Democratic decentralisation and the 73rd and 74th Amendments – OPSC OAS Mains GS Paper II PYQ

📝Model Answer

Introduction

Decentralisation of power to local self-governing bodies has been a longstanding constitutional aspiration in India, realised concretely through the 73rd and 74th Constitutional Amendment Acts (1992), which granted constitutional status to Panchayats and Municipalities respectively as institutions of local self-government.

Body

(a)(i) Democratic Decentralisation

1. Devolution of power: Transfer of administrative, financial and political authority from higher to lower levels of government, closer to the people.
2. Local self-governance: Empowerment of elected local bodies to plan, decide and implement matters of local concern.
3. Participatory ethos: Enables direct citizen participation in governance through institutions like Gram Sabhas, strengthening grassroots democracy.

(a)(ii) Impact of the 73rd Amendment on Panchayats

1. Constitutional status: Added Part IX and the Eleventh Schedule (29 subjects), giving Panchayats constitutional recognition and legitimacy.
2. Three-tier structure: Mandated a uniform three-tier system (Village, Intermediate, District) across states, institutionalising rural local governance.
3. Reservation provisions: Ensured reservation for SCs, STs and women (Article 243D), enhancing inclusive representation at the grassroots.
4. Regular elections: Mandated State Election Commissions to conduct elections every five years, ensuring political continuity.
5. Finance Commission mechanism: Provided for State Finance Commissions (Article 243-I) to recommend devolution of funds to Panchayats.
6. Implementation gaps: Despite constitutional backing, functional devolution remains uneven, with states retaining discretion over actual transfer of "funds, functions and functionaries."

(b) Impact of the 74th Amendment on Municipalities

1. Constitutional status: Added Part IXA and the Twelfth Schedule (18 subjects), granting Municipalities constitutional recognition.
2. Three-tier urban structure: Provided for Nagar Panchayats, Municipal Councils and Municipal Corporations based on urban area size.
3. Reservation provisions: Extended reservation for SCs, STs and women in urban local bodies, mirroring the 73rd Amendment’s inclusive approach.
4. District Planning Committees: Mandated constitution of DPCs (Article 243ZD) to integrate rural-urban planning.
5. Metropolitan Planning Committees: Provided for MPCs in large urban agglomerations for coordinated metropolitan development.
6. Persistent challenges: Urban local bodies continue to face limited fiscal autonomy and functional overlap with parastatal agencies, weakening effective decentralisation.

Way Forward

1. Genuine devolution: Ensure actual transfer of funds, functions and functionaries as envisaged, not merely constitutional listing.
2. Capacity building: Strengthen technical and administrative capacity of Panchayats and Municipalities.
3. Fiscal empowerment: Enhance own-revenue sources and timely implementation of Finance Commission recommendations.
4. Regular social audits: Institutionalise social audit mechanisms for accountability at the local level.
5. Reducing parastatal overlap: Rationalise the role of parallel urban agencies to strengthen Municipal authority.

Conclusion