Q.13  The strength and sustenance of local institutions in India has shifted from their formative phase of ‘functions, functionaries and funds’ to the contemporary stage of’ functionality’. Highlight the critical challenges faced by local institutions in terms of their functionality in recent times.

Model Answer:

Introduction

India's local institutions, particularly the Panchayati Raj Institutions (PRIs) and Urban Local Bodies (ULBs), have undergone a significant transformation since their inception. Initially designed around the triad of 'functions, functionaries, and funds', these institutions have now entered a more complex phase where their effectiveness and 'functionality' have become paramount. 

Body

Critical challenges faced by local institutions in terms of their functionality - 

• Financial Constraints: Despite constitutional mandates, many local bodies face severe financial crunch. some text
  • As per the 15th Finance Commission report, the own source revenue of municipalities accounts for only about 0.15% of GDP, significantly lower than many developing countries. This financial weakness impedes their ability to deliver services effectively.
• Capacity Building: some text
  • A 2019 study by the Ministry of Panchayati Raj revealed that only 30% of elected representatives in PRIs had received any form of training. This lack of capacity affects decision-making and implementation of schemes.
• Limited Devolution of Powers: Although the 73rd and 74th Constitutional Amendments provided for devolution of 29 subjects to PRIs and 18 to ULBs, in practice, many states have not fully transferred these functions. some text
  • For instance, a 2019 Accountability Initiative report showed that only 57% of the mandated subjects had been devolved to PRIs across states.
• Political Interference: Local bodies often face undue interference from state-level politicians, undermining their autonomy. some text
  • The phenomenon of 'Sarpanch Pati' (where male family members unofficially run affairs in place of elected women representatives) is a case in point, affecting about 85% of women-led panchayats, according to a 2020 study by the Tata Institute of Social Sciences.
• Inadequate Planning: Despite initiatives like the GPDP (Gram Panchayat Development Plan), many local bodies struggle with effective planning. some text
  • The Economic Survey 2020-21 noted that only 31% of gram panchayats had prepared their GPDPs as per guidelines.
• Digital Divide: While e-governance initiatives have been introduced, their implementation remains patchy. some text
  • The National e-Governance Plan aimed to computerize all panchayats, but as of 2021, only about 60% of gram panchayats had broadband connectivity, limiting their digital functionality.
• Accountability Mechanisms: Social audits and citizen engagement, crucial for accountability, remain weak. Tsome text
  • The CAG report of 2021 highlighted that only 11 states had established independent social audit units for MGNREGA, despite it being mandatory.
• Environmental Challenges: Local bodies are at the forefront of climate change impacts but often lack the capacity to address these. some text
  • The National Disaster Management Authority reported in 2019 that only 30% of urban local bodies had city disaster management plans.

Solutions 

• Comprehensive Capacity Building: Develop a national capacity building framework for local governance, integrating digital literacy, financial management, and participatory planning. The NITI Aayog's Aspirational Districts Programme could be a model for this.
• Enhancing Citizen Participation: Institutionalize mechanisms like participatory budgeting and social audits. The success of Kerala's People's Plan Campaign could be studied and adapted for other states.
• Promote regional cooperation: Encourage collaboration between neighboring local bodies to address common challenges and share resources more effectively.
• Implement performance-based funding: Link central and state grants to performance indicators to incentivize better governance.
• Strengthen local revenue generation: Empower local bodies to levy and collect taxes more effectively, and explore innovative financing mechanisms like municipal bonds.

Conclusion

Local governance in India stands at a crossroads where the effectiveness of local institutions hinges not just on the devolution of powers and resources but on the robust functioning of these entities. The real test lies in overcoming entrenched inefficiencies, political meddling, and resource constraints to build resilient local institutions that can truly cater to the needs of the community and drive sustainable development.

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