DECENTRALISED PLANNING
Overview Decentralisation of socioeconomic planning process and plan implementation to the grass root levels has been a matter of continuing concern. Another facet of this endeavour is to involve the people in plan formulation and implementation, taking this to the lowest area levels. Empowerment of Panchayats, as effec- tive local self-governing institutions is en- shrined as a Directive Principle of the State Policy in the Constitution. Over years the dif- ferent States have enacted legislations setting up Panchayats at the village, block or District level with varying modes of composition - directly elected peoples' representatives, nominated persons or a combination of the two, at different levels. Nevertheless, given the experience in efficacious achievements of ob- jectives, a substantial degree of experimenta- tion by different States from time to time, has been an important feature. The 73rd and 74th Amendments to the Constitution of India mark a watershed in these developments. The Amendment would form the basis of amended state legislations on Panchayati Raj Institution (PRI) to put the Panchayats on a strong foun- dation and virtually forming a third tier of governance, after the Union and State Govern- merits. The NDC Committee on Micro-level Planning and Involvement of People at Grass Root Level supplements this process by ad- dressing itself to question of decentralisation of planning process. Several important issues arise in terms of institutional matters, alloca- tion of sectoral and sub-sectoral functions to the Panchayats and methodological aspects of plan formulation and implementation.
The Eighth Plan Objectives 10.2 The Eighth Plan recognises the essential need to involve people in the process of devel- opment and remove the all pervasive attitude of passive observance and total dependence on the Government for development activities. The Plan aims to formulate institutional strate- gies which would create and strengthen vari- ous peoples' institutions at the District, Block and village levels. Elected Panchayats and Na- garpalikas are envisaged to play a larger role in formulating and implementing the develop- ment projects in their areas. They are to be vested with adequate financial resources, tech- nical/managerial inputs and decision making authority.
10.3 The Plan document elaborates these ideas and refers extensively to the need for bringing about systematic involvement and active par- ticipation of the people in developmental ac- tivities. Two principal grounds which provide the rationale for formulations are: (a) decen- tralised institutions have the capacity to diag- nose the needs of the areas, interact with the governmental agencies in order to draw need based local plans and to implement those plans in close cooperation with the administration" and (b) being accountable to the community. these institutions are better placed to improve the delivery systems in administering schemes and programmes drawn up responding to the felt needs of the people, to optimise the bene- fits reaching those and to whom they are meant.
Community Development Blocks 10.4 The early steps can be traced to the Bal- want Rai Mehta Committee which reviewed the working of the Community Development Blocks and plan projects and suggested Panchayati Raj' institutions having a three tier integrated organic structure. State legislations creating institutions, with suitable modifica- tions allowing for regional variations, fol- lowed. Panchavati Raj' Institutions got off to a good start in the sixties. In course of time, however except for a few states like Ma- harashtra, Gujarat, Karnataka and West Ben- gal, others either superceded the institutions or allowed them little freedom to operate.
Decentralisation of Planning - District
Planning 10.5 The Administrative Reforms Commis- sion highlighted the need for District Planning and to relate it to those areas where local variations in the pattern and process of devel- opment were likely to yield quick results in terms of growth. In 1969, guidelines were communicated to the States for formulating district plans. These detailed the concept of district plan and methodology of drawing up such a plan in the framework of annual, me- dium term and perspective plans. The Coin- mission also agreed to assist the States in the setting up of planning machinery, at the district
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and sub district level over the years. The scheme for Strengthening of Planning Ma- chinery at State Level was started in 1972-73. This was extended to the District level in 1982- 83.
Block Planning 10.6 A Working 'Group on Block level Plan- ning headed by Prof. M.L. Dantwala submitted a report in 1978. It identified the remoteness of planning agencies at the District Level from the actual scene of action as the cause of mis- match of actual financial allocations with lo- cation specific needs. A forceful plea was made that Block level planning, (the same area which was covered by Community Develop- merit Blocks) should be the appropriate sub- state planning level for proper appreciation of the felt needs of the people. Thereafter, guide- lines were issued formulation of Block level plans.
10.7 At about the same time, another Commit- tee headed by Shri Asoka Mehta had been appointed to go into the working of Panchayat Raj' Institutions. It advocated that develop- mental efforts had to be in tune with the needs of the poor and marked by a high degree of co-ordination which was not possible to achieve at the State level. While recommend- ing Block level planning, the Committee stressed that the District officials should be properly qualified and placed. under the control of the Zilla Parishad (Z.P.). It also suggested that the Panchayat Raj' Institutions should be made to develop into agencies for planning schemes which were of immediate necessity.
State Legislation on Panchayati Raj
Institutions 10.8 Legislations were passed by different States constituting institutions at the Block and District level. There is considerable variation from State to State in the constitution and composition or Panchayats at various levels starting from the village upto the district in different states, as also the manner of election of the office-bearers. Even in terms of func- tions entrusted to the PRIs at different levels, (tic position varies considerably. One impor- tant feature to be noted was the association or MPs and MLAs with these institutions. Again the pattern was; quite varied. Sonic did not include MLAs or MPs. In others, they were members on the District or Block Panchayats with or without Voting rights.
10.9 Powers and functions entrusted to the PRIs, particularly those at the Block and Dis- trict level, broadly follow two types of pattern namely, the legislation itself conferring func- tions to District Panchayats as is the case in Maharashtra, Gujarat or Karnataka, or the leg- islation only making enabling provisions for certain functions to be entrusted to Zilla Par- ishads by a general or special order of the State Government.
10.10 The various Acts dealing with Panchayat Institutions did provide for income flow to these institutions at different levels but again the pattern was different from State to State. In this connection, it should be noted that where certain schemes were transferred to the Zilla Parishads corresponding outlay for im- plementation were also made over to Zilla Parishads. Broadly, three categories of activi- ties of the Zilla Parishads emerge from the point of funding the programmes.-- (i) schemes undertaken from funds raised by Z.P.s or de- volving to them under the Statute (ii) schemes transferred by State Government and (ill) schemes implemented based on specific orders of the Government. In the last category of' cases, the degree of freedom exercised in the execution of the scheme/programme was lim- ited. Unless the statute itself provided for cer- tain types of activities/schemes to be transferred, the extent of activities entrusted would depend on special/general orders of the State Governments.
73rd Amendment 10.11 The 73rd Amendment to the Constitu- tion is almost the culminating point of the evolutionary process in regard to decentralisa- tion of democratic power. It confers constitu- tional status to the Panchayats at District and sub-District levels and envisages setting tip of' Panchayats at village, intermediate and Dis- trict levels in every State. One major element is giving representation to the MPs and MLAs in the Block and District Panchayats. The Amendment has provisions which are of great significance in so far as the relate to socio- economic planning. These concern prepara- tion of development plans, implementation of development schemes, power to levy and col- lect taxes, constitution of State Finance Com- missions to review financial position of Panchayats, delineation of subjects which call be assigned to the Panchayats and invalidating any law in force which is inconsistent with the Amendment. The State Governments are ex- pected to amend their laws to make them con-
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form to the Constitutional Amendment. A tar- get date was fixed for completion of this proc- ess.
74th Amendment 10.12 The 74th Amendment to the Constitu- tion has provided the legal basis for local self government in Urban Areas for the first time, It provides the municipalities with powers and authority, as may be necessary, to carry out the responsibilities conferred upon them includ- ing those related to matters listed in the Twelfth Schedule. It empowers the State Fi- nance Commission to review the financial po- sition of the Municipalities and recommend the pattern of sharing of taxes, duties, tolls, etc. as also grants-in-aid from the Consolidated Fund of the state. According to this Amend- ment a District Planning Committee is to be constituted in every state which will consoli- date the plans prepared by the Panchayats and the Municipalities in the district so that a draft development plan may be prepared for the district as a whole.
Block or District Level Planning 10. 13 The principal issues relating to the ques- tion of decentralisation of planning and imple- mentation of schemes could be broadly classified under three heads namely:
i) Institutional aspects;
ii) Allocations of sectoral and sub-sectoral functions failing exclusively in the man- date of PRIs; and
iii) Planning and implementation aspects.
Many of these aspects would have substantial overlaps and a policy in regard to one would have bearing on other aspects.
10.14 The amendments being carried Out in the State legislations dealing with constitution of Panchayati Raj Institutions, following the 73rd Amendment, would require preparation of' perspective, 5 years or annual plans to be car- ried out at the Block or District levels. Prepa- ration of the Plan at the District level would imply that while the lower tier i.e., the Village or Block panchayat would initially prepare draft plans for their areas, the aggregation and integration of the plans would be carried out at the District level and would have to be ap- proved sanctioned by the Zilla Parishads. The implementation of such plans would be the primary responsibility of the Block or Village panchayats. On the other hand, if the prepara- tion of the area plans are to be approved at the Block levels, at the District level only an exer- cise in consolidation could be expected.
10.15 In 1985 a Committee was constituted by the Planning Commission under the Chair- manship of Dr. G.V.K. Rao to review the ex- isting administrative arrangements for Rural Development and Poverty Alleviation Pro- gramme (CAARD), and to recommend appro- priate structural mechanism for ensuring that they are planned in an integrated manner and effectively implemented. In the Committee's view, the District should be the basic unit for policy planning and programme implementa- tion and the Zilla Parishad could, therefore, become the principal body for the manage- ment of all development programmes which can be handled at that level. It was recognised that the major operational machinery for im- plementation of the District Rural Develop- merit Plan will be that of the Block set up.
10.16 The State Finance Commissions are to be constituted in the wake of the 73rd and 74th Amendment. The task of the Commission is really challenging as they are to deal with urban local bodies and over 500 Zilla Par- ishads, 5000 Panchayat Samitis and nearly 2.5 lakh Gram Panchayats.
Non-Government Organisations 10.17 Another issue of importance is the mo- dalities adopted by the Central Government in the implementation of schemes. In many schemes, the various Ministries/departments have been seeking to provide funds to NGOs for undertaking developmental activities as in the case of many facets of rural development- drinking water, rural health and sanitation. wastelands development, family welfare etc. If these functions are to lie in the province of Panchayats, the question is whether parallel implementation of schemes through NGOs by the Centre is at all advisable or whether asso- ciation of the NGOs working in the local area be left to the judgement of the local Panchay- ats.
Special Central Assistance for Sub-Plans 10.18 Another aspect of critical significance is the sub plan approach adopted by the Central Government in ameliorating the socio-eco- nomic lot of under-privileged sections of soci- ety such as the members of' the Scheduled Tribes under Tribal Sub Plan and Scheduled Castes through Sub Component Plans. The Central Government provides assistance to the
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States for improving the efficacy of the ongo- ing programmes taken up by the State Govern- ments to improve the lot of these under-privileged sections.
10.19 As brought out the 73rd Amendment, the implementation for economic develop- ment and social Justice are to be entrusted to the Panchayats including those in relation to matters included in the Eleventh Schedule. A view will have to be taken as to whether the present administrative arrangements made for implementation of the Tribal Sub Plans through the concept of Integrated Tribal De- velopment Blocks and the SCPs as a State administered function should continue or these be brought under the aegis of the ZPs.
Agro-Climatic Zonal Planning 10.20 In 1988, the Planning Commission had undertaken an exercise on the desirability of bringing in agricultural planning based on natural resources endowment and available technologies. The country was divided into 15 broad Agro Climatic Regions and later into about 80 sub zones on the basis of homogenous agro climatic and soil parameters. Zonal Plan Teams(ZPTs) were constituted and zonal strategies were first worked for rapid agricul- tural development taking into account the natural resources as well as available technol- ogy.
10.21 Thereafter, it was decided to work out district strategies considering that this is com- monly accepted as the operational administra- tive area. The Agro-Climatic Regional Planning (ARCP) unit in the Planning Com- mission has been seeking to put in place agri- cultural planning based upon this approach rather than the traditional agricultural planning which essentially had agricultural commodity production orientation. In the Eighth Plan a beginning is being made to operationalise ag- ricultural planning on agro climatic zonal basis and to develop the institutional framework for the preparation of district agriculture plans in different agro-climatic regions. In subsequent Plans the State agricultural plan would be but an aggregation of district plans and the na- tional plan an aggregation of State agricultural plans.
10.22 Currently., tempts are being made to institutionalise the ACRP exercise in Tamil Nadu, West Bengal, Assam and Orissa and to internalise the experiences in terms of ap- proach and its application pertaining to land and water related activities in the exist- ing/emerging planning and development sys- tem in the country. The general model followed for institutionalisation is that of state level orientation with detailed district level orientation of functionaries through both nor- mal training programmes and planning assign- ments. The planning assignment in the district starts with strategy formulation and then moves to formulation of schemes. This exer- cise is led either by the District Collector or the Chief Executive Officer of Zilla Parishad. All related departmental functionaries, financial institutions, state agricultural universities etc. are involved. In case of West Bengal, there is a very close involvement of Panchayat Sami- tis.
10.23 In essence, the formulation of a district plan based upon the strategies advocated by the ZPTs would have looked at afresh. The Schemes/programmes to be taken up in a dis- trict would have to be guided by these consid- erations and one could expect considerable variation in the components of different schemes/projects so that local problems would be addressed. To some extent the small Farm- ers Agri Business Consortium also seek the same goal though this has a much larger tech- nology orientation as well as emphasis on processing of agricultural commodities.