30 March 2024

MAINS DAILY QUESTIONS & MODEL ANSWERS

Q1. The Panchayati Raj Institutions (PRIs) in India envisaged ass as important self-governing entities, but their performance has been mixed, marked by both successes and limitations. Critically examine.

GS II – Local Governance related issues

Introduction:

• The 73rd Constitutional Amendment Act 1992 is a significant landmark in the evolution of grassroot democratic institutions in the country. It transformed the representative democracy into participatory democracy. It is a revolutionary concept to build democracy at the grassroot level in the country.
• Three decades have passed since the 73rd and 74th Constitutional Amendments Acts came into effect, which envisaged that local bodies in India would function as institutions of local self-government. However, after decades of this historic amendment, Panchayati Raj Institutions have remained laggard in the developmental process.

Success of Panchayati Raj:

• Gandhiji’s dream of Gram Swaraj and Oceanic Circles of Power were realised through the Panchayati Raj System.
• The PRIs are the local self-governing bodies that ensure the opportunity for people’s participation and involvement in the formulation and implementation of rural development programmes.
• The main objective of Panchayat System in India is to strengthen the base of democracy at the grass root level.
• It was introduced as a real democratic political apparatus which would bring the masses into active political control from below, from the vast majority of the weaker, poor sections of rural India.
• They play the role of a catalytic agent in integrating development of tribal masses in rural areas.
• Plan documents of both the central and state governments and various committees have emphasised the importance of these bodies in the polity. Five-year plans have also laid special emphasis on the role of Panchayats in rural developments.
• Rural Development includes measures to strengthen the democratic structure of society through the PRIs.
• PRIs have been used to improve the rural infrastructure, income of rural households and delivery systems pertaining to education, health and safety mechanisms. These institutions are to be galvanised to become effective instruments of social and economic change at the local level.
• Reservation for women (33%) has increased their presence in the public life.

Failures of democratic decentralisation especially in Panchayats:

• Overwhelming dependency on government funding: Panchayat’s own resource base to raise finances is low and the financial resources are tied to certain schemes and initiatives. When Panchayats do not raise resources and instead depend on external funding, people are less likely to enforce social audit and efficacy of the schemes.
• Eg: In case of Urban local bodies, majority of municipalities have not increased property tax since many years and have not leveraged the municipal bonds for betterment of city infrastructure.
• Creation of Parallel Bodies: Parallel Bodies have usurped the legitimate space of local bodies. For instance, Smart City scheme is being implemented in major cities through Special Purpose Vehicles, squeezing the limited space of urban local governance in municipalities.
• Lack of adequate Devolution: Many states have not devolved the 3F’s of function, funds and functionaries, to enable local bodies to discharge their constitutionally stipulated functions.
• Excessive control by bureaucracy
• In many Gram Panchayats, Sarpanches have to spend an extra ordinary amount of time visiting block Officers for funds and/or technical approval. These interactions with the Block staff office distort the role of Sarpanches as elected representatives.
• Multiple institutions like parastatals, development authorities, public works departments, and ULBs themselves report to different departments of the state government and have been entrusted with overlapping responsibilities.
• Poor Infrastructure: It is found that nearly 25% of Gram Panchayats do not have basic office buildings. Capacity building of elected representatives is another hindrance in the grass roots democracy. In case of urban local bodies, Mayor position is merely cermonial.

Measures Need to strengthen Panchayats:

• Central Government has started the Rashtriya Gram Swaraj Abhiyaan. The campaign is undertaken under the name of “Sabka Sath, Sabka Gaon, Sabka Vikas”.
• It aims to draw up Gram Panchayat Development Plans (GPDPs) in the country and place them on a website where anyone can see the status of the various government’s flagship schemes.
• Gram Panchayats have been mandated for the preparation of GPDP for economic development and social justice utilizing the resources available to them.
• Government of India formulated E-Panchayat Mission Mode Project for e-enablement of all the Panchayats, to make their functioning more efficient and transparent.
• Social Audit: The power of social audit was proven by Jan Sunwai in Rajasthan. Transparent, third party Social Audit can enable people to hold the representatives accountable.
• Citizen Participation: In case of Gram Sabhas, their functions and roles must be clearly defined as in the PESA Act, to enable to function effectively.
• The need of the hour is to bring about a holistic change in the lives of people among the villagers by uplifting their socioeconomic and health status through effective linkages through community, governmental and other developmental agencies. People’s demands for the sustainable decentralisation and advocacy should focus on a decentralisation agenda. The framework needs to be evolved to accommodate the demand for decentralisation.

Q2. Freebies may be implemented without adequate fiscal planning, potentially leading to budgetary deficits and financial instability over time. Examine.

GS II – Government Policies and Interventions

Introduction:

• The Reserve Bank of India (RBI) in 2022 issued a definition for the term ‘freebies’ as a form of public welfare programme that is offered without any cost. The Reserve Bank of India (RBI) asserts that freebies can be differentiated from public or merit goods, such as education and healthcare, as well as other state expenditures that yield broader and enduring advantages.
• Over the years the freebies have become an integral part of the politics in India, be it for making promises in the electoral battles or providing free facilities to remain in power. Competitive populism has been the defining theme of campaigning in the ongoing Assembly elections in five States.

Unsustainable Freebies:

• Populist Giveaways: Unsustainable freebies are often political tools aimed at garnering short-term popularity without regard for fiscal responsibility.
• Budgetary Irresponsibility: These freebies are usually not adequately budgeted for and can lead to budget deficits, increased public debt, and fiscal instability.
• Short-Term Focus: Unsustainable freebies may provide temporary relief or benefits, but they often lack a long-term vision for economic development or poverty reduction.
• Risk of Economic Imbalance: Offering unsustainable freebies can distort economic incentives, lead to wasteful spending, and hinder resource allocation for essential public goods and services.

Harmful impact of unsustainable freebies:

• Macroeconomically Unstable:Freebies undercut the basic framework of macroeconomic stability, the politics of freebies distorts expenditure priorities and outlays remain concentrated on subsidies of one kind or the other.
• Impact on States’ Fiscal Situation:Offering freebies, ultimately, has an impact on the public exchequer and most of the states of India do not have a robust financial health and often have very limited resources in terms of revenue.
• If states keep spending money for supposed political gains, their finances will go awry andfiscal profligacy would prevail.
• As per theFiscal Responsibility and Budget Management (FRBM) rules the states can’t borrow beyond their limits and any deviation has to be approved by the Centre and central bank.
• Therefore, while states have flexibility on how they choose to spend their money, they cannot in ordinary conditions exceed their deficit ceilings.
• Freebies can create a negative pattern of dependency and entitlement among the recipients, who may expect more freebies in the future and become less motivated to work hard or pay taxes.For example, freebies such as rice at Rs 1 per kg or electricity at zero cost can reduce the sense of responsibility and accountability of the beneficiaries and make them dependent on external aid.
• Against Free and Fair Election:The promise of irrational freebies from public funds before elections unduly influences the voters, disturbs the level playing field and vitiates the purity of the poll process.
• It amounts to an unethical practice that issimilar to giving bribes to the electorate.
• A Step Away from the Environment:When the freebies are about giving free power, or a certain quantum of free power, water and other kinds of consumption goods, it distracts outlays from environmental and sustainable growth, renewable energy and more efficient public transport systems.
• Moreover, it is a general human tendency to use things in excess (thus leading to wastage of resources) when it is provided for ‘free’.
• Debilitating Effect on Future Manufacturing:Freebies lower the quality and competitiveness of the manufacturing sector by detracting from efficient and competitive infrastructure that enable high-factor efficiencies in the manufacturing sector.
• Destroys Credit Culture:Giving away loan waivers in the form of freebies may have undesired consequences such as destroying the whole credit culture and it blurs the very basic question as to why is it that a large majority of the farming community is getting into a debt trap repeatedly.

Way forward:

• Freebies must be understood from an economic perspective and connected to taxpayers’ money.
• Political parties should be required to disclose the financing and trade-offs of freebies to the voters and theECI before announcing them. This would include specifying the sources of revenue, the impact on fiscal balance, the opportunity cost of public spending, and the sustainability of freebies.
• ECIshould be provided more powers to regulate and monitor the announcement and implementation of freebies by political parties during elections.
• This would include giving the ECI more powers to de-register parties, impose penalties, or take contempt action for violating the model code of conductor the court orders on freebies.
• In a democracy, the power to block or allow the march of freebies rests with the voters.
• Educating voters about the economic and social consequences of freebies and encouraging them to demand performance and accountability from political parties.
• This would include creating awareness campaigns, voter literacy programs, civil society initiatives, and media platforms to inform and empower voters to make rational and ethical choices.
• The Supreme Court has suggested setting up an expert committee to look into the issue of freebies and their impact on the economy and democracy.
• The committee would consist of members from the Niti Aayog, the Finance Commission, the RBIand other stakeholders. The committee would make suggestions on how to control freebies given by political parties during election campaigns.
• Inclusive development would also create a more conducive environment for economic growth and social progress, which would benefit all sections of society in the long run. Therefore, inclusive development can be a more effective and desirable alternative to freebies.
• It is time for political parties and the Election Commission to lay down basic guidelines to distinguish between a welfare scheme and an irrational freebie. The handout culture to win votes must end. This would go a long way in improving the states’ fiscal health, nurturing healthy democracy and helping build a better India.