Why the third tier of government needs a status upgrade

Issue of devolution to panchayats must be addressed by giving states skin in the game

- PRASANTA SAHU

FINANCE MINISTER NIRMALA Sitharaman's recent statement that the Narendra Modi government in its expected third term will undertake major reforms at the third level of the federal structure of government has brought the local bodies (LBS) and their below-potential existence, into focus again.

Even three decades after the Constitution mandated the setting up of empowered local self-governments at the level of panchayats and municipalities, these institutions have not been able to acquire the financial and policy-making powers envisaged at the time of the constitutional amendment.As a result, key objectives of governance aren't being met at the desired pace, even in cases where Budget outlays have risen meaningfully.

The objectives that are work-inprogress include ease of investments and doing business, achieving optimal outcome of the government's welfare Budget, making programmes flexible to the needs of the society and addressing disparity across regions in accomplishment of sustainable development goals.

Experts have long blamed the states, which were empowered to give effect to the Constitutional provisions, for their lack of interest in conducting regular elections of the local self-governments, devolving adequate powers to them, and boosting their financial resources. Of late, there have also been concerns that Central are government programmes designed with lesser involvement of states in decision-making, and that the conditions imposed in regard to transfer of assorted central funds to states/LBs are restrictive and without due regard to specific local needs.

The Centre's focus should be on reforms to address local bodies'capacity constraints, augment their own revenues and nudge states to empower these bodies to strengthen governance at the grassroots level to ensure effective service delivery to citizens, experts said.