Published on 08 Jan 2025
Challenges faced by local self government in India
Constitutionalization of local self-government was intended to make the body a responsible body for improving governance in the local areas But still, they are not performing to their fullest potential due to many roadblocks in their functioning.
Incomplete devolution of functions: Devolving powers to the local government is not a mandatory provision that inhibits states from granting more powers to the local body.
Example: The CAG report has highlighted lack of power transfer in subjects like town planning, water supply and fire services.
Lack of fiscal autonomy: They lack independent taxation power in many states and are heavily dependent on grants, which are of tied nature. Adding to this is the poor functioning of the State Finance Commission.
Example: The reports of the second State Finance Commission of Karnataka and Maharashtra have not been placed before the legislature for years.
Unequal resource allocation: Resources are distributed in an uneven manner in which politically affluent regions get a major chunk.
Socio-cultural barriers: This could often affect the participation and winnability of lower caste and women who are part of election.
Example: The rise of Sarpanch pathi culture has been an indication of social barriers which hinder women from holding power.
Inadequate infrastructure: Lack of independent funding has led to infrastructure shortage which has affected long-term planning and implementation of schemes.
Example: Lack of connectivity hinders efficient service delivery in rural areas.
Inability to conduct regular elections: There has been delay in conducting elections in many states. Also, there are no grounds specified, according to which local government can be dissolved which increases the discretionary powers of the government.
Example: CAG report highlights the delay in local body election in Uttarakhand due to delay in conducting delimitation by the state government.
Lack of capacity: The local leaders may not be knowledgeable enough to implement many landmark schemes and may succumb to the wishes of the bureaucrats.
Example: Poor digital literacy among local leaders prevents efficient penetration of digitization efforts into the region.
Red tapism: The local representatives might face off against bureaucrats, whose inefficient functioning also affects the functioning of local governments.
Example: Many programmes require coordination between local government, and State constituted Single purpose agencies, with the delay in functioning by the latter affecting the performance of the local government.
How to address these challenges
Mani Shankar Aiyer committee recommendations
Panchayat heads and members to be trained in accounting and auditing, beyond governance.
Panchayat should have effective control over the employees deputed to them by the state government through payment of their salaries.
An ombudsman to be set up for panchayat in all states
Gram Sabha to be empowered to monitor and make decisions on social sector schemes.
2nd ARC recommendation
Allow local governments to issue bonds to raise funds which makes them more financially independent.
Activity mapping to better track and monitor the functioning of local government.
Punchhi Commission recommendation: Formation of National Commission for Panchayats to make their functioning more efficient.
Financial autonomy: Taxation powers to be increased and ensure regular grants which are more of an independent nature. The recommendations of the State Finance Commission should be treated with more relevance.
Example: In Kerala, one-third of the development fund is devolved for grass root development.
Follow principle of subsidiarity: This will ensure more functions are being devolved to the local governments.
Polity
Local self governance
Mani Shankar Aiyer committee
principle of subsidiarity
General Studies Paper 2
Governance and Transparency