“The local self-government system in India has not proved to be effective instrument of governance.” Critically examine the statement and give your views to improve the situation.
Approach · directive: “critically examine”
What it asks · Weigh the achievements of Panchayats and municipalities after the 73rd and 74th Amendments against their weaknesses in functions, funds and functionaries, then propose reforms.
It asks 2 things — answer each
- Critically examine: how far local bodies have succeeded or failed as instruments of governance — achievements against weaknesses, with a verdict
- Give views to improve the situation: specific reforms in functions, funds and functionaries
Open with · The 73rd and 74th Amendments (1992) made local bodies constitutional institutions of self-government, but Article 243G leaves their powers to State law, so their record is mixed.
Cover
- Achievements: about 1.4 million women members, 46% of Panchayat representatives (MoPR, 2024); Article 243I mandates a State Finance Commission every five years.
- State model: Kerala's People's Plan Campaign (1996) devolved 35–40% of the State plan to local governments.
- Functions on paper: CAG's 2024 compendium (18 States) found 17 of 18 Twelfth Schedule functions devolved by law, only 4 with full autonomy.
- Funds: weak own taxes, tied grants, and SFC reports delayed or shelved.
- Capture: proxy rule by relatives ('sarpanch-pati'), elite capture and weak gram sabhas.
- Reforms: 2nd ARC's 6th Report — subsidiarity and activity mapping; untied grants, wider own taxes, timely SFC action, staff transfer, social audit.
Close with · Devolving functions, funds and functionaries together would let local bodies deliver SDG 16.7: responsive, inclusive, participatory and representative decision-making at all levels.
Add value (verified)
- Article 243I requires the Governor to constitute a State Finance Commission every five years to review the finances of Panchayats, a constitutional check on their fiscal health.The Constitution of India (as on 1 May 2024), Article 243I - Legislative Department ↗“thereafter at the expiration of every fifth year, constitute a Finance Commission to review the financial position of the Panchayats and to make recommendations to the Governor”
- Article 243G leaves it to each State legislature to decide what powers Panchayats get, which is why devolution differs so widely across States.The Constitution of India (as on 1 May 2024), Article 243G - Legislative Department ↗“the Legislature of a State may, by law, endow the Panchayats with such powers and authority as may be necessary to enable them to function as institutions of self-government”
- Women hold about 1.4 million seats in Panchayats, 46% of elected representatives (MoPR, May 2024).Elected Women Representatives of PRIs at CPD57 side event — PIB, Ministry of Panchayati Raj, 2024 ↗“with 1.4 million women serving as elected members of Panchayati Raj Institutions / Rural Local Bodies, constituting 46% of the total elected representatives of PRIs”
- Kerala's People's Plan Campaign (Ninth Plan, 1996) devolved 35–40% of the State plan to local governments.9th Five Year Plan – People's Plan Campaign — Local Self Government Department, Government of Kerala ↗“Decision for devolving 35-40% of state plan to the Local Self Governments”
- CAG compendium (2024, 18 States): 17 of 18 Twelfth Schedule functions devolved by law on average, but only 4 with complete autonomy.Compendium of Performance Audits on the Implementation of the 74th Constitutional Amendment Act, 1992 — CAG of India ↗“17 out of the 18 functions Compendium synthesising Performance Audits on the implementation of the 74th Constitutional Amendment Act (CAA) in 393 Urban Local Self-Governments (ULSGs) in 18 States. 1 Suburbs of Mumbai, Maharashtra However, only 4 functions are effectively devolved with complete autonomy.”
- The 2nd ARC's 6th Report (Local Governance) rests on subsidiarity: what can best be done at lower levels should not be centralised; SDG 16.7 calls for participatory decision-making at all levels.Second Administrative Reforms Commission, Sixth Report: Local Governance (copy hosted by the Tamil Nadu Rural Development Department, tnrd.tn.gov.in) ↗“the principle of subsidiarity which means that what can best be done at the lower levels of government should not be centralised at higher levels”
- SDG target 16.7: responsive, inclusive, participatory and representative decision-making at all levels.Goal 16 targets — UN Department of Economic and Social Affairs, Sustainable Development ↗“Target 16.7 Ensure responsive, inclusive, participatory and representative decision-making at all levels”
Question: UPSC's CS (Main) 2017, GS Paper II — paper ↗. Approach: Minimalist IAS, checked 3 Oct 2026 (how we verify) — UPSC publishes no model answers. ·
Model answer· 222words · Minimalist IAS
The 73rd and 74th Amendments (1992) made Panchayats and municipalities constitutional bodies, but Article 243G says only that States 'may, by law, endow' them with powers. Hence a mixed record.
Where local self-government has worked
- Representation: about 1.4 million women sit in Panchayats, 46% of elected members (MoPR, 2024), above the one-third reserved.
- Fiscal check: Article 243I mandates a State Finance Commission (SFC) every five years.
- State model: Kerala's People's Plan Campaign (1996) devolved 35–40% of the State plan to local governments.
Why it is not yet an effective instrument
- Functions on paper: CAG's 2024 compendium (18 States) found 17 of 18 Twelfth Schedule functions devolved by law, only 4 with full autonomy.
- Thin funds: weak own taxes, tied grants, and SFC reports delayed or shelved.
- Capture: proxy rule ('sarpanch-pati') and elite capture weaken gram sabhas.
| 3Fs | Promise | Reality |
|---|---|---|
| Functions | 29 + 18 subjects | Few truly devolved |
| Funds | SFC every 5 years | Grant dependence |
| Functionaries | Own cadre | Line departments rule |
Views to improve the situation
- Subsidiarity: the 2nd ARC's 6th Report (Local Governance) keeps with lower tiers what they do best, via activity mapping.
- Fiscal muscle: untied grants, property-tax powers, time-bound SFC action.
- Capacity: staff transferred with functions, social audit and e-governance.
Devolving the 3Fs together would let local bodies deliver SDG 16.7: responsive, inclusive, participatory and representative decision-making at all levels.
Prepared by Minimalist IAS to the answer standard of Shivam Singh (mentor, 7 years) · facts checked against official sources (how we verify) · updated 3 Oct 2026. UPSC publishes no model answers: compare your structure and coverage with this, then write your own.
