Even though the 73rd amendment to the Constitution has given legal backing to the Panchayati Raj system, the real empowerment and devolution of power through these grassroot-level governing bodies is yet to happen, if government?s own submission is to be taken seriously.
Blaming state governments for the tardy implementation of the panchayati raj system, the Centre has admitted that in many states, panchayats have not become effective instruments of economic development and social justice as devolution of functions, funds and functionaries have remained largely on paper.
The Centre proposes a separate funding window at the national level to fund development proposals by panchayats, in the same manner as is available to NGOs.
It has also been proposed that funds to panchayats from Central and state governments should be delivered directly with as few intermediate steps as is necessary. There should be uniform guidelines for funds flow applicable to all schemes across all ministries and all states, with time limits fixed for funds to reach the panchayats, a move that will give the local bodies the flexibility to avail funds based on their needs and avoid pilferages.
Funds to panchayats in Union Territories present special problems, as there is no separate funding window in the Central Budget to channelise funds to them for the implementation of centrally sponsored schemes. It is also proposed that arrangements may be made in the Central Budget to channelise funds to panchayats in Union Territories directly, in accordance with the devolution of functions to them.
But, the Centre is also proposing to track the fund utilisation by panchayats by enabling the proposed Central Scheme and Programme Monitoring System should to track both release of funds and submission of progress reports and utilisation certificates by each panchayat.
Another proposed move to allow panchayats to have access to bank credit to take up development projects such as universal housing for the poor, support to SHGs and their federations and construction of remunerative infrastructure assets. The Centre is likely to frame a policy framework in this regard.
The 11th Five Year Plan, which has identified inclusive growth as the overarching objective has said proposed to substantially empower and use panchayati raj institutions as the primary means of delivery of essential services that are critical to inclusive growth.
The Plan asserts that it is absolutely critical for the inclusiveness of our growth process that these large numbers of elected representatives in these institutions are fully involved in planning, implementing and supervising the delivery of essential public services.
Various parallel societies, agencies, committees and missions have been created by Central and state level line ministries and departments to implement specific schemes that fall in the panchayat domain. In order that panchayats function as institutions of selfgovernment, their domain has to be widened. Revenue, regulation and development functions must be devolved upon panchayats. devolution of judicial powers and police may also be considered.
The Centre has proposed that to establish organic linkages between panchayats at all levels and District Planning Committees (DPCs), elected representatives of village and intermediate tiers should also be given representation in the DPCs, in addition to the representation given to members of the zilla panchayats.
Article 243ZD of the Constitution provides that every state shall constitute at the district level DPCs to consolidate the plans prepared by the panchayats and the municipalities in the district and to prepare a draft development plan for the district as a whole. Of the 24 states covered by the Provisions of Parts IX and IXA of the Constitution relating to panchayats and municipalities respectively, 18 states have constituted DPCs in accordance with Article 243ZD.
The Centre is pushing the remaining states to do the same. The Centre has proposed to give incentives to support states to devolve more functions, functionaries and finances to the panchayats, encourage and facilitate states to restructure the system of selfgovernment at the panchayat level. At the same time, the Centre is also planning to create a national network of panchayat elected representatives.