INTERACTIVE SESSION -I: DEVOLUTION: THEORY & PRACTICE, CHAIRPERSON- DR. GEORGE MATHEW, CHAIRMAN, INSTITUTE OF SOCIAL SCIENCES (ISS)
Chairperson- Dr. George Mathew, Chairman, Institute of Social Sciences (ISS)
Dr. Mathew complimented Common Cause for its initiative in organizing the seminar on Local Self Government. He noted that in his inaugural address, the Minister for Panchayati Raj and Tribal Affairs had elaborated on the many positive steps taken by the Union government in implementing the mandate of the 73rd Amendment. However, there was no room for complacency in an undertaking like democratic decentralization, where a lot needs to be done and which can only be accomplished through a consensus forged after protracted discussions and debates. As Prof. Amartaya Sen had once said, many arguments and fights have to take place before something substantial is achieved.
He regretted that even after sixty two years of the coming into force of the Constitution, the Constitutional mandate of devolution of powers to local governments remains to be fulfilled. The sorry state of local governments in Andhra Pradesh, one of the most advanced and politically significant states of the country, underlines,the magnitude of the challenge ahead. The ideal was ‘power to the people’ as envisioned by Gandhiji and other leaders of the Independence movement ..The question that needs to be answered is whether the objective of restoring power to the people has been achieved even after the 73rd and 74thConstitutional Amendments.
After his opening remarks, Dr. Mathew invited Dr. V. N. Alok, Associate Professor of Public Finance, Indian Institute of Public Administration, New Delhi, to speak on Devolution of Funds, Functions and Functionaries.
Dr. V. N. Alok:
Dr. Alok, outlined the different approaches to Local Government adopted by national governments across the globe. He observed that local governments have been created in many federal systems through national constitutions, state constitutions, central statutes as well as provisional legislations as in Canada and Pakistan. They have also been brought about through executive order as in China. In India, local governments have been mandated through the 73rd and 74thConstitutional Amendments. Ironically, the local governments created through national constitutions in India and Brazil are weak , while those created through executive orders in China are quite strong. In China the local governments account for 57 percent of the public expenditure.
Speaking about the relevance of local self-government in a federal system, he pointed out that according to the principle of subsidiarity, certain functions like waste management, drinking water, sanitation, street lights, and issuance of birth and death certificates, ought to be assigned to them. The state should decide the policies to be implemented by the local self-government. He agreed with the views of the Minister for Panchayati Raj and Dr. Sivaramakrishnan, who had emphasized that the two key aspects of decentralised democracy- empowerment of people and the service delivery systems- must go hand in hand.
While on the issue of involving local governments in centrally sponsored schemes, he referred to the study conducted by him on behalf of IIPA to find out the extent to which panchayats have been involved in their implementation. The 13th Finance Commission appreciated the utility of such studies and the value of the Devolution Index, which he had authored along with another colleague. This has now been adopted by the Ministry of Panchayati Raj. The best states according to this index are given awards by the Prime Minister on 24th April each year. The Devolution Index assesses the extent of the state government’s success in devolving the 3 “F”s- Funds, Functions and Functionaries. However, there has so far been no devolution index for the municipalities.
Another tool of analysis is the ‘framework dimension’. Under this dimension, the issues are: (i) whether states have an Election Commission, (ii) whether states are holding panchayat elections, (iii) whether there is a District Planning Committee (iv) whether reservation is provided for SCs/STs etc. This is the qualifying criteria. If states have not held elections, they will be disqualified.
While examining the devolution of functions to local bodies, the relevant issues are: what are the functions assigned to the three tiers of panchayats by the states; involvement of panchayats under various vertical schemes; the functioning of the gram sabha; whether minutes of gram sabha meetings are recorded; whether video recording is done; the number of meetings that have been held; whether plans are approved in the gram sabha; the allocation of budget; utilisation certificates; the mechanisms they have to deal with the implementation of the Right To Information. Essentially, these subjects encompass the accountability of the panchayats to the citizens.
Other issues for examination are:
The ombudsmen and the Lokpals.
New developments and special initiatives taken by the government during the last two years such as the effect of bringing the Joint Forest Committees in Maharashtra under the gram sabha.
Finance is the most important dimension of the devolution index. What kind of empowerment has been given to the panchayats to impose tax and collect revenue - both taxes and non-taxes? In this indicator, the panchayats are seen as the sub-set of the state. We need to inquire what revenue the panchayats collect as a ratio of the state revenue. The maximum revenue collection by panchayats is in Kerala and Karnataka, which is 5 percent of the revenue of the whole state. If it is 5 percent,,the state gets a good score. If it is less than 5 percent, it is graded lower.
What kinds of funds are available to the panchayats? Financial operations of the panchayats may be broken into receipt and expenditure. A lot depends on whether the Union Finance Commission makes its releases in time. The recommendations of the 12th Finance Commission were that the panchayats should get the releases within 15 days. The release is from the Ministry of Finance (Dept. of Expenditure) through the RBI (Nagpur office) to the state governments, from there to the district treasuries, and finally, to the panchayats. By the time the releases reach the panchayats, it is 15th March and they have only 15 days to spend the money.
The 13th Finance Commission said that the releases should reach the panchayats within 7 days or so. So, the money in full should reach in time. Some score has been given on this account. The set of criteria to allocate funds to panchayats should not be based on discretion, but on some objective criteria, whether developed by the state government or the State Finance Commission.
The third important dimension relates to functionaries. Do the panchayats have any authority over the functionaries with respect to their appointment, transfers, disciplinary matters, etc? How many own officials the panchayats have? A recent report in the newspapers mentioned that the Madhya Pradesh government has decided to appoint Deputy Secretaries in each gram panchayat. One gets some discourse out of this. What kind of mechanisms the states have put in place to enhance the capacity of elected representatives as well as the executives? What kind of infrastructure do they have?
Everybody talks about the capacity of the panchayats. Mr. Ramachandran* has been saying that the panchayats need to be enabled first, empowerment will come later. This is the reason why requests have been made to the 13th Finance Commission to recommend the devolution to panchayats rather than the grants. The untied funds given to the panchayats is only half. They should get the share from the Union government and it should be the discretion of the panchayat representatives how they spend the money. This money has to be there for non- plan purposes because there are some schemes whose funds are there for capital purposes. But the Finance Commission’s allocation could be there for non- plan purposes under which they can create their own buildings, appoint their own functionaries and create their own infrastructure. So, through these mechanisms, some studies have been conducted in the last three years based on which the states have been rated for bestowing awards every year. This particular index is just evolving.
Role of Local Bodies in Programme Implementation
Dr. Joy Elamon:
Dr. George Mathew introduced Dr. Joy Elamon, Chief Executive Officer of Inter-Cooperation Social Development India and Senior Adviser of Helvetas Swiss Inter-Cooperation. A trained medical doctor, Dr. Elamon is currently working in Kerala under a programme of Capacity Development for Decentralisation. He has also worked with UNDP under a programme called Solutions Exchange.
In his presentation Dr.Elamon discussed the two most important roles of the Panchayats: local governance and programme implementation. He raised the important question whether the panchayat is a programme implementer in its own right, or an agency of the government to implement its programmes.
He argued his case by referring to three important documents: (i) The Constitution and its 73rd and 74th Amendments, (ii) The Report of the Second Administrative Reforms Commission And (iii) the 13th Finance Commission Report and the road map to Panchayati Raj prepared by the Ministry of Panchayati Raj.
While all the above three documents affirm their faith in the centrality of the people’s involvement in their own governance, in the real world,, the Central government programmes like MGNREGA, SSA, JNNURM, ICDS, as also many of the programmes formulated by the state governments bypass the local bodies to a certain extent. In many cases, the special agencies created to implement centrally sponsored or state sponsored schemes seek convergence with local bodies, while in some cases, they function as if local bodies were their subordinate offices. Hence the need to go back to the basics, i.e.the principle of subsidiarity. That is the touchstone on which the guidelines for every programme ought to be tested.
Dr. Elamon then discussed the role of parallel bodies and the modalities of incorporating the best practices of decentralized and comprehensive planning at the village level in various schemes. He recognised that the national and state governments have important roles to play in the elaboratation of such schemes. Specifically, when such schemes/programmes are formulated, the Ministry of Panchayati Raj should comment on the role of panchayats. The implications for panchayats in respect of each Act and the scheme formulated for its actualisation need to be clarified. The fund transfer mechanism as well as the details of functionaries involved in each of these schemes have to be spelled out clearly. For instance, in respect of a scheme like MGNREGA, the name of the person posted at the gram panchayat level and the details of other functionaries concerned need to be furnished. The reporting structure also needs to be indicated plainly. The state of affairs at present is such that very often there is no functionary at the panchayat level.
Though the panchayats are given no powers or finances, they have been assigned a lot of responsibilities. The panchayats are at times unaware of their roles and responsibilities. Therefore, the role of gram sabhas has to be objectively defined and in all the schemes at the local level, the centrality of panchayats has to be kept in mind. Every activity assigned to a specific level of panchayat has to be supported with appropriate authority and adequate finances, which presently is not the case. There have to be sufficient funds for proper discharge of functions.
Dr. Elamon stressed the need for informed decision-making and.proper management of information systems. He, suggested that the guidelines on data compilation should specify how the data on programme implementation are to be placed in the public domain. It should aso be ensured that the systems for enforcing financial accountability are in place along with the systems for performance-based appraisal and rewards for panchayats. Experience shows that whenever the good work done by a panchayat has to be recognised, the award, whether conferred at the national level or the state level, goes to the District Collector. On the other hand, every social audit targets the sarpanch, although he or she may have no power or authority in respect of the implementation of the schemes under review, since all the operational decisions are taken at the level of the BDO. The award for every success should be conferred on the personnel working at the grassroots level.
Dr. Elamon concluded by emphasizing the centrality of panchayats in governance as per the constitutional mandate. He wondered whether the plethora of government programmes being implemented in the local domain were actually strengthening the panchayats or weakening them.
Panchayati Raj- Retrospect & Prospect
Prof M. Aslam:
Introducing Prof.M. Aslam, Dr.George Mathew recalled his total commitment to the issue of local self-government. As the Vice Chancellor of IGNOU, Prof. Aslam has undertaken the stupendous task of preparing the training material not only for the elected representatives of panchayati raj institutions of J & K, but of the whole country. He is an expert in distance education and training methodology and has helped the Institute of Social Sciences to develop appropriate literature for the use of grassroots panchayats workers .
Prof. Aslam stated that the important question today is whether enough has been done to empower panchayats. Empowerment is an enabling process to make people capable of taking their own decisions concerning their development and for changing their own lives. Even after two decades, the actual meaning of the words ‘devolution of powers’ has not been properly appreciated. Although new jargon such as ‘activity mapping’ has come into vogue in the context of devolution of powers, there is no clear cut mapping of the functions or activities at different tiers of the panchayats.
Instead of being considered as institutions of self-government, panchayats are only being treated as agencies for implementing various development programmes. Prof. Aslam suggested that it was necessary to make it mandatory for each state to constitute a committee to study Article 243G and the Eleventh Schedule of the Constitution of India and make a clear cut allocation of powers to different tiers of panchayats. This step should not be construed as an extension of the power struggle underlying the Centre-State relations. On the contrary, it is a step necessary to actualise effective self-government at the local level. .
Prof. Aslam also flagged the important issue of panchayati raj personnel. Large scale deputation of personnel from the state government to the panchayats has been taking place. In this context he referred to the point made earlier by Mr. V.N. Alok regarding the posting of Deputy Secretaries of the state government to the Panchayats in Madhya Pradesh. Why should it be necessary to have such large scale deputation of personnel, who only are answerable to their parent departments? This question should not be taken as a reflection on the bureaucracy. Bureaucrats submit themselves to the elected leaders at the national level, but not at the panchayat level. He stressed the need to have a separate service commission for the selection of personnel for panchayati raj institutions. Sooner rather than later, it will be necessary to create a cadre of panchayati raj personnel. There is no alternative to it. On the question of capacity building, he recalled the development under his leadership of a multi-media package, to train 58,000 elected representatives in four districts of Madhya Pradesh. It got the Commonwealth award for excellence,. A similar package was prepared for the J & K Government. An offer was made to the state government that without any financial implication, all the elected representatives of the state would be trained within four months.
Prof. Aslam referred to an observation contained in the Human Development Report, 1993 to the effect that any proposal to increase people’s participation must pass an empowerment test. The test is: does it increase or decrease people’s power to control their lives? He felt that such tests should be made applicable to all institutions that organise or affect human lives. In so far as panchayati raj institutions are concerned, the empowerment test was expected to be brought about through Article 243G. Unfortunately, most state governments seem to have given a limited interpretation to Article 243G. He requested all stakeholders to join hands to ensure that the changes in the polity envisaged in the scheme of the Constitution are given effect to .
Ensuring Institutional Integrity: Ombudsman for Local Bodies
Ms. Anupama Jha, Executive Director, Transparency International, New Delhi:
Ms. Anupama Jha shared her experiences of public hearings or jan sunwais held in Bihar. There was a complaint from thirty six members of the Water and Sanitation Committee of Jhanjhanpur block who were present at the hearing. They had applied to the Executive Engineer of Public Health Department for construction of toilets the previous year, but to no avail. It is a known fact that open defecation leads to the dreaded polio disease, which is supposed to have been eradicated from India, going by the WHO reports. It is ironical that such a situation should obtain in a state acclaimed for the transformation of its administration, and that too in an area to which the State Rural Development Minister belongs.
Ms. Jha cited another example of administrative apathy. One Ram Prasad Mahto from Madhepur block complained that villagers from his area had been displaced due to floods 28 years ago. Though 3.17 acres of land had been allocated for rehabilitation of the displaced villagers, physical possession has still not been given. Similar situation exists in other panchayats, too.
All officials and ministers concerned had been informed in advance about the jan sunwai, but nobody showed up for the meeting, except for a lone MLA. In Ms. Jha’s opinion, the officials did not want to engage in any kind of dialogue as they had no answers to people’s questions.
There were some elected panchayati raj members who complained of not getting their salary, or travelling allowance. Other issues highlighted by the PRI members included high electoral expenses that had to be recovered and the inadequacy of and lack of incentive for training programmes for newly elected PRI members
There were many complaints from aggrieved RTI activists who were being victimized for demanding information. Frivolous cases of atrocities against dalits were registered against them for seeking information under RTI. One of them had been sent to jai., Their names had been struck off from the BPL list. One of the activists was framed in 6 police cases.. According to Ms. Jha, the claim of empowerment of panchayati raj institutions in a state which celebrates its sushasan or good governance was nothing more than a cliché.
Although the issue of corruption was not on the agenda of the public hearing, they ended up talking about it. There were many complaints of demand of bribes. The local MLA present at the hearing was quite dismissive of them. He felt that the real corruption in which enormous amounts were involved, as in the Telecom Scam, happens in Delhi. .Demanding a bribe of Rs. 5000, which people were complaining about, was not corruption.
Ms. Jha was of the view that an Ombudsman was needed for PRIs, given the apathy of public representatives and bureaucrats, who do not even bother to show up at public hearings to listen to people’s grievances. Meanwhile, the regional advocacy and advice centres started by Transparency International in Bihar, Orissa and Jharkhand are doing their bit to help the victims of corruption.
