The 73rd and 74th Constitutional Amendments established the framework for Panchayati Raj and urban local bodies, promoting inclusive development and addressing local issues effectively.
Role of local bodies in providing good governance at local level
- Decentralisation and Self-Governance: bringing governance closer to citizens and enhancing democratic participation in decision-making affecting daily lives. Eg- Gram Sabhas
- Rule of Law: Local bodies enforce regulations such as building codes, sanitation rules, and land use policies. Eg- municipalities taking action against illegal encroachments.
- Responsiveness: Local bodies respond quickly to local issues such as waste management. Eg- the Indore Municipal Corporation swiftly implemented waste segregation policies, earning Indore the title of the cleanest city in India.
- Consensus-Oriented: Eg- Village Development Plans (VDPs) involve consultations with local communities to align projects with their needs, promoting consensus.
- Equity and Inclusiveness: Programs like Pradhan Mantri Awas Yojana (PMAY), implemented by local bodies, aim to provide affordable housing to the economically weaker sections, ensuring social equity.
- Effectiveness and Efficiency: Eg- as per World Bank, decentralisation and local governance through PRIs reduced corruption and leakages in public welfare schemes by about 15-20%.
- Accountability: Eg- social audits of MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act).
Challenges
- Financial – Panchayats in India generate only 1% of their revenue through local taxes. The majority of their income, approximately 95%, comes from grants by the central and state governments.
- Parastatal Agencies: State-run bodies like urban development authorities and public corporations often take over key functions, limiting the autonomy of local bodies. Eg- Delhi Jal Board
- Improper Devolution of Functions: Many states have not fully devolved powers to local governments, leaving them with restricted control over important governance functions.
- Proxy Representation – Corporator pati/Mayor Pati syndrome/ Sarpanch Pati syndrome
- Lack of Staff: local bodies face a severe shortage of skilled personnel, hindering their ability to perform assigned functions. As of 2022, about 35% of municipal corporation posts remain unfilled, affecting service delivery and governance.
Pros And Cons Of Merging Rural Local Bodies With Urban Local Bodies
| Pros | Cons |
| Rural areas will benefit from improved infrastructure from urban areas like roads, water, education, etc., aligning them with urban development standards Integrated Development Strategy: Eg. transportation networks can be designed to seamlessly connect urban centers with surrounding rural areas, improving accessibility. Administrative Cost Reduction: By consolidating services, merging can lead to a decrease in administrative overhead and streamlining of operations. Unified development and governance: the merger will bring rural areas under governance frameworks of urban local bodies, enabling implementation of master plans, development control regulations and economic growth strategies, fostering better planning and sustainable development. Already ongoing policies and frameworks like District planning committee, Rurban mission have their essence in merger of rural and urban policy and developmental needs. | Increased taxation: rural areas fears enhanced taxation, as urban bodies levy higher charges than village adding financial burdens on residents. Strain on municipal resources: ULBs already struggling with limited funds and manpower resources, making it difficult to provide efficient and timely services to merged areas. Political resistance from both side: village leadership will be wary of losing their influence, while existing councilors in urban areas might resist diverting funds or staff at expense of their constituencies. Local Needs Overlook: The unique needs and priorities of rural communities may be overshadowed by urban concerns, leading to inadequate attention to rural development issues. Skewed Resource Distribution: There’s a risk that resources may still be unevenly distributed, favoring urban areas due to their larger populations and political influence, thereby perpetuating existing inequalities. Identity and Heritage Erosion: Rural communities may fear losing their unique identities and cultural heritage in a merged governance system, as urban priorities may overshadow traditional practices. |
Way forward
- Instead of directly merging rural bodies with urban ones, create independent municipal councils in peri-urban areas, improve infrastructure and governance, then merge with larger municipalities.
- Revitalize gram sabhas and ward committees through inclusive discussions and use of social media to facilitate member communication.
Drawing from Gandhian Swarajya, any merger must ensure local self-governance and empowerment, where both rural and urban needs are addressed without compromising the essence of decentralization.
