INSTITUTE OF RURAL MANAGEMENT ANAND

Commissioned by

MINISTRY OF PANCHAYATI RAJ, GOI

Background of SoPR

Constitutional Provisions – “shall” and “may”

Status of the Mandatory Provisions

Status of the Discretionary Provisions

Accountability of PRIs: Audit arrangements; Social Audit

Lessons and Challenges ahead

Fifth Round Table of Ministers in-charge of PR (28-29 Oct 2004) – Annual Administrative Reports by Panchayats– Annual State Reports – by State Governments– Annual Report on State of Panchayats – by Union Ministry of PR

Objectives, inter alia– Qualitative assessment of progress– Comparison and learning by using common format (suggested)

Reports• SoPR 2006 – by GoI

Hon’ble Prime Minister’s observation on value of ‘independent assessment’

• SoPR 2007-08 – ‘An Independent Assessment’, by IRMA, Released by the Hon’ble Prime Minister on this day of 2008.

• SoPR 2008-09 – ‘An Independent Assessment’, prepared by IRMA7 themes of relevance to Panchayats, State Profiles, In two volumes, 525 pages

Released by the Hon’ble Prime Minister today (24 April 2010)

State of Panchayats covering a limited number of States

Draws upon but NOT a presentation of the COMPLETE Report

Also draws upon secondary sources wherever necessary

Emphasis on highlighting achievements, trends, alternative (good) practices & challenges ahead

Gram Sabha – vision of ‘direct/ participative democracy’

Panchayats to be constituted at Village, Intermediate and District levels as institutions of self government

Direct election for all seats ; indirect election for Chairpersons at IP and ZP

Reservation of seats and offices of chairpersons for SCs and STs at all levels

Not less than 1/3rd reservation of seats and offices of chairpersons for women including those for SCs and STs at all levels

Duration of 5 years - Elections to be completed within the duration or before the expiration of 6 months from the date of dissolution

Described as ‘A Right to Life’

State Finance Commission to be constituted every 5 years

For examining the finances of Panchayats and recommending on their resource requirements

State Election Commission

Election matters not be called in question in any court; matters to be dealt by an election petition

Shall also apply to Union Territories; Exceptions for some areas and States

Powers and Functions of Gram Sabha

Election of Chairperson of Village Panchayat

Ex-officio Memberships in Panchayats

Reservation for OBCs

Powers, authority and responsibilities of Panchayats…to function as ‘institutions of self government’…

Preparation of plans for economic development and social justice

Implementation of schemes for economic development and social justice as may be entrusted to them including those in relation to the matters listed in the Eleventh Schedule

Powers to impose taxes by, and Funds of, the Panchayats

Composition of SFCs

Audit arrangements

All States have held elections to constitute Panchayats at appropriate levels except Jharkhand

At least 2 elections have been held in States

At least 4 states, M.P, Punjab, Rajasthan and West Bengal have held 4 elections

Number of Panchayats: All India• Gram Panchayats – 2,32,855• Intermediate Panchayats – 6,094• District Panchayats - 542• Total -- 2,39,491

Number of Elected Representatives• Gram Panchayats -- 26,45,883• Intermediate Panchayats – 1,56,794• District Panchayats – 15,613

Total ERs in Panchayats – 28,18,290 – the largest anywhere in the world

All States have implemented the reservation provisions

The proportion of SC Elected Representatives at All India level has risen from 12.56% in 2000 to 18.66% in 2010

The proportion of ST Elected Representative at All India level has risen from 8.58% to 11.83%

Beginning with Bihar in 2006, many other States –Chhattisgarh, Manipur, Madhya Pradesh, Rajasthan, Uttarakhand, Orissa, Kerala, Himachal Pradesh have increased the reservation for women to 50%

In the year 2000 EWR proportion was 31.14% due to lower proportions in some States.

In 2010 the lowest is 33% - AP, Guj, Mah, Punjab.

2010 highest are Karnataka (43.19%) and WB (42.99%) (among States that continue to have one-third reservation).

States where elections have been held with 50% reservation (i.e., MP, Chhattisgarh) proportion of Elected Women Representatives is about 52%

Today - about 6% EWRs are in unreserved seats

given the large base this works out, conservatively, to at least 1,50,000

Of the 15 States studied, 12 have had three State Finance Commissions.

All except AP, Arunachal, Gujarat (Jhk & Chhts) have also received 3 SFC recommendations.

Bihar, HP, MP, Punjab & WB have accepted the 3rd

report. Elsewhere these are under consideration

74th CAA required formation of District Planning Committees

In all districts of 12 States covered under the theme of Planning, DPCs have been formed.

Secondary sources show that all States except Jharkhand and Jammu & Kashmir have formed DPCs

Among these states, WB, Tripura, Rajasthan, Haryana, Orissa have prepared District Plans by all DPCs

In AP, Bihar, Gujarat, Punjab, BRGF districts have prepared plans; initiatives are on for other districts

Among States covered; only West Bengal and Punjab have indirect election for Chairperson of Village Panchayats

Except West Bengal, all States have provided for ex-officio membership of MPs and MLAs in the Intermediate and District Panchayats

Among States covered, Andhra Pradesh, Bihar, Chhattisgarh, Haryana, M.P., Punjab, Rajasthan, U.P. and W.B., have provided for reservation of seats for OBCs

States have followed, varying scope and style of activity mapping and devolution

‘Subjects’ or ‘matters’ of Eleventh Schedule

Assam, Chhattisgarh and H.P. have used ‘subjects’ including more than 27 in their activity mapping

Departments

Haryana had included 10 departments; but later 5 have been withdrawn

AP (10), Bihar (13), Gujarat (14+5), Orissa (18), and Tamil Nadu (24) have used ‘departments’ for the purpose

Both activity mapping and devolution being re-examined by governments in Assam, Bihar, Haryana and Rajasthan

State GP own revenue as a percentage of total expenditure (2006-07)

State GP own revenue as a percentage of total expenditure (2006-07)

Tripura 0.59 WB 2.81

Assam 0.75 Rajasthan 3.96

Gujarat 1.64 MP 6.16

Chhattisgarh 1.69 Punjab 17.71

HP 2.67 Haryana 36.70Source: All Tables calculated from, MoPR (Roadmap), sourced from Thirteenth Finance Commission

States Own Revenue/ GP (2006-07)

States Own Revenue/ GP (2006-07)

Bihar 0 MP 20,585 UP 1,998 Chhattisgarh 23,279

Tripura 7,992 Punjab 94,352 Rajasthan 8,278 AP 1,59,563

Gujarat 13,489 WB 1,62,940 HP 16,744 Haryana 2,95,878

Assam 20,264

Own revenue is a small percentage of total expenditure for GPs

Lease-rental income from Shamalat land is a major income source in Haryana and Punjab

Figures in tables are averages – the range of own income of GPs is very wide in Punjab

Punjab and Haryana have enhanced the administrative sanction limits for Panchayats at different levels; the matter is being considered in some other States

None of the States studied reported Panchayat window in state budget.

Alternative practices in enhancing non-tax revenues and resources of Panchayats

• Lease/ rental income – Punjab and Haryana• Matching grant for resource raised for certain social

purposes – Haryana • Soft loans for infrastructure development – Haryana• Untied grant – incentive for District Development Plans

by DPCs - Assam

Transfer of functionaries – a continuing challenge

Most states have done this at the GP level

Membership of line officials in standing committees – West Bengal; reportedly effective

Some personnel control functions – such as writing of ACRs (Haryana), attendance certification (in many), reporting of deficiencies (HP)

No or very low Influence over transferred functionaries across levels in most States

Alternative practices• Panchayat Cadre – Gujarat, (Maharashtra) since 60s; Karnataka

in recent decades, under very active consideration in Rajasthan

• Officials attached to Standing Committees as members/ secretaries – as in West Bengal

• Empanelment of technical personnel – for Panchayats to draw upon – H.P., A.P.

• Contractual arrangement – with Panchayats – Punjab – for RMC, RVC, Elementary school teachers

• Fresh recruitments by Panchayats – para Teachers in Bihar

Parallel Bodies - bodies with overlap of functions with Panchayats

• DRDA has been merged with ZP in MP, Rajasthan, and WB (among 15 states covered)

• Jharkhand PR Act provides for merger – is likely to be effective after constitution of ZPs

• Externally funded programmes – DPIP, MPRLP, WORLP • At village level; School Development and Management

Committees, Village Water and Sanitation Committee, Forestry related committee, Rugi Kalyan Samithis

Promising practice• All village committees to synchronise meeting with GP –

Haryana

Audit Arrangements

• Majority of States have Director, Local Fund Audit, i.e., Assam, MP, Rajasthan, AP, Gujarat, Haryana, Chhattisgarh, Punjab

• C&AG’s institutions undertakes audit of Panchayats in West Bengal, Bihar, UP, Himachal, Tripura, and Jharkhand

• Other than Punjab and Arunachal Pradesh, other 13 States have adopted the Technical Guidance & Supervision/ Support (TGS) of C&AG. Implementation at various stages of progress

• Updated accounts and timely audit are crucial – remains a challenge, especially at the Gram Panchayat level

Social Audit

• Evidence of successful social audit in Rajasthan and Andhra Pradesh

• Annual meeting is used to share accounts and budgets in Punjab, Haryana as also others; this is often construed as social audit

• Attendance and meeting quorum requirements for Gram Sabha remains a challenge

• WB initiative of Gram Sabha for Intermediate and Zilla Panchayats has much learning to offer.

Panchayats have got constituted; reservation clauses have created spaces for inclusion.

Size of Gram Panchayats across States vary; this is so even within a State.

State legislations provide for standing committees in Panchayats. These are also formed. But their activation and functioning remains uncertain

Devolution seems to follow a ‘muddling through’ approach

Of the 3Fs, devolution/ transfer of Functionaries today is clearly the most crucial and biggest challenge

Alternative practices quoted earlier, across States with respect both to funds and functionaries require careful attention to derive lessons and create examples

Government notifications regarding devolution, especially transfer of functionaries are not reflected in practice/ operations at Panchayat levels

Thus we see two views regarding functional domains of Panchayats – one that is seen in government orders and another that obtains at the operational/ Panchayat levels

Guidelines of five of the six CSSs studied (NREGS, NRHM, SSA, IAY, ICDS, ARWSP-Swajaldhara) provide for Gram Panchayat involvement in planning and implementation

However, only in 4 of the 8 states studied (Guj, HP, Karnataka, TN) Gram Panchayat have played some role in planning. Involvement of Panchayats in NREGS thus seems to be unique

Degree of Panchayat involvement in Centrally Sponsored Schemes is influenced by extent of devolution, particularly of functionaries

In general, Planning function of Panchayats is yet to take shape in most States

Reservation of seats has significantly increased the presence of SCs/ STs and women

Early signs visible of greater participation and empowerment of elected representatives from reserved categories

Institutional barriers require attention for further gains

Have Panchayats become institutions of self government? In most states covered in this research, it is difficult to answer in the affirmative.

Thank you for your attention and patience