(Online Course) Pub Ad for IAS Mains: Chapter: 11 (Rural Development) - Status of Panchayats (Paper -2)

Status of Panchayats

• All states have held elections.

• At least 2 decision in almost all states.

• Number of gram panchayats: approx. 2,40,000.
  Number of elected representatives : 30 lakh approx.

• All states have implemented reservation provisions.

• Proportion of Scheduled Castes elected rep. from 12.56% in 2000 to 18.66% 2010

• Reservation for woman 50%: Bihar, Chattisgarh, Manipur, M.P., Rajasthan, Uttarkhand, Odisha, Kerala, H.P.

• Almost all have reviewed State Finance Commission recommendations.

• District Planning Committees formed in almost all districts.

• Most states have direct election for chairperson of Village Panchayats.

• Almost all have ex-officio membership of MPs & MLAs in intermediate a district panchayats.

• Varying scope & style of activity mapping & devolution.

Funds

• Haryana leads (36.70%) GP own Revenue as % of Total Expenditure. (2006-07), Punjab (17.71%) others are less than 5% M.P (6.16%).

Functionaries

• Most states have done this at Gram Panchayat level number or very low influence over transferred functionaries across levels in most states.

Alternative Practices.

• Panchayat cadre: Gujarat, Maharashtra since 60s.
  Karnataka : Racent decades
  Rajasthan : under active consideration.

• Officials attached to standing committees as members / secretaries – as in West Bengal.

• Impeachment of technical personnel – for panchayats to draw upon – Himachal Pradesh, Andhra Pradesh.

• Fresh recruitment by panchayats.

Parallel Bodies

• DRDA merged with Zila Parishad in MP, Rajasthan, WB, Karnataka.

• Many states ZP chairman is also the chairman of DRDA with DM acting as executive chairman.

• Externally funded programs bodies: DPIP, MPRLP, WORP, BPRLP

• At village land: School Development & Mgmt. committees, village water & sanitation committee, Rogi kalyan samitis.

Audit arrangements

• Majority status have director, Local fund audit.

• C&AG institution undertakes audit of panchayats in WB, Bihar, UP, H.P. Tripura & Jharkhand.

• 13 states have adopted the Technical guidance & Super vision / support of C&AG.

• Updating accounts remains a challenges.

Social Audit

• Success in Rajasthan & Andhra Pradesh.

• Attendance & meeting quorum – a challenge.

• WB initiative has much learning to offer.

Lesson 2 Challenges

• Sizes of GP’s vary greatly, even within state.

• Functioning of standing committees remain uncertain.

• Devolution seems to a muddling through approach.

• Of 3Fs, functionaries’ transfer-biggest challenge.

• Alternative practices offer lesion to be learnt.

• Guidelines of 5/6 CSSs (NREGS, NRHM, SSA, IAY, ICDS, ARWSP – Swajaldhara) provide for GP involvement planning & implementation.

• Degree of panchayats involvement in CSS influenced by extent of devolution, particularly of functionaries

How to make parliament accountable

• Throwing upon committees to public & press.

• Codification of privileges.

• ‘No work no pay’ when houses adjourned.

• MP, from Rajya Sabha should belong (resident) to that state.

• Role of media

• Declaration of assets.

• Right to recall

• Strengthening powers of speaker.

• Making certain duration of parliamentary working mandatory.

13th FC Recommendations

Revenue

• Share of states on net proceeds of central Tax Pool = 32% each year.
- 11th FC 29.5% 12th FC : 30.5%
- Reduce no of CSS’s (currently 147) & increase funds transfer
- States should reduce power subsidies.
• GST: central portion – central excise duties, service tax, additional customs or surcharges, cesses.
- State portion – VAT, CST, Cesses & surcharges.
- GST to be applied at the same time.
- Rs. 50,000 to be provided to all states – ‘GRAND BARGAIN’ (to recover losses of revenue).
• Union Finances: Disinvestment fund should also be used for infrastructure & environment. Related projects – apart from social sector programmes.
• STATE Finances: Practice of diverting plan assistance to meet non plan needs of special categories states should be discontinued.
• PSUs: closure of non-working PSUs by Mar 2011, disinvestment and privatization should be considered.
• Power sector: Transmission and Distribution losses to be reduced
• Pension: NPS to be switched to.

Revised roadmap for fiscal consolidation

Central Government

• Revenue surplus by 2014-15

• 68% combined debt to GDP by 2014-15

• Medium term fiscal plan should be reformed.

• Number of disclosures: Detailed break up of grant to states, systemised statement on tax expenditure., compliance cost of major tax proposals, fiscal impact of major policy changes should be made with annual budget.

• PSEs: list all which yield lower return on assets

• An independent review mechanism to evaluate its fiscal reform process.

Stage govt.

• Eliminate revenue deficit by 2014-15

• Eliminate Fiscal deficit to zero by 2013-14 (General category states)

• States to enact FRBM Acts.

• State-specific grants to be released upon compliance.

• Borrowing limits of states to be worked out by Finance Ministry.

• Loans from Central Governments to State Governments as on 2009-10, be written off.

Local Bodies

• Local bodies be transferred 2-28% of the divisible pool of taxes (over and above share of states).

• Article 280(3) (b) & (c) be amended to make the recommendations of SFCs less binding on SGs.

• Art 243(I) be amended to empower SGs to constitute & direct State Finance Commissions to give their report before National Finance Commission.

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