73rd and 74th CAA are the embodiment of grass-root democracy and democratic decentralization in India. They are inspired by Gandhiji’s concept of “Oceanic Circles of Power” and “Swaraj”.
Role of Local Bodies in Ensuring Good Governance
Citizen Participation in planning and decision-making through Gram Sabhas and Ward Committees. Eg- Kerala’s people plan campaign
Transparency- Eg- Social audits under MGNREGA enhance transparency in fund utilization.
Accountability- Elected representatives are directly answerable to citizens.
Effectiveness and Efficiency- Proximity to citizens allows timely service delivery in areas like sanitation, water supply, and waste management.
Equity and Inclusion through reservation for SCs, STs, OBCs, and women. Eg- Women’s Representation at 46.44%
Responsiveness during Disasters. Eg- COVID-19 management and disaster relief in Kerala.
Rule of Law- Local bodies function under constitutional and legal mandates of the 73rd and 74th Amendments, ensuring lawful governance.
Consensus-Oriented Governance- Gram Sabhas and District Planning Committees promote coordination and collective decision-making.
Sustainability- service delivery in waste recycling and water conservation. Eg- Hiware Bazar Model of watershed development.
Challenges
“PRIs exist as over-structured but underpowered organisations.” (2nd ARC)
No decentralisation of power, rather decentralisation of corruption – Mani Shankar Iyer Committee
Limited own-source revenue- Poor tax collection efficiency (>1% own tax).
Incomplete devolution- less than 20% of States have transferred all 29 subjects under 11th Schedule (MoPR, 2022). (overall Panchayat Devolution Index is only 43.89% (2021-22))
Weak Gram Sabhas- Low participation, elite domination, and token meetings.
Gender and social barriers leading to proxy control. (Sarpanch Pati)
Pros of Merging Rural and Urban Local Bodies
Integrated Regional Planning – Addresses rurban challenges and ensures seamless infrastructure and service delivery.
Uniform Standards of Governance – Streamlines policies, taxation, and land-use planning.
Efficient Resource Utilization – Shared funding and manpower reduce duplication.
Better Management of Peri-Urban Areas – Urban expansion can be better planned and regulated.
Cons of Merging Rural and Urban Local Bodies
Dilution of Constitutional Intent under 73rd and 74th Amendments.
Political Resistance – Power redistribution may face bureaucratic and political opposition.
Administrative Complexity due to different laws, tax systems, and governance mechanisms.
Urban areas may dominate resource allocation and decision-making.
Local bodies are the cornerstones of participatory democracy and good governance. A functional convergence, not structural merger, aligns better with India’s constitutional vision of decentralization.