Local Self-Government in India

Local Self-Government refers to the decentralized administration of local areas in which local authorities are elected to make decisions on civic and developmental matters. India has two main types of local governments:

Panchayati Raj Institutions (PRIs) – Rural areas
Urban Local Bodies (ULBs) – Urban areas

These institutions are constitutionally recognized by the 73rd and 74th Amendments (1992).

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1. Historical Background

Pre-Independence

Ancient India had village panchayats responsible for law and order and dispute resolution.
British era introduced modern local self-government through municipalities and panchayats, inspired by the Panchayati Raj system.

Mahatma Gandhi’s Vision

Advocated decentralized governance as the backbone of democracy.
PRIs should enable self-rule, participative governance, and accountability to villagers.

Post-Independence Milestones

Year	Event
1951	Community Development Program launched
1953	First Panchayati Raj elections in Rajasthan
1959	Rajasthan Panchayati Raj Act passed
1962	Ministry of Community Development and Cooperation established
1992	National Panchayati Raj Day; 73rd Amendment passed
1996	PESA Act: Tribal areas given greater autonomy
2000	National Gram Swaraj Abhiyan launched
2011	National Rural Livelihoods Mission launched

Important Committees
Balwant Rai Mehta Committee (1957) – Recommended three-tier PRI system and financial powers.
Ashok Mehta Committee (1977) – Strengthening powers and responsibilities.
G.V.K. Rao Committee (1985) – Greater autonomy and tax powers for PRIs.
L.M. Singhvi (1986), P.K. Thungon (1989) – Constitutional recognition for PRIs and ULBs.
Second Administrative Reforms Commission (2007) – Subsidiarity principle and clear delineation of functions.

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2. Structure of Local Self-Government

A. Panchayati Raj Institutions (PRIs) – Rural

Three-tier system (73rd Amendment, 1992):

Village Panchayat (Gram Panchayat) – Lowest tier, village-level administration.
Intermediate Panchayat (Block/Taluk level) – Group of villages; planning and development.
District Panchayat (Zilla Parishad) – District-level administration and coordination.

Key Features:

Elected representatives with reserved seats for SCs, STs, and women (at least 1/3).
State Finance Commission recommends funds allocation.
Functional areas include: agriculture, irrigation, education, health, rural infrastructure, and social welfare.

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B. Urban Local Bodies (ULBs) – Urban Areas

Three types (74th Amendment, 1992):

Municipal Corporation (Nagar Nigam) – Major cities.
Municipality (Nagar Palika / Nagar Parishad) – Smaller urban areas.
Municipal Councils for smaller towns.
Nagar Panchayats for areas in transition from rural to urban.
Notified Area Committee / Town Area Committee / Cantonment Board – Rapidly expanding towns or special areas; may be elected, nominated, or mixed.

Functions: Urban planning, water supply, sanitation, roads, street lighting, public health, education, and welfare services.

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3. Financial Strengthening of Local Bodies

15th Finance Commission (2021–26)

Grants of ₹4.36 lakh crore to local bodies (rural + urban).
Includes Panchayats in Scheduled Areas, unlike the 14th FC.
Criteria: 90% population weightage, 10% area weightage.
Condition: States must constitute and follow recommendations of State Finance Commission (SFC) to receive grants post-2024.

State Finance Commission (SFC)

Constituted every 5 years by the Governor.
Recommends tax devolution, grants, and sharing of resources between state and local governments.

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4. Key Features of PRIs and ULBs

Feature	PRIs	ULBs
Legal Basis	73rd Constitutional Amendment	74th Constitutional Amendment
Type	Rural	Urban
Structure	3-tier: Gram, Block, Zilla	Municipal Corporation, Municipality, NAC/TAC
Elected Seats	Yes; reservations for SC, ST, women	Yes; reservations for SC, ST, women
Functions	Agriculture, health, education, rural development	Urban planning, sanitation, public health, infrastructure
Finance	SFC recommendations, grants-in-aid	SFC recommendations, property tax, municipal taxes

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5. Key Principles

Decentralization: Decision-making at the local level.
Democratic Participation: Involvement of citizens in governance.
Accountability: PRIs/ULBs answerable to local electorate.
Subsidiarity: Functions performed at lowest effective level.

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6. Challenges

Limited financial resources and dependency on state grants.
Overlap of functions between state departments and local bodies.
Capacity constraints of elected representatives.
Political interference and corruption.
Urban-rural disparity in development funds and governance capacity.

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7.  Key Points

Constitutional Articles: 243–243O (73rd Amendment), 243P–243ZG (74th Amendment).
Committees: Balwant Rai Mehta, Ashok Mehta, G.V.K Rao, L.M. Singhvi, P.K. Thungon.
Schemes: National Rural Livelihoods Mission, Gram Swaraj Abhiyan.
Finance: State Finance Commission, 15th Finance Commission grants.
Reservations: At least 1/3 seats for women, SC/ST as per population.