Lok Sabha Question No. 4718 (UNSTARRED), answered on 2016-12-15
Subject: Impact of 73rd and 74th Amendment Acts
Ministry: PANCHAYATI RAJ
Asked by: FAIZAL P.P. MOHAMMED, KANWAR SINGH TANWAR

## GOVERNMENT OF INDIA

## MINISTRY OF PANCHAYATI RAJ LOK SABHA UNSTARRED QUESTION NO. 4718 TO BE ANSWERED ON 15.12.2016

## IMPACT OF 73 RD  AND 74 TH  AMENDMENT ACTS

## 4718. MOHAMMED FAIZAL & SHRI KANWAR SINGH TANWAR:

Will the Minister of PANCHAYATI RAJ be pleased to state:

- a) whether the aims and objectives of 73 rd and 74 th amendments to the Constitution have been achieved, if so, the details thereof;
- b) whether the Government has conducted any study in this regard and if so, the details thereof;
- c) the extent to which the Panchayati Raj System has been strengthened over the years;
- d) if so, the details thereof and the time by which the objectives of these two Acts would be fully realized;
- e) whether the issues of changes in Panchayati Raj System have not been addressed and adequate funds have not been provided to the Panchayati Raj Institutions by Central Government, his Ministry and Central and State Finance Commissions; and
- f) if so, the steps taken by the Government to strengthen the Panchayati Raj System?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF PANCHAYATI RAJ (SHRI PARSHOTTAM RUPALA)

(a) : 73rd and 74th Amendments  to  the  Constitution have been enacted giving Constitutional status to the local self governments and providing an institutionalized platform for inclusive economic development and social justice. After the 73 rd and 74 th Constitutional Amendments were enacted, regular elections to local bodies and representation of Scheduled Castes (SCs), Scheduled Tribes (STs) and women within them have become mandatory. As per  Articles  243G  and  243W  of  the  Constitution,  States  are  to  endow  Panchayats  and Municipalities,  respectively  with  such  powers  and  authority  as  may  be  necessary  to  enable them to function and to plan and implement schemes for economic development and social justice  including  those  in  relation  to  matters  listed  in  the  Eleventh  and  Twelfth  Schedules, respectively. 'Panchayats' and 'Municipalities' being 'Local Governments', is a State subject and  States  Legislatures  pass  legislations  suitable  to  their  context.  Mandatory  provisions incorporated by  the 73 rd Amendment which include three tiers of Panchayats, direct election to  seats  at  all  three  tiers  of  Panchayats  and  indirect  elections  to  offices  of  chairpersons  of Block and District Panchayats, reservations in seats and offices for the SCs, STs and women, rotation of reserved seats and offices of chairpersons, setting up of State Election Commissions and holding elections to Panchayats every five years, have been implemented by  all  the  States  except  delay  in  holding  of  timely  elections  in  the  Union  Territory  of Puducherry and delay in constitution of State Finance Commissions in some States.

Under  the  74th  Constitutional  Amendment  except  constitution  of  Metropolitan  Planning Committee  for  every  Metropolitan  Area  in  some  States,  all  the  mandatory  provisions  like constitution of Municipalities, direct elections to territorial constituencies in a Municipality, constitution of Ward Committees, reservation of seats and offices of Municipalities for SCs, STs and women, holding of elections every five years by the State Election Commission and constitution of District Planning Committees have been implemented by the States.

(b):  The  implementation  of  the  provisions  introduced  by  the  73 rd and  74 th Constitution Amendments  is  reviewed  by  the  Government  from  time  to  time  through  meetings  and discussions with the States. The annual Devolution Index Report and the State of Panchayati Raj Reports commissioned by the Ministry of Panchayati Raj (MoPR) assesses the policy and legislative framework and outcomes of the State in respect of Panchayati Raj. The Ministry of Urban  Development  had  undertaken  a  study on 'Impact of the 74th Constitutional Amendment on the Working of Urban Local Bodies' during 2005.

(c) &  (d):  The  Constitution  of India recognizes  Panchayats  as  'Institutions of selfgovernment'. 'Panchayats' being 'Local Bodies' is a State subject mandated under Part IX and List II (State List) of Seventh Schedule (Article 246) of the Constitution. Article 243G allows discretion to State Legislatures to endow to the Panchayats with powers and authority to enable them to function as institutions of local self-governance. The strengthening of PRIs is mainly dependent on the extent of powers (Functions, Funds and Functionaries) devolved by State to PRIs and  capacity building of PRI functionaries that differ from state to state.

(e)  &  (f):  Under  the  Fourteenth  Finance Commission (FFC) award for the period 2015-20, grants  to  the  tune  of  Rs.  2,00,292.20  crore    are  being  devolved  to  Gram  Panchayats constituted  under  Part  IX  of  the  Constitution  and  the  State  of  Jammu  and  Kashmir  for delivering basic services. Allocation and release of grants for the years 2013-14 to 2015-16 and  the  current  year  under  Central  Finance  Commissions  awards  are  given  at Annexe-I . Under  the  scheme  of  Rashtriya  Gram  Swaraj  Abhiyan  (RGSA),  the  MoPR  has  provided financial assistance to the States for strengthening of Panchayati Raj across the country. The details  of  funds  sanctioned,  released  and  expenditure  incurred  during  last  three  years  and current  year  are  given  in Annexe-II .  The  release  of  funds  under  the  schemes  during  the respective years has led to actualization of different activities necessary for strengthening of Panchayati Raj Institutions (PRIs) including building their capacities. The details of activities sanctioned under the schemes are given in Annexe-III .

MoPR has also supported decentralized planning through the Backward Regions Grant Fund (BRGF) and assisting States in developing Gram Panchayat Development Plan (GPDP). The provisions introduced through 73 rd Constitution Amendment along with funds being devolved to Panchayats through the Union Finance Commission, other grants and own source revenues have helped in improving the life of marginalized people and strengthening of PRIs.

*****

Annexe-I

## Allocation and Release of Local Bodies Grants for PRIs under Finance Commission Award for the years 2013-14 to 2016-17

(Rs. in crore)

| Sl. No.   | State             | 2013-14           | 2013-14       | 2014-15           | 2014-15       | 2015-16           | 2015-16        | 2016-17           | 2016-17       |
|-----------|-------------------|-------------------|---------------|-------------------|---------------|-------------------|----------------|-------------------|---------------|
| Sl. No.   | State             | Annual Allocation | Total Release | Annual Allocation | Total Release | Annual Allocation | T otal Release | Annual Allocation | Total Release |
| 1         | Andhra Pradesh    | 1357.07           | 1585.56       | 828.11            | 1744.40       | 934.34            | 928.41         | 1463.45           | 642.77        |
| 2         | Arunachal Pradesh | 70.52             | 21.24         | 77.02             | 36.33         | 88.52             | 88.52          | 138.66            | 0             |
| 3         | Assam             | 420.66            | 304.13        | 458.07            | 352.76        | 584.8             | 292.4          | 915.98            | 0             |
| 4         | Bihar             | 1275.19           | 1528.59       | 1392.65           | 1254.70       | 2269.18           | 2269.18        | 3554.23           | 0             |
| 5         | Chhattisgarh      | 472.21            | 574.00        | 511.83            | 393.28        | 566.18            | 566.18         | 886.82            | 391.99        |
| 6         | Goa               | 23.29             | 1.66          | 25.43             |               | 14.44             | 7.22           | 22.62             | 0             |
| 7         | Gujarat           | 629.36            | 591.13        | 684.68            | 527.04        | 932.25            | 932.25         | 1460.18           | 645.43        |
| 8         | Haryana           | 279.60            | 325.35        | 305.41            | 238.36        | 419.28            | 419.28         | 656.72            | 290.29        |
| 9         | Himachal Pradesh  | 143.86            | 177.24        | 157.06            | 151.78        | 195.39            | 195.39         | 306.05            | 270.56        |
| 10        | J&K               | 236.41            | 157.81        | 258.19            | 199.11        | 373.96            | 367.72         | 585.73            | 0             |
| 11        | Jharkhand         | 460.32            | 443.00        | 496.27            | 380.36        | 652.83            | 652.83         | 1022.53           | 451.98        |
| 12        | Karnataka         | 1159.42           | 1553.77       | 1266.22           | 976.48        | 1002.85           | 972.36         | 1570.77           | 1368.2        |
| 13        | Kerala            | 501.87            | 708.36        | 548.10            | 527.44        | 433.76            | 433.76         | 679.4             | 0             |
| 14        | M.P               | 1111.96           | 1285.46       | 1209.51           | 757.38        | 1463.61           | 1463.61        | 2292.46           | 1013.31       |
| 15        | Maharashtra       | 1431.15           | 1092.32       | 1561.52           | 1787.82       | 1623.32           | 1623.32        | 2542.61           | 1123.88       |
| 16        | Manipur           | 59.93             | 32.84         | 65.12             | 129.98        | 22.25             | 22.25          | 34.84             | 15.4          |
| 17        | Meghalaya         | 89.70             | 28.78         | 97.12             | 20.73         | 0                 | 0              | 0                 | 0             |
| 18        | Mizoram           | 55.49             | 32.29         | 60.27             | 14.27         | 0                 | 0              | 0                 | 0             |

| 19   | Nagaland    | 86.51    | 7.53     |    93.74 |    17.97 |        0 |        0 |        0 |        0 |
|------|-------------|----------|----------|----------|----------|----------|----------|----------|----------|
| 20   | Odisha      | 710.07   | 476.58   |   771.5  |   454.73 |   955.52 |   955.52 |  1496.64 |  1323.09 |
| 21   | Punjab      | 289.63   | 301.99   |   316.31 |   416.04 |   441.7  |   441.7  |   691.84 |     0    |
| 22   | Rajasthan   | 1020.92  | 1188.78  |  1114.3  |   872.96 |  1471.95 |  1471.95 |  2305.52 |  2038.17 |
| 23   | Sikkim      | 47.46    | 30.66    |    51.83 |    38.36 |    16.03 |    16.03 |    25.11 |    11.1  |
| 24   | Tamil Nadu  | 793.72   | 529.68   |   866.84 |   668.48 |   947.65 |   947.65 |  1484.31 |   656.1  |
| 25   | Telangana   |          |          |   652.88 |   895.16 |   580.34 |   580.34 |   908.99 |   401.79 |
| 26   | Tripura     | 80.20    | 51.45    |    87.15 |    66.1  |    36.24 |    36.24 |    56.76 |    25.09 |
| 27   | U. P        | 2519.32  | 3821.02  |  2751.4  |  2121.81 |  3862.6  |  3852.6  |  6050.02 |  2667.29 |
| 28   | Uttarakhand | 152.13   | 140.74   |   166.15 |    98.81 |   203.26 |   203.26 |   318.37 |   281.45 |
| 29   | W. Bengal   | 1069.92  | 652.33   |  1168.18 |  1068.32 |  1532.21 |   735.43 |  2399.91 |     0    |
|      | Total       | 16547.89 | 17644.29 | 18042.9  | 16211    | 21624.5  | 20475.4  | 33870.5  | 13617.9  |

# For FY 2013-14 and 2014-15, Releases reflect  the status of  release of grants for the years including  allocation for the previous years but drawn during the subsequent  year.

## Annexe-II

Details of funds sanctioned, released and expenditure incurred during last three years and current year, under the scheme of Capacity Building- PSA of Rashtriya Gram Swaraj Abhiyan

(Rs. in crore)

| S.N o.   | Name of the State/ UTs   | 2012-13     | 2012-13         | 2012-13        | 2013-14     | 2013-14        | 2013-14        | 2014-15    | 2014-15         | 2014-15        | 2015-16     | 2015-16         | 2015-16        | 2016-17     | 2016-17         | 2016-17           |
|----------|--------------------------|-------------|-----------------|----------------|-------------|----------------|----------------|------------|-----------------|----------------|-------------|-----------------|----------------|-------------|-----------------|-------------------|
| S.N o.   | Name of the State/ UTs   | Sanction ed | Funds Release d | Funds Utilized | Sanctione d | Funds Released | Funds Utilized | Sanctioned | Funds Release d | Funds Utilized | Sanctio ned | Funds Release d | Funds Utilized | Sanction ed | Funds Release d | Funds Utiliz ed * |
| 1        | Assam                    | 0           | 0               | 0 36.97        |             | 16.65          | 16.65          | 98.21      | 26.04           | 26.04          | 39.48       | 17.08           | 11.66          | 55.29       | 21.83           |                   |
| 2        | Andhra Pradesh           | 0           | 0               | 0              | 203.69      | 41.6           | 41.6           | 144.35     | 24.19           | 24.19          | 21.04       | 12.5            | 10.6           | 69.51       | 45.8            |                   |
| 3        | Arunachal Pradesh        | 0.99        | 0.99            | 0.99           | 21.52       | 8.71           | 8.71           | 23.13      | 7.72            | 7.28           | 2.90        | 0               |                | 0           | 0               |                   |
| 4        | Bihar                    | 0           | 0               | 0              | 22.96       | 8.61           | 0              | 192.30     | 63.67           | 0              |             | 0               |                | 0           | 0               |                   |
| 5        | Chhattisgarh             | 1.25        | 1.25            | 1.25           | 71.91       | 25.73          | 25.73          | 94.33      | 11.4            | 11.4           | 29.68       | 14.64           | 10.72          | 42.61       | 21.31           |                   |
| 6        | Gujarat                  | 3.32        | 3.32            | 3.32           | 87.75       | 31.65          | 31.65          | 37.70      | 1.06            | 1.06           | 10.36       | 0               |                | 66.76       | 33.38           |                   |
| 7        | Haryana                  | 5.66        | 5.66            | 5.66           | 19.80       | 2.93           | 2.93           | 57.90      | 18.78           | 6.25           | 21.81       | 0               |                | 30.39       | 0               |                   |
| 8        | Himachal Pradesh         | 4.95        | 4.95            | 4.95           | 55.41       | 15.84          | 15.84          | 51.59      | 15.26           | 7.78           | 13.12       | 2.48            |                | 0           | 0               |                   |
| 9        | Jammu& Kashmir           | 0           | 0               | 0              | 25.16       | 9.45           | 0              | 45.71      | 8.58            | 0              | 7.08        | 0               |                | 0           | 0               |                   |
| 10       | Jharkhand                | 0           | 0               | 0              | 35.56       | 16.45          | 15.83          | 47.92      | 16.2            | 14.36          | 23.89       | 9.49            |                | 60.79       | 20.9            |                   |
| 11       | Karnataka                | 2.27        | 2.27            | 2.27           | 68.11       | 25.56          | 25.56          | 160.09     | 46.8            | 46.74          | 77.76       | 32.71           | 0              | 58.81       | 0               |                   |
| 12       | Kerala                   | 0           | 0               | 0              | 44.19       | 16.58          | 16.58          | 60.35      | 14.49           | 11.28          | 10.55       | 0               |                | 23.53       | 8.55            |                   |
| 13       | Manipur                  | 0           | 0               | 0              | 3.54        | 1.6            | 1.6            | 12.03      | 5.42            | 5.42           | 10.80       | 5.4             | 5.4            | 10.02       | 4.81            | 4.81              |
| 14       | Madhya Pradesh           | 0.99        | 0.99            | 0.99           | 116.85      | 42.83          | 42.83          | 164.76     | 37.46           | 0              | 41.63       | 10.8            | 9.52           | 86.21       | 41.83           |                   |
| 15       | Maharashtra              | 0           | 0               | 0              | 221.77      | 83.17          | 83.17          | 214.31     | 34.76           | 34.76          | 39.76       | 4.5             | 2.84           | 45.66       | 21.17           |                   |
| 16       | Odisha                   | 0           | 0               | 0              | 76.58       | 28.73          | 28.73          | 116.51     | 32.92           | 32.92          | 19.58       | 0               |                | 40.03       | 20.01           |                   |
| 17       | Punjab                   | 2.90        | 2.90            | 2.90           | 28.96       | 7.97           | 7.97           | 7.32       | 0               | 0              | 2.69        | 2.69            | 2.69           | 19.38       | 7               |                   |
| 18       | Rajasthan                | 13.61       | 13.61           | 13.61          | 64.24       | 15.45          | 15.45          | 44.84      | 11.56           | 11.56          | 16.37       | 4.48            | 3.88           | 45.75       | 22.27           |                   |

| 19   | Sikkim        | 0           |     0 | 0       |   6.99 | 3.15   | 3.15        |   17.77 |   6.85 | 6.85   | 2.70   | 1.26      |   1.19 4.83 |   2.33 |      |
|------|---------------|-------------|-------|---------|--------|--------|-------------|---------|--------|--------|--------|-----------|-------------|--------|------|
| 20   | Tamil Nadu    | 0 0         |  0    | 155.01  |  58.14 |        | 58.08 54.10 |   20.16 |  20.16 | 18.26  |        | 8.96 8.05 |       55.48 |  27.32 |      |
| 21   | Tripura       | 0.08 0.08   |  0.08 | 17.10   |   9.09 | 9.09   | 13.34       |    2.36 |   2.08 | 5.21   | 1.35   | 0         |       13.32 |   5.3  |      |
| 22   | Telangana     | 0 0         |  0    | 91.49   |  34.64 | 34.64  | 154.26      |   29.94 |  29.94 | 35.78  | 13.13  | 9.23      |       36.76 |  14.48 |      |
| 23   | Uttarkhand    | 2.11 2.11   |  2.11 | 18.64   |   5.47 | 5.47   | 46.82       |   13.04 |  13.04 | 9.53   | 3.09   | 2.58      |       27.45 |  13.21 |      |
| 24   | Uttar Pradesh | 4.77 4.77   |  4.77 | 125.69  |  42.37 | 33.85  | 87.17       |    0    |   0    | 70.54  | 11     |           |      118.59 |  39.87 |      |
| 25   | West Bengal   | 0 0         |  0    | 21.92   |   8.23 | 8.23   | 102.88      |   27.71 |  27.71 | 37.13  | 9.91   | 9.17      |       45.2  |  21.85 |      |
| 26   | Mizoram       | 0 0         |  0    |         |   0    | 0      | 5.52        |    2.48 |   2.48 |        | 0      |           |       12.95 |   6.22 |      |
| 27   | Dadra         | 0 0         |  0    | 3.6     |   0    | 0      | 2.90        |    1.09 |   0.88 |        | 0      |           |        0    |   0    |      |
| 28   | Daman         | 0 0         |  0    | 3.72    |   0    | 0      | 4.02        |    1.51 |   0    |        | 0      |           |        0    |   0    |      |
| 29   | Goa           | 0 0         |  0    |         |   0    | 0      |             |    0    |   0    | 2.60   | 1.06   | 0.12      |        3.83 |   1.37 |      |
| 30   | Chandigarh    | 0 0         |  0    |         |   0    | 0      |             |    0    |   0    | 1.33   | 0.29   | 0         |        0    |   0    |      |
| 31   | Lakshadweep   | 0 0         |  0    |         |   0    | 0      |             |    0    |   0    | 4.26   | 1.65   | 0         |        0    |   0    |      |
|      | Total         | 42.90 42.90 | 42.9  | 1648.93 | 560.6  | 533.34 | 2062.17     |  481.45 | 344.18 | 575.84 | 168.47 | 87.65     |      973.69 | 400.81 | 4.81 |

## ANNEXE-III

## Activities sanctioned under Capacity Building- Panchayat Sashakatikaran Abhiyan(CB-PSA) of Rashtriya Gram Swaraj Abhiyan (RGSA)

| Sl. No.   | Component                                                                                                         | Financial Year   | Financial Year   | Financial Year   | Financial Year   |
|-----------|-------------------------------------------------------------------------------------------------------------------|------------------|------------------|------------------|------------------|
|           |                                                                                                                   | 2013-14          | 2014-15          | 2015-16          | 2016-17          |
| 1         | Infrastructure Development at GP level                                                                            |                  |                  |                  |                  |
| a         | Construction of New GP Buildings (*)                                                                              | 3128             | 2497             | 6                | (*)              |
| b         | Repair of GP Buildings (*)                                                                                        | 7727             | 8356             | 0                | (*)              |
| c         | Computers, UPS, Printers (Nos.)                                                                                   | 22506            | 20126            | 622              | 610              |
| 2         | Other activities                                                                                                  |                  |                  |                  |                  |
| a         | Training of Elected Representatives (ERs) &Functionaries of Panchayats (in lakh)                                  | 10.96 lakh       | 17.21 lakh       | 67.32 lakh       | 52.50 lakh       |
| b         | Resource Centre for strengthening training infrastructure at State, District, Block level/ Human Resource Support |                  |                  |                  |                  |
| i         | State Panchayat Resource Centre (SPRC)                                                                            | 23               |                  | 5                | 4                |
| ii        | Human Resource Support at SPRC                                                                                    | 16               | 17               | 16               | 16               |
| iii       | District Panchayat Resource Centre (DPRC)                                                                         | 136              | 189              | 22               | 22               |
| iv        | Human Resource Support at DPRC                                                                                    | 12               | 18               | 13               | 13               |
| v         | Block Panchayat Resource Centre/ETC                                                                               | 338              | 851              | 0                | 17               |
| c         | E-Governance PMU                                                                                                  | 0                | 7                | 19               | 19               |
| d         | SATCOM in States                                                                                                  | 2                | 8                | 0                | 4                |
| e         | Support to PESA Areas (No. of States)                                                                             | 9                | 8                | 6                | 9                |
| f         | Support to State Election Commission (SEC)                                                                        | 2                | 14               | 1                | 0                |
| g         | Programme Management Unit and IEC (No. of States)                                                                 | 26               | 28               | 27               | 21               |

Note:  (*) Gram Panchayat buildings and repair (discontinued from 2015-16 of RGPSA)