Local governments

Presented by Santhosh Rao

Menneni
 Learning objectives
• Need of local governments
• Popular opinions on local governments
• Success stories
• Evolution of local governments
• Panchayatraj system
• 73rd Amendment Act of 1992
• Compulsory and Voluntary Provisions
• PESA Act of 1996 (Extension Act)
• Finances of Panchayati Raj
• Municiplaties
• Evolution of Urban Bodies
• 74th Amendment Act of 1992
• Types of Urban Governments
• Municipal Personnel
• Municipal Revenue
• Achievemtns of local governments
• Challenges facing by local governments
• Way ahead
• Practice questions
 DPSP
• Article 40 (Organisation of village panchayats):
• 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
 Evolution of Local self govrnments in India
• 02nd Oct 1952: Community Development Programmes (CDP)
• 1957: Balwant Rai Mehta
• 1977: Ashok Mehta Committee
• 1983: Hanumantha Rao Committee
• 1985: G.V.K. Rao Committee
• 1986: L.M.Singhvi Committee
• 1988: Sarkaria Commission on Centre-State relations
• 1989: P.K. Thungan Committee
• Article 40 (Organisation of village panchayats)
• Constitutional status to PRI’s: Efforts by various governments
• Significance of constitutional status
• Salient Features of the Constitution 73rd and 74th Amendments
• Basic units of democratic system
• Compulsory Provisions
 Local self governments
• Rural level: Panchayat raj system
• Urban level: Municipalities
• Basic units of democratic system:
• Gram Sabhas (villages)
• Ward Committees (Municipalities)
 Panchayat raj system:
• Constitutional amendment: 73rd CAA 1992
• Implementation: 24th April 1993 (Excluded areas)
• Part: Part IX from Art 243-Art 243 (O).
• Schedule: 11
• Subjects mentioned: 29
• 243A. Gram Sabha: It is Village assembly, it consists of all registered voters in that
panchayat area.
• 243B. Constitution of Panchayats.
• 243C. Composition of Panchayats
• 243 D. Reservation of seats
• 243E. Duration of Panchayats, etc:
• 243F. Disqualifications for membership
• 243G. Powers, authority and responsibilities of Panchayats
• 243H. Powers to impose taxes by, and Funds of, the Panchayats
• 243-I. Constitution of Finance Commission to review financial position
• 243J. Audit of accounts of Panchayats
• 243K. Elections to the Panchayats
• 243L. Application to Union territories
• 243M. Part not to apply to certain areas
• 243N. Continuance of existing laws and Panchayats
• 243-O. Bar to interference by courts in electoral matters
 Municipalities
• Constitutional amendment: 74th CAA in 1992.
• Implementation: 01st June 1993.
• Part: Part IX (A) from Art 243 (P) to Art 243 Z (G).
• Schedule: 12.
• Subjects: 18 subjects
• There are eight types of urban local governments in India:
• 1. Municipal corporation
• 2. Municipality
• 3. Notified area committee
• 4. Town area committee
• 5. Cantonment board
• 6. Township
• 7. Port trust
• 8. Special purpose agency.
• EVOLUTION OF URBAN BODIES
• 243Q. Constitution of Municipalities:
• 243R. Composition of Municipalities:
• 243S. Constitution and composition of Wards Committees, etc:
• 243T. Reservation of seats:
• 243U. Duration of Municipalities, etc.:
• 243V. Disqualifications for membership:
• 243ZA. Elections to the Municipalities
• 243W. Powers, authority and responsibilities of Municipalities, etc
• 243X. Power to impose taxes by, and Funds of, the Municipalities
• 243Y. Finance Commission
• 243Z. Audit of accounts of Municipalities
• 243ZB. Application to Union territories
• 243ZC. Part not to apply to certain areas
• 243ZD. Committee for district planning
• 243ZE. Committee for Metropolitan planning:
• 243ZF. Continuance of existing laws and Panchayats
• 243ZG. Bar to interference by courts in electoral matters
• CENTRAL COUNCIL OF LOCAL GOVERNMENT
Feature Panchayat Raj Municipality
Gram Sabha 243A 243S
Constitution of Panchayats 243B 243Q
Composition of Panchayats 243C 243R
Reservation of seats 243 D 243T
Duration of Panchayats 243E 243U
Disqualifications for 243F 243V
membership
Powers, authority and 243G 243W
responsibilities of Panchayats
Powers to impose taxes by, 243H 243X
and Funds of, the Panchayats
Finance Commission 243-I 243Y
Feature Panchayat Raj Municipality
Audit of accounts 243J 243Z
Elections to the Panchayats 243K 243ZA
Application to Union 243L 243ZB
territories
Part not to apply to certain 243M 243ZC
areas
Continuance of existing 243N 243ZF
laws and Panchayats
Bar to interference by 243-O 243ZG
courts in electoral matters
Committee for district 243ZD 243ZE
planning
 TYPES OF URBAN GOVERNMENTS

• 1. Municipal Corporation
• 2. Municipality
• 3. Notified Area Committee
• 4. Town Area Committee
• 5. Cantonment Board
• 6. Township
• 7. Port Trust
• 8. Special Purpose Agency
 Achievements
• 1. Succeeded in creating another layer of government and political representation at the
grass-roots level
• 2. Increased female political representation in local governments
• 3. Statutory safeguards for many devolution provisions
• 4. Increased fund allocations for local governements
 Challenges
• 1. Lack of adequate funds.
• 2. Interference of area MPs and MLAs in the functioning of panchayats
• 3. Delegation of powers, functions, and finances of the local governments left to the state
legislatures.
• 4. Presence of Panch-Pati and Proxy representation in case of women and SC/STs
representatives respectively.
 Way forward
• 1. 6th report of 2nd ARC, ‘Local Governance- An inspiring journey into the future’’, had
recommended that

• Clear-cut demarcation of functions of each tier of the government.

• 2. Separate bureaucratic cadre for Panchayats
• 3. Training should be provided to local representatives
• 4. Minimum qualification standards for Panchayat elections.
 Panchayati Raj
1. The fundamental object of Panchayati Raj system is to ensure which among the following?
(2015)
(1) People’s participation in development
(2) Political accountability
(3) Democratic decentralization
(4) Financial mobilization
Select the correct answer using the code given below
 Panchayati Raj
• (a) 1,2 and 3 only (b) 2 and 4 only
• (c) 1 and 3 only (d) 1,2,3 and 4
Answer: A
 Panchayati Raj
2. With reference to the ‘Gram Nyayalaya Act’, which of the following statements is/are correct?
(2016)
1. As per the Act, Gram Nyayalayas can hear only civil cases and not criminal cases.
2. The Act allows local social activists as mediators/reconciliators.
Select the correct answer using the code given below.
(a) 1 only (b) 2 only
(c) Both 1 and 2 (d) Neither 1 nor 2
Answer: B
 Panchayati Raj
3. Consider the following statements: (2016)
1. The minimum age prescribed for any person to be a member of Panchayat is 25 years.
2. A Panchayat reconstituted after premature dissolution continues only for the remainder
period.
Which of the statements given above is/are correct?
(a) 1 only (b) 2 only
(c) Both 1 and 2 (d) Neither 1 nor 2
Answer: B
 Panchayati Raj
4. Local self-government can be best explained as an exercise in (2017)
(a) Federalism
(b) Democratic decentralisation
(c) Administrative delegation
(d) Direct democracy
Answer: B
5.Which of the following statements is /are correct?
• 1. The elections to the Panchayat are conducted by the State Election Commission.
• 2. The State Election Commissioner is appointed by the Chief Election Commissioner of India.
• 3. The State Legislatures have the power to make laws on all matters relating to panchayat
elections.
(a) 2 only (b) 1 and 2 only
(c) 1,2 and 3 only (d) 1 and 3 only
• Answer: D
6.Which of the following statements about the Panchayati Raj system are correct?
• 1. All seats in a Panchayat are filled by persons chosen by direct election.
• 2. The 'Gram Sabha' consists of persons registered in the village electoral rolls.
• 3. The Chairperson of a Panchayat is elected in accordance with a law passed bu each state.
• 4. All states in India have a three tier system of Panchayats.
(a) 1 and 4 only (b)1,2 and 3 only
(c) 2 and 3 only (d) 2,3 and 4 only
• Answer: B
• 7 . The provisions of the constitution of India pertaining to the institution of panchayat do
not apply to which one of the following states?
• (a)Meghalaya
• (b)Tripura
• (c)Assam
• (d)Goa
• Answer: A
• 8. The 11th schedule of the constitution of India distributes the power between the
• (a) The union and the state legislature
• (b) The state legislature and the panchayat
• (c) The municipal corporation and panchayat
• (d) The gram sabha and the panchayat
• Answer: B
• 9. The power to legislate on all matters relating to elections to panchayats lies with:
• (a) The parliament of India
• (b) The state legislature
• (c) The state election commission
• (d) The election commission of India
• Answer: B
• 10. Under which article of the Constitution of India has provision been made for reservation
of seats for women in panchayats?
• (a) article 243B
• (b) article 243C
• (c) article 243D
• (d) article 243E
• Answer: C
• 11. Consider the following statements:
• 1. A Panchayat elected in the place of a dissolved one, does not enjoy the full period but
remains in offce for the remaining period after the dissolution.
• 2. In Panchayats, seats are reserved for the Scheduled Castes, Scheduled Tribes and women
but not for Backward Classes of citizens.
• Which of the statements given above is / are correct?
• (a) Only 1 (b) Only 2
• (c) Both 1 and 2 (d) Neither 1 nor 2
• Answer: C
• 12. Consider the following statements:
• 1. Courts have no jurisdiction to examine the validity of a law relating to delimitation of
constituencies or allotment of seats in respect of Panchayats.
• 2. An election to a Panchayat can be called in question only by an election petition, which
should be presented to such authority and in such manner as may be prescribed by the
State Election Commission.
• Which of the statements given above is / are correct?
• (a) Only 1 (b) Only 2
• (c) Both 1 and 2 (d) Neither 1 nor 2
• Answer: A
• 13. Consider the following statements:
• 1. The Eleventh Schedule was inserted in the Constitution of India by the Constitution
(Seventy Third Amendment) Act, 1992.
• 2. The Eleventh Schedule of the Constitution of India corresponds to Article 243-W of the
Constitution of India.
• Which of the statements given above is / are correct?
• (a) Only 1 (b) Only 2
• (c) Both 1 and 2 (d) Neither 1 nor 2
• Answer: A
• 14. Consider the following statements:
• 1. According to Article 243D, one-third of the seats are reserved for the Scheduled Castes
and Scheduled Tribes in every Panchayat.
• 2. Not less than one-third of the total number of seats reserved for the SCs and STs in every
Panchayat are reserved for women belonging to the Scheduled Castes, or as the case may
be, the Scheduled Tribes.
• 3. Not less than one-third of the total number of offces of chairpersons in Panchayats at
each level are reserved for women.
• Which of the statements given above are correct?
• (a) 1 and 2 only (b) 2 and 3 only
• (c) 1 and 3 only (d) 1, 2 and 3
• Answer: B
• 15. On which of the following subjects, does the Finance Commission of a State constituted
under the Part IX of the Constitution of India make recommendations to the Governor?
• 1. Distribution between the State and the Panchayats of the net proceeds of the taxes by
the State.
• 2. Determination of the taxes which may be assigned to or appropriated by the Panchayats.
• 3. Grants-in-aid to the Panchayats from the Consolidated Fund of the State.
• Select the correct answer using the codes given below:
• (a) 1, 2 and 3 (b) 1 and 2 only
• (c) 2 and 3 only (d) 1 and 3 only
• Answer: A
• 16. Which one of the following is not correct?
• (a) Part XI of the Constitution of India pertaining to the Panchayats provided for setting up
of a Finance Commission.
• (b) Part XI of the Constitution of India pertaining to the Panchayats provided for vesting all
elections to the Panchayats in a State Election Commission.
• (c) Part IX of the Constitution of India pertaining to the Panchayats provided for reservation
of posts of chairpersons at the village level or any other level for the Scheduled Castes,
Scheduled Tribes and women.
• (d) Organisation of Village Panchayats is not included in the Directive Principles of State
Policy
• Answer: D
• 17. 73rd Amendment to the Constitution of India provides for:
• (a) Two tiers of Panchayati Raj institutions at the village and district levels
• (b) Two tiers of Panchayati Raj institutions at the village and block levels
• (c) Two tiers of Panchayati Raj institutions at the block and district levels
• (d) Three tiers of Panchayati Raj institutions at the village, block and district levels.
• Answer: D
• 18. Who makes provisions with respect to the maintenance of accounts by the Panchayats
and the auditing of such accounts?
• (a) Finance Commission of the concerned State
• (b) Legislature of the State
• (c) Comptroller and Auditor General of India
• (d) District Collector
• Answer: B
• 19. The State Election Commissioner can be removed:
• (a) By the Governor of the State
• (b) By the State Assembly
• (c) Through an order issued by the Chief Minister
• (d) Through a procedure similar to that for removal of the judge of a High Court
• Answer: D
• 20. Which one of the following about Article 243 (G) is correct?
• (a) Panchayats should be enabled by law to function as agents of the State Government.
• (b) Panchayats should be enabled by law to function as institutions of self-government.
• (c) Panchayats will act as the implementing agencies for centrally sponsored schemes.
• (d) Gram Panchayats will be answerable to District Panchayats.
• Answer: B
• 21. Consider the following statements:
• 1. The Chairperson of a Panchayat at district level is elected in such manner as the Legislature of
the State may provide.
• 2. Legislature of a State may provide for representation of members of the Legislative Assembly
of the State representing constituencies which comprise wholly or partly a Panchayat area at a
level other than the village level, in such Panchayat.
• 3. The Lok Sabha may provide for the representation of its members representing constituencies
which comprise wholly or partly a Panchayat area at a level other than the village level, in such
Panchayat.
• Which of the statements given above is/are correct?
• (a) 1 and 2 (b) Only 2
• (c) Only 3 (d) 2 and 3
• Answer: B
• 22. Assertion (A): The Constitution of India now provides a mechanism for regular fow of
funds to Panchayati Raj institutions.
• Reason (R): The Panchayati Raj institutions have been greatly handicapped in the
performance of their assigned duties by paucity of funds.
• Codes:
• (a) Both A and R are individually true and R is the correct explanation of A
• (b) Both A and R are individually true but R is not the correct explanation of A
• (c) A is true but R is false
• (d) A is false but R is true
• Answer: A
• 23. Consider the following statements with respect to the 73rd Constitutional Amendment:
• 1. It envisages the Gram Sabha as the foundation of the Panchayati Raj System.
• 2. It provides that Panchayat bodies will have a duration of fve years.
• 3. It stipulates that the Chairperson of a Panchayat shall be elected by and from amongst
the elected members thereof.
• 4. It has reserved 33 per cent of the seats to Other Backward Classes in Panchayati Raj
Institutions.
• Which of the statements given above are correct?
• (a) 1, 2, 3 and 4 (b) 1, 2 and 3
• (c) 2, 3 and 4 (d) 1 and 2
• Answer: D
• 24. Under which one of the following provisions is reservation for the Scheduled Castes and
the Scheduled Tribes in every Panchayat made?
• (a) Article 243 (Q) of the Constitution of India
• (b) Article 243 (V) of the Constitution of India
• (c) Article 243 (S) of the Constitution of India
• (d) Article 243 (D) of the Constitution of India
• Answer: D
• 25. Which of the following provisions can be made by law by a State Legislature?
• 1. Representation of the members of the House of People in Panchayats subject to fulflling
• certain conditions
• 2. Reservation of seats in any Panchayat in favour of backward class of citizens
• 3. Authorising a Panchayat to levy, collect and appropriate taxes
• Select the correct answer using the codes given below:
• (a) 1, 2 and 3 (b) 1 and 2, only
• (c) 2 and 3, only (d) 1 and 3, only
• Answer: A
• 26. What is the minimum population below which Panchayats at the intermediate level are
not constituted as per provision of the Constitution (Seventy-third Amendment) Act?
• (a) 20 lakhs
• (b) 25 lakhs
• (c) 30 lakhs
• (d) 35 lakhs
• Answer: A
• 27. State Finance Commission is appointed by a State Government every fve years to
determine:
• (a) Financial resources of the State for placing State’s requirement before the Union
Government
• (b) Development requirements of the State for formulating State Five Year Plan
• (c) Budgetary requirements of various departments of the State Government
• (d) Pattern of distribution of State’s tax revenue between the State Government and local
bodies (both rural and urban) and the pattern of grants-in-aid to local bodies
• Answer: D
• 28. Under which of the following Articles of the Constitution of India, the State Legislatures
delegate powers and functions to the Panchayats?
• (a) 243 and 243 A (b) 243 A and 243 B
• (c) 243 G and 243 H (d) 243 D and 243 F
• Answer: C
• 29. In 1977, under whose chairmanship, the Panchayati Raj Committee was formed?
• (a) Ashok Mehta (b) Sardar Swaran Singh
• (c) Balwant Rai Mehta (d) Madhu Dandawate
• Answer: A
• 30. Which of the following statements are correct? Village Panchayats are responsible for:
• 1. Agricultural production
• 2. Rural industrial development
• 3. Maternity and child welfare
• 4. Higher vocational education
• Select the correct answer using the codes given below:
• (a) 1, 2 and 4 (b) 1 and 3
• (c) 1, 2 and 3 (d) 2, 3 and 4
• Answer: C
• 31.Consider the following statements:
• 1. The Chairperson of every District Planning Committee shall forward the development
plan as recommended by such Committee to the Governor of the State.
• 2. Not less than two-thirds of the total number of members of the District Planning
Committee shall be elected, from amongst, the elected members of the Panchayat at the
district level and the Municipalities in the district.
• Which of the statements given above is / are correct?
• (a) Only 1 (b) Only 2
• (c) Both 1 and 2 (d) Neither 1 nor 2
• Answer: D
• 32. Consider the following statements:
• 1. In an urban area where municipal services are being provided by an industrial
establishment, it is still mandatory to constitute a Municipality under the 74th
Constitutional Amendment Act.
• 2. It is obligatory to constitute Ward Committees for one or more wards within the
territorial area of a Municipality having a population of 3 lakhs or more.
• Which of the statements given above is / are correct?
• (a) Only 1 (b) Only 2
• (c) Both 1 and 2 (d) Neither 1 nor 2
• Answer: B
• 33. Which of the following statements regarding the Seventy-Fourth Amendment to the
Constitution of India are correct?
• 1. It provides for the insertion of a new Schedule to the Constitution.
• 2. It restructures the working of the municipalities.
• 3. It provides for the reservation of seats for women and Scheduled Castes in the
municipalities.
• 4. It is applicable only to some specifed states.
• Select the correct answer using the codes given below:
• (a) 1, 2 and 3 (b) 1,2 and 4
• (c) 1, 3 and 4 (d) 1, 2, 3 and 4
• Answer: A
• 34. Consider the following:
• 1. District Board
• 2. Municipal Corporation
• 3. Notifed Area Authority and Town Area Committee
• 4. Township Committee and Port Trust
• Which of these is/are urban local body / bodies in India?
• (a) Only 1 (b) 2 and 3
• (c) 1, 3 and 4 (d) 2, 3 and 4
• Answer: D
• 35. As per the Constitution (74th Amendment) Act, Legislatures of States have not been
conferred the power to empower municipalities with the responsibility of:
• (a) Preparation of plans for economic development and social justice
• (b) Management of law and order
• (c) Implementation of schemes as may be entrusted to them
• (d) Levy, collection and appropriation of taxes, duties, tolls, etc
• Answer: B
• 36. Which one of the following is not correct?
• Part IX-A of the Constitution of India pertaining to the Municipalities provides
• (a) That grants-in-aid be made to the Municipalities from the Consolidated Fund of the State
• (b) For setting up a separate Finance Commission for the Municipalities
• (c) For setting up Committee for District Planning
• (d) For setting up Committee for Metropolitan Planning
• Answer: B
• 37. ‘A transitional area’, ‘a smaller urban area’ or ‘a larger urban area’ in the context of a
Nagar Pan_x0002_chayat, a Municipal Council or a Municipal Corporation, are specifed by
the Governor after considering which of the following:
• 1. Density of population
• 2. Percentage of employment in non-agricultural activities
• 3. Number of hospitals in the area
• Select the correct answer using the codes given below:
• (a) 1, 2 and 3 (b) 1 and 2, only
• (c) 2 and 3, only (d) 1 and 3, only
• Answer: B
• 38. Which of the following statements is not correct?
• (a) A Metropolitan area is specifed by the Governor through a public notifcation.
• (b) Metropolitan area means an area having a population of 8 lakhs or more.
• (c) Metropolitan area may be comprised in more than one district.
• (d) Metropolitan area may consist of more than two Municipalities or Panchayats or other
contiguous areas.
• Answer: B
• 39. Which one of the following statements with regard to Finance Commission in States is
not correct?
• (a) The 74th Amendment of the Constitution of India provides for the establishment of a
Finance Commission by a State to review the fnancial position of the municipalities.
• (b) The Chief Minister of the State decides the composition of the Finance Commission and
nominates the Chairman.
• (c) The Finance Commission is expected to recommend the division of resources between
the State and the municipalities within the State.
• (d) The Finance Commission is authorised to make recommendations with regard to grants-
in aid to the Panchayats from the Consolidated Fund of a State.
• Answer: B
• 40. Municipal Area means the territorial area of a Municipality as is notifed by the:
• (a) Governor (b) Municipal Commissioner
• (c) Municipal Council (d) Council of Ministers
• Answer: A
• 41. Which of the following units of urban local self-government does not have a
constitutional foun_x0002_dation?
• (a) Cantonment Boards (b) Municipal Councils
• (c) Municipal Corporations (d) Nagar Panchayats
• Answer: A
• 42. To which of the following, the 74th Constitutional Amendment has not paid attention?
• 1. Municipal personnel system
• 2. Constitution and composition of municipality
• 3. Relations between elected executive and bureaucracy
• 4. Disqualifcations for membership of municipality
• Select the correct answer using the codes given below:
• (a) 1 and 4 only (b) 1 and 3 only
• (c) 2, 3 and 4 (d) 1, 2 and 3
• Answer: B
• 43. The Metropolitan Planning Committee while preparing the draft plan has to give due
regard to:
• 1. Matters of common interest between Municipalities and Panchayats
• 2. Overall objectives and priorities set by the Union Government
• 3. Plans prepared by Panchayats in Metropolitan area
• 4. Contingent circumstances emerging out of natural calamities
• Select the correct answer using the codes given below:
• (a) 1, 2, 3 and 4 (b) 2 and 4
• (c) 1 and 3 (d) 1, 2 and 3
• Answer: C
• 44. Consider the following pairs:
• 1. Cantonment Board : Administered centrally by Defence Ministry
• 2. Notifed Area Committee : Administers newly developing towns
• 3. Municipal Council : Administers big cities with complex problems
• 4. Municipal Corporation : Headed by an elected Mayor
• Which of these pairs are correctly matched?
• (a) 1, 2, 3 and 4 (b) 1 and 4
• (c) 1, 2 and 4 (d) 2 and 3
• Answer: C