Background Note on

“Local Self-Governance in Indian Constitution”

Source- Ministry of Panchayati Raj

Introduction:

The core value of democratic, local self-governanceand inclusive governance is equal

participation, equal treatment and equal rights before the law. This implies that all people

have the right to participate meaningfully in governance processes and influence decisions

that affect them. It also means that governance institutions and policies are accessible,

accountable and responsive to disadvantaged groups, protecting their interests and providing

diverse populations with equal opportunities for public services such as justice, health and

education.

2. India has a long history and strong tradition of democratic institutions since ancient

times. These institutions have been grounded on the prevailing social and political

organization of the local habitations. The Panchayats, especially the village or Gram

Panchayats have always played a vital role in day to day governance of the rural community.

The Constitution of India also recognized it and the Article 40 of the Directive Principles of

State Policy lays down that -“The State shall take steps to organize village panchayats and

endow them with such powers and authority as may be necessary to enable them to function

as units of self-government”.

Constitutional Provision:

3. Traditional democratic institutions of local self-governancewere validated by the

Constitution of India with the 73rd

Constitutional Amendment Act of 1992promulgated on

20th

April, 1993, which inserted Part IX in the Constitution of India and accorded Panchayats

a Constitutional status as institutions of local self-governance for rural India. This

amendment implements Article 40 of the Directive Principles of State Policy and have

upgraded them from non-justifiable to justifiable part of the constitution. It has put

constitutional obligation upon states to enact the Panchayati Raj Acts as per provisions of the

Part IX. However, „Panchayat‟ being a State subject, states have been given enough freedom

to take their geographical, politico-administrative and others conditions into account while

adopting the Panchayati Raj System.

4. The Ministry of Panchayati Raj was created as a separate Ministry on 27th

May 2004.

It has the primary objective of overseeing the implementation of Part IX of the Constitution,

implementation of Panchayat (Extension to the Scheduled Areas) Act, 1996 (PESA) in the

Fifth Schedule areas and operationalizing District Planning Committees in terms of Article

243ZD of Part IX-A of the Constitution. Since under the scheme of things in the Constitution,

most of the actions including framing of laws rests with the State Governments, the Ministry

strives to reach its goals with regard to improvements in the functioning of Panchayats

primarily through policy interventions, advocacy, capacity building, persuasion and financial

support. The vision of the Ministry is to make Panchayati Raj Institutions (PRIs) an effective,

efficient and transparent vehicle for local governance, social change and public service

delivery mechanism meeting the aspirations of local population. The Ministry intends to

attain it by way of persuading and encouraging States (i) to devolve powers (Functions,

Functionaries and Finance i.e. 3Fs) to PRIs, (ii) Capacity Building of PRIs and (iii) Creation

of a vibrant interface between PRIs and the rural people through Gram Sabhas.

5. As per the Constitution, three tiers of Panchayats are to be constituted, through

elections every five years, except in States with population less than 20 lakhs, where

Panchayats at two tiers may be created. The Constitution envisages that Panchayats will

function as institutions of local government and prepare plans and implement schemes „for

economic development and social justice‟, but leaves the precise devolution of powers and

authority to Panchayats to the States.

6. 73rd

Constitutional Amendment Act (CAA), 1992 incorporated as the Part IX of the

Constitution includes the following as compulsory/ mandated provisions:-

(i) Three tiers of Panchayats except in States with population below 20 lakhs.(Article

243-B)

(ii) Direct election to seats at all three tiers of Panchayats and indirect election to

officers (Article 243C)

(iii) Indirect elections for chairpersons of Block and District Panchayats (Article

243C)

(iv) Reservation in seats for the Scheduled Castes and Scheduled Tribes in proportion

to their respective population (Article 243 D(1));

(v) Reservation of not less than one third seats and offices of chairpersons for women

including within SC and ST reservations. Article 243D(3)

(vi) Rotation of reserved seats and offices of Chairpersons [Article 243I(2)(3) and (4)]

(vii) Election to Panchayats every five years (Article 243 E)

(viii) Constitution of State Finance Commissions (Article 243I) every five years to

review the financial position of Panchayats and make recommendations to

Governor regarding distribution between the State and Panchayats of taxes,

duties, tolls etc.

(ix) Setting up of State Election Commission (SEC) and vesting the superintendence,

directions and control of the preparation of electoral rolls for and the conduct of

all election to the Panchayats in SEC (Article 243K)

7. The application/ operation of the following provisions in Part IX have been left to the

discretion of the respective States:

(i) Powers of Gram Sabha (Article 243A)

(ii) Direct or indirect election of president of Village Panchayat (Article 243C)(5)

(iii)Reservation of seats in Panchayats in favor of backward class of citizens [Article

243D(6)]

(iv) Powers, authority and responsibilities of Panchayats (Article 243G)

(v) Powers to impose taxes by and fund of, the Panchayats (Article 243H)

8. Article 243E of the Constitution states that every Panchayat, unless sooner dissolved

under any law for the time being in force, shall continue for five years from the date

appointment for its first meeting and no longer. Further, an election to constitute a Panchayat

shall be completed before the expiry of its duration or before the expiration of a period of six

months from the date of its dissolution. As per Article 243K of the Constitution,

superintendence, direction and control of all elections to the Panchayats is vested in a State

Election Commission consisting of a State Election Commissioner to be appointed by the

Governor. States have generally compiled with this Constitutional provisions. However, in

Puducherry, elections to Panchayats have not been held. In the past there have also been

instances of elections not being held to Panchayats in Andhra Pradesh and Jharkhand. These

matters have been taken up in Court.

9. Article 243 D of the Constitution of India provides for the reservation of seats for the

Scheduled Castes and Scheduled Tribes in every Panchayat (at all levels) in proportion of

their population in the Panchayat area. Reservation of seats for the Scheduled Castes and

Scheduled Tribes at all levels of Panchayat is a mandatory provision and the State

Governments have complied to this by making a provision in their respective Panchayati Raj

Acts.

10. Reservation of one third seats for women (including the seats reserved for the

Scheduled Castes and Scheduled Tribes) by rotation is mandatory provision and the State

Governments have already made provision in this regard. Some State Governments, as per

details below, have made provision for reservation of 50% of seats for women at PRIs. These

are: Assam, Andhra Pradesh, Bihar, Chhattisgarh, Gujarat, Himachal Pradesh, Jharkhand,

Karnataka, Kerala, Madhya Pradesh, Maharashtra, Odisha, Rajasthan, Tamilnadu, Tripura,

Telengana, Uttarakhand and West Bengal. Reserved seats for SC, ST and Women are also

rotated by States. Rotation of reserved seats are mandated under the Constitution and the

precise modalities for rotation are left at the discretion of States.

11. „Panchayat‟ being a State subject the devolution of powers and authority to

Panchayats has been left to the discretion of States. In terms of Article 243G of the

Constitution the State Legislatures are to consider the 29 matters illustratively set out in the

Eleventh Schedule for devolution to the Panchayats for the planning of economic

development and social justice schemes. As devolution of powers to PRIs is left to the

discretion of States, the profile of devolution varies across the States.

12. Out of 29 States, 26 States (except Meghalaya, Mizoran and Nagaland) have

constituted State Finance Commission (SFCs) to comply with Art. 243 I of the Constitution

which provides that the Governor of a State shall, as soon as may be within one year from the

commencement of the Constitution (Seventy-third Amendment) Act, 1992, and thereafter at

the expiration of every fifth year, constitute a Finance Commission to review the financial

position of the Panchayats.

13. The Ministry encourages States to devolve powers (Functions, Functionaries and

Finances i.e. 3Fs) to PRIs. MoPR regularly reviews the status of devolution with States and

also incentivizes States for devolution of powers. Every year an assessment is made by an

independent agency regarding the extent to which various States have devolved funds,

functions and functionaries (3Fs) to Panchayats. States that are ranked high are awarded on

Panchayati Raj Day i.e. 24th

April.

14. Article 243A provides that a Gram Sabha may exercise such powers and perform such

functions at the village level as the legislature of a State may, by law, provide. Powers

assigned to the Gram Sabha, therefore, vary from State to State. Gram Sabha is key to the

self-governance and transparent and accountable functioning of the Gram Panchayat. The

Gram Sabha is the forum that ensures direct, participative democracy. It offers equal

opportunity to all citizens including the poor, the women and the marginalised to discuss and

criticize, approve or reject proposals of the Gram Panchayat (the executive) and also assess

its performance.

15. MoPRhas been emphasizing the need to hold regular Gram Sabhas and in most States,

mandatory minimum number of Gram Sabhas are held. In many States it is found that even

the number of mandatory Gram Sabha meetings may not be taking place and the Gram Sabha

meeting may take place but it may be attended by a very few people. As the persuasion of

MoPR, many States have put up a quorum for participation of women. In Maharashtra

aMahilaSabha is held before the Gram Sabha. Thus, MoPR encouraged other States to

include such provision in their Acts so that women‟s issues are discussed in MahilaSabha

first and then put up before the Gram Sabha. In Kerala for instance, all beneficiaries are

selected in the full Gram Sabha and this should be approved in the Gram Sabha. MoPR have

also provided funds for training of Gram Sabha.

16. Article 280(3) (bb) of the Constitution provides for a State to supplement the

resources of the Panchayats in the State on the basis of the recommendations made by the

Finance Commission of the State”.

16.1 Accordingly, Union Finance Commissions to make recommendations to augment the

Consolidated Fund of a State to supplement the resources of the Panchayats in the State on

the basis of the recommendations made by the Finance Commission of the State.

16.2.1 The Tenth Finance Commission (1995-2000) recommended a grant of Rs.4380.93

crore @Rs.100 per capita of rural population as per the 1971 Census for Panchayati Raj

Iistitutions (PRIs). Rs. 3576.35 crore (81.63%) was released to the States during the award

period 1995-2000.

16.3 The Eleventh Finance Commission (2000-2005) recommended a grant of Rs.8, 000

crore for Panchayats. An amount of Rs. 6601.85 crore (82.52%) was released to the States

during the award period 2000-05.

16.4 The Twelfth Finance Commission (2005-2010) recommended a grant of

Rs.20,000crore for the PRIs. Rs. 18,926.79 crore (94.63%) was released during the award

period 2005-10.

16.5 The Thirteenth Finance Commission (2010-2015) recommended Grants for

Panchayati Raj Institutions for the respective States in four components namely General

Basic Grant; General Performance Grant ;Special Area Basic Grant and Special Area

Performance Grant.

16.6 Release of Basic Grants was subject to the conditions that States must have elected

Panchayats in place and they submit utilization certificates.

16.7 Release of Performance Grant was released subject to compliance of six other

conditions by the States relating to reforms in budget and accounts, Technical Guidance &

Support (TG&S) from the Comptroller & Auditor General (C&AG) over audit of the

accounts of local bodies, timely transfer of funds to PRIs within 5-10 days of receipt from

the Central Govt., appointment of ombudsman, prescribing eligibility qualifications for

appointment of members of the State Finance Commissions and empowering local bodies to

levy property tax without hindrances.

Allocation and Releases for the award (2010-15)

(Rs. in crore)

Grants Allocation Releases

General Basic Grant 41771.19 39712.32

Special Area Basic Grant 799.00 682.74

General Performance Grant 22031.47 17471.83

Special Area Performance Grant 559.10 389.74

Grand Total 65160.76 58256.63

16.8 Fourteenth Finance Commission (FFC)- award period (2015-2020)

FFC recommended an amount of Rs. 2,00,292.20 crore only to the Gram Panchayats

constituted under Part IX of the Constitution @ of Rs. 488 per capita/ annum at an aggregate

level. Out of this, Rs. 1,80,262.98crore as Basic Grant and Rs.20029.22 crore as Performance

Grant (applicable from 2016-17) for 26 States.

16.8.1 90 percent of the Grants are the Basic Grants and 10 percent will be Performance

Grant (applicable from 2016-17).

16.8.2 The grants are allocated and released to various States by Ministry of Finance

(Department of Expenditure) in accordance with the guidelines issued by that Ministry dated

8-10-2015.

16.8.3 The year-wise allocation (2015-20) and releases (2015-16 & 2016-17) of Basic Grant

and Performance Grant recommended by Fourteenth Finance Commission is as under:

(Rs. in crore) Component

of Grant Allocation & Release Allocation Total

allocation (2015-20) 2015-16 2016-17 2017-18 2018-19 2019-20

Allocation Release Allocation Release Allocation Allocation Allocation

Basic Grant 21624.46 20475.41 29942.86

(38.4%)

7489.64 34596.25

(15.5%)

40021.65

(15.6%)

54077.76

(35.1%)

180262.98

Performance Grant

-- -- 3927.66 -- 4444.71

(13.1%)

5047.53

(13.5%)

6609.32

(30.9%)

20029.22

Total 21624.46 20475.41 33870.52 7489.64* 39040.96 45069.18 60687.08 200292.20

*As on 25-10-2016

Figures in ( ) shows % increase in allocation of Grants over previous year allocation.

16.8.4 These grants should go only to Gram Panchayats as they are directly responsible for

delivery of basic services without any share for other levels.

16.8.5 State-wise allocation and releases of Basic Grant for Rural Local Bodies for the years

2015-16 and 2016-17 is at annexure.

Purpose of the Grants for Gram Panchayats (GPs):

16.8.6 To improve the status of basic services including water supply, sanitation including

septic management, sewerage and solid waste management, storm water drainage,

maintenance of community assets, maintenance of roads, footpaths and street-lighting,

and burial and cremation grounds, and any other basic service within the functions

assigned to them under relevant legislations

16.8.7 Ensuring reliable audited accounts and data of receipts and expenditure and

improvement in own revenues.

Preparation of Gram Panchayat Development Plans (GPDP)

16.8.8 States prepared GPDP converging resources over which the GPs have commands

which include grants of the 14th

Finance Commission (FFC), MGNREGA and Swachh

Bharat Mission (SBM).

16.8.9 Considering that FFC accorded priority to provision of basic services in the utilisation

of its grants with primacy to water supply and sanitation:

that are critical for impact on the health of children, States could undertake

construction of toilets and water supply in anganwadis utilising the FFC

grants. [Advisory issued by MoPR to States dated 18-3-2016 ]

consider undertaking various activities connected with providing safe

drinking water to the people utilising FFC grants.[ Advisory issued by

MoPR to States dated 27-9-2016]

Conditions for release of Grants:

Basic Grant:

16.8.10 Grants are provided to duly constituted Panchayats as provided in Part IX of the

Constitution and receipt of Utilisation Certificate (UC) for the previous installment

drawn in the prescribed format given in Annexure III of the guidelines dated 8-10-

2015 to be furnished by the State.

16.8.11 The Grants shall be released in two equal instalments in June and October every

fiscal year.

16.8.12 The Grant should be released to GPs by the States within 15 days of it being

credited to their account by Union Government. In case of delay the State

Government must release the installment along with interest at Bank rate of RBI

paid from its own funds and a certification to this effect will be reflected in the UC

to be furnished by the State.

Performance Grant:

16.8.13Performance Grants applicable w.e.f. 2016-17, will be released only on fulfillment of

these two conditions-

(i) GPs to submit audited annual accounts that relate to the year two years

preceding the year in which the GP is eligible to claim the grant.

(ii) GP also to show an increase in the own revenues over the preceding years as

reflected in the audited accounts.

16.8.14Receipt of the scheme from the States for operationalising detailed procedure for

disbursal of the Performance Grant including quantum and incentive to be given to

GPs

Allocation for O&M and Capital expenditure:

10% of allocation of FFC grants is towards activities on providing administrative and

technical support for O & M and capital expenditure to GPs. [Advisory issued by

MoPR to States dated 16-12-2015 ]

DOs Donts

Hiring of services of professionals like accountant-

cum-data entry operators, engineers, etc., on

contract basis/piece rate basis and utilizing

‘barefoot’ professionals or Community Resource

Persons at GP level or for a cluster of GPs for

GPDP as per the requirements of the GPs. The

expenditure is to be shared by the GPs depending

on the quantum of services received.

purchase of computers and accessories and cost

of AMC in GPs which do not have any computer at

present.

one time cost for purchase of essential furniture for

GP office

payment of street light/ water supply charges if not

being met previously from any other scheme or by

any other agency. Old arrears should not be paid.

Meeting cost the cost/ honorarium of professionals

who may visit from time to time to check the quality

of civil works.

Data entry costs.

One time updation of accounts

Charges of Chartered Accountants who may audit

the accounts (if they are not the statutory auditors).

Expenditure on

activities already

being funded from

other schemes

Felicitation /cultural

functions/decorations/

inaugurations.

Honorarium, TA/DA of

elected

representatives and

salaries/ Expenditure

on doles/ awards.

Entertainment;

purchase of ACs;

purchase of vehicles

Cost of Social audit.

Hire charges for vehicles in emergent cases for

inspection of works.

Capacity building of functionaries if funds for the

same are not available under any CSS or State

Sector scheme.

Cost of preparation of technical plan for

implementation of projects like solid and liquid

waste management and drinking water etc.

Cost of preparation of GPDP – covering all the

processes like PRA, IEC, surveys, preparing maps

and other documents and holding consultations

and cost of essential conumables.

Electrification of GPs, including provision of solar

lights.

;

Monitoring of expenditure by GPs under FFC grants:

To facilitate better monitoring of the release/sector-wise expenditure made by GPs

from FFC grants, MoPR has developed online system (MIS) under PlanPlus

application (http://planningonline.gov.in/ffcReport.jsp). Data level entry has to be

provided by the State. State to upload the data on the portal.

Improving the system of Accounts keeping by Panchayats:

To facilitate simplifying and improving the system of basic accounts keeping in

Panchayats, MoPR has assigned the work of preparation of State/UT (except Delhi)-

specific budget, accounts and audit manuals for Panchayats to Institute of Public

Auditors of India (IPAI). The draft Manuals prepared by IPAI were forwarded by

IPAI to all 35 States/UTs (except Delhi) for adoption in their legal framework. So far

four States namely, Maharashtra, Manipur, Arunachal Pradesh and Punjab have

adopted the Manuals.

Constitutional Provisions for Fifth Schedule Areas

17. In order to protect the interest of Tribal people, Article 243M of the Constitution,

while exempting the Fifth Schedule areas from implementation of Part IX of the Constitution,

provides that Parliament may by law extend its provisions to the Scheduled and Tribal Areas

subject to such exceptions and modifications as may be specified in such law and no such law

shall be deemed to be an amendment to the Constitution. On the basis of the report of the

Bhuria Committee submitted in 1995, Parliament enacted “The Provisions of the Panchayat

(Extension to the Scheduled Areas) Act, 1996” (PESA) to extend Part IX of the Constitution

with certain modifications and exceptions to the Fifth Schedule areas notified in ten States

viz. Andhra Pradesh, Chhattisgarh, Gujarat, Himachal Pradesh, Jharkhand, Madhya Pradesh,

Maharashtra, Odisha, Rajasthan and Telangana. These Schedule areas in ten States extend in

108 districts (45 fully and 63 partly covered). The state wise details of notified Fifth Schedule

Areas are at Annexure-I. The Ministry of Panchayati Raj (MoPR) is the nodal Ministry for

implementation of the provisions of PESA.

17.1 Importance of Provisions of PESA Act for the Fifth Schedule Areas:

The Directive Principle of State Policy about establishment of virtual 'Village

Republics' as envisaged in article 40 of the Constitution has been incorporated in the PESA

Act for the Fifth Schedule Areas. Its effective implementation will bring about the following

benefits to the tribal population:

Institutionalize self-governance and people‟s participation in decision making. By

notifying Gram Sabha at village (hamlets or group of hamlets/ habitation or group of

habitations) level, people will feel more comfortable in taking part in the governance

of the village.

Reduce alienation in tribal areas as they will have control over the utilization of

public resources in the village through Gram Sabha.

Reduction of alienation and resentment among tribal population will have a positive

impact in reducing left wing extremism in the districts affected by it.

Reduce poverty and out-migration among tribal population as they will have control

over natural resources such as minor water bodies, minor forest produce, minor

minerals, etc. Control over and management of these resources will improve their

livelihoods and incomes.

Minimise exploitation of tribal population as they will be able to control and manage

money lending, consumption and sale of liquor and also village markets.

Check illegal land alienation and also restore unlawfully alienated tribal land. This

will not only reduce conflict but will also improve socio-economic status of tribals.

Better implementation on developmental schemes and programmes due to enhanced

people‟s participation in planning and identification of beneficiaries.

More accountable and responsive local administration due to control over

functionaries of social sector and also power to issue utilisation certificates.

Promotion of cultural heritage through preservation of traditions, customs and

cultural identity of tribal population.

17.2 Actions required by the States:

Panchayats being the „State‟ subject, the powers regulating the functioning of PRIs

including framing of local laws rests with the respective State Governments. The MoPR

being the nodal Ministry, strives to ensure its implementation primarily through advocacy

and financial support. All the Fifth Scheduled States are required to:

(i) Amend their State Panchayati Raj Acts in compliance with Section 4 of PESA Act.

The status of compliance is at Annexure-II

(ii) Amend their Subject Laws to make them compliant to provisions of PESA Act. The

status of compliance is at Annexure-III.

(iii) Frame their State PESA Rules for implementing the provision of PESA Act. So far

five States (Andhra Pradesh, Himachal Pradesh, Maharashtra, Rajasthan&Telangana)

have framed their State PESA Rules.

17.3 Initiatives taken by MoPR for implementation of PESA Act:

The States are being regularly persuaded for effective implementation of PESA Act.

Some of the initiatives taken by MoPR to strengthen the implementation of PESA Act are as

under:

Draft Model Rules was circulated by MoPR in 2009. Five States viz. Andhra Pradesh,

Himachal Pradesh, Maharashtra, Rajasthan and Telangana have notified their State

PESA Rules so far. Rest of the States are being requested persistently to expedite the

same.

Based on constant persuasion by the Ministry of Panchayati Raj, there has been good

progress by the States in amending their Panchayati Raj Acts and Subject Laws

(Annexure II and III)

A Committee on Harmonization of Central Laws with PESA Act, set up under the

chairmanship of the Union Law Secretary, has made recommendations to harmonise

certain Central laws with the provisions of PESA (List at Annexure-IV). The

recommendations have been shared with the Ministries requesting them to address the

issues of harmonisation of the laws. Ministry of Coal and Ministry of Tribal Affairs

have agreed to take actions to amend their relevant laws.

Under Rashtriya Gram SwarajAbhiyan (RGSA), the Fifth Schedule States are assisted

financially by providing:

One Gram Sabha Mobiliser in each PESA Gram Panchayat to ensure maximum

participation members of PRIs and its decision making process

One PESA coordinator in each Block,

One PESA coordinator in each district

A sum of Rs.10,000 for each Gram Panchayat for orientation programmes for

Gram Sabhas, and

A sum of Rs.10,000 for contracting the NGOs for regular hand holding.

The Ministry organized One-Day State-level workshops in the PESA States during

2014-15 to give a fillip to the implementation of PESA and improve the level of

awareness on the subject among the representatives of PRIs. The Workshop aimed to

bring an interface between the Government and the other stakeholders was

participated by senior officers from line departments at the State level, district

officials as District Magistrates, Divisional Forest Officers, etc., Chairpersons of

ZilaParishad, PanchayatSamitis, other elected representatives of Panchayats, active

members of Gram Sabha, active NGOs, advocacy organizations and so on.

A National Workshop was organized at New Delhi on February 4-5, 2016 to review

the progress of implementation of PESA in States, issues and challenges being faced

and the way forward. The workshop was attended by Union and State Ministers of

Panchayati Raj, State Tribal Welfare Department, State Secretaries, officials of Union

Ministries and other stakeholders.

National Meeting of Tribal Women Presidents of Gram Panchayats of Fifth Schedule

Areas was held at Vijayawada, Andhra Pradesh on April 19, 2016 on “the Role of

Women Gram Panchayat Presidents in the Development of the Fifth Schedule Areas”.

The meeting was attended by the Union and the State Ministers including their

officials besides 850Tribal Women Gram Panchayat Presidents from the Fifth

Schedule Areas.

Various Handbooks for use of Gram Panchayats/Gram Sabhas have been brought out

by the Ministry. Handbook of Community Mobilisation in Fifth Scheduled Areas was

released on National Panchayati Raj Day, 24th

April, 2015. The Book contains basic

information about the provisions of PESA, principles and methods of community

mobilization and role of Gram Sabha/Community Mobilisers and PESA Coordinators.

A separate guidelines for participatory Gram Panchayat Development Plan (GPDP)

for local development in PESA Areas, circulated to PESA States.

An advisory on bonded labour and distress migration in PESA areas have been issued

by MoPR.

18. LOCAL SELF-GOVERNANCE IN NORTH-EASTERN STATES

MoPR handholds the States in effective functioning of the Panchayats where Part IX

of the Constitution is applicable and to strengthen the democratic institutions and processes in

Non-Part IX States. Basic aim is enabling PRIs to emerge as "Institutions of Local-Self

Government" securing economic development and social justice in their respective area.Part

IX of the Constitution provides the framework to the Ministry for this purpose.

18.2 The North Eastern Region (NER), comprising of seven sisters of NE (Arunachal

Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland and Tripura) plus Sikkim, besides

being immensely important due to geo-strategic reasons, shares a rich history and culture.

18.3 Part IX is not applicable to a few areas of NER. Part IX of the Constitution is

applicable over whole of Arunachal Pradesh and Sikkim States and part areas of Tripura,

Assam and Manipur. The State of Nagaland, Hill Districts of Manipur and Mizoram (Non-

Sixth Schedule Areas) have State specific local self-governments. The village level bodies and

institutions in whole or part of States of Assam, Manipur, Meghalaya, Mizoram, Nagaland and

Tripura constituted under local laws or executive instructions are empowered to plan and

implement the programmes.

18.4 Articles 244(2) and 275(1) of the Constitution read with the Sixth Schedule embodies

provisions regarding administration of the identified tribal areas in the NE States of Assam,

Meghalaya, Tripura and Mizoram. These provisions were incorporated in the Constitution of

India to give greater autonomy to the identified tribal areas of the NE. The Sixth Schedule

identifies and designates certain tribal areas as autonomous districts. It provides for the

constitution of District Councils (DCs) and Regional Councils (RCs)/Village Councils (VCs)

for autonomous areas. The administration of an autonomous district is to be vested in a DC

and of an autonomous region, in a RC under Para 2 of the Sixth Schedule.

19. Rajiv Gandhi SashaktikaranAbhiyan (RGPSA)

19.1 To improve the functioning of PRI, the MoPR had implemented the Rajiv Gandhi

SashaktikaranAbhiyan (RGPSA) in the 12thFive Year Plan period i.e from 2012-13 upto

2015-16. The RGPSA addressed the major constraints of inadequate devolution of powers,

lack of manpower, inadequate infrastructure and limited capacity in the effective functioning

of Panchayats by providing manpower, infrastructure, trainings and promotion of devolution

of power to Panchayats and put in place structures of accountability. Substantive funds had

been released to the States up to 2014-15 towards the above activities.

19.2 W.e.f. the year 2015-16, the provision of funds to the States under the scheme was

transferred to the States. Funds to the tune of Rs.191.00 crore were provided for RGPSA in

the R.E. 2015-16 for Central activities. These funds received under the Central Component,

were primarily meant for supporting States to meet their Capacity Building obligations under

FFC Award particularly training support for Gram Panchayat Development Plan (GPDP).

Support was provided for Capacity Building requirement for GPDP, training infrastructure

and HR, HR for PESA and e governance, and for programme management costs.

19.3 Cumulative central release to States so far under the scheme was Rs 1253.42 Cr (from

2012-13 to 2015-16), against which expenditure reported by the States is Rs 1083.76 Cr

(86.46%). From the current year, new restructured scheme- Rashtriya Gram SwarajAbhiyan

(RGSA) is under formulation.

20. Rashtriya Gram SwarajAbhiyan(RGSA)

20.1 The Rashtriya Gram SwarajAbhiyan (RGSA) will focus on capacity building of

Panchayati Raj Institutions for convergent action to deliver basic services and achieve

development goals. Under RGSA comprehensive efforts will be made to support and

enhance the capacity building and training facilities for all stakeholders with particular

thrust on the aspects of GPDP.

20.2 Expeditious action is being taken for formulating the modalities of RGSA and its

guidelines. Pending finalization of scheme of RGSA, it has been decided to continue the

financial assistance to States towards capacity building & training activities of PRIs during

2016.17. Funds to the tune of Rs. 351.64 cr. (approx.) has so far been released to 19 States

(as on 19-09-2016).

21. Incentivization of Panchayats

21.1 Ministry of Panchayati Raj (MoPR) is incentivizing best performing Panchayats

recommended by the State Governments/Union Territories since 2011-12 under

PanchayatEmpowerment and Accountability Incentive Scheme (PEAIS) with the objective of

due recognition of PRIs that perform their role well and correct feedback to those that do not.

This is an incentive for PRI representatives to improve PRI performance, bring the issue of PRI

performance into prominence and focus the attention of policy makers and encourage State

Governments to develop their systems of assessment and encouragement.

21.2 The initiative has been continued by MoPR under Rajiv Gandhi

PanchayatSashaktikaranAbhiyan. From 2016-17, the scheme has been revamped with slight

modifications and is proposed to be a part/sub-scheme of Rashtriya Gram SwarajAbhiyan.

The awards are given on the National Panchayati Raj Day celebrated on 24th of April every

year.

21.3 Categories of Awards

I. PanchayatSashaktikaranPuraskars (PSP) in General and Thematic categories for

all three levels of Panchayats are given to best performing Panchayats (District, Intermediate

and Gram Panchayat) across the States/UTs in recognition of the good work that is done by

PRIs at each level for improving delivery of services and public goods. The 9 thematic

categories, for Panchayat Awards 2017 are:-

Sanitation,

Civic Services (drinking water, Street light, infrastructure),

Natural Resource Management,

Serving Marginalized section (women, SC/ST, disabled, senior citizen),

Social sector performance,

Disaster management,

CBOs/ Individuals taking voluntary actions to support Gram Panchayats, and

Innovation in revenue generation.

e-Governance (added during 2016-17)

II. Rashtriya Gaurav Gram Sabha (RGGS) are given to Gram Panchayats only, for

their outstanding contribution to the socio-economic development by involving Gram Sabhas.

III. The Award for good work in implementation of “Mahatma Gandhi National

Rural Employment Guarantee Scheme” - To be awarded for Gram Panchayats only. The

award is given by Ministry of Rural Development on the recommendations of MoPR.

21.4 For the Panchayat Awards 2016 (appraisal year 2014-15), nominations were invited

online with some relaxations for the areas with poor internet connectivity. One important

feature of the PSP-2016 awards was introduction of eight themes. On the occasion of

National Panchayati Raj Day held on 24th

April, 2016 at Jamshedpur in the State of

Jharkhand, which was graced by the Hon‟ble Prime Minister, a total of 183 Panchayats (21

District Panchayats, 39 Intermediate Panchayats and 123 Gram Panchayats) under PSP, 20

Gram Panchayats under RGGSP and 4 States under e-Puraskar were awarded. Out of 183

PSP, 21 Panchayats were awarded under thematic categories (4- Revenue Generation, 9-

Sanitation, 5-Social Sector Development and 3-Civic Services). Six States were given

Devolution Index Awards.

21.5 For the Panchayat Awards 2017, online nomination in the prescribed online formats

for the Awards (Appraisal year 2105-16) have been invited from all States and UTs. The

States/UTs are to undertake verification of the nominations filled by the Gram Panchayats,

Intermediate Panchayats and Districts Panchayats and recommend the names of selected

Panchayats online to this Ministry.

22. e-Panchayat

e-Panchayat is one of the Mission Mode Projects (MMP) under Digital India

Programme that seeks to completely transform the functioning of Panchayati Raj Institutions

(PRIs), making them more transparent, accountable and effective as last mile cutting edge

units of decentralized local self-governments. Under e-Panchayat, a suite of Core Common

Software Applications (Panchayat Enterprise Suite) has been developed (Annex-V) to

address various aspects of Panchayats‟ functioning including planning, budgeting,

implementation, accounting, monitoring, social audit and delivery of citizen services like

issue of certificates, licences, etc. Due to differentials in the level of preparedness for e-

enablement at the Panchayat level, the pace of adoption of these Applications varies across

States/UTs. The State-wise progress may be seen at Annex-VI. Besides, some States have

also developed their own State-specific applications for similar purpose.

23. Media & Publicity

23.1 To strengthen Panchayats and Gram Sabhas, MoPR needs to reach out to multiple and

diverse target groups including the rural population, PRI representatives and functionaries,

State officials of Panchayats, NGOs, as well as policy makers and opinion makers. Given the

divergent nature of the stakeholders to be addressed, advocacy, besides the route of official

communication, has to be supplemented through multimedia options. The Media and

Publicity scheme makes use of multiple communication strategies, mainly through electronic

and print media for advocacy and publicity regarding Panchayati Raj, as well as building the

capacities of Panchayats and enhancing their performance.

23.2 The media activities undertaken so far have mostly been focused on core issues

relating to the role of PRls, increasing their effectiveness and advocacy in their favour. The

policies, schemes and programmes formulated and implemented by this Ministry have been

highlighted through mass-media campaigns utilizing different occasions.

23.3 The activities undertaken during 2015-16 include:

(i) A seven day well-planned and comprehensive awareness generation–publicity

campaign was carried out in the run-up to the NPRD–2015 utilizing the cable

penetration and vast network of state-owned PrasarBharati (Doordarshan and

All India Radio) in the month of April 2015.

(ii) The Ministry collaborated with the Government of Maharashtra and mounted

an intensive mass awareness generation campaign on Gram Sabha and other

key issues relating to Panchayati Raj during the PalkhiSohala - 2015 & 2016

celebrations in Maharashtra.

(iii) The Ministry‟s tableau has been selected for showcasing the theme “Women

Empowerment &Panchayati Raj” during the Republic Day Parade–2016for the

successive second year and overall for the fourth time since this Ministry came

into existence in May 2004.

(iv) Training films, films on best performing Panchayats and animation films have

been got produced. The training films would be sent to State Institutes of

Rural Development (SIRDs) for use in their training programmes of Elected

Representatives and Functionaries of Panchayats and the films on success

stories are to be disseminated through State Governments and through the

regional channels of Doordarshan.

(v) The Central Government, in collaboration with State Governments and

Panchayats, launched the „Gramoday se Bharat UdayAbhiyan‟, inaugurated by

Hon‟ble Prime Minister of India. The campaign began with Dr.

BhimraoAmbedkar‟s 125th Birth Anniversary on 14th April 2016, and

culminated National Panchayati Raj Day on the 24th April 2016. In this

campaign, Nation-wide efforts were made to strengthen Panchayati Raj, and

through it, increase social harmony across villages, promote rural

development, and foster farmers‟ welfare & livelihoods of the poor. Various

events and activities marked the campaign: From 14th April to 16th April,

2016 a „Social Harmony Programme‟ has been conducted in all Gram

Panchayats. Subsequently, between 17th April to 20th April, 2016, Gram

KisanSabhas have been organized in Gram Panchayats. A National Meeting of

Tribal Women Gram Panchayat Presidents from Fifth Schedule Areas of 10

States was held at Vijaywada on 19th April, 2016. The theme of National

Meeting was: „Role of women Gram Panchayats in Development of Schedule

V Areas‟. Gram Sabha meetings have been held from 21-24th April, 2016

across the country (except poll-bound States). The topics of discussions in

these Gram Sabhas were:-

Gram Panchayat Development Plans for local economic development,

Optimum utilization of funds available with Panchayati Raj

Institutions,

Clean drinking water and sanitation,

Role of women in village and rural development.

Social inclusion

Around 300 Central Government officers were deputed to go to a district and attend

one of the programmes of the Gramoday se Bharat UdayAbhiyan. States have taken up this

campaign with enthusiasm. For the first time, Hon‟ble Prime Minister, for the first time,

addressed the people and all Gram Sabhas by use of technology. All over India, people had

gathered in their respective villages to listen to the Prime Minister‟s address.

Social Media

23.4 With more emphasis being laid on the social media as a powerful tool for ensuring

wider reach and in order to fulfill the Government‟s commitment to engage with people

directly; the Ministry of Panchayati Raj created its Facebook page

(www.facebook.com/ministryofpanchayatiraj) in the year 2014 and also launched the official

twitter handle (@MoPR GOI) and (@MoPRIndia). The initiatives/ programmes of Ministry

of Panchayati Raj and the important related developments taking place are communicated

through these platforms.

24. Feedback through Action Research & Research Studies

10.1 The Ministry of Panchayati Raj undertakes various research and research studies to

get the field level feedback through independent agencies on actual devolution to the PRIs,

their role in the planning and development process achieving the social development goals

and their contribution in promoting good governance at the grassroot level. Further, the

periodical studies of State of Panchayat Report (SoPR) and Devolution Index (DI) Report

gives a comparative position on efforts made by the States to strengthen the PRIs. The better

performing States in this regard gets recognized under the incentivization scheme.

Dissemination of this information and the incentivization encourages other states also to

devolve more powers to the PRIs.

Annexure-I

Details of Notified Fifth Schedule Areas

Sl.

No.

Name of the State Villages Panchayats Blocks Districts

Fully

covered

Partially

covered

1 Andhra Pradesh 1586 588 36 0 5

2 Chhattisgarh 9977 5050 85 13 6

3 Gujarat 4503 2388 40 4 7

4 HP 806 151 7 2 1

5 Jharkhand 16022 2074 131 13 3

6 Madhya Pradesh 11784 5211 89 5 15

7 Maharashtra 5905 2835 59 0 12

8 Odisha Not Available 1921 119 6 7

9 Rajasthan 672 4544 26 2 3

10 Telangana Not Available 631 72 0 4

Total 51255 25393 664 45 63

Annexure-II

Compliance of State Panchayati Raj Acts with Section 4 of PESA Act

States Provisions under clauses of Section 4 of PESA

d

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Sub-clauses of Section-4(m)

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nt)

(ii)

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(iii

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on

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un

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ries

)

Andhra Pradesh Y Y Y Y Y Y Y Y Y Y Y Y Y Y

Chhattisgarh Y Y Y Y Y Y Y Y Y N Y Y N Y

Gujarat Y Y Y Y Y Y Y Y N Y Y Y Y Y

Himachal Pradesh Y Y Y Y Y Y Y Y Y Y Y Y Y Y

Jharkhand Y Y Y Y N N N N N N N Y N Y

Odisha Y Y Y Y Y Y Y Y Y Y Y Y Y Y

Maharashtra Y Y Y N Y Y Y Y Y Y Y N Y Y

MP Y Y Y Y Y Y Y Y N N N Y N Y

Rajasthan Y Y Y Y Y Y Y Y Y Y Y Y Y Y

Telangana Y Y Y Y Y Y Y Y Y Y Y Y Y Y

„Y‟ denotes the provision has been made PESA compliant.

„N‟ denotes action is yet to be completed.

Annexure-III

Compliance of important Subject Laws with PESA

States Land

acquisition

Excise Forest

produce

Mines

and

minerals

Agri

produce

market

Money

lending

Andhra Pradesh

(Includes Telangana)

N N N N N N

Chhattisgarh Y Y N Y Y Y

Gujarat N Y N Y Y Y

Himachal Pradesh Y Y Y Y N N

Jharkhand N N Y* N N N

Odisha N Y Y Y N Y

Maharashtra N N Y N N N

Madhya Pradesh Y Y N Y Y N

Rajasthan N N N Y N Y

* Jharkhand Govt. has adopted a resolution on 8.2.2007 conferring ownership right over MFP

to GP.

Annexure-IV

The Central Legislations recommended for amendments by Harmonization

Committee

Sl.

No.

Name of the Ministry

Name of the Legislation

1. Ministry of Environment

Forests and Climate Change

(i) Forest (Conservation) Act, 1980

(ii) Indian Forest Act, 1927

2. Ministry of Mines and

Minerals

(iii) Mines and Minerals (Development and

Regulation) Act, 1957

3. Ministry of Tribal Affairs (iv) Scheduled Tribes and Other Traditional

Forest Dwellers (Recognition of Forest

Rights) Act, 2006

4. Ministry of Coal (v) Coal Bearing Areas (Acquisition

&Development) Act, 1957

5. Ministry of Petroleum (vi) Petroleum and Minerals Pipelines

(Acquisition of Right of User in Land) Act,

1962

Annex-V

List of PES Applications

Sr.

No.

Application Description

1 PRIASoft

https://accountingonline.gov.in/

Captures receipt & expenditure details through voucher

entries and automatically generates cash book, registers,

etc.

2 PlanPlus

http://planningonline.gov.in/

Helps Panchayats, Urban Local Bodies and line

departments in preparing Perspective, Annual and

Action Plans.

3 National Panchayat Portal

(NPP)

http://panchayatportals.gov.in/

Dynamic Web site for each Panchayat to share

information in public domain.

4 Local Government Directory

http://lgdirectory.gov.in/

Captures all details of local governments and assigns

unique code. Also maps Panchayats with Assembly and

Parliamentary Constituencies.

5 ActionSoft

http://reportingonline.gov.in/

Facilitates monitoring of physical & financial

outcomes/outputs under various programmes.

6 National Asset Directory

(NAD)

http://assetdirectory.gov.in/

Captures details of assets created/maintained; helps

avoid duplication of works.

7 Area Profiler

http://areaprofiler.gov.in./

Captures geographic, demographic, infrastructural,

socio-economic and natural resources profile of a

village/panchayat. Universal database for planning of all

sectoral programmes and also provides details of

Elected Representatives, etc.

8 ServicePlus

http://serviceonline.gov.in./

A dynamic metadata-based service delivery portal to

help in providing electronic delivery of all services in all

States. The functionality of the erstwhile Grievance

Redressal Application has also been subsumed into this

Application.

9 Social Audit

http://socialaudit.gov.in./

Captures details of social audit undertaken at ZP/BP/GP

level

10 Trainings Management

http://trainingonline.gov.in/

Portal to address training needs of stakeholders

including citizens, their feedback, training materials etc.

11 Geographic Information

System (GIS)

A spatial layer to view all data generated by all

Applications on a GIS map

Annex-VI

State/ UT-wise Adoption of PES Applications

1. PRIASoft = States entering vouchers online for FY 2013-14 & FY 2014-15.

2. PlanPlus = States uploading approved Annual Action Plans for FY 2013-14 & FY 2014-15.

3. National Panchayat Portal = States where the dynamic websites have been provided to

Panchayats (on State’s request).

Name of

Application

In Use by States/UTs

PRIASoft1 Andhra Pradesh, Assam, Bihar, Chhattisgarh, Haryana, Himachal Pradesh,

Jharkhand, Maharashtra, Odisha, Punjab, Puducherry, Rajasthan, Sikkim,

Tamil Nadu, Telangana, Tripura, Uttarakhand, Uttar Pradesh and West Bengal.

PlanPlus2

Andhra Pradesh, Assam, Bihar, Chhattisgarh, Gujarat, Haryana, Himachal

Pradesh, Jammu and Kashmir, Jharkhand, Karnataka, Madhya Pradesh,

Maharashtra, Odisha, Punjab, Rajasthan, Sikkim, Telangana, Uttarakhand,

Uttar Pradesh and West Bengal.

National

Panchayat

Portal3

Andhra Pradesh, Assam, Bihar, Chhattisgarh, Dadra and Nagar Haveli,

Daman and Diu, Gujarat, Haryana, Himachal Pradesh, Jharkhand, Madhya

Pradesh, Maharashtra, Odisha, Punjab, Rajasthan, Sikkim, Telangana, Tripura,

Uttarakhand, Uttar Pradesh and West Bengal.

Local

Government

Directory4

All States/UTs except Meghalaya, Chandigarh and Delhi.

ActionSoft5

Andaman and Nicobar Islands, Andhra Pradesh, Assam, Bihar, Chhattisgarh,

Gujarat, Haryana, Himachal Pradesh, Jharkhand, Madhya Pradesh,

Maharashtra, Odisha, Rajasthan, Sikkim, Telangana, Uttarakhand, Uttar

Pradesh and West Bengal.

National Asset

Directory6

Andhra Pradesh, Assam, Bihar, Chhattisgarh, Dadra and Nagar Haveli,

Gujarat, Haryana, Himachal Pradesh, Jammu & Kashmir, Jharkhand, Kerala,

Maharashtra, Manipur, Puducherry, Punjab, Rajasthan, Sikkim, Tamil Nadu,

Telangana, Tripura, Uttar Pradesh, Uttarakhand and West Bengal.

AreaProfiler7

Andaman and Nicobar Islands, Andhra Pradesh, Arunachal Pradesh, Assam,

Bihar, Chhattisgarh, Dadra and Nagar Haveli, Goa, Gujarat, Haryana,

Himachal Pradesh, Jammu and Kashmir, Jharkhand, Karnataka, Kerala,

Lakshadweep, Madhya Pradesh, Maharashtra, Manipur, Odisha, Punjab,

Rajasthan, Sikkim, Tamil Nadu, Tripura, Uttarakhand, Uttar Pradesh and West

Bengal.

ServicePlus8

Chhattisgarh, Jharkhand and Maharashtra.

Training

Management9

Maharashtra

Social Audit &

Meeting

Management10

Maharashtra

4. Local Government Directory = States where unique codes have been defined for Panchayats

or equivalent Rural Local Bodies

5. ActionSoft = States where financial/physical progress of works undertaken by Panchayats is

being captured.

6. National Asset Directory = States where Panchayats have started putting details of their

Assets in public domain.

7. AreaProfiler = States where local profile (election details, demographic data, family register,

etc) is being put in public domain

8. ServicePlus = States where ServicePlus is being used to deliver services through Panchayats

9. Training Management=States where details of trainings are being entered online.

10. Social Audit and Meeting Management = States where details of meeting are being entered

online.

*****