KAMKUS COLLEGE OF LAW

B.A.LL.B.IIRD SEM.

PUBLIC ABMINISTRATION

CODE(BL-303)

Very short type questions-

Q.1. what is administration?

Ans- Administration- Administration is a co-operating human effort towards achieving some

common goals. Thus every group activity involves administration whether in a family, factory,
Administration is a process permeating all collective effort, be it public or private, civil or
military, large-scale or otherwise.

L.D.White- Administration is “the direction, coordination and control of many person to achieve
some purpose or objective.”

Q.2.what is public administration?

Ans- Public Administration stands for an activity of administrating governmental affairs.

Woodrow Wilson, the erstwhile President of America, in 1887 in America itself, started the
study of Public administration1 Administration is universal in nature. It is aimed at making those
things happen which we want to happen by rationally marshalling the available material and
labor in order to gain what is desired at the lowest cost in energy, time and money .Public
Administration as a discipline is only hundred years old but Public Administration as an activity
can be traced to the earlier period of human hist9ry when men started living in organized
societies.

1. L.D.White - Public Administration consist of all those operations having for their purpose the

fulfillment or enforcement of public policy.

2. Woodrow Wilson - Public Administration is detailed and systematic application of law.

Q.3.What is private administration?

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Ans-private administration is defined as management and organization of private business
enterprises.it is an administration function carried out by the private individuals or a group to
earn a profit.

LONG TYPE QUESTIONS-

Q.1. What do you understand by the term "Public Administration"? State the nature,
scope and Importance of Public Administration.?

OR

Q.2. Define public administration. Discuss the nature and scope of public administration.

OR

Q.3. Will it be correct to describe Private Administration as more efficient than Public
Administration?

Ans- NATURE, MEANING, SCOPE AND IMPORTANCE-

Administration- Administration is a co-operating human effort towards achieving some common

goals. Thus every group activity involves administration whether in a family, factory,
Administration is a process permeating all collective effort, be it public or private, civil or
military, large-scale or otherwise.

Definition- The definitions of Administration are as follows:

L.D.White- Administration is “the direction, coordination and control of many person to achieve
some purpose or objective.”

Pfiffiner and presthus-“The organized and direction of human and material resources to achieve
desired ends.”

Hebert A. Simon- “In its broadest sense, administration can be defined as the activities of groups
cooperating to accomplish common goals.”

Meaning

The term "administer" is derived from the Latin word 'ad+ ministrare' that means to look after
people and to manage affairs. It is a cooperative effort directed towards realization of the
consciously laid down objectives. Public Administration stands for an activity of administrating
governmental affairs. Woodrow Wilson, the erstwhile President of America, in 1887 in America
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itself, started the study of Public administration1 Administration is universal in nature. It is
aimed at making those things happen which we want to happen by rationally marshalling the
available material and labor in order to gain what is desired at the lowest cost in energy, time and
money .Public Administration as a discipline is only hundred years old but Public Administration
as an activity can be traced to the earlier period of human hist9ry when men started living in
organized societies. :

1. L.D.White - Public Administration consist of all those operations having for their purpose the

fulfillment or enforcement of public policy.

2. Woodrow Wilson - Public Administration is detailed and systematic application of law.

3. Marshall Dimock - It is the fulfillment or enforcement of public policy as declared by the

competent authorities. It is law in action. It is the executive side of the government.

4.Percy McQueen- Public Administration is administration related to the operations of

Government whether central or local.

Simon- By public administration is meant, in common usage, the activities of the executive
branches of the national, state and local government.

Nature: There are two broad views of Public Administration: There are two broad views of

1. Integral View 2. Managerial View

1. Integral View

According to this view, public administration is sum total of all the activities undertaken in
pursuit of and in fulfillment of public policy. These activities include not only managerial and
technical but also manual and clerical. Thus the activities of all persons from top to bottom
constitute although they are of varying significance to running of administrative machinery. L D.
White shares this view. According to him, Public Administration “consists of all those operations
having for their purpose the fulfillment or enforcement of public policy.

2. Managerial View

According to this view, the work of only those persons who are engaged in the performance of
managerial functions in an organization constitute administration. It is these persons who
shoulder the responsibility of keeping the enterprise on keel and to run it most efficiently. Their
job is to plan, programme and organize all the activities in an organist ion so as to achieve the
desired ends. Simon Smithburg, Thompson and Luther Gullick subscribe to this view of
administration.
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Luther Gullick says, ‘Administration has to do with getting things done; with accomplishment of
defined objectives’.

Luther Gullick defines these techniques by the letters of the word: POSDCORB which means
Planning, Organization, Staffing, Direction, Co-ordinating, reporting and Budgeting.

POSDCORB View

There is third view also that used Administration in a narrow sense to refer to the patterns of
behavior common to most of the organizations. This term is coined by Luther Gullick and is
known as the POSDCORB view.

POSDCoRB View

1. Planning

It means the working out the blueprint of the things to be done and methods to be adopted.

2. Organization

It means building the structure of authority through which the work is to be done into well-
defined sub-divisions.

3. Staffing

It means appointing suitable persons to various posts.

4. Directing

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It means making decisions and issuing orders to the staff.

5. Co- ordinating

It means to inter-relate various parts of work, eliminating conflicts and overlapping.

6. Reporting

It means keeping superior and subordinates aware of the relevant information of what is going
on in an organization.

7. Budgeting

It means financial administration. Neither of the view can be rejected as incorrect because exact
meaning of each view depends upon the context and situation in which the administration is
used. As a subject, Public Administration examines every aspect of government efforts to
discharge the laws ad to give effect to public policy.

Criticisms As early as 1938, literature began appearing in the field of Public

Administration challenging the validity of POSDCORB and the concept that there could even be
a rigid set of principles in administration. In 1946 and 1947, prominent Public
Administration scholars such as Robert Dahl, Dwight Waldo, and Herbert A. Simon released
articles and books criticizing POSDCORB and the principles notion.

Simon's article Proverbs of Administration challenges the POSDCORB principles by stating

"For almost every principle one can find an equally plausible and acceptable contradictory
principle." Among other criticisms, Simon states that the POSDCORB principles are an
oversimplification of administration.

Simon's criticisms largely center on span of control and unity of command, stating that
sometimes it is necessary for a subordinate to receive guidance or directives from more than one
source, as well as Gulick's division of labor concepts. Other criticisms of Simon involved that
there was a lack of evidence for the POSDCORB principles. Subsequently, POSDCORB faced a
lot of criticisms concerning the constrictive nature of it. Many argue that organizations both
private and governmental are full of variety and differences and cannot be controlled through a
fixed set of principles.

Characteristics of Public Administration

The more important characteristics of Public Administration may be mentioned under the
following headings, of which some are not necessarily exclusive to public field and others may
be present only under conditions of administrative efficiency:

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 Large-scale
Organization
Public
Information Monopoly

Public Characteristics Consciousness of

Responsibility Community service

Consistency
Anonymity of Treatment

1. Monopoly

Monopoly conditions are usual in the government sphere. From this characteristic springs many
of the features of public Administration which arise from the absence of the normal process of
competition.

2. Consciousness of Community service

Community service is an essential virtue of the public official who, in carrying on the public
business, is not concerned to derive financial profit or other direct advantages from his labors.

3. Consistency of Treatment

Consistency of treatment must be the watch word of the public official who is duty bound to
meet out equal treatment to the individual citizen under the law. Unlike the businessman he
cannot please himself as to whom particular benefits should be given.

4. Anonymity

Anonymity must be preserved by the official in carrying out the public business. The official acts
not in his personal but as an agent of authority and in virtue of the post he is holding.

5. Public Responsibility

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Public responsibility must be ensured by special means so that the official’s actions may be
publicly questioned and any deviations from the correct path put right.

6. Public Information

Public information from the activities of the administration must be readily available to enable
citizen to exercise their right under public responsibility. This means that special informational
methods must be devised and that secrecy in operation is only tolerable when it is definitely in
the public interest. Public Administration is everybody’s business.

7. Large-scale Organization

Large-scale organization is fairly general characteristic of Public Administration, and from this
many of the present day problems of the subject take their shape. This is by no means an
essential characteristic, however since small governmental bodies. Continue to exist and large-
scale organization is an increasing characteristic of most other fields of activity.

Scope

There are two views of Public Administration as far as its scope is concerned. The first view is
concerned with the executive branch only and the other view covers all the three branches of the
government viz. legislative, executive and judicial. The scope of Public Administration is
concerned with all the three branches of the government but widely accepted view connects
Public Administration to the executive branch only.

According to Pfeiffer Public Administration is concerned with 'what' and 'how' of the
government5 “‘What’ is technical knowledge of the field which enables administrator to perform
his task. 'How' is the technique of management. Apart from POSDCORB view, Public
Administration is a complex affair covering all the three branches of the government. Public
Administration is mainly concerned with the people of whom it is composed. It is concerned
with government departments, agencies, branches, and units and also concerned with legal
procedures like Constitution, statutes, conferences, memorandums and reports. It IS concerned
with legislative and public relations, programme objectives, pressure groups, public support and
social ends. It IS also related with citizens, structure of government and society, economy and
human factor in administration, techniques, and values, stages of national development and
levels of operation.

Importance

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1. A Government in Action

Public Administration in a modern state is a government in action. The activities of government

are almost invariably important and we look to the state and therefore, to Public Administration
for their accomplishments. Today government has ceased to be merely the keeper of the peace,
the arbiter of disputes and the provider of common and mundane service.

2. The stabilizing role of Public Administration in Society

Professor Paul Pigors of the Massachusetts institute of technology feels that a primary function
of Public Administrative function insures the continuance of the existing order with a minimum
of effort and risk. Its fundamental aim is to “carry on” rather than to venture along new and
untried paths. Administrators are therefore the stabilizers of society and the guardian of tradition.

3. The Role of Public Administration in Social Change

Public Administration should be to facilitate social change, or paradoxical as it may seem, to

assure social stability for facilitating social change Public Administration is an integral part of
the development process and has a significant role to play in the gigantic task of national
development and social change.

4. Public Administration as a mechanism for promoting culture of the society

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Public Administration has very important place not only as an instrument of governance but also
and promoting the culture of the society. The ideals and values of a state may be very high, but
the impact of these values upon the life of the people could be gauged only by the way the values
are put into actual practice. Thus, Public Administration becomes a vital social process charged
with the implementation of great objectives and values. It is part of the social and cultural life of
the people and is thus a permanent force in determining the character and activities of a nation.
That is why Waldo calls it a “part of the cultural complex which is not only acted upon but
which also acts.”

5. Public Administration as the key to modern society

According to Charles A. Beard the modern society is a Great Society. It consists of many
different groups woven together in a complicated process of production. Every enterprise in the
Great Society, as well as the Great Society itself, rests upon administration. The state in the
Great Society, like The private corporation, also rests upon administration. So whatever may be
the future, the science of administration will be an essential instrument of welfare. Speaking in
1937 on the specialized subject of the measurable ‘Work Unit’ in administration. Beard asserted
“There is no subject more important- from its minute ramifications of unit costs and accounts to
the top structure of the overhead- than this subject of administration.’’

6. Public Administration a fourth branch of government

Until the 19thcentury when functions of the state were mostly of a regulatory nature, Public
Administration was not so important in the life of the individuals. Then it acted more as an
instrument of coercion and restraint rather than of service or help. With increasing social
complexity and state’s increasing concern for social regulation radical change has taken place in
the nature and volume of state functions.

7. Increasing role of Public Administration in policy making

Public Administration has touched new heights in modern democracies. Emergence of the
welfare state has added new dimensions to the role of Public Administration. The nature of the
role of public bureaucracy in policy making is thus, changing gradually. The concept of
neutrality of civil servant has also lost significance.

Public Administration plays its role in policy making in various ways. It helps the executive in
identifying major policy areas, preparing major policy proposals, analyzing various alternatives
and solutions, dividing the major polices major policy into sub-policy, determining programmes
of action and suggesting modifications in the existing policy on the basis of its experience on the
implementation front.

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8. Public Administration- as an agency for development

Development is the center of politics of the so called third world countries and governments play
a key role in national development. Public Administration is considered an important mechanism
in this development task by formulating, organizing and implementing large-scale action
programmes.

9. An Instrument for providing services

Public Administration is mainly concerned with the performance of various activities performed
by government in the public interest. Felix A. nigro aptly remarks, “The real core of
administration is the basic service which is performed for the public.”

Elements of public Administration

Public Administration compromises of the following-

Elements

1. Organization

This involves the Structuring of individuals and functions in to productive relationship. It

represents the Static part of the administration. It is called as the anatomy of public
administration.

2. Management of Personnel

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This is concerned with the direction of individuals and functions to achieve the predetermined
ends. It represents the dynamic aspect of Administration and it may be called the Physiology of
administration.

3. Method and Procedure

This represents the technique of administrating, the process of working, and the law of
administration. Material and supply- This includes the tools with whose help the administrative
Work is carried on.

4. Public Finance

This is the material without which Personnel cannot be employed and work cannot be performed.
This is the chief determining factor in public Administration, in fact, in the whole government, as
the efficiency and the prestige of the administration depends upon it.

5. Administrative Accountability

This is the accountability of the administration both in terms of internal Control as well as
external responsibility to the judiciary, the legislative and the People.

PUBLIC ADMINISTRATION IN DEVELOPED AND DEVELOPING COUNTRIES

1. It has a limited qualitative role in developed countries where most of the organizations are
privately managed and because of high levels of literacy.

2. In developing countries where one has to start from scratch, it is quantitative and plays
unlimited role.

3. In developed countries, the trend is more towards privatization because their services are
considered more efficient. But in developing countries, still the government jobs are considered
prestigious hence the importance of public administration in developing countries.

4. In developing countries, public administration is inefficient, corrupt and slow moving

favoritism and nepotism rule and extravagance is there.

PRIVATE AND PUBLIC ADMINISTRATION

Thinkers like Henry Fayal6. Mary P. Fallet, L.Urwck did not make any distinction between the
private public Administrations. They support their view by saying that POSDCoRB activities are
universal in character. The difference is only of a degree and not of a kind. Various features of

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private administration influence public administration thereby giving rise to the concept of public
cooperation, which combines the features of the above two. Not only is this but the personnel
also interchanged between the two. Administrative staff College in Hyderabad imparts training
to personnel drawn from private enterprises, as modern day activities are common and require
coordination and cooperation between the two.

Similarities between Public Administration And Private Administration

The following are similarities between public and private administration:

1. Skills

There are many skills techniques and procedures which are common to both, public as well as
private Administration. According, Statistics. Office management and procedures, Purchases,
Disposal and Stocking and many other activities are common to both Public and Private
Administration.

2. Influence each-ot

In the recent times business practice and standards have exercised a profound influence upon
public Administration, Specially, in matters like office management and running of the
commercial enterprises. The whole idea of the public corporations and companies is to import
into public Administration the organization and management of private Administration

3. Administrative set-up

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There is a certain kind of hierarchy and Administrative set-up both in public and private sectors.
Both have some kind of organizational structure, higher and lower status employees and both
have clear demarcation of work, duties and responsibilities. In both the cases we find that there
are people who are responsible for taking policy decision while others are there to implement
them.

4. Research and Improvement

Both public and private enterprise feel that there is always sufficient scope for improvement.
None of them can claim perfection both in equality and quantity of work done by them. That
perhaps is the reason that research work and investigations are always being carried on both the
branches of administration to improve upon procedure and techniques?

5. Public relations

Both the public and private sectors believe that there should be maximum contact with the
masses. If that contact is lost, administration is bound to be a failure as it shall not come to know
about the needs and necessity of the people whom they are required to serve.

Q.4.What is the difference between Public and Private Administration? Discuss in detail.

Ans-The following are the differences between Public Administration and Private
Administration:

1. Prestige

Public Administration enjoys high prestige and social status as compared to Private
Administration especially in the third world countries. This is due to the sovereign power vested
the government machinery. Beside this, Public Administration gets more opportunities for
rendering service to the people than the later. Hence, it commands more respect than the Private
Administration.

2. Political direction

Unlike Private Administration, Public Administration is subjected to political direction in most

policy matters It is the minister who lays down broad policy outlines, under which the bureaucrat
has to implement the policy. The ends it(private) pursues are of its own device. Its objectives
generally do not depend upon political decisions. The administrator under Public Administration
has carry on the orders which he gets from the political executive with little of his own.

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3. Profit motive

Public Administration is service oriented and profit making is not its goal. A businessman will
never undertake a venture which is not likely to yield any profit to him. In Public Administration
there is no correlation between income and expenditure, since most government departments, are
spending department and even in the so called revenue producing departments, the primary
motive is always public service. Public utility services of the government of India often run at a
loss, yet the government is duty bound to spend on them.

4. Uniformity of treatment

Public Administration, according to Josiah Stamp, is subject to the principles of uniformity. It is

generally consistent in procedure and uniform in dealings with the public/ It is not expected to
show discriminatory attitude towards certain sections of people, as is the case in Private
Administration need not worry much about uniformity in treatment. Business Administration
does believe in discriminatory treatment towards its regular customers.

5. Legal framework and procedure

Public Administration has to operate strictly according to law, rule and regulations. Adherence to
law brings in a degree of rigidity in operation in the public sector. There is always the fear of
audit.

6. Scope of activity

Public Administration is more comprehensive. Particularly in a socialistic society, its jurisdiction

extends to all types of activities pertaining to the individuals. In the modern welfare states also
its jurisdiction is not limited to the extent it used to be in police states of the middle ages.

7. Monopolistic

\Many service rendered by the Public Administration to the society are of a monopolistic
character. No individuals are allowed to run service, which are being handled by the government
itself. This is not the case in private Differences between them occur because public

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administration has to be impartial and remain accountable and answerable to the people in its
activities. According to Paul Appleby, there are three major differences between them:

1. First is breadth of scope whereby government activities are so complex that it needs the
wisdom and understanding of an anthropologist, economist, historian, political scientist, farmer,
laborer merchant, industrialist, banker, politician, philosopher etc.

Other Differences

1. Public administrator works in a restricted atmosphere. His works conforms to laws regulating
his department and operating within the society and the country, policies and instructions of
higher authorities, customs and general public requirements. Public administrator cannot accept
any gift or valuable items from anyone. This is not the case with private administration.

3. Public Administrator's basic motive is community welfare whereas profit motive is the motto
O' private administrator.

4. Public Administrator's task is more pressing and urgent. It is wider in its scope when
compared with private administration. It includes police and fire protection, public works,
education, recreation sanitation, social security, agricultural research and development.

4. Consistency in treatment is the characteristic feature of public administration. There is no

bias, no favoritism, no prejudice in implementing the laws, otherwise it will have to face protest

Administration, there is no such thing with their target area already fixed.

5. Public administrator is anonymous. In fact, Bureaucracy thrives under the cloak of ministerial

Responsibility. Their tenures are fixed and permanent. These conditions are absent in private

Administration.
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6. In public administration, administration and finance are separate entities with legislature
passing the budget and distributing it after the majority vote to the executive wing. In private
administration, there is no such distinction between the issuing and implementing authority.

7. In public administration, competition is not there and monopoly rules in certain services. The

Situation is just reverse in private administration where there is a cutthroat competition.

8. Public administration enjoys greater social prestige because community welfare is their aim,
as compared to its counterpart whose major motive is to gain profit even if it is at the cost of
general health and welfare.

Q.5. State the similarities and the differences between Politics and Public Administration

ANS-POLITICS AND PUBLIC ADMINISTRATION

Earlier writers make a sharp distinction between politics and public administration. Woodrow
Wilson says, "Administration dies outside the proper sphere of politics"7. Politics prescribes
what shall be done and administration carries out these policies economically and efficiently.
Politics is great and universal whereas administration operates at state level and concerns with
small things. Politics is the province of the statesman and administration is sphere of technical
officials. Politics is the study of power, how to get it and preserve it. Administration has power
granted or assigned to him by virtue of his position. Administration at times becomes anti-
establishment also looking down upon the representative and democratic methods as corrupting
influences to be got rid of as soon as possible. This leads to the bureaucratic absolutism. But,
these extreme views have to be avoided and a balanced view should be adopted where each
works under its own sphere without too much interference in another's sphere of work. Last word
should be of a politician in deciding the policy matters but they should also accept their
limitations if the expert's knowledge becomes absolutely necessary, which is the domain of the
administrator.

Pfeiffer enumerates ten differences between the politicians and administrator's which are
as follows:

1. Politicians are amateur and administrators are professionals.

2. Politicians are non-technical and administrators are the technical people.

3. Politicians are partial and administrators are impartial.

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4. Politicians have temporary tenures whereas administrators' tenure is fixed.

5. Politicians have more public contacts whereas administrators have fewer public contacts.

6. Politicians have more legislative contacts as compared to administrators who have fewer
legislative.

7. The task of politicians is more of a policy formulating nature whereas the task of an
administrator is less policy formulating nature.

8. Politicians are more decisive whereas administrators have a more advisory role.

9. Politicians have a more coordinative role as compared to the performance-oriented role of the

Administrators.

10. Politicians are influenced by the technical opinion given by the administrators and
administrators collect these technical data from research and other organizations.

Politicians initiate policies briefly, supervise them, decide larger administrative questions, make

Appointments and enquire about their departments. They may intervene on behalf of the public
grievances. Administrators, on the other hand, must collaborate in formulating policies, offer
their criticism freely, must suggest initiation of certain policies, lay down secondary policies,
must supervise the work of subordinates, must not break any law to please superiors and must
carry out their duties loyally. Public administration is government in action. Woodrow Wilson
first made the distinction between politics and administration in 1887. In his paper "The Study of
Administration", he says that public administration is detailed and systematic execution of public
law. Politics was identified with policy-making, which is a function of the politician. Public
administration deals with its execution.

It is characterized by cool, calculating and rational spirit. This view was supported by Luther
Gulick, Marshall Dimock, Paul Appleby8, Charles Merriam and Herbert Simon. These thinkers
are of the view that because of the increasing workload, more decisions are made outside the
political benches. They also put emphasis on the concept of administrative delegation. In
Western democracies, policy-making institutions are strong enough to keep policy-implementing
institutions out of politics, which is not so in the developing countries where the workload is
more and politicians are illiterate. Moreover, administrator is also a human being and he cannot
remain aloof from the suffering of his countrymen. So he naturally involves himself in policy-
making. In the end of the topic, one can only say that both the politicians and the administrators
cannot be out rightly separated because they are interlinked.

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Conclusion

Obviously, public administration is a very broad and encompassing area of study. Indeed,
drawing a clear map of the area covered by the discipline of public administration is a difficult
task to public administrators and this emerged as a result of the dynamics and complexities of the
discipline.

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 UNIT II

Very short type questions-

Q.1. what is bureaucracy?

Ans- Bureaucracy is the dominant feature in the contemporary world. The French term
'Bureaucracy' was coined by Vincent de Gourney in 1745. It means a government by officials or
desk government. It also means management by bureaus. It can be used in 2 senses:

1. In the very first sense, Bureaucracy can be used as a form of organization based on

(a) The assignment of specified duties to every member;

(b) Regular performance of these duties;

(c) Building of an organization on hierarchical principles;

(d) Reliance on written documents;

(e) Formulation of rules and regulations;

(f) Recruitment and training. Max Weber, Pfeiffer and Gladden support this view.

2. In the second sense, bureaucracy is often termed as an ailment of organization

obstructing good management. It suffers from

(a) A passion for routine;

(b) Sacrifice of flexibility;

(c) Delay in decision-making;

(d) Refusal to embark upon experiment;

(e) It is rigid, mechanical, wooden, inhuman and soulless. This view is supported by Harold
Laski.

Q.2.Relation between bureaucracy and democracy?

Ans- The relationship between bureaucracy and democracy has been supportive and antagonistic
in nature, according to Max Weber. From time immemorial, democratic movements across the
world demanded equality before law and protection against arbitrary excesses of legislature and
executive.

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Recruitment to public services on merit basis led to the growth of bureaucratic powers. Very
often democracy opposed bureaucracy because it leads to the concentration of powers, which is
against the democratic principles. But without bureaucracy, democracy could be plagued by the
spoils system, irregularities and lack of technical efficiency. Marxists hold that transfer of
administrative power to experts and economic relationships, which retard the development,
constitute the basis of bureaucracy and hence it is a definite challenge to democratic principles.
In developing countries, which are to take up the task of a rapid economic development, the
bureaucracies are simply the necessary evils. These bureaucracies even inhibit the growth of
strong political elites. But at the same time, their influence can be curbed by increased literacy,
strong political institutions like Panchayati Raj and strong social elites with links with the
common man.

Q.3.What is technocratic theory of bureaucracy?

Ans- This theory holds that the determining influence belongs to the administration. Power of
technocrats and bureaucrats has grown recently at the expense of elected political bodies. This
poses a risk to democracy. Advice and feedback given by the administration limit and guide the
directives issued by the politicians. Hence, bureaucracy was never under the complete control of
politics. In actuality, both mutually influence each other. When politicians make decisions
bypassing the advice of the bureaucracy, these decisions face open resistance from bureaucracy.

They often delay their implementation. Functions increase and their complexity necessitates the
use of expert knowledge. The technical knowledge as against the lay status of the politicians is
the most important factor in their rise. In order to make decisions, politicians are dependent upon
the information provided by the bureaucratic departments and administrators in their turn define
the options by monopolizing their expertise. Politicians too are not interested in controlling all
matters of the department because most of the policies are beyond their interest and knowledge.

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 LONG TYPE QUESTIONS-

Q.1.Define bureaucracy. Explain the factors for the rise and characteristics of
bureaucracy.

OR

Q.2. 'Bureaucracy is an important component of democracy'. Discuss.

OR

Q.3. what do you understand by the term Bureaucracy? Discuss its role in changing
societies.

ANS- MEANING

Bureaucracy is the dominant feature in the contemporary world. The French term 'Bureaucracy'
was coined by Vincent de Gourney in 1745. It means a government by officials or desk
government. It also means management by bureaus. It can be used in four senses:

1. In the very first sense, Bureaucracy can be used as a form of organization based on

(a) The assignment of specified duties to every member;

(b) Regular performance of these duties;

(c) Building of an organization on hierarchical principles;

(d) Reliance on written documents;

(e) Formulation of rules and regulations;

(f) Recruitment and training. Max Weber, Pfeiffer and Gladden support this view.

2. In the second sense, bureaucracy is often termed as an ailment of organization

obstructing good management. It suffers from

(a) A passion for routine;

(b) Sacrifice of flexibility;

(c) Delay in decision-making;

(d) Refusal to embark upon experiment;

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(e) It is rigid, mechanical, wooden, inhuman and soulless. This view is supported by Harold
Laski.

3. Bureaucracy can be used, in the third sense, as a 'big government', which implies a large
machine to perform its various functions. It gives importance to executive and administrative
part of the government. That is why a modern state is known as the administrative state.

4. Once again, according to Harold Laski, bureaucracy in the fourth sense means the machinery,
which puts obstructions in the way of enjoying the liberties by the ordinary citizens.

A German sociologist, Max Weber defined bureaucracy as a universal social phenomenon and
the means of carrying community action over into rationally ordered societal action. He defines
bureaucratic functions from a functional viewpoint and uses a concept to refer to administrative
organization and rule by officials.

Marshall E. Dimock- Identified bureaucracy with institutions, which overshadow individuals

and simple family relationships.

John Vieg- Defined bureaucracy as a sum total of personnel apparatus and procedures by which

organization manages its work and accomplishes its purposes.

Types of Bureaucracy

Bureaucracy is as old as history. At different points of time in history, the bureaucracy has taken
different shapes and forms based upon socio-economic influences, Broadly, the bureaucracy is
categorized into four types by Mors rein, marx, viz.

1. The Guardian Bureaucracy

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 Plato’s concept of the philosopher king is an example of the guardian bureaucracy. They were
considered the custodians of justice and welfare of the community. This type may be defined as
“a scholastic officialdom trained in right conduct according to the classics.” This type of
bureaucracy regarded itself as custodians of public interest but was independent of and
unresponsive to the public opinion. It was efficient, competent, benevolent, incorruptible and
righteous on the one hand but authoritarian on the other. These guardians were expected to
develop a moral fortitude and they can exert influence upon the exercise of power subject to
righteousness.

2. Caste Bureaucracy

Caste Bureaucracy is generally found in oligarch cal political systems. Under such system only
person belonging to higher castes can become public officials. For example, in ancient India,
only Brahmins and Kshatriyas could become higher officials.

3. Patronage Bureaucracy

This type of bureaucracy is also called. ‘Spoil system.’ Under this system the protégés of the
politicians are nominated to the civil service. The public jobs are distributed as personal or
political favors to their supporters. The U.S.A. has been the traditional home of the spoils
system, though patronage had sway even in the U.K. till the middle of the 19th century. Under the
spoils system in the U.S.A. each administration had a free hand to hire and fire virtually all
federal workers: “To the victor, the spoils system had a great corrupting influence on the socio-
economic life of the country. IT was condemned as an anachronism for its lack of competence,
for its careless discipline and its concealed greediness.

4. Merit Bureaucracy

The object of merit bureaucracy is to recruit the best man for the public service, his merit being
judged by objective standers. In this bureaucracy recruitment is based on qualifications and
governed by competitive examinations. In modern times, merit bureaucracy puts strong emphasis
on political control over the administrative system which was not the case in other forms of
bureaucracy.

Causes for the Rise of Bureaucracy

There are various causes responsible for the rise of bureaucracy, which are as follows:

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1. Centralization

Emergence of nation state systems in Europe and the system of Prefects

Controlled from the above in France during Napoleon era gave rise to bureaucracy to carry out

Various functions of technical and social nature.

2. Rationalization

Centralization leads to rationalization, which means that it became more Differentiated,

methodical, coherent and effective in 19th century Europe in the execution of its tasks.

Officials were paid regular salaries and they became public servants. Increase in government
functions and welfare state led to the rise in bureaucratic activities.

4. Economic and social crisis

Second World War and the economic depression that followed from 1873-1929 led to the
upheavals giving rise to the greater governmental and bureaucratic intervention.

5. Economic Development

Advent and maturation of modern capitalism and industrial revolution and evolution of the
concept of taxation led to the rapid economic growth, which requires specialization, which can
be provided by the administrators.

6. Advent of Democracy

It led to the demand in the increase of government services by the

Development of the nation state which in turn, led to the rise in governmental activities to
mobilize, more of its citizens' commitment than any prior political unit was capable of doing.
Various welfare activities make people more willing to accept the government bureaucratic
authority.

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7. In India, various factors led to bureaucracy's rise like rapid increase in population, urge for
social security, industrialization, urbanization, economic and social development and planning,

Nationalization of industrial and financial institutions to promote socialistic patterns of society

and other political factors.

Characteristics of Bureaucracy

Division of Labor

Neutrality Hierarchy
Characteristics
of Bureaucracy
Rationality Written Documents

Rules

Impersonality Salaries

1. Division of Labour

The work of the department or organization is divided among the employees in such a way that
each employee has only a certain part of the work to perform. In this way, the employee repeat-
edly performs certain job and becomes efficient at it.

2. Hierarchy

In every bureaucracy, there is a hierarchy or chain of command, where officials at lower levels
are supervised by those at higher levels. The commands or orders of superiors have to be
followed by subordinates.

3. Written Documents

The management of the organization is based upon written documents or files. Since nothing
concerning the office is private, every transaction, decision, and order is recorded which help in
efficient decision making in future.

4. Rules
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Management follows a set of rules which are made known to all employees of the organization.
Rules are equally applicable to everyone and they prevent any type of arbitrariness.

5. Salaries

Salaries are fixed for employees and there is a provision for pension, Provident Fund to take care
of the employee when he retires from service.

6. Impersonality

The officials are expected to carry out their duties without allowing themselves to be influenced
by their personal likes and dislikes. The employee must treat all clients equally.

7. Rationality

Bureaucracy represents a rational form of organization. Decisions are taken on strict evidence
and avoid any type of irrationality.

8. Neutrality

Bureaucracy serves all political parties in power without being biased. It has only committed to
work and duty and not to any Party ideology.

Defects of Bureaucracy

1. Rigidity

Rules and regulations in a bureaucracy are often rigid and inflexible. Rigid compliance with
rules and regulations discourages initiative and creativity. It may also provide the cover to avoid
responsibility for failures.

2. Goal Displacement

Rules framed to achieve organizational objectives at each level become an end to themselves.
When individuals at lower levels pursue personal objectives, the overall objectives of the
organization may be neglected.

3. Impersonality

A bureaucratic organization stresses a mechanical way of doing things. Organizational rules and
regulations are given priority over an individual’s needs and emotions.

4. Compartmentalization of Activities

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Jobs ore divided into categories, which restrict people from performing tasks that they are
capable of performing. It also encourages preservation of jobs even when they become
redundant.

5. Paperwork

Bureaucracy involves excessive paperwork as every decision must be put into writing. All
documents have to be maintained in their draft and original forms. This leads to great wastage of
time, stationery and space.

6. Empire Building

People in bureaucracy tend to use their positions and resources to perpetuate self interests. Every
superior tries to increase the number of his subordinates as if this number is considered a symbol
of power and prestige.

7. Red Tape

Bureaucratic procedures involve inordinate delays and frustration in the performance of tasks.

Role of Bureaucracy in India

In The words of DR. Ambedkar “the dual polity is followed by a dual service” in all federations.
Ambedkar emphasized that the Indian federation though a dual policy will have dual service but
with one exception. The constitution provides that without depriving the states of their right to
form their own civil services, there shall be an All India Service, recruited on an All India basis
with common qualifications, uniform scale or pay etc.” Thus the Civil service in India is divided
into two categories. ALL India Services and the State Civil Service. Beside Art 312 create a
special category- which is common to both the union and the State. Two services of this type are

1. The Indian Administrative service.

2. The Indian police Service.

The All India Services are designed to give grater cohesion to the federal structure and to
conduce to greater efficiency in the administration of the Union and States. Such an integrated
Civil Service is a unique feature of the Indian Political system. Given the diversity and
divisiveness inherent in the Indian political system, the integrated civil service was an
unavoidable necessity. The members of the civil service are recruited on merit on the basis of
competitive examinations conducted by the Union Public Service commission in case of All
India Service State public Service Commission in case of members of the service hold office
during the pleasure of the President in case of All India Services and of the state governor in case

27
of state services (Art310). But the pleasure of the President or the Governor can be arbitrary.
Such Pleasures are exercised subject to legal limitations stipulated by the Art311 of the
Constitution. As has already been pointed out the bureaucracy in India, both at the union and
state level constitutes the backbone of the administration. In Indian administrative hierarchy, the
President at the union and Governor at the State level is the constitutional head. The council of
ministers constitutes the political executive. But the real, permanent, experienced and expert
executive is the Civil Service or the bureaucracy.

Implementation of Policy

Formulation of Policy
Functions
Administrative Adjudication

Delegated Legislation

1. Implementation of Policy

It is the most important and fundamental function of civil servants. They execute laws and
policies to attain the goals of welfare state that is social equity economic development and so on.

2. Formulation of Policy

Formulation of Policy is the function of political executive. But civil servants have also come to
play role in it. They aid and advise the ministers in policy making. Political executives being
amateurs cannot understand the technical complexities of policies and hence depend upon the
expert advice of professional civil servants.

3. Delegated Legislation

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This is a quasi legislative function performed by the civil service. Due to lack of time, pressure
of work and increased complexities of legislation the legislative makes laws in skeleton form and
delegate’s power to the executive to fill in the details.

Thus, civil servants make the sub-laws, rules and regulations, but within the limits of the parent
law enacted by the legislature. Delegated legislation is also known as executive legislation or
subordinate legislation.

4. Administrative Adjudication

This is a queasy judicial function performed by the civil service. The civil servants settle
disputes between the citizens and the state. For this purpose, the Administrative Tribunals with
judges are established. The Income Tax Appellate Tribunal, Industrial Tribunals, Rent Tribunals
and Railway Rates Tribunals are some of the examples of such tribunals in India. These tribunals
function outside the ordinary court system. In addition to the above, the civil service also
performs the following functions—Administrative planning, Administration of public
enterprises a Assisting the ministers in fulfilling their responsibilities towards the parliament and
its committees, handling financial operations of the stat reforming and improving administration
through O and M and public relations.

Q.4. Explain the different theories of Bureaucracy.

OR

Q.5. Critically analyzes the Marxist and Pluralist Theories of Bureaucracy.

OR

Q.6. Discuss Max Weber's and Pluralist theories of Bureaucracy.

OR

29
Q.7. Explain the Marxist and Technocratic theories (view) of Bureaucracy.

Ans- MARXIST THEORY OF BUREAUCRACY

Saint Simon's Views

Before Karl Marx, Saint Simon viewed bureaucracy as comprised of those officials who
governed in their own interests rather than in the interest of the governed. They were paid hefty
salaries and if they are not paid heavily, they take forcefully by appropriating the officials'
resources for personal use. So, in short, they are nothing but thieves.

Karl Marx's Views

Marx is of the view that bureaucracy is tied to a capitalist state. It is a bourgeoisie phenomenon.
Bureaucratic society is a closed society serving its own interest. Bureaucracy has the task of
concealing the actual power relationships and to function as the general interest smoke screen
between the exploiters and the exploited. It contributes to the alienation of the people. It is so
because although the bureaucracy helps in regulating the lives of the people yet it is beyond their
control. In fact, bureaucracy depends upon the existing divisions between the society and also on
the separation between civil society and the state. It is the servant of the ruling classes and
shrouds all its actions in secrecy. But Marx praised it in its role of centralizing nations. In reality,
Marx was in favor of smashing the institution of bureaucracy itself by the proletariats after the
revolution because after the Communist revolution, the state will end and with the end of the
state comes a reduction in the number of the functions the of the bureaucracy used to perform.

Lenin's View

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Bureaucracy and the standing army are the two parasites connected with the bourgeoisie society.
Bureaucracy is organically tied to the capitalist state and has no independent existence. Since it
cannot be neutral in its dealings, it is unfit for proletariat state.

Lenin's main objections pertain to the fat salaries given to the bureaucrats, their unaccountability
and their superior status above the people. So, after winning power, proletariat must smash the
institution and replace it with the new one where the bureaucrats will be elected and also recalled
any time if they failed to perform their duties and their pay package should not be more than that
of an ordinary workman. Bureaucrats should be under the supervision and the control of all. But
Lenin was well aware of the fact that every branch of government needed such an apparatus. He
is of Ile view that bureaucratic structure cannot be eliminated unless the people are mobilized to
participate in the administration of the state.

Leon Trotsky's View

According to Trotsky also, bureaucracy serves the interests of the bourgeoisie class. Its existence
characterizes every class regime. It is a social phenomenon and a definite system of
administration of people and things. In the communist society, bureaucracy's exploitative
character loses where it occupies itself with the administration of the things and not
administration of the people. He wants to continue bureaucracy in the transition period also to
regulate the distribution of the scarce resources and to stimulate maximum production. Wage
incentives must be given to them so as to encourage the bureaucrats. Trotsky did not regard
bureaucracy as an independent class as it had no independent role in the production system and
no property in the means of production. Moreover, a bureaucrat cannot transfer his right to
exploitation to his heirs.

MAX WEBER'S THEORY OF BUREAUCRACY

Max Weber was a German sociologist. He was the first thinker who regards bureaucratization as
an inevitable process for the rational attainment of goals in modern industrial society with its
growing complexities and expanding structure. Large-scale organizations along with impersonal
relationships and specialization of functions can cope with complex needs of an expansive
society. Large-scale organizations need and compete for resources, manpower and support for
the implementation of their goals. All this requires technical expertise and coordinative skills.
31
In large organizations, the members perform different functions towards a common goal. So their
duties and the functions have to be clearly defined and well regulated which requires the
formulation of formal rules and hierarchical structure for their enforcement.

This process of bureaucratization will have these characteristics

1. Fixed area of official jurisdiction regulated by laws and regulations; a clearly defined set of
powers and a division between private and office affairs; ierarchy of authority for the control and
supervision;

2. Administration based on written documents and conducted according to procedures which

require special training;

3. Recruitment on merit basis;

4. Officials cannot appropriate either the post or the resources which go along with it;

5. Civil service is a career where promotion is by seniority an merit and where fixed salaries are
given. Its members enjoy maximum vocational security. Since members work towards the same
goals, they tend to develop among them a feeling of homogeneity, which arrests intra-group
conflict and aggression.

Criticism of the Theory

R. K. Merton called it the "dysfunction of bureaucracy". In order to follow rules, the non-
compliance of which can affect their career prospects, the bureaucrats set aside the original
goals, which led to the concept of red tapism. Since they share common interests and sense of
homogeneity, they may develop a sense of self-pride, no matter whether thereby they affect the
interests of higher authority or of their clientele in protecting their interests. They become rule
adhering machines of the rigid impersonal order and make stereotyped behaviour not suitable for
32
individual problems of the public, which needs personal touches. Power and authority makes a
bureaucrat to think as overpowered and hence a snob. The only way out of this mess is to evolve
a responsive and a responsible bureaucracy and to grow a proper climate of values and force
them to work strictly in the context of this climate.

PLURALIST THEORY OF BUREAUCRACY

Pluralist theory originated in US in 1950s and 1960s. It views state and bureaucracy as disjointed
in structure. Both of them engaged in competition for power. Part of the pluralist structure is
based on the system of 'checks and balances. Actually, it is a two-way process. Bureaucrats are
unable to rule alone without anybody's help and not even a single branch of government can
work without them because of complexity of contemporary functions. Sometimes, they also
adopt obstructing attitude preventing others from achieving their goals and not achieving theirs
either. Power to bureaucracy does not flow exclusively from the top. It flows from structure of
interests that enclose administration. Thus, there is no single source of power in administration.
The bureaucrats have to generate a consensus for their policies.

In this way, they build and maintain political support for their programmes. Bureaucracy, thus,
got more influenced by private interests. Legislature, clientele and public, interest groups and
media are important because their support or its lack can affect bureaucratic agency. The
complexity of state structure and interplay of various internal factions compel these elements to
assert their influence. So bureaucracy is not a monolithic hierarchy. It is a highly fragmented set
of agencies that are partly interdependent but at the same time, are also incompetent for their
survival and primacy.

Concept of Government Overload

Daniel Bells, Miechael Crozier and S.P. Huntington propounded the concept. The concept
describes that the pressure on the government is increasing on account of the vast functions and
ever increasing demands, which is described by Bell and Crosier as the 'revolution of
entitlements'.

But the capacity of the government to exercise its increasing responsibilities has declined. The
overload of demand has therefore, been coupled with a fiscal overload of the system. In decision-
33
making, a government cannot act in a partisan manner. So, bureaucracy has become a forum for
the representation of various popular interests. The pressures of these interests tame the power of
bureaucracy and minimize its threat. It is a two-way process whereby no single interest groups
can gain ascendancy through it and bureaucracy, on the other hand, cannot gain ascendancy over
elected institutions.

Merits

1. The theory brings interest groups into picture.

2. It emphasizes that even the bureaucrats can also get boxed in between divergent and intricately
related interests and pressures, which they must placate.

3. It clarifies internal complexities between modern state and bureaucracy.

4. The theory represents the realistic image of bureaucracy. It is more down to earth. It
convinced us of the fact that bureaucracy is not as rational and systematic as it was thought out to
be according to Weber's model.

Demerits

1. The theory is limited to the American political system.

2. The interest groups do not always represent all parts of the population. Hence, it is unfair to
bank upon them.

34
3. Bureaucracy, most of the times, ignores less powerful and weak groups and puts more
emphasis on upper and upper middle class groups.

4. Finally, it overstates the decline of modern state and bureaucracy, which is still going strong.

TECHNOCRATIC THEORY OF BUREAUCRACY

This theory holds that the determining influence belongs to the administration. Power of
technocrats and bureaucrats has grown recently at the expense of elected political bodies. This
poses a risk to democracy. Advice and feedback given by the administration limit and guide the
directives issued by the politicians. Hence, bureaucracy was never under the complete control of
politics. In actuality, both mutually influence each other. When politicians make decisions
bypassing the advice of the bureaucracy, these decisions face open resistance from bureaucracy.

They often delay their implementation. Functions increase and their complexity necessitates the
use of expert knowledge. The technical knowledge as against the lay status of the politicians is
the most important factor in their rise. In order to make decisions, politicians are dependent upon
the information provided by the bureaucratic departments and administrators in their turn define
the options by monopolizing their expertise. Politicians too are not interested in controlling all
matters of the department because most of the policies are beyond their interest and knowledge.

Powers of parliament declined due to inadequate time, complexities and ignorance of the
politicians. Delegated legislation and discretionary powers have increased the power of the
bureaucrats tremendously. Ministers come and go. But bureaucrats are the only ones who can
draw up and follow through the long-term plans. Although the secrecy maintained by
bureaucracy in policy-formulation is a threat to democracy yet modern society cannot rid itself of
it. The question is not how to kill it but how to tame it.

Demerits

1. It applies to western societies more than the traditional ones.

2. This theory disregarded bureaucracy's positive contribution to democracy.

35
3. In reality, it is not the experts but generalists who hold the highest positions in the political
process.

Q.8. Explain the relation between Bureaucracy and Democracy.

Ans-BUREAUCRACY AND DEMOCRACY

The relationship between bureaucracy and democracy has been supportive and antagonistic in
nature, according to Max Weber. From time immemorial, democratic movements across the
world demanded equality before law and protection against arbitrary excesses of legislature and
executive.

Recruitment to public services on merit basis led to the growth of bureaucratic powers. Very
often democracy opposed bureaucracy because it leads to the concentration of powers, which is
against the democratic principles. But without bureaucracy, democracy could be plagued by the
spoils system, irregularities and lack of technical efficiency. Marxists hold that transfer of
administrative power to experts and economic relationships, which retard the development,
constitute the basis of bureaucracy and hence it is a definite challenge to democratic principles.
Dilemma is great in developing countries where people have to choose between centralized and
strong bureaucracies and slow economic development. In developing countries, which are to take
up the task of a rapid economic development, the bureaucracies are simply the necessary evils.
These bureaucracies even inhibit the growth of strong political elites. But at the same time, their
influence can be curbed by increased literacy, strong political institutions like Panchayati Raj
and strong social elites with links with the common man.

Safeguards against Bureaucratic Threat to Democracy

1. Representative Bureaucracy

This type of bureaucracy is common in America. It is more

Representative of American society, more responsive to public needs than their elected Congress
This type of bureaucracy cherishes common values, which are the part of the nation.
36
2. Balanced Bureaucracy

Imbalance occurs due to despotic subservience. Either the bureaucrat is too much the master or
too much the servant of the politicians. A reasonably stable balance 0 power is needed between
them.

3. Participatory Bureaucracy

To ensure political responsiveness and efficiency in public

Bureaucracy, a few things are needed to make bureaucracy a real participatory bureaucracy:

1. Representation.,

2. Participation in decisions concerning work structure, personnel matters etc.

3. To provide citizens with better knowledge.

Etymology is the history and development of Democracy and Bureaucracy as words. Difference
between Democracy vs. Bureaucracy Etymology gives details about how Democracy and
Bureaucracy as phrases or words originated and from which languages. The word origin period
for Democracy is 16th century AD and for Bureaucracy it is 19th century AD. Therefore,
Dictionary definitions and etymology of both the government types give us a complete
comparison of Democracy vs. Bureaucracy definition. Also find out about a brief Democracy vs.
Bureaucracy summary or get to know about all Democracy vs. Bureaucracy Information at once!

Suggestions to Remove the Defects of Bureaucracy

(1) Delegate less

37
 Conservatives and libertarians should be reluctant to delegate power that is likely to be
exercised in a liberal direction. To put it another way, these lawmakers should demand a statute
several degrees to the right of where they think it should be if there is a delegation because the
bureaucracy will move it several degrees to the left.

(2) Pass the REINS Act

The REINS Act would apply to open-ended delegations of power already in place by requiring a
Congressional vote under fast track procedures to approve major agency rules before they
become law. This act would transfer power currently held by bureaucrats back to legislators. Of
course, people on the left realize the constraints imposed by the REINS Act and thus it could not
be enacted until the next era of unified Republican government.

(3) Mandate cost benefit analysis

Cost benefit analysis could be required by law, unless specifically exempted in a statute. This
tool constrains agencies, by requiring bureaucrats to show that regulations have net benefits. The
Office of Information and Regulatory Affairs (OIRA) at OMB reviews all cost benefit analyses,
which provides a check on the parochial regulatory expansion of agencies.

(4) Subject cost benefit analysis to judicial review

This requirement would increase the seriousness with which the exercise is taken and further
weaken the power of bureaucrats. Article III judges are not perfect, but they are far less
ideologically skewed than bureaucrats, and the judges have no pecuniary or status incentives to
expand the agencies’ work.

(5) Bring independent agencies within Presidential control

38
As I stated in the previous post, Presidents have modest powers to recalibrate the bureaucracy,
but these powers are even weaker at independent agencies which are insulated from their control.

(6) Privatize where possible

Privatization has often been sold as way of gaining efficiency in the bureaucracy. But it can also
bring in personnel who skew less ideologically to the left.

These ideas that could have been implemented many years ago but could still be accomplished.
In my next post, I will describe some ideas to circumscribe the bureaucracy that are now
available because of modern technology.

39
 UNIT – III

Very short type questions-

Q.1. what is local government?

Ans- According to v.v. Rao, local government is "that part of the government which deals
mainly with local affairs, administered by authorities subordinate to the State Government but
elected independently of the state authority by the qualified residents".

John J. Clarke maintains that a "Local government appears to be that part of the government of a
nation or state which deals mainly with such matters as concern the inhabitants of particular
district or place".

Q.2.Panchayati raj system

Ans-it generally refers to the system of local self govt in india introduced by a constitutional
amendment in 1992,although it is based upon the traditional panchayat system of south asia.it is
meant to ensure that local administrative affairs,particularly in rural areas,should be resolved by
local govt units constituted with elected members.

This system has a three tier structure:

Gram panchayat

Mandal panchayat

Zila panchayat.

balwant rai Mehta committee set the stages for the launching of panchayati raj institutions
throughout the country.

Long type questions-

Q.1. what do you understand by the term 'Local Self Govt. '? What are the problems faced
by the local self govt. institutions at the urban and the local levels?

ANS-MEANING & CHARACTERISTICS OF LOCAL GOVERNMENT-

The jurisdiction of a local government is limited to a specific area, a village or a city, and its
functions relate to the provision of civic amenities to the population living within that area. Thus
40
John J. Clarke maintains that a "Local government appears to be that part of the government of a
nation or state which deals mainly with such matters as concern the inhabitants of particular
district or place".

According to v.v. Rao, local government is "that part of the government which deals mainly with
local affairs, administered by authorities subordinate to the State Government but elected
independently of the state authority by the qualified residents".

Characteristics

Statutory Status Local Area Local Accountability

Local Finances

Autonomous Status The local people

Civic Services for

General Purpose

1. Local Area

In the case of a local government that geographical area by its very nature has to be small or
local, Le. a village, a town or a city, in contrast to the whole country or state.

But it is difficult to precisely fix the size of the territory or population of a local government. The
population may not be more than a few hundred if it is a village. But it may run into several
millions if the local government is operating in a modern metropolitan city like Greater London,
Delhi, Kolkata, Mumbai or Paris.

2. Statutory Status

41
 The local government enjoys statutory status, Le. it is created by a specific law or statute. The
main thing is that the local government is created by a law of the Legislature from which it
derives its status and powers. Its status or powers do not rest on the discretion or sweet will of
the Central or State Government although the latter exercises some control over it. In India, after
the passage of 73rd and 74th amendments of the Constitution, the local governments have been
granted constitutional status. This is an important feature of the local governments because many
of their other aspects directly flow from it.

3. Autonomous Status

Autonomy of the local government is the natural consequence of their

Statutory status. Since the local governments are created by an Act of the Legislature or
Parliament, that Act lays down their powers, functions and relationship with Central or State
Government. That means that the local governments are free or autonomous in exercising the
powers and performing their functions as are envisaged in the statute. This autonomy cannot be
curtailed unless and until the statute is amended by the legislature.

Local Participation

It with the functioning of the local government. Participation of the local people in decision-
making and administration of the local authority is important because that is what gives it the
character of self-government. It is called democracy at the grass-root level. In democratic
countries, participation of the people is ensured by making the local bodies elected or
representative in character. In countries which are not democratic, participation of the people is
provided through nomination or indirect election.

5. Local Accountability

Sine local government provides services of local nature called civic amenities like sanitation,
education, transport, etc. to the people of the area, it is appropriate that it is accountable to the
42
local people. The control of the local people will compel it to serve them better. Accountability is
better ensured by making the local bodies elective institutions. If they do not function efficiently,
they may be criticized by the people or defeated by them in the next elections. Absence of local
accountability will make them indifferent to the needs of the local people.

6. Local Finances

Local governments have two main sources of finances –

(1) Grants-in-aid given by the Central or State Government,

(2) Taxes and levies imposed by the local governments themselves. Local governments are
generally not self-sufficient in their financial resources. Therefore they are helped by the grants-
in-aid provided by the Central or State Government.

But dependence only on grants-in-aid will necessarily entail greater interference by the latter in
the working of the local government. Therefore, to make the autonomy of the local government
real, it must be vested with the powers to raise revenues locally through taxation. For this, local
government is provided with independent sources of revenue like taxes on local properties, fees
on local markets, fairs and entertainments, etc. by the statute under which it is created.

7. Civic Services for the local people

The main objective of the local government is to provide certain civic amenities to the people of
its area at their door-step. The provision of these services ensures healthy living of local
community. Sanitation, street lighting, sewerage disposal, registration of births and deaths,
maintenance of parks, libraries, burial or cremation grounds, water supply, health care, primary
education etc. are the functions which make life of the people of the area healthy and
comfortable.

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8. General Purpose

Local government is a general-purpose authority, in contrast to a single purpose body. In other

words, it is multi-purpose performing several or variety of functions like health care, primary
education, sanitation, water supply, regulation of local fairs and markets, maintenance of parks,
libraries, etc. local transport and so on and so forth. Recent trends, however, indicate that single
purpose authorities also have been set up at the local level to perform specific functions.

THE IMPORTANCE AND ADVANTAGES OF LOCAL GOVERNMENT

Jawaharlal Nehru emphasized the importance of local government when he said that "local self-
government is and must be the basis of any true system of democracy. Democracy at the top may
not be a success unless you build on this foundation from below".

1. Grass-root democracy

Local government provides scope for democracy at the grass-root level. If direct democracy can
still be practicable, it is only at this level, otherwise democracy at the state or national level has
become only indirect or representative type.

2. Serves as a training school

Local government is an excellent ground for creating and training future leaders. The
participation of people at the local level in the management of their own affairs gives them
necessary experience to handle bigger affairs later at the state or national level. Thus the local
government serves as a training school for democracy. Local government serves not only as a
training ground for the politicians to function at the state and national levels, but also it provides
an outlet for competent and public spirited persons of the locality to render social service to the
community. Therefore local government ensures a regular flow of talent to higher levels. It is for
these reasons that the local self-government is regarded as the best school of democracy and the
best guarantee for its success.

3. Encourages participation of the people in public affairs

44
 Local government affords opportunity to the people to participate in public affairs. Democracy
no doubt means government by the people, but it has become impracticable for the common
people to participate in public affairs at the state or national level. The affairs of the modern state
are too complex to understand for an ordinary citizen. Moreover, the affairs at the national level
are too far removed to be of much interest for him. The large size of the modern state is another
handicap. On the other hand, local government is close to the citizen. It affects his everyday life.
The affairs of the village, the town or the borough are his own affairs, in which he is naturally
interested. Moreover, these are quite simple for an ordinary citizen. Sanitation, need of education
for the village or town's children, maintenance of streets and roads, street lighting, management
of local markets, etc. are Subjects which he understands. None else than he can know the
problems arising in these matters.

4. More competent to solve local problems

Modern State is too large in size and the scope of its functions has expanded in recent times.
Therefore it hardly has the time to attend to the local problems of the people. It is competent to
deal with the problems which are common to all the people or which are national in nature like
defiance, foreign affairs, currency, communications, international trade, etc. But it is neither
competent nor has the knowledge to deal with the local problems of the people. The local
problems vary so much that no single agency can manage them. The problems of the villages are
different from those of the towns. The problems of desert regions are different from those of
mountainous areas. Even the needs and problems of one village or town will be different from
those of the other village or town. Therefore it is the local government which is present at the
spot which can understand and solve those problems. Local affairs can best be managed locally.

5. Local Government is Economical

It costs to the taxpayer much less if his local affairs are managed by the local government. If
these affairs were to be managed by the Central Government, the Central Government will have
to keep a large bureaucracy. It will be a big administrative state.

45
Its agents or employees serving at the local level will have to be paid at the central rates which
are generally very high. It will make it very expensive and increase the burden on the taxpayer
.Moreover, the local government knows that the money being spent is its own money which has
been raised through local sources. Therefore it will try to economies and avoid wastage. Also,
the people of the local community can keep a watch on the work being done by the local
government and can hold it accountable for any misuse of funds or financial lapses. Public
pressure forced the Rajasthan Government to issue notifications authorizing public access to
Panchayat Records.

6. Reduces the burden of the Central Government

Local government in a way acts supplementary to the Central Government. No doubt,

historically, the local government is prior to the state or national government, but with the
passage of time many important functions got transferred to the Central Government. Since the
local functions are performed by the local government, the Central Government is freed from
that responsibility and burden; consequently it can better concentrate on affairs of national
importance. The local government too knows its area of activity in which it can develop its
competence.

7. Serves as a Channel of Communication

The local government serves as two-way channel of communication between itself and the
Central Government. Desires and aspirations of the local community are articulated and carried
upward to the State Government, and plans and programmes of the State and the Central
Governments flow in the reverse direction.

8. Vital for national progress

"Local government promotes diversity of experience and creative activity through democratic
action. Thus it contributes to national progress through resilience, strength and richness of
democracy.

PROBLEMS BEFORE THE LOCAL GOVERNMENT

46
While dealing with the local governments, one can not ignore the problems and challenges with
which these governments are faced.

First

Local governments being small may not be able to attract competent and efficient persons to
perform the services they render to the public. Since the area of their jurisdiction is small and
their capacity to pay is limited by their limited resources, they may find it difficult to hire
specialists. This will naturally affect their efficiency.

Second

Since these governments are concerned with their respective local communities, they may
degenerate into myopic, narrow-minded, selfish and ignorant institutions. They are considered
closed to new ideas and change. They may develop 'parish pump' attitudes and policies.

Third

They cannot provide services of a uniform standard. Local governments are bound to differ in
resources, efficiency, etc., so that will be reflected in the local services. That is unfair and
inequitable in the age of equality.

Q.2. Discuss the 73rd and 74th Amendment Acts of the Constitution.

OR

Q.3. Write an essay on Panchyati Raj System in India.

Ans-Constitution Amendment Bills-

Rajiv Gandhi had formed government at the Centre in 1984. For various reasons the Congress
Party under his leadership tried to approach the people at the grass-root level. Therefore it was
thought proper to reorganize and revitalize the local bodies both in the urban and rural areas. In
1989 two Bills were brought before Parliament known as Constitution Sixty-fourth and
Constitution Sixty-fifth Amendment Bills.

The Sixty-fourth Constitution Amendment Bill relating to Panchayati Raj Institutions was passed
by Lok Sabha but was rejected in the Rajya Sabha because the Congress did not have two-thirds
majority there which was required to pass the amendment. The Congress party lost power in the
elections held in the 1989 and the United Front Government led by V.P, Singh introduced
another Bill in 1990 in Parliament, called the Constitution Sixty fourth Amendment Bill.
47
However, the Government fell and the Bill lapsed because the Lok Sabha was dissolved. In 1991
the Congress Party returned to power under PV Narasimha Rao. The Rao Government modified
the earlier Bill of 1989 and introduced it again in Parliament as the Constitution Seventy-third
Amendment Bill, 1991. It was passed by Parliament in December 1992 and ratified by the

States in 1993. Thus the Panchayati Raj Institutions became part of the Constitutional scheme in
1993.

THE CONSTITUTIONS (SEVENTY THIRD AMENDMENT ) ACT, 1992

The Amendment inserts a new Part after Part VIII, called Part IX and a new Schedule, called
Schedule XI, in the Constitution. It consists of Articles 243 to 243-0.

Gram Sabha

It defines Gram Sabha as a body consisting of persons registered 'in the electoral roll relating to
a village within the area of a Panchayat at the village level. (Article 243-A)

Constitution of Panchayats

A Panchayat shall be constituted at the village, intermediate and district levels. (Article 243-B)

Composition of Panchayats

Members of the Panchayat shall be elected directly by the members of the Gram Sabha, (Article
243-C) The state, by law, can make provision for the representation of the head of the Panchayat
of the village, in the Panchayat at the intermediate or district level.

The state can also make provision for giving representation to M.P.s, M.L.A.s, or M.L.C.s, in the
Panchayats at different levels falling within their constituencies. The chairperson and members

48
of the Panchayat shall have the right to vote at its meetings, The chairpersons of the Panchayats
at the Intermediate or district levels shall be elected by and from amongst their own members,

Reservation of Seats

Article 243-0 provides for reservation of seats in Panchayats at all levels (village, mehnediate
and district) for Scheduled Castes, Scheduled Tribes and women in proportion to their respective
population in the area of that Panchayat One-third of such reserved seats shall be earmarked for
the women of the Scheduled Castes and Scheduled Tribes. The reservation for Scheduled Castes
and Scheduled Tribes will come to an end at the expiry of 60 years from the commencement of
the Constitution.

Duration of Panchayats

Every Panchayat shall have a term of five years unless dissolved earlier, The efections to each
Panchayat shall be held before the expiry of the term of that Panchayat If a Panchayat has been
dissolved earlier, the elections to the next Panchayat must be completed before the expiry of six
months from the time of its dissolution (Article 243-E).

Disqualification for Membership

If a person is disqualified under any law to become a member of the state legislature, he stands
disqualified for membership of Panchayat also. But the minimum age required for membership
of Panchayat is 21 years, and not 25 years as is required for being a member of the legislature.
(Article 243-F)

Powers, Authority and Responsibilities of Panchayats

Power and authority of the Panchayats may be laid down by the law of the state legislature to
enable them to function as institutions of self-government (Article 243-G)

Powers to impose Taxes by, and funds of the Panchayats

The state legislature may authorize a Panchayat to levy, collect and appropriate taxes, duties,
tolls and fees. The state can also create Funds (like consolidated fund) for the Panchayats.
(Article 243-H).

Constitution of Finance Commissions to Review Financial position

This Article (243-1) empowers the Governor of a State to appoint a Finance Commission within
one year of this Amendment and after every five years thereafter, to review the financial position
of the Panchayats and to make recommendations.

49
To Governor regarding the principles to given

1. The distribution of taxes, duties tolls and fess between the state and the Panchayats and
determine the shares of Panchayats at different levels;

2.The taxes, tolls, fess which may be assigned to the Panchayats appropriated by them;

3.The grants-in-aid to given to the Panchayats from the consolidated fund of the state.

4. The finance Commission will also recommend the measures needed to improve the financial
position of the Panchayats, or any other measure referred by the Governor in the interests of
sound finances of the Panchayats. The qualifications of the members of the finance Commission
and the manner of appointment shall be laid down by the state legislature. The Governor shall
lay on the table of State Legislature, the report of the Commission along with memorandum as to
what action has been taken on the report.

Audit of Accounts of Panchayats (Article 243-J)

The state Legislative may be law make provision regarding the maintenance and audit of
accounts of the Panchayats.

Elections to the Panchayat

Article 243-K vests all powers of superintendence, direction and control of the conduct of
elections of Panchayats and preparation of electoral rolls thereof in a State Election Commission.
The commission shall consist of an Election Commissioner to be appointed by the Governor who
can lay down the terms of his service.

Application to Union Territories

The provisions of this Part (Part IX) of the Constitution shall apply to the Union Territories also.
But the President has the power by notification to make exceptions and modifications while
applying this Part to any Union Territory. (Article 243-L).

Part not to applied to certain areas

like scheduled areas and tribal areas under article 244, states of

Nagaland, Meghalaya, Mizoram, hill areas of Manipur, District of Darjeeling; the provisions
related to the reservation of seats for scheduled castes shall not apply to Arunachal Pradesh.

Bar to interference by Courts in electoral matters

50
Article 243-o bars the courts from interfering in the delimitation of constituencies for elections to
the Panchayats and allotment of seats to such constituencies. Disputes relating to the electons to
the Panchayats can be brought through an election petition before such authority and in such a
manner as may be provided under any law by the state legislature.

Eleventh Schedule Article 243-G (referred to earlier) mentions the subjects which this
Amendment assigns to the Panchayats. These subjects are provided in the Eleventh Schedule
which is added to the Constitution. These subjects are

1) Agriculture including agricultural extension.

2) Land improvement, implementation of land reforms, land consolidation and soil

conservation.

3) Minor irrigation, water management and watershed development.

4) Animal husbandry, dairying and poultry.

5) Fisheries.

6) Social forestry and farm forestry.

7) Minor forest produce.

8) Small scale industries, including food processing industries.

9) Khadi, village and cottage industries.

51
10) Rural housing.

11) Drinking water.

12) Fuel and fodder.

13) Roads, culverts, bridges, ferries, waterways and other means of communication.

14) Rural electrification, including distribution of electricity.

15) Non-conventional energy sources.

16) Poverty alleviation programme.

17) Education including primary and secondary schools.

18) Technical training and vocational education.

19) Adult and non-formal education.

20) Libraries.

21) Cultural activities.

52
22) Markets and fairs.

23) Health and sanitation, including hospitals, primary health centres and dispensaries. 24)
Family welfare.

25) Women and child development. 26) Social welfare, including welfare of the handicapped
and mentally retarded.

27) Welfare of the weaker sections, and in particular, of the Scheduled Castes and the Scheduled
Tribes.

28) Public distribution system.

29) Maintenance of community assets.

Comments on the Amendment

However the Seventy-third Amendment suffers from certain flaws also. For example, the
concept of "self-government" has not been specifically defined. That is why in some States these
Panchayat institutions are treated as an agency of the State Government rather than autonomous
self-governing institutions at the local community level. Devolution of powers is mandatory but
how much devolution is left at the discretion of the States which are generally reluctant to
devolve powers. So is the case with the financial resources. The result is that functional and
financial autonomy has not been granted to the Panchayati institutions. Wide discretion given to
the States creates other problems too. For example, elections are postponed for one reason or the
other. Despite the fact that this amendment came into force in 1993, elections to the Panchayats
had not been held for several years. Bihar held the Panchayat elections in 2001 after 22 years.
The excuses which the States usually give to postpone the elections are insurgency, drought,

53
monsoons, disturbed law and order situation, an on-going budget-session of the Assembly, State-
initiated litigation.

Salient features

The salient features of 73rd constitution as follow-

1. The state legislature by law, may assign the preparation of plans for economic development
and social justice and their implementation to Panachayati Raj institutions.

2. Elections in respect of all members of panchayats at all levels will be direct. Elections in
respect of the post of chairpersons at the intermediate and district levels will be indirect.
Elections will be mandatory and regular on the basis of universal adult suffrage for a period of
five years. If Panachayati Raj bodies are dissolved before five years terms the fresh elections will
take place within six month from the date of dissolution.

3. For the audit of Panchayati institutions, the Act says that the state machinery will audit the
accounts. Similarly, State Election Commissioner will hold Panchayati bodies elections.

4. There will be a uniform pattern of Panchayati Raj institutions. Panchayats shall be constituted
in every state on basis of three tier system that is at the village, intermediate and district not
exceeding twenty lacks have been given the option of not having any Panchayat at the
intermediate level.

5. Reservation in respect for SCs /STs have been provided for each level in proportion to their
population. Not less than one-third of the total membership has been reserved for women and
these seats may be allotted by rotation to different constituencies. Similar reservations have been
made in respect of the office of chairpersons too.

54
6. The state legislature have been given the power to authorize the panchayats to levy, collect
and appropriate suitable local taxes and also provide for making grants-in-aid to the Panchayats
from the consolidated fund of the state. In addition, a Finance Commission has to be constituted
once in every five years to review the financial position of the Panchayats and to make suitable
recommendation the state on the distribution of funds between the state and local bodies.

7. The Constitution with the addition in Article 243 A to 243 D and a fresh Schedule called 11th
Schedule enumerating the powers and functions of Panchayati Raj Institutions has been
incorporated.

Achievements in Operationalization of the 73rd constitutional Amendment Act

The 73rd Constitutional Amendment Act and the first twelve years succeeding it can be
considered as comprising first generation reforms, with the central theme being creation and
empowerment of strong Panchyats.

These reforms aimed to combine social justice with devolution, with its emphasis on reservations
for deprived classes of the population in Panchayats. The objective of creating a strong base of
political empowerment of ordinary people has been largely achieved, as the statistics on
Panchayats would reveal. Today, more than 21 lakh representative stand elected to the three
levels of Panchayats. Of these more than 40./. are women, 16./. Belong to SCs and 11./. Belong
to the STs. At the village Panchayat level, each Panch’s constituency comprise of about 340
people (70 families), making India the largest and most intensely democratic country worldwide.

1. First, the Constitutional framework leaves the states to decide through legislation the extent of
powers that have to be transferred to the Panchayat to function as Institutions of self-
government.

2. Second, till recently, in spite of the mandatory provisions of part IX relating to the creation of
Panchayats many states have delayed the conduct of elections to panchayats.

3. Third, even in States that has passed strong and sweeping legislations assigning most of the
powers and functions listed in the Eleventh Schedule to the Panchayats, formal transfer of
functions for performing these functions.

55
4. Fourth, there has been very little change in the first decade after the 73rd Constitutional
Amendment Act In the way that central ministries dealing with the mandates of Panchayats
function, when central ministries, which send down substantial funds for implementation of
centrally sponsored Schemes, ignore panchayats, it leaves very little incentive for States to go
ahead with devolution.

5. generation reforms in devolution to Panchayats aim to tackle the continuing time lag between
the constitutional mandate and effective functional transfer to Panchayats. From an operational
perspective, second generation reforms would be characterized by focus on building mechanism
for increased participation of the people in decision-making, streamlining the fiscal mechanisms
that fuel the functioning of Panchayats, and strengthening administrative mechanisms that
enhance the efficiency and capabilities of Panchaytas.

Conclusion

It is not to build to up a case for revival of Panchayati Raj. One must also talk about prerequisites
of the revival so that Panchayati Raj may not undergo another eclipse on the earlier pattern. First
there has to be a commitment to Panchayati Raj as a political value and the consequent political
will to establish it. What one really needs today is another Nehru who could say with a sense of
pride as he did while inaugurating Panchayati Raj in Rajasthan in 1959 “we are going to lay the
foundation of democracy or Panchayati Raj in our country.” Secondly, it should also not be
forgotten that the effort to revive Panchayati Raj is, in fact, an attempt to reconstruct Indian
polity.

THE CONSTITUTION (SEVENTY FOURTH AMENDMENT ) ACT, 1992

This amendment introduces a new part (Part IX-A) in the Constitution relating to Municipalities.
It contains provisions from Article 243-P to Article 247-ZG. Article 243-P deals with definitions
of certain terms like committee. District, metropolitan area, municipal area, Municipality,
panchayat and population.4 Constitution of Municipalities: Article 243-0 says that a Nagar
Panchayat (or by any other name) shall be constituted in a State for a transitional area which

56
means an area in transition from a rural area to an urban area. A Municipal Council shall be
constituted for a smaller urban area, and a Municipal Corporation for a larger urban area.

Constitution of Municipalities

Article 243-0 say that a Nagar Panchayat (or by any other name) shall be constituted in a State
for a transitional area which means an area in transition from a rural area to be an urban area. A
Municipal Council shall be constituted for a smaller urban area, and a Municipal Corporation for
larger urban area. But the governor can provide by a notification that a Municipality may not be
created in an industrial township if the municipal services are provided by an industrial
establishment. When the Governor is to declare an area as a transitional area or a smaller urban
area or a larger urban area he will have to take into consideration the population of the area, the
density of the population therein, the revenue generated for local administration, the percentage
of employment in non-agricultural activities, the economic importance or such other factors as he
may deem fit.

Composition of Municipalities

The seats in the Municipalities shall be filled by persons who are elected directly by the people
from the territorial constituencies in the municipal area. These territorial constituencies shall be
known as wards. (Article 243-R).

Constitution and Composition of Wards Committees etc

Where the population of a Municipality is more than three lakhs it is mandatory to constitute
Wards Communities consisting of one or more wards. (Article 243-S)

Reservation of Seats

57
Article 243- T deals with the reservation of seats in the Municipality’s for Scheduled Castes,
Scheduled Tribes and women.

Duration of Municipalities

The Municipalities will have tenure of five years from the commencement of their first meetings.
A Municipality may be dissolved before the expiry of this term, But in that case the elections for
the new Municipality shall have to be completed within the period of six months from the date of
dissolution. A municipality constituted in this manner shall function for the remainder term (of
the dissolved House) and not for full term of five years. (Article 243- V)

Disqualification for Membership

Article 243-V provides for disqualification of members. It says that any person who is above the
age of 21 years shall be disqualified for membership of Municipality if he is so disqualified for
membership of the State Legislature or if he has been disqualified by any law of the State
Legislature in force.

Powers, Authority and Responsibilities of Municipalities, etc

The State Legislature has been empowered to confer such power and authority on the
Municipalities as may be necessary to function as institutions of self-government. (Article 243-
W)

Power to impose Taxes by, and Funds of, the Municipalities

It can also provide grants-in-aid to the Municipalities from the Consolidated Fund of the State. It
can also provide for the creation of a Municipal Fund to which all m0neys received by the
Municipality shall be credited and all expenditure shall be withdrawn from there. (Article 243-
X).

Finance Commission
58
 The Finance Commission appointed under the Constitution (Seventy-third Amendment) Act,
1992 for Panchayats (referred to earlier) every five years, shall also review the financial position
of the Municipalities and make recommendations to the Governor. The Governor shall cause to
be laid before the State Legislature the recommendations made by the Commission and the
action taken thereon. (Article 243-Y)

Audit of Accounts of Municipalities

The state legislature may by law under Article 243-Z provide for the maintenance of accounts
by the Municipalities and the auditing of such accounts.

Elections to the Municipalities

The superintendence, direction and control of elections and the preparation of electoral rolls for
elections to the Municipalities, are vested in the State Election Commission appointed under the
Seventy-third Amendment of the Constitution (referred to earlier) (Article 243-ZA).

Application to the Union Territories

Article 243-ZB makes provisions of this Part (IX-A) relating to Municipalities applicable to the
Union Territories. But the President of India has been given the power to make such
modifications or exceptions as he considers necessary.

Committee for District Planning

For the purpose of integrated planning for the rural as well areas, Article 243-ZD provides for a
committee for district planning.
59
Committee for Metropolitan Planning

Article 243-ZE makes it mandatory to constitute a Metropolitan Planning Committee in every

metropolitan area, for preparing a draft development plan for the metropolitan area as a whole.

Bar to Interference by Courts in electoral matters

No court can challenge the validity of any law relating to the delimitation of constituencies
made under Article 243-ZA (election to Municipalities).

Twelfth Schedule

(See Article 243-W) This schedule lists 18 functions which the States are called upon to assign
to the Municipalities along with other functions. These are:

1) Urban planning including town planning;

2) regulation of land-use and construction of buildings;

3) planning for economic and social development;

4) Roads and bridges:

5) Water supply for domestic, industrial and commercial purposes;

60
6) public health, sanitation, conservancy and solid waste management;

7) Fire services;

8) Urban forestry, protection of the environment and promotion of ecological aspects;

9) Safeguarding the interests of weaker sections of society, including the handicapped and
mentally retarded;

10) Slum improvement and up gradation;

11) Urban poverty alleviation;

12) Provision of urban amenities and facilities such as parks, Gardens, playgrounds;

13) Promotion of cultural, educational and aesthetic aspects;

14) Burials and burial grounds, crematorium, cremation grounds and electric cremations;

15) Cattle ponds, prevention of cruelty to animals;

16) Vital statistics including registration of births and deaths;

61
17) Public amenities including street lighting, parking lots, bus stops and public convenience;

18) Regulation of slaughter houses and tanneries.

Organization, Functions and Working of Panchayati Raj Institutions

Following the enactment of the Constitution Seventy-third Amendment Act in 1992 almost all
States in India passed their own respective legislations to bring their rural local self-government
institutions in conformity with it.

Q.4. Explain the District Administration, its Organization and functions.

OR

Q.5. Explain the characteristics and importance of local self govt. institutions.

ANS-DISTRICT LEVEL – ZILA PRISHAD

Composition and Administrative Structure

The Panchayat at the district level is called Zila Parishad in most of the States. But in Goa,
Karnataka, M.P., Sikkim and U.P. it is called Zila Panchayat and in Tamil Nadu, Kerala and
Gujarat its name is District Panchayat. The variation among the States exists about the
designation of its head or presiding officer too. He is called chairman or chairperson in some
States and President or Adhyaksha or Zila Pradhan or Pramukh or Sabhadhipati in others.

There is lot of similarity and only a little variation among the States with regard to the
composition of Zila Parishads or District Panchayats. Only in Arunachal Pradesh no member of
this body is directly elected by the voters. Each Anchalik Samiti elects one member to the Zila
Parishad. In all States except Andhra Pradesh part of the members are elected directly by the
registered voters within the area of the District. The second category of members consists of ex-
officio members. These are M.P.s (members of Lok Sabha and/or Rajya Sabha) and M.L.A.s and
62
M.L.C.s (if a State has Upper House of its legislature). In most of the States chairpersons of the
Taluk or Block or Panchayat Samitis (intermediate level) are also made exofficio members.

The number of members of each Zila Parish ad/District Panchayat is fixed by the State
Government depending on several factors.

There is a provision for reservation of seats for women, Scheduled Castes/Scheduled

Tribes/Backward classes, and women belonging to these classes. They are elected heads of their
respective Panchayats, they summon the meetings of these Panchayats once in two-three months
and preside over them. They see to it that the resolutions passed by these Panchayats are duly
implemented. Their term of office is coterminous with the term of the District Panchayat i.e. five
years unless they resign earlier or are removed earlier.

The term of each District Panchayat is five years unless dissolved earlier. In most of the States
their meeting must be held at least once in three months. However in Goa, Haryana and
Karnataka their meetings must be called at least once in two months.

So far as the functions of the District Panchayats are concerned there is no uniformity among the
States. In some states like Andhra Pradesh and Goa their functions are limited to supervision.
Coordination and guidance of the functions of the Panchayats at the lower levels. In some States
they provide advice to State Government with regard to the Panchayati Raj in addition to the
above functions. In most of the States they perform all these functions but in addition they are
assigned development, planning, welfare activities. cultural and educational activities, activities
relating to social justice and activities in functional areas like agriculture, irrigation, animal
husbandry, and many others which are mentioned above in the case of Panchayat Samitis.

Each District Panchayat Ziia Parishad functions through standing committees which it is bound
to create under the law. The number of committees is not uniform in all States but the most
common are:

. General Standing Committee.

2. Finance, Audit and Planning Committee.

3. Social Justice Committee.

63
4. Education and Health committee

5. Agriculture and Industries Com

Functions

Provide essential services and facilities to the rural population and the planning and execution of
the development programmes for the district.

1. Supply improved seeds to farmers. Inform them of new techniques of training. Undertake
construction of small-scale irrigation projects and percolation tanks. Maintain pastures and
grazing lands.

2. Set up and run schools in villages. Execute programmes for adult literacy. Run libraries.

3. Start Primary Health Centre and hospitals in villages. Start vaccination drives against
epidemics and family welfare campaigns.

4. Construct bridges and roads wherever needed.

5. Execute plans for the development of the scheduled castes and tribes. Run ashrams alas for
advice children. Set up free hostels for scheduled caste students.

6. Encourage entrepreneurs to start small-scale industries like cottage industries handicraft,

agriculture produce processing mills, dairy farms, etc. Implement rural employment schemes.

7. They even supply work for the poor and needy people.

Administrative Personnel

64
The elected chairperson is the head of the administration of the Zila Perished District Panchayat.
The administrative head of the district level Panchayat is generally designated as the Chief
Executive Officer who is appointed by the State Government. He belongs either to the Indian
Administrative Service or to the State Civil Service.

He is responsible for day-to-day functioning of the secretariat of the Zila Parishad District
Panchayat. He sees to it that the decisions taken by the Parish ad are properly implemented and
works and projects taken in hand are speedily executed. He prepares the annual administrative
report to be submitted to the State Government. He is responsible for the preparation of the
budget and has to perform any other function. which may be assigned to him by the State
Government. He is assisted by several officers like finance or accounts officer, agriculture and
animal husbandry officer, health officer, education officer, Panchayat officer, rural development
officer, executive engineer, etc. They belong to the State Service and have been transferred to
work under the District/Zila Parishad. Subordinate and supporting staff are appointed either by
the State Government or by the District Panchayat.

The terms and conditions of service of all staff of the Zila Parishad/District Panchayat are laid
down and regulated by the State Government.

Sources of Revenue

The legislations of all States provide for the creation of separate Zila Parishad District
Panchayat Fund which is like the consolidated fund of the State. All monies accruing to the
Parishad are deposited in it. The sources of income of the Zila Parishad District Panchayat are:

1. Grants-in-aid given by the State Government Orland the Union Government (general or for
any particular project).

2. Donations and incomes like rent or lease or sale proceeds of the properties of the Parishad

Panchayat.

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3. Toll, fees or cess imposed an bridges, ferries, entertainment, fairs, haats etc.

4. Share of the land revenue assigned to the Parishad/Panchayat.

5. Several states like UP, Punjab, Manipur, Maharashtra, etc. have empowered them to levy taxes
on any matter on which Panchayats at the lower levels are empowered to do.

6. Loans raised by it against the security of its properties.

7. Contributions made by Panchayat Samitis of any other local authority.

There is a provision for the appointment of a Finance Commission by the Governor of the State
every five years which has to review the financial position of these institutions and suggest
measures to strengthen their financial position. The Commission will also review the quantum of
aid being given by the State Government and the distribution of resources between them.

PROBLEMS OF LOCAL SELF GOVT. INSTITUTIONS

1. The most important is the lack of vision and the lack of will in the ruling class to make the
Panchayati Raj Institutions strong and vibrant units of governance. The motives which led
Gandhiji and other leaders to advocate Panchayati institutions were to decentralize the State
authority, to start the development and planning process from below and to make the village
communities self-governing and autonomous as units of local self-government. After initial
euphoria, these institutions became the victims of neglect and power considerations. Rajiv
Gandhi tried to rekindle the spirit behind this experiment but he did not stay in power for long.
These institutions have no doubt been established in all states but their working is nowhere near
the ideals behind them. The State Governments have not tried to make them stand on their feet,
nurture them and let them grow into healthy institutions. That is why their contribution to rural
development has not been satisfactory. Several of their ills like excessive official interference,
inadequate funds, excessive State control etc. emanate from the fact that neither the political
class nor the bureaucracy has shown the required willingness to help these institutions to
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succeed in their objectives.

2. The second important problem is created by the social environment in rural India. Rural
society is not only conservative but also caste ridden. In most of the States there is indequate
infrastructure and information, and widespread Illiteracy.

The result is that there is inadequate awareness among the people about their rights and the
dominant caste in the village dominates the Panchayat. The law makers tried to undo this by
providing reservation in the Panchayats at all levels for Scheduled Castes, Scheduled Tribes,
Backward classes and women. This is a laudable step and has improved the participation of
weaker sections of the society in these institutions, yet the caste factor and its hold has not
disappeared.

3. Another problem is the dominance of the Panchayats by the powerful and the rich. It has been
observed that the posts of the village Pradhans/Sarpanch have often been cornered by the
wealthy and the influential defeating the very purpose of representative institutions. In Tamil
Nadu, for example, the practice of 'auctioning' Panchayat President Posts in several districts has
been noticed.

The practice of selling village Panchayat posts has created resentment. It has killed the very
spirit of grass-root level democracy. Aspiring and committed candidates are not allowed to file
nominations as they fear violent backlash from the village mafia.

4. Violence has become a norm during Panchayat elections in several States. Scores of persons
were killed and wounded during the Panchayat elections in Bihar which were held in 2001 after
23 years. Bihar is not the solitary example. It happens in several States.

When might becomes right. it cannot be expected that the Panchayats would become
functionally effective or that they would serve the common weal. Panchayats have come to be
regarded as instruments of power and making money and also steps towards higher politics. So
violence IS seen as means to achieve power. But this is not peculiar to Panchayati Raj
Institutions only. It IS leading towards criminalization of politics.

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5. Corruption is another virus which has adversely affected the health of P. R. Institutions. Those
who are elected to these institutions at different levels do not reveal a high standard of conduct.
Even the bureaucracy attached to them is not free from corruption. Funds given to these
institutions for development and projects are siphoned off. Only one example from Rajasthan
may be quoted here. In April 2001, in a village named Jana wad the Panchayat was called upon
to" show its accounts in a public hearing. It was found that Rs. 45 lakhs were siphoned off out of
Rs.65 lakh and over 35 ghost projects were found to have been approved on paper.

6. Parallel agencies weaken the Panchayati institutions. One of the ideals behind these
institutions was to make them medium of people's participation in development programmes
with a view to transform the rural society. It was found that bureaucratic implementation of
development projects had no visible impact on rural poverty and backwardness.

Therefore Panchayati Raj was started as an integral part of community development

programmes. But the Government failed to utilize these institutions for the purpose for which
they were created. Neither was the bureaucratic hold weakened nor was the responsibility to
implement development project assigned to them. The Government created parallel alternative
structures for rural development functions Le District Rural Development Agency (DRDA) was
made responsible for IRDP. TRYSEM, NREP, RLEGP, etc. programmes. The bulk of the money
of the Union Ministry of Rural Development goes to ORDAs as the principal organ at the district
level to oversee the Implementation of anti-poverty programmes.

There are a number of overlapping committees comprising MPs. And M.L.A.s functioning at
district level. Various lead-banks provide finance for different schemes outside the Panchayati
institutions. Also there are a number of departmental organisations which are existing side by
side.

7. Not only has there been reluctance on the part of higher Level political authority to give up
control over the implementation of development schemes and allocation of funds. but also the
trend is to undermine the authority of PRls. The State level organisations tend to show their own
superiority over the PRls reducing the prestige and authority of the latter. M.Ps, M.L.A.s and
State leaders tend to regard the grass-root leadership at the Panchayat levels as their rivals.

68
Therefore they attempt to show that they are higher in power hierarchy. They either try to
dominate the Prior weaken their authority.

8. There is no rational and logical mechanism to coordinate activities of the different tiers of the
PRls. It was envisaged that each higher level will supervise and guide the work of the 10V!fer
tier.

Coordination was sought to be achieved through making Sarpanchs of the village Panchayats
members of the Panchayat Samiti/Block Samiti and giving chairpersons of these Samitis
representation in the District/Zila Parishads. Also M.P.s, M.L.As, and M.L.C .. s were mde ex-
officio members of the Panchayat at each tier. The idea behind it was not only to bring about
coordination but also to give the benefit of the experience and knowledge of the legislator to the
Panchayats. But what has happened is that the presence of these legislators in the Panchayats
overshadows the identity of the PRls. It has hampered their independent and free functioning.

9. The devolution of authority and finances also has not conformed to the spirit of legislation.
The State control over the PRls remains as strong as it was before the 73rd Amendment.

The State Governments can suspend or dissolve Panchayats at any level, can suspend or reject
their resolutions, can remove their chairpersons can inspect and hold inquiries, can appoint their
administrative personnel and regulate their conditions of service, allocate funds, stop the
execution of any work or project etc.

10. Despite legislation providing that if a Panchayat (at any level) is dissolved, the next must be

constituted within six months, (also, the term of the Panchayats at each level is five years after
which the elections have to be held) several States continue to postpone elections on one or the
other ground. Bihar and J&K held elections to their Panchayats in 2001 after a gap of 23 years.
In the case of Bihar the court's intervention was sought to compel the Government to hold
elections. Punjab, Assam and Andhra Pradesh also delayed the elections on one ground or the
other. Punjab even amended Its legislation to postpone elections to the district and intermediate
levels.

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11. The attitude of bureaucracy is another obstacle. First, the bureaucrats show no enthusiasm to
work under the elected leaders of the Panchayats. Most of officials who are assigned to the
Panchayats belong to the State cadre. Second, the politicisation of the PRls has badly affected
them. They became the dumping grounds for discarded State cadre officials. Those who are
inefficient are transferred to them.

12. Lack of financial resources is a great weakness of the PRls. Despite the State Finance

Commissions, these PRls still continue to be starved of funds. Many of the Panchayats cover too
small areas to raise their own funds. The scope of levying taxes. fees and tolls, etc. is also limited
in view of the under-development of rural hinterland and its economy. The demands of
development are too many and resources too poor. That creates frustration and disinterestedness.
It makes PRls too dependent on State Governments for financial aid which dilutes their
autonomy and creates uncertainty in their programmes.

13. Gram Sabhas have not proved as effective as they were intended to be. In several villages
Gram Sabhas continue to be paralyzed. Accountability of the Panchayats and participation of the
people in their own governance have suffered as a consequence.

14. Education levels of the elected leaders tend to be diluted by substantial percentage who are

illiterate or semi-literate. This is particularly so among women and the S.Cs & S.Ts. Therefore it
is essential that a training programme should be devised for this emerging leadership_.

Q.6. Explain the different forms of Local Urban Government in India.

ANS-Urban Local Government

The first Municipal government was set up in Madras 1688. It means more than three hundred
years ago. But its growth has been very slow largely because the process of urbanization in India
was non- existent till the end of nineteenth century. Also, the British never took the development
of urban local bodies in towns for looking after health and sanitation. The evolution of the local
government has been discussed in earlier section and therefore need not be repeated here. The
most important step was taken in the form of 74th Amendment of the constitution which became
operative in 1993.That granted the urban local government (like the Panchayati Raj Institutions)
70
a constitutional status. The States had to amend their legislations regarding municipal
governments to bring in conformity with the above amendment. Presently therefore the urban
local governments have been classified into three categories.

Two types of towns do not come within the scope of above classification. One category is
industrial township like Jamshedpur or Bokaro. These towns have come up as part of a large-
scale industrial steel mill and the municipal services are provided by the industrial establishment.
Second category is army cantonment. These towns have come up around the army stations. The
management boards for these towns are established and controlled by the Defence Department
and these are known as Cantonment Board.

Before the 74th Amendment of the constitution the local governments for smaller township were
known as Town are Committees and notified Area Committees. Now these two categories are
being replaced by Nagar Panchayats.

Nagar Panchayats

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 A Nagar Panchayat is established for a transitional are- that is to say, an area in transition from a
rural area to an urban area. It is difficult to classify an area as transitional area, yet the following
factors may be taken into consideration.

1. Population of the area.

2. Density of population in the area.

3. Revenue generated for local administration.

4. Percentage of population in non-agricultural activities.

5. Economic importance of the area.

6. 400 persons to one kilometer of area.

Members of Nagar Panchayat

There are three categories of member of the Nagar Panchayat:

1. Elected members- They are elected from single-member wards by the registered voters who
are above the age of 18.

2. Nominated members

The Government may nominate one or two members to the Nagar Panchayat from amongst the
person who have special knowledge or experience in municipal administration.

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3.Ex-officio members- The M.Ps., M.L.A. and/or M.L.C. who represent constituency comprising
the Transitional are ex-officio members of the Nagar Panchayat.

3. Duration of Nagar Panchayat

The Nagar Panchayat has a term of five years. But it can be dissolved earlier on certain grounds
like-

1. If it is incompetent to perform.

2. Grossly negligent in the performance of its duties.

3. If its exceeds or abuses its authority.

4. If its credit or financial position is seriously threatened in opinion of the Government.

Functions-

The Nagar Panchayats perform two types of functions-

1. Obligatory Functions-

The obligatory functions include water supply, drainage, scavenging of streets lighting,
sanitation and health, etc.

73
2. Discretionary Functions

The discretionary functions include primary education, orgainisation and management of fairs,
bathing Ghats, social and economic development planning, slum improvement and up gradation,
urban forestry , urban poverty alleviation, etc.

But the number of functions of the Nagar Panchayats is not uniform in all the States. Moreover, a
function which is mandatory in one State may be discretionary in another State.

Administrative Personnel

The elected head of Nagar or Town Panchayat. Is The Chairman or President. He has access to
all the records of the Panchayat and has the right to be informed about the working of the
Panchayat. He call the meetings of the Panchayat and presides over them. The executive head is
called secretary or the Executive officer who is appointed by the State Government. HE is helped
by some specialist like health officer, accounts officer, engineer, etc. and subordinate staff. The
terms and conditions of service of these officials are laid down by the State Government but they
are paid out of the Nagar Panchayat Fund.

Sources of Revenue

The Main sources of revenue of the Nagar Panchayat are:

1.Taxes, fess, levies or rates imposed by the Panchayat like taxes on house, vacant lands,
vehicles, trade, professions, fairs, etc.

2. License fee, for business and commercial establishment, fee on building construction, receipts
from water supply, etc.

3. Proceeds from rent or sale of property.

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4. Loans raised by the Panchayat.

5. Grants and donations given by the Union or State Government or by a local authority or by
any other organization.

Municipal Corporation

A Municipal Corporation, City Corporation, Mahanagar Palika, Mahanagar Nigam or Nagar

Nigam is a local government in India that administers urban areas with a population of more than
one million.

The growing population and urbanization in various cities of India were in need of a local
governing body that can work for providing necessary community services like health care,
educational institution, housing, transport etc. by collecting property tax and fixed grant from the
State Government. The 74th Amendment made the provisions relating to urban local
governments.

Composition

The area administered by a Municipal Corporation is known as a municipal area. Each municipal
area is divided into territorial constituencies known as wards. A Municipal Corporation is made
up of a Wards Committee. Each ward has one seat in the Wards Committee. Members are
elected to the Wards Committee on the basis of adult franchise for a term of five years. These
members are known as Councilors’ or Compotators. The number of wards in a municipal area is
determined by the population of the city. Some seats are reserved for Scheduled
Castes, Scheduled Tribes, backward classes and women.

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A State can choose to constitute additional Committees to carry functions of urban local
governance, in addition to the Wards Committees. In addition to the Councilors’ elected from the
wards, the legislature of a state may also choose to make provisions for the representation of
persons having special knowledge or experience in municipal administration,

the MPs or MLAs representing the constituencies which comprise wholly or partly the municipal
area, and/or the Commissioners of additional committees that the State may have constituted. If a
State legislature appoints a person from the first category to a Wards Committee, that individual
will not have the right to vote in the meetings of the Municipal Corporation, while MPs, MLAs
and Commissioners do have the right to vote in meetings. The largest corporations are in the six
metropolitan cities of India, viz. Delhi, Mumbai, Kolkata, Chennai, Bangalore and Hyderabad.
The Brihanmumbai Municipal Corporation (BMC) is the richest municipal corporation in India .

Administration

The Mayor is the head of the Municipal Corporation, but the role is largely ceremonial as
executive powers are vested in the Municipal Commissioner. The office of the Mayor combines
a functional role of chairing the Corporation meeting as well as ceremonial role associated with
being the First Citizen of the city. Per the amended Municipal Corporation Act of 1888, a Deputy
Mayor is appointed by the Mayor. The tenure of the Mayor and Deputy Mayor is two and a half
years.

Executive Officers monitor the implementation of all the programs related to planning and
development of the corporation with the coordination of Mayor and Councilors.

Functions

The Twelfth Schedule to the Constitution lists the subjects that Municipal Corporations are
responsible for. Corporations may be entrusted to perform functions and implement schemes
including those in relation to the matters listed in the Twelfth Schedule.

Urban Planning including town planning.

1. Regulation of land-use and construction of buildings.

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2. Planning for economic and social development.

3. Roads and bridges.

4. Water supply for domestic, industrial and commercial purposes.

5. Public health, sanitation conservancy and solid waste management.

6. Fire services.

7. Urban forestry, protection of the environment and promotion of ecological aspects.

8. Safeguarding the interests of weaker sections of society, including the handicapped and
mentally retarded.

9. Slum improvement and up gradation.

10. Urban poverty alleviation.

11. Provision of urban amenities and facilities such as parks, gardens, playgrounds.

12. Promotion of cultural, educational and aesthetic aspects.

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13. Burials and burial grounds; cremations, cremation grounds and electric crematoriums.

14. Cattle pounds; prevention of cruelty to animals.

15. Vital statistics including registration of births and deaths.

16. Public amenities including street lighting, parking lots, bus stops and public conveniences.

17. Regulation of slaughter houses and tanneries.

Municipal Councils

A Municipality or Municipal Council is established for a smaller urban area. But what is a
smaller urban area has decided by the State Government keeping in view the same factors as are
mentioned above for the Nagar or Town Panchayats. But the criteria laid down varies from State.

Elected members- The number (varies from council to council) is specified by the State
Government.

Nominated Member

One to five members are nominated by the Government from amongst persons who have
experience or special knowledge of municipal administration.

Ex Officio

Legislations of all States say that M.Ps, M.LAs. and M.L.Cs. whose constituency falls within a
municipal area shall the ex-officio members of Council.
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Functions

Municipal Councils enjoy mandatory as well as discretionary functions.

1. Mandatory Functions

Mandatory functions of the Municipal Council are street lighting, drainage, sweeping and
scavenging, maintenance of public streets and bridges, naming of public streets and roads,
numbering houses, water supply and registration of births and deaths.

2. Discretionary Functions

The discretionary functions include public parks.Libraries mental hospitals, dharamshalas,

shelters for the destitute, providing houses to municipal employees, holding survey and
collecting statistic, public health and child welfare, etc.

Administrative Personnel

The executive head of the municipal administration is an officer who is designated differently in
different States, such as Commissioner, secretary, chief officer or executive officer. The
functions under the elected President or chairman and is subject to the control of the Municipal
Council. Usually he has a term of 3 years but may be transferred by the State Government if the
Council passes a resolution to that effect by a specific majority.

Sources of Revenue

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It is obligatory for every Municipal Council to constitute a Fund called the Municipal Fund. All
monies received by the Council are deposited in the Fund. The main sources of revenue of the
Municipalities are:

1. Grants-in-aid given by the States Government or the Union Government.

2. Proceeds of taxes levied by the State and shared with or assigned to the Municipality.

3. Taxes, fees, rates, etc. levied by the Municipal Council.

4. Donations and Contributions by other local authorities or organizations.

5. Proceeds from sale or rents of properties.

6. Fined, penalties, etc. Imposed.

7. Loans raised by the Council.

UNIT – IV

Very short type questions-

Q.1. what is budget?

Ans-acc to Leroy beaulieu-a budget is a statement of the estimated receipts and expenses during
a fixed period.
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Thomas D.lynch-

Noted that the commom subject in any budget discussion is money.other subjects are important
but they are mentioned in relationship to money or are translated into money.

Q.2.what is financial administration?

Ans- According to L. D. White "Fiscal Management includes those operations designed to make
funds available to officials and to ensure their lawful and efficientuse."

According to Jaze Gaston "Financial Administration is that part of government organization

which deals with the collection, preservation and distribution of public funds, with the
coordination of public revenue and expenditure, with the management of credit operations on
behalf of the State and with the general control of the financial affairs of public household".

Q.3.zero base budget

Ans-zero base budget is a method of budgeting in which all expenses must be justified for each
new period.the process of zero base budgeting starts from a zero base.

Long type questions-

Q.1. What do you understand by the term 'Financial Administration'? Explain the
significance and machinery of Financial Administration.

OR

Q.2.. What do you understand by the term 'Financial Administration'? What are the
features, merits and demerits of Performance Budgeting?

Ans-Financial Administration- Finance is the lifeblood of very business. As personnel and

materials which are necessary for the functioning of any office, industry, enterprise can be made
available through money. Hence, finance plays an important role in the business. Socio-
economic forces unleashed by industrial revolution have given a new meaning and dynamic
content to financial administration.

Meaning of Financial Administration

The term “Financial Administration is used in a broad sense to include all the processes involved
in collecting. Budgeting ,appropriating and expending public moneys; auditing income and
expenditures and receipts and disbursement; accounting for assets and liabilities and for the
81
financial transaction 0f the government; and reporting upon income and expenditures, receipts
and disbursements and the condition of funds and appropriations.

Definitions of Financial Administration- According to L. D. White "Fiscal Management includes

those operations designed to make funds available to officials and to ensure their lawful and
efficientuse."

According to Jaze Gaston "Financial Administration is that part of government organization

which deals with the collection, preservation and distribution of public funds, with the
coordination of public revenue and expenditure, with the management of credit operations on
behalf of the State and with the general control of the financial affairs of public household".

Even though these definitions covers some important aspects of fiscal management, it fails to
project a comprehensive scope of financial administration. G. S. Lall states that financial
administration is concerned with all the aspects of financial management of the State. Since
public administration is more and more concerned with public affairs and public interest, the
frontiers of financial administration are expanding and therefore there is a need for a
comprehensive definition of financial administration. As an attempt towards this direction, the
following definition is presented:

"Financial Administration includes all the activities which generate, regulate and distribute
monetary resources needed for the sustenance and growth of the members of a political
community."

Financial-administration is a dynamic process, which falls into five well defined divisions
namely:

1. Preparation of the budget, i.e., of the estimates of the revenue and expenditure for the ensuing
financial year,

2. Getting these estimates passed by the Legislature called ‘Legislation of the Budget’,

3. Execution of the budget, i.e., regulation of the expenditure and raising of revenue according
to it,
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4.Treasury management, i.e., safe custody of the funds raised, and due arrangement for the
necessary payments to meet the liabilities; and

5. Rendering of the accounts by the executive and the audit of these accounts.

`The Machinery of Financial Administration- Although there are variation of detail from
Country, generally speaking the machinery of financial administration consists of 5 parts
namely:

1. The Legislature,

2. The central department of concerned mainly with the financial administration,

3. The principle financial officers in the administrative departments,

4. The audit organization and,

5. The Committees of the legislature particularly the Estimates Committee.

Principles of Financial Administration

Generally, in democratic set up, there are guiding principles for the operation of financial
administration. They are:

1. Principle of Unity in the Organization

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 We all know that unity provides strength to all of us. According to this principle, there must be
control of central authority on financial administration. However, it does no mean that every
work is done by superior authority. It simply means that there must be close coordination
between different executives and higher executives should have full control over on the activities
of their subordinate executives.

2. Principle of Simplicity and Regularity

According to this principle, financial administration should have the quality of simplicity,
regularity and promptness. RedTapism should be totally eliminated and the work procedure
should be quite simple, clear and easily understandable by the average person.

3. Principle of Compliance with the will of the Legislature

According to this principle, no expenditure out of public revenue is incurred unless it is

sanctioned by Parliament. In the constitution of India, it has been mentioned as, “No money out
of the consolidated fund of India or the consolidated fund of a state shall be appropriated except
in accordance with the law and the purpose and the manner as passed by legislature.

4. Principle of Effective Control

According to this principle, it is essential to have effective control at every stage of financial
administration. Generally the following agencies are involved in the control of financial
administration of the government:

i. Executive

ii. Legislature
84
iii. Financial Department of Financial Ministry

iv. Auditing Department

v. Parliamentary Committees

5. Principle of Uniformity

According to this principle, there must be uniformity in all departments or sections of the
government as to policies of expenditure, revenue and loan etc.

6. Principle of Authority

According, to this principle, no tax shall be levied or collected unless it is approved by the
representatives of the people. In the constitution of India has been mentioned as “No tax shall be
levied or collected except by authority of laws.”

7. Principle of Accountability

According to this principle, Every Government is bound to spend the money granted by the
parliament for no purpose other than it was sanctioned by the legislature or parliament. In order
to check the abuses of owners on the part of executive, the Auditor-General audits the a/c of the
Govt. to place before the legislature a report to show that the executive has spent the money for
purposes for which Parliament has sanctioned. Thus the provision for the appointment of
comptroller and Auditor-General is laid down in the Indian Constipation to achieve the above
objective.

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Objects

Financial administration consists of those operations the object of which is to make funds
available for the Governmental activities, and to ensure the lawful and efficient use of these
funds. These operations are performed by the following agencies :

1. The Executive, which needs funds;

2. The Legislature, which alone can grant funds;

3. The Finance Ministry which controls the expenditure; and

4. The Audit which sits in judgment over the way in which the funds have been spent.

Functions of Financial Administration

The Legislature under a parliamentary democracy performs the following financial functions.

1. Appropriation of public money through the annual budget for expenditure over government
activities.

2. Authorization of taxes or increases in the rates of existing taxes.

3. Authorization of the public’s loans.

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4. Enforcing the financial accountability of the spending authorizes thorough controlling the
accounts.

Importance of Financial Administration

The importance of Financial Administration was not considered till the industrial revolution
when social life became more complex as a result of industrial revolution, the role of the
government increased manifold. Further, the welfare state has caused phenomenal increase in
state activity. The governments have entered into new areas which were kept out of the preview
of the State. In this changed context, financial administration has gained greater significance for
exploring ways and means to generate resources to meet the ever-increasing public expenditure.

Q.3. How the Budget is formed and executed in India? Discuss in detail.

OR

Q.4. discuss the formation and execution of budget.

Ans-

FORMATION AND EXECUTION OF BUDGET

In Public Administration, the term refers. to a financial document, which is annually placed
before the legislature, by the executive, giving a complete statement regarding the government
revenues and expenditure of the previous financial year and an estimate of the same for the next
financial year. A budget is a financial report of statement and proposals, which are periodically
placed before the legislature for its approval and sanctions. In a way, it is an attempt to allocate
financial resources through political processes. Willoughby says, "The real significance of the
budget lies in providing for the orderly administration of the financial affairs of the government."
Further elaborating the need for reform in the budgetary system in the developing countries,
Thavaraj writes: "the need for result-oriented budgeting is more keenly felt in all the developing
countries where investable resources are few, the backlog in development is considerable,
entrepreneurship is scarce and consequently the role of the government is all-pervading,
embracing a wide variety of enterprises ranging from the simplest of consumer goods to the most
complex capital goods industries and infrastructural facilities."

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In India, under Article 112 of the Constitution, the President causes to be laid before the houses
of Parliament, a statement of the estimated receipts and expenditure of the government of India
during the financial year. This Annual Financial Statement shows the sums charged on the
Consolidated Fund of India and the money required to meet the other requirements. The former
is non-votable and the latter is votable. Votable estimates are submitted to the Lok Sabha, which
can assent to, refuse or reduce the grant but cannot enhance it. All demands for grants and
taxation proposals thus emerge from the executive. Expenditure can be sanctioned by the
parliament only.

The Constitution of India safeguards the interests and rights of the taxpayer through three
provisions;

(A) No tax shall be levied or collected except by authority of law;

(B) No expenditure shall be incurred from public funds except as provided in the Constitution;

(C) The executive has to spend only in the manner sanctioned by the Parliament. The Auditor-

General exercises this control. The entire structure of Financial Administration revolves round
the Finance Ministry. It frames the annual financial statement called budget in consultation with
the other ministries. After the money has been spent this public expenditure is subjected to the
searchlight of an independent audit to examine the legality and the propriety of the expenditure.
Control of parliament over taxation and expenditure is rendered effective through independent
audit. The Auditor-General is independent of the executive and is accountable only to
parliament. He has to report to Parliament any expenditure not in conformity with the declared
intention of Parliament or any faulty administration of a grant.

The Budget has three stages

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1. Preparation

India is a federal state with a center and units each having its own budget. The work on the union
budget starts with the officers preparing the estimates in September on the basis of the figures
supplied by the finance ministry. In January, these estimates are consolidates by the Finance
department. The Accountant-General next scrutinizes them.

2. Legislation

Budget is the most important tool of legislative control over the public purse and

through the purse over the executive. It includes control of revenue and expenditure. No tax can
be collected without legislature's prior approval and no expenditure can be incurred without its
prior approval. The Finance Minister presents the budget in the House of the People towards the
end of February. An Economic Review portraying the state of the economy during the current
year precedes it. The finance Minister presents the budget with a budget speech explaining at
length the financial proposals of the government. The budget is presented in the Rajya Sabha
around the same time. Parliament recesses for three days enable the members to study the budget
proposals. On reassemble, a general discussion takes place for three days after which Demands
for Grant are voted on the . basis of the priority of demands previously agreed to by the leaders.
Votable items are then put to vote. Motions may be moved to reduce any grant. All the
remaining items are put to vote on the last day. Voting on demands for grants is followed by the
Appropriation Bill authorizing the issue of money from the Consolidated

89
Fund and vesting in the government, the authority to draw money from the Consolidated Fund of
India.

Vote on Account

As voting on demand for grants may take some time, a vote on account may be passed providing
for the expenditure of a department for about four months in the new financial year. It is open to
general discussion.

Consolidated Fund

The center and states in India have each their Consolidated Fund to which all receipts are
credited and all authorized payments are debited. All expenditure is of two kinds, votable and
non-votable.

Finance Bill:

Finance Bill is the bill embodying the government's financial, mainly taxation proposals for the
ensuing year which has to be passed by Parliament every year. It is also open to general and
clause discussion.

Money Bill:

Money Bill is one dealing with taxation, borrowing or expenditure. A Money Bill differs from a
Finance Bill in the following ways:

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- A Money Bill deals exclusively with taxation, borrowing or expenditure whereas a Finance bill
has a broader coverage;

- A Money Bill is a bill certified to be such by the speaker of the Lok Sabha whereas a Finance
Bill needs no such certificate.

- A Money Bill must be returned by the House of the States to the House of the People within
fourteen days of its receipt, with its recommendation, if any, which the Lok Sabha is not bound
to accept. Disagreement over a Finance Bill is resolves at a joint sitting by a majority of the total
number of members present and voting

3. Execution of The Budget

After the Appropriation Act is passed the grants as voted by the Parliament are distributed where
the care is being taken to spread the cuts, if any, over numerous heads. Appropriation is the
allocation of funds to a given unit as passed by Parliament. The spending authority shall exercise
due care in the spending of public money. Public money shall not be spent for the benefit of a
particular community or religion. All orders sanctioning expenditure shall be communicated to
the Auditor-General. The Accountant-General monitors the progress of receipts and expenditure
and brings irregularities to light.

INSTRUMENTS OF FINANCIAL CONTROL

Four organs of government exercise control over finance in a parliamentary democracy like
India. They §ire -legislature, executive, finance ministry and the audit department.

Parliament exercises control over revenue, expenditure, borrowing and accounts. Sanction from
the legislature is required for the levy of new taxes or for the increase in the rates of existing
91
taxes, for the withdrawal of money from the Consolidated Fund for public expenditure and for
the raising of loans.

The executive determines the pay allowance; leave, traveling allowance to each of the
administrative authorities. The cabinet is assisted by an economic committee, which decides on
the financial matters to be referred to the cabinet for final decision. Its orders on the estimates are
final.

The Finance Ministry has to ensure that the administrative departments get adequate funds that
they keep within their grants, that they surrender their savings well before the close of the year
and that the spending departments send progress reports regularly, and on time.

Under the constitution, the executive is to formulate demands for money. The Lok Sabha has the
prerogative to exercise control over taxation, to grant supplies for public expenditure and control
appropriations and public expenditure. This is ensured by the audit of public accounts by an
independent statutory authority - the Comptroller and Auditor General and the subsequent
examination of his audit report by a parliamentary committee-the public accounts committee.
The CAG examines the annual accounts. He reports on any waste, losses or departures from
settled financial principles and procedure. This report examined by the Public Accounts
Committee completes the cycle ofpar1iamentary control over public expenditure.

The committee on Estimates is a continuous 'economy committee' to suggest economies within

the limits of accepted policy.

Audit is indispensable for sound financial administration, especially, for parliament to exercise
financial control. Audit is being used in all the countries of the world to ensure optimization of
financial resources though its status and role may differ from country to country. A sound system
of audit is the only safeguard and protection against the misuse of public money.

Financial Committees of India

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Effective parliamentary control over the governmental expenditure requires that first, the
parliament should satisfy itself that the appropriations have been utilized economically for the
approved purposes within the framework of the grants, and secondly,

it should undertake a detailed examination of the annual budget estimates of the government to
suggest possible economies in the implementation of plans and programmes embodied therein.
Both these functions are of pivotal importance in making the parliamentary control over
government expenditure complete. The parliament constituted as it is, at present, has no time and
energy to perform these functions. It, therefore, constitutes four committees, composed of
members belonging to it, to devote themselves to these functions. These four committees are:

Q.5.Discuss the compassion and functions of the parliamentary of financial committee.

or

Q.6.discuss the parliamentary committees regading the budget.

Ans-Committee on Public Undertakings Department related Standing Committees

Public Account Committee

Parliamentary power over vesting money for specific purposes is meaningless unless it is
buttressed with the power to ascertain that the money voted by parliament is utilized by the
executive for the purposes for which it was voted. This is secured by subjecting the public
accounts to audit by an independent authority - the Comptroller and Auditor General and further
the examination of his report by a special committee of parliament called the public Accounts
Committee. A committee of parliament is preferred because first, that august body has no time to
undertake the detailed examination of the report. secondly, the scrutiny being essentially

93
technical can best be done in a committee, and lastly the non-party character of the examination
can be possible only in a committee and not in a House.

In India, the Public Accounts Committee was first created in 1923. with the coming into force of
the Mont ford reforms in 1921. Under Article 151 of the Constitution, public accounts and audit
reports are to be laid before both the Houses of the Parliament. It was, therefore, within the
competence of the Rajya Sabha in exactly the same manner as for the Lok Sabha, to appoint its
own Public Accounts Committee, to conduct an examination of public accounts.

The PAC is an annually elected body of parliament, the mode of election being the proportional

Representation by single transferable vote system. The underlying object is the representation of
the main political parties on the committees in proportion to their respective strength in
parliament. The Chairman of the committee generally belongs to the ruling party although on
two occasions opposition members in Lok Sabtla have also been elected to the office.

The function of the committee is to satisfy itself:

1. That the moneys shown in the accounts as having been disbursed were legally available for
and applicable to the service or purpose to which they have been applied or charged;

2. That the expenditure conforms to the authority which governs it; and

3. That every re-appropriation has been made in accordance with provisions made in this behalf
under miles framed by competent authority.

It shall also be the duty of the Public-Accounts Committee.

1. To examine, in the light of the report of the Comptroller and Auditor General, the statement of

Accounts showing the income and expenditure of state corporations, trading and manufacturing
94
Schemes and projects, together with the balance sheets and statements of profit and loss
accounts, which the President may have required to be prepared, or are prepared under the
provisions of the statutory rules regulating the financing of the particular corporations, trading
concern or project.

2. To examine the statement of accounts showing the income and expenditure of autonomous
and semiautonomous bodies, the audit of which may be conducted by Comptroller and Auditor
General of India, either under the directions of the President or by statute of parliament; and

3. To consider the report of the Comptroller and Auditor General in cases where the President
may have required him to conduct the audit of any receipts or to examine the accounts of stores
and stocks.

The committee may send for persons, papers and records. The conclusions of the committee are
submitted to parliament in the form of a report. To enable intensive examination, the committee
is now-a-days taking resort to the practice of conducting study groups dealing with specified
departments such as defence, railways etc. These study groups submit their reports to the
committee. Most of the issues are thus, settled through mutual discussion and exchange of ideas.

At best, the Public Accounts Committee probe relates to transactions completed and to the
damage done. It conducts a post mortem examination of public accounts. The committee's
findings are, nevertheless, of value as guidance and warnings. However, regular recurrence and
ever-changing pattern of official neglect or default brought to light, year after year, do suggest
that the value of the Public Accounts Committee deliberations is limited.

Importance

The Public Accounts Committee examines the accounts of the Government. The Government
expenditures are thoroughly examined and ensured that the Parliamentary limits are not
breached. The Government and ministers stay alert while making expenditures because they
know that the financial breaches, if any, will be revealed during the examination by P.A.C.
Because of the overwhelming importance of the Public Accounts Committee (P.A.C.) both the
government and the opposition try to gain control over the P.A.C. The government has an inbuilt
advantage in that, inevitably the majority of members of the P.A.C. belong to the ruling party.
But the opposition also has an advantage. It has now become a convention that the chairman of
the P.A.C. is a member of the opposition. But since the chairman is nominated by the Speaker,

95
whether an effective and assertive member of the opposition will be the chairman depends on the
strict neutrality of the Speaker.

Estimates Committee

The Estimates Committee was first created in April 1950, and its functions were enlarged in
1953. The Estimates Committee is a standing committee and is set up every year.

Its functions, methods of appointments and other relevant matters are laid down in the Rules of
Procedures and Conduct of Business in the Lok Sabha. It consists of 30 members all belonging
to the Lok Sabha who are elected according to the system of proportional representation by
means of single transferable vote system. It does not contain any member from Rajya sabha. The
Speaker nominates the chairman of the committee. If however, the deputy speaker is the member
of the committee, he automatically becomes the chairman. The ministers cannot be appointed as
the members of the committee.

The estimates committee has been entrusted with the following functions:

1. To report what economies, improvements in organization, efficiency and administrative

reforms consistent with the policy underlying the estimates may be effected;

2. To suggest alternative policies in order to bring out efficiency and economy in administration;

3. To examine whether the money is well laid out within the limits of the policy implied in the
estimates; and

4. To suggest the form in which the estimates shall be presented to parliament.

5. If the committee finds that a particular policy laid down by parliament is not leading to the
expected or desired results or is leading to waste, it has a duty to bring it to the notice of the Lok
Sabha that a change in policy is called for.

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The tenure of members is one year but continuity is maintained by re-electing members. The
committee is constituted sometime in June and it starts working from July. It prepares its plan of
work for the year by selecting such of the estimates as may seem fit to it. The office of
committee collects and collates the relevant material.

The papers are put before the committee for preliminary scrutiny and further information, if
needed, is collected. It may constitute sub-committees. The special sub-committees issue a
questionnaire :8 the concerned ministries for furnishing full and complete answers to the points
raised. The committee or the subcommittee examines these. Thereafter, the examination of the
departmental officers takes place. The committee has the power to send for papers, persons and
records. The report that is in the form of recommendations is then submitted to the Lok Sabha.
There is no regular debate on the report. The members, however, copiously refer to the report
during discussion on the budget and demands for grants.

The report of the Estimates Committee usually contains three types of recommendations

- Recommendations for improving the organization;

- For securing economy;

- For providing guidance in the presentation of the estimates.

The committee has always interpreted its term of reference in a liberal way. It takes the view that
economy, efficiency and organization are interconnected. The Estimates Committee is, thus,
performing a useful work. Its reports are published and the resultant publicity helps build public
opinion. The government has accepted a majority of its recommendations; as is revealed from
the reports on the implementation of recommendation submitted by the Estimates committee
from time to time. The ultimate success of the committee, however, rests on the influence it
exercises on the government in its long-term thinking and planning.

The Estimates Committee performs an undoubtedly useful role in Indian governmental system. It
keeps the machinery of Public Administration under parliamentary scrutiny, which is a very
wholesome feature. By highlighting the shortcomings and mistakes of public organizations, it
acts as a kind of standing committee on administrative improvement. This role is quite
significant, for the government generally accepts most of the recommendations made by it;
secondly, the fear of possible exposure by this committee keeps the civil servants more cautious
97
and careful in their administrative actions. The Estimates Committee work is no doubt in the
nature of a post mortem but in the process it does reach the evildoers and their names and deeds
are publicized. This has a deterrent effect. Thirdly, the Estimates committee publishes its report
and the wide publicity given to its findings and recommendations influences and shapes public
opinion. A democratic government is always responsive to it.

Similarities between Public Account Committee (PAC) and Estimates Committee

1. Both are financial committees and both are standing committees of parliament

2. Both find their origin in British Era

3. Members of both are elected and chairmen of both are nominated by speaker.

4. A minister cannot be member or chairman of any of them.

Differences between Public Account Committee (PAC) and Estimates Committee

1. While PAC has 22 members, Estimates Committee has 30 members.

2. While PAC members belong to both houses of parliament, Estimates Committee members
belong to only Lok Sabha

3. While PAC chairman is from opposition, Estimates Committee Chairman is always from
ruling party or dispensation

3. While Estimates committee scrutinizes the Estimates, PAC scrutinizes the appropriation and
manner of spending. Thus, work of Estimates Committee is ex-ante analysis while that of PAC is
ex post facto analysis

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 UNIT –V

Very short type questions-

Q.1.What is policy?

Ans-Policy means a decision as to what shall be done and how, when and where. According to
Dimock, policies are "The consciously acknowledged rules of conduct that guide administrative
decisions".

Thomas Dye gives a very brief definition. He says public policy is "Anything a government
chooses to do or not to do." He also says that public policy making is a goal oriented behaviour
on the part of governments.

Q.2.What is planning?

Ans- Planning in its broadest sense means systematic preparation for action. Every action, unless
it is the result of sudden impulse, is preceded by some preparation, conscious or unconscious.
Planning, therefore, is inherent in all human activity, individual or collective. In a great
enterprise involving the co-operative effort of many, role of conscious planning is more explicit
and pronounced than in the work of single individual or small groups.

Q.3.What is niti aayog?

Ans-Niti aayog is a policy think tank of the govt of india established with the aim to achieve
sustainable development goals and to enhance cooperative federalism by fostering the
involvement of state govts of india in the economic policy making process using a bottom uo
approach.it formed on 1 jan 2015 to replace planning commission of india.

Q.4.What is planning commission?

Ans-the planning commission was an institution in the govt of india which formulated india’s
five year plans.

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Long type questions-

Q.1. what is Policy? Explain the basis of policy making process.

or

Q.2. what do you understand by 'Policy'? What are the bases and factors influencing
policy-making?

or

Q.3. what is NITI Aayog? Explain its main objectives.

Ans-Meaning

Policy means a decision as to what shall be done and how, when and where. According to
Dimock, policies are "The consciously acknowledged rules of conduct that guide administrative
decisions".

Thomas Dye gives a very brief definition. He says public policy is "Anything a government
chooses to do or not to do." He also says that public policy making is a goal oriented behaviour
on the part of governments. It provides a standard by which public policies can be evaluated.
Sometimes policy-making is confused with decision-making. Although they are closely related,
they are not the same. Policy-making involves decision-making but every decision is not a
policy-decision. Generally decisions are taken by the administrators in their day-to-day work
within the existing framework of policy. Policy-decisions thus provide a sense of direction to the
courses of administrative action.

R.K .Sapru mentions the following stages or sets of decisions in the process of rational policy-
planning:

Policy Making Process

Discerning Problem

Appraisal ← Review ← Policy Choice

↓ ↑
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Formulation of alternative Courses of action → Forecasting Consequence

WHO MAKES POLICY

There are two channels of policy-making, one from the people through their elected
representatives in the legislature and the ministry, and the other from the administrative officials
to their own chiefs. In Parliamentary countries, the two channels converge, in the more important
cases, at a common point – the cabinet, which is the hyphen which joins the executive and the
legislature together. The two channels, however, are never quite independent of one another, for
legislative policy-making may be promoted by the administrative agencies, and administrative
policy may be influenced and determined by the Acts of the legislature.

WHO MAKES POLICY

The Executive Political Parties

Judiciary

PressureGroups
Administrative Agencies

Legislature

Individual Citizens

1. Legislature

The policy laid down by the legislature finds expression through the laws made or resolutions
passed by it. Usually it lays down the broad objects which administration is to pursue, and in
more important cases, also the machinery and the procedure through which they are to be
pursued. It is the Cabinet or the party in power which completely dominates the legislature in
modern states. Therefore power is not vested in the legislature as such, but in the party or groups
which at a particular time dominate its procedure.

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2. The Executive

In parliamentary system of government the executive means real or de facto executive i.e. The
Cabinet and not the nominal or de jure executive which is either the president or the king. It is
the former which is the top-most policy-making body in the state. One of the functions of the
Cabinet is to formulate policy whether economic, political or external. It is the Cabinet which
decides the policies which are to be placed before the legislature for its sanction.

3. Administrative Agencies: Primary and broad policy is no doubt made by the legislature, but
even where the initiative for it comes from the legislature itself or the ministers, administration
has to help with facts, data and criticism to give it a workable shape. Besides, no policy can be
complete In all its details at its first formulation by the legislature which has neither the
necessary time nor the knowledge to incorporate those details. In the developing countries like
India, the administrative services or bureaucracy plays a demonstrative and convincing role in
the policy-making process. The reason is that policy-making institutions like electorate,
legislative bodies, interest associations, occupational groups, competing political parties in these
countries are weak and fragmented.

4. Judiciary

Normally the function of the judiciary is to interpret and apply the law as made by the
legislature in the cases brought before it. Therefore ordinarily policy-making is outside its
purview. But in countries like the United States and India where the judiciary exercises power of
judicial review, the courts have often played an important role in policy-making.

Judicial review is the power of courts to determine the constitutionality of actions of the
legislature and the executive, and to declare them null and void if they are in conflict with the
provisions of the Constitution. It has developed many laws in the form of common law and
equity. There the courts are playing a more positive role not only by specifying the limits to
government action, but also by directing what it must do to meet legal or constitutional

102
obligations. In India too several decisions of the courts have influenced the course of public
policy.

5. Political Parties

Usually every political party has its programmes or policies. These programmes, policies or
values are presented to the people in the form of manifestoes before the election in order to gain
their support. The professed purpose of the manifesto is that in case that party comes to power, it
will implement the policies contained therein and which are promised to the people. Since the
government is formed by the leaders of the political party which wins majority of seats in the
legislature, party leadership engages in the formulation of public policy to which it is committed.

6. Pressure Groups

They constantly try to protect the interests of their members either by

Pressurizing the government or bureaucracy to take decisions which are favorable to them or

refrain from taking decisions which, in their view, are likely to go against the interests of their

Members.

7. Individual Citizens

In the present age it is not possible for a government to impose policies on the citizens on a
permanent basis if such policies do not reflect their will. Public policies have to be consistent
with the interests of the citizens. A democratic government cannot adopt policies to which large
body of citizens is opposed. The exercise of the right to vote enables the citizens to make a
choice of public policies.

BASIS OF POLICY MAKING

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Policy, whether made by the legislature or the executive must be based on accurate factual
information. There are four ways in which administration collects the necessary data and
information, namely,

(1) From its own internal reports, records and statistics,

(2) From non-official organizations,

(3) From special investigations conducted by commissions or committees of enquiry, and

(4) From research and study.

FACTORS INFLUENCING POLICY FORMULATION

First

And foremost influence on policy-making is that of the environment in which a political system
operates. Environment broadly comprises institutions (economic and social), history, law, ethics,
philosophy, religion, education, tradition, beliefs, values, symbols, myths etc., which may be
described as material as well as non-material culture. The reason being that policy-makers
whether politicians prohibit or bureaucrats are the product of their society. Policies of a
government in a capitalist developed economy will certainly be different from those of the
government in a socialist or under-developed economy.

Secondly

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 External environment is also an important variable in policy-making. It has to keep in view,
while formulating policies, its security perceptions, policies of other states, its own obligations to
International law and international institutions, domestic situation etc. Change in the
international environment often dictates changes in the domestic and external policies.

Thirdly

Ideology has played considerable part in the policies of the states in recent times. Ideology may
be defined "as a self-contained and self-justifying belief system that incorporates an over-all
world-view and provides a basis for explaining all of reality." Liberalism, nationalism, fascism,
communism, etc., are all ideologies. They influence policies and actions of the governments. The
ideology of a state helps to determine both the methods it will adopt and the objectives it will
pursue.

Fourthly

Political leadership and personalities of the leaders are one of the several factors influencing
policy. Each minister or prime minister has his own vision or ideas which he wants to translate
into action when he assumes office. That he tries to do through the policy he formulates.

Fifthly, administrative policy must be consistent with the Constitution, laws of the land and the
wishes of the legislature in parliamentary system of government. Lastly, a policy which impinges
on the work or sphere of more than one department must be cleared with everyone of them.

In the end it must be said that policy-making is a long-drawn process involving a large number
of people at various stages.

POLICY MAKING IN INDIA

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The policy making in India, as in any other country, is necessarily influenced by its environment
which means its constitutional framework, political, social and economic institutions, etc.
Therefore the governments whether in the Union or in the States have to function within the
parameters set by the Constitution of our country. The Constitution in its preamble and the
chapters on Fundamental Rights and Directive Principles of State Policy, provides a direction
towards which the administration ought to proceed. The actual operation of the government may
not always conform to its formal provisions, yet it is difficult for the administration to openly
bypass it or oppose it.

The Constitution establishes federal polity in India. Therefore the policy-making process has to
content with the federal system. The Indian federalism has certain unique features. It is evolved
out of a unitary system, and continues to have a strong unitary bias. Besides assigning powers to
the Union Government and the States through the Union List and State List respectively, it has a
long list of subjects in the Concurrent List in which the Centre has over-riding powers.
Financially also the States are heavily dependent on the Central Government. These and other
factors enabled the latter to dominate policy-making vis-a-vis the States during the period of
Congress rule at the Centre.

Another aspect of the constitutional arrangement in India is the parliamentary form of

government. Under this scheme, Parliament is the fountain of executive power, subject only to
the Constitution. Public policymaking gets the stamp of authority only after Parliament has
approved it. Whether it is the Five-year Plan, or Industrial Policy or population policy or the
New Education Policy, the finality comes to it only after it has been passed by Parliament. But as
it has happened in other modern states, in India too the authority of Parliament has declined. The
fall is particularly noticeable in recent years. The legislative leadership has passed into the hands
of the Executive. Therefore the policies are decided outside the Parliament and got

Approved by it only later. The ministers announce their policies in advance because they are sure
of their approval by Parliament. Therefore the role of Indian Parliament in policy making has
become more formal than real.

Loss stated in the earlier paragraphs, a policy is nearly always the result of cooperative effort of
many groups and individuals, officials and non-officials. In the Central Government in India, the
principal policymaking functionaries are the Prime Minister and his office including his advisers,
Cabinet ministers and the secretaries. There are nearly 400 public policy-makers at the Central
level and another 400 in the States.

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Several institutions are engaged in policy formulation - Cabinet, Prime Minister and his office;
Cabinet Secretariat, Secretariat, Planning Commission, National Development Council.

Besides the above institutions there are several other bodies which influence policy-making in
India, as for example, advisory and consultative bodies attached to various ministries and
departments, Standing Labour committee, Indian Labour Conference, Import and Export
Advisory Committee, University Grants Commission, various pressure groups, non-
governmental organizations, professional bodies, etc. like environmental groups, human rights
and civil liberties groups, chambers of commerce, trade unions, Bar councils, political parties,
the press.

The coalition governments came into power during 1977-79, 1989-91 and since 1996 enjoy
much less freedom in policy-making because they have to reconcile the different perceptions of
political parties participating in the coalition.

The Cabinet

The Cabinet is the highest policy-making body in the parliamentary system. it provides direction
to the ship of the state. Policy matters, particularly important ones, require the approval of the
Cabinet.

It is only the most important matters which are referred to the whole Cabinet. The Cabinet
generally is a ratificatory body but sometimes new policy items may be thrown up at its
meetings. The effectiveness of the Cabinet as a policy-making body rests on the Stature of its
members vis-a-vis the Prime Minister. A strong, popular and dominating Prime Minister tends to
reduce the importance of the Cabinet.

The Cabinet Secretariat

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The role of the Cabinet Secretariat in policy-making is not clear. Primarily, it is a coordinating
agency. It functions under the direction of the Prime Minister. It plays coordinating role in
decision-making at the highest level. Its functions include submission of cases to Cabinet and its
committees, reparation of records of decisions taken and follow-up action on their
implementation. The authority of the Cabinet secretariat has been eclipsed by the rise of the
Prime Minister' Office (PM. 0.).

The Prime Minister and his Office

In our system of government, the President is only the head of state, a nominal or formal
executive. The real authority lies in the hands of the Prime Minister who is the de facto executive
- The head of the Government. He is also the head of the Cabinet. His office is what he chooses
to make it. He is the source and the final authority as far as policy-making in the government is
concerned. He enjoys a special position in policy-making and other ministers play varying levels
of subordinate role.

The role of the Prime Minister's Office (P.M.O.) has radically changed over the years. Lal
Bahadur Shastri on becoming Prime Minister in 1964, appointed L. K. Jha as the first Secretary
to the Prime Minister, since he was not very confident about dealing with foreign policy and
economic matters. It all started with one Secretary and three joint secretaries and a modest staff.
It evolved under Mrs. Gandhi into the super government. What was conceived as an institutional
'last check' became an instrument of individual aggrandizement.

When the Janata Government took office in 1977, Morarji Desai retained the office of the
secretary to the P.M. But the Cabinet Secretary had a very good rapport with and instant access
to the Prime Minister. Under Rajiv Gandhi, the P.M.O. underwent distortions in its composition,
task and work culture.

The Central Secretariat

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 Of all the policy-making organs in the Government of India, the secretariat stands on an
exceptionally high pedestal. Indeed, it is designed as the policy-making organ, being the seat of
the Government of India. It was considered structurally separate from implementation. However
it was linked with the implementing agencies through the staffing policy for the Secretariat. The
middle and the higher management level positions in the Secretariat are filled by deputation of
officers from State Governments as well as from the various Central services. This is called the
tenure system. The philosophy behind it is that those who are involved in policy-making or
advising the ministers on policy matters, must have the firsthand experience of practical
difficulties and problems in the field faced by the public servants in a diversified country like
India.

The Planning Commission

The Planning Commission is a staff agency and therefore has to function as an advisory body to
the Government of India. Since India adopted socialistic pattern of society as its goal in the early
1950s, the Planning Commission acquired an important role. It had to prepare Five Year Plans
not only for the Central Government but also for the States. Therefore it exercised important
influence over the formulation of policies relating to the entire field of administration. It often
began to be described as 'supracabinet'. It acquired prestige because it is headed by the Prime
Minister himself and includes a few important Central Ministers.

National Development Council

The National Development Council is yet another body involved in policy-making. It consists of
the Prime Minister, a few Central ministers, and chief ministers of all the States and Union
Territories, and members of the Planning Commission. Before a Five Year Plan is finalized and
presented to the Parliament for its approval,

it has to be considered by the National Development Council. One of the functions of the
Council is to consider important questions of social and economic policy affecting national
development. However its working has not been entirely satisfactory. Its meetings have been
infrequent, and discussions in them occasionally non-serious. In theory, the N.D.C. is the
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sovereign body, and the Planning Commission is made subordinate to it. But in practice, it has
got largely reduced to the level of a decorative body.

It must be made clear at the end that the identification of major policy-making organs in the
Central Government is not a sure proof of their compulsory involvement in the exercise. The
perceived gravity of a proposed policy is not the only factor which determines as to which
agencies are to be consulted, in which order and what weight age will be given to it. Sponsorship
of the policy is itself very important.

In fact, many interests, many factors and many perceptions are at work behind policy-making.
The situation may not be the same even if similar problems come up again. So policy-making is
a very complicated process.

Q.4. what do you understand by the term 'Planning'? Explain in detail the machinery and
types of planning?

Q.5. Discuss the Planning Commission of India.

Ans-

PLANNING

Planning in its broadest sense means systematic preparation for action. Every action, unless it is
the result of sudden impulse, is preceded by some preparation, conscious or unconscious.
Planning, therefore, is inherent in all human activity, individual or collective. In a great
enterprise involving the co-operative effort of many, role of conscious planning is more explicit
and pronounced than in the work of single individual or small groups.

Types of Planning

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Since planning is a technique common to all varieties of human activity it is somewhat
misleading to distinguish between types of it. No matter to what field of activity it is applied, its
essence is the same, i.e. gathering all the data relevant to the task in hand as far as possible and
then to chalk out a systematic programme for accomplishing it. Though essentially all planning
is, thus, one, yet in our time. it is more in evidence in certain fields than in others, and on the
basis of these, it is usual to distinguish between three principal types of planning, namely;

Planning. These categories must not, however, be viewed as water-tight compartments, for to
varying extents, they enter into one another.

Physical Planning

The two best known instances of physical planning are city and country planning, and the
planning of natural resources of the country as a whole.

City planning implies the anticipation of a city's needs and providing for it. It aims at guiding
and controlling the development of cities in an orderly fashion instead of leaving them to grow in
a haphazard manner. It is chiefly concerned with the street layout and the transportation system
of the city, location of public buildings, civic centers, water supply, lighting and drainage, parks

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and open spaces, and zoning, which means marking out different parts of the city site for
residential, commercial, and industrial purposes.

Nowadays, however, it is recognized that city planning must also include social planning i.e.
provision of adequate housing, educational facilities, medical facilities, business and industry to
afford employment to the dwellers; in fact, arrangement to meet all the varied needs of the
inhabitants. There must also be financial planning to meet the cost of carrying out the city plan.
Today city planning is, therefore, no more physical planning.

The other notable example of physical planning is the planning of the natural resources of a
country as a whole. This type of planning is concerned with the conservation, development and
economic exploitation of the natural resources - soil, water-power, mineral and forest wealth of a
country for the best possible advantage for the present as well as the future generations. Some of
these resources like minerals are limited in quantity while others like soil are subject to
deterioration by the action of natural forces of sun, rain and wind. Reckless use or want of care in
respect of gifts of nature may result in distressing shortages crippling the nation's economy in the
long run. Nations have, however, awakened to the need of natural resources planning only
recently.

Social and Economic Planning

Economic planning involves advance determination by state agencies of the needs of the country
for the more essential economic goods and services, over a given period. arranging them into a
scheme of priorities, and controlling both production and consumption with a view to their
fulfillment within the period.

Such planning is always geared to the realization of some social objective like provision and
maintenance of full employment, raising of per capita national income or standard of living, or
achievement of national self-sufficiency in some essential goods or services. That is why
economic and social planning go together and must be considered together. Social and economic
planning involves definite governmental interposition in the economy of the country.

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Administrative Planning

Administrative planning is a phase of management and involves drawing up a programme of

operations in advance and the provision of the requisite organization, personnel, material and
procedure for carrying it out. In its comprehensive sense administrative planning embraces
problems of organization, budgeting, personnel, procedures - in fact all the phases of the
'POSDCORB' activities. Organization is nothing but a plan of working relationships among the
personnel; and the budget is only another name for the financial plan. The more comprehensive
administrative planning is, the less will be the delay, the waste, the crises and the breakdowns in
carrying out the operations.

Planning in India

A National Planning Commission was set up in March, 1950 to draw up a concrete plan and the
first five year plan was formulated by it and reported upon on July 9, 1951. The planning
machinery was supplemented further by the establishment of a National Development Council in
1952, of a Programme Evaluation Organization - for assessing the success of Community
Development and National Extension Services in October, 1952, and of a Committee of Plan
Projects in 1956. These and their branches spread all over the country at various levels constitute
the machinery for planning in India and we now briefly notice their organization and functions.

The Planning Commission

The Planning Commission consists of the Prime Minister who is also the Chairman, minister of
planning, minister of finance, defance minister, and 3 to 7 other members one of whom is an
experienced public man and parliamentarian, another an educationist, and third a person of
administrative experience usually a retired civil service man. There is also a deputy chairman
appointed from among the members. The statistical adviser to the cabinet also attends the
meetings of the commission. The members of the commission have the same status and
emoluments as cabinet ministers. Each member is in charge of one or more subjects and directs
the study of problems relating thereto. All issues of policy are, however, dealt with by the
commission as a whole e.g. formulation of plans, modification therein, difference between the
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centre and states or members of the commission on matters connected with the plans etc. The
work of the Planning Commission is organized in three main branches namely

(a) The programme Advisers,

(b) The General Secretariat and

(c) The Technical Divisions.

Functions

The following functions to Planning Commission.

1. To formulate a plan for the most effective and balanced utilization of the country’s resources.

2. To determine priorities and to define stages in which the plan should be carried out.

3. To indicate the factors which retard economic development?

4. To make appropriate recommendations for facilitating the discharge of its duties, or on a

matter referred to it for advice by Central or State Governments.

5. To appraise, from time to time, the progress achieved in execution of the plan and
recommend necessary adjustments.

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The National Development Council

The National Development Council was set up in 1952. It consists of the Prime Minister as
Chairman, all Cabinet Ministers of the Union Government, members of the Planning
Commission, all the chief ministers of the states and representatives of the Union Territories.

Other ministers also may attend by invitation when any matter relating to their department comes
up. There is a smaller standing committee consisting of a few union ministers and 9 chief
ministers of states. The secretary of the Planning Commission is also the secretary of the
National Development Council.

The first and foremost function of the N.D.C. is to effect co-ordination of effort between the
Union Government, the Planning Commission and the State governments. The states are
autonomous in their sphere, but if planning is to be successful, concerted effort between the
Centre and the states in drawing up the plans, financing them, and implementing them is
essential. The N.D.C. provides the forum where such concerted effort is forged out by frank and
free discussions. Other functions of the NDC are –

(a) To review the working of the National Plan from time to time,

(b) To consider important questions of social and economic policy affecting the national
development, and

(c) To recommend measures to achieve the targets of the plan. to promote administrative
efficiency, to enlist popular co-operation, and to ensure balanced and rapid development of all
parts of the country including the less advanced regions and sections of the community.

Although the National Development Council has neither the sanction of the Constitution nor of
any statute of Parliament behind it, and in theory is no more than an advisory body to the
Planning Commission, in its actual working it has become a policy-making body.

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Objectives-

The National Development Council as established with the following objectives:

1. To secure cooperation of state in the execution of the Plan. This the chief objective of National
Development Council

2. To Strengthen and mobilize the efforts and resources of the nation in support of the plan.

3. To Promote Common economic policies in all vital spheres,

4. To ensure balanced and rapid development of all parts of the country.

Functions

The National Development council was assigned a set of functions by the 1952 Resolution
(which created National Development Council). These functions were. Redefined and revised in
1964 on the recommendations of the Administrative Reforms Commission of the of India. They
are as follows.

1. To prescribe guidelines for preparation of the National Plan.

2. To Consider the National Plan as prepared by the Planning Commission.

3. To make an assessment of the resources which are required for implementing the Plan and to
suggest measures for augmenting them.

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4. To consider important questions of social and economic policy affecting national
development.

5. To review the working of the National Plan from time to time.

6. To recommend measures for achievement of the aims and targets set out in the National Plan.

The Committee on Plan Projects: This committee was set up in 1956 in accordance with a
decision of the National Development Council. The committee consists of the Home Minister as
the chairman and the ministers for planning, finance and the Deputy Chairman of the Planning
Commission as members. Besides these, two chief ministers of the states for every category of
the project, and the central minister to whose jurisdiction the project under consideration belongs
are also nominated to the committee by the Prime Minister. The joint secretary in the Ministry of
Finance, who is director of the and M division and Head of special Reorganization Unit, is its
secretary. The functions of the committee are:

a) To organize investigations and inspection of important projects by specially selected teams;

b) To launch studies to evolve suitable forms of organization, methods, and standard procedures
to secure economy and efficiency in the execution of projects;

c) To provide for continuous efficiency in the execution of projects;

d) To undertake any other tasks assigned by the National Development Council.

The Programme Evaluation Organization

The Programme Evaluation Organization was established in 1952 to assess the working of the
Community Development and National Extension Service Programmes. It functions under the
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directions of the Planning Commission. It consists of a director, two deputy directors, eight
research officers and other staff.

The functions of the Programme Evaluation are to make periodical evaluation of the methods
and results of the community development programme to judge what methods have proved
effective or otherwise and to find out the reasons, and to assess the influence of the Community
Development Programme upon the life and economy of the country. Evaluation reports are
prepared and issued from time to time.

Socio-Economic Objectives of Planning

Four socio-economic objectives have been set up by the planners in India. These are

(i) to increase production to the maximum possible extent so as to achieve higher level of
national and per capita income;

(ii) to achieve full employment;

(iii) to reduce inequalities of income and wealth; and

(iv) to provide social justice.

Planning Procedure in India

The planning procedure in India falls into four stages. At the first stage, the Planning
Commission prepares, in consultation with union ministries and state governments rough
sketches of schemes and projects which appear to be necessary. In the light of available
resources, it lays down a scheme of priorities and also broadly determines how these resources
will be distributed between the centre and the states. After the tentative approval of the National

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Development Council, these schemes and projects are communicated to the appropriate central
ministries and state governments.

At the second stage, the various central ministries and State governments draw up their own
plans in the light of the allocations received. For this purpose, the state governments have their
own planning machinery both at the state and the district level. Generally, each state department,
especially the development departments, has its own planning unit or cell. The plans prepared by
these are co-ordinated by an interdepartmental committee consisting of the secretaries of the
departments concerned. The Chief Secretary is its chairman. At the district level, there are
district planning committees which co-ordinate the plans received from blocks and village
Panchayati. The district plans are co-ordinated at the state level by an officer generally called the
Development Commissioner. Finally, there is a state Planning Board or Committee which co-
ordinates the department and district plans. The third stage begins when the plans of the central
ministers and the state governments have been received by the Planning Commission. At this
stage, the various plans are integrated into a coherent draft national plan.

This draft plan is published for public comments, criticism and suggestions. Finally, at the
fourth stage in the light of criticism and suggestions from the public, the central ministries and
states make efforts through negotiation and discussion to secure agreement, and the plan as
agreed to, is placed before the Union Cabinet for approval and, when approved, it is referred to
the National Development Council for its recommendations. After these recommendations have
been considered and incorporated in the plan by the Planning Commission, the plan as now
finalized, is placed before the Parliament for its sanction. After this sanction is given, the plan
becomes the National Plan for the next five.

1. Visualizing our aims

Making plans enables us to clarify what our aims are. This is absolutely essential if we want to
be able to achieve those aims.

2. Achieving our goals

Having a clear plan of what we need to do makes it so much easier to achieve our goals.
Whenever we are unsure about what to do, we simply have to refer to the plan and we can get
right back on track.

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3. Working with others

When we are working with others, it is so important that everyone is on the same page. Having a
plan that you have all agreed on will enable you all to work together effectively because
everyone will be clear on what is being done when, and by whom.

4. Self discipline

Having a plan that you need to stick to is a fantastic way of staying self disciplined. Pinning a list
of study goals to the wall above your desk, for example, is a great way to keep yourself
disciplined with your studies.

5. Staying motivated

Once you have got everything laid down into a plan, that plan will serve as a powerful
motivation for you to get everything done. Just take a look at your plan from time to time and
you will feel fresh energy and enthusiasm!

6. A legal requirement

For certain types of projects, it is a legal requirement to submit a plan of what you are going to
do to the relevant authorities. For example, if you are applying for a loan to finance your
business activities, you will often need to submit an accurate business plan with a budget before
you can access your money. There are plenty of people who can offer guidance on drawing up
the best plan for your business, including accountants, fellow business-people and legal
professionals.

7. A record

Once your project is completed, your plans will provide excellent records of the project. They
will also help to jog your memory if, some years in the future, you want to be able to remember
the details of the project, or start a similar project in the future. Often, it is a legal (or at least
bureaucratic) requirement that we keep all of our plans stored for a certain amount of time as this
keeps everything about our projects transparent to others.

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8. Visualizing the future

It can be hard to think about the impact of our actions in the future. However, when we work on
a detailed plan of our actions, it becomes so much easier to visualize how our actions are going
to impact on the future. Once we can visualize the future, moreover, we can adjust our plan
accordingly to ensure that we get the best outcome.

9. Enjoyable

The art of making a plan is something enjoyable in its own right! Organizing our ideas and
apportioning resources is actually pretty fun. If you love arranging your bedroom and getting
everything neat and tidy, then chances are you will also enjoy planning. Planning can fill us with
positive feelings, and it is also an achievement in its own right – so if you want to take the
plunge with your next project and feel good about it in the process, why not make yourself a
plan?

10. Showing determination

If we have a plan for what we want to do – whether that is a list of guests for our next party or a
large two dimensional layout of a house we want to build – that instantly shows other people that
we mean business. Showing others our plan demonstrates that we have a clear idea of what we
want to do, and that we know how are going to do it. When it comes to pitching our business
ideas, for example, having a good plan is absolutely essential if we want potential investors to
take us seriously.

Q.6. Explain the meaning, types, machinery and administrative personnel of planning.

Ans-Planning Machinery, Personnel and TechniquesSince planning pervades the entire range
of administrative activity, it is not desirable to isolate and concentrate it in anyone agency to the

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exclusion of others. Every unit of administration must plan for itself and the final plan must be
an integrated sum-total of the particular plans prepared by the various units. The particular plans
of the various units have, however, to be reviewed, co-ordinated, and fitted into one
comprehensive national-plan and for this a central planning agency is necessary.

In India, there is a National Planning Commission consisting of the Prime Minister as chairman
and the Ministers for Finance, Food and Agriculture, Planning, Irrigation and Power, and
Commerce and Industry as members. It is necessary that the central planning agency must be in
close relationship with the political chief to ensure the acceptability of the plan prepared.

The task of the central planning agency is not so much to do the planning itself as to stimulate,
guide, and encourage the operating units to do so, and to review and coordinate the plans
prepared by the latter. Thus the plan gets closely linked up with operations, and the danger of its
suffering from impracticability is minimized. The central planning agency has the advantage of
imaginativeness and breadth of vision which may not be present in the same degree in the
operating units, while the latter are in the best position to know what is or is not practicable from
the point of view of execution. Close co-operation between the two thus ensures a balanced and
workable plan.

The execution of the plan may be arranged for in one of the two ways. The planners themselves
may be responsible for supervising the execution of the plan, or planning and operations may be
separated and execution of the plan may be entrusted to the usual or specially created executive
agencies. It is said in favour of the latter alternative that planning and execution call for different
qualities of mind so that a good planner may not necessarily be a good administrator. Also, pre-
occupation with problems of administration, may deflect the planners from their main task of
planning. It is impossible, however, to dogmatise about the one solution or the other. Under
appropriate conditions, both have been found to work satisfactorily.

Planning may be long-range as well as short-range. Really the two are inter-related, for short-
term plans in order to make sense must be part of a long-range objective. The desire for quick
results on the part of the people and Government may result in the neglect of long-term planning.
Such neglect should be guarded against.

Planning to be realistic must be based on extensive research and fact finding. These lead to a
forecast of the possibilities and needs of the situation which the plan has to tackle.

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 There are many techniques of planning. One of the most important among them is to fix certain
targets or standards of performance in the various fields. Next the 'gap' between the target and
what exists is found out. A scheme of priorities is laid down in the light of the resources
available and finally a programme for achieving the desired targets is drawn up. The targets may
be financial, i.e., so much is to be spent on a particular activity, or they may be physical, i.e., so
many millions of tons of more food are to be grown up. So much goods of a particular kind are
to be produced. Finally, besides particular objectives, a good plan should have one over-all
objective to which the former should contribute. This overall objective may be increase in the
national income, provision of full employment, or national self-sufficiency in certain vital fields.

A good plan must be characterized by flexibility i.e. it should lend itself to modifications and
adjustments in the light of actual circumstances.

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