Local Governance in India

You have already studied the 73rd and 74th Constitutional Amendments in detail under Indian Polity. In this section, we are not repeating the constitutional provisions, but revisiting Local Governance from a Governance lens—focusing on decentralization, participation, accountability, service delivery, and outcomes.

The notes are structured in a Mains-ready format, so that you can directly reproduce arguments, examples, and dimensions in Mains answers without additional restructuring. So, here we go! 😊

The 73rd and 74th Constitutional Amendments, enacted in 1992, were important in decentralizing governance in India. These amendments introduced Part IX and Part IXA to the Constitution, respectively, granting constitutional status to Panchayati Raj Institutions (PRIs) and Urban Local Bodies (ULBs).

They mandated regular elections, reservations for marginalized communities, and the establishment of State Election Commissions and Finance Commissions to ensure autonomy and accountability at the grassroots level.

Constitutional Recognition of Local Governance Bodies

The 73rd and 74th Amendments institutionalized local self-governance by:

• Granting Constitutional Status: Ensuring that local bodies are integral to the governance structure.
• Mandating Regular Elections: Ensuring democratic functioning through periodic elections.
• Providing Reservations: Allocating seats for Scheduled Castes, Scheduled Tribes, and women to promote inclusivity.
• Establishing Finance Commissions: To recommend financial devolution to local bodies.
• Enabling State Election Commissions: To oversee the conduct of elections at the local level.

Panchayats and Municipalities

• Panchayati Raj Institutions (PRIs):
  A three-tier system comprising Gram Panchayats (village level), Panchayat Samitis (block level), and Zila Parishads (district level).
  • Panchayati Raj Institutions (PRIs) play a vital role in rural governance, providing essential services like healthcare, sanitation, and education at the grassroots level.
    Eg.: Pimpri Gavali (Maharashtra) showcases successful PRI involvement, where the local Gram Sabha led watershed development, securing water resources for the community.
  • Gram Sabhas promote direct democratic participation, enabling marginalized groups to voice their concerns and contribute to local governance and development planning.
    Eg.: Gariba Gram Panchayat (Bihar) highlights how local participation in development projects improves infrastructure and fosters inclusive growth.
• Urban Local Bodies (ULBs):
  Urban Local Bodies (ULBs) are small local bodies that administer or govern a city or a town of specified population. They are divided into Nagar Panchayats (transitional areas), Municipalities (smaller urban areas), and Municipal Corporations (larger urban areas).

Functions and Responsibilities of Panchayats and Municipalities

• Panchayats are responsible for rural development, including implementing schemes like MGNREGA, maintaining village infrastructure, managing primary schools and health centers, and promoting local economic activities.
• Municipalities handle urban governance tasks such as city planning, waste management, housing (e.g., PMAY-U), public transport, and slum rehabilitation, along with disaster management and environmental protection.

Significance of Decentralization in Local Governance

• Empowerment of Local Institutions:
  PRIs and ULBs now have constitutional status, empowering them to make region-specific decisions and improve local service delivery.
  Eg.: Decentralized governance to improve primary education and health services.
• Increased Citizen Participation:
  Decentralization has encouraged direct participation of local communities in decision-making, fostering accountability and inclusivity.
• Faster Resolution of Local Issues:
  Local governance reduces bureaucratic delays and enables a quick response to issues like sanitation, water supply, and infrastructure.
  Eg.: The Zero Waste Initiative in Alappuzha, Kerala, led by municipal bodies, successfully transformed waste management through decentralized planning.
• Strengthening of Local Economic Development:
  Local governments promote small-scale industries, SHGs, and cooperative movements, boosting rural livelihoods and self-reliance.
  Eg.: The Kudumbashree program in Kerala, led by local self-government institutions, has empowered women economically.

Challenges in Empowering Local Governance

Challenge	Explanation	Recent Example (2024–25)
Limited Financial Autonomy	Local bodies rely on state/central funds; poor own revenue generation limits independence.	Only 36% of Urban Local Bodies (ULBs) met Smart Cities revenue targets (MoHUA, Jan 2025).
Capacity Deficit	Many representatives lack training in planning, budgeting, and execution.	Mission Karmayogi for Panchayats proposed to boost local capacity (PIB, Feb 2025).
State Interference	States delay elections, override local decisions, and control fund flow.	Panchayat elections delayed in Andhra Pradesh due to state-level administrative hurdles.
Limited Role in City Planning	States have created parallel structures like SPVs in urban development projects limiting ULBs’ role.	SPVs under Smart Cities Mission plan, appraise, approve, release funds, and implement projects.
Weak People’s Participation	Gram Sabhas and Ward Committees are often inactive, undermining grassroots democracy.	CAG 2023 report flagged low Gram Sabha activity in Bihar and Madhya Pradesh.
Gender & Social Inequality	Women and SC/ST leaders face discrimination or proxy control in governance.	Reports from Rajasthan (2024) show women sarpanches sidelined by male relatives.
Digital Divide	Lack of internet and digital tools in rural areas hinders e-governance and data-driven decision making.	SVAMITVA Scheme rollout faced delays in northeastern states due to low digital infrastructure.

Issues in Auditing of Local Bodies

• Poor Record Keeping: Financial records are often incomplete, inconsistent, and vary across states due to lack of uniform standards.
• Lack of Skilled Personnel: Shortage of trained auditors leads to weak and superficial audits.
• Overlapping Jurisdictions: Multiple auditing agencies (CAG, State departments, etc.) create confusion and inefficiency.

Way Ahead (2nd ARC Recommendations)

• Simplify audit/accounting formats for ease of understanding by elected PRI members.
• Ensure independence of auditing bodies like DLFA by separating them from state administration.
• The head of this body should be appointed by the State Government from a panel approved by CAG.
• Ensure legal access to relevant records for audit authorities through state laws.

Way Forward for Strengthening Local Governance in India

• Enhancing Financial Autonomy:
  Local bodies should be able to raise and use their own money better through improved property tax collection, fair user charges, and performance-based grants.
  Eg.: The 15th Finance Commission suggested giving more funds to Panchayats based on their work (GoI, 2024).
• Capacity Building Initiatives:
  Regular training for elected representatives and local officials is crucial.
  Eg.: Training under Rashtriya Gram Swaraj Abhiyan (RGSA) by the Ministry of Panchayati Raj with SIRDs.
• Digital Governance:
  Adoption of digital tools (e.g., e-municipality systems) can improve service delivery and transparency.
  Eg.: Smart Cities Mission promoting GIS-based planning and online grievance redressal.
• Timely Devolution of Powers:
  Ensuring timely elections, financial transfers, and real autonomy to State Election Commissions.
  Eg.: In 2024, the Supreme Court directed Maharashtra to conduct pending Panchayat elections without delay.
• Strengthening People’s Participation:
  Active functioning of Gram Sabhas through awareness drives, digital tools, and regular meetings.
  Eg.: Expansion of the “Gram Manchitra” portal for participatory village planning using GIS (MoPR, 2024).
• Empowering Marginalized Sections:
  Leadership support and safeguards against proxy representation.
  Eg.: Odisha’s “Leadership for Change” initiative (2024) trained women sarpanches to lead independently.
• Expand CAG Audits to PRIs:
  Extend audits to all Panchayati Raj Institutions (PRIs) for better financial oversight and accountability, addressing gaps seen in cases like Malur, Karnataka.
  • Grant CAG quasi-judicial powers, standardize accounting practices, and involve citizens through social audits to ensure efficient use of public funds and enhance transparency in local governance.

PURA

Provision of Urban Amenities in Rural Areas (PURA), proposed by Dr. A.P.J. Abdul Kalam in Target 3 Billion, aims to transform rural India by delivering urban infrastructure and services to rural regions.

Role of Connectivity in Providing Urban Amenities in Rural Areas (PURA)

• Physical Connectivity:
  Building roads and networks linking rural areas to urban centers improves access to markets, services, and jobs.
  Eg.: The PM Gram Sadak Yojana aims to provide all-weather road connectivity to rural areas.
• Economic Connectivity:
  Rural connectivity to markets and financial institutions boosts entrepreneurship by enabling farmers and artisans to sell products more efficiently.
  Eg.: The e-NAM (National Agriculture Market) platform.
• Energy Connectivity:
  A reliable energy supply, such as through solar or wind power, is essential for supporting businesses, lighting, and the functioning of essential services.

Khap Panchayats

Challenges

• Gender Injustice:
  Women’s issues are rarely addressed by Khap Panchayats, affecting their choice of marriage, clothing, and social mobility.
• Threat to Rule of Law:
  Parallel justice systems undermine the formal legal system, leading to lawlessness.
  Eg: Khaps follow the rule of men rather than the rule of law.
• Lack of Legal Authority:
  Khaps have no legal backing, yet function as quasi-judicial bodies, imposing harsh penalties on individuals who defy their rules.
• Hindrance to Social Mobility:
  Khap diktats reinforce regressive customs, preventing social mobility, women’s empowerment, and modernization.

Steps Taken

• Legislative Measures:
  Laws such as the Domestic Violence Act (2005) and the Prevention of Atrocities Act (1989) aim to uphold individual rights and deter caste- and gender-based injustices often perpetuated by Khap Panchayats.
• Executive Interventions:
  Authorities take preventive action through police deployment and local vigilance committees.
  Eg: Haryana’s women’s helpline protects couples from Khap-led threats.
• Judicial Oversight:
  The judiciary has strongly opposed Khap interference in personal freedoms, with landmark judgments like Shakti Vahini v. Union of India (2018) reinforcing constitutional rights.
• Penal and Preventive Orders:
  Courts have called for strict action against illegal Khap orders, including penalties and recommendations for disbandment in extreme cases.

Despite judicial firmness on individual rights, legislative and executive responses remain cautious due to rural sensitivities. A comprehensive approach—combining law enforcement, legal reforms, social change, and public awareness—is essential to uphold fundamental rights over regressive norms.