The Local Government System In Country Profile 2019 India

THE LOCAL GOVERNMENT SYSTEM IN indiaTo cite two examples the Atal Mission forRejuvenation and Urban Transformation(AMRUT) is linked to promotion ofreforms in urban planning, execution andgovernance for better service delivery;while the Pradhan Mantri Awas Yojana isan initiative to ensure affordable housingfor all.3. STRUCTURE OF LOCAL GOVERNMENT3.1 Local government within the stateIn 1989 the national government tooksteps to enhance the role of rural localgovernments through direct funding.The aim was to create units responsiblefor economic development at the locallevel, and to create jobs directly. Localgovernment is divided between ruralauthorities (panchayats) and urbanauthorities (municipalities), and as ofmid-2019 there were a total of 267,283local government bodies across thecountry (see table 19.1a).3.2 Ministerial oversightWhilst local development is a statecompetence, the central governmenthas the important role to guide, motivatesupport, engage and handhold thestates to promote local governmentsand development. The MoHUA and theMinistry of Panchayati Raj19.3c (MoPR),responsible for urban and rural localgovernment respectively, are guidedby constitutional provisions and areresponsible for developing nationwidepolicy for each sector. In each statethere are ministers responsible for bothurban and rural local government whomust oversee the administration ofthe relevant state-level legislation. Inextraordinary circumstances, the ministeror state government may dissolve localgovernment bodies, and govern themdirectly for up to six months. The ministriesare involved in the preparation of modelacts, laws, by-laws, manuals, guidelines,checklists and capacity-buildingprogrammes for a range of functions.3.3 Council typesThe local government system consists ofboth urban and rural councils.3.3.1 Urban councils: The 74thConstitutional Amendment Act providesfor three types of municipalities dependingon size and area, namely: nagar panchayatfor an area in transition from rural to urban;municipal council for smaller urban areas;and municipal corporation for larger urbanareas. Urban local bodies include municipalcorporations for cities, municipalities forlarger towns and town panchayats forsmaller towns.88In line with their respective state-levelmunicipal acts, these 4,449 urbanlocal bodies have a range of standingcommittees which include finance,education, water supply and sanitation.The standing committees are deliberativebodies only and decision-making powersremain with the full council. Councilshave the discretion to establish a widerange of other committees. Powers ofthe mayors and executive committeesare determined by the respective statemunicipal acts. Each municipal bodyis assisted by a commissioner or chiefexecutive officer, who coordinates theactivities of all municipal employees.3.3.2 Panchayati system in rural areas:The 73th Constitutional AmendmentAct provides for three types of ruralcouncil – known as panchayati rajinstitutions (PRIs). There are three types:653 are zila parishad at the district level,6,635 are panchayat samaiti at the blocklevel, and 255,546 are gram panchayatat the village level. In 23 states there arethree tiers in the panchayati system, inGoa there are two tiers, and in Jammuand Kashmir, Manipur, Meghalaya,Mizoram and Nagaland there is a singletier. States with populations of less thantwo million are not required to adoptthe three-tiered system. The tiers are notstrictly hierarchically organised; ratherthere is a division of duties between them.There is a limited coordination role forhigher levels of the panchayati authorities(see annex 19a). State law establisheswhich committees is mandatory; theseconsequently may vary from state to state;however, all have executive committees.The zila parishads are required to havegeneral, finance and audit, planning, socialjustice, education, health, agricultureand industrial committees. The grampanchayats have production, socialjustice and amenities committees. Moststates provide the panchayats with littlediscretion to establish other committees.4. ELECTIONS4.1 Recent local electionsThese vary from state to state.19.4a4.2 Voting systemAll councillors are directly elected by thefirst-past-the-post system. In accordancewith the 74th Constitutional AmendmentAct, one-third of all seats are reserved forwomen, and this is being extended to 50%in some states. There are further reservedplaces for scheduled castes and scheduledtribes, determined by their proportionalrepresentation within the local population.The places reserved for scheduled castesand tribes must also adhere to the onethird allocation to women.COUNTRY PROFILE 2019Election processes are defined in statemunicipal law. These structures areconsultative and also play a role inmonitoring the delivery of services.4.3 Elected representativesWhilst specifics vary from state tostate, broadly, in the urban sector, allmunicipalities with a population over300,000 are required to establish wardcommittees chaired by the local wardcouncillor. Municipal corporations, asstipulated in the state municipal acts,work within a committee system inwhich councillors report to council withrecommendations. Mayors are electeddirectly or indirectly, depending on thestate. Councillors are elected for a five-yearterm of office; mayors for either one or fiveyears. The position of mayor/chairpersonmay also be assigned through reservationto scheduled tribes and castes, womenand minorities on a rotating basis.4.4 Women’s representationIn 2017, 44.8% of councillors wereestimated to be women, up from 37.1% in2013. By law a minimum of one-third ofseats across all types of local governmentbodies must be reserved for women, andin many states this has now been raised to50%. Six months prior to local elections,one-third/half of wards are earmarkedfor women representatives, on a rotationbasis. See tables 19.1c and 19.1d.5. SYSTEMS FORCOMMUNITY INVOLVEMENT5.1 Legal requirementThe 73rd and 74th amendments tothe constitution have led to widerparticipation and citizen awareness atthe local level. Citizens’ charters are alsoused to streamline participation.5.2 ImplementationCommunity structures are in existenceat grassroots level. For example, theywere created under local employmentschemes, as part of the National RuralLivelihoods Mission, in the form ofwomen’s self-help groups. Residentwelfare associations are also playingan important role in the managementof basic services in their local areas,especially within urban bodies.5.3 ICT use in citizen engagementNo information available.www.clgf.org.uk/india

THE LOCAL GOVERNMENT SYSTEM IN indiaCOUNTRY PROFILE 2019Table 19.1b Key legislation by state and union territoryState/ Union TerritoryKey legislationSTATESAndhra PradeshAssamKey legislationOdishaPanchayati Act 1994Panchayat Raj Act 1994Municipalities Act 1965Arunachal PradeshStateMunicipal Corporation Act 2003PunjabPanchayati Act 1994Central Laws Act 1993Local Government Act 2013Balipara/Tirap/Sadiya Frontier TractJhum Land Regulation 1947Municipal Corporation Act 1976Panchayati Act 1994RajasthanPanchayati Act 1994Municipal Act 1956BiharPanchayati Act 2006Municipalities Act 2009SikkimPanchayati Act 1993Urban Planning & Development Act2012Sikkim Municipalities (Amendment) Act 1993ChhattisgarhPanchayati Act 1993GoaPanchayati Act 1994Tiruppur Municipal Act 2008Panaji City Corporation Act 2002Urban Local Bodies Act 1998GujaratPanchayati Act 1993Tamil NaduPanchayati Act 1994TelanganaSee Andhra Pradesh legislationTripuraPanchayati Act 1993Municipalities Act 1963HaryanaPanchayati Act 1994Municipal Corporation Act 1994Himachal PradeshJammu and KashmirPanchayati Act 1994Uttar PradeshDistrict Planning Committee Act 1999Panchayati Act 1989Development Council Act 2006JharkhandPanchayati Act 2001KarnatakaPanchayati Act 1993UttarakhandPanchayat Laws Act 2007District Planning Committee Act 2007West BengalPanchayati Act 1973Municipalities Act 1976Municipal Act 1993Panchayati Act 1994Kolkata Municipal Corporation Act 1980UNION TERRITORIESDecentralisation of Powers Act 2000Madhya PradeshPanchayati Act 1947Municipalities Act 1994Municipal Corporation Act 2000KeralaMunicipal Act 1994Panchayati Act 1993Andaman and Nicobar IslandsPanchayats Regulation 1994Swayatta Sahakarita Adhiniyam Act1999ChandigarhCovered by Punjab actsMaharashtraPanchayati Act 1993Dadra and Nagar HaveliPanchayati Regulation Act 2012ManipurPanchayati Act 1994Dadra and Nagar Haveli Panchayat Rules2014MeghalayaMunicipal Act 1973Town and Country Planning Act 1984MizoramMunicipalities Act 2007Daman and DiuPanchayats Regulation 2012Urban and Regional Development Act1990DelhiMunicipal Council Act 1994Village and Area Councils Act 1978LakshadweepPanchayats Regulation 1994Municipal Act 2001PuducherryVillage and Commune Panchayati Act1973NagalandSource: compiled by CLGFwww.clgf.org.uk/india89

THE LOCAL GOVERNMENT SYSTEM IN indiaCOUNTRY PROFILE 2019Table 19.1c Women councillors by state 2017State/union territoryUrbanlocal bodiestotalcouncillorsPanchayati rajInstitutions ncillros%Andaman and NicobarIslandsna10na85830235.2na312naAndhra al garhna1,128na170,28593,28754.8na94,415naDadra and Nagar Havelina5na1364734.6na52naDaman and 1na30,175naHimachal Pradeshnanana28,72314,39850.1na14,398naJammu and dhya 9naSikkimnana1,09654850.0na548naTamil Nadu ,73333.0na273,189naUttar Pradeshna4,895na64,60635,95755.7na40,852naWest 771,455,28048.8na1,487,616naTOTAL(29 7) 36na33,863na834nanana not available Source: Ministry of Statistics (2016): Women & Men in India – 2016, Participation in Decision-making Implementation19.4b90www.clgf.org.uk/india

THE LOCAL GOVERNMENT SYSTEM IN indiaCOUNTRY PROFILE 2019Table 19.1d Women councillors and mayors 2013-2018Election2013201620172018Total councillors#%#%#%#%Total female councillorsna37.1nanana44.8nanaTotal Male councillorsna62.9nanananananaTotal rural councillorsna100.0na100.0na100.0na100.0Rural councillors#%#%#%#%Female rural e rural councillorsnana1,575,56262.91,646,29751.4nanaTotal rural 0.0Urban councillors#%#%#%#%Female urban councillorsnananana33,863nananaMale urban councillorsnanananananananaTotal urban councillorsna100.0na100.0na100.0na100.0Source: MoHUA and MoPR communication with CLGF6. ORGANISED LOCAL GOVERNMENT6.1 National local government associationThere is currently no active nationallocal government association, thoughpreviously the All-India Council ofMayors represented the municipalcorporations, and Nagar Palik PramukhSangthen(central organistaion ofmunicipalities) represented the otherurban municipalities.Social audit is also being applied byseveral local governments to promotecommunity awareness and transparency.6.2 Other associations of local governmentThere are some state-level organisationsof elected representatives and electedwomen’s representatives; and somecity managers’ associations. There arehowever other institutions active in localgovernment, such as the Associationof Municipalities and DevelopmentAuthorities (AMDA) and the Institute ofTown Planners of India (ITPI) which haslocal chapters.9.1 Locally raised revenueMost urban infrastructure projectsundertaken by municipal localgovernments depend predominantlyon funds from state governments andother agencies. However, in order to raiseresources from the markets/financialinstitutions for investment in infrastructure,the central government has allowed theissue of tax-free municipal bonds and hasset up a national fund, the Pooled FinanceDevelopment Fund. This fund providescredit enhancement grants, throughpooled financing bonds issued on behalf ofidentified urban local governments, whichenable them to access market borrowingfor investment in urban infrastructureprojects. Nevertheless, estimates fromthe XIII Central Finance Commission (‘XIIICFC’) report indicate that less than half ofmunicipal expenditure is financed throughown sources. Councils are empowered tolevy house and land taxes and to borrow alimited amount of money. Other sourcesof revenue include special projects andfundraising through events.7. INTERGOVERNMENTAL RELATIONSThe central government ministries are inconstant dialogue with relevant state-levelministries and with local governmentrepresentatives. Local governmentrepresentatives also seek meetings withofficials and ministers in the relevantministries on an ad-hoc basis.8. MONITORING SYSTEMSLocal governments are subject to audit,which is carried out by their stategovernment. Monitoring may include:auditing processes; ministerial oversight(eg of budgets); scrutiny by independentregulatory bodies; council committees,Whose members may includeopposition party representatives; andparliamentary review bodies. Third-partyaudit/assessment has been introducedon urban local projects.www.clgf.org.uk/india9. FINANCE, STAFFING AND RESOURCESWhilst data on locally raised revenuewas not availble, local governmenttransfers was budgted to be 3.3% of totalgovernment expenditure in 2020/21, upfrom 3.1% in 2019/20. See table 19.2b.9.2 TransfersThe government’s XIV Central FinanceCommission (‘XIV CFC’) allocated a sumof INR2.87 lakh crore (2.87 trillion) to begiven as grants to gram panchayat andmunicipalities.This is a increase of 228% over the previousfive-year period, and equates to an averageassistance of over INR80 lakh (8 million)per gram panchayat and over INR210mcrore per urban local body. The XIV CFCrecommended grants in two parts – abasic grant, and a performance grantfor duly constituted gram panchayatsand municipalities. In the case of grampanchayats, 90% of the grant is the basicgrant and 10% is the performance grant.In the case of municipalities, the divisionbetween basic and performance grantis 80% to 20%. The government of Indiasubsequently constituted the XV CentralFinance Commission in 2017 to suggestformulae for the sharing of central taxesand fees over the period 2020-25. UnderArticle 243 of the 74th ConstitutionalAmendment Act, state governments havea similar duty to consult their state financecommission every five years to review thefinancial position of their panchayats andurban local governments and to makerecommendations for the subsequentfive-year period.9.3 Local authority staffLocal government staff are not recruitedby a central body. In some states thereis a commission for recruitment; inothers staff are recruited directly by thelocal authorities. The body responsiblefor recruitment is also responsible fordisciplinary and dismissal matters.A number of officers are required by lawin the different types of local councils,including a municipal commissioner in themunicipal corporations and an executiveofficer, health officer and sanitary inspectorin the municipalities. The head of the paidservice is normally referred to as the chiefexecutive officer. The staffing structure offirst-tier councils differs from state to state,but generally the municipal commissioneris the head of the administrative service atmunicipal corporations, assisted by deputymunicipal commissioners and otherofficers. The health officer is responsible forarea health services. The staffing structuresof second-tier councils (municipalities)also differ from state to state, but generallythe executive officer is the head of theadministrative service, assisted by deputyexecutive officers and other officers.The health officer is responsible forhealth services in their municipal area.Maharashtra and West Bengal have statelevel cadres. There is an increasing focus ondeveloping a municipal cadre system toenable the systematic deployment of staffat different levels of seniority. For example,the government of Madhya Pradeshhas developed five different staff grades,which streamlines the appointment ofthe requisite numbers of staff to carry outinterdisciplinary tasks related to urbanmanagement. A similar approach is underconsideration in several other states.91

THE LOCAL GOVERNMENT SYSTEM IN indiaCOUNTRY PROFILE 2019Table 19.2b Local body transfers as a percentage of total government expenditure 2014–20202014-15ActualINR croreTotal government expenditureTotal local government transfersLocal government transfers as a percentageof total government expenditure2015-16ActualINR crore2016-17ActualINR crore2017-18actualINR crore2018-19budgetINR crore2019-20budgetINR crore2020-21budgetINR ,35299,9251.4%1.7%2.5%2.6%2.6%3.1%3.3%Source: Calculated by CLGF from the XIV CFC report Annex 6.1, 19.9a Union Budget 2019-2017.9b and 2015-18 budgets19.9cFollowing the governance principleof reduction in fiscal deficit, the citygovernments of India are also resortingto PPPs (Public Private Partnerships)and outsourcing, leading to substantialreduction in their revenue expenditureand savings along with defacto resourcemobilisation. The cities of Ahmedabad,Hyderabad, Bengaluru and Pune haverevenue surplus running into millionsof rupees. For example AhmedabadMunicipal Corporation has two SpecialPurpose Vehicles (SPVs) to deliver itsSabarmati Riverfront Development andBus Rapid Transport System (BRTS)projects, which are significantly reducinbgstaffing costs.10. DISTRIBUTION OF SERVICEDELIVERY RESPONSIBILITY10.1 Overview of local governmentservice delivery responsibilityService delivery varies from state to state,but Annex 19a gives an overview. Localgovernment responsibilities typicallyinclude a range of core services andinfrastructure provision, including: water,sanitation, solid waste management,roads and public conveniences,poverty alleviation, slum improvementand economic development. Localgovernments are principally responsiblefor delivering services to a cross-sectionof citizens with the involvement ofa number of partner organisations.including vehicles SPVs. The Governmentof India under its 100 Smart Cities Missionhas created SPVs to expedite projectplanning and implementation whilstkeeping local governments in the centreas key decision-makers. Various stateagencies are responsible for povertyalleviation, but their lack of accountabilityto local government reduces theireffectiveness in addressing local priorities.However, these functions are graduallybeing transferred to local governments.9210.2 ICT use in service deliveryThe Smart Cities Mission19.10a is a nationalprogramme investing in up to 100 citiesacross the country to develop bestpractice in ‘smart’ urban infrastructure.The Smart Cities programme isindependently run with a dedicatedchief executive officer working alongsideeach city mayor and commissioner.10.3 The role of local governmentin achieving the UN SustainableDevelopment Goals (SDGs)The Government of India has launchedthe National Institution for TransformingIndia (NITI), which completed itsmapping process of the 17 SDGsagainst ministerial responsibility inAugust 2017, including assigningnumerous responsibilities to theUrban Development and PanchayatRaj ministries.19.10b India Habitat IIINational Report of MoHUA identifiesspecific goals and targets to promotesustainable development in line with theUN SDGs. The MoHUA has developeda set of liveability standards in citieswith the goal of generating a liveabilityindex against which cities can bebenchmarked. The relevant documentprescribes 79 indicators which have beenmapped against their respective SDGs.REFERENCES AND USEFUL WEBSITES19.1a Government of Indiawww.india.gov.in19.1b Women in national parliaments.Inter-Parliamentary Unionwww.ipu.org/wmn-e/classif.htm19.2 Constitution of .2b Ministry of Housing and UrbanAffairs www.moud.gov.in19.3a Population 2011 Censushttp://censusindia.gov.in19.3c Ministry of Panchayati Rajwww.panchayat.gov.in19.3d Consolidated list of panchayatand urban local anchayat.do19.4a Election Commission of Indiahttp://eci.nic.in19.4b Participation in iles/reports and publication/statistical publication/socialstatistics/WM16Chapter5.pdf19.5 No reference for this section19.6 No reference for this section19.7 No reference for this section19.8 No reference for this section19.9a XIV Central Finance Commissionreport https://fincomindia.nic.in19.9b Union Budget c Union Budgets 2014-18www.indiabudget.gov.in/previous union budget.php19.10a Smart Cities Missionhttp://smartcities.gov.in19.10b India’s Commitment to the 19.11a World Population Prospects es/WPP2019DataBooklet.pdf19.11b UN statistics surface s/dyb/dyb2006/Table03.pdf19.11c Commonwealth LocalGovernment knowledge .11

urban and local government are governed by state-level legislation, which determines local tax-raising powers. In 2017 44.8% of councillors were women and in 2020/2021 transfers to local government were 3.3% of total government expenditure. 1. NATIONAL GOVERNMENT India is a federal republic with a bicameral parliament comprising a lower house,