge impetus. In subsequent plans, focus areas included
– industrial growth, agricultural productivity, defence expenditure, exports, public development
expenditures, poverty, rural development, infrastructure, market reforms and social
infrastructure among other things.

2.3 Public Policy Process

The public policy process is a dynamic and interactive process. It is also a continuous
process, not a one-time event. In India passing a bill to make it into a law is a long and
complex process. Firstly, the law has to go through two houses, the Lok Sabha and the
Rajya Sabha. First, the Standing Committee will review the bill. Then the concerned
minister will introduce it in the house. If it passes the vote, then it is sent to the other house.
Once both houses pass the bill it is again sent for review to the Ministry for Law. Finally,
when the President asserts, the bill becomes a Law.
A good policy-making process should produce policies which can be executed swiftly
and successfully. This requires the close involvement of the persons who actually have to
implement a policy on the ground, [Darman, 1998] and implies a degree of ‘decentralisation’
of policymaking. At the same time, a degree of centralised control is necessary, so that the
priorities and interests of implementers do not supplant the public interest. Whether this
central control should be confined to “process control” (i.e. control over how the decision
is made) or should extend to “quality control” (control over the substance of the decision)
is the subject of debate [Porter, 1980], but the choice is partly a factor of the kind of

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organisation and the kind of policy being made. On the whole, while policy-making must
remain in touch with reality and be conscious of implementation issues, it should not be a
prisoner of the current short-term priorities, time constraints and conveniences of implementers.
A good policy making structure should, therefore, provide for appropriate separation
between the policy and implementation functions
Policy cycle is the most optimal model through which policies are made, put into action
and evaluated. It is described usually in six stages, which are: agenda setting, policy
formulation, adoption, implementation, evaluation and policy maintenance. It is understood
as a cycle, as the outcome of the implementation of the policy will help in determining any
alteration in the existing policy or the creation of a new one.

2.4 The Stages of a Policy Cycle

A. Agenda Setting: In this stage, the issues that are in need of government action are
brought to the attention of the policy makers, and various aspects of these issues are
assessed; the most concerning areas are prioritised. This assessment is helpful in
determining the objectives of the policy. The definition of problem setting is always
contestable and dependent on the ruling government’s ideologies, their perspectives on
benefits and prejudice. One of the main problems with policy making in India is the
fragmentation of the structure. The Planning Commission was the apex policy making
institution in the Government of India, subsequently replaced by the NITI Aayog.
These plans were then approved by the legislature. However, with the passing of
years, more power has been shifted the hands of the executive. Further, India has
adopted the parliamentary form of democracy, as well as a quasi-federal structure of
governance, which means that there are various levels of hierarchy to be considered
before setting objectives. Such fragmentation fails to recognize that actions taken in
one sector have serious implications on another and may work at cross purposes with
the policies of the other sector. Besides, it becomes very difficult, even for closely
related sectors, to align their policies in accordance with a common overall agenda.
B. Policy Formulation: This is the stage that gives structure to the policy. In this stage
of policy making goals are set, costs are determined, policy instruments are chosen,
possible effects are evaluated, and stakeholders are established. Multiple solutions are
put forward, with an objective of meeting the policy goal within established
limitations. However, public policies there an occasions when prepared without sufficient
input from sources external to the government, and without adequate examination of
the issues involved. For examples some of the best experts in many lines of work lie

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outside the government, yet the policy processes and structures of government have
efficient methods for obtaining inputs from external sources, which can prove to be
detrimental to the groups affected by the policy as they too are often not involved
enough; at times, different solutions with different impacts are not evaluated to the best
extent. Before converting policy proposals into policies, a number of analyses like the
cost-benefit analysis, economic forecasting, operations research and systems analysis,
and budgeting analysis have been done using up-to-date data. Opinions of those
affected by the policy should also be taken into account as the success of the policy
is largely contingent upon their feedback.
C. Adoption or Legitimation: This is the stage of decision making where the best
solution is chosen from amongst the different solutions that vary based on the policy
instruments used. This approval of the policy may come from various sources- legislative,
executive, in tandem with interest groups or from referendums. Policies require approval
from various levels of the government before being adopted. India’s federal structure
makes demarcations for certain legislative powers and duties, that is, the power to
make laws on certain subjects is divided across Centre, the States or both. However,
some of the autonomy provided to States is subject to financial requirements, which
are often decided by the Centre. Friction or differences in understanding between the
States and the Centre can also prove to be detrimental to the policy makers, where
certain States refuse to follow the mandate of the Centre.
D. Implementation: This is with regard to how the policy will be put into action. This
often means creating working networks where actors, resources and knowledge are
connected. This may involve clear communication with the required agents, such as
executive public bodies like the Ministry of Human Resource Development, or creating
say, an organisation, to implement policy decisions. These agents will have to account
for the usage of resources, whether monetary, human, legal or the likes.
Monitoring implementation is another important part of this stage. Proper implementation
is critical to the success of any policy’s objectives. This means establishing a clear
chain of command and putting effort into its coordination and control. This can come
at a great expense to the government. The successful implementation of social sector
schemes requires a high degree of political commitment and administrative coordination.
Aadhar linkage and Kerala’s Kudumbashree scheme are cited as successes. Aadhar,
India’s biometric ID system, is used to avail multiple utilities, such as food rations, to
those who are registered with the Aadhar Ecosystem. Kudumbashree through micro-
credit and empowerment schemes like vocational training allows poor women at the
grassroot levels to organise themselves.

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In India’s case, while many policies of social inclusion have been put into place, the
implementation has been suspecting. Illiteracy, lack of awareness and lack of
empowerment means the weaker sections of society, which any given policy is supposed
to target, are often unable to access the benefits. It is also the case that the services
offered by the government are usually of poor quality. Autonomy in implementation at
various levels can help the cause. Execution of the policy is often hindered by confusion
in the government as bureaucratic ineffectiveness, ineptitude and corruption confounds
the policy implementation process.
Let us look into the example of the Right To Education Act, which made free and
compulsory primary education a basic right for children of the age group of 6 to 14
years. It sets aside a 25% quota for children from economically and socially weaker
sections in unaided, non-minority schools. It has been contended that there has been
more focus on the quota than on the quality of education, with issues of teacher
absenteeism, lack of teaching resources, lack of basic infrastructure, etc. This has
resulted into high enrolment in schools, however, it has also responsible for high
dropout rates. One could say that the policy is input oriented as opposed to outcome
oriented.
Swachh Bharat Abhiyan also faced problems to adjust with mindset of people, lack
of proper waste management practices, often a lack of water, lack of sustainability of
the provided infrastructure, as well as a lack of dedicated on-ground enforcers.
E. Evaluation: Government assesses the effect of the implemented policy at this stage.
This is to determine how successful the policy was in its impact, and whether the policy
has been implemented correctly or not. This can be difficult to evaluate as the policies
may have several objectives to meet. There may also be multiple ways to measure the
impact which may lead to different evaluations on the effectiveness, depending on the
standards of measurement used. Under the current government, NITI Aayog actively
monitors and evaluates the implementation of government programmes and initiatives.
F. Policy Maintenance, Succession or Termination: This stage determines whether
the policy is to be maintained by improving or further developing it. Often, if problems
are identified with the current policies, they are either modified or terminated. Using
the example of the Right to Education Act, the Centre is currently considering the
extension of the Act to cover students till class 12, where currently it covers students
till class 8.
Policy cycle is not only a model of policy making but is also a method of analysis of
the policy process. This model does help us in looking at policy in orderly or organised

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manner but as expressed before, this can be overly simplistic for a complex and
dynamic world.

2.5 Conclusion
The public policy making process plays a central role in the lives of every person on
the planet. The main purpose of the government is to have lawmakers set policy and then
have government workers carry out those policies. They impact the life of every citizen,
from how and when we vote to where we can park and what does and does not constitute
a crime. In this Unit we have discussed the technique of policy formulation. There are
various techniques involved in reaching sound and rational policy decisions and in converting
policy proposals into policy. A variety of techniques and tools are used for improving and
enhancing the policy formulation process. In reality, the policy making process is not
typically so linear. However, these five steps provide a framework to better understand
public policy formation and help students identify the strengths and weaknesses of the
system.

2.6 Summing up
l It is described in six steps, which are agenda setting, policy formulation, adoption,
implementation, evaluation and policy maintanance.
l Public policy process is understood as cycle, as the outcome of the implementation
of the policy which will help determining any alteration in the existing policy or the creation
of a new one.

2.7 Probable Questions

Essay Type Questions
1) What are the factors that influence policy formulation?
2) What are the specific activities being implemented in policy formulation?
3) What is public policy? Explain the process of policy making in India.
Short Questions
1) What is public policy?

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2) What is the importance of public policy?

3) What are the seven stages in policy process
4) What are the main features of a public policy precess? \
Objective Questions
1) Who said, “a good policy formulation process is one which is commited to producing
a high-quality decision, not any particular decision”.
2) What is the name of organization which replaced Planning Commission in India?
3) Which state is related to the scheme “kudumbashree”?
4) What is the full form of RTE?
5) Mention any one stage of policy cycle.

2.8 Further Reading

1. Agarwal, O.P and Somanathan, T.V. 2005. Public Policy Making in India: Issues
and Remedies, available at http://floatingsun.net/udai/files/Agarwal-Somanathan.pdf
Anderson, James E.. 1975. Public Policy-Making, Praeger, New York.
2. Ackoff, Russell L., Re-creating the Corporation – A Design of Organisations for
the 21st Century, Oxford University Press, New York, 1999
3. Business Today magazine, New Delhi, May 25th 2003 (Also available at http://
www.tata.com/tata_sons/media/20030515.htm)
4. Chambers, Robert, Managing Rural Development, Scandinavian Institute of African
Studies, Uppsala, 1974
5. Commonwealth Secretariat, Current Good Practices and New Developments in
Public Service Management: A Profile of the Public Service of New Zealand, 1995a
6. Commonwealth Secretariat, Current Good Practices and New Developments in
Public Service Management: A Profile of the Public Service of Malaysia, 1995b
7. Darman, Richard, “Note on Policy Development No. 4”, cited in Moore,1998.
8. De Merode, L., and Thomas, C.S., “Implementing civil service pay and employment
reform in Africa”, in Lindauer, David L. and Nunberg, Barbara (eds.), Rehabilitating
Government, Avebury / Ashgate Publishing Co. Ltd.,1996

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Unit 3 o Meaning, Significance, Approaches and Types
of Decentralization

Structure
3.1 Objective
3.2 Introduction
3.3 Decentralization
3.4 Significance of Decentralization
3.5 Approaches to Decentralization
3.6 Types of Decentralization
3.7 Conclusion
3.8 Summing up
3.9 Probable Questions
3.10 Further Reading

3.1 Objective
After studying this unit, the learners will be able to
l understand the meaning of decentralization
l grasp the different approaches of decentralization
l understand the types of decentralization.

3.2 Introduction
In the context of power and governance decentralization signifies the devolution of
power and authority of governance of central and state governments to the sub-state level
organizations i.e., Panchayats and Municipal Corporation in India. Decentralization denotes
dispersal of authority among a number of individual or unit. The root of the English word
decentralization can be traced back to a Latin word, which means ‘away from the centre’.
How the organization should be structured, whether it should be centralized or
decentralized is the dilemma before the scholars and practitioners of public administration.
NSOU l CC-PS-9 27

The mainstream literature in public administration focuses more on decentralization for its
inherent advantages in devolving power and empowerment of masses. But there are political
factor and administrative systems which decide whether there should be centralization or
decentralization.

3.3 Decentralization
Definitions and meaning of decentralization denotes dispersal of authority among a
number of individual or unit; it implies the establishment of relatively autonomous field and
regional offices and delegations of decision-making powers and functions to them. The
inherent implication of decentralization is that conditions and circumstances and needs and
aspirations of people vary in different areas. Therefore, it requires decentralized administrative
system which could cater to the needs and aspirations of the people of a given area.
Scholars defined the term decentralization in different ways notable among them have been
discussed below. According to Allen, “decentralization refers to the systematic effort to
delegate to the lowest levels all authority except that which can only be exercised at central
points”. L.D. White defined the decentralization as the process of transfer of administrative
power from a higher to a lower level of organization. Koontz and Weinrich defined it as
the tendency to disperse decision making authority in an organized structure. It is fundamental
aspect of delegation; to the extent the authority is not delegated, it is centralized”. The
essence of Decentralization is delegation of power. Henry Fayol states that “everything that
goes to increase the role of subordinate is decentralization and everything that goes to
reduce it is centralization”. Decentralization is a twin process of reconcentration and
devolution. In deconcentrating, a superior officer lessens his workload by delegating some
of his functions to his subordinate so that administration functions efficiently and effectively.
Devolution, which also implies dispersal of authority, is a process wherein power is transferred
from one organ of government to another by means of legislations or constitution.
Decentralization is also different from delegation. Delegation means entrusting part of one’s
work to others. This principle favoured for skill producing and confidence creating attributes.
The subordinates who are asked to do the work delegated to them gain experience through
this method. Decentralization, on the other hand, is much broader concept. It is understood
as the “transfer of planning, decision making or administrative authority from the central
government to its field organizations, local administrations units, semi-autonomous and
parastatals organizations, local governments or NGO s. According to Mohit Bhattacharya,
contemporary thinking on decentralization can be looked at from three angles. First, it is
thought of as a means to spiritual enrichment and growth of individual, both as a worker

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and citizen. Decentralization offers opportunity to participate in decision making. For an

individual, it is an aid to the growth and development of personality. Secondly decentralization
has instrumental value as a means to improving organizational performance. Organizational
functions can be better performed through decentralized decision-making centre which
provides the access to local information and data and creates the conditions for local
popular support to administrative action and thus enhances its efficiency. Thirdly, the current
thinking, very importantly, reflects a paradigmatic shift in public Administration. The
bureaucratic model which has so long dominated the field seems inadequate to explain the
contemporary Politico-administrative situations, centralization of authority and bureaucratic
way of decision making are its essential features. However, latest thinking on decentralization
veers around power equalization and participation. Organization theory and political science,
which did not meet very often in the past, have now almost come together in explaining
the concept of decentralization concertedly.

3.4 Significance of Decentralization

Participation and control of governance by the people of the country is the essence of
democracy. Such participation is possible only when the powers of the state are decentralised
to the districts, block, and village levels where all the sections of the people can sit together
to discuss their problems, as well as monitor the implementation of the programmes.
Decentralization is a prime mechanism through which democracy becomes truly representative
and responsive. Mohit Bhattacharya argues that the latest thinking on decentralization veers
around power equalization and participation. Organization theory and political science,
which did not meet very often in the past, have now almost come together in explaining
the concept of decentralization. G. Shabbir Cheema and Dennis A. Rodnell have identified
the following advantages of decentralization:
a) It provides relief to the higher officials by reducing their workload. Thus, the top
executive can devote greater time and energy to important policy matters.
b) It provides opportunity for people’s participation in administration which strengthen
the democracy by making it realistic and comprehensive.
c) It increases the morale and motivations of employees particularly at lower and
middle levels by assigning them authority and responsibility for different work.
d) Decentralization could allow better political and administrative penetration of national
government policies into the remote areas.

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3.5 Approaches to Decentralization

In Political science and Public Administration decentralization has been discussed basically
from the view point of arrangement of Government. James W. Fasler has categarized the
different approaches to decentralization into four. These are: the doctrinal, the political, the
administrative and the dual role.
Doctrinal approach seeks to treat decentralization as an end in itself instead of treating
it as a means to achieve organizational efficiency and effectiveness. This approach lays
stress on the empowerment of local community – the city, town, or village. In India, the
Panchayati Raj supposedly embodies an ancient tradition of local autonomy. The essence
of this approach is people empowerment by granting them decision making and functional
authority. Thus, this approach instead of treating decentralization as a means to the
achievement of some end–values, considers it as an end in itself.
The political approach believes that decentralization occurs in a political setting. The
intention to create decentralized units and granting them necessary authority for their
autonomous functioning is politically decided. Decentralization in the shape of devolution to
local self-governing bodies is an attempt to set upon an autonomous government at the level
of locality. To create and maintain local government is, thus, a major political commitment.
In the absence of such commitment, it will merely remain in law than in actual practice.
Fasler pointed out “illusory decentralization. For example, in India although devolution of
power to local bodies have been granted formally but these bodies are not given funds,
functions and functionaries essential to operate as an autonomous institution and are strongly
controlled or influenced by respective state Governments.
The administrative approach is based on the principle of efficiency and effectiveness.
When field administrative units are set- up through a process of decentralization, the
measure is suitable for field level decision making and for redressal of grievances. In this
process, many administrative units might come up between the local administration and the
Central Headquarters. With more and more demand for specialized functions in view of
growing complexity of administration, a number of functional departments would appear at
the field level. The administration faces a problem or general area based administrative
demands and specific function claims of particular functional departments. Currently, district
administration in India is faced with these problems of area function duality. To resolve this
problem and to promote such operational principles conscious attempts are needed to re-
adjust from time-to-time conflicting claims of area and function in deconcentrated field
administration.

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The dual role Approach: The dual approach seeks to highlight the conflict in field
administration between tradition and change. The basic conflict, according to Fasler, is
between the traditional function of maintenance of law and order, and advancement of
socio - economic development. Most field administration system developed in an era when
the basic purpose of administration was to maintain status quo. The main function of
administration was to maintain law and order and collection of revenue. However, the
changed concept of welfare state requires rapid socio-economic development. It demands
cooperation and participation of people in administration and delegation of function by field
generalist to their subordinates and increased coordination among different administrative
units. Thus, there is urgent need to change the system into decentralized, participative and
innovative one. The resolution of conflict between two different orientations in the field
administration calls for adaptations of decentralization to changing circumstances. The four
approaches of W. Fasler address different issues and challenges in the realization of
decentralization. The doctrinal approach treats decentralization as an end in itself. The
political approach highlights political character of decentralization. The administrative approach
is based on efficiency, effectiveness and rationality. Finally, the reorientation of roles from
status quo to change orientation is the crux of dual role approach.

3.6 Types of Decentralization

Decentralization takes different form in different political setting and administrative
conditions. There are four types of decentralization. These are: political, administrative,
fiscal and functional decentralization.
Political Decentralization: Political decentralization refers to processes where the
power of political decision making and central functions are transferred from higher level
of government to lower one. The institutions which are assigned authority and functions for
local governance are governed by local people. Thus, the people residing in the periphery
of local institution have greater chances of participation in decision making. Greater
participation of people leads to increased legitimacy and more political stability of
governments. Also, Mass participation makes for better policy making and effective utilization
of resources. Seventy third and seventy fourth constitutional amendment are landmark
piece of legislation for setting up three tier rural and urban governance is extension of
political decentralization.
Administrative Decentralization: Administrative decentralization occurs when a
politically independent unit delegates some of its power and function to subordinate units
within its organisation. Administrative decentralization may be territorial or functional. Territorial

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decentralization means creation of area administrative units such as Divisions, District,

Zones, Circles etc., and vesting them with authority and responsibility in prescribed limits.
Fiscal Decentralization: Fiscal Decentralization means devolution of financial power
to lower level of government. Unless the power to tax and generate revenue is granted, the
political decentralization would merely remain a dream. The local government cannot fulfil
their responsibility in the absence of adequate financial power. For instance, there is provision
of state Finance Commission in the seventy third and seventy forth constitutional amendment
act to review the financial position of local bodies and to suggest measure to strengthen
their financial position. One of the reasons why Panchayati Raj could not succeed is
inadequate financial power. The Status Report (2000) on the Autonomy of Panchayati Raj
Institutions and Municipal Bodies reveals that none of the states in India, except Kerala,
have tried to place requisites for financial decentralization, while operationalizing their
respective acts.
Functional Decentralization: Functional decentralization refers to the transfer of
functions from Central or state government to local bodies in order to enable them to
discharge assigned functions and responsibilities. For instance, seventy third constitutional
amendment act in India assigns 29 functions to Panchayati Raj intuitions in India listed in
Eleventh Schedule of Constitution of India. However, these are suggestive not mandatory
as under the Indian constriction local government is state subject. Subjects and activities
assigned to local bodies under functional decentralization should be precise and clear or it
can create more confusion and chaos rather than empowerment of local community as it
happens in most of states in India. There is absence of clear-cut functional jurisdiction of
Panchayati Raj institutions and even that is left to the discretion of concerned state
government. The same applies to urban local bodies which are assigned eighteen functions
by 12th schedule of Constitution of India. It also means granting autonomy in respect of
professional and technical mattes to the appropriate technical or professional bodies by
Central authority. For instance, Medical Council of India is given powers to deal with
regulation and promotion of medical education and University Grant Commission (UGC.
regulates the matter in respect of higher education).

3.7 Conclusion
Decentralization is favoured for access, citizen participation and political responsiveness.
Therefore, decentralization depends on the situation and is not an absolute term. The four
approaches of W. Fasler address different issues and challenges in the realization of
decentralization. The doctrinal approach treats decentralization as an end in itself. The

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political approach highlights political character of decentralization. The administrative approach

is based on efficiency, effectiveness and rationality. Finally, the reorientation of roles from
status quo to change orientation is the crux of dual role approach.

3.8 Summing up
l Decentralization is a structural set up where in the power to make a decision is
delegated across all levels in an organization.
l It is responsible for planning, crafting suitable strategics and tactically nessesary
descision to boost the proficiency at each level and in turn, optimizing the overall productivity
of a organization from approaches to decentralization one discussed here.

3.9 Probable questions

Essay Type Questions
1. What is decentralization? Discuss its significance.
2. What is the meaning of decentralization with example?
1. What is decentralization? What is significance.
3. How many types of approaches are there in decentralization? Explain any three.
Short Questions
1. What is political decentralization?
2. What is the dual role approach to decentralization?
3. Explain the types of decentralization.
Objective Questions
1. Mention one advantage of decentralization.
2. Name one approach to decentralization.
3. Mention one type of decentralization.
4. Give an example of functional decentralization.
5. Who is the author of the book, “Indian Administration”?

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3.10 Further Reading

1. Avasthi and Maheshwari S.R., 1985, Public Administration (141h rev. ed.); Lakshmi
Narain Agarwal; Agra.
2. Bureaucracy and Development Administration, 1978, Centre for Policy Research,
New Delhi.
3. Jain L.C., Krishnamurthy B.V. and Tripathi P.M., 1985, Grass Without Roots: Rural
Development Under Government Auspicies, Sage Publications, New Delhi.
4. Maheshwari S.R., 1989, Indian Administration (4Ih rev, ed. and updated), Orient
Longman Limited, New Delhi.
5. Satyanarayana P. (ed.), 1990, Towards New ~Panchayati Raj, Uppal Publishing
House, New Delhi.
6. Indian Journal of Public Administration - Special Number on Decentralisation,
July-September 1978.

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Unit 4 o Local Self Government in India: Rural

Structure
4.1 Objective
4.2 Introduction
4.3 Panchayati Raj Institutions
4.4 Recommendations of the Balwant Rai Mehta Committee on the Structure of
the Panchaya and the Ashok Mehta Committee
4.5 The 73rd Amendment to the Constitution
4.6 Composition of Panchayats
4.7 Three-tier Structure of Panchayati Raj
4.8 Functions of Panchayati Raj Institutions
4.9 Conclusion
4.10 Summing up
4.11 Probable questions
4.12 Further Reading

4.1 Objective
After studying this unit, the learners will be able to
l appreciate that the local government has an important role to play in the rural areas.
l explain the functions of local bodies.
l evaluate the performance of Panchayati Raj institutions as instruments of democratic
decentralisation (grassroots democracy).

4.2 Introduction
The institution of rural local government of India is as old as civilization and it was called
Village Panchayat. They were performing regulatory functions and adjudicating civil disputes.
After independence, the Constitution of India provided for establishment of local bodies
and Panchayati Raj under article 40 (directive principles of state policy) as a subject with
NSOU l CC-PS-9 35

the states but did not further elaborate its structure, functions and other details. The
introduction of Panchayati Raj in the sixties was a major step towards institution building
process in promoting people’s participation in rural development. In the mid-sixties, the
funding for Community Development Projects dried up and panchayats got stagnated. In
1979 – 80 the District Rural Development Agency was established at district level,
development institution jointly registered by the Union and State Governments in each
district and societies.
The 73rd amendment of Indian Constitution in 1992 ushered in the present phase where
panchayats are described as institutions of Local-self-government. Presently there are
approximately 250,000 Gram Panchayats, 6500 Panchayats Samitis and 500 Zilla Parishads.

4.3 Panchayati Raj Institutions

The concept of Panchayati raj is not only based on the ancient Indian belief that “God
lives in the Panch”, or Panch Parmeshwar, but was very enthusiastically propounded by
Mahatma Gandhi. He believed in the power to all sections of people, and in grassroots
democracy. That is possible only through village panchayats. Importance of Panchayati Raj
Right up to the British period, panchayats played a very important role in the social life of
the village and also resolved minor disputes among villagers. Under the British rule, panchayats
lost the respect and power which they had earlier enjoyed because of the new system of
courts, laws and revenue collection. Though in independent India one of the Directive
Principles of State Policy in the Constitution directed the Union and State Governments to
try to take steps to organise village panchayats and give them such powers and authority
as may be necessary to enable them to act as units of self-government Panchayati raj was
not taken up seriously by the states. However, they are now given Constitutional status.

4.4 Recommendations of the Balwant Rai Mehta Committee

and the Ashok Mehta Committee
The Balwant Rai Mehta Committee (1957) suggested ways of democratic decentralisation
in a three-tier structure of panchayati raj. This meant that panchayati raj should be set up
at three levels. They should be furnished with sufficient powers and resources. These three
tiers of panchayati raj are: l zila parishad at district level; l panchayat samiti at intermediate
or block level; l village or gram panchayat at village level. In this scheme, panchayat samiti
was to be the most important. These three bodies were interlinked as the lower body was
represented in the higher body through its chairperson. Panchayati raj of the Balwant Rai
Mehta Committee pattern was first introduced by Rajasthan in 1959. Later, other States

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also followed. Initially, both the people and the states were enthusiastic about Panchayati
Raj. However panchayati raj institutions began to decline very soon owing to government
indifference and political interference. The Ashok Mehta Committee set up by the government
to review panchayati raj submitted its report in 1978. This Committee felt that panchayati
raj had inculcated political awareness among rural masses. However, it had not been
successful in carrying out economic development. Unlike the Balwant Rai Mehta Committee,
the Asoka Mehta Committee suggested a two tier structure of panchayati raj. These two-
tiers were to be: l zila parishad at district level; l mandal panchayat, an administrative unit
between village panchayat and panchayat samiti. In the two-tier system, the main emphasis
was laid on zila parishad and not on panchayat samiti as in the case of the earlier committee
report. However the recommendations of the Ashok Mehta Committee could not be
implemented due to the collapse of the Janata Government in 1980. The States like Bihar,
Uttar Pradesh and Tamil Nadu did not hold elections to panchayats for long. At the same
time, many new agencies were set up by the Central Government like -District Rural
Development Agency, to take up development programmes in collaboration with the State
Governments, with panchayats having no role in these programmes. They themselves hardly
had any funds to take up development projects in the villages.
4.5 The 73rd Amendment to the Constitution
Enacted in 1992 made statutory provisions for the establishment, empowerment and
functioning of Panchayati Raj institutions. Some provisions of this amendment are binding
on the States while others have been left to be decided by respective State Legislatures
at their discretion. The salient features of this amendment are as follows: Some of the
compulsory requirements of the new law are:
l Organisation of Gram Sabhas
l Creation of a three-tier Panchayati Raj Structure at the Zila, Block and Village
levels
l Almost all posts, at all levels to be filled by direct elections
l Minimum age for contesting elections to the Panchayati Raj institutions be twentyone
years
l There should be reservation of seats for Scheduled Castes/ Scheduled Tribes in
Panchayats, in proportion to their population, and for women in Panchayats up to
one-third seats
l State Election Commission to be set up in each State to conduct elections to
Panchayati Raj institutions

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l The tenure of Panchayati Raj institutions is five years, if dissolved earlier, fresh
elections to be held within six months
l State Finance Commission is set up in each State every five years

4.6 Composition of Panchayats

The Panchayati Raj system, as established in accordance with the 73rd Amendment,
is a three-tier structure based on direct elections at all the three tiers: village, intermediate
and district. Exemption from the intermediate tier is given to the small States having less
than 20 lakhs population. It means that they have freedom not to have the middle level of
panchayat. All members in a panchayat are directly elected. However, if a State so decides,
members of the State Legislature and Parliament may also be represented in district and
middle level panchayats. The middle level panchayats are generally known as Panchayat
Samitis. Provisions have been made for the inclusion of the chairpersons of the village
panchayats in the block and district level panchayats. The provision regarding reservation
of seats for Scheduled Castes/Scheduled Tribes has already been mentioned earlier. However
it should also be noted here that one-third of total seats are reserved for women, and one-
third for women out of the Quota fixed for Scheduled Castes/Tribes. Reservation is also
provided for offices of Chairpersons. The reserved seats are allotted by rotation to different
constituencies in a panchayat area. State Legislatures can provide for further reservation for
other backward classes (OBC) in panchayats.
Terms of the Panchayats
The Amendment provides for continuous existence of panchayats. The normal term of
a panchayat is five years. If a panchayat is dissolved earlier, elections are held within six
months. There is a provision for State level Election Commission, for superintendence,
direction and control of preparation of electoral rolls and conduct of elections to panchayats.
Powers and Responsibilities of Panchayats
State Legislatures may endow panchayats with such powers and authority as may be
necessary to enable the panchayats to become institutions of self-government at grassroots
level. Responsibility may be given to them to prepare plans for economic development and
social justice. Schemes of economic development and social justice with regard to 29
important matters such as agriculture, primary and secondary education, health and sanitation,
drinking water, rural housing, welfare of weaker sections, social forestry and so forth may
be made by them.

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4.7 Three-tier Structure of Panchayati Raj

(i) Panchayats at Village Level This is the basic or grassroots level of Panchayati raj. The
panchayat for a village or a group of villages includes (a) Gram Sabha, the symbol of direct
democracy; (b) Gram Panchayat and (c) Nyaya Panchayat.
(a) Gram Sabha Recognition to Gram Sabha, an institution of direct democracy, is an
important feature of the 73rd amendment. Gram Sabha consists of all adult residents
within a village or group of villages. Thus, it is the only institution of direct democracy
in the country. Generally, two meetings of Gram Sabha are held every year. In these
meetings, the Gram Sabha as the general body of the people hear annual statement
of accounts, audit or administrative report of panchayats. It also recommends new
development projects to be undertaken by panchayats. It also helps in identifying poor
people of the village so that they may be given economic assistance.
(b) Gram Panchayat The lower tier of the Panchayati raj system in the country is the
village level panchayat. It is known in most of the States as Gram Panchayat: The
members of a Gram Panchayat are directly elected by the people. The number of
members of a Gram Panchayat is fixed on the basis of village population. Hence, it
differs from panchayat to panchayat. Election is held on the basis of single-member
constituency. As already mentioned, one-third of the total number of seats are reserved
for women; and some for Scheduled Castes and Tribes including one-third for women
of Scheduled Castes and Tribes. Chairpersons of Gram Panchayats are called by
different names in different States as ‘Sarpanch, Pradhan or President. There is a
Vice-Chairperson also. Both are elected by members of the panchayat. Gram
Panchayats generally hold their meetings once a month. Panchayats at all levels constitute
committees for transaction of their business.
(c) Nyaya Panchayat These are judicial panchayats and reminder of ancient village
panchayat that settled local disputes. They are set up to provide speedy and inexpensive
justice. Jurisdiction of Nyaya Panchayat varies from State to State – one such panchayat
is set up for five or more-gram panchayats. Their tenure is between 3 and 5 years,
as determined by State law. Nyaya Panchayats generally deal with petty civil and
criminal cases, and can impose fine up to Rs. 100 only. There are no lawyers to plead
the cases in Nyaya Panchayat. Parties to the disputes argue their own cases.
(i) Panchayat Samiti
The second or middle tier of the Panchayati raj is Panchayat Samiti which
provides a link between Gram Panchayat and a Zila Parishad. The strength of

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a Panchayat Samiti also depends on the population in a samiti area. In Panchayat

Samiti, some members are directly elected. Sarpanch’s of gram panchayats are
ex-officio members of Panchayat Samitis. However, all the sarpanch of Gram
Panchayats are not members of Panchayat Samitis at the same time. The number
varies from State to State and is rotated annually. It means that only chairpersons
of some Gram Panchayats in a Samiti area are members of Panchayat Samiti at
a time. In some panchayats, members of Legislative Assemblies and Legislative
Councils as well as members of Parliament who belong to the Samiti area are
co-opted as its members. Chairpersons of Panchayat Samitis are, generally elected
from among the directly elected members.
(ii) Zila Parishad
Zila Parishad at the district level is the uppermost tier of the panchayati raj
system. This institution has some directly elected members whose number differs
from State to State as it is also based on population. Chairpersons of Panchayat
Samitis are ex-officio members of Zila Parishads. Members of Parliament,
Legislative Assemblies and Councils belonging to the districts are also nominated
members of Zila Parishads. The chairperson of a Zila Pazishad, called Adhyaksha
or President, is elected from among the directly elected members. The vice-
chairperson is also elected similarly. Zila parishad meetings are conducted once
a month. Special meetings can also be convened to discuss special matters.
Subject committees are also formed.

4.8 Functions of Panchayati Raj Institutions

All Panchayati raj institutions perform such functions as are specified in state laws relating
to Panchayati raj. Generally speaking, the functions are as under:
(i) Functions of Gram Panchayat
Some States distinguish between obligatory (compulsory) and optional functions of
Gram Panchayats while other States do not make this distinction. The civic functions
relating to sanitation, cleaning of public roads, drains and ponds, public toilets and
lavatories, primary health care, vaccination, supply of drinking water, constructing
public wells, street lighting, social health and primary and adult education, etc. are
obligatory functions of village panchayats. The optional functions depend on the resources
of the panchayats. They may or may not perform such functions as tree plantation on
road sides, setting up of breeding centres for cattle, organising child and maternity
welfare, promotion of agriculture, etc. After the 73rd Amendment, the scope of functions

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of Gram Panchayat was widened. Such important functions like preparation of annual
development plan of panchayat area, annual budget, relief in natural calamities, and
removal of encroachment on public lands, implementation and monitoring of poverty
alleviation programmes are now expected to be performed by Structure of Government
panchayats. Selection of beneficiaries through Gram Sabha’s, public distribution system,
non-conventional energy source, improved Chullahs, bio-gas plants have also been
given to Gram Panchayats in some states.
(ii) Functions of Panchayat Samiti
Panchayat Samitis are at the hub of developmental activities at the Blocl level. They
are headed by Block Development Officers (B.D. Os). Some functions are entrusted
to them like agriculture, land improvement, watershed development, social and farm
forestry, technical and vocational education, etc. The second type of functions relates
to the implementation of some specific plans, schemes or programmes to which funds
are earmarked. It means that a Panchayat Samiti has to spend money only on that
specific project. The choice of location or beneficiaries is, however, available to the
Panchayat Samiti.
(iii) Functions of Zila Parishad
Zila Parishad links panchayat samitis within the district. It coordinates their activities
and supervises their functioning. It prepares district plans and integrates samiti plans
into district plans for submission to the State Government. Zila Parishad looks after
development works in the entire district. It undertakes schemes to improve agricultural
production, exploit ground water resources, extend rural electrification and distribution
and initiate employment generating activities, construct roads and other public works.
It also performs welfare functions like relief during natural calamities and scarcity,
establishment of orphanages and poor homes, night shelters, welfare of women and
children, etc. In addition, Zila Parishads perform functions entrusted to them under the
Central and State Government sponsored programmes. For example, Jawahar Rozgar
Yojna is a big centrally sponsored scheme for which money is directly given to the
districts to undertake employment-generating activities.

4.9 Conclusion
Panchayat is the most ancient institution at the village level in our country. Panchayats
have been functioning as primary institutions of democracy at the grassroots level. The 73rd
amendment gave them constitutional status. The task of rural development now rests on
Panchayati raj institutions. The involvement of hitherto underprivileged sections, scheduled

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castes, scheduled tribes, backward classes and women in the participatory process will
further strengthen the grassroots institutions. The overall socio-economic and cultural
development of rural areas depends on strong panchayats. Panchayats as the foundations
of democracy at the grassroots can be strengthened only by reposing faith in them, endowing
them with adequate administrative and financial powers and encouraging vigilance and
active participation of the people.

4.10 Summing up
l Local Goverment in India refers to govermental jurisdiction below the level of the
state.
l India is a quasi-federal Republic with three spheres of goverment: central, state and
local.
l In rural areas Panchayati Raj institution is a system of local self-goverment, which
has been constitutalized through 73rd constitutional Act, 1992 to build democracy
at the grass roots level and has been entrusted with the task of Rural development
in the country.

4.11 Probable Questions

Essay Type Questions
1. Describe briefly the three-tier structure of Panchayati Raj.
2. Analyse the recommendations of the Balwant Rai Mehta Committee.
3. Why is the rural local self-goverment impotant in India?
4. Evaluate the functioning of panchayats as grassroots institutions of democracy
5. Evaluate the three-tier structure of Panchayat Raj.
Short Questions
1. What is Gram Sansad?
2. What is Gram Sabha?
3. Evaluate the composition of Panchayats.
Objective Questions
1. In which year was 73rd constitution amendment act passed?

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2. In which year was Ashok Meheta committee set up?

3. How many tiers are there in the Panchayati Raj system in India?
4. Name one standing committee of the Zila Parisad.
5. Which article of our constitution refers to Panchayat system?

4.12 Further Reading

1. Bhattacharya, A. (2009). Local Self-Governmentand Parliamentary Democracy in
India. Panchayari Raj Update, 6-7
2. Commission, S. A. (2007). Local Governance: An Inspiring Journey into the
Future. New Delhi: Government of India
3. Sharma, S. (1997). Grass Root Politics and Panchayati Raj. New Delhi: Deep and
Deep publications.
4. Singh, N. (2006). ICTs and Rural Development in India. Santa Cruz, USA: University
of California.
5. Verma, R. K., & Kumari, A. (2010). E-Governance at Grassroots Level in South
Asia: A Study of Citizencentric e-Panchayats in India. Asia-Pacific Journal of Rural
Development, XX(I), 131-149

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Unit 5 o Local Self Government in India: Urban
Structure
5.1 Objective
5.2 Introduction
5.3 Terms and Composition of Urban Local Self-Government
5.4 Functions of Urban Local Bodies
5.5 Types of Urban Local Government
5.6 Conclusion
5.7 Summing up
5.8 Probable Questions
5.9 Further Reading

5.1 Objective
After studying this unit, the learners will be able to
l know about the history of local self-governments in the urban areas
l understand the meaning of urban local- self governance
l grasp the role of urban local bodies in India
l analyse the powers and functions of urban local government

5.2 Introduction
The Urban local Government institutions in India, as it exists today is a British innovation.
Urban Local Self Governments play the major role in urban development process in India.
This level of governments has enormous functions and inadequate source of finances. These
governments invest surplus of own source over revenue expenditure along with external
sources (grant and other fund) for infrastructure development. Indian Constitution has
provided for a three tiers federal structure (Union, State and Local) specifying the powers
and responsibilities for all the tires of the governments. Therefore, it is the desired intention
of the Constitution that all the tiers of the Governments work in a co -ordinated manner
well within limits of the Constitution for urban infrastructure development. Third tier of
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Governments are generally termed as local self-governments and it has two wings, one
which operates in the rural areas and the other in the urban areas. Constitutional status has
been provided to these local governments through the 73th and 74th Constitutional
Amendment Acts, 1992.
Urban Local government implies the governance of an urban area by the people
through their elected representatives. 74th Constitutional Amendment Act, 1992 provided
constitutional status to local urban bodies. This act added a new part IX-A to the Constitution
entitled as ‘The Municipalities’ and a new Twelfth Schedule containing 18 functional items
for municipalities. The main provisions of this Act can be grouped under two categories–
compulsory and voluntary. Some of the compulsory provisions which are binding on all
States are:
l Constitution of Nagar panchayats, municipal councils and municipal corporations in
transitional areas (areas in transition from a rural area to urban area), smaller urban
areas and larger urban areas respectively
l Reservation of seats in urban local bodies for Scheduled Castes / Scheduled Tribes
roughly in proportion to their population
l Reservation of seats for women up to one-third seats
l The State Election Commission, constituted in order to conduct elections in the
Panchayati raj bodies (see 73rd Amendment) will also conduct elections to the
urban local self- governing bodies
l The State Finance Commission, constituted to deal with financial affairs of the
Panchayati Raj bodies will also look into the financial affairs of the local urban self-
governing bodies
l Tenure of urban local self-governing bodies is fixed at five years and in case of
earlier dissolution fresh elections are to be held within six months
Some of the voluntary provisions which are not binding, but are expected to be observed
by the States are:
l Giving representation to members of the Union and State Legislatures in these
bodies
l Providing reservation for backward classes
l Giving financial powers in relation to taxes, duties, tolls and fees etc
l Making the municipal bodies autonomous and devolution of powers to these bodies
to perform some or all of the functions enumerated in the Twelfth Schedule added
to the Constitution through this Act and/or to prepare plans for economic development

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In accordance with the 74th Amendment, municipal corporations and municipalities (municipal
boards or municipal committees) are now regulated in a fairly uniform manner in all the
States. However, one must remember that local self-government continues to be a subject
in the State List.
Thus, the 73rd and 74th amendments provide a framework for the States in respect of
local government. Thus, each State has its own Election Commission which conducts
elections to all local bodies after regular intervals of five years. Each State has its Finance
Commission to regulate finances of the local bodies. Seats are reserved in the corporations
and municipalities for Scheduled Castes and Tribes. One-third seats are reserved for
women in all local bodies – urban and rural.

5.3 Terms and Composition of Urban Local Self-Government

l The local governing bodies are elected for a term of five years.
l If the panchayat/municipality is dissolved before the expiry of its term, elections
shall be conducted within six months and the new panchayat/municipality will hold
office for the remainder of the term if the term has more than six months duration.
The Municipal bodies are constituted of persons chosen by direct election from the
territorial constituencies (known as wards) in the municipal area. However, the Legislature
of a State may, by law, provide for the representation in a municipal body of persons having
special knowledge or experience of municipal administration, the members of Rajya Sabha,
Lok Sabha and the members of Legislative Council and Legislative Assembly of the State,
representing constituencies, which comprise wholly or partly the Municipal Area. The state
legislature may also provide the manner of the election of the Chairpersons of a municipality.
The state legislature may also provide the manner of the election of the Chairpersons of
a municipality. Empowerment of weaker sections of society and women by reserving seats
for such groups is one of the important constitutional provisions of the Constitutional
Amendment. The offices of chairperson are also reserved for SC/ST and women. Thus,
at least one year, out of five-year duration of Municipal Corporation of Delhi, the office
of Mayor is reserved for a woman, and for one year is reserved for a Councillor of
Scheduled Caste. It gives a term of five years to the municipalities and if any of them is
to be dissolved, it must be given an opportunity of being heard.

5.4 Functions of Urban Local Bodies

It is a common practice to divide the organisation of a corporation or a municipality
into two parts:

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(a) Deliberative and

(b) Executive part
The corporation, council or municipal board or council consisting of the elected
representatives of the people constitutes the deliberative part. It acts like a legislature. It
discusses and debates on general municipal policies and performance, passes the budget
of the urban local body, frames broad policies relating to taxation, resources raising, pricing
of services and other aspects of municipal administration. It keeps an eye on municipal
administration and holds the executive accountable for what is done or not done. For
instance, if water supply is not being properly managed, or there is an outbreak of an
epidemic, the deliberative wing criticises the role of the administration and suggests measures
for improvement. The executive part of municipal administration is looked after by the
municipal officers and other permanent employees. In the corporations, the Municipal
Commissioner is the executive head, and all other departmental officers like engineers,
finance officers, health officers etc. function under his/her control and supervision. In a large
corporation, such as Delhi or Mumbai Municipal Corporation, the Commissioner is usually
a senior IAS officer. In municipalities, the executive officer holds a similar position and
looks after the overall administration of a municipality.
Municipal functions are generally classified into:
Obligatory and Discretionary types.
The obligatory (compulsory) functions are those that the municipal body must perform.
In this category fall such functions as water supply; construction and maintenance of roads,
streets, bridges, subways and other public works, street lighting; drainage and sewerage;
garbage collection and disposal; prevention and control of epidemics. Some other obligatory
functions are public vaccination and inoculation; maintenance of hospitals and dispensaries
including maternity and child welfare centres; checking food adulteration; removal of slums;
supply of electricity; maintenance of cremation and burial grounds; and town planning. In
some States some of these functions may be taken over by State Government.
The discretionary functions are those that a municipal body may take up if funds permit.
These are given less priority. Some of the discretionary functions are construction and
maintenance of rescue homes and orphanages, housing for low-income groups, organising
public receptions, provision of treatment facilities, etc.
5.5 Types of Urban Local Government
There are eight types of urban governments in India.
1. Municipal Corporation: Municipal corporations are created for the administration
of big cities like Delhi, Mumbai, Hyderabad and others. A Municipal Corporation

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has three authorities namely, the council (legislative wing of the corporation), the
standing committee (to facilitate the working of the council) and the commissioner
(chief executive authority of the corporation). The council consist of councillors
directly elected by people and is headed by a mayor, while the Commissioner is
appointed by state government and is generally an IAS officer.
2. Municipality: The municipalities are established for the administration of towns
and smaller cities. They are known by various other names like municipal council,
municipal committee, municipal board, borough municipality, city municipality and
others. In composition they are quite similar to municipal corporations except that
head of council is called President /chairman and in place of commissioner they
have a chief executive officer/chief municipal officer.
3. Notified Area Committee: A notified area committee is created for the
administration of two types of areas- a fast developing town due to industrialisation,
and a town which does not yet fulfil all the conditions necessary for the constitution
of a municipality, but which otherwise is considered important by the state
government. It is called so because it is created by a notification and unlike the
municipality it is an entirely nominated body, i.e., all members, including the Chairman,
are nominated by the state government. Thus, it is neither a statutory body (created
by law) nor an elected body.
4. Town Area Committee: It is set up by a separate act of state legislature for the
administration of a small town. It is a semi-municipal authority entrusted with
limited number of civic functions. It may be wholly elected or wholly nominated or
partly elected and partly nominated as provided by state government.
5. Cantonment Board: It is established for municipal administration for civilian
population in the cantonment areas (area where military forces and troops are
permanently stationed). It is set up under the provisions of the Cantonment Act,
2006 by central government and works under Defence ministry of central
government. It is partly elected and partly nominated body having the Military
officer commanding the station as its ex-officio President. Vice president is elected
9 amongst by the elected members of board. The executive officer of the cantonment
board is appointed by the President of India.
6. Township: It is established by large public enterprises to provide civic amenities
to its staff and workers, who live in the housing colonies built near the plant. It is
not an elected body and all members, including the town administrator, is appointed
by the enterprise itself.

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7. Port Trust: The port trusts are established in the port areas like Mumbai, Kolkata,
Chennai and so on for two purposes: (a) to manage and protect the ports; (b) to
provide civic amenities. It is created by an Act of Parliament and it consists of both
elected and nominated members.
8. Special Purpose Agency: The states have set up certain agencies to undertake
designated activities or specific functions that legitimately belong to the domain of
municipal corporations, municipalities or other local urban governments. In other
words, these are function based, not area based. They are known as ‘single
purpose’, ‘uni-purpose’ or ‘special purpose’ or ‘functional local bodies’ like town
improvement trust, housing boards, pollution control boars etc. They are established
as statutory bodies by an act of state legislature or as departments by an executive
resolution. They function as an autonomous body and are not subordinate agencies
to local municipal bodies.

5.6 Conclusion
It is often said that a democracy matures only when the link between the vote and
public good is firmly established in the citizens’ mind. People would be willing to pay taxes
only when the tax money is deployed for better services in the locality in a manner that the
tax-payer appreciates where the public money is going. Unless authority at each level
matches the responsibility, we will continue to preside over a dysfunctional system of alibis,
and citizens will continue to be disenchanted with our democratic process.
Three basic issues need to be addressed while empowering local governments. First,
democratic institutions need careful nurturing, abundant patience, and institutional designs
that maximise the benefits and ensure constant self-correction. Second, transfer of power
in any form is painful and difficult. Local governments are only now taking roots after 60
years of independence. As state governments have come into their own over the decades,
there is a natural tendency to hold on to their turf, and resist empowerment of local
governments. Giving up power is never easy, and is unusually resisted. The states should
therefore be enabled to discover a new and vital role, even as local governments become
stronger and more vibrant. In some ways, the union government discovered such a role in
respect of the states over the past two decades. Political, economic and legal changes
completed transformed the union’s role vis-à-vis states, and yet while union control has
declined, its leadership and coordination role are more important than ever before. Such
a transformation in the role of states vis-à-vis local governments is critical. Third, local
government empowerment must ensure continuity and accountability.

NSOU l CC-PS-9 l l

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3rd Proof ♦ CPP [01/12/2022]
Dummy Print ♦CPP [14/12/2022]
NSOU l CC-PS-9 49

5.7 Summing up
l Urban Local Government implies the governance of an urban area by the people
through their elected representatives.
l The 74th constitutional Amendment Act 1992 provided constitutional status to local
urban bodies.

5.8 Probable Questions

Essay Type Questions
1. Write a note on the urban local self-government in India.
2. What are the powers and functions of urban local government?
3. Discus the composition and Panchayat Raj of the urban local government
1. What is urban local government?
2. Discuss the type of the urban Local Government.
Short Questions
1. What is the terms of the urban local government bodies?
2. What is Municipal Corporation?
3. Why has Cantonment Board been established?
Objective Questions
1. Which constitution amendment act is related to urban local self-goverment?
2. What is the term of an urban local self-goverment?
3. Name a Municipal Corporation in West Bengal.
4. By which name is the executive head of a Corporation known?
5. Name one obligatory function of a Minicipality.

5.9 Further Reading

1. https://darpg.gov.in/sites/default/files/local_governance6.pdf accessed on 10th April 2022
2. https://www.soumu.go.jp/main_content/000336345.pdf accessed on 10th April 2022
3. Bhattacharya, Mohit ,1946, Management of Urban Local Government in India,
Uppal Book Store, New Delhi
4. Goyal, S.L., and Dhaliwal, S.S., 2002, Urban Development and Management.
Deep and Deep Publication, Kolkata.

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3rd Proof ♦ CPP [01/12/2022]
Dummy Print ♦CPP [14/12/2022]
MODULE – 3
102 NSOU l CC-PS-9
Unit 11 o Public Service Delivery
Structure
11.1 Objective
11.2 Introduction
11.3 Public Service Delivery System
11.4 Challenges Pertaining to Public Service Delivery
11.5 Government Initiatives for Public Service Delivery
11.6 Conclusion
11.7 Summing up
11.8 Probable Questions
11.9 Further Reading

11.1 Objective

l know that after studying this unit, the learners will be able to the main objective of
Public Service Delivery is to deliver goods and services to the common people, rather
than to generate profits. Public Service delivery is important because it helps provide
people with amenities they want or need by linking them to an organization with the
resources to provide those services.
l understand that public services make the state visible to its citizens, often forming the
principal tangible link between governments and their people.
l know that public services carry and diffuse the values of the new nations and contribute
to the bonding between the State and Citizens. It can empower people through easy
access to better information on the performance of service providers, making it easier
for citizens to monitor performance.
l learn that most successful ICT interventions that improve public service delivery are
implemented through partnerships among several public and private agencies.

11.2 Introduction
The introduction to public service course is a foundational course in the public services
104 NSOU l CC-PS-9

pathway, designed to provide students with basic theories and practical skills for career
exploration and post graduate education in Public Services. Students will engage in critical
thinking, communication and analytical writing skills by applying law and theories to current
community issues. This course emphasizes research skills and project based learning to
promote career exploration and career awareness of applications in the field of law. Criminal
justice, Law enforcement, fire services, emergency medical responding and cyber / technology
security.

11.3 Public Service Delivery System

Public Service is a service which is provided by the government to people, either
directly (through the public sector) or by financing provision of services. It is the mechanism
through which public services are delivered to the public by Local, Municipal or Federal
Government. Some key public service are - Health Care, Education, Social Services for
the Poor and Marginalized, Environmental Protection, Waste Management, Sanitation
(including toilets), Law enforcement, Fire Service, Public Transportation, Postal Services
etc.
Public Services delivery offers a comprehensive view of government performance
measurement. The term is associated with a social consensus (usually expressed through
democratic elections) that certain services should be available to all, regardless of income,
physical ability or mental acuity. Examples of such services include the fire brigade, police,
air force, public transportation, postal services etc.
People want best services at least cost. The services have to be both effective and
efficient. Service sector attracts significant FDI, contributes to exports and provides large-
scale employment. The Government of India, to promote growth in service sector, provides
several incentives.
Public Services play a key role in smooth functioning of democracy in India. The public
services in India are classified into three categories - all India Services, Central Services
and State Services.
Im India, the government has been Omnipresent in the lives of citizens, envisaged by
the architects of the nation following independence from British colonialism in 1947. With
the aim of alleviating endemic poverty, free or heavily subsidised provision of basic and
essential services has been the hallmark of public policy. However, there is broad consensus
that the State has failed to effectively deliver public services to its citizens, particularly the
poor. This is reflected starkly in the dismal performance of the country on almost all
dimension of human development. Given the high levels of poverty and absence of a social
NSOU l CC-PS-9 105

security program, subsidized public provision of food grains through a Public Distribution
System (PDS). However, leakages from the PDS are large and grains are often siphoned
off to the open market.
The Second largest Social Protection program which provides the right to employment
has similarly been beset with concerns about poor targeting and misappropriation. Not
surprisingly, almost 270 million people lived below the poverty line in 2011.
Expenditure on the public provision of education by the state accounted for approximately
3% of the GDP in 1015-16. Participation or enrolment in educational institutions has been
steadily expanding in India Since indipendance but acceptable levels of educational attenment
by students have remained elusive. The drop-out rate from children progressing from
grade 1 to 5 was as high as 25 percent in 2005-06 in India. Finding from a nation wide
survey of rural primary schools show that about half of students enrolled in grade 5 cannot
read text meant for second graders.
As in the case of education, the primary responsibility for providing health, drinking
water and sanitation facilities in the country nests with the state governments and the local
bodies in the urban areas. Annual budgetary allocations for health, including water and
sanitation have increased, but remained stagnant as a proportion of GDP at less than 1.5%
GDP. This is possibly reflected in low quality or at worse, absent public health services.
l Thus public service delivery is unsutis factory when compared with other countries
at similar levels of development.
l Weak monitoring and Leakages in public services and programmes.
l Expenditure on education by the state accounted for approximately 3% of the GDP
in 2015-16.
l Annual budgetary allocations for health, including water and sanitation have remained
stagnant at less them 1.5% of the GDP.
l Low levels of human capital and inadequate access to basis infrastructure.
But citizens in Low income democracies depend to a large extent on the State for the
provision of basic services, viz education health and infrastructure. There are several
pathways through which governance and the quality of public services can impact a country's
growth. The overarching objective of public provision of free or subsidized services in low
income countries is to deliver social protection to the poor and vulnerable and to alleviate
poverty. The quality of governance, thus has direct implications for economic growth.
Thus, the effective delivery of public programmes is likely to have a direct impact on
106 NSOU l CC-PS-9

growth via poverty reduction. Secondly, often the aim of public service provision is to
reduce inequitable distribution of resources and correct historical enquires, such as caste
based discrimination and gender inequalities.

11.4 Challenges Peraining to Public Service Delivery

There are some challenges which affect the Public Service Delivery System in India. These
are as follows :
a) Policy Paralysis : Delays, inaction and inability to take Policy decisions by the
government or its Various Departments and agencies is one of the main causes of
delay in the service delivery.
b) Bureaucratic Attitude : Sometimes, despotic attitude and obstructioinst attitude of
officials especially in higher echelons of bureaucracy acts as hindrance in carrying
out Public Service effectively.
c) Inadequate political will : Recently, due to inefficiency and under utilization of
funds, the Members of parliament Local area Development Scheme (MPLADS)
has been suspended for two financial years.
d) Red Tapism : Due to over regulation and practice of requiring excessive paper
works and tedious procedures before official action hinders implementation of
schemes and projects, thereby it affects the process of effective public fund
utilization.
e) Lack of Public Participation : With a high level of illiteracy and ignorance about
government policies and schemes, many citizens (especially poor) could not demand
their rightful services form the government.
Again, there are some other administrative challenges associated with the use of ICT
services.

11.5 Government Initiatives for Public Service Delivery

l The Sevottam model developed with the objective of improving the quality of
Public Service Delivery in the Country.
l Direct Cash transfer to facilitate disbursements of government entitlements.
l The Digital India Programme to ensure that government services are available to
citizens electronically.
NSOU l CC-PS-9 107

l My Gov. citizen portal to engage citizens in the task of 'good governance'.

l E-Kranti Scheme to broaden the reach of internet services to the rural areas

11.6 Conclusion
Quality Service delivery is an important component of good governance. It requires
a number of reforms such as effective utilization of public funds, decentralization of power,
plugging legislative loopholes, strengthening the public institutions like CVC and RTI,
enhancing administrative accountability and making Society more democratic. These reforms
could improve public service delivery more efficiently in the long run.
The quality of governance and public service delivery can affect economic growth
through its impact on human capital, poverty and inequality and corruption. It is widely
agreed that there is a governance deficit in India and while there has been programms in
the delivery of public services, it is unsatisfactory when compared with other countries at
similar levels of development. There are large disparities between the poor and rich in the
country and it is the poor who suffer much more due to weak public service delivery than
from those who can access these services from the market.

11.7 Summing up
l Public Service delivery in a democratic country is urgently needed for governance.
l Government agencies are not profit oriented and their employees are often motivated
differently.
l A study concluded that Public Services are associated with higher human need
satisfaction and lower energy requirements while contemporary forms of economic
growth are linked with the opposite.

11.8 Probable Questions

Essay Type Questions
1) Explain Public Service delivery system in India.
2) What are the challenges Pertaining to Public Service delivery.
3) What is the importance of Public Service Delivery?
4) What is service delivery in local government?
108 NSOU l CC-PS-9

5) What are the major challenges to Public Service Delivery?

Short Questions
1) Give some examples of Public Service delivery.
2) Mention the principles of Public Service delivery
3) Mention the relation between Good Governance and Public Service delivery.
4) What is the meaning of Public Service Delivery?
Objective Questions
1) What is full form of PDS?
2) How many people lived below poverty line in India in 2011?
3) What is full form of GDP?
4) What was the percentage of expenditure of the GDP for education in 2015-2016?
5) What is the full form of MPLADS?

11.9 Further Reading

1. A. Saha - Public Service Delivery
2. Grant Thornton - Public Service Delivery System
3. S. Bhatnagar - Public Service Delivery
Unit 12 o Redressal of Public Grievances (RTI)
Structure
12.1 Objective
12.2 Introduction
12.3 Redressal of Public Grievances
12.4 Types of Public Grievances
12.5 R.T.I. Act
12.6 Who Can File an Application under RTI Act?
12.7 Processes of Filling Applications under RTI Act
12.8 Digital Right to Information System
12.9 Scope of RTI Act
12.10 Rejection of Application under RTI Act
12.11 Conclusion
12.12 Summing up
12.13 Probable Questions
12.14 Further Reading

12.1 Objective
l understand that corruption, harassment by officials, delay in disposal of cases,
arbitrary decisions and maladministration are some of the black spots of public administration
in India. The average citizen is interested more in the devices of redressal of his grievances
than in the sophisticated manual of organisation and methods of disposal of governmental
business.
l know that he wants responsive, sympathetic and courteous administration and it
is one of the great problems of public administration to make public officials fair, sensitive,
responsible, responsive and to protect the citizen against administrative arbitrariness.
l learn that the objective of the redressal of public grievances cell is to develop a
responsive and accountable attitude towards all the stakeholders in order to maintain a
harmonious educational atmosphere in the institute. The objective of the grievance redressal
110 NSOU l CC-PS-9

is to create an opportunity for the employee to communicate with management, to ensure

that complaints are effectively delt with by management and to prevent disputes from arising
in the work place.

12.2 Introduction
Grievance Redressal mechanism is the part and parcel of the machinery of any
administration. No administration can claim to be accountable, responsive and user-friendly
unless it has established an efficient and effective grievance redressal mechanism of an
organization. Its objects is to gauge the efficiency and effectiveness of an administration as
it provides important feedback on the working of it.

12.3 Redressal of Public Grievances

The term 'Grievance Redressal' primarily covers the receipt and processing of complaints
from citizens and consumers. However a wider definition includes actions taken on any
issue raised by them to avail services more effectively.
A grievance is a concern, problem or complaint that an employee raises with an
employer. An employee can raise a grievance for a number of reasons and circumstances,
including but not confining to a change in their terms and conditions of employment, bullying
or harassment in the workplace, wages and discrimination.
Employees should have effective measures in place to deal with a grievance. To raise
a voiceagainst any grievance is not one that is normally taken lightly by an employee. Since
that signifies the failure of fornar complaint mecanism enabelded in the administration
system.
In order to handle employee grievances, there should be a recognised established and
clear procedure in place which has been communicated to all employees.
Any complaint should be taken seriously, investigated without delay and the employee
should get a fair hearing in order to avoid putting the business through a lengthy or costly
employment tribunal.
An employe’s failure to deal with an employe’s grievances was highlighted in the case
of an 88 years old medical secretary, in which the tribunal said her dismissal was tainted
by discrimination. It was found that the employer did not address her formal complaints.
NSOU l CC-PS-9 111

12.4 Types of Public Grievances

An analysis of grievances received in Department of Administrative Reforms and public
grievances and Directorate of Public grievances has revealed that the majority of grievances
related to inordinate delay in taking decisions, extending from several months to several
years and refusal inability to make speaking replies / disclose basic information to the
petitioners to enable them to examine whether their cases have been correctly decided. It
is observed that, had the concerned organisations expeditiusnly and appropriately dealth
with the grievances in the first instance, the complainants would not have approached
Department of Administration Reforms and Public Grievances / Directorate fo Public
Grievances.
The redressal of public grievance is not an easy task. The following steps may help
in redressal of their grievances to some extent
a) Judicial Remedies
The constitution of India has guaranteed certain fundamental rights to the people
and in case there is a violation of any of these rights, the aggrieved person can
move the High Court or Supreme Court for enforcement of his rights. A citizen
can also avail of the judicial remedy against any wrong done to him by a public
servant in the course discharge of his public duty. The judicial remedies against
the administration may include: Suits against the government for quashing of its
arbitary, discriminatory and unlawful orders, reinstatement of employees, payment
of salary arrears and other damages; writ jurisdiction of the supreme Court and
High Court which has the effect of quashing administrative orders, prohibiting
administration form some act or directing it to do a particular act or not to do it.
b) Parliamentary Procedure
The Principle of ministerial responsibility gives parliament the right to probe into
executive actions. The elected representatives having been persuaded by their
constituents ask questions in parliament, move adjournment motion, censure motion
call-attention motion to draw the attention of the house to a particular matter.
There is also a parliamentary committee, the committee on petitions to which the
citizen may submit petitions to secure redress against an act of injustice. However,
the parliamentary action is circumscribed by the rules of procedure and speaker's
rulings.
c) Complaint Forums
The government has setup numerous complaint forums at different levels to receive
112 NSOU l CC-PS-9

people's complaints and take further necessary action. These complaint cells have
been created in various government organisations for speedy disposal of public
complaints. One may also air one’s grievances before a senior officer against the
actions of his subordinates. Complaint officers have been appointed in organisations
dealing with the public. Complaint boxes and registers are maintained in many
organisations.
This remedy also is not much helpful because the complaint officers are reluctant
to hold their own colleagues responsible. They are afraid to investigate grievances
against a decision taken by an officer senior to them.
d) Enquiries
There is a provision for instituting departmental as well as public enquiries under
the provisions of public servant (Enquiries) Act, against a public servant for his
acts of misbehaviour. Various commissions have been appointed from time to time
by the government to investigate the allegations against the civil servants, for
instance, the Chagla Commission, Das Commission, Aiyangar Commission etc.
While these commissions have down useful work, the remedy is not effective to
provide redress to the common man against his grievances regarding day to day
matters. Generally serious matters of maladministration and corruption are the
subject matter of public enquiry.
Thre is also a cental vigilance commission headed by a vigilance commissioner to
investigate corruption charges and complaints of misconduct, malpractices on the
part of public servants.

12.5 R.T.I. Act

The Right to information is an act of the parliament of India which sets out the rules
and procedures regarding citizen's right to information. It replaced the former Freedom of
|Information Act, 2002. Under the provisions of RTI Act, any citizen of India may request
information from a 'Public Authority' (a body of government instrumentality of state) which
is required to reply expeditiously or within thirty days. Incase of matter involving petitioner's
life and liberty, the information has to be provided within 48 hours. The Act also requires
every public authority to computerize their records for wide dissemination and to proactively.
Publish certain categories of information so that the citizens need minimum recourse to
request for information formally.
The RTI Bill was passed by parliament of India on 15 June, 2005 and come into force
with effect from 12th october 2005. Everyday on an average, over 4800 RTI applications
NSOU l CC-PS-9 113

are field. In the first ten years of the commencement of the Act over 17,500,000 applications
had been field.
Although Right to information is not included as a Fundamental Right in the constitution
of India, it protects the fundamental Rights to Freedom of Expression and Speech under
Article 19 (i)(a) and Right to life and personal liberty under Article 21 guaranteed by the
const.

12.6 Who Can File an application under RTI Act?

Any citizen can ask for information under these Laws. The Act extends to the whole
of India except the State of Jammu and Kashmir. Overseas citizens of India and persons
of Indian origin card holders can also ask for information under the RTI Act 3rd June,
2018.
RTI is one of the strongest legislations made for the common man giving them a right
to question any public authority and their activities. Whether it is water connection problems
or cleanliness issue in your area or the pension process, you can ask for any information
in the public domain under the RTI Act. The Act was introduced to ensure transparency
and accountability of each public authority's work. The Act is applicable across India, with
the exception of the state of Jammu and Kashmir.

12.7 Processes of Filling Applications under RTI Act

There is a simple procedure to be followed to file an RTI request Offline, which
involves the following steps :
Step-1 : One needs to first identity the department in which one wishes to file on RTI
plea. Depending on the subject, the request would either come under the scape of local
authority, State Government or Central Government.
Step-2 : The application is to be written or typed in Hindi, English or the particular
area\s local language. One can also refer to the public information officer to write the
application.
Step-3 : Application is to be addressed to the Central/State public information officer.
The name and the complete address of the office from which one wishes to seek information
is to be mentioned. The subject line should clearly mention. “Seeking information under
the RTI Act, 2005”.
Step-4 : Request can then be put in with detailed, specific questions mentioning the
year or period the plea falls in. One can also request for the documents or its excerpts
114 NSOU l CC-PS-9

if it is required. The documents can be obtained at a nominal charge of Rs. 2 per page.
Step-5 : Rs. 10 is to be paid in the form of either cash, bank draft, money order or
a court fee stamp to file the request. The stamps needs to be one the application. People
belonging to the below poverty line (BPL) category are excluded from paying the fee; after
producing proof.
Step-6 : Full name, address and contact details along with the e-mail address of the
applicant need to be mentioned clearly. The date as well as the town's name need to be
stated.
Step-7 : The application can then be sent by mail or handed in personally to the
concerned office. Receiving on acknowledgement is a must. Be sure to keep a photocopy
of the application for further referance.
Step-8 : The government mandates the concerned office to respond to the request
within a period of 30 days. If the same does not happen, one can file an appeal to "The
appelate authority" who are also mandated to respond within 30 days. The appeal can
then be made to information commissioner, state/central information commission.

12.8 Digital Right to information System

A digital portal has also been set-up, RTI Portal, gateway to the citizens for quick search
of information on the details of First Appellate Authorities, PIO etc. amongst others, besides
access to RTI related information disclosures published on the web Various PublicAuthorities
under the Government of India as well as the State Governments. It is an initiative taken by the
Dept. of Personnel and Training Ministry of Personnel public Grievances and pensions.

12.9 Scope of RTI Act

The Act extends to the whole of India. It covers all the constitutional authorities,
including executive, legislature and judiciary; any institution or body established or constituted
by an Act of parliament or a State legislature. It is also defined in the Act that bodies or
authorities established or constituted by order or notification of appropriate government
including bodies owned controlled or substantially financed by government or non-gogernment
organisations substantially financed, directly or indirectly by funds.
The Right to information in India is governed by two major bodies
l Central Information Commission (CIC)
l State Information Commission (SIC)
State and Central Information Commissions are indipendent bodies and Central Information
Commission has no jurisdiction over the State Information Commission.
NSOU l CC-PS-9 115

12.10 Rejection of Application under RTI Act

Scholars argue that the right to information act's original intent to make government
transparent and accountable is faltering as RTI requests are reflected and the bureaucratic
systems are bagged down by millions of requests.
Many |RTIS are rejected because the bureaucratic requirements (including the technocratic
language used) of filling are too onerous and legalistic for ordinary citizens. Sixty percent
of the RTI appeals made to information commissioners in Delhi are rejected for a variety
of reasons, including that appeals are not typed or not written in English or lack on index
of the papers attached or a list of date. This bureaucratic barrier, worse for those without
access to higher education or information, makes the right to information inaccessible.
Many citizens have to seek out NGOS, RTI activists or lawyers, to file their RTIs.

12.11 Conclusion
The Public Information Officers are the link between the information seeker and the
Public Authority. They are responsible for receiving applications and then give on appropriate
replay to the applications as per the provisions of the Right to Information Act.
Only citizens of India have the right to seek information under the provisions of RTI
Act, 2005.

12.12 Summing up
l RTI Bill was passed by the Lok Sabha on 11th May, 2005 and by Rajya Sabha
on 12th May, 2005, and received assent of the President of India on 21st june 2005 and
came into force with effect from 12th october 2005. It known as Right to Information Act,
2005.
l Right to information Act 2005 mandates timely response to citizens requests for
government information by various Public Authorities under the Government of India as
well as the State Governments.
l The objective of the RTI Act is to empower citizens by providing informations. It
promotes transparency and accountability in working of Government. It tries to prevent
and eliminate corruption.
l Finally, it transforms the relationship between the Citizen and Government.
116 NSOU l CC-PS-9

12.13 Probable Questions

Essay Type Questions
1) What do you mean by Redressal of Public Grievances?
2) Mention different types of Public Grievances.
3) What is RTI and how one can use it?
4) What can RTI do for the people?
Short Questions
1) What are the examples of RTI?
2) What type of questions cannot be asked under RTI?
3) What information cannot be provided under RTI?
4) What is public information officer?
5) Who can file an RTI?
6) What questions can be asked under RTI?
7) Which information can be denied under RTI?
8) What is the time period for supply of information?
Objective Questions
1) What is full form of RTI?
2) Which state is execluded from RTI Act?
3) In which year was RTI Act passed?
4) What is the full form of CIC?
5) Whithin how many days is information to be provided to an information seeker
under RTI Act?

12.14 Further Study

1. Devendra Kumar Singh - Right to information Act 2005
2. Dr. Neraj Kumar, 2nd Edition, 2002 - RTI case Digest
3. Dr. J.N. Barowala and Abhishek Barowala - Commentary on The Right to
Information Act., (5th ed,)
4. Dr. K. B. Roy - Right to Information
Unit 13 o Lokpal Bill

Structure
13.1 Objective
13.2 Introduction
13.3 History of the Lokpal Bill
13.4 Lokpal Act
13.5 Powers and Functions of the Lokpal
13.6 Expenses of the Lokpal to be Charged on the Consolidated Fund of India
13.7 Conclusion
13.8 Summing up
13.9 Probable Questions
13.10 Further Reading

13.1 Objective
After studying this unit, the learners will be able to
l know that the objective of the Lokpal is to deter corruption, compensate citizen
grievances and protect whistle blowers.
l learn that the objective of the Lokpal is to enquire into allegations of corruption
against certain public functionaries and for matters connected therewith or incidental thereto.
l understand that the purpose of this bill is to decrease the overall corruption and
listen to the grievances of the citizens of India.

13.2 Introduction
The idea of an anti-corruption body and an ombudsman to look into corruption allegations
against administrators, including legislators, has been floating around for over five decades
now. If finally got shape with the passing of the Lokpal and Lokayuktas Bill, 2013, in the
Lok Sabha and December 18, 2013, but only after a nation wide protest led by 'India
against corruption', a civil society movement of activist Anna Hazare.
118 NSOU l CC-PS-9

13.3 History of the Lokpal Bill

The term 'Lokpal' was coined by Dr. L. M. Singhvi in 1963. The concept of constitutional
ombudsman was first proposed in Parliament by Law Minister Ashoka Kumar Sen in the
yearly 1960s. But the year 2011 will be remembered in India as the year of campaign
against corruption and for the Jon - Lokpal Bill. The campaign began in January 2011 in
the backdrop of the publicity that accompanied the several mega - scams that surfaced in
2010, notably those relating to the Common Wealth Games and the Telecom Spectrum
allocations. It caught the public imagination with Anna Hazare's fast at Jantor Montor in
New Delhi in april 2011, that forced the UPA Govt. to constitute a joint drafting committee
for a Lokpal Bill. The Civil Society representative in the committee proposed a bill called
the Lokpal Bill which became the basis for discussions.
The Jan Lokpal Bill thus provided for the selection of a 11 member Lokpal by a broad-
based selection committee, comprising the Prime Minister, the leader of the opposition, two
judges selected by all the judges of the supreme court, the comptroller and Auditor General.
The chief Election Commissioner, the central vigilance commissioner and the previous three
chairpersons of the Lokpal, through a transparent process.
It sought to bring the anti-corruption wing of the Cental Bureau of Investigation (CBY)
and the Lokpal's administration control. The Lokpal was to be given corruption investigation
jurisdiction over all the public servants (including members of Parliament, Judges and all
sections of bureaucracy), and those who may have abetted their acts of corruption
including corruptions or non-governmental organisation. The Lokpal could recommed the
removal of those officers who were-charge sheeted for corruption and the freezing of any
assets that seemed to be acquired by corrupt means

13.4 Lokpal Act

The Lokpal Act contains 62 sections and several sub-sections under 15 chapters. The
following is the summary of the Lokpal Act.
Composition :
Section 3 under chapter 11 of the Lokpal Act describes the qualifications for appointment
as the chairperson and members of the Lokpal, It states that to be appointed as a Chair
person of the Lokpal, a person should have one of the following qualifications - must be
a Chief Justice of the Supreme Court, a judge of the Supreme Court or an eminent person
with impeccable integrity, outstanding ability and with special knowledge and expertise of
NSOU l CC-PS-9 119

not less than twenty-five years in administration, vigilance, finance, law and management.
The total number of other members of the Lokpal shall be eight, of which 50 percent
shall be form the judicial service.
Each of such four persons should have been a Judge of he Supreme Court or a Chief
Justice of a High Court. The remaining 50 percent of the Lokpal should be filled by
persons from the SOS, the STs, the OBCs, the minorities and women.
The chairperson and the members of the Lokpal shall be appointed after obtaining
recommendations from the selection committee headed by the Prime Minister. The president
appoints the chairperson and the members of the Lokpal. Such appointee hold office for
a period of five years or until they attain the age of 75, whichever is earlier.

13.5 Powers and Functions of the Lokpal

Though the powers and functions of the Lokpal are not spelt out under any heading
together, they are spread over the various sections of he Lokpal Act. The following are
some of the powers and functions of the Lokpal, the highest body, under the Lokpal Act
of 2014.
i) Power of appointment : The Lokpal appoints the secretary for the administration,
the director of the inquiry wing, the director of prosecution wing, the officials and
the staff of the Lokpal, the members of the benches and of the special court of
the Lokpal.
ii) Overall Direction and Supervision of three Wings : The secretary for administration,
the director of the inquiry wing, and the director of the prosecution wing work
under the overall direction and supervision of the Lokpal.
iii) Overall financial Supervision : The Lokpal has overall supervision over the financial
administration of its organisation. The annual budget is submitted to the central
government on behalf of the Lokpal.
iv) Financial appellate authority : The Lokpal is the final authority in respect of the
redressal of Public grievances.
v) Specific role in Prime Ministers case : The Lokpal has to play a specific role in
conducting an inquiry into the charges of corruption against the Prime Minister.
The Lokpal will have the power of superintendence and direction over any investigation
agency including CBI for cases referred to them by the ombudsman. As per the act, the
Lokpal can summon or question any public servant if there exists a prima facie case against
120 NSOU l CC-PS-9

the person, even before an investigation agency (such as vigilance or CBI) has begun the
probe. Any officer of the CBI investigation a case referred to it by the Lokpal, shall not
be transferred without approval of the Lokpal
An investigation must be completed within Six months. However, the Lokpal or
Lokayukta may allow extensions. Six months at a time provided the reasons for the need
of such extensions are given in writing Special courts will be instituted to conduct trais on
cases referred by Lokpal. The Lokpal can charge fine upto Rs. 2 Lakh for false, frivolous
and vexatious complaints.

13.6 Expenses of the Lokpal to be Charged on the Consolidated

Fund of India
Section 13 under chapter V States that the administrative expenses of the Lokpal,
including all salaries, allowances and pensions payable to the chairperson, the members, the
secretary, other officials and the staff of the Lokpal shall be charged on the consolidated
fund of India. Expenses charged on the consolidated fund of India are subject only to
discussion but not subject to votings in the parliament. Fees and other amount collected
by the Lokpal shall form part of the consolidated fund of India.
Miscellaneous Matters
Sections from 48 to 62 under chapter XV deal with miscellaneous matters. A few of them
are listed below :
i) Annual report to the president :
Section 48 states that the Lokpal shall present an annual report to the president
of India on the work performed by it. On the receipt of such report of the
president shall cause a copy of the report with a memorandum of suggestions from
the Lokpal to be laid before each house of Parliament.
ii) Lokpal is the final appellate authority :
Section 49 states that the Lokpal is the final appellate authority with respect to the
redressal of public grievance regarding findings of corruption charges under the
Prevention of Corruption Act of 1988.
iii) Lokpal - all are public servants :
Section 52 states that the chairperson, the members and other employees of the
Lokpal are deemed to be public servants under section 21 of the Indian penal
code.
NSOU l CC-PS-9 121

iv) No Complaint after expiry of Seven years :

Section 53 says that the Lokpal shall not inquire into or investigate any complaint
if the complaint is made after the expiry of a period of seven years from the date
on which the offence mentioned in such a complaint is alleged to have been
committed.
v) No civil court Jurisdiction :
Section 54 says that no civil court shall have jurisdiction with regard to any matter
for which the Lokpal is empowered to decide the Lokpal Act.

13.7 Conclusion
The Institution of Lokpal has tried to bring a much needed change in the battle against
corruption in the administrative structure of India, but at the same time, there are Loopholes
and Lacunae which need to be corrected. Lokpal is not free from political influence as
the appointing committee itself consist of members from political parties. The appointment
of Lokpal can be manipulated in a way as there is no criterion to decide who is an 'eminent
Turist' or 'a person of integrity'. The biggest lacuna is the exclusion of judiciary from the
ambit of the Lokpal. The Lokpal is not given any constitutional backing and there is no
adequate provision for appeal against the Lokpal.
In order to tackle the problem of corruption, the institution of the ombudsman should
be strengthened both in terms of functional autonomy and availability of manpower. Lokpal
appointment must be done transparently so as to minimize the chance of the wrong sorts
of people getting in.

13.8 Summing up
l The basic idea of a Lokpal Bill is to tackle corruption at the higher echelons of
power to create a just and honest work culture.
l The idea is borrowed from the office of ombudsman in Scandinavian countries,
where an ombudsman is a person who acts as a trusted intermediary between an organization
and some internal or external constituency while representing not only but mostly, the broad
scape of constituent interests.
l The bill's supporters consider existing laws too weak, full of contradictions and
insufficiently empowered to combat corruption. On the other hand critics of the Jan Lokpal
Bill argue that the bill attempts to supercede existing constitutional bodies and attempts to
create a super-institution with sweeping powers, which can be dangerous for the future of
democracy.
122 NSOU l CC-PS-9

13.9 Probable Questions

Essay Type Questions
1) What is Lokpal and what is its importance?
2) Discuss the for Lokpal Bill in present Democratic System in India.
3) Discuss the advantages of Lokpal Act.
4) What are the short commings of Lokpal Act?
5) What are the main powers and functions of the Lokpal?
Short Questions
1) What is Lokpal?
2) What is the importance of Lokpal?
3) Discuss the composition of Lokpal.
Objective Questions
1) In which year was Lokpal and Lokayukta bill passed?
2) Who coined the term ‘Lokpal’?
3) Who appoints the Chairman and other members of Lokpal?
4) What is the full form of CBI?
5) In which year was Prevention of Corruption Act passed?

13.10 Further Reading

1. Justice P. S. Narayana - The Lokpal and Lokayuktas Act.
2. M. V. Kamath and Gyatri Pagai - Corruption and the Lokpal Bill.
3. S. H. Patil, The Constitution, Government and Politics in India - Vikas Publishing
House Pv. Ltd.
Unit 14 o Citizens' Charters
Structure
14.1 Objective
14.2 Introduction
14.3 The Citizens' Charters
14.4 Importance of Citizens' Charters
14.5 Conclusion
14.6 Summing up
14.7 Probable Questions
14.8 Further Reading

14.1 Objective
After studying this unit, the learners will be able to
l know the basic objective of Citizens' Charter.
l understand in any nation, there is a need of good governance for sustainable
development. The three major aspects highlighted in good governance are transparency,
accountability and responsiveness of the administration.
l know that citizens charter initiative is a response to the mission for solving the
problems which a citizen meets, day in and day out, while dealing with the organisations
providing public services.

14.2 Introduction
It has been recognised World over that good governance is essential for sustainable
development, both economic and social. The three essential aspects emphasised in good
governance are transparency, accountability and responsiveness of the administration.
Citizens' charters initiative is a response to the quest for solving the problems which a
citizen encounters day in and day out, while dealing with the organisations providing public
service.
The concept of Citizens\ charters enshrines the trust between the service provider and its
users. The concept was first articulated and implemented in the United Kingdom by the
124 NSOU l CC-PS-9

conservative Government of John Major in 1991 as a National Programme with a simple aim
to continuously improve the quality of public service for the people of the country so that these
services respond to the needs and wishes of the users. The programme was relaunched in 1998
by the Labour Government of Tony Blair which rechristened its services first.

14.3 The Citizens' Charters

The citizens’ Charter is an instrument which seeks to make an organisation transparent,
accountable and citizen friendly. The aim of Citizens’ Charter was to ensure that public
services made responsive to the Citizens' they serve a Citizens’ Charter is basically a set
of commitments made by an organization regarding the standards of service which it
delivers. It is a public statement that defines the entitlements of Citizens to a specific
service, the standards of the service, the conditions to be met by users, and the remedies
available to the latter in case of non-compliance of standards. The charter concept empowers
the Citizens in demanding committed standards of service. Thus, the basic thrust of the
charter is to make public services Citizen centric by ensuring that these services are
demand driven rather then supply driven.
Citizens’ Charter is a document which represents a systematic effort to focus on the
commitment of the organisation towards its Citizens in respect of standard of services
information choice and consultation, Non discrimination and accessibility, grievance redress,
courtesy and value for money. This also includes expectations of the organisation from the
citizen for fulfilling the commitment of the organisation.
The Citizens' Charter, when introduced in the early 1990s represented a landmark shift
in the delivery of public services. The emphasis of the citizens' charter is on citizens as
customers of public services. So far 111 central ministries / departments / organizations
have formulated Citizens' Charters in India.

14.4 Importance of Citizens' Charters

1) To make administration accountable and citizen friendly.
2) To ensure transparency.
3) To make measures to improve customer service.
4) To adopt a stakeholder approach.
5) To save time of both Administration and the Citizen.
NSOU l CC-PS-9 125

Department of Administrative Reforms and public grievances in Government of India

initiated the task of Co-ordinating, for meulating and operationalising Citizens\ Charters.
Guidelines for formulating the charters as well as a list of do's and don'ts were
communicated to various government departments, organisations to enable them to bring
out focused and effective charters.
For the formulation of the charters' the government agencies at the Central and State
levels were advised to constitute a taks force with representation form users, senior
management and the cutting edge staff.
Till April, 2006, 111 Citizens' Charters had been articulated by the Central Government
Ministries/ Departments / Organisations and 668 Charters by various agencies of State
Governments and Administrations of Union Territories. Most of the National Charters are
posted on the Government's websites and are open to public scrutiny.
The Salient features of a Citizen's Charters are :
a) Standards : The Charter should layout explicit standards of service delivery so that
users understand what they can reasonably expect from service providers. These
standards should be time bound, relevant, accurate measurable and specific.
b) Information and Openness: A key attribute of good service is the availability of
relevant and concise information to the users at the right time and at the right place.
The Charters should contain, in plain language, full and accurate information about
services available, available channels for grievance redressal etc. Handbooks,
Guides, Posters, Websites are some of the channels through which information can
be provided to Citizens.
c) Choice and Consultation : The Charter should provide choice of services to users
wherever practicable. There should be regular and systematic consultation with
the users of the service to fix service standards and to ascertain quality of service
delivery.
e) Courtesy and helpfulness : The Charter can help embed a culture of courtesy and
helpful service from public servants. In addition, small initiatives such as 'name
badges', 'May I help you", counters etc. can go a long way in building customer
confidence.
d) Grievance Redressal and Complaints Handling : There is a strong link between the
provision of quality service and effective handling of complaints. firstly, by facilitation
and responding to complaints, the causes for complaint can be reduce. Secondly,
by identifying trends in complaints the service provider can resolve systemic and
recurring problems.
126 NSOU l CC-PS-9

Deficiencies in the Existing Citizens, Charters :

1|) Lack of awareness and knowledge and inadequate publicity, hence loss of trust
among service seekers.
2) No training to the operative and supervisory staff.
3) Lock of infrastructure and initiative.
4) Hierarchy gap between the officers and the operative staff need of team effort.
5) Different mind sets of officers and the staff insensitiveness on the part of the
supervisors and the staff because they are yet to be sensitized.
6) Staff is not prepared to shoulder the responsibility due to lack of motivation and
accountability.
7) Non-revision, complicated and restrictive rules and procedures.

14.5 Conclusion
Thus, Citizens' Charter is an essential tool to ensure that the Citizen is always the
priority of any service delivery mechanism. It indirectly strengthens the protection of
fundamental rights by making those rights more visible and more explicit for citizen through
it s provisions of course much more room for improvement is still there.

14.6 Summing up
l A Citizens' Charter denotes the promise of an organisation towards standard,
quality and time frame of service delivery, grievance redressal mechanism, clearness and
accountability.
l Based on the foreseen expectations and aspirations of public, Citizens' Charters are
to be drawn up with care and concern for the concerned service users.
l They allow the service seekers to avail the services of the government departments
with minimum inconvenience and maximum speed.

14.7 Probable Questions

Essay Type Questions
1) What is Citizens’ Charter? Why is the Citizens’ Charter important?
2) Discuss the features and challenges of Citizens' Charter.
NSOU l CC-PS-9 127

3) What are the significance of Citizens’ Charter? What are its limitations?
Short Type Questions
1) What is Citizens’ Charter?
2) What are the main limitations of Citizens’ Charter?
3) What is the objective of Citizens’ Charter?
4) Why is Citizens’ Charter important?
5) What are the Six Principles of Citizens’ Charter?
6) Is Citizen Charter legally enforceable?
Objective Questions
1) In which country was the concept of Citizens’ Charter first implemented?
2) Is there any Act regarding Citizens’ Charter in India?
3) In which year was Citizens’ Bill brought in Parliament?
4) Which administrative Reform Commission pointed out the flaws in the Citizens’
Charter in India?
5) Who wrote the book, “Public Administration in a Globalizing World- Theories and
Practices”?

14.8 Further Reading

1. Bidyut Chakrabarty and Prakash Chand, Public Administration in a Globalizing
world - Theories and Practices - Sage Publication.
2. IGNOU, Citizen and Administration, Administration Theory, New Delhi, IGNOU
3. Bhuttacharya, Mohit - 2008, New Horizons of Public Administration, New Delhi,
Jawahar Publishers and Distributors.
Unit 15 o E-Governance
Structure
15.1 Objective
15.2 Introduction
15.3 E-Governance
15.4 Initiatives Taken for E-Governance in India
15.5 Benefits or Outcomes of E-Governance
15.6 Challenges to E-Governmence
15.7 Conclusion
15.8 Summing up
15.9 Probable Questions
15.10 Further Reading

15.1 Objective
After studying this unit, the learners will be able to
l understand what is better service delivery to Citizens.
l have an idea about transparency and accountability in service delivery
l understand how to empower people through information.
l know how efficiency is ensured within Government.
l know how to improve interface between business and industry.

15.2 Introduction
e-Governance is in essence, the application of Information and Communication
Technology to government functioning in order to create 'Simple, Moral, Accountable,
Responsive and Transparent (SMART) governance. In its report on e-governance the
Second Administrative Reforms Commission (ARC) has tried to analyses the success and
failures of e-Goverance initiatives in India and at the global level, in order to extrapolate
the best practices, key reform principles and recommendations that can help the government
to implement a new paradigm of governance in the Country. This new paradigm would
NSOU l CC-PS-9 129

focus on the use of Information Technology to being public services to the doorsteps of
our Citizens and business on the basis of revolutionary changes in our institutional structures,
procedures and practices that would transform the relationships between our three Levels
of Government, our business and our Citizens.
The revolution in Information and Communications Technology (ICT) has brought a
whole new agenda for governance into the realm of possibility. e-Governance comprises
decisional processes and the use of ICT for wider participation of citizens in public affairs.
Citizens are participants in e-governance. The Purpose of implementing e-governance is
to improve governance processes and outcomes with a view to improving the delivery of
public services to citizens.

15.3 E-Governance
E-Governance originated India during the 1970s with a focus on in-house government
applications in the areas of defense, economic -monitoring, planning and development of
ICT to manage data intensive functions related to elections, census Tax administration etc.
Initial Steps Taken :
The establishment of the Development of Electronics in 11970 was the first major step
toward e-governance in India as it brought information and its communication to focus.
National Informatic Centre (NIC) established in 1977, launched the District Information
System Program of Computerize all district offices in the Country. The main thrust for e-
governance was provided by teh launching of NICNET in 1987 - the National Satellite
based Computer Network.
Different Connotations of e-Governance
e-Administration : The use of ICTs to modernize the State, the Creation of data
repositories for Management Information System (MIS) and computerization of records
(Land, Health etc.)
e-Services : The emphasis here is to bring the state closer to the Citizens. For example,
provision of online services.
e-Administration and e-Services together constitute what is largely termed as e-
government.
e-Governance : The use of It to improve the ability of the government to address the
needs of Society. It includes the publishing of policy and program related information to
transact with citizens.
130 NSOU l CC-PS-9

It extends beyond the provision of online services and covers the use of it for strategic
planning and reaching the development goals of the government.
e-Democracy : The use of it to facilitate the ability of all sections of society to participate
in the governance of the State.
Emphases is on bringing transparency, accountability and participation of people. It
includes online disclosures of policies, online grievance redressal, e-referendums etc.

15.4 Initiatives Taken for E-Governance in India

Program
i) Bhoomi Project (Karnataka) online Delivery of Land Records.
ii) Khajane (Karnataka) End to end automation of Government Treasury system.
iii) e-Seva (Andhrpradesh) designed to provide government services to citizens.
iv) e-Courts - aims at utilization technology for improved provisioning of judicial
services to Citizens.
v) e-District
vi) e-Office etc.

15.5 Benefits or Outcomes of E-Governance

The ICT based e-governance has ushered in a new era in government innovations with
capacities to
a) Reduce the cost of the government,
b) increase citizens' input into government.
c) improve public decision - making and
d) increase the transparency of government transactions. The object of e-
governance is to arm the Citizens to act as watch to government' in view of these
well-defined functional characteristics, the governance is also a very meaningful step
towards combating corruption. By reducing discretionary powers it curbs opportunities
for arbitrary action. It also empowers the Citizens by making their intervention in the
transactions of governmental business regular through ICT. The project e-Sewa (Service
that began in West Godavari District of Andhrapradesh). India is a good example to
cite here. The project is a tool 'to bridge the digital divide in the rural areas' through
NSOU l CC-PS-9 131

extensive use of information technology ' for providing access to various citizen to
Citizen and Citizen to government services to the people in rural areas'. Managed by
a women's self help group, the project is a class by itself as it enables 'the local
women - participants' to emerge as; infromation leaders, who remain critical in realizing
the goal of e-sewa (Chakraborty and Bhattacharya 2008 : 53)

15.6 Challenges to E-Governmence

l Infrastructure : Lack of basic infrastructural facilities like electricity, internet etc.
l Initiatives like Bharat Net and Saubhagya are steps taken in this regard.
Cost : e-Governance measures are costly affairs and require huge public expenditure. In
developing countries like India, the cost of projects is one of the major impediments in the
implementation of e-gavenance.
Privacy and Security : Recent spark in data leak cases has threatened the peoples’ faith
in e-governance. Therefore, the implementation of e-governance projects must have security
standards and protocols for safeguarding the interest of all classes of masses.
Digital Divide : Huge gap between users and non-users of e-governance cases. The digital
divide takes form in rich-poor. male-femal, urban-rural etc. segments of the population.
The gap needs to be narrowed down, them only the benefits of e-governance would be
utilized equally.
Suggestions
A hybrid approach needs to be adopted for enhance interoperability among e-
governance applications which will encompass a centralized approach for document
management, knowledge management, file mangement, grievance management etc. The
e-governance initiatives in rural areas should be taken identifying and analyzing the
grassroots realities.
The government should also focus on devising appropriate feasible distinet and effective
capacity building mechanisms for various stakeholders viz - bureaucracy, rural masses
urban masses, elected representatives etc.
Cloud computing is also becoming a big force to enhance the delivery of services related
to e-governance. Cloud computing is not only a tool for cost reduction but also helps in
enabling new services improving the education system and creating new jobs / opportunities.
e-governance through regional languages, is appreciable for the nations like India where
people from several linguistic backgrounds are the participants.
132 NSOU l CC-PS-9

15.7 Conclusion
E-governance is getting momentum in India, but public awareness and the digital divide
are important issues to be addressed.
The success of e-governance measures largely depends on the availability of high-
speed internet and the nation-wide roll out of 5G technology in the near future will strengthen
our resolve.

15.8 Summing up
l E-governane is about a process of reform in the way governments work sharing
information and delivering services to internal and external clients. Specifically e-government
harnesses information and communication technologies such as the internet the web, and
mobile phones to deliver information and services to citizens and bussinesses.
l E-governance thus provides citizens the ability to obtain government services through
electronic means, enabling access to government information and completion of government
transactions on and any where anytime basis.
l The idea is simply to create the capability for providing citizen's access to government
departments through electronic networks. Thus, through E-govrnance, the aim of SMART
governance is achieved.

15.9 Probable Questions

Essay Type Questions
1) What are the main objectives of E-governance? Discuss the importance of
E-goverance.
2) Discuss the significance of E-governance.
3) Discuss the main challenges of E-governance.
4) What is the difference between E-government and E-governance?
5) Why is E-governance important?
Short Questions
1) What is E-governance?
2) What are the four pillars of E-governance?
3) When did E-governance start?
4) What are the advantages of E-governance?
NSOU l CC-PS-9 133

5) Discuss some models of E-governance.

Objective Questions
1) What is full form of ‘SMART’?
2) What is mean by ‘e’ in e-Government?
3) What is full form of ICT?
4) When did E-Governance originate in India?
5) In which year was National Informatics Centre (NIC) established in India?

15.10 Further Reading

1. https:/en Wikipendia.org/wiki/e-governance
2. Meghashyam A. Srinivas - e-governance Issues and Challenges.
3. Bidyut Chakraborty and Prakash Chand, SAGE, Public Administration in a
Globalizing World
134 NSOU l CC-PS-9
MODULE – 2
52 NSOU l CC-PS-9
Unit 6 o Concept and Significance of Budget

Structure
6.1 Objective
6.2 Introduction
6.3 Meaning of Budget
6.4 Definitions of Budget
6.5 Features of Budget
6.6 Significance of Budget
6.7 Conclusion
6.8 Summing up
6.9 Probable Questions
6.10 Further Reading

6.1 Objective
After studying this unit, the learners will be able to
l understand the concept of budget
l understand the importance of budget
l understand the significance and different features of budget
l understand the financial position of the government

6.2 Introduction
The Annual Financial Statement or the Statement of the Estimated Receipts and
Expenditure of the Government of India in respect of each financial year is popularly known
as the Budget.
The word ‘budget’ sprung up in Latin America. It was derived from the word ‘bulga’
which means a little pouch or knapsack. This is believed to have gotten its existence from
a Gaulish source that’s connected to the Irish bolg, that is, ‘bag’. This was introduced in
the English language in the fifteen century after it was shortened from bougette to bouge
in French. It just meant a pouch, wallet or a bag in English at first.
54 NSOU l CC-PS-9

Towards the last quarter of the sixteenth century, it came to mean the subject matter
of a budget as well as any object that can be used to hold things. Masses began using this
word not in a literal way but as bulk news, or a spun out letter full of news and the word
got included in several inoperative British newspapers, such as the ‘Pall Mall Budget’. The
association of the word budget with finance became apparent in 1733, as a consequence
of a pamphlet entitled, “‘The Budget Opened’ an attack directed at Sir Robert Walpole”.
‘The budget is opened...’ meaning that the government minister-in-charge of arranging the
finances of the nation had opened his budget or wallet to reveal his financial proposals. It
may have also meant ‘to speak one’s mind’.
The term first came into use in England in about 1760. The word ‘budget’ came to
mean what it means today only in 1880s. In the UK, the Chancellor of the Exchequer
usually in April, lays before the House of Commons a statement of the actual results of
receipts and expenditure in the preceding fiscal year. This statement would highlight the
extent of the actualization of these estimates and on the other hand, if there has been deficit
or surplus finally.

6.3 Meaning of Budget

A budget is a statement of a fiscal blueprint. It states the estimated revenue and
expenditure for a given length of time. A budget indicates its goal through its projections.
It is instrumental in assessing performance and achieving its pre-set aims. It has been
observed all over the world that a budget is generally prepared by the executive and gets
it ratified by the Legislature.

6.4 Definitions of Budget

Henry Higgs
It is an approximate calculation of the revenues and expenditure of the given financial year.
H.F. Willoughby
Budget, if merely an estimate, would not be the master problem of Public Administration.
Thomas D. Lynch
The one common subject in any budget discussion is money. Other subjects are important
but they are mentioned in relationship to money or are translated into money.
Leroy Beaulieu
A budget is a statement of the estimated receipts and expenses during a fixed period, it is
a comparative table giving the amounts of the receipts to be realized and of the expenses
NSOU l CC-PS-9 55

and to collect the revenues. It means a budget consists of an analysis of sums of money
as revenue to be collected in future for a fixed period of time and on the other hand the
expected expenditure for the same period.
Rene Stourm
Budget is a document containing a preliminary approved plan of public revenues and
expenditures.
G. Jeze
Budget is a forecast and an estimate of all the public receipts and expenses and for certain
expenses and receipts, an authorization to incur them and to collect them.
Harold R. Bruce
Budget is a financial statement, prepared in advance of the opening of a fiscal year, of the
estimated revenues and proposed expenditures of a given organization for the assuming
fiscal year.
Dimock
A budget is a financial plan summarizing the financial experience of the past, stating a
current plan and projecting it over a specified period of time in future. Dimock has termed
budget as a financial plan, which states an abridged version of the past performance,
present plan, and future plan for a fixed period.
Wildavsky
A budget may serve diverse purposes and can be a political act, a plan of work, a
prediction, a source of enlightenment, a means of complication, a mechanism of control, an
escape from restrictions, a means to action, a brake on progress, even a prayer that the
powers that he will deal gently with the best aspirations of fallible men.
A.E. Buck
He speaks of three vital essentials in a budget: (i) a fiscal plan (ii) a process for formulating,
authorizing, executing and controlling the plan, and (iii) some law-making authority responsible
for each consecutive condition in this process.
The French Public Accounting Law
The budget is a document which forecasts and authorizes the annual receipts and expenditures
of the State and of the other branches of service which by virtue of the law are subject
to the same rules and regulations. This means that a budget gives a futuristic plan, gives an
yearly receipt and expenditure of a state under a uniform code of law.
W.F. Willoughby
W.F. Willoughby criticised most of these definitions because of the following two
56 NSOU l CC-PS-9

reasons: They do not mention that the budget should contain facts regarding past operations,
present conditions as well as proposals for the future. They do not distinguish between the
Budget and Revenue Act and Appropriation Act, representing as the Acts of the Legislature.
According to W.F. Willoughby, ‘The budget is something much more than a mere estimate
of revenue and expenditures. It is or should be at once a report, an estimate and a
proposal. It is, or should be, a document through which the Chief Executive comes before
the fund-raising and fund-granting authority and makes full report regarding the manner in
which he or his subordinates have administrated affairs during the last completed year. He
exhibits the present condition of treasury and on the basis of such information sets forth his
programme of work for the year to come and the manner in which he proposes that such
work should be financed’. He stated that a budget comprises of three components: A
declaration of amount of money needed to carry out governmental activities during a
specific period of time to which such estimate is concerned; A declaration of tentative
income from estimated receipts of the expected income from receipts and loans based on
the present laws with respect to dues to be recovered from public and credit procedures.
A declaration indicating status of treasury in terms of assets and liabilities. These components
are then integrated into a simple document showing the relationship between the current as
well as the estimated revenue and expenditure and the receipts and disbursements. Budgeting,
therefore, involves the following: preparation of the estimates; collection and custody of
funds; disbursements and control of expenditure and recording of all the transactions whose
lawfulness and regularity are duly checked and reported to the Legislature by an independent
audit.

6.5 Features of a Budget

Aaron Wildavsky says budgeting is translating financial resources into human purposes.
Behind currencies stand human limitations. Unless nations possess an alchemist’s stone for
turning base metals into gold, resources are limited but human desires are not. Hence, some
way must be found to apportion available funds among competing people and purposes.
Behind every government budget—which necessarily takes revenues from some citizens
and distributes them to others—lies conflict. Given the infinite variety of human desires, the
budget of a government can never be just one thing, it must be many.
A budget is a record of the past. Victories, defeats, bargains, and compromises over
past allocations are reflected in the items included and, by inference, those left out. A
budget is also a statement of the future; it links proposed expenditures with desirable future
events. Budget, therefore, must be plans; they try to determine future state of affairs through
a series of current actions. Hence, budgets also are predictions; they specify connections
NSOU l CC-PS-9 57

between words and numbers on the budget documents and future human behaviour.
After going through the meaning and various definitions of budget, characteristics of a
budget can be summarized as follows:
1. Systematic Plan: Since budget is a plan or a programme, framed on the basis of
previous fiscal years’ experience, it must be systematic and organized, ready for
execution. This financial plan must also consider the economic, political or the
social policy of the government of the country in question.
2. Scheme for Action: The budget, in almost all countries gets presented by the
executive government and passed by the legislative government. Unless the budget
is passed, the budget proposal is meaningless as the proposals are, in truth, schemes
for action. Suppose it is proposed in the budget to have a 1000 crore project to
open primary schools in rural areas, the proposal will not gain credence and the
scheme shall fail unless this proposal is sanctioned by the legislative part of the
government.
3. Gap between Estimates and Actual: When a budget proposal is presented,
there is usually a lot of gaps between the estimates and actuals of expenditure.
Accuracy, therefore, must be achieved to lessen this gap otherwise the relevance
of estimates will be meaningless.
4. Annual Plan: Mostly, budget is an annual plan, although, sometimes it extends
over a year. As A.E. Buck explains that the time period of one year is just right
for precise estimation and on the other hand, it will not take up excessive
parliamentary session in the consideration of the budget.
5. Parliamentary Section: In a parliamentary democracy, the budget is put before
the Legislature for legislative action.
6. Comprehensive Plan of Action: According to P.J.J. Pinto comprehensiveness
means that the budget is a consolidated statement expressing fiscal needs of the
government of income or expenditure connected to the past experience or the
present problems or the future estimates. As given in the Encyclopedia of the
Social Sciences, ‘The most important feature of a budget is comprehensiveness. It
must assemble, in one consolidated statement, all facts, regarding:
l expenditures and revenues, past and prospective;
l the actual financial condition of the treasury and the condition of the treasury
as it will be if the proposals contained in the budget are put into execution;
l must be presented by means of balanced statements, so that the relations
between past action and proposals for the future, between revenues and
58 NSOU l CC-PS-9

expenditures and between resources and obligations may be clearly seen.

Thus, the budget presents the whole problem of financing the government at
one time and focuses Legislative attention on the relation of the total expenditure
needs to the total prospective revenues.
7. Budget Presented by the Executive: Usually the budget is prepared and
presented by the executive government. No private member can present a budget
in the Legislature.

6.6 Significance of Budget

In all democratic countries, the budget has been a dominant policy document. It is not
only the main instrument for implementing government activities but also used extensively
to regulate and influence economic and social activities in the private sector of mixed
economies. A budget is a work plan and an evaluation tool that gives direction to the
implementation of public policies and programmes. Hence is the need of budget to carry
out multifarious activities of the government. Budget is the vital aspect of financial administration
and since it operates within the limits of legislative authorization, the executive is responsible
for legal and financial accountability to the legislature. Admittedly budget has commanded
a dominant position in the scheme of governance. The budget system today not only
provides the legislature to have an over-all control over the revenue collected and expenditure
incurred by the executive, but it also becomes an important means for evaluating the
progress of various government projects and schemes A budget gives the direction in which
government intends to go in the near future, usually in the next fiscal year. Emphasizing the
need and importance of budget, Bridges (1964) says, “Whatever else a Government may
or may not do, one thing it cannot avoid doing each year if it is to continue to exist, and
that is to obtain the authority of Parliament to raise revenue to meet expenditure which is
done by the Budget and the accompanying Finance Bill”. Recognizing the important place
of budgeting in administration, a Study Group of the Royal Institute of Public Administration
(1959) observes: “In all organizations, however, budgeting can assist management at every
level in several ways. In the first place, it helps in making reviewing policy, by encouraging
comprehensive forward-looking planning and decision making and providing both the
information and the occasions for regular reviews of plans and prospects for the future.
Secondly, it supplies yardsticks against which the actual results can be judged, thus helping
to assess their significance and results can be judged, thus helping to assess their significance
and decide what action may be called for in consequence. A budget can be used in both
these ways, whether it relates to income and expenditure on revenue account, capital
expenditure, or finance and cash transactions”. In brief, budget has acquired great dimension
NSOU l CC-PS-9 59

not only from the constitutional point of view to assert legislative control over executive,
but also administratively it has become an important aid to management, both for policy-
making and for keeping check on its execution. Indeed, it is the heart of administrative
management. It also serves as a powerful tool of coordination, and negatively, an effective
device of eliminating wasteful financial expenditure.

6.7 Conclusion
A public sector budget is used as an instrument to allocate public resources toward
achieving some public value. Each government wants to undertake several economic and
non-economic activities and pursue certain policies which have their financial counterparts
as receipts. A budget includes financial accounts of the preceding year and the budget
estimates for the forth coming year. In addition, the estimates for the forthcoming years are
split up into two parts, those based on assumption that existing taxes and their rates would
continue and those based upon the proposed changes in them. The word ‘budget’ is
frequently used in books of Financial Administration but there is no general agreement
regarding its exact significance. As the government’s share of the total economy grows, the
voter holds elected representatives responsible for overall budget, the budget deficit and
the general performance of the economy. Government functions, policies and programmes
will fail and carry no meaning without adequate budgetary provision. And the basis for
government budget is public finance, or revenues raised by government which are then
allocated to fund public policies and programmes. A general or special fund, therefore,
comes from the public budget which is composed of revenues raised by government
through its taxation rate (goods and services) and borrowing decisions. The principal
justification for this arrangement is that funds allocated through budget for specified
government functions and policies, which are so vital that they must be protected by law
from political vagaries.

6.8 Summing up
l A budget is a statement of a fiscal blueprint. It states the estimated revenue and
expenditure for a given length of time. A budget indicates its goal through its
projections. It is instrumental in assessing performance and achieving its pre-set
aims.
l It has been observed all over the world that a budget is generally prepared by the
executive and gets it ratified by the Legislature.
l Budget is used as an instrument to allocate public resources toward achieving some
60 NSOU l CC-PS-9

public value.
l A budget is a work plan and an evaluation tool that gives direction to the
implementation of public policies and programmes.
l Budgeting is translating financial resources into human purposes.
l Budget must be plans; they try to determine future state of affairs through a series
of current actions.
l The budget system today not only provides the legislature to have an over-all
control over the revenue collected and expenditure incurred by the executive, but
it also becomes an important means for evaluating the progress of various government
projects and schemes. A budget gives the direction in which government intends to
go in the near future.

6.9 Probable Questions

Essay Type Question:
1. What is public budgeting?
2. Discuss the significance and role of budget.
3 What are the important characteristics of budget?
Short Questions
1. Mention now advantages of budget.
2. What is public budgeting in India?
3. Analyze the objectives of budget.
Objective Questions
1. In which country did the term ‘Budget’ come into use first?
2. “Budget, if merely an estimate, would not be the master problem of Public
Administration”-Who said?
3. Who can present the budget in parlament?
4. Who is the author of the book, “The Financial System of India”?
5. Which organ of the goverment is required to approve of the budget in a parliamentary
democracy?
NSOU l CC-PS-9 61

6.10 Further Reading

1. Chand, Gyan, The Financial System of India, Routledge Publishers, London, 1926.
2. Appleby, Paul H., Re-examination of India’s Administrative System, New Delhi,
Manager of Publications, Government of India, 1956.
3. Mahajan, Sanjeev Kumar; Mahajan, Anupama, Financial Administration in India,
PHI Learning Private Limited, Delhi, 2021
4. Goel, S.L., Public Financial Administration, Deep & Deep Publications, New
Delhi, 2002
5. Ganguly, S.P., Fundamental of Government Budgeting in India, Concept Publishing
Co; 3rd Revised edition, 2000
Unit 7 o Budget Cycle in India
Structure
7.1 Objective
7.2 Introduction
7.3 Presentation of Budget
7.4 Distribution of Budget Papers
7.5 Discussion on the Budget
7.6 Discussion on Demands for Grants
7.7 Cut Motions and its Objectives
7.8 Appropriation Bill
7.9 Finance Bill
7.10 Conclusion
7.11 Summing up
7.12 Probable Questions
7.13 Further Reading

7.1 Objective
After studying this unit, the learners will be able to
l understand the process of budgeting in India
l explain the preparation of budget
l understand budgetary control systems
l understand the role of parliament and executive in the preparation, enactment and
execution of budget

7.2 Introduction
Every year the Department of Economic Affairs in the Ministry of Finance prepares the
Union Budget which is presented by the Finance Minister. The Union Budget is an annual
financial statement which encapsulates the estimated earnings from revenues and estimated
NSOU l CC-PS-9 63

expenditures of the government during a particular fiscal year. It establishes a financial

roadmap for the country in the ensuing financial year. There are several steps involved in
the preparation, presentation and implementation of the the Union Budget. Here are five
essential steps involved in the development of the Union Budget: The initial processes,
Accumulation and Authorization of data, Composing the Budget, Printing the Budget and
Presenting the Budget.

7.3 Presentation of Budget

Till 2016, the Budget was presented to Lok Sabha in two parts, namely, the Railway
Budget pertaining to Railway Finance and the General Budget which gave an overall picture
of the financial position of the Government of India, excluding the Railways. Since the year
2017-18, with the merger of the Railway Budget with the General Budget, a single document
titled ‘Union Budget’ is presented by the Minister of Finance.
The Budget is presented to Lok Sabha on such day as the President may direct.
Immediately after the presentation of the Budget, the following three statements under the
Fiscal Responsibility and Budget Management Act, 2003 are also laid on the Table of Lok
Sabha: —(i) The Medium Term Fiscal Policy Statement; (ii) The Fiscal Policy Strategy
Statement; and (iii) The Macro Economic Framework Statement. In 2019, however, only
two statements, namely: (a) Medium Term Fiscal Policy cum Fiscal Policy Strategy Statement
and (b) Macro-Economic Framework Statement were laid. Simultaneously, a copy of the
Budget is laid on the Table of Rajya Sabha. In an election year, the Budget may be
presented twice—first to secure a Vote on Account for a few months and later in full.

7.4 Distribution of Budget Papers

The sets of Union Budget are distributed to members from several booths in the Inner
and Outer Lobbies arranged according to the Division Numbers of members. In case,
Division Numbers have not been allotted, these booths are arranged State-wise. The
budget papers are made available to members after the Finance Minister’s speech is over,
the Finance Bill has been introduced and the House has adjourned for the day.

7.5 Discussion on the Budget

No discussion on Budget takes place on the day it is presented to the House. Budgets
are discussed in two stages—the General Discussion followed by detailed discussion and
voting on the demands for grants.
64 NSOU l CC-PS-9

Allotment of Time for Discussion

The whole process of discussion and voting on the demands for grants and the
passage of the Appropriation and Finance Bills is to be completed within a specified
time. As a result, often the demands for grants relating to all the Ministries/Departments
cannot be discussed and demands of some Ministries get guillotined i.e. voted without
discussion. The Minister of Parliamentary Affairs, after the presentation of the Budget,
holds a meeting of leaders of Parties/ Groups in Lok Sabha for the selection of
Ministries/ Departments whose demands for grants might be discussed in the House.
On the basis of decisions arrived at this meeting, the Government forwards the proposal
for the consideration of the Business Advisory Committee. The Business Advisory
Committee after considering the proposal allots time and also recommends the order
in which the demands might be discussed. It is generally left to the Government to
make any change in the order of discussion.
After the allotment of time by the Business Advisory Committee, a time table
showing the dates on and order in which the demands for grants of various Ministries
would be taken up in the House is published in Bulletin-Part II for the information of
members.
General Discussion on the Budget
During the General Discussion, the House is at liberty to discuss the Budget as a whole
or any question of principles involved therein but no motion can be moved. A general
survey of administration is in order. The scope of discussion is confined to an examination
of the general scheme and structure of the Budget, whether the items of expenditure ought
to be increased or decreased, the policy of taxation as expressed in the Budget and in the
speech of the Finance Minister. The Finance Minister or the Railway Minister, as the case
may be, has the general right of reply at the end of the discussion.
Consideration of the Demands for Grants by Department-Related Standing
Committees of Parliament
With the creation of Departmentally Related Standing Committees of Parliament in
1993, the Demands for Grants of all the Ministries/Departments are required to be considered
by these Committees. After the General Discussion on the Budget is over, the House is
adjourned for a fixed period. During this period, the Demands for Grants of the Ministries/
Departments are considered by the Committees. These Committees are required to make
their reports to the House within specified period without asking for more time and make
separate report on the Demands for Grants of each Ministry.
NSOU l CC-PS-9 65

7.6 Discussion on Demands for Grants

The demands for grants are presented to Lok Sabha along with the Annual Financial
Statement.
These are not generally moved in the House by the Minister concerned. The demands
are assumed to have been moved and are proposed from the Chair to save the time of
the House. After the reports of the Standing Committees are presented to the House, the
House proceeds to the discussion and voting on Demands for Grants, Ministry-wise. The
scope of discussion at this stage is confined to a matter which is under the administrative
control of the Ministry and to each head of the demand as is put to the vote of the House.
It is open to members to disapprove a policy pursued by a particular Ministry or to suggest
measures for economy in the administration of that Ministry or to focus attention of the
Ministry to specific local grievances. At this stage, cut motions can be moved to reduce
any demand for grant but no amendments to a motion seeking to reduce any demand is
permissible.

7.7 Cut Motions and its Objectives

The motions to reduce the amounts of demands for grants are called ‘Cut Motions’.
The object of a cut motion is to draw the attention of the House to the matter specified
therein.
Cut Motions can be classified into three categories: —
(i) Disapproval of Policy Cut;
(ii) Economy Cut; and
(iii) Token Cut.
Disapproval of Policy Cut: A cut motion which says “That the amount of the demand
be reduced to Re. 1” implies that the mover disapproves of the policy underlying the
demand. The member giving notice of such a Cut Motion has to indicate in precise terms
the particulars of the policy which he proposes to discuss. Discussion is confined to the
specific point or points mentioned in the notice and it is open to the member to advocate
an alternative policy. Economy Cut: Where the object of the motion is to effect economy
in the expenditure, the form of the motion is “That the amount of the demand be reduced
by Rs.. (a specified amount)”. The amount suggested for reduction may be either a lump-
sum reduction in the demand or omission or reduction of an item in the demand.
66 NSOU l CC-PS-9

Token Cut: Where the object of the motion is to ventilate a specific grievance within
the sphere of responsibility of the Government of India, its form is: “That the amount of the
demand be reduced by Rs. 100”.
Discussion on such a cut motion is confined to the particular grievance specified in the
motion which is within the sphere of responsibility of the Government of India.
For the facility of members, printed forms for giving notices of cut motions are kept in
the Parliamentary Notice Office.
With effect from 18 July, 2016, Members can also table notices in electronic form
through e-portal specially developed for the purpose.
Notice period for tabling Cut Motions
The notices of cut motions can be tabled after the presentation of Union Budget.
The notices of cut motions tabled up to 1515 hours on a day are printed and circulated
before the day the relevant demands for grants to which they relate are to be taken up in
the House. The notices tabled after 1515 hours are deemed to have been tabled on the
next working day. These notices are printed and circulated on the next working day if the
cut motions to the demands for grants to which they relate have not been moved in the
House.
As cut motions are circulated to members both in English and Hindi simultaneously, the
Rules Committee (Fourth Lok Sabha) at its sitting held on 9 March, 1970 decided that
members might be requested to table such notices at least two days before the day they
are to be taken up in the House.
Accordingly, members should table the notice of cut motions at least two days before
the day the demands for grants to which they relate, are to be taken up in the House, but
in any case not later than 1515 hours on the previous day. Admissibility of Cut Motions—
Conditions of
A cut motion to be admissible should satisfy the following conditions: —
(1) It should relate to one demand only.
(2) It should be clearly expressed and should not contain arguments, inferences, ironical
expressions, imputations, epithets and defamatory statements.
(3) It should be confined to one specific matter which should be stated in precise
terms.
(4) It should not reflect on the character or conduct of any person whose conduct can
only be challenged on a substantive motion.
NSOU l CC-PS-9 67

(5) It should not make suggestions for the amendment or repeal of existing laws.
(6) It should not relate to a State subject or to matters which are not primarily the
concern of the Government of India.
(7) It should not relate to expenditure ‘Charged’ on the Consolidated Fund of India.
(8) It should not relate to a matter which is under adjudication by a court of law
having jurisdiction in any part of India.
(9) It should not raise a question of privilege.
(10) It should not revive discussion on a matter which has been discussed in the same
session and on which decision has been taken.
(11) It should not anticipate a matter which has been previously appointed for
consideration in the same session.
(12) It should not ordinarily seek to raise discussion on a matter pending before any
statutory tribunal or statutory authority performing any judicial or quasi-judicial
functions or any commission or court of enquiry appointed to enquire into, or
investigate any matter. However, the Speaker may in her/his discretion allow such
matter being raised in the House as is concerned with the procedure or stage of
enquiry, if the Speaker is satisfied that it is not likely to prejudice the consideration
of such matter by the statutory tribunal, statutory authority, commission or court
of enquiry.
(13) It should not relate to a trifling matter.
The Speaker decides whether a cut motion is or is not admissible and may disallow
any cut motion when in the opinion of the Speaker it is an abuse of the right of moving
cut motions or is calculated to obstruct or prejudicially affect the procedure of the House
or is in contravention of the Rules of Procedure of the House.
It is a well-established Parliamentary convention that cut motions seeking to discuss the
action of the Speaker or relating to Speaker’s Department or matters under the control of
Speaker are not allowed. Likewise, cut motions relating to the office of the Vice-President
(who is also ex-officio Chairman of Rajya Sabha) are not admissible. Cut motions relating
to matters under consideration of a Parliamentary Committee are not admissible. Cut
motions are not admissible if they ventilate personal grievances, or if they cast aspersions
on individual Government officials. Cut motions seeking to discuss a matter affecting relations
with a friendly foreign country or details of internal administration of an autonomous body
are out of order as also those which seek omission of a whole grant.
Token cuts seeking to discuss inadequacy of provision in respect of a particular demand
68 NSOU l CC-PS-9

are, however, in order. Normally members of ruling party do not table cut motions.
Circulation of Lists of Cut Motions
Lists of cut motions to the various demands for grants as admitted by the Speaker are
circulated to members generally two days in advance of the date on which the demands
for grants in respect of the Ministry are to be taken up in the House for discussion.
Moving of Cut Motions
At the commencement of the discussion on the demands for grants in respect of a
particular Ministry, members are asked by the Speaker to hand over at the Table, within
fifteen minutes, slips indicating the serial numbers of their cut motions that they would like
to move. The cut motions thus indicated are only treated as moved. Cut motions cannot
be moved at a later stage.
Cut motions cannot be moved by proxy. A member should be present in the House to
move cut motions when the relevant demands for grants are taken up.
Guillotine
On the last of the allotted days for the discussion and voting on demands for grants,
at the appointed time the Speaker puts every question necessary to dispose of all the
outstanding matters in connection with the demands for grants. This is known as guillotine.
The guillotine concludes the discussion on demands for grants.
Annual Reports, Outcome Budgets and Detailed Demands for Grants of the Ministries
In connection with discussion on demands for grants, copies of the Annual Reports and
Outcome Budget of the various Ministries and Departments are kept in the library for
perusal by members. Some copies are also kept at the Publications Counter. Detailed
demands for grants in respect of various Ministries/ Departments are laid on the Table of
Lok Sabha some time before the demands for grants are considered by the Departmentally
Related Standing Committees. Vote on Account
Prior to 2017, the Budget used to be presented on last working day of February.
Accordingly, the Parliament was not able to vote the entire budget before the commencement
of the new Financial year. Due to necessity to keep enough finance at the disposal of
Government in order to allow it to run the administration of the country Government
obtained vote on account from Parliament.
Normally, the vote on account was taken for two months for a sum equivalent to one-
sixth of the estimated expenditure for the entire year under various demands for grants.
Vote on Account was passed by Lok Sabha after the general discussion on the Budget
(General and Railway) was over and before the discussion on the demands for grants was
NSOU l CC-PS-9 69

taken up.
However, with the advancement of the date of presentation of Budget since 2017-18
to 1st February, the necessity to obtain vote on Account is no more required. The Demands
for Grants and the Appropriation Bill are passed well before the close of the Financial Year.
However, during an election year, the vote on account may be necessary and taken for
a longer period say, 3 to 4 months if it is anticipated that the main demands and the
Appropriation Bill will take longer than two months to be passed by the House. Supplementary
and Excess Demands for Grants
If the amount authorized to be expended for a particular service for the current financial
year is found to be insufficient for the purpose of that year or when a need has arisen during
the current financial year for supplementary or additional expenditure upon some ‘new
service’ not contemplated in the Budget for that year, the President causes to be laid before
both the Houses of Parliament another statement showing the estimated amount of that
expenditure.
If any money has been spent on any service during a financial year in excess of the
amount granted for the service for that year, the President causes to be presented to Lok
Sabha a demand for such excess. All cases involving such excesses are brought to the
notice of Parliament by the Comptroller and Auditor General through a report on the
Appropriation Accounts. The excesses are then examined by the Public Accounts Committee
which makes recommendations regarding their regularization in its report to the House.
The Supplementary Demands for Grants are presented to and passed by the House
before the end of the financial year while the demands for excess grants are made after the
expenditure has actually been incurred and after the financial year to which it relates has
expired.
Copies of the Books of Demands for Supplementary or Excess Grants, received from
the Ministry of Finance, are made available to members from the Publications Counter after
the presentation of such demands.
Procedure for Discussion
Supplementary and Excess Grants are regulated by the same procedure as is applicable
in the case of demands for grants of the main Budget subject to such adaptations, whether
by way of modification, addition or omission, as the Speaker deems necessary or expedient.
Scope of discussion on Supplementary/Excess Grants
The discussion on the Supplementary Demands for Grants is confined to the items
constituting the same and no discussion can be raised on the original grants nor on the
70 NSOU l CC-PS-9

policy underlying them. In respect of schemes already sanctioned in the main Budget, no
discussion on any question of principle or policy is allowed. As regards demands for which
no sanction has been obtained, the question of policy has to be confined to the items of
expenditure on which the vote of the House is sought. General grievances cannot be
ventilated during discussion on a Supplementary Grant. Member can only point out whether
the Supplementary Demand is necessary or not.
During discussion on Excess Demands for Grants members can point out how money
has been spent unnecessarily or that it ought not to have been spent; beyond this there is
no scope for general discussion or for ventilation of grievances.
Cut Motions to Supplementary/Excess Demands for Grants
The cut motions to Supplementary or Excess Demands for Grants must relate to the
subject matter of the Supplementary or Excess Demands. Cut motions which are extraneous
to the subject matter of such demands are out of order.

7.8 Appropriation Bill

After the demands for grants have been passed by the House, a Bill to provide for the
appropriation out of the Consolidated Fund of India of all moneys required to meet the
grants and the expenditure charged on the Consolidated Fund of India is introduced,
considered and passed. The introduction of such Bill cannot be opposed. The scope of
discussion is limited to matters of public importance or administrative policy implied in the
grants covered by the Bill and which have not already been raised during the discussion
on demands for grants. The Speaker may require members desiring to take part in the
discussion to give advance intimation of the specific points they intend to raise and may
withhold permission for raising such of the points as in the opinion of the Speaker appear
to be repetition of the matters discussed on a demand for grant. Such advance intimation
must be given before 1000 hours on the day the Appropriation Bill is to be taken into
consideration. No action is taken on intimations received after 1000 hours.
No amendment can be proposed to an Appropriation Bill which will have the effect of
varying the amount or altering the destination of any grant so made or of varying the amount
of any expenditure charged on the Consolidated Fund of India and the decision of the
Speaker as to whether such an amendment is admissible is final. An amendment to an
Appropriation Bill for omission of a demand voted by the House is out of order.
In other respects, the procedure in respect of an Appropriation Bill is the same as in
respect of other Money Bills.
NSOU l CC-PS-9 71

7.9 Finance Bill

“Finance Bill” means a Bill ordinarily introduced every year to give effect to the financial
proposals of the Government of India for the next following financial year and includes a
Bill to give effect to supplementary financial proposals for any period.
The Finance Bill is introduced immediately after the presentation of the Budget. The
introduction of the Bill cannot be opposed. The Appropriation Bills and Finance Bills may
be introduced without prior circulation of copies to members. The Finance Bill usually
contains a declaration under the Provisional Collection of Taxes Act, 1931, by which the
declared provisions of the Bill relating to imposition or increase in duties of customs or
excise come into force immediately on the expiry of the day on which the Bill is introduced.
In view of such provisions and the provision of Act of 1931, the Finance Bill has to be
passed by Parliament and assented to by the President before the expiry of the seventy-
fifth day after the day on which it was introduced.
As the Finance Bill contains taxation proposals, it is considered and passed by the Lok
Sabha only after the Demands for Grants have been voted and the total expenditure is
known. The scope of discussion on the Finance Bill is vast and members can discuss any
action of the Government of India. The whole administration comes under review.
The procedure in respect of Finance Bill is the same as in the case of other Money
Bills.
Budgets of Union territories and States under President’s Rule
Budgets of Union territories and States under President’s Rule are also presented to
Lok Sabha. The procedure with regard to the Budget of the Union Government is followed
in such cases with such variations or modifications, as the Speaker may make.
[The procedure for presentation of the Budget in and its passing by Lok Sabha is as
laid down in articles 112—117 of the Constitution of India, Rules 204—221 and 331-E
of the Rules of Procedure and Conduct of Business in Lok Sabha and Direction 19-B of
Directions by the Speaker.]

7.10 Conclusion
The Budget cycle comprises steps beginning in the run-up to the Budget and culminates
into its presentation. The preparation of the Budget involves the Ministry of Finance, along
with multiple bureaucrats. Before the Budget is prepared, expert advice is also taken from
economists and other stakeholders. The cycle includes the following steps — estimating the
72 NSOU l CC-PS-9

amount of expenditure and receipts, estimating the fiscal deficit, trying to narrow the fiscal
deficit, the presentation of the Budget, and getting the approval from Parliament. First,
plans of expenditure of various ministries are looked at. According to the resources available,
the amount is allocated for ongoing plans and new plans which can be taken up. Some non-
plan expenditure, such as subsidies and wage payments, is also taken into account. Next,
revenue payments in the form of capital and current receipts are estimated. Money from
disinvestment or repayment of government loans falls into the category of capital receipts.
Income from taxes, dividends from state-run companies, etc, fall under the category of
revenue receipts. After these amounts are estimated, expenditure and receipt under each
head are matched to see the shortfall, also known as deficit. This is deliberated upon and
the government then decides how much it shall borrow to be able to meet the same. The
government decides on the amount of borrowing after considering what amount of deficit
it would like to maintain. Then, the government presents the Budget, which comes into
effect on April 1, the beginning of a new financial year, after being approved by the Lok
Sabha and signed by the President. The Rajya Sabha can give comments on the same.

7.11 Summing up
l There are several steps involved in the preparation, presentation and
implementation of the Union Budget. Here are five essential steps involved in
the development of the Union Budget: The initial processes, Accumulation and
authorization of data, Composing the Budget, Printing the Budget and Presenting
the Budget.
l Before the Budget is prepared, expert advice is also taken from economists and
other stakeholders. The cycle includes the following steps — estimating the
amount of expenditure and receipts, estimating the fiscal deficit, trying to narrow
the fiscal deficit, the presentation of the Budget, and getting the approval from
Parliament.
l Once the budget is prepared, it has to pass through the following stages in the
Parliament a) presentation of the budget by the finance minister in both the houses
of Parliament, (b) general discussion on revenue and expenditure proposals, (c)
presentation of demands for grants, and (d) voting and passing of the Appropriation
and Finance Bills.
l Till 2016, the Budget was presented to Lok Sabha in two parts, namely, the
Railway Budget pertaining to Railway Finance and the General Budget which gave
an overall picture of the financial position of the Government of India, excluding the
NSOU l CC-PS-9 73

Railways. Since the year 2017-18, with the merger of the Railway Budget with the
General Budget, a single document titled ‘Union Budget’ is presented by the Minister
of Finance.

7.12 Probable Questions

Essay Type Question
1. Explain the entire budget cycles in India.
2. ‘Budget is the heart of management”. Comment
3. Discuss the issue of approval of parliament of the budget.
Short Questions
1. What is budget speech?
2. What is finance bill?
3. Write a short note on the preparation of budget.
Objective Questions
1. In which House of the Parliament is budget presented?
2. In which year was the Railway budget merged with the General budget?
3. What is the name of the motion which is aimed at reducing the amounts of
demands for grants?
4. Which article of the constitution deals with the money bill?
5. Who is the author of the book, “Government Budgeting in India”?

7.13 Further Reading

1. Henry, N. (2012). Public Administration and Public Affairs. New Delhi, India:
PHI.
2. Sury, M.M. 1997, Government Budgeting in India, Indian Tax Institute, Delhi.
3. Prasad, K. 2006, Indian Administration. New Delhi, India: Pearson.
4. Thavaraj, M.J.K. 2009, Financial Administration in India, Sultan Chand, New
Delhi
5. Chakrabarty, Bidyut, 2019, Indian Administration: Evolution and Practice, Sage
Publication
Unit 8 o Various Approaches of Budgeting

Structure
8.1 Objective
8.2 Introduction
8.3 Incremental Approach to Budgeting
8.4 Rational Approach to Budgeting (ZBB & PPBS)
8.5 Planning Programming and Budgeting System
8.6 Zero Based Budgeting
8.7 Performance Budgeting
8.8 Outcome-Based Budgeting
8.9 Futuristic Approach: E-Budgeting
8.10 Conclusion
8.11 Summing up
8.12 Probable Questions
8.13 Further Reading

8.1 Objective
After studying this unit, the learners will be able to
l highlight the important approaches to budgeting
l understand the incrementalist and the rationalist approach
l examine competing approaches as to how government resources should be allocated
l discuss the advantages and the limitations of competing approaches in budgetary
process

8.2 Introduction
The budget is not only a statement of income and expenditure but is a plan of action
for the year ahead that indicates programmes, activities etc. over time. The approach
towards budgeting in a traditional sense is changing with emphasis on performance. Some
NSOU l CC-PS-9 75

of them include incremental approach, rational approach (zero-based budgeting and planning
and programming budgeting system), futuristic approach E-budgeting, performance budgeting,
and outcome-based budgeting. We shall now be discussing the key features of these
approaches.

8.3 Incremental Approach to Budgeting

Charles Lindblom presented an incremental approach arguing for an examination of
decision making by “successive, limited comparison” (Lindblom, 1979). A number of
political scientists maintain that the budget is an interest-oriented process in which decisions
are made in the context of ‘who pays and who receives.’ The budget represents individual
preferences and conflicts. As such, the process for dealing with differing budgetary
preferences is not economic but political, according to Wildavsky (1992). Wildavsky
underscores the importance of budgetary incrementalism as a function of politics (1992),
arguing that only a small number of politically feasible alternatives are considered at any one
time, and in a democracy, these policies typically differ only in small increments from
previous year’s policies.
Succinctly defined, “incrementalism” is “a theory of the budgetary process proposing
that policy makers give only limited consideration to small parts of the budget and arrive
at decisions by making marginal adjustments in last year’s budget”. The point is that budget
as a whole is not considered; instead, participants make marginal changes on an already
existing base. Incremental budgeting ‘focuses upon the current year budget request with
emphasis on increases from the current year’ (Lynch, 1979).

8.4 Rational Approach to Budgeting (ZBB &PPBS)

One must also consider budgetary approach from the perspective of the economist.
The economic perspective is best captured by V. Lewis (1952), who adds a measure of
rationality with regard to cultivating a normative theory of budgeting. Regardless of individual
policy preferences as dictated by philosophy, economic principles must remain paramount,
and the closest application of this concept is zero-based budgeting (ZBB and PPBS).
Much like Lewis, Mikesell (1978) argues that the objective of the budget process is to
support public policies and projects where the value exceeds the costs. The budget process
should strive to identify and sustain worthwhile government activities, while minimising the
wasteful misallocation of scarce resources. For Brubaker (1997), the budgetary process
engenders a “common pool” of resources. He embraces a budgetary process that provides
a clear expression of public preference, produces net benefits for all, decreases opportunities
76 NSOU l CC-PS-9

for rent seeking, and allows people to participate directly. Brubaker advocates public
choice measures and incentives created by political institutions for participants in federal
budgetary decision making.

8.5 Planning Programming and Budgeting System

Planning Programming and Budgeting System (PPBS) is primarily a system to help
decision makers allocate resources. Planning refers to the definition of missions, goals and
objectives, the identification and evaluation of alternatives and the choices among the
alternatives. Programming refers to the link between planning and budgeting. It involves the
documentation of decision on resources required and outputs to be achieved, scheduled
over the years involved in the planning period and the accompanying information and
documentation systems.
Budgeting refers to the process of translating the decisions in the long-range-planning
format to the annual budget format with the more precise measures of inputs, price tags
and outputs, which are possible and necessary when one is looking only one year ahead.
This approach to budgeting emphasizes the important fact that planning, programming
and budgeting are inter-related to each other and together constitute a system. This implies
that budgeting cannot stand in isolation. The technique of performance budgeting attempts
to assess the effectiveness of each of the programme/activity with reference to output. It
therefore involves the development of more refined tools such as work measurement,
performance standards, unit cost, etc.

8.6 Zero Based Budgeting

Zero Based Budgeting (ZBB) requires that organizations, while preparing their budgets,
should not take earlier year’s expenditure for granted and therefore should start on a clean
slate. It implies that the activities of an organization should be viewed afresh and priorities
among competing claims for allocation of funds settled on the basis of justifications developed
by the use of evaluating techniques, like cost benefit analysis. ZBB aims at eliminating
redundant expenditure in organizations. To achieve this, it adopts four approaches.
The first objective, is the elimination of redundant expenditure, which is not serving any
clearly stated purpose in an organization.
Secondly, it attempts to identify and remove duplication of expenditure as over time the
same activity may be carried out by a number of agencies of the same organization.
NSOU l CC-PS-9 77

Thirdly, it involves searching for a better alternative (For instance solar equipment may
be a better alternative to an electric gadget) for incurring expenditure to achieve an established
objective.
The fourth objective, is to optimize expenditure by making it productive and efficient.
This requires application of performance budgeting.
The Government of India adopted ZBB approach with effect from the budget of 1978-
88. The Budget Division of the Ministry of Finance has been requesting the ministries /
departments, since the introduction of ZBB, through their budget circular every year for
adopting the principles of ZBB for expenditure estimates.
Steps involved in ZBB
The methodology employed in ZBB involves:
I. Identification of Decision Units
A decision unit is a distinct segment of an organization for which budget is prepared.
It can be a programme, scheme, project or an operation.
II. Formulation and Development of Decision Packages
According ZBB, the budget of a decision unit has to be prepared in terms of
decision packages, which contain the following:
l A description of the function or activity of the decision unit
l The goals and objectives of the various functions/ activities of the unit
l Benefits to be derived from financing the activity/programme
l Relevance of the activity/programme to the overall objectives of the organization/
department in the present context
l The consequences of its non-funding
l The projected/estimated cost of the package
l The yearly phasing of the proposed expenditure/project cost
l Alternative ways of performing the same activity or achieving the same
objectives.
III. Evaluating and ranking decision packages in order of priority
ZBB requires that the manager-in-charge of the decision unit should rank the
decision packages in order of priority. There are various methods followed in
ranking decision packages, such as judgement approach, committee system,
standardized formula, single criterion approach, etc. The available resources are
allocated among the various decision packages, according to prioritization
78 NSOU l CC-PS-9

established in terms of their ranking.

IV. Preparation of Budget by Allocating Resources to Activities or Decision
Packages by Utilizing Hierarchical Funding Cut-Off Levels
ZBB requires that the available fund should be allocated in accordance with the
ranking of decision packages as finally settled by the top decision unit in the
hierarchy of decision units. In a situation of resource crunch, i.e., if funds available
are not adequate to cover all the decision packages, a cut-off level is determined
and the decision-packages figuring above are financed and those falling below the
cut-off level are not allocated funds.
The cut-off level is moved upwards or downwards in the event of any revision in the
availability of funds.
Problems in the implementation of ZBB
A major factor contributing to the failure of ZBB has been too much paper work
involved in the process. Also the reviews and analysis required to be carried out could not
be handled within the normal cycle of budget process spread over a few months.
The second problem in the implementation of ZBB is the non-availability of trained
personnel fully aware of the concept, who can make an analysis of expenditure by applying
cost-benefit analysis and other techniques.
The third problem is redeployment of resources, like manpower, material, machinery
and equipment, which become surplus, when a scheme or activity is found redundant and
has therefore to be eliminated. Redeploying manpower is a very difficult and delicate issue.
In brief, ZBB is a useful system for exercising control over expenditure. Its utility can
hardly be overemphasized in a situation of resources crunch. Any progressive organization
would find it useful for ensuring effectiveness, efficiency and economy of expenditure.

8.7 Performance Budgeting

According to the concept of performance budgeting, the annual budget is in essence,
a work plan specifying the programme targets to be achieved by the agency concerned
during the financial year. It emphasizes the purposes for which funds are provided. It
correlates the physical and financial aspects of each programme and activity, by establishing
a proper relationship between outputs and the corresponding inputs.
The main purposes sought to be achieved by performance budgeting are to:
1. Establish a correlation of the physical and financial aspects of every programme and
NSOU l CC-PS-9 79

activity.
2. Improve budget formulation, review decision making at all levels of management in
government.
3. Facilitate better appreciation and review of legislature.
4. Make possible effective performance audit.
5. Measure progress towards long-term objectives as envisaged in the plan.
6. Integrate budgets and development plans.
Development of Performance Budgeting in India
In India, the Estimates Committee of Parliament made a suggestion in 1954 to introduce
performance budgeting on the basis of success of the operation of performance budgeting
in U.S.A. The Administrative Reforms Committee (ARC) in its report titled “Finance,
Accounts and Audit”, recommended to the government that starting with the 1969-70
budget, performance budgeting should be introduced in all departments and organizations
of the government, which are in direct charge of development programmes. The
recommendations of the ARC for the introduction of performance budgeting were accepted
by the Government of India which started introducing it gradually in more and more of its
developmental departments with the budget for 1969-70 onwards. The position by now
is that almost all the departments of Government of India prepare performance budgets
every year and submit them to parliament. On the recommendations of the central government,
all the state governments also prepare performance budgets for development departments
and submit the documents to the legislature.
Elements of Performance Budgeting
I. Formulation of objectives
Since the budget is an annual plan of action, it is necessary to spell out the
objectives in concrete and specific terms. The objectives should be formulated in
such a way that should help in evolving suitable programmes/activities.
II. Programme/activity classification
A functional classification of the budget is necessary under a system of performance
budgeting. By functional classification, it is meant that the budget presentation of
public expenditure will be in terms of functions, programmes, activities and projects.
III. Norms/ Standards
Performance budgeting establishes the correlation between the physical and financial
aspects of each programme and activity. It is therefore essential to set physical
80 NSOU l CC-PS-9

targets for accomplishment in respect of each programme/activity to enable working

of corresponding financial estimates for incorporation in the budget. Performance
budgeting envisages development of suitable work-measurement units, norms,
yardsticks and other performance indicators for measuring the physical quantum
of work to be done or services to be rendered. Appropriate norms and standards
supported by adequate data reduce subjectivity and increase objectivity in the
framing of budget estimates.
IV. Accounting Structure
In order to operationalize the scheme of performance budgeting, it is essential that
the concept is also built into the structure of accounts. It is necessary, therefore,
that the budget classification in terms of functions, programmes, activities and
projects is supported by a similar classification in accounts.
V. Decentralized Responsibility Structure
For the preparation of a performance budget, broad guidelines need to be framed
at the top level. These should include directions regarding the objectives to be
achieved and the resources availability. Within the framework of these guidelines,
detailed budget estimates are to be prepared at various responsibility levels and
coordinated upwards.
VI. Review of Performance
Measurement of actual performance both in physical and financial terms in relation
to the budgeted plan are an important aspect of a performance budget. When
information regarding physical accomplishments and finances is put together in
terms of various responsibility centres, for a period under consideration, a picture
of actual performance in terms of physical accomplishments and its related costs
would emerge. The actual performance from the accounting information system
can then be compared with the budgeted plan.
To conclude, performance budgeting is a management tool. This can be used in
government successfully if norms and standards are developed for all levels of
operations.

8.8 Outcome-Based Budgeting

In USA, a recent trend in government budgeting is to link the money spent on each
program to its return in terms of impact of each public policy. This type of budgeting links
budget with performance measurement system.
NSOU l CC-PS-9 81

For example, in Catawba country, North Carolina, local officials used this to enhance
their government’s system of service delivery. The country in the past few years had
experienced limited growth in revenues; yet during this time the call for human services
continued to rise. County leadership responded by handling decision making authority to
agency administrators challenging them to reduce costs while more effectively meeting
citizen demands. Those who achieved 90 per cent of their goals would be able to apply
their savings to unrestricted needs. Catawba county administrators embarked on a citizen-
driven, outcome-based system of budgeting to ensure that resources were targeted to meet
specific community goals. Over time, they not only saved money but also enhanced
government responsiveness (Denhardt and Grubb, 2003).

8.9 Futuristic Approach: E-Budgeting

E-budgeting may be defined as electronic or enterprise-wide budgeting—an application
that supports an institution’s functions and measures the success achieved in the performance
of a task. In simple words, e-budgeting presents a strategic advantage with the help of the
capability of the internet to let various establishments execute an enterprise wide budgeting
system, which can be reached from any location.
Working of E-Budgeting
E-budgeting programmes have the best utility and effect if they worked jointly with
financial systems such as General ledger. E-budgeting helps the functionaries to coordinate
data concerned with history, rationalize and legalize numbers. It makes an organization’s
budget and future predictions and estimates accurate and automatic. The functionaries can
access the budget from anywhere anytime with the help of internet. As applications are
connected with the internet, this online facility permits continuous updating and reshaping
of the budget.
Benefits of E-Budgeting
Given below are the few benefits of e-budgeting:
1. Flexibility: It furnishes flexibility to the functioning of the institute. The employees
can adapt to changes quite with the new software for budgeting. It has become
easier to adapt to any modification without entering the whole data again and again.
2. Eliminates Cumbersome Accounting Tasks: Budgeting usually requires a
continuous task of numbers by updating and doing reconciliation. Since it is quite
a cumbersome task if done manually, computerizing the existing data and updating
it helps in such repetitive tasks. The Finance Department gets more time to plan and
82 NSOU l CC-PS-9

strategize rather than waste their energies in paper-work.

3. Accessibility: E-budgeting facilitates spontaneous budgeting from anywhere since
all data is just a click away. Senior budget executives and officers get budget
related data in a moment via internet and do not have to look for it in papers. This
helps them to make alterations and modifications in the budget if required and other
parts and numbers get adjusted and updated automatically.
4. Citizen Participation: Budgetary proposals can be put on the web for voting of
citizens to decide by getting opinion polls. This would give immense power to the
citizens as well as advantage to the Chief Executive Officer or the Finance Minister,
(as the case may be) to formulate a budget.
5. Security: E-budgeting incorporates an automated ‘check-out/check-in’ process
that furnishes flexibility for functionaries and officials all over the country though it
keeps security for valued and confidential data. It also maintains a record of all
financial activities so that auditing may be done conveniently to have proper control.
6. Diversity: E-budgeting addresses diverse groups in the economy. Officials without
any knowledge can also use the e-budgeting procedures and benefit from it. There
are many kinds of web-based solutions and software being developed day in and
day out for corporate employees also.
7. Strategic Planning Tool: E-budgeting processes supports various kinds of budgets,
for example, capital, human resources and revenue with convenience and adaptability.
8. Contingency Planning: It facilitates ‘what-if’ problems. Disaster management can
be planned and tackled easily.
E-budgeting is rapidly becoming the norm all over the world.

8.10 Conclusion
Policy making is absolutely crucial to ensure proper execution and implementation of
the budget proposals of the government. The best of the budget proposals do not hold
merit if they do not have sound planning. A sound system has to be developed for budget
planning to achieve this target of implementation. Once the policy is structured with economy
as its pre-requisite, it requires little effort to control expenditure of the government during
the execution of the budget. It is imperative that good sound approaches of budgeting need
to be followed in budget preparation. The approaches of budgeting have evolved after its
natural development in a spontaneous rather than planned manner, empirically rather than
theoretically. Budgeting is an intricate and continuous process. The approaches discussed
NSOU l CC-PS-9 83

above are relevant and most commonly implemented, though there is no fixed system in
this. The point is to progressively improve adherence to these approaches.

8.11 Summing up
l The approaches of budgeting reflect the fact that development of a budget is not
only a political and managerial process but also has financial and technical dimensions.
l The approach towards budgeting in a traditional sense is changing with emphasis
on performance. Some of them include incremental approach, rational approach
(zero-based budgeting and planning and programming budgeting system) and futuristic
approach E-budgeting.
l From the perspective of some scholars incrementalism and bargaining have an
important role to play in the formulation of budget. Economy, efficiency and social
equity are important criteria in public administration with regard to resource allocation.
But, the application of a single criterion by which budgetary decisions are guided
is no longer valid. In reality several criteria, often overlapping, tend to influence
budgetary decisions.
l E-budgeting presents a strategic advantage with the help of the capability of the
internet to let various establishments execute an enterprise wide budgeting system,
which can be reached from any location.

8.12 Probable Questions

Essay Type Questions
1. Write an essay on Rational Approach to budgeting.
2. Write an essay on Futuristic Approach: E-budgeting.
3. Discuss Incremental Approach to Budgeting.
Short Questions
1. What are problems in the implementation of ZBB?
2. What are the disadvantages of Rational Approach to budgeting?
3. What are benefits of E-budgeting?
Objective Questions
1. What is the full form of ZBB?
84 NSOU l CC-PS-9

2. What is the full form of PPBS?

3. What is the fupp form of ARC?
4. What is another name of electronic budgeting?
5. In which country was performance budgeting introduced first?

8.13 Further Reading

1. Thavaraj, M.J.K. 2009, Financial Administration in India, Sultan Chand, New
Delhi
2. Chakrabarty, Bidyut, 2019, Indian Administration: Evolution and Practice, Sage
Publication
3. Professor Haridwar Shukla, 2021, Public Policy and Public Administration in
India, Mahaveer Publications
4. Rumki Basu, Public Administration in the 21st Century, A Global South Perspective,
Taylor and Francis, 2019
Unit 9 o Types of Budgeting

Structure
9.1 Objective
9.2 Introduction
9.3 Different Types of Budgeting
9.4 Conditions for Successful Implementation of Zero-Based Budgeting
9.5 Need for Zero-Based Budgeting
9.6 Benefits of Zero-Based Budgeting
9.7 Limitations of Zero-Based Budgeting
9.8 Conclusion
9.9 Summing up
9.10 Probable Questions
9.11 Further Reading

9.1 Objective
After studying this unit, the learners will be able to
l understand the concept of budgeting
l familiarize with the different types of budgeting
l examine the process of budgeting in India
l evaluate the financial administration in India

9.2 Introduction
The objectives of all budgets include regulating unnecessary government spending and
waste. Budget has a long historical past and the modern governmental budgeting is the
result of long evolutionary process as such, different types of them have been used depending
upon the purpose, need, time period, financial position of the government, focus on
achievements etc. some of the main types are as follows:
86 NSOU l CC-PS-9

9.3 Different Types of Budgeting

Annual and long-term Budget: When the budget is prepared for one year, which is
generally known as financial year, it is called annual budget. On the other hand if it is for
more than one year then it is called long term budget. However the common trend is to
make budget on annual basis.
Surplus, Balanced and Deficit Budget: If the income of the government is shown
to be more than its expenditure then it is called surplus budget. However, this is not
recommended especially in a welfare state as it gives the impression that the government
is not doing enough for the betterment of its citizens. When the income and expenditure of
the government match each other, it is called balanced budget. Although it is recommended
yet it is very difficult to achieve. The third situation is when the expenditure of the govt is
more than its income, it is called deficit budget. It is the most common type and is seen
positively, yet large scale deficit is considered as inefficiency of the government as it gives
rise to inflationary tendencies.
Cash and Revenue Budget: If the amount which is shown in the budget is going to
be realized in the financial year then it is called as Cash Budget, but if the amount accruing
in one financial year shown in the budget may not be realized in that year, then it is called
as Revenue Budget.
Legislative Type Budget: In this type the legislature itself shoulders the responsibility
of making the budget. This it does with the help of committees made from amongst its
members and passes it and then gives it to the executive for implementation. However, this
is not recommended as the legislature is not competent to assess the requirements of the
different departments. As such the budget will not be realistic enough to meet all the goals
and the objectives.
Executive budget: When the executive is entrusted with duty of making the budget,
it is called executive budget. However, this should not be construed as the dominance of
the executive; rather it should be seen as a step in making the budget realistic since
executive is in a better position to make the estimates. In this type, generally the budget
making and the execution is the responsibility of the executive, however it has to obtain the
sanction of the legislature before execution.
Line-item Budget: This is the earliest system of budgeting which was designed to
control governmental expenditure and activities. A line-item budget is simply the allocation
of resources according to the cost of each item, from paperclips to personnel, used by a
government agency. It operates on a pay-as-you-go basis and is designed to reveal exactly
NSOU l CC-PS-9 87

how much has been spent on what. Generally, only Public Administration in a Globalizing
World an approved sum can be spent for each item, other expenses cannot be introduced
until money has been appropriated, and funds cannot be transferred within an organization.
This type of budget is advantageous from an accountability perspective, that is, the amount
that will be spent on x, y, and z is clearly delineated to keep spending under control. It a
simple tool for keeping tabs on where money goes, and ensuring that funds are spent
appropriately. A major disadvantage of the line-item budget is that it is not tied to
performance. However, the rigidity of line-item budgeting has led to the use of performance
budgeting.
Lump sum Budgeting: In this type the executive is given the discretion to not only
shift the expenditure from one head to another but is also given the freedom to change or
shift the amount from one organization to another. Advocates of this type put forward the
idea that this makes the executive to use the funds more judiciously.
Performance Budgeting: Performance budgeting includes a narrative describing an
agency’s work in progress, and accomplishments and aims to provide policymakers with
data for measuring work-load and activity costs and to tell the public whether they are
getting their money’s worth. The idea behind performance budgeting is that how much you
spend on department x is tied directly to how well department x is performing. Performance
budgeting requires the establishment of performance levels and the collection of information
that tells weather those performance levels have been met. The most common types of
performance indicators are outputs and outcomes. Output indicators report units produced
or the quality of services provided by a department, an agency, or a programme. They
reflect how well a government entity is meeting its goals and objectives. These indicators
are designed to answer questions that deal with the quality and impacts of government
service delivery. The central points of performance budgeting are:
l The amount of work that is done is measured,
l The quality or the results of that work is measured, and
l This impacts how much money a department will receive in the future (Holzer and
Schwester 2011: 300).
Departments that over-perform may receive more money, while those that under-
perform may receive less. Critics argue that using performance measurement as a basis for
determining budgets is counter-intuitive, because taking money away from a struggling
department is likely to make matter worse. Also, some might argue that measuring performance
is inherently problematic, that is, designing performance indicators is subjective, and collecting
data can be time-consuming and expensive.
88 NSOU l CC-PS-9

Planning, Programming and Budgeting System: The planning, programming and

budgeting system (PPBS) emerged as a reaction to the unscientific and disjointed planning
in preparing the budget. The PPBS evaluates policy by dividing it into separate programmes
and quantifying their gains and losses. A basic element of programme budgeting—cost-
benefit analysis—systematically weighs the cost of a project against the amount of benefit—
in terms of money or material saved or earned—that an agency or department can expect
in return. The PPBS selects those programmes that achieve the desired goals at the
lowest costs. It is one of the rational approaches to budget preparations. The PPBS
offers great flexibility because they allow any combination of expenditures that will achieve
a programme’s objectives and yield the greatest benefits for the costs involved. This
approach enables policy-makers to assess a project’s potential success or failure before
it is implemented.
Zero-Based Budgeting: The traditional practice is to allocate funds on an incremental
basis every year to all schemes agreed upon and approved by the government, irrespective
of their operational evaluation. This leads to the arbitrary increase in allocations which
keep multiplying year after year. A stage comes when financial accountability of operative
agencies becomes an arduous task, if not impossible. Contrary to this, the zero-based
budgeting (ZBB) is the allocation of resources to agencies on the basis of those agencies
periodically re-evaluating the need for all of the programmes for which the agency is
responsible and justifying the continuance or termination of each programme in the agency
budget proposal. This leads the allocating agencies to warn such funding schemes which
are sick or irrelevant to the ground realities of socioeconomic life. The ZBB attempts to
bring the expenditure of such schemes down to zero or in other words to a reduced level
of expenditure so that a proper evaluation of the scheme could be possible (Singh 2002:
200–01). In other words, an agency reassesses what it is doing from top to bottom from
a ‘hypothetical zero’.
The ZBB is advantageous in that it allows department heads to set priorities, letting
the budget makers know where cuts are more acceptable and where increases would be
desirable. It makes sense to allow department heads to set these priorities, given that
they are in a position to know how beat to carry out a department’s programmes. A
disadvantage of ZBB deals with its labour intensiveness. Preparing and ranking the decision
packages can be overwhelming. Additionally, the way in which the decision packages are
ranked can be highly subjective (Holzer and Schwester 2011: 301–03).
NSOU l CC-PS-9 89

9.4 Conditions for Successful Implementation of Zero-Based

Budgeting
There are a few conditions which will help in successful implementation of ZBB which are
given below:
1. Committed Management: The top management must be committed as well as
have a participatory role.
2. Fixed Goals: Organizational goals must be fixed. As ZBB is not an end product
itself but a means to achieve targets, goal setting must not be vague and ambiguous.
3. Identification of Weaknesses: Weaknesses of an organization must be perceived
and strengths enumerated so that identified weak areas can be worked upon.
4. Trained Staff: ZBB requires staff to be trained for its procedure to be implemented
properly.
5. Elimination of Doubts: All levels of management must cooperate with each other
by eliminating all doubts regarding the ZBB procedure.
6. Review: Decision packages must be reviewed periodically. Brainstorming Sessions:
There must be brainstorming sessions at all hierarchical levels to get proper and
timely feedback.

9.5 Need for Zero-Based Budgeting

There are four overriding reasons that make the ZBB worthwhile, given below in brief:
1. Low Priority Programs: Low priority programs can be eliminated or reduced.
How the savings are used is a completely separate question.
2. Program Effectiveness: Program effectiveness can be dramatically improved.
Such improvements may or may not have a budgetary impact.
3. High Impact Programs: High impact program can obtain increased funding by
shifting resources within an agency, whereas the increased funding might not have
been available had the agency merely requested an increase in total funding.
4. Tax Increases: Tax increases can be retarded. The first three benefits can significantly
reduce the necessity for increased taxes by allowing agencies to do a more effective
job with existing revenues. For the hardnosed executive or Legislature, budgets can
be reduced services.
90 NSOU l CC-PS-9

9.6 Benefits of Zero-Based Budgeting

Since Zero-Based Budgeting is comparable to starting the budgeting process from
scratch every year, this method requires more intensive planning and time. All revenue and
expenses are scrutinized more closely in order to create a more accurate budget. The
benefits of zero-based budgeting are:
1. Unbiased Approach: The main benefit of zero-based budgeting approach is that
each person involved in the process will integrate all known and expected costs
without any preconceived notions and bias from previous information or data.
2. Improves Interaction: ZBB impels employees to work more cohesively and
closely together during the budget process because they must know how each
function affects the other functions of the organization. This increased interaction
and coordination among the employees results in a definite rise in the levels of
motivation and interest to do their work efficiently.
3. Effective Procedures: Zero-based budgeting will generate ways and method.
Usually, organization tend to use the same forms, personnel and activities without
determining whether they are effective but by using this approach they can eliminate
forms, processes, and/or employees that are not effective during the year.
4. New Ideas: For convenience, most organizations go with what is working, regardless
whether there are more efficient options. As zero-based budgeting does not consider
last year as a model for each subsequent year, new technologies, methods and
materials may be discovered that will make the organization more successful.
5. Efficient Allocation of Resources: It represents a move towards allocation of
resources by need and benefit and thus results in more efficient allocation of resources.
It forces management to rethink completely their centre or division’s situation and
costs each year.
6. Planning Tool: ZBB is a planning tool used in management which helps in
identification of wasteful and redundant items of expenditure.
7. Psychological Impetus: ZBB adds psychological impetus to employees to avoid
wasteful expenditure.
8. Flexibility in Budget: If it is perceived that there is some decrease in income, ZBB
paves the way for adjustments in the budget. It provides flexibility in budget by
pressurizing the management to review regularly the entire cost base and on the
other hand, it encourages management and users to look critically at current
expenditure. It is good at putting a spotlight on items which increase the cost.
NSOU l CC-PS-9 91

9.7 Limitations of Zero-Based Budgeting

Limitations of Zero-Based Budgeting due to which this approach became unsuccessful
are as follows:
1. Bureaucratic and Time Consuming: Though zero-based budgeting proved to be
a useful budgeting process to review discretionary overheads but the process was
so bureaucratic and time consuming that the organizations got discouraged to use
it again. Moreover, like traditional budgeting, it was based on the organizational
hierarchy. It thus reinforced functional barriers and failed to focus on the opportunities
for improving business processes. It takes a lot of time as it is a completely bottom-
up approach, which is redesigned annually demanding more time from employees
to complete their annual budgets.
2. Incorrect Assumptions: Although budgeting depends on many assumptions as a
basis, organizations use the previous year’s assumptions as its basis. Each assumption
has to be determined without looking at the previous year’s budget. If the assumptions
are incorrect, then the budget will not be accurate and will be of little help to the
organization. In sum, this process can be useful if the organization has the time and
knowledge to make accurate assumptions.
3. Threat felt by Bureaucrats: The major problem is the threat that many bureaucrats
feel towards a process which evaluates the effectiveness of their programs.
4. Based on Organization Hierarchy: Like traditional budgeting, it was based on
the organizational hierarchy. It thus reinforces functional barriers and fails to focus
on the opportunities for improving business processes.
Gender Budgeting: Gender budgeting is a process that entails incorporating a gender
perspective at various stages of budgeting, that is, planning, policy formulation, assessment
of needs of target groups, allocation of resources, implementation, impact assessment, and
reprioritizations of resources. The main objective of gender budgeting is to bring out a
gender-responsive budget. Gender budgeting is understood as a dissection of the government
budget to establish its gender differential impacts to translate gender commitments into
budgetary commitments. Thus, gender budgeting:
l looks at the government budget from a gender perspective to assess how it addresses
the needs of women in all sectors,
l it does not seek to create a separate budget, instead it seeks to provide affirmative
action to address the specific needs of women, and provides a way for assessing
the impact of government revenue and expenditure on women (Government of
India 2008: 103– 06).
92 NSOU l CC-PS-9

Gender budgeting lends itself to strengthening administrative processes and actions to

achieve the targets for improvements in the position of women. It not only entails a look
at allocation of resources for women but goes beyond to cover tracking of the utilization
of allocated resources, impact analysis, and beneficiary incidence analysis of public
expenditure and policy from a gender perspective. Hence, gender budgeting is not an
accounting exercise as commonly perceived and understood. It encompasses incorporating
a gender perspective and sensitiveness at all levels and stages of the developmental planning,
processes, and implementation. An important outcome of the application of gender budgeting
is that it paves the way for gender mainstreaming in the developmental process and in
understanding how the needs of women can be addressed in a better way (Goel 2010:
247). Gender budgeting is a powerful tool for achieving gender mainstreaming so as to
ensure that the benefits of development reach women as much as men. It seeks to ensure
equality of outcomes and not equality of opportunities. In India, the Ministry of Women and
Child Development, as the nodal agency for gender budgeting has taken great strides
towards promoting gender budgeting across sectors and at different levels of governance.
Green Budgeting: Besides gender budgeting, green budgeting is another budgeting
innovations. It believes in protecting the ecology in the process of development. It is not a
separate budget, but focuses on the environmental considerations in the budgetary allocations.
Due to ecological considerations, now, it has become mandatory to all development projects
to go through ‘environmental impact assessment’. It is a process in which the ecological
impact of a project is assessed before its implementation. Thus, such budgetary innovations
are trying to address to the emerging socioeconomic and ecological challenges.

9.8 Conclusion
The type of budget is decided based on its emphasis and the difference between the
expenditure and the receipts. However, which type of budget is suitable for a country is
determined in advance depending on the socio-economic status of the country.

9.9 Summing up
l The objectives of all budgets include regulating unnecessary government spending
and waste.
l A line-item budget is simply the allocation of resources according to the cost of
each item, from paperclips to personnel, used by a government agency.
l Performance budgeting includes a narrative describing an agency’s work in progress,
NSOU l CC-PS-9 93

and accomplishments and aims to provide policymakers with data for measuring
work-load and activity costs and to tell the public whether they are getting their
money’s worth.
l The development of Planning Programming Budgeting System (PPBS) was in reaction
to the search for a better budgeting system than the traditional line-item budgeting
and traditional performance budgeting. It was felt that line-item budgeting was
excessively concerned with control and too little with policy and results. PPBS put
a question mark on this annual incremental line-item budgeting system in two ways.
Firstly, it prolonged the period of planning to a number of years and secondly, it
looked for linking demand for resources to programmes so that activities may be
carried out as per the policies.
l Gender budgeting looks at the government budget from a gender perspective to
assess how it addresses the needs of women in all sectors.

9.10 Probable Questions

Essay Type Questions
1. What is zero-based budgeting? Explain the benefits and limitations of zero-based
budgeting.
2. Elaborate the Planning, Programming and Budgeting System in India.
3. Write a note on performance budgeting.
Short Questions
1. What is green budgeting?
2. What are the differences between program budgeting and performance budgeting?
3. What is gender budgeting.
4. Write a short note on gender budgeting.
Objective Questions
1. What is it called when the Executive makes a budget?
2. What is it called when the income of the government is more than its expenditure?
3. What is it called when the expenditure of the government is more than its income?
4. What is it termed when there is a gender perspective in a budget?
5. What is it termed when ecology is involved in a budget?
94 NSOU l CC-PS-9

9.11 Further Reading

1. Diamond, Jack, Budget System Reform in Emerging Economies, The Challenges
and the Reform Agenda, International Monetary Fund, US, 2006.
2. Handa, K.L., Expenditure Control and Zero Based Budgeting, Indian Institute of
Finance, New Delhi, 2002.
3. Mahajan, Sanjeev Kumar; Mahajan, Anupama, Financial Administration in India,
PHI Learning Private Limited, Delhi, 2021
Unit 10 o Role of Finance Ministry in the Framing of
a Budget

Structure
10.1 Objective
10.2 Introduction
10.3 Role of the Finance Ministry in the Preparation of Budget
10.4 Department of Economic Affairs (DEA)
10.5 Department of Expenditure
10.6 Department of Revenue
10.7 Conclusion
10.8 Summing up
10.9 Probable Questions
10.10 Further Reading

10.1 Objective
After studying this unit, the learners will be able to
l explain the role played by the Finance Ministry in the making of budget
l analyze its structural divisions in some detail
l dwell on the role played by the Finance Ministry as a growth engine
l elaborate on its role in making the administrative machinery of the country rolling
by providing necessary funds in the budget

10.2 Introduction
As the core unit of the executive entrusted with the task of managing the operational
dynamics of the budget, the Ministry of Finance may arguably be taken as the nodal agency
of the Public Administration in a Globalizing World. It plays a very crucial role in the
budgetary process in India. Indeed, to a layman, the Ministry of Finance embodies the
financial administration of the country in its entirety. Though technically untenable, yet such
96 NSOU l CC-PS-9

a notion is attributed to the Ministry of Finance, keeping in view its role in managing the
finances of the country. For instance, right from estimating the final figures of the revenues
and expenditures of the government for presentation before the parliament, the ministry is
vested with the task of ultimately ensuring that the finances of the country are managed
properly. The major contours of the functioning of the ministry are discerned from its
structural divisions in the three departments, that is, Department of Economic Affairs,
Department of Revenue, and Department of Expenditure. Such an overarching role in the
management of the finances of the country has made the Ministry of Finance one of the
key ministries of the Government of India.

10.3 Role of the Finance Ministry in the Preparation of Budget

The main role of the Finance Ministry is to prepare budget. It finalizes the budget on
the basis of the estimates received from the various departments, keeping in view the
following factors:
Estimates: It ensures that the estimates submitted by various departments conform to
the guidelines issued by it, ceilings prescribed by it for loans and advances, etc.
Cuts: The Finance Ministry often imposes cuts in the estimates proposed by the
various departments, keeping in mind the overall resource position.
Priorities with respect to Schemes: The Finance Ministry has to prioritize the various
schemes and projects according to regional imbalances.
The Finance Ministry has a significant role to play in the government’s financial management
policies. The important departments under the Finance Ministry are the, the Department of
Economic Affairs, the Department of Expenditure, and the Department of Revenue.

10.4 Department of Economic Affairs (DEA)

The Department of Economic Affairs is the nodal agency of the union government to
formulate and monitor country’s economic policies and programmes having a bearing on
internal and external aspects of economic management. One of the principal responsibilities
of this Department is the preparation of the Union Budget every year.

10.5 Department of Expenditure

The Expenditure Department has the following divisions viz., the establishment division,
NSOU l CC-PS-9 97

the plan finance I and II divisions, the finance commission division, the pay research unit,
the staff inspection unit, the cost account branch, the National Institute of Financial
Management, the central pension accounting office, the office of chief controller of accounts
and the miscellaneous department branch.
a. Establishment Division
The Establishment Division plays a crucial role in the administration of various
financial rules and regulations including service conditions of all central government
employees.
b. Plan Finance Division I
Plan Finance-I Division handles matters relating to overall financial position and
plan outlays of States. The Division is closely associated with Planning Commission
in assessment of financial resources for five year plans and annual plans of states.
c. Plan Finance Division II
Plan Finance-II Division deals with matters relating to the Central Plan. These
cover the estimates of resources for central plan including Internal and Extra
Budgetary Resources, Plan outlays of different Ministries/Departments of the Central
Government, appraisal of Plan projects/schemes before they are submitted to
Public Investment Board (PIB)/Expenditure Finance Committee (EFC) etc.
d. Finance Commission Division
The Finance Commission Division of the Department of Expenditure is concerned
with the implementation of the recommendations of the Finance Commission. It
provides the status of the implementation of the accepted recommendations of
Expenditure Finance Commission from time to time and any other data on state
finances when required.
e. Pay Research Unit
The Pay Research Unit is mainly responsible for collection, compilation and analysis
of data on actual expenditure incurred on pay and various types of allowances as
well as data pertaining to the strength of the central government civilian employees
and Employees of Union Territory Administration.
f. Staff Inspection Unit
The Staff Inspection Unit was set up with the object of effecting economies in
manpower consistent with administrative efficiency and evolving performance
standards and work norms in government offices and institutions wholly or
substantially dependent on government grants. Its officers also serve as core member
98 NSOU l CC-PS-9

on the committees appointed to scrutinize manpower requirements of scientific and

technical organizations.
g. Cost Accounts Branch
Cost Accounts Branch (CAB) is a specialized pricing office of the central government
within the Ministry of Finance, Department of Expenditure. CAB renders professional
assistance to different ministries on the matters of determination of fair cost of
production/selling prices of various industrial products, consumer products, services,
etc. CAB also renders expert professional advice to different ministries/departments
on matters of tariff fixation, advice on the specific reference emanating from the
implementation of Central Excise Act, 1944, issues relating to introduction of
Commercial, Financial, Cost and Management Accounting, conducting system
studies, analytical studies, etc.
h. National Institute of Financial Management (NIFM)
NIFM is a center for excellence encouraging learning, teaching and research in the
area of financial management
i. Central Pension Accounting Office
The Central Pension Accounting Office (CPAO) was set up as an administrative
unit of the Ministry of Finance, Department of Expenditure under the Controller
General of Accounts. This office is administering the ‘Scheme for Payment of
Pension to Central Government Civil Pensioners by Authorized Banks’.
j. Controller General of Accounts (CGA)
The Controller General of Accounts is the apex accounting authority of the central
government and exercises the powers of the President under Article 150 of the
Constitution for prescribing the forms of accounts of the union and state governments
on the advice of the Comptroller & Auditor General of India. The chief controller
of accounts is in overall charge of the accounting organization of the ministry.
k. Miscellaneous Departments Branch
The branch functions as an Associated Finance Unit to the Departments, viz.,
Prime Minister Office, Supreme Court of India, Ministry of Parliamentary Affairs
and Secretariats of the Lok Sabha and the Rajya Sabha, Cabinet, President and
Vice President. It deals with all financial matters including the annual budget of
these Departments.
NSOU l CC-PS-9 99

10.6 Department of Revenue

The Department of Revenue functions under the overall administrative direction and
control of the Secretary (Revenue). It exercises control in respect of matters relating to all
the Direct and Indirect Taxes through two statutory Boards, namely, the Central Board of
Direct Taxes (CBDT) and the Central Board of Customs and Central Excise. Each Board
is headed by a Chairman who is also ex-officio Special Secretary to the Government of
India. Matters relating to the levy and collection of all the Direct Taxes are looked after
by CBDT, whereas those relating to levy and collection of customs and central excise
duties and service tax fall within the purview of Central Board of Customs and Central
Excise.

10.7 Conclusion
The Finance Ministry is the most important ministry in the Central Government. It
exercises great control over the working of all other departments. It prepares the national
budget and submits it to the Parliament for approval. After the Parliament has approved
the budget, it executes the budget and maintains control and supervision over the financial
matters of the other departments. As said earlier, finance is the fuel for the engine of
administrative machinery which is managed by the Finance Ministry. Thus, it keeps the
administrative machinery on its wheels by providing money to different departments for
expenditure.

10.8 Summing up
l The main role of the Finance Ministry is to prepare budget.
l It finalizes the budget on the basis of the estimates received from the various
departments.
l The important departments under the Finance Ministry are the, the Department of
Economic Affairs, the Department of Expenditure, and the Department of Revenue.
l Finance is the fuel for the engine of administrative machinery which is managed by
the Finance Ministry. Thus, it keeps the administrative machinery on its wheels by
providing money to different departments for expenditure.
100 NSOU l CC-PS-9

10.9 Probable Questions

Essay Type Questions
1. Discuss the role of the Finance Ministry in the preparation of the Budget.
2. Write a note on the structural composition of the Finance Ministry.
3. Discuss the functions of the Department of Revenue.
Short Questions
1. What is the Department of Economic Affairs?
2. What is Finance Commission Division of the Expenditure Department?
3. What do you know about Central Pension Accounting Office?
4. Point out the responsibilities of the Controller General of Accounts.
5. Write a short note on the Department of Expenditure.
Objective Questions
1. What is the full form of DEA?
2. In which year was the Central Excise Act passed?
3. What is the full form of CGA?
4. What does CBDT stand for?
5. Who is the suthor of the book, “New Horizons of Public Administration”?

10.10 Further Reading

1. Mahajan, Sanjeev Kumar; Mahajan, Anupama, Financial Administration in India,
PHI Learning Private Limited, Delhi, 2021
2. Bhattacharya, Mohit New Horizons of Public Administration, Jawahar Publishers,
2019.
3. Sarkar, Siuli, Public Administration in India, PHI Learning Pvt.Ltd, 2018.
4. Chakraborty, Bidyut, Public Administration in a Globalizing World: Theories and
Practices, Sage, 2012.
MODULE – 4
136 NSOU l CC-PS-9
Unit 16 o Social Welfare: Concepts and Approaches
Structure
16.1 Objective
16.2 Introduction
16.3 Social Welfare As An Instrument for Social Justice and Human Rights
16.4 Important Ministries and Their Welfare Programs
16.5 Factors Hampering Social Welfare Service
16.6 Suggestions for Improving Social Welfare Service
16.7 Conclusion
16.8 Summing up
16.9 Probable Questions
16.10 Further Reading

16.1 Objective
After studying this unit, the learners will be able to −
l develop an understanding about the concept and scope of Social Welfare.
l learn about the vasriou Schemes and Programmes for Social Welfare under
Government of India

16.2 Introduction
Welfare is commonly referred to as a kind of government support, which is extended
to ensure that members of a society, particularly belonging to the vulnerable section are able
to meet their basic human needs like food and shelter. In ancient period, social welfare
functions were performed only by compassionate people. The base of social welfare in
Indian traditional culture comes from, daya, dana, dakshina, bhiksha, samya-bhava,
swadharma and tyaga, which were mainly done to train a person to become self-
disciplined, to make self-sacrifice and to feel for others. These people usually possessed
the qualities of humanism and selfless service to the community. However today, most of
the countries have adopted the concept of a welfare state to protect the vulnerable section
138 NSOU l CC-PS-9

of societies. Social welfare services are the services particularly extended to the weaker
sections of the community so as to mainstream them. Social Welfare schemes and programs
are designed and launched by the government to protect the citizens from the socio-
economic problems and make their lives secured and safe.Thus Social welfare is an organised
system of social services and institutions, designed to aid individuals and groups, to attain
satisfying standards of life and health. Social welfare therefore, aims at providing services
to weaker sections of the population who because of various handicaps such as physical,
mental, economic and social, are unable to make use of social services provided by society
or have been traditionally deprived of these services.
Paul Anthony Samuelson was the first economist to suggest the theory of the common
welfare in the context of the state of welfare. He stated that the state is responsible for the
achievement of the national social welfare as the state is duty-bound to provide its citizens
with welfare. According to him, the state must have mechanism for governing and provision
of the public welfare is funded through the taxation system. In addition, the state is capable
of predicting what welfare benefits its citizens wish to receive.
It may be interesting to note that, the protection of the interests of every person is not
assumed within the theory of social welfare. However, unlike public welfare, Social Welfare:
Concept and Constitutional Legal Characteristics 153 human rights are legally obligatory
for the state to support Public welfare is also an expression to some immaterial values (such
as human rights) that have ethical and humane meaning As it is noted by United Nations
Industrial Development Organization, certain categories of public welfare are closely
connected with the aims of the millennium development, and the environment, health,
knowledge, safety and governing are among these benefits. Three benefits from the ones
mentioned above (the environment, health and safety) are mainly related to the risk-
reducing benefits. Two of them, knowledge and governing, require increase and development
of the relevant opportunities. Such social benefits as the social justice and the prosperity
of the nation are of particular interest. In the post-war period, the significance of the social
welfare includes services for children, youth, women, aged, scheduled castes, scheduled
tribes, other backward classes, minorities, disabled, drug addicts, and economically under-
privileged such as destitute and unemployed. Social welfare programmes are, therefore,
directed to ameliorate their conditions and therefore it requires proper administration.
The Government of India has laid down many social welfare and social security schemes
for its citizens, which are funded either by the central government, state government or
concurrently. Those Schemes which are fully funded by the central government are referred
to as “central sector schemes” while schemes mainly funded by the centre and implemented
by the states are “centrally sponsored schemes” .In the 2022 Union budget of India, there
are 740 central sector schemes. and 65 centrally sponsored schemes .
NSOU l CC-PS-9 139

The Ministry of Social Justice & Empowerment is entrusted with the task of
empowerment of the disadvantaged and marginalized sections of society. The target groups
of the Ministry include Scheduled Castes, Other Backward Classes, Persons with Disabilities,
Senior Citizens, Victims of Substance Abuse, Transgender persons, and beggars. The Ministry
has been implementing various programmes/schemes for the social, educational, and economic
development of the target groups.
Article 38 of the Constitution reads: “The state shall strive to promote the welfare
of the people by securing and protecting as effectively as it may, a social order in
which justice – social economic and political – shall pervade all institutions of national
life.” This provision provides a broad framework for the establishment of the welfare
state. Accordingly following Fundamental Rights have been coined for the welfare of
the people of India
Right to Equality (Art. 14 to 18)
Right to Freedom (Art. 19 to 22)
Right Against Exploitation (Art. 23 & 24)
Right to Freedom of Religion (Art. 25 to 28)
Right to Culture and Education (Art. 29 & 30)
Based on these rights several welfare measures have been launched by Indian
governments:-
l Laws to protect children from exploitationeg..POCSO Act, JJAct
l Laws and welfare schemes to protect women from exploitation.eg.Maternal Benefit
Act
l Programmes for the welfare of physically challenged.EG- PWD Act
l Reservation for SC, ST and OBC in legislature, employment and education.
l Schemes for the development of religious and linguistic minorities.
l Welfare schemes for the poor, backward classes and scheduled castes and
scheduled tribes.
l Schemes for Health promotion like National Health Mission·
l Acts for Minimum wages and equal wages for equal work for both men and
women. Schemes to boost rural employment like Mahatma Gandhi National
Rural Employment Guarantee Act (MGNREGA) and SwaranJayanti Gram
SwarojgarYojna.
l Right To Education Act 2009 and SarvaSikshaAbhiyan to universalize education.
l Food Security Ordinance 2013.
140 NSOU l CC-PS-9

16.3 Social Welfare As An Instrument for Social Justice and

Human Rights
The Indian Constitution ensures social justice to every citizen to make their life
meaningful. Social justice minimises the sufferings of the poor, The weak, The dalits,
and tribals, deprived sections of society and tries to establish equality to live life with
dignity.Through Social justice we may make sure that everyone enjoys equal treatment
without social discrimination based on caste, color, race, religion, sex.Thus, social
justice aims to attain a substantial degree of social, economic, and political equality.
Therefore, social justice seeks to secure social order to promote the people’s welfare.
Social justice minimizes the inequalities in income, and strives to eliminate inequalities
in status, opportunities, and facilities.
Social welfare is all about establishing collective wellbeing of members of a society
and fulfils the social responsibility for continuous improvement. The study of social
welfare measures are adopted to improve the quality of human life in a society, in all
its dimensions, and explores the types of resources needed to enhance it. Social justice
thus is inextricably linked with social welfare as it is concerned to ensure that people
have equitable access to resources for human development, both within a society and
globally. Social justice examines whether some groups have privileged access to resources
while others are absolutely excluded from development. Therefore, social justice is
committed to remove social inequalities.
Social welfare is also the determining factors for, human rights or personal freedoms
(civil liberties), such as freedom from discrimination, right of work, health, education and
information. Social Welfare secures the basic rights of human beings, and no one remains
deprived of their legitimate entitlements without any social exclusion.

16.4 Important Ministries and Their Welfare Programs

There are several ministries that are set up under Indian Government to extend Welfare
services to the Indian citizens which may be listed as below-
Scheme Lead Year of Sector Summary
Ministry Launch

PM Poshan MoWCD 2021 Health, Revamped version of 1995 Mid day Meal
Shakti Nirman Education Scheme (Madhyahan Bhojan Yojana)
Abhiyaan to provide free lunch to school-children.
NSOU l CC-PS-9 141

Scheme Lead Year of Sector Summary

Ministry Launch
(PM-POSHAN, Financial outlay in 2022 was 10,233 crore
Prime Minister's (US$1.3 billion). POSHANAbhiyaan was
Overarching launched in 2018.[19] Grouped under
Scheme for the umbrella scheme "Saksham
Holistic Anganwadi and POSHAN 2.0".
Nourishment, Expanded aims include reduce stunting,
(lit) PM Nutri- under-nutrition, anemia and low birth
tion Power weight
Building Scheme

Strengthening MoE 2020 Education To improve school education in six states

Teaching- covering 10 million teachers. Financial
Learning and support by World Bank. This is a
Results for continuation of GOI-World Bank efforts
States(STARS) since 1994 towards the same goal.
Implemented through Samagra Shiksha
Abhiyan

Garib Kalyan 12 2020 Employment Employment campaign for the poor

Rojgar ministries following coronavirus pandemic
covering 12 ministries and 6 states.
Abhiyaan
Launched on 20 June 2020 and ended
on 22 October 2020

Jal Jeevan Ministry of 2019 Rural Accelerated Rural Water Supply

Mission Jal Shakti Development Programme began in 1972.[28]
Restructured into National Rural
Drinking Water Programme (NRDWP)
in 2009. To provide water to each rural
household through individual taps.
Financial outlay in 2022 is 60,000
(US$7.9 billion). Consists of
'HarGharNal Se Jal' or 'Nal Se Jal
Scheme
Ayushman Ministry of 2018 Health Ayushman Bharat National Health
Bharat Yojana Health and Protection Scheme (AB-NHPS) aims to
(AB PM-JAY, Family provide free access to healthcare for
Ayushman Welfare 50 crore people in the country.
Bharat Pradhan Implemented across India expect 3
Mantri Jan states/UTs. By July 2021 Ayushman
Arogya Yojana, cards issued numbered 16.14 crore. By
People's Health March 2022 hospitalisations under the
142 NSOU l CC-PS-9

Scheme Lead Year of Sector Summary

Ministry Launch
Scheme) scheme had crossed 30 million with a
valuation of 35,000 crore

Samagra Ministry of 2018 Education To improve overall effectiveness of

Shiksha Education schools from pre-nursery to class 12
and other measures.In 2022 it financial
outlay allocated 37,383 crore (US$4.9
billion).Subsumes Sarva Shiksha
Abhiyan and others. World Bank
supported
PM Jan Ministry of 2018 Development Started in 2008 as Multi-sectoral
Vikas Minority Development Programme (MSDP).
Karyakaram Affairs Development of minority
concentration area

Rashtriya Gram Ministry of 2018 Rural To strengthen Panchayati Raj

Swaraj Abhiyan Panchayati Development institutions and support them towards
(RGSA, National Raj achieving Sustainable Development
Village Swaraj Goals.
Campaign)
Pradhan Mantri Ministry of 2017 Mother Care Launched as the Indira Gandhi Matritva
MatriVandana Women and Sahyog Yojana in 2010. Renamed in
Yojana Child Deve- 2017. A cash incentive of not less than
lopment 6,000 (US$79) to pregnant/lactating
women
PM Ujjwala Ministry of 2016 Energy, Health, Launched to provide free LPG
Yojana Petroleum Poverty connections to women from below
(PM Lighting and Natural poverty line families.[45] While the
Scheme) Gas scheme mainly addresses distribution
of cylinders, their usage has been in
question

16.5 Factors Hampering Social Welfare Service

Social Welfare Services often fail as they are not coordinated and implemented properly;
There is a lack of collaboration, planning, monitoring or evaluation from time to time. Some
of the challenges to the delivery of social welfare services are a shortage of social workers,
poor recognition of social service practitioners, a lack of funding and high staff turnover and
also because of low level of awareness about these welfare schemes they remain underutilized.
NSOU l CC-PS-9 143

Moreover the government budget allocations for the social welfare services are also not
sufficient. Here are the possible factors which often lead to hamper the social welfare
activities in our country-
ü Lack of sufficient funds/resources:
Lack of funds or resources is an important factor hampering the rendering of social
welfare services .The welfare programmes fail to meet their goal and many of the
tasks remain unaddressed due to paucity of fund, moreover the professionals,are
not motivated to carry out their job, as most of time they are under-paid.
ü Lack of stable workforce:
The acute shortage of professionally qualified workers has resulted in a severe
lack of capacity to respond to the demand for social welfare services to vulnerable
segment of our society. There are lack of training institutes which may impart
training to the professionals in this field.
ü Insufficient collaboration with and support from the Department of Social
Development:
Lack of coordination and cooperation on multiple levels, especially between the
government and NGOs and other welfare departments, has contributed to the
serious difficulties in rendering the Social Welfare Services in our nation. The roles
of government vis-à-vis those of the NGO sector in respect of service delivery
need to be laid down clearly. The roles, functions and responsibilities of the social
service practitioners in the public and private sectors is not clearly spelled out and
defined, since lack of clarity on this issue causes role confusion, thereby the
professionals working in this field keep on to shifting their responsibilities.
ü Unnecessary legal restrictions:
At times, the Welfare services get disrupted due to restrictions imposed by
government or other legal authorities, especially in case of taking decisions regarding
carrying out of some program in the field, or other restrictions related to
administrative activities within the welfare departments .

16.6 Suggestions for Improving Social Welfare Service

Ø Expansion of social welfare services:
For making the social welfare services successful, the Government have to be
supported by NGOs and work must go on parallelly with them as NGOs may
provide the majority of social services, especially those involving prevention and
144 NSOU l CC-PS-9

early intervention. The urban-based NGOs need to expand their services to rural
areas, for wider coverage.
Ø Better government funding and opting for alternative ways of funding social
welfare services:
We know that though the social welfare services are being provided by non-
governmental organisations, but the government should also devote attention to
ensure that the required range of services is provided and provide the cooperation,
innovation and equitable funding across provinces to ensure accessible services to
all the needy families. Adequate funding is required to sustain the existing children’s
programmes and to further expand these services. The funding will also help in
monitoring and evaluating the interventions and training of staff members.
Ø Better collaboration between Government and NGOs:
We may suggest a better collaboration and coordination between the NGOs and
Government as a means of improving Social Welfare Services as the two sectors
have complementary roles to play in the process of developing and implementing
the Social Welfare programes.The Government does not have the systems or
capacity to work directly in the grassroot level due to some limitations thus they
should be supported by the NGO sector sufficiently to render the services on their
behalf, as NGOs can understand the pulse of the people and go deep into the
problems and get it solved.
Ø Recognition and recruitment of social welfare practitioners:
There is still a gap between the need for and the supply of Professionals in the field
Social Welfare service delivery system. The shortages of social service professionals
should be addressed urgently and efficiently through enhanced deployment , capacity
building and giving due recognition to them.

16.7 Conclusion
It may not be wrong to state that Social Welfare, adopts a “Rights Based Approach”
as it is a way to restore social justice in our society. It ensures that people are not deprived
of their legitimate rights and entitlements.Thus social justice is possible when all the welfare
services are readily available for the citizens, and their basic human rights are secured. In
this way they may easily have the access to these services to lead a dignified life. The
Government must take initiatives to frame appropriate Welfare program which should be
no more Need Based but Rights Based in nature.
NSOU l CC-PS-9 145

16.8 Summing up
l Social welfare services are the services particularly extended to the weaker sections
of the community so as to mainstream them.
l The social welfare includes services for children, youth, women, aged, scheduled
castes, scheduled tribes, other backward classes, minorities, disabled, drug addicts,
and economically under- privileged such as destitute and unemployed.
l Article 38 of the Constitution reads: “The state shall strive to promote the welfare
of the people by securing and protecting as effectively as it may, a social order
in which justice – social economic and political – shall pervade all institutions of
national life.”
l The Government of India has laid down740 central sector schemes and 65 centrally
sponsored schemes social welfare and social security schemes for its citizens,
which are funded either by the central government, state government or concurrently.
l However ,Social Welfare Services often fail as they are not coordinated and
implemented properly; there is alack of collaboration, planning, monitoring or
evaluation from time to time.
l For making the social welfare services successful, the Government have to be
supported by NGOs and give due respect to the professionals in this area.

16.9 Probable Questions

Essay Type Questions
1. What do you mean by the term ‘Social Welfare’ services? How can Social Welfare
Service ensure Social Justice in our Society?
2. Briefly discuss any four Social Welfare Programmes taken up by Government of
India.
3. How can the constitutional rights be ensured by the Social Welfare Services?
4. What are the possible factors of barriers of Social Welfare Services in our country?
In what ways can we overcome these barriers?
Short Questions
1. Who are the target groups of The Ministry of Social Justice & Empowerment?
2. Name the Schemes for Social Welfare under The Ministry of Woman and Child
Development.
146 NSOU l CC-PS-9

3. What is the aim of Ayushman Bharat Scheme?

Objective Questions
1. What is full form of NGO?
2. What is full form of POSCO?
3. What is full form of MGNREGA?
4. Which article of the constitution of India speaks of justice-social, economic and
political?
5. In which year was the Right to Education passed?

16.10 Further Reading

1. Paul A. Samuelson. Maximum Principle in Analytical Economics. Thesis. 1993.
2. Review Report of World Health Organization (2016) “Social justice and human
rights as a framework for addressing social determinants of health Final report of the
Task group on Equity, Equality and Human Rights :Review of social determinants of
health and the health divide in the WHO European Region”
Unit 17o Social Welfare Polices: Right to Education

Structure
17.1 Objective
17.2 Introduction
17.3 Education in India
17.4 Right to Education Act
17.5 Conclusion
17.6 Summing up
17.7 Probable Questions
17.8 Further Reading

17.1 Objective
After studying this unit, the learners will be able to
l know about the literacy status of India
l be aware about the various Government initiatives for promotion of Education in
our country with special emphasis on National policies for Education and the Right to
Education Act.

17.2 Introduction
As stated by UNESCO, “Education is a powerful tool by which economically and
socially marginalized adults and children can lift themselves out of poverty and participate
fully as citizens.” The human right to education is a fundamental and the basic right for
all.Human rights are usually bracketed as either civil or political rights, or as economic,
social, and cultural rights. The right to education is a part of rights, which generally requires
intervention of the States for ensuring this right. Therefore this clearly indicates that States
have the obligation to take steps toward fully realizing the right to education, using the
maximum of available resources.
Every child, irrespective of their caste, religion or sex has the right to access to quality
education. However, there are children who belong to the vulnerable sections, remain
148 NSOU l CC-PS-9

deprived of education, due to lack of infrastructure, awareness and even because of several
socio-economicreasons. This has far-reaching consequences on their future and even on
the communities and societies in which they live. The Constitution of India was framed soon
after its freedom, and the newly framed constitution, clearly declares that the states must
take the responsibility to provide free and compulsory education to all children until they
complete the age of 14 years. Indian constitution ,Free and Compulsory Elementary
Education was made a fundamental right in of December 2002 by 86th Amendment and
this was further translated into the “Right to children to Free and Compulsory Education”
Bill which was drafted in 2005, and enforced in the year 2009. Under the Right of Children
to Free and Compulsory Education (RTE) Act, 2009, all children between the ages of six
and 14 years have the right to elementary education (class 1-8) in a neighbourhood school.
Amongst several provisions focused on elementary education, the Act provides for the no-
detention provision till class 8 i.e., until the completion of elementary education. The RTE
(Second Amendment) Bill, 2017 was introduced in Lok Sabha on August 11, 2017. The
Bill abolishes the no-detention provision.

17.3 Education in India

An amendment was brought in Article 21 (A) of the Constitution of India to provide
free and compulsory education to all children aged between 6-14 years. Article 15, 17, and
46 of the Indian Constitution ensures and safeguards the educational interests of the socially,
economically, and educationally backward families including those belonging to scheduled
castes (SCs), and scheduled tribes (STs) of our society.Still India is the home of about
37% illiterates in the global perspective and 47.78% out of school children in India are
girls, while 60 lakh children in India are still out-of-school. According to the National
Statistical Commission Report, the literacy rate of India was found to be 77.7% in 2017–
18, while that of male and female to be, 84.7% and 70.3% respectively. Kerala has the
highest literacy rate of 93.91% whereas Bihar has an average of 61.8% literacy rate.
Scholarship examinations, The Mid Day Meal Scheme, SamagraShiksha Programme,
SarvashikshaAviyan andBeti Bachao Beti Padhao are some of the major Government
initiatives of our nation to promote Education.
Recommendation of National Policies of Education in India
India adopted its constitution in 1950, with the aim to achieve Social Justice and
providing equality in opportunity for education for all. In 1948, a commission, headed by
Dr. S Radhakrishnan with ten members was constituted, to report on University education
in India and to recommend a mechanism to accommodate the country’s current and
prospective requirements. The commission vouched for establishment of universities to
NSOU l CC-PS-9 149

provide higher education in India, irrespective of religion, caste, gender and region. The
commission in its report emphasized the rebuilding of the education system as recommended
in the constitution of India. A Secondary Education Commission was formed to promote
secondary education, under the chairmanship of Dr. A. Lakshmana swami Mudaliar in
1952. The commission suggested to bring about uniformity in school education across India
and also recommended diversification of school courses with technical and vocational
educations. However, this commission lacked any provision for the promotion of women’s
education. The Secondary Education Commission was preceded by Indian Education
Commission, headed by D.S. Kothari. This commission is popularly known as Kothari
Commission. Kothari Commission which was entrusted with the responsibility of dealing
with all facets and segments of education and providing governments with the necessary
recommendations to transform the National Education System. On the recommendation of
this commission, the first national educational policy came up in India in the year, 1968. The
second national educational policy came in the year 1986 which was further revised in the
year 1992. Now the govt has come up with a third new education policy (NEP, 2020) to
strengthen the Indian education system. The new education policy, 2020 replaced the
thirty-four years old education policy to bring transformation and emphasised on making
the educational system much more inclusive in nature.
National National Educational National Educational
Education Policy 1986 Policy 2020
Policy 1968 (Revised in 1992)
1. This policy was introduced after 1. This policy follows on 5+3+3+4
the 42nd Constitution amendment schooling structure and it focuses
of 1976. During this amendment, on strong Early Childhood Care
education was transferred from & Education (ECCE) from the
the state list to the concurrent age of 3 and aimed at facilitating
list. overall learning, development &
well-being of children.
2. This policy focused on Early 2. To bring the gross enrolment ratio
Childhood Care and Education (GER) to 100% from preschool
(ECCE) through a child-centred to secondary school by the year
approach (CCA), women’s 2030 to ensure universal access
empowerment and adult literacy. to education at all levels.
3. Emphasis was placed on setting 3. To facilitate the education for
up autonomous colleges and socioeconomically disadvantaged
universities, which was missing groups (SEDGs) the expansion
in the prior policies. of the National Institute of Open
150 NSOU l CC-PS-9

National National Educational National Educational

Education Policy 1986 Policy 2020
Policy 1968 (Revised in 1992)
Schooling (NIOS) and State
Institutions of Open Schooling
(SIOS) will be done.
4. To exploit rural talent and to 4. The curriculum will be
materialize the Gandhian restructured and its contents will
ideology, the goal was to create be reduced. It will be multi-
rural universities in rural areas. stream and there will be flexibility
to choose subjects across
streams. It will be made more
professional, practical and
experimental in nature for the
holistic development of students.
5. To achieve social milieu, 5. Three language policy will persist
scholarships & incentive with the choice for the local
schemes, residential schools and language teaching medium until
hostel facilities were created for class 8. Students will know the
SC, ST and girl students vividness of Indian languages
through the mission “Ek Bharat
Sreshta Bharat”. The Sanskrit
language will be taught at all
levels, including as an option
given in the three-language
system. Other classical languages
will be also taught as an option
to keep the literature alive.
6. To meet the varied educational 6. To know the culture of other
needs of the country, accessible nations foreign languages will be
and distance learning was also offered at the secondary level.
advocated.
7. The technical and management 7. Board exams will be offered
curriculum has been reorganized twice a year to assess the core
following the reforms taking competencies of students.
place in the national socio-
technical and management
systems.
NSOU l CC-PS-9 151

National National Educational National Educational

Education Policy 1986 Policy 2020
Policy 1968 (Revised in 1992)
8. The policy was focused to bring 8. A national assessment centre,
radical changes in education PARAKH (Performance
through the introduction of media Assessment, Review & Analysis
& information technology in of Knowledge for Holistic
education. Development) will assess the
learning and achievement of
students through national
achievement survey (NAS) and
state achievement survey (SAS)
9. Several govt. schemes like 9. The national testing agency will
SarvaShikshaAbhiyan (SSA), conduct entrance tests twice a
Mid -Day Meal Scheme (MDS), year to get admission into
NavodayaVidyalaya (NVs), higher education institutions.
KendriyaVidyalaya (KVs) were
started under this national
education policy.
10. The institutions of national 10. The bachelor degree will be of
importance like UGG, AICTE, three or four years and colleges
ICMR, NCERT, and NIEPA will be given autonomy for the
etc. should be strengthened and next 15 years to grant graded
making them reshape the degrees to students. HEIs can
national education system and offer different designs of
establishing a functional and master’s degree program as per
professional linkage between the provisions of the new
these institutions to promote education policy. They may
research and innovation in higher offer two years master’s degree
education through a process of with a second-year associated
integrated planning. with research. They may offer
a one-year master degree to
those who have completed their
one year of research in their
bachelor degree program.
11. M.Phill has been scrapped in
this new education policy, NEP
2020.
152 NSOU l CC-PS-9

National National Educational National Educational

Education Policy 1986 Policy 2020
Policy 1968 (Revised in 1992)
12. Multidisciplinary Education
& Research Universities
(MERU) will be established at
par with the premier institutions
to promote quality education
with global standards.
Source-https://s3-ap-southeast-1.amazonaws.com/ijmer/pdf/volume10/volume10-issue3(5)/3.pdf

17.4 Right to Education Act

In order to ensure education for all, the Government of India, passed the Right to
Education (RTE) Act in 2009. This act provides for the free and compulsory education of
all children between the ages of six and fourteen. As per the Ministry of Human Resource
Development of India, the Right to Education Act secures the right of children to free and
compulsory education till the completion of elementary education in a neighbourhood school.
The Act prescribes rules and regulations relating to, buildings and infrastructure, pupil
teacher ratios, school working days and teacher working hours. With the implementation
of the RTE Act, the Government of India aims to achieve 100% literacy rate in India.
Under the (RTE) Act, 2009, all children between the ages of six and 14 years have
the right to elementary education which includes children of class 1-8. Further, the RTE Act
states that a child cannot be detained in any class till the completion of elementary education.
This rule automatically promotes the child to the next class thus ensuring that detention
would not lead to any drop outs of school. The Bill also waves off the provision of regular
examination for the children of class 5 and class 8 at the end of every academic year. If
a child fails the exam, he will be given additional instruction, and take a re-examination. If
the child fails in the re-examination, the relevant central or state government may decide
to allow schools to detain the child. However, there are differing views on whether children
should be detained for failing examinations in elementary school. Some argue that automatic
promotion reduces incentive for children to learn and for teachers to teach. Others are of
the view that detaining a child may lead to drop outs and does not focus on the systemic
factors that affect learning such as quality of teachers, schools, and assessment. Later, The
RTE (Second Amendment) Bill, 2017 was introduced in Lok Sabha on August 11, 2017
to amend the RTE Act to remove the provision related to no- detention in the Act.
NSOU l CC-PS-9 153

The salient features of RTE Act are:

l Right of children to free and compulsory education till completion of elementary
education in a neighbourhood school.
l It makes provisions for a non-admitted child to be admitted to an age appropriate
class.
l It specifies the duties and responsibilities of appropriate Governments, local authority
and parents in providing free and compulsory education, and sharing of financial
and other responsibilities between the Central and State Governments.
l It lays down the norms and standards relating interalia to Pupil Teacher Ratios
(PTRs), buildings and infrastructure, school-working days, teacher-working hours.
l It provides for rational deployment of teachers by ensuring that the specified pupil
teacher ratio is maintained for each school, rather than just as an average for the
State or District or Block, thus ensuring that there is no urban-rural imbalance in
teacher postings. It also provides for prohibition of deployment of teachers for non-
educational work, other than decennial census, elections to local authority, state
legislatures and parliament, and disaster relief.
l It provides for appointment of appropriately trained teachers, i.e. teachers with the
requisite entry and academic qualifications.
l It prohibits (a) physical punishment and mental harassment; (b) screening procedures
for admission of children; (c) capitation fee; (d) private tuition by teachers and (e)
running of schools without recognition.
l It provides for development of curriculum in consonance with the values enshrined
in the Constitution, and which would ensure the all-round development of the child,
building on the child’s knowledge, potentiality and talent and making the child free
of fear, trauma and anxiety through a system of child friendly and child centred
learning.

17.5 Conclusion
In sum, it can be concluded that the Indian government has formulated educational
policies and Laws regularly to ensure that the Indian education system is of high quality
and internationally recognised. The two previous national educational policies have helped
to develop India’s educational system, and the action plan for the third national
educational policy is one of the platforms that will be used. The policy’s results will
154 NSOU l CC-PS-9

be evaluated using the outcomes of the current national education policy’s action plan.
If this policy focuses on the root causes of the issues and difficulties it faces, it will
be effective. The RTE Act law ensures the citizens that no child will be left behind and
every child will have access to a free and compulsory education. But it is very difficult
to implement this law especially in rural area.

17.6 Summing up
l The human right to education is a fundamental and the basic right for all.
l Article 21 (A) of the Constitution of India is to provide free and compulsory
education to all children aged between 6-14 years.
l Article 15, 17, and 46 of the Indian Constitution ensure and safeguard the educational
interests of the socially, economically, and educationally backward families including
those belonging to scheduled castes (SCs), and scheduled tribes (STs) of our
society.
l The first National Educational Policy was formulated in India in the year 1968. The
second national educational policy came in the year 1986 which was further revised
in the year 1992. Now the Indian Government has come up with a third new
education policy (NEP, 2020) which is more inclusive in nature to strengthen the
Indian education system.
l In order to ensure education for all, the Government of India, passed the Right to
Education (RTE) Act in 2009, to provide free and compulsory education of all
children between the ages of six and fourteen and also with the aim to achieve
100% literacy rate in India

17.7 Probable Questions

Essay Type Questions
1. Discuss briefly the literacy status of India in your own words. How can we improve
and promote education system in our country?
2. What are the ill effects of lack of low literacy level of our nation?
3. Discuss the recommendations of the National Policies of Education in India.
4. Discuss the salient features of Right to Education Act.
NSOU l CC-PS-9 155

Short Questions
1. What are the characteristic features of National Policy of Education 2020?
2. Name the Schemes which were launched under the National Policy of Education
1986?
3. Give a brief account of the educational status of India.
Objective Questions
1. What is the full form of UNESCO?
2. In which year was Radhakrishnan Commission set up?
3. In which year was Kothari Commission established?
4. What is the full form of NEP?
5. What does PTR stand for?

17.8 Further Reading

1. Government of India, Ministry of Education (1968). National Policy on Education
1968 5. Government of India, Ministry of Human Resource Development (1986).
National Policy on Education 1986.
2. Government of India, Ministry of Human Resource Development (2020). National
Policy on Education 2020.
3. Pereira.E&Inchiparamban S ( 2013), “Awareness About The Right To Education
(Rte) Act Among English Medium School Teachers Of Standard Ist To Viii th Of The
Icse Board - An Action Research Project”inInternational Journal of Advanced
Research
156 NSOU l CC-PS-9

Unit 18 o National Health Mission

Structure
18.1 Objective
18.2 Introduction
18.3 The National Health Mission (NHM)
18.4 NRHM- Strengthening Health Systems
18.5 Flexible Pool for Control of Communicable Diseases
18.6 Governance and Accountability Framework
18.7 Achievements under the National Health Mission (NHM) As of June 2021
18.8 Conclusion
18.9 Summing up
18.10 Probable Questions
18.11 Further Reading

18.1 Objective
After studying this unit, the learners will be able to
l have an idea about the nature of health care system of India.
l learn about the National Health Mission.

18.2 Introduction
A very popular proverb says, “Health is wealth”. Health is a crucial resource for
everyday life, it is a positive concept, emphasizing social and personal resources, as well
as physical capacities. The meaning, concept and definition of health has evolved over time.
Earlier, the definitions of health focused on the theme of the body’s ability to function and
health was seen as a state of normal function that could be disrupted from time to time
by disease. Later in 1948, World Health Organization (WHO) proposed a definition that
aimed higher, linking health to well-being, in terms of “physical, mental, and social well-
being, and not merely the absence of disease and infirmity” . By physical health of a person
we mean that the body is not affected by any disease whereas the mental or social health
NSOU l CC-PS-9 157

is characterized by the ability of the people to accomplish various social tasks given to
them. Being healthy has a multi-dimensional aspects, as a healthy person, may lead a
healthy and productive life. Access to adequate, acceptable and quality healthcare services
is important towards achieving ‘Universal Health Coverage. Keeping this in mind Indian
Government has been launching many Programmes and National Health Mission is one of
such programes.

18.3 The National Health Mission (NHM)

The National Health Mission (NHM) is the flagship health initiative that aims for the
attainment of universal access to equitable, affordable, and quality health care services that
are accountable and responsive to people’s needs. The NHM was launched by the
Government of India in 2013, by merging the existing National Rural Health Mission
(NRHM) with the newly launched National Urban Health Mission (NUHM). The NRHM
was launched in 2005. The goal of the Mission is to improve the availability of and access
to quality health care by people, especially for those in vulnerable situation.
The goal of NHM-
l Reduction in Infant Mortality Rate (IMR) and Maternal Mortality
Ratio (MMR)
l Universal access to public health services such as Women’s health, child health,
water, sanitation & hygiene, immunization, and Nutrition.
l Prevention and control of communicable and non-communicable diseases, including
locally endemic diseases
l Access to integrated comprehensive primary healthcare
l Population stabilization, gender and demographic balance
l Revitalize local health traditions and mainstream AYUSH
l Promotion of healthy life styles
l Build state, district and city capacity for decentralized outcome based planning and
implementation, based on varying diseases burden scenarios, and using a differential
financing approach. There will be a focus on results and performance based funding
including linkage to caseloads.
l Enable integrated facility development planning which would include infrastructure,
human resources, drugs and supplies, quality assurance, and effective
RogiKalyanSamitis (RKS).
158 NSOU l CC-PS-9

l Create a District Level Knowledge Centre within each District Hospital to serve as
the hub for a range of tasks including inter alia, provision of secondary care and
selected elements of tertiary care, and the site for skill based training for all cadres
of health workers, collating and analysing data and coordinating district planning.
l Improve delivery of outreach services through a mix of static facilities and mobile
medical units with a team of health service providers with the skill mix and capacity
to address primary health care needs.
l Strengthen the sub-centre/Urban Primary Health Centre (UPHC) with additional
human resources and supplies to deliver a much larger range of preventive, promotive
and curative care services- so that it becomes the first port of call for each family
to access a full range of primary care services.
l Prioritize achievement of universal coverage for Reproductive Maternal, New-born,
Child Health + Adolescent (RMNCH+A), National Communicable Disease Control
and Non Communicable Diseases programmes.
l Expand focus from child survival to child development of all children 0-18 years
through a mix of Community, Anganwadi, and School based health services. The
focus of such services will be on prevention and early identification of diseases
through periodic screening, health education and promotion of good health practices
and values during these formative years and timely management including assured
referral for secondary and tertiary level care as appropriate.
l Achieve the goals of safe motherhood and transition to addressing the broader
reproductive health needs of women.
l Focus on adolescents and their health needs.
l Ensure the control of communicable disease which includes prompt response to
epidemics and effective surveillance.
l Use primary health care delivery platforms to address the rising burden of Non
Communicable Diseases
l Converge with Ministry of Women & Child Development and other related Ministries
for effective prevention and reduction of under-nutrition in children aged 0-3 years
and anaemia among children, adolescents and women.
l Empower the ASHA to serve as a facilitator, mobilizer and provider of community
level care.
l Strengthen people’s organizations such as the Village Health Sanitation and Nutrition
Committees (VHSNC) and MahilaArogyaSamitis (MAS) for convergent inter-
NSOU l CC-PS-9 159

sectoral page | 5 Framework for Implementation of National Health Mission |

2012-2017 planning to address social determinants of health and increasing utilization
of health and related public services at the community level.
l Create mechanisms to strengthen Behaviour Change Communication efforts for
preventive and promotive health functions, action on social determinants and to
reach the most marginalized.
l Enable Social Protection Function of Public Hospitals through the universal provision
of free consultations, free drugs and diagnostics, free emergency response and
patient transport systems.
l Develop effective partnerships with the not-for-profit, nongovernmental organizations
and with the for-profit, private sector to bring in additional capacity where needed
to close gaps or improve quality of services.
l Improve Public Health Management by encouraging states to create public health
cadre, and strengthening/ creating effective institutions for programme management,
providing incentives for improved performance and building high quality research
and knowledge management structures.
l Support states to develop a comprehensive strategy for human resources in health,
through policies to support improved recruitment, retention and motivation of health
workers in rural, remote and underserved areas, improved workforce management,
required staff to help achieve IPHS norms of human resource deployment,
development of mid-level care providers and creation of new cadres with appropriate
skill sets, and in-service training.
l Enhance use of Information & Communication Technology to improve health care
and health systems performance.
l Strengthen Health Management Information Systems as an effective instrument for
programme planning and monitoring, supplemented by regular district level surveys
and a strong disease surveillance system.
l Ensure universal registration of births and deaths with adequate information on
cause of death, to assist in health outcome measurements and health planning.
l Establish Accountability Frameworks at all levels for improved oversight of
programme implementation and achievement of goals. Mechanisms for accountability
shall range from participatory community processes like Jan Sunwais/Samwads,
Social Audit through Gram Sabhas to professional independent concurrent evaluation.
NHM is a centrally sponsored scheme i.e., a proportion of the overall outlay (60%) is
given by the Centre and the rest 40% is met by the states. The total expenditure of the
160 NSOU l CC-PS-9

States for NHM each year is the sum of the Central release during that year, State releases
during the year and any unspent balance at the beginning of the year. Hence the total
expenditure of the states towards NHM would be more than the central release.
NHM is headed by Mission Director and monitored by National Level Monitors appointed
by the Government of India. Major components of the program include Health Systems
Strengthening the- Reproductive-Maternal- Neonatal-Child and Adolescent
Health(RMNCH+A) care services in Rural and Urban areas and prevention of
Communicable and Non-Communicable Diseases.

18.4 NRHM- Strengthening Health Systems

Reproductive, Maternal, New-born, Child Health and Adolescent· (RMNCH+A)
Services
All schemes and programmes that constituted RCH-II would be absorbed into the
NHM. The NHM provides an opportunity to build on past work and renew the emphasis
on strategies for improving maternal and child health through a continuum of care and the
life cycle approach. The inextricable linkages between adolescent health, family planning,
maternal health and child survival have been recognized. There is additional focus on
adolescence as a distinct „life stage and the strategy is to increase knowledge and access
to reproductive health services and information for adolescents and to address nutritional
anaemia.
Another dimension of the continuum of care which will receive attention is the linking
of community and facility-based care and strengthening referrals between various levels of
health care system to create a continuous care pathway. All these aspects are embodied
in the Strategic Approach to Reproductive, Maternal, Newborn, Child and Adolescent
Health (RMNCH+A) in India . The main strategies for RMNCH+A include services for
mothers, newborns, children, adolescents and women and men in the reproductive age
group.
Maternal Health: Key strategies include improved access to skilled obstetric care
through facility development, increased coverage and quality of ante-natal and post natal
care, increased access to skilled birth attendance, institutional delivery; basic and
comprehensive emergency obstetric care through strengthening of carefully prioritized health
care facilities. This will be done through mapping and identifying health facilities as “delivery
points” and strengthening them for delivery of comprehensive package of RMNCH+A
services. The purpose is to ensure universal access to all populations in a district. Wherever
required, private providers would also be contracted-in to supplement services through
NSOU l CC-PS-9 161

public health facilities. Multi-skilling medical officers with specialist skills will be needed to
provide emergency obstetric care. The JananiSurakshaYojana (JSY) which enables
institutional delivery will be modified in the NHM period to synergize with the new Food
Security legislation. Another key goal is to move towards UHC through an expanding
comprehensive package of free and cashless services currently covering all pregnant women,
and sick infants up to the age of one year, in government health institutions through
JananiShishuSurakshaKaryakram (JSSK), thereby reducing financial barriers to care and
improving access to health services by eliminating OOP expenditure in all government
facilities. In addition strengthened emergency response and patient transport systems for
improving access to institutional care, including assured availability of referral and transport
services with respect to inter facility transfers and out referrals will be supported. Improved
monitoring of care in pregnancy will be enabled by mother and child name based information
systems, and facility and community based MDRs will be emphasized. Comprehensive
women s health including pregnancy related morbidity, care for non-communicable diseases
among women including screening and treatment of women for common cancers such as
cervix and breast would be emphasized.
Access to safe abortion services: The focus would be to improve access to
comprehensive abortion care, including post abortion contraceptive counseling and services,
by expanding the network of facilities providing MTP services. MTP services would be
provided at least in every 24*7 facility in every block and in every facility upgraded for
FRU services (also Level 3 services). Multi-skilling of providers will include use of Manual
Vacuum Aspiration (MVA) and medical abortion.
Gender Based Violence: The consequences of gender based violence against women
include physical injuries, reproductive health problems, and mental health. Because women
are most often seen for the provision of reproductive and child health services, this is a
starting point to identify women who are at risk for or who are subject to domestic
violence. The steps towards enabling a system wide response to gender based violence
(GBV) include: sensitize and train frontline workers and clinical service providers to identify
and manage GBV, train ASHAs to identify and refer/counsel cases of GBV in the community,
develop effective referral mechanisms from primary care to secondary and tertiary centers,
with assured services, build functional referral linkages and create follow up mechanisms
with government departments and NGOs providing legal and social welfare services and
women s support groups in the district.
Newborn and Child Health: This will be through a continuum of care from the
community to facility level and include the provision of home based newborn and child care
through ASHAs and ANMs, supplemented by AWW, and community level care for acute
162 NSOU l CC-PS-9

respiratory infections, diarrhea, and fevers, including home remedies, first contact curative
care, or referral as would be demanded appropriate. Essential newborn care and resuscitation
at all delivery points through establishment of Newborn Care Corners and skilled personnel
will be ensured. Facility Based Care for sick newborns will be provided through the
establishment of Newborn Stabilization Units and Special Newborn Care Units. This includes
strengthening public health facilities and accrediting private providers to manage referrals.
Institutional care for sick children and provision for management of children with Severe
Acute Malnourished (SAM) at Nutrition Rehabilitation Centers (NRC) will be linked to
community based care for SAM. Infant and Young Child Feeding (IYCF) and nutrition
counseling to support early and exclusive breastfeeding, complementary feeding, micronutrient
supplementation and convergent action will be also encouraged through platforms like
VHSNC, VHNDs etc. Reporting and reviewing of child deaths (under five years) is
another area of attention. Universal Immunization: Sustaining Pulse polio campaigns and
achieving over 80% routine immunization in all districts will be emphasized. Introduction of
new and underutilized vaccines will be considered on the basis of recommendations of the
National Technical Advisory Group on Immunization (NTAGI). Improved cold chain
management would be ensured with adequate densities of Ice Lined Refrigerators (ILRs)
and deep freezers. Adequate number of vaccination sessions and sites, and logistics
arrangements to reach all such sites especially in remote areas will be a key area of
intervention. Surveillance of vaccine preventable diseases would be integrated with IDSP
and name based monitoring of children done through the MCTS system.
Child Health Screening and Early Intervention Services: The purpose is to improve
the overall quality of life of children 0-18 years through early detection of birth defects,
diseases, deficiencies, development delays including disability and provide comprehensive
care at appropriate levels of health facilities. These services will be delivered through the
RashtriyaBalSwasthyaKaryakram (RBSK). RBSK will cover at least 30 identified health
conditions for early detection, free treatment and management through dedicated mobile
health teams placed in every block in the country. District Early Intervention Centers
(DEIC) will be set up to provide further screening and management support to children
detected with health conditions and make appropriate referrals. The mechanism to reach
all the target groups of children for health screening will be through enabling facility based
newborn screening at public health facilities, by existing health manpower, and community
based newborn screening at home through ASHAs during home visits. Children six weeks
to six years would be screened periodically by dedicated Mobile Health Teams at the
AnganwadiCenter. Further, in Government and Government aided schools children six
years to 18 years will be screened. This intervention will not only halt deterioration of the
condition but also reduce the OOP expenditure among the poor and the marginalized.
NSOU l CC-PS-9 163

Additionally, the Child Health Screening and Early Intervention Services will also provide
country-wide epidemiological data on the 4 Ds (i.e., Defects at birth, Diseases, Deficiencies,
Developmental Delays and Disabilities). This is important to inform planning in the future,
for area specific services. Public health institutions, private sector partnerships and partnerships
with NGOs will be encouraged to provide specialized diagnostics/tests and services and
to fill gaps in services. Such institutions would be reimbursed for services as per agreed
costs of tests or treatment. In addition to the direct provision of such services, the state
will enable convergence with ongoing schemes of other relevant ministries. Patient transport
network supported under NHM will be used to transport sick children to higher facilities.
Adolescent Health: Adolescent Health programmes include the· following priority
interventions: Iron and Folic Acid (IFA) supplementation, facility-based adolescent health
services, community based health promotion activities, information and counseling on sexual
and reproductive health (including menstrual hygiene), substance abuse, mental health, non-
communicable diseases, injuries and violence including domestic violence. These interventions
will be operationalized through various platforms including Adolescent Friendly Health
Clinics (AFHC), VHNDs, Schools, AnganwadiCenters and Nehru Yuva Kendra Sangathan
(NYKS), Teen Clubs and a dedicated Adolescent Health Day. Outreach activities aimed
at information provision and health promotion will be through Peer educators and mentors.
Provision of nutrition counseling, treatment for RTIs/STIs, appropriate referrals and
commodities such as IFA tablets, condoms, Oral Contraceptive Pills (OCPs) and pregnancy
kits for all adolescent girls and boys at the AFHCs. Information and counseling will be
provided by dedicated and trained counselors. There will be enhanced focus on vulnerable
and marginalized sub-groups. Menstrual hygiene practices will be promoted in rural areas
through use of sanitary napkins. This is to be combined with building adequate knowledge
and information about the product through ASHAs. Provision of Weekly Iron and Folic
acid Supplementation (WIFS) for addressing nutritional anemia among adolescent boys
and girls in rural and urban areas would be part of the National Iron Plus Initiative. The
scheme also includes nutrition and health education sessions, screening of target groups for
moderate/severe anaemia and referring these cases to an appropriate health facility. There
would be provision for biannual de-worming (Albendazole 400mg), six months apart, for
control of helminth infestation, information and counseling for improving dietary intake and
preventing intestinal worm infestation.
Family Planning: Meeting unmet needs for contraception through provisioning of a
range of family planning methods will be prioritized. A differential approach between the
high fertility states and the rest will be followed. In high fertility states the aim is to reduce
fertility to replacement levels and states which have achieved replacement levels will sustain
164 NSOU l CC-PS-9

it. Family planning services would be utilized as a key strategy to reduce maternal and child
morbidities and mortalities in addition to stabilizing population. Post-partum and post abortion
contraception would be a priority. All states would be encouraged to focus on promotion
of spacing methods, especially Intra-Uterine Contraceptive Devices (IUCDs). Postpartum
IUCD will be emphasized as a key spacing method to leverage the increase in institutional
deliveries while ensuring appropriate counseling and quality of services. In addition to
existing providers, AYUSH doctors will also be trained for IUCD services. Male involvement
including male sterilization would be promoted. Distribution of contraceptives at the doorstep
through ASHAs and other channels will be actively promoted. Improved family planning
service delivery including access, availability and quality of services; counseling services
through dedicated counselors; improved technical competence of the providers and increased
awareness among the beneficiaries would be ensured. Month-long national campaigns on
the eve of World Population Day would be continued every year in all states/ districts
across the country. The compensation scheme for sterilization acceptors to cover loss of
wages to the beneficiary and also to the service provider (and team) for conducting
sterilizations would be continued. The clients will be insured in the eventuality of deaths,
complications and failures following sterilization and the providers/ accredited institutions
will be indemnified against litigations in those eventualities under the National Family Planning
Indemnity Scheme (NFPIS). The State Quality Assurance Cell would be responsible for
management of claims under the NFPIS scheme. Additional strategies to be adopted in the
high fertility states are: the promotion of healthy spacing after marriage and between the
births by engaging ASHAs as the motivator and counselor for the community; intensification
of skill building strategies for family planning providers; involvement of private providers as
appropriate to increase the use of spacing and limiting methods; substantial expansion in
facilities and providers offering the full range of contraceptive services; and BCC activities
that focuses on improving access and reducing unmet need.

18.5 Flexible Pool for Control of Communicable Diseases

The NHM will continue to focus on communicable disease control programmes and
disease surveillance. The strategies, interventions and activities under each programme as
also the resource envelopes have been approved already for the years 2013-17. The
strategies, interventions and activities will be appropriately adapted and fine-tuned to meet
the distinct challenges of urban settings. The Flexipool for Communicable Diseases will
facilitate the states in preparing state, district and city specific PIPs. National Vector Borne
Diseases Control Programme (NVBDCP): The NVBDCP is an umbrella programme for
NSOU l CC-PS-9 165

prevention and control of vector borne diseases viz. Malaria, Japanese Encephalitis (JE),
Dengue, Chikungunya, Kalaazar and Lymphatic Filariasis. Of these, Kala-azar and Lymphatic
Filariasis have been targeted for elimination by 2015. The States are responsible for
programme implementation and the Directorate of NVBDCP provides policy guidance and
technical assistance, and support to the states in the form of funds and commodities. The
Government of India provides technical assistance and logistics support including anti-
malaria drugs, DDT, larvicides, etc. under the Programme. State Governments have to
meet other requirements of the programme and to ensure effective programme implementation.
Revised National Tuberculosis Control Programme (RNTCP): The goal is to decrease
mortality and morbidity due to TB and reduce transmission of infection until TB ceases to
be a major public health problem in India. Objectives of the programme are to achieve and
maintain cure rate of at least 85% among New Sputum Positive (NSP) patients and
achieve and maintain case detection of at least 70% of the estimated NSP cases in the
community. The current focus of the programme is on ensuring universal access to quality
TB diagnosis and treatment services to TB patients in the community and now aims to
widen the scope for providing standardized, good quality treatment and diagnostic services
to all TB patients in a patient-friendly environment, in which ever health care facility they
seek treatment from. The programme has made special provisions to reach marginalized
sections including creating demand for services through specific advocacy, communication
and social mobilization activities.
National Leprosy Control Programme (NLEP): Key activities include diagnosis and
treatment of leprosy. Services for diagnosis and treatment (Multi Drug Therapy, MDT) are
provided by all primary health centres and govt. dispensaries throughout the country free
of cost. ASHAs are involved in bringing leprosy cases from villages for diagnosis at PHC,
following up cases for treatment completion, and are paid an incentive for this. To address
the problem in urban areas, Urban Leprosy control activities are being implemented in 422
urban areas with a population of over 100,000. These activities include MDT delivery
services and follow up of patient for treatment completion, providing supportive medicines,
dressing material and monitoring & supervision.
Integrated Disease Surveillance Programme (IDSP): IDSP is being implemented in
all the States for surveillance of out-break of communicable diseases. Surveillance units
have been established in all states/districts (SSU/DSU), with a Central Surveillance Unit
(CSU) established and integrated in the National Centre for Disease Control (NCDC),
Delhi. Weekly disease surveillance data on epidemic disease are being collected from
reporting units such as sub centers, PHC, CHC, DH and other hospitals including government
and private sector hospitals and medical colleges. The data are being collected on „S
166 NSOU l CC-PS-9

syndromic; „P probable; & „L laboratory formats using standard case definitions. Over
90% districts report such weekly data through a dedicated e-mail/portal. The weekly data
are analyzed by SSU/DSU for disease trends. Whenever there is rising trend of illnesses,
it is investigated to manage and control the outbreak.
Communicable diseases need a special focus in urban areas, where disease transmission
is facilitated by high population density. Poor urban management, lack of implementation
of construction/ building laws, issues relating to water supply, poor waste disposal practices
etc have a direct bearing on vector breeding. Diseases like TB which are transmitted
through droplets have a higher incidence in crowded habitats. The NUHM, with a focus
on urban areas, will enable heightened attention on prevention and control activities of
communicable diseases
Integration of communicable disease programmes will occur at six levels:
ü The district plan and facility strengthening plan for disease control programmes will
be integrated with the overall strategy. For each of these programmes, there is a
facility development requirement and a community action component. A strategic
district plan would be able to ensure that both components are put in place.
ü The BCC strategy will be integrated with the BCC strategy for the ASHA and
VHSNC.
ü Each programme could manage and maintain its own information system with the
condition that the data from each system shall be exported to a common data
warehouse. The current web-portal would be modified to allow data entry through
multiple formats and routes of entry, and serve as a portal of access to information
in different systems. The IDSP data, the data from the Disease Control programmes,
from the health care facilities and the mortality data will be taken together to build
an information base of all diseases in the district.
ü The district/city plan will specifically address prevention and control of those
communicable diseases with a significant prevalence specific to a district or city,
other than the national disease control programmes.
ü Progress review of the communicable disease programmes will be undertaken by
the state, city and district health societies.
ü Institutional mechanisms for capacity building, knowledge management and technical
support at state and national levels will be developed, but at the district/city level
activities would be integrated into the broad heads indicated earlier.
Flexible Pool for Non Communicable Diseases (NCD):
ü NCDs account for 53% of the total deaths (10.3 million) and 44% (291· million)
NSOU l CC-PS-9 167

of disability adjusted life years (DALYs) lost in India. By 2030, NCDs are projected
to cause up to 67% of all deaths in India. Most NCDs have common risk factors
such as tobacco use, unhealthy diet, physical inactivity, alcohol use and require
integrated interventions targeting these risk factors. The rising burden of NCDs calls
for concerted public health action. In addition to clinical approaches, preventive
action and policy responses involving multiple stakeholders are required, and the
NHM will need to address the growing burden of non-communicable diseases.
ü The schemes and interventions under the non-communicable diseases that would be
implemented upto the district hospital would be financed through a Flexible Pool for
non-communicable diseases under NHM.
National Programme for Prevention and Control of Cancer, Diabetes,
Cardiovascular Diseases and Stroke (NPCDCS): Primary care includes primary prevention
of hypertension and diabetes, screening for these diseases and secondary prevention by
routine follow up with medication to prevent strokes and ischemic heart disease. This needs
to be linked through two way referral linkages with appropriate secondary and tertiary care
providers. Cardiac Care Units for treatment of Ischemic heart disease, stroke and other
cardiovascular emergencies, and facilities for diagnosis and treatment of chronic kidney
diseases including dialysis will be made available at district hospital level. For cancer
control, one dimension is care at the primary level, i.e. prevention, promotion, and early
detection, assisted access to higher specialist care, guidance and support. Another dimension
is to create a network of hospitals that could provide free care for cancer patients. Most
of the latter is in the tertiary sector, but a number of district hospitals should also be able
to provide cancer treatment. Facilities for screening of common cancers (Cervical Cancer,
Breast Cancer and Oral cancer) and Day care centres for chemotherapy prescribed by
Tertiary level cancer hospitals would be provided. o National Programme for the Control
of Blindness (NPCB): The NPCB would be part of the NCD flexi-pool under the overarching
umbrella of the NHM. The focus in the 12th Plan period would be to consolidate gains
in controlling cataract blindness and also initiate activities to prevent and control blindness
due to other causes. Key strategies are to increase public awareness about prevention and
timely treatment of eye ailments; with a special focus on illiterate women in rural areas;
continuing emphasis on primary healthcare (eye care) by establishing Vision Centers in all
PHCs; active screening of population above 50 years through screening camps; transporting
operable cases to eye care facilities; screening of school age children for identification and
treatment of refractive errors (in synergy with the RBSK); with special attention in under-
served areas; provision of assistance for other eye diseases like Diabetic Retinopathy,
Glaucoma and childhood blindness through use of laser techniques, corneal transplantation,
168 NSOU l CC-PS-9

Vitreoretinal Surgery, construction of dedicated Eye Wards and Eye Operation Theatres
(OT) in District Hospitals in NE States and few other States as needed, use of Mobile
Ophthalmic Units, at district level for patient screening & transportation; and strengthening
of existing Eye Banks and Eye Donation Centres. NGOs will be involved and the private
sector will be contracted-in where required.

18.6 Governance and Accountability Framework

The NHM would have the following framework for ensuring accountability: -
At the national level, the Mission Steering Group would continue to exercise the main
programme and governance oversight.
At the state level, the State Health Mission and the Governing Body (GB) of the State
Health Society and the District/City Health Society would serve as the primary mechanism
of holding programme executives accountable.
The GB would meet annually, while the Executive Committee (EC) would meet at least
thrice a year. Regular meetings of the GB and EC with adequate preparation, reports,
transparency and multi-stakeholder participation are essential. The Society is also answerable
through its Chairperson and Member Secretary to the Legislature and Parliament.
The Statutory Audit report would mandatorily be placed before the GB of the SHS
every year and shall report compliance on observations of statutory auditor.

18.7 Achievements under the National Health Mission (NHM)

As of June 2021
Health Human Resources Augmentation 2,74,289
Functional FRUs (First Referral Units) 3,001
Operational Mobile Medical Units 1,634
Operational Ambulances 27,719
Accredited Social Health Activists (ASHAs) 10,72,148
No. of PHCs working on 24X7 basis 10,951
Setting up of RogiKalyanSamitis 33,757
Village Health Sanitation and Nutrition Committees constituted 5, 55,206
NSOU l CC-PS-9 169

Source: GoI Press Release dated 17 December 2021

On 17th December 2021, in Lok Sabha the Government of India highlighted the following
achievements under NHM.
l Improvement in Health indices – MMR fell from 556 per lakh live births to 113 per
lakh. The under-5 Mortality rate also declined from 80 in 1990 to 32 in 2018.
l Reduction in out-of-pocket expenditure on health from 64.2% in 2013-14 to 48.8%
in 2017-18. This is cited as one of the key improvements to the public health
infrastructure by the government. Improvement is also seen in the proportion of the
population seeking public health care.
l Improvements related to the incidence of the disease include – Tuberculosis, Malaria,
Kala Azar, Dengue etc.

18.8 Conclusion
National Health Mission has been a historical milestone in the country’s healthcare
planning. The scheme has been successful in establishing an institutional framework and a
mechanism of facility-level, need-based planning through concerted and coordinated
efforts. However, despite the improvements and the mechanisms established, there are
gaps which make it difficult to gauge the impact of the strategy thereby limiting translation
of learning into long-term policy and planning. It is, therefore, imperative to identify the
weaknesses and opportunities from NHM through continuous assessments and data reviews
in the coming years to make the programme even more meaningful in the near future.

18.9 Summing up
l Health is a crucial resource for everyday life
l WHO defines Health as”physical, mental, and social well-being, and not merely the
absence of disease and infirmity”.
l The National Rural Health Mission was launched in 2005.
l National Health Mission was launched by the Government of India in 2013, by
merging the existing National Rural Health Mission (NRHM) with the newly launched
National Urban Health Mission (NUHM).
l National Health Mission has proved to be a successful program, as it has improved
the availability of and access to quality health care for people, especially for those
in vulnerable situation.
170 NSOU l CC-PS-9

18.10 Probable Questions

Essay Type Questions
1. Define Health. What are the different ways in which we can ensure good health for
all in our society?
2. Write a brief note on RMNCH+A.
3. Discuss the goals of National Health Mission.
4. How can National Health Mission help to combat the Non Communicable diseases?
Short Questions
1. Give an account of the Governance and Accountability framework of National
Health Mission.
2. Write a short note on the achievements of National Health Mission of India.
Objective Questions
1. What is the full form of WHO?
2. What does NHM stand for?
3. In which year was National Rural Health Mission launched?
4. What is the full form of JSY?
5. What is the full form of NUHM?

18.11 Further Reading

1. Taneja G, Sridhar VS, Mohanty JS, et al India’s RMNCH+A Strategy: approach,
learnings and limitations BMJ Global Health 2019; 4:e001162.
2. https://factly.in/data-share-of-central-health-expenditure-under-nhm-reduces-as-the-
government-launches-new-health-schemes/ (Data: Share of Central Health expenditure
under NHM reduces as the government launches new health schemes -
by BharathKancharla On February19, 2022)
3. Nationl Health Mission Report, 2017.
4. “World Bank. 1993. World Development Report 1993: Investing in Health. New
York: Oxford University Press. © World Bank. https://openknowledge.worldbank.org/
handle/10986/5976 License: CC BY 3.0 IGO.”
NSOU l CC-PS-9 171

Unit 19 o Right to Food Security

Structure
19.1 Objective
19.2 Introduction
19.3 Right to Food
19.4 Food Security and Nutrition
19.5 Food Security in India
19.6 Conclusion
19.7 Summing up
19.8 Probable Questions
19.9 Further Reading

19.1 Objective
After studying this unit. the learners will be able to
l know about the concept of the Right to Food
l develop an insight to chalk out ways in which the problem of food scarcity may be
solved and no one is deprived of this basic right in our society.

19.2 Introduction
The United Nations declared October 16 as the World Food Day. This day is observed
with an aim to spread awareness about eradicating hunger and ensuring food security for
all. Food security can be understood as the availability of food and individuals’ ability to
access it. According to the United Nations’ Committee on World Food Security, food
security is defined as –”all people, at all times, have physical, social, and economic access
to sufficient, safe, and nutritious food that meets their food preferences and dietary needs
for an active and healthy life”.The food must be available for all, irrespective of class,
gender or region, as it is the basic Human Right for all. At the 1974 World Food
Conference, the term “food security” was defined as the - “availability at all times of
adequate, nourishing, diverse, balanced and moderate world food supplies of basic
foodstuffs to sustain a steady expansion of food consumption and to offset fluctuations in
172 NSOU l CC-PS-9

production and prices” . Further the first World Food Summit, held in 1996, stated that,
Food Security “exists when all people, at all times, have physical and economic access to
sufficient, safe and nutritious food to meet their dietary needs and food preferences for an
active and healthy life.”

19.3 Right to Food

It is the obligation of a state to ensure human rights, including the right to food, under
international law. These obligations are established by The International Covenant on
Economic, Social and Cultural Rights (United Nations, 1966). Article 11 ensures the right
to an adequate standard of living, including food, and the right to be free from hunger,
while Article 12 establishes the right of everyone to the enjoyment of the highest attainable
standard of physical and mental health. States are obliged to respect the right to food
by not taking any measures that prevent access to food, by ensuring that individuals are
not deprived of access to adequate food, and by proactively carrying out activities that
strengthen people’s access to resources and means to ensure food security. In cases
where people are unable to realize the right to food, states are obliged to provide that
right directly through food aid but should facilitate future self-reliance and food security.
The Committee on World Food Security (CFS) at the UN-FAO adopted the Voluntary
Guidelines for the Progressive Realization of the Right to Adequate Food in the Context
of National Food Security (Right to Food Guidelines) in 2004, providing a precedent for
the inclusive and participatory approach to governance of FSN. Spurred by successive
global food, financial and economic crises caused by the 2007–2008 food price spike,
the CFS underwent a reform in 2009. The mandate to contribute to the progressive
realization of the Right to Adequate Food was included in the vision statement of the
reformed CFS and has since been reaffirmed in most substantive CFS policy decisions.
The right to food has been included in several policies many jurisdictions. Lets take
an example, the Indian, constitution guarantees the protection of life and requires the state
to raise the level of nutrition of all citizens. In 2001, civil society groups went to court
to demand that the right to food for all citizens was recognized, and their case was
upheld by the Supreme Court. As a result, the various food, social security and livelihood
programs enacted by the state in India have become a legal entitlement rather than a
benefit programme.
NSOU l CC-PS-9 173

19.4 Food Security and Nutrition

Food security “exists when all people, at all times, have physical and economic access
to sufficient, safe and nutritious food to meet their dietary needs and food preferences for
an active and healthy life” (FAO, 1996). Conceptually, food security and nutrition overlap,
with food security being a necessary but not sufficient condition for nutrition security. The
four pillars of food security and nutrition are articulated by FAO (1996) and other
organizations to include the following:
1. Availability: Sufficient food supply of appropriate quality.
2. Access: Adequate resources (including infrastructure and economic resources) to
actually acquire appropriate and nutritious foods (i.e., the presence and functioning
of appropriate entitlements).
3. Utilization: The ability to actually consume and benefit from an adequate diet, which
is strongly affected by overall health status, clean water, appropriate sanitation, and
health care (i.e., non-food inputs in food security).
4. Stability: Consistency in access to adequate, nutritious food and non-food
resources—in other words, the avoidance of or resilience to natural, financial, or
social shocks as well as stability in food security throughout seasonal or gradual
changes.
Access to food is understood by a number of scholars. It has two critical dimensions:
asset-based agency, currently emphasized under access as the second FSN pillar
above; and institution-based agency, essentially concerned with where powers reside,
and their transfer when necessary to increase empowerment.
Institution-based agency is central to debates around the democratization of food
systems. Since the four pillars were first articulated, increasing evidence indicates
a need for more explicit ways of addressing critical aspects of human empowerment,
recognition of rights, and reinforcement of community capacities (in particular with
respect to water and sanitation, infant and young child nutrition, and women’s
education) to make progress in achieving FSN outcomes. The methodological
framework of this study incorporates a fifth FSN pillar on “agency,” in keeping with
its emergence as a critical dimension.
5. Agency: The empowerment of citizens in defining and securing their own food and
nutritional security, requiring socio-political systems wherein policies and practices
may be brought forth by the will of citizens and be reflected in governance structures
to enable the achievement of overall food and nutrition security. This includes
174 NSOU l CC-PS-9

access to accurate information, the right to such information and to other aspects
of food security, and the ability to secure such rights.

19.5 Food Security in India

Public Distribution System (PDS) was introduced by India government to abolish
scarcity of food grains. PDS supports the consumers from price rise by providing them
cheap food grains. The major commodities supplied by the public distribution system are
rice, wheat, kerosene, sugar etc… PDS has become one of the most important policies
of India government. The Central government and the State government share the
responsibility of smooth running of PDS. PDS includes a chain of shops called Fair price
shops or Ration shops, through which the consumers can buy food grains at affordable
prices, using their ration cards. The Central government has the responsibility to collect the
food grains from the farmers and to allocate it to the states. Thus it is also a part of India’s
agricultural policy. The central government procures food grains from the farmers at a
minimum support price (MSP) through the Food Corporation of India (FCI). The state
governments share the responsibility of identification of the needy people, the distribution
of ration cards and the distribution of ration items among them. Various plans are being
introduced to streamline the PDS and to improve its efficiency. Till 1992 PDS was having
a general form which considered all its consumers equally without any specific targets. In
1992 it got revised and became RPDS (Revamped public distribution system) to focus on
the poor section of the society. In 1997 RPDS became TPDS (targeted public distribution
system) which divided the households into APL (above poverty line) and BPL (below
poverty line) to supply subsidized food grains among the needy people. Antyodaya Anna
yojna was launched in 1st April 2000 to support the poorest among the poor. National
Food Security Act-2013 is the last among them. The act was passed as a bill in the
parliament on 10th September 2013 and it aims to provide legal right to food to the poor.
As per the provision of the bill, it is proposed to provide food grains under TPDS at a
subsidized prices of Rs. 3/2/1 per kg for rice, wheat and coarse grains among the needy
people
The National Food Security Act, 2013 aims to provide subsidized food grains to
approximately two-third of the country’s population. The enactment of this landmark
legislation, brought a paradigm shift in approach to food security, from welfare to rights-
based approach.
Now let us take a quick glance at the salient features of the act:
1. The Act covers up to 75% of rural and 50% of the urban population with uniform
entitlement of 5kg/person/month ration.
NSOU l CC-PS-9 175

2. The state/UTs shall identify the eligible households.

3. Pregnant Women and Lactating Mothers (PWLM) shall be entitled to receive
maternity benefits of not less than 6000 rupees.
4. Pregnant Women and Lactating Mothers and children in the age group of 6 months
to 14 years will be entitled to meals as per prescribed nutritional norms under
ICDS, MDM (PM-Poshan).
5. Eldest women of the household of age 18 years or above to be deemed as head
of the household for the purpose of issuing ration cards.
6. Act has provisions for grievance redressal at district and state level.
7. The Act makes it compulsory to carryout social audits, setting up of vigilance
committees, and maintain records etc.
The Department of Food and Public Distribution under the Ministry of Consumer
Affairs, allocated Rs 1,50,000 crore, or 7.6% of the government’s total expenditure for
providing Food Subsidy in the year 2017-18. Food subsidy has been the largest
component of the Department’s expenditure (94% in 2017-18), and has increased six-
fold over the past 10 years. This subsidy is used for the implementation of the
National Food Security Act, 2013 (NFSA), which provides subsidised food grains
(wheat and rice) to 80 crore people in the country. The NFSA seeks to ensure
improved nutritional intake for people in the country. The NFSA guarantees food grains
i.e. wheat and rice to beneficiaries, to ensure nutritious food intake. Over the last two
decades, the share of cereals or food grains as a percentage of food consumption has
reduced from 13% to 8% in the country, whereas that of milk, eggs, fish and meat
has increased. This indicates a reduced preference for wheat and rice, and a rise in
preference towards other protein rich food items. The subsidy on food is provided to
people below the poverty line. Over the years, the expenditure on food subsidy has
increased, while the ratio of people below poverty line has reduced. A similar trend
can also be seen in the proportion of undernourished persons in India, which reduced
from 24% in 1990 to 15% in 2014. These trends may indicate that the share of
people needing subsidised food has declined.
A survey was conducted in 2011, where it was noted that people complained
about receiving poor quality food grain which had to be mixed with other grains to be
edible. There have also been complaints about people receiving food grains containing
alien substances such as pebbles. Poor quality of food may impact the willingness of
people to buy food from fair price shops, and may have an adverse impact on their
health.
176 NSOU l CC-PS-9

The Ministry has stated that while regular surveillance, monitoring, inspection and random
sampling of all food items is under taken by State Food Safety Officers, separate data for
food grains distributed under PDS is unavailable. In the absence of data with regard to
quality testing results of food grains supplied under PDS, it may be difficult to ascertain
whether these food items meet the prescribed quality and safety standards.
According to a study conducted in 2011,it was estimated that 46.7% of the beneficiaries
remain deprived of the food grain to which they are actually entitled. The reasons for such
deprivation are-
(i) Pilferage during transportation of food grains,
(ii) Diversion at fair price shops to non-beneficiaries,
(iii) Exclusion of entitled beneficiaries from the list.
In 2016, the Comptroller and Auditor General, after an investigation found that there
were many states which did not complete the process of identifying beneficiaries, and thus
it was also noted that inclusion and exclusion errors had been made in the beneficiary lists.
Subsequently, in February 2017, the Ministry made it mandatory for beneficiaries to use
their Aadhaar, as proof of identification for receiving the food grains. In this way, the
government made efforts to remove fake ration cards, and ensure better delivery of food
grains. The government then issued digitalized ration cards after linking it with Adhaar, so
as to make the whole process more authentic.

19.6 Conclusion
According to the Organisation for Economic Co-operation and Development (OECD)
India has one of the lowest per capita daily supply of calories, protein and fat. One of the
biggest challenge of contemporary India is the high rates of child malnutrition and the largest
number of undernourished people in the world, even though our nation is emerging as one
of the fastest growing economies. India is an exporter of foodgrains to different developed
countries for more than a decade now, unfortunately India has malnutrition levels almost
double the levels of many countries in Africa. This problem needs a multi-disciplinary
approach, which may include women’s empowerment, education, health, and safe drinking
water, provisions for nutritious food, sanitation, and hygiene. The National Food Security
Act (NFSA), 2013, covering two-third of the Indian population with subsidised food and
universal entitlements for women and children, is definitely a crucial step towards addressing
the food problem, but there is a need for its speedy implementation and take up steps to
avoid exclusion of poor households, and setting up an independent grievance redressal
NSOU l CC-PS-9 177

mechanism. Strengthening the proper implementation of the National Food Security Act
(NFSA) and thereby ensuring the need of the Right to food security for allis hour.

19.7 Summing up
l The United Nations declared October 16 as the World Food Day,with an aim to
spread awareness about eradicating hunger and ensuring food security for all.
l The food must be available for all, irrespective of class, gender or region, as it is
the basic Human Right for all.
l The Indian constitution guarantees the protection of life and requires the state to
raise the level of nutrition of all citizens, thus , the various food, social security and
livelihood programs enacted by the state in India have become a legal entitlement
rather than a benefit programme.
l The four pillars of food security and nutrition as articulated by FAO (1996) are-
Availability, Accessibility, Utilization and Stability.
l Public Distribution System (PDS) was introduced by India government to abolish
scarcity of food grains.
l The National Food Security Act, 2013 aims to provide subsidized food grains to
approximately two-third of the country’s population.
l The National Food Security Act (NFSA), 2013, covering two-third of the Indian
population with subsidised food and universal entitlements for women and children,
is definitely a crucial step towards addressing the food problem.

19.8 Probable Questions

Essay Type Questions
1. Discuss the National Food Security Act, 2013.
2. Write a short note on food security in India.
3. Why do the beneficiaries remain deprived of their right to Food gran in our country?
4. What are the measures taken by Indian Government to secure the Right to Food
in our country?
Short Questions
1. How can we tackle the problem of scarcity of food in a country like India?
2. Write a short note on food security in India.
178 NSOU l CC-PS-9

3. Discuss the Public Distribution System (PDS) in India.

Objective Questions
1. In which year did the first World Food Summit take place?
2. What is the full form of FAO?
3. In which year was NFSA passed in India?
4. What is the full form of TPDS?
5. What does OECD stand for?

19.9 Further Reading

1. Chomba, S., Nathan, I., Minang, P., and Sinclair, F. (2015). Illusions of empowerment?
Questioning policy and practice of community forestry in Kenya. Ecol. Soc. 20:3. doi:
10.5751/ES-07741-200302
2. Deepa Ravi , Ambili S Nair, 2019, The Impact of National Food Security Act-2013
on the Public Distribution System: A Case Study of Kerala State, International
Journal Of Engineering Research & Technology (Ijert) Volume 08, Issue 06 (June
2019),
3. Rocha, C. (2009). Developments in national policies for food and nutrition security
in Brazil. Dev. Policy Rev. 27, 51–66. doi: 10.1111/j.1467-7679.2009.00435.x
4. Sampson D, Cely-Santos M, Gemmill-Herren B, Babin N, Bernhart A, Bezner Kerr
R, Blesh J, Bowness E, Feldman M, Gonçalves AL, James D, Kerssen T, Klassen
S, Wezel A and Wittman H (2021) Food Sovereignty and Rights-Based Approaches
Strengthen Food Security and Nutrition Across the Globe: A Systematic Review. Front.
Sustain. Food Syst. 5:686492. doi: 10.3389/fsufs.2021.686492
5. Sen, A. (1981). Poverty and Famines: An Essay on Entitlement and Deprivation.
Oxford; New York, NY: Clarendon Press; Oxford University Press
6. Report of the High Level Committee on Reorienting the Role and Restructuring
of Food Corporation of India, January 2015, http://www.fci.gov.in/app2/webroot/
upload/News/Report % 20 of % 20 the % 20 High % 20 Level % 20 Committee
% 20 on % 20 Reorienting % 20 the % 20 Role % 20 and % 20 Restructuring %
20 of % 20 FCI_English_1.pdf.
7. Annual Report 2016-17, Department of Food & Public Distribution, Ministry of
Consumer Affairs, Food & Public Distribution, http://dfpd.nic.in/writereaddata/images/
annual-140217.pdf.
NSOU l CC-PS-9 179

Unit 20 o MGNREGA
Structure
20.1 Objective
20.2 Introduction
20.3 Objective of MGNREGA
20.4 Key Features of MGNREGA
20.5 The Social Benefits of MGNREGA
20.6 The Ecological Benefits
20.7 Review Report of the Standing Committee
20.8 Recommendations of the Standing Committee
20.9 Conclusion
20.10 Summing up
20.11 Probable Questions
20.12 Further Reading

20.1 Objective
After studying this unit, the learners will be able to
l know about the right to livelihood.
l know about MGNREGA, a scheme particularly meant for the people living below
poverty level by guaranteeing them 100 days of work.

20.2 Introduction
The Indian Constitution has the provision for right to life and livelihood under article 21
to all the people by securing the right to work to the citizens, a living wage, social security
and a decent standard of living which is in accordance to article 41-43 and to protect the
environment, which is covered under, article 48A and 51). In order to achieve these
obligations, the government of India made an act that legally promised to provide 100 days
of wage employment in every financial year to unskilled persons of every rural household.
180 NSOU l CC-PS-9

This act came to known as the National Rural Employment Guarantee Act-2005. This act
also provides the enhancement of livelihood security to each household in rural areas and
put emphasis on conservation of land and water (the gazette of India). The act confers
entitlements upon people of the village and forward. It was initially started in 200 districts
on 2nd February 2006, and later all district of India were covered from 1 April 2008. So,
now it is about a decade long journey of this act, and it is need of the time to analyze its
positive outcomes as well as shortcomings.Today this act is known as Mahatma Gandhi
National Rulal Employment Guarantee Act (MGNREGA).
MGNREGA was implemented in phases, starting from February 2006, and at present
it covers all districts of the country with the exception of those that have a 100% urban
population. The Act provides a list of works that can be undertaken to generate employment
related to water conservation, drought proofing, land development, and flood control and
protection works. MNREGA is culmination of various rural Wage Employment Programmes
such as Nation Rural Employment Programme (1980), Rural Landless Employment
Guarantee Programme (1983), Jawahar Rozgar Yojana (combining NREP & RLEG) (1989),
Employment Assurance Scheme (1993) Jawahar Gram SamridhiYojana (1989), Sampooran
Gramin Rozgar Yojana (merged EAS& JGSY,2001), Food for Work Programme (2004).
The Thrust areas of the Programme: Census data shows that nearly 68.84 % of India’s
population still resides in rural areas. Agriculture is clearly the backbone of rural economy
and unfortunately agriculture in India is subject to seasonal vagarities of weather and can
be characterized as a “Gamble in Monsoon”. 68% of the net sown area is rain fed.
Because of the seasonality it was presumed by the law makers that guaranteed public
employment for 100 days in a rural household would guarantee security of livelihood as
during the harvest season, labour demand is manifold as compared to the lean season when
labour demand is low. Nevertheless, the thrust areas of MGNAREGA are –
i) Reducing or alleviating chronic rural poverty.
ii) Addressing the problem of - Drought, Deforestation, Soil erosion etc.
iii) Generating productive and durable rural assets.
iv) Protecting the environment.
v) Empowering rural women.

20.3 Objective of MGNREGA

MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Programme) is
a crucial programme of the Indian Government. The Act of the Govt. has given statutory
status to the programme and has the following salient features:-
NSOU l CC-PS-9 181

(1) The Scheme Guarantees 100 days of employment to a rural household, whose
adult members are willing to work or Volunteer to do unskilled manual labour.
(2) Only productive works are envisaged to be taken up under the programme which
may contribution towards social equity and their ability to create permanent assets.
All works and transactions are subject to social audit by the Gram Sabha or
appropriate village level committees.
(3) Wages may be paid in cash or kind with a provision for deduction to the extent
of 5% for the benefit such as health insurance, accident insurance maternity benefits
and social security schemes. The state councils constituted as per provisions of the
Act can make guidelines and recommendations qua the wage determination and
payment.
(4) Job is to be provided within a radius of 5 km of the registered household. Special
provisions are mandated at worksites to look after children under the age of six
year and women engaged under the Act.
(5) There is a provision of payment of compensation if the registered household is not
provided employment or job within days of making the request for job after
issuance of Job card and registration. This provision is conspicuous for its role in
maintaining sustainability of livelihood in rural areas.
(6) MGNREGA aims to address the causes of chronic poverty and thus ensuring
sustainable development.
(7) Finally, there is an emphasis on strengthening the process of decentralisation through
giving a significant role to Panchayati Raj Institutions (PRIs) in planning and
implementing these works.

20.4 Key Features of MGNREGA

l Legal right to work: Wages must be paid according to the wages specified for
agricultural labourers in the state under the Minimum Wages Act, 1948, unless the
central government notifies a wage rate (this should not be less than Rs 60 per day).
At present, wage rates are determined by the central government but vary across
states, ranging from Rs 135 per day to Rs 214 per day.
l Time bound guarantee of work and unemployment allowance: Employment
must be provided with 15 days of being demanded failing which an ‘unemployment
allowance’ must be given.
l Decentralised planning: Gram Sabhas must recommend the works that are to be
182 NSOU l CC-PS-9

undertaken and at least 50% of the works must be executed by them. PRIs are
primarily responsible for planning, implementation and monitoring of the works that
are undertaken.
l Work site facilities: All work sites should have facilities such as crèches, drinking
water and first aid.
l Transparency and accountability: There are provisions for proactive disclosure
through wall writings, citizen information boards, Management Information Systems
and social audits. Social audits are conducted by gram Sabhas to enable the
community to monitor the implementation of the scheme.
Funding: Funding is shared between the centre and the states. There are three material
and administrative costs. The central government bears 100% of the cost of unskilled
labour, 75% of the cost of semi-skilled and skilled labour, 75% of the cost of materials and
6% of the administrative costs.

20.5 The Social Benefits of MGNREGA

The MGNREGA programme has achieved many social and economic achievements
which are being reported by various research scholars and government institutions
(MGNREGA Sameeksha, 2012) –
Provided guaranteed wage employment of 100 days in a financial year, thus enhanced
social security and living standards. It has provided around Rs. 1, 10,700 crore as worker
wages from FY 2006 up to FY 2011–12. It reveals a positive impact of this transfer on
household income, monthly per capita expenditure, food security and health of the
beneficiaries. In Chhattisgarh, Orissa, Jharkhand and Andhra Pradesh, income of rural
labour households has gone up as a result of this programme.
Provided work opportunities for women by reserving 1/3 of employment, which enabled
women empowerment in rural areas. Many self-help groups and civil society organisations
have been encouraging women participation in MGNREGA.
Research reveals that this programme has led to an increase in agriculture wage rates
and has increased the real daily agricultural wage rates by 5.3 per cent. The wage effect
is equal for both men and women and is in favour of unskilled labour. .
The Scheme has prevented migration towards cities and has given work opportunity at
native place and this has increased household income which is used for food security,
education of dependents, health care and debt repayments.
Several studies reflect that MGNREGA has succeeded in high participation from
NSOU l CC-PS-9 183

marginalised groups including the SCs and STs. At the national level, the share of SCs and
STs in the work provided under MGNREGA has been high at 40–50 per cent in each year.
In FY 2011–12 alone, 40 per cent of the total person-days of employment (84 crore out
of 209 crore) were provided to SCs and STs.

20.6 The Ecological Benefits

The MGNREGA programme also put emphasis on conservation efforts for protection
of land and water. Sufficient work has been done through MGNREGA for water harvesting,
groundwater recharge, drought-proofing, and flood protection. Thus the scheme has
successfully done a lot for conservation and protection of environment
This programme enhanced the capability of natural resources like soil, water bodies,
plantations, irrigation facilities, drought resistance, flood control, roads to connect the rural
areas.
By the creation of sustainable rural assets, water- conservation and forestry works,
MGNREGA contributed to ecological restoration and generate environmental benefits through
increased livelihood security, especially for rural women to climate change and other shocks
(MGNREGA Sameeksha, 2012).
One of the study revealed that MGNREGA works across eight districts of Bihar,
Gujarat, Kerala and Rajasthan the water related assets like irrigation, ponds, wells were
found durable and they were fully utilized (MGNREGA Sameeksha, 2012).
Challenges: However, the Committee found several issues with the implementation of
the scheme. As Table 1 (above) shows, the average number of days of employment
provided to households has been lower than the mandated 100 days, and has been
decreasing since 2010-11. Key issues that the Committee raised include
l Fabrication of job cards: While as many as 12.5 crore households have been
issued job cards out of an estimated 13.8 crore rural households ( as per the 2001
census), there are several issues related to existence of fake job cards, inclusion of
fictitious names, missing entries and delays in making entries in job cards.
l Delay in payment of wages: Most states have failed to disburse wages within 15
days as mandated by MGNREGA. In addition, workers are not compensated for
a delay in payment of wages.
l Non-payment of unemployment allowances: Most states do not pay an
unemployment allowance when work is not given on demand. The non-issuance of
dated receipts of demanded work prevents workers from claiming an unemployment
184 NSOU l CC-PS-9

allowance.
l Large number of incomplete works: There has been a delay in the completion
of works under MGNREGA and inspection of projects has been irregular.
Implementing agencies were able to complete only 98 lakh works out of 296 lakh
works.
l Other key challenges include poor quality of assets created, several instances of
corruption in the implementation of MGNREGA, and insufficient involvement of
PRIs.

20.7 Review Report of the Standing Committee

The Standing Committee on Rural Development and Panchayati Raj (Chair: Mr.
Prataprao Jadhav) presented its report on ‘Critical Evaluation of Mahatma Gandhi National
Rural Employment Guarantee Act (MGNREGA)’ on February 8, 2022. Key observations
and recommendations of the Committee include:
l Increase in number of days of work: Under the scheme, state governments can
ask for 50 days of work, in addition to the guaranteed 100 days, in case of
exigencies arising from natural calamities. The Committee noted that the scheme
should be revamped to meet the challenges in the wake of COVID-19. It
recommended to increase the guaranteed days of work under the scheme from 100
days to 150 days.
l Revision of permissible works: The Committee observed that the ambit of
permissible works under the scheme requires frequent revision. It recommended
the Ministry of Rural Development to consult stakeholders and include area-specific
works under MGNREGA as per local needs. These may include, for instance,
construction of bunds to stop land erosion during floods, and boundary works for
agricultural fields to protect them from grazing animals.
l Uniform wage rate: Wage rates notified under MGNREGA range from Rs 193
to Rs 318 in different states/UTs. The Committee noted that this fluctuation in wage
rates across states/UTs is not justified. It recommended devising a mechanism for
a unified wage rate across the country.
l Increase in wages commensurate with inflation: The Committee noted that
beneficiaries of MGNREGA generally belong to poor and marginalised sections of
society. It observed that the nominal wages under MGNREGA discourage
beneficiaries and propel them to either seek more remunerative work or migrate to
NSOU l CC-PS-9 185

urban areas. This is reflected by the fact that while 755 lakh households were
provided employment in 2020-21, only 72 lakh households completed 100 days
of employment. The Committee noted that indexing MGNREGA wages to Consumer
Price Index (CPI)-Rural as opposed to CPI-Agricultural Labour, as recommended
by Dr.Nagesh Singh Committee, has not been implemented. The Standing Committee
recommended the Ministry to review its position and increase the wages.
l Delayed payment of wages: Wages under MGNREGA are paid by the central
government. Beneficiaries become eligible for receiving wages within 15 days from
the date of closure of muster rolls on completion of work. The Committee noted
that there is inordinate delay in payment of wages to beneficiaries. This is mainly
due to failed payment transfer arising from: (i) inactive Aadhaar, and (ii) closed,
blocked, or frozen bank account.
l Delay in compensation: In case of delay in payment of wages under MGNREGA,
beneficiaries are entitled to compensation at the rate of 0.05% of unpaid wages per
day for the duration of delay. The Committee noted that payment of delay
compensation is not adhered to in most places in the country. It recommended the
Ministry to ensure strict compliance in payment of compensation.
l Unemployment allowance: Under MGNREGA, persons who apply for but are
not provided with work within 15 days are entitled to a daily unemployment
allowance. State governments determine the rate of this allowance. The Committee
observed that in 2019-20 and 2020-21, only Rs 12,000 and Rs 3,000 respectively
was paid as unemployment allowance. It urged the Ministry to ensure implementation
of the provision regarding unemployment allowance.
l Social audits: Under MGNREGA, the Gram Sabha must conduct regular social
audits of all projects taken up within the Gram Panchayat. The Committee observed
that implementation of this provision is poor. In 2020-21, only 29,611 Gram
Panchayats were audited at least once. The Committee urged the Ministry to
ensure that Gram Panchayats do not go unaudited during the financial year. The
Committee also found that social audit reports are not publicly available. It
recommended placing these reports in the public domain promptly after the audit
exercise is over.
l Appointment of ombudsperson: Under the Act, there should be an ombudsperson
for each district who will receive grievances, conduct enquiries, and pass awards.
The Committee noted expected ombudsmen have not been appointed in the state,
which shows poor coordination between central and state nodal agencies. It
observed punitive measures can be imposed or funds can be stopped for states for
186 NSOU l CC-PS-9

failing to appoint ombudsmen. The Committee recommended the Department of

Rural Development to bring on board all state governments to comply with
appointment of ombudsmen.

20.8 Recommendations of the Standing Committee

The Committee made the following recommendations, based on its findings:
l Regulation of job cards: Offences such as not recording employment related
information in job cards and unlawful possession of job cards with elected PRI
representatives and MGNREGA functionaries should be made punishable under
the Act.
l Participation of women: Since the income of female workers typically raises the
standard of living of their households to a greater extent than their male counterparts,
the participation of women must be increased through raising awareness about
MGNREGA.
l Participation of people with disabilities: Special works (projects) must be identified
for people with disabilities; and special job cards must be issued and personnel
must be employed to ensure their participation.
l Utilisation of funds: The Committee found that a large amount of funds allocated
for MGNREGA have remained unutilised. For example, in 2010-11, 27.31% of
the funds remained unutilised. The Committee recommends that the Department of
Rural Development should analyse reasons for poor utilisation of funds and take
steps to improve the same. In addition, it should initiate action against officers
found guilty of misappropriating funds under MGNREGA.
l Context specific projects and convergence: Since states are at various stages
of socio-economic development, they have varied requirements for development.
Therefore, state governments should be allowed to undertake works that are
pertinent to their context. There should be more emphasis on skilled and semi-
skilled work under MGNREGA. In addition, the Committee recommends a greater
emphasis on convergence with other schemes such as the National Rural Livelihoods
Mission, National Rural Health Mission, etc.
l Payment of unemployment allowance: Dated receipts for demanded work should
be issued so that workers can claim unemployment allowance. Funds for
unemployment
l Regular monitoring: National Level Monitors (NLMs) are deployed by the Ministry
NSOU l CC-PS-9 187

of Rural Development for regular and special monitoring of MGNREGA and to

enquire into complaints regarding mis-utilisation of funds, etc. The Committee
recommends that the frequency of monitoring by NLMs should increase and
appropriate measures should be taken by states based on their recommendations.
Additionally, social audits must mandatorily be held every six months. The Committee
observes that the performance of MGNREGA is better in states with effective
social audit mechanisms.
l Training of functionaries: Training and capacity building of elected representatives
and other functionaries of PRIs must be done regularly as it will facilitate their
involvement in the implementation of MGNREGA.

20.9 Conclusion
The scheme no doubt has immense scope and impact and results in social welfare
aspect are encouraging if the aberrations here and there are taken into stride. The government
should strictly discourage educated people from performing any unskilled work. “Instead
of employing these people for unskilled work, they can be utilized for jobs that would
justify their educational qualifications. The system should evolve to incorporate the interests
of qualified stakeholders instead of involving them in operational activities.” Implementation
of MGNREGA in comparatively affluent states of Punjab and Haryana which is the destination
of migrants during harvesting and sowing season is also being watched closely. The successful
implementation of the scheme elsewhere may stem the tide of temporary migration resulting
in costly labour in these states during peak agricultural season which in turn may lead to
quantum leap in market determined wage rates making the Minimum Wages under the Act
less attractive for local unskilled labour and this might lead to disenchantment of beneficiaries
during lean season causing intra state migration from rural to urban areas. Further in
schemes of the magnitude of MGNREGA it won`t be practical to expect uniformity in
delivery and execution but certain safeguards have to be standardised and parameters fixed
so as to increase efficacy of this magnanimous Programme. The Mahatma Gandhi National
Rural Employment Guarantee Act,2005 provides for the enhancement of livelihood security
to each household in rural areas and put emphasis on conservation of land and water. Many
studies unfold its positive outcomes such as social benefits viz. social security, livelihood
protection, increased wage rates, decreased migration, fostering social and gender equality
and ecological benefits like water harvesting, groundwater recharge, drought-proofing, and
flood protection, increased soil fertility, irrigation area and agricultural production, environment
security and biodiversity conservation. This programme has led to significant changes in the
188 NSOU l CC-PS-9

lives of rural people and environment conservation. This scheme has become a tool for
sustainable development in India.

20.10 Summing up
l The Indian Constitution has the provision for right to life and livelihood under article
21 for all.
l The government of India made an act , National Rural Employment Guarantee Act-
2005,that legally promised to provide 100 days of wage employment in every
financial year to unskilled persons of every rural household.
l MGNREGA was implemented in phases, starting from February 2006, and at
present it covers all districts of the country with the exception of those that have
a 100% urban population.
l MGNREGA aims to address the causes of chronic poverty and thus ensuring
sustainable development.
l However there are some challenges which can be overcome by strict Government
intervention .

20.11 Probable Questions

Essay Type Questions
1. When was MGNREGA enacted in India? What are its major objectivies?
2. Discuss about the various benefits of MGNREGA .
3. Discuss the key features of MGNREGA .
4. What are the major challenges identified while implementing the MGNREGA Scheme?
Short Questions
1. What are the social benefits of MGNREGA Scheme?
2. Name some of the poverty alleviation programmes in India other than MGNREGA.
3. How can we ensure that only the eligible persons get the benefit of MGNREGA
Scheme?
Objective Questions
1. What is full form MGNREGA?
2. Which article of the Indian constitution deals with right to life?
NSOU l CC-PS-9 189

3. Mention one article of the Indian constitution which is related to the protection of
environment?
4. How many days of work is to be provided to the deserving people in a year under
MGNREGA?
5. Which body of the Panchayat is empowered to undertake audits of the projects
under MGNREGA?

20.12 Further Reading

1. The Gazette of India Extraordinary, 2005. Ministry of Law and Justice. The National
Rural Employment Guarantee Act2005. No. 42 of 2005.
190 NSOU l CC-PS-9

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