Class 12 Economics: Local Governance in India - Rural & Urban Local Bodies - Composition & Functions
I. Multiple Choice Questions (MCQs)
The 73rd Constitutional Amendment Act is related to:
a) Urban Local Bodies
b) Rural Local Bodies
c) Central Government
d) State Government
Answer: b) Rural Local Bodies
The 74th Constitutional Amendment Act deals with:
a) Panchayati Raj Institutions
b) Municipalities
c) District Planning Committee
d) State Election Commission
Answer: b) Municipalities
Which of the following is the lowest tier of the Panchayati Raj System?
a) Zila Parishad
b) Panchayat Samiti
c) Gram Panchayat
d) Gram Sabha
Answer: c) Gram Panchayat
The direct elections for the members of the Gram Panchayat are held for:
a) Sarpanch
b) Ward Members
c) Both Sarpanch and Ward Members
d) Only Sarpanch
Answer: c) Both Sarpanch and Ward Members
The head of the Zila Parishad is usually:
a) Block Development Officer
b) District Collector
c) An elected chairperson
d) A nominated member
Answer: c) An elected chairperson
Which body prepares the development plans for the entire district?
a) Gram Panchayat
b) Panchayat Samiti
c) District Planning Committee
d) Zila Parishad
Answer: c) District Planning Committee
The minimum age required to contest elections for Panchayati Raj institutions is:
a) 18 years
b) 21 years
c) 25 years
d) 30 years
Answer: b) 21 years
Which of the following is NOT a mandatory provision of the 73rd Amendment Act?
a) Establishment of State Election Commission
b) Reservation of seats for SC/ST
c) Reservation of seats for OBCs
d) Three-tier structure of Panchayati Raj
Answer: c) Reservation of seats for OBCs
Which of these is an example of an Urban Local Body?
a) Gram Panchayat
b) Panchayat Samiti
c) Municipal Corporation
d) Zila Parishad
Answer: c) Municipal Corporation
The Mayor is the head of a:
a) Municipal Council
b) Nagar Panchayat
c) Municipal Corporation
d) All of the above
Answer: c) Municipal Corporation
Which urban local body is constituted for transitional areas (areas in transition from rural to urban)?
a) Municipal Corporation
b) Municipal Council
c) Nagar Panchayat
d) Cantonment Board
Answer: c) Nagar Panchayat
The primary function of an urban local body includes:
a) Providing agricultural loans
b) Maintenance of law and order
c) Provision of civic amenities like water supply and sanitation
d) Conducting national elections
Answer: c) Provision of civic amenities like water supply and sanitation
The sources of income for Urban Local Bodies primarily include:
a) Grants from Central Government only
b) Property tax, octroi, and user charges
c) Sales of agricultural produce
d) Donations from NGOs
Answer: b) Property tax, octroi, and user charges
Reservation of seats for women in Panchayati Raj Institutions is:
a) 1/4th
b) 1/3rd
c) 1/2
d) 2/3rd
Answer: b) 1/3rd
The State Finance Commission reviews the financial position of:
a) Only State Government
b) Only Central Government
c) Local self-governments
d) Public Sector Undertakings
Answer: c) Local self-governments
Which of the following is a function of the Gram Panchayat?
a) Maintenance of public property
b) Collection of land revenue
c) Providing national security
d) Regulating international trade
Answer: c) Maintenance of public property
The executive head of a Municipal Corporation is the:
a) Mayor
b) Commissioner
c) Deputy Mayor
d) Chairman
Answer: b) Commissioner
The term of office for elected members of Panchayati Raj institutions and Urban Local Bodies is typically:
a) 3 years
b) 4 years
c) 5 years
d) 6 years
Answer: c) 5 years
Which Amendment introduced the concept of Wards Committees for cities with a population of 3 lakhs or more?
a) 73rd Amendment
b) 74th Amendment
c) 42nd Amendment
d) 44th Amendment
Answer: b) 74th Amendment
The primary purpose of establishing Local Self-Governance is to:
a) Centralize power
b) Decentralize power and promote people's participation
c) Increase the burden on state governments
d) Reduce government expenditure
Answer: b) Decentralize power and promote people's participation
II. Short Answer Questions
What is the main objective of decentralization of power through local self-governance?
Answer: The main objective is to promote people's participation in decision-making, ensure efficient delivery of local services, and empower local communities to address their specific needs and developmental priorities. It aims to bring governance closer to the people.
Name the three tiers of the Panchayati Raj System as established by the 73rd Constitutional Amendment Act.
Answer: The three tiers are:
Gram Panchayat (Village Level)
Panchayat Samiti (Block/Intermediate Level)
Zila Parishad (District Level)
List two mandatory provisions of the 73rd Constitutional Amendment Act regarding Panchayats.
Answer: Two mandatory provisions are:
Establishment of a three-tier Panchayati Raj system.
Direct elections to all seats in Panchayats.
Reservation of seats for Scheduled Castes (SC) and Scheduled Tribes (ST) in proportion to their population.
Reservation of one-third of the total seats for women.
Fixed tenure of five years for Panchayats.
What is the role of a Gram Sabha?
Answer: The Gram Sabha is the general body of all persons whose names are included in the electoral rolls for the Gram Panchayat area. It acts as the legislative body at the village level, responsible for approving the Gram Panchayat's budget and development plans, reviewing its performance, and ensuring transparency and accountability.
Mention two types of Urban Local Bodies in India.
Answer: Two types of Urban Local Bodies are:
Municipal Corporation (for large urban areas/metropolitan cities)
Municipal Council (for smaller urban areas/towns)
Nagar Panchayat (for transitional areas)
Briefly explain the composition of a Gram Panchayat.
Answer: A Gram Panchayat is composed of a Sarpanch (President/Chairperson) and several Ward Members (Panchas). Both the Sarpanch and the Ward Members are directly elected by the villagers. The number of Ward Members varies depending on the population of the village.
What are the primary functions of a Municipal Corporation?
Answer: The primary functions of a Municipal Corporation include providing essential civic amenities and services to urban residents, such as water supply, sanitation and waste management, public health, construction and maintenance of roads, street lighting, drainage, town planning, and public conveniences.
How does the State Election Commission contribute to local governance?
Answer: The State Election Commission is an independent body responsible for the superintendence, direction, and control of the preparation of electoral rolls and the conduct of all elections to the Panchayats and Municipalities. It ensures free, fair, and timely elections for local self-government bodies.
Identify two sources of revenue for Rural Local Bodies (Panchayats).
Answer: Two sources of revenue for Panchayats are:
Grants from the State Government.
Share in the proceeds of taxes collected by the State Government.
Levy of local taxes, fees, and cesses (e.g., house tax, market fees).
Income from property and enterprises owned by the Panchayat.
What is the significance of the District Planning Committee (DPC)?
Answer: The District Planning Committee (DPC) is mandated by the 74th Amendment Act to consolidate the plans prepared by Panchayats and Municipalities in the district and to prepare a draft development plan for the entire district. Its significance lies in ensuring integrated and holistic development planning at the district level.
III. Long Answer Questions (5 Marks Each)
1.Discuss the composition and functions of a Gram Panchayat in detail, highlighting its role in rural development.
Answer:
Composition: A Gram Panchayat is the basic unit of the Panchayati Raj system at the village level. It is composed of a Sarpanch (President/Chairperson) and several Ward Members (Panchas). Both are directly elected by the adult population (those above 18 years of age) of the respective ward/village. The number of ward members varies according to the village's population. There are reservations for Scheduled Castes (SC), Scheduled Tribes (ST), and women (at least one-third) in both membership and chairpersonship.
Functions: The Gram Panchayat performs a wide range of functions crucial for rural development. These include:
Civic Functions: Provision and maintenance of civic amenities like drinking water, street lighting, sanitation, drainage, public roads, community buildings, etc.
Developmental Functions: Preparation and implementation of village development plans, promoting agriculture, animal husbandry, cottage industries, rural housing, poverty alleviation programs, and primary education.
Social Justice Functions: Promotion of welfare of weaker sections, upliftment of SC/ST, and ensuring social harmony.
Administrative Functions: Collection of local taxes and fees, maintenance of village records, and acting as an agency for government schemes.
Role in Rural Development: The Gram Panchayat is vital for rural development as it brings governance closer to the people, enables their direct participation in planning and implementation, identifies local needs and priorities, and facilitates the effective delivery of government services and welfare schemes at the grassroots level. It empowers villagers to take charge of their own development.
2. Explain the significance of the 73rd and 74th Constitutional Amendment Acts in strengthening local self-governance in India. What major provisions did they introduce?
Answer:
Significance: The 73rd and 74th Constitutional Amendment Acts (1992) are landmark legislations that significantly transformed the landscape of local self-governance in India by granting constitutional status to Panchayats (rural) and Municipalities (urban) respectively. Before these amendments, local bodies were largely dependent on state governments and lacked constitutional sanctity, leading to irregular elections, financial weakness, and limited powers. These amendments provided a stable and democratic framework for local governance, making it a third tier of government.
Major Provisions (73rd Amendment - Panchayats):
Three-tier structure: Mandated a three-tier system (Gram Panchayat, Panchayat Samiti, Zila Parishad).
Direct Elections: Provision for direct elections to all seats in Panchayats.
Fixed Tenure: Five-year fixed tenure for Panchayats, with fresh elections within six months of dissolution.
Reservations: Mandatory reservation of seats for SC/ST (proportional to population) and women (at least one-third) at all three levels and for chairperson positions.
State Election Commission: Establishment of an independent State Election Commission to conduct local body elections.
State Finance Commission: Establishment of a State Finance Commission to review the financial position of Panchayats and recommend measures.
11th Schedule: Added 29 functional items to the 11th Schedule, delineating the powers and responsibilities of Panchayats.
Major Provisions (74th Amendment - Municipalities):
Three types of Municipalities: Provision for Nagar Panchayat, Municipal Council, and Municipal Corporation based on population and transition.
Fixed Tenure & Elections: Similar provisions for a five-year fixed tenure and elections within six months of dissolution.
Reservations: Similar reservations for SC/ST and women as in Panchayats.
Ward Committees: Provision for the constitution of Ward Committees within municipal areas.
District Planning Committee (DPC) & Metropolitan Planning Committee (MPC): Mandated the constitution of these committees for integrated planning.
12th Schedule: Added 18 functional items to the 12th Schedule, outlining the powers and responsibilities of Municipalities.
3. Describe the composition and functions of Urban Local Bodies (ULBs) in India, particularly focusing on Municipal Corporations and Municipal Councils.
Answer:
Types of Urban Local Bodies (ULBs): The 74th Constitutional Amendment Act categorizes ULBs into three types:
Nagar Panchayat: For transitional areas (from rural to urban).
Municipal Council: For smaller urban areas or towns.
Municipal Corporation: For large urban areas or metropolitan cities.
Composition:
Elected Members (Councillors/Corporators): The main body of a ULB consists of directly elected members (known as Councillors in Municipal Councils and Corporators in Municipal Corporations) from various wards within the urban area.
Mayor/Chairperson: The political head of a Municipal Corporation is the Mayor, and of a Municipal Council is the Chairperson. They are usually elected by the directly elected members or sometimes directly by the public (depends on state laws).
Standing Committees: These bodies assist in specialized functions.
Chief Executive Officer/Commissioner: An administrative head (IAS officer for Municipal Corporations, usually a state civil service officer for Municipal Councils) appointed by the state government, responsible for the day-to-day administration and implementation of policies.
Reserved Seats: Seats are reserved for Scheduled Castes (SC), Scheduled Tribes (ST), and women (at least one-third) similar to Panchayats.
Functions: ULBs are primarily responsible for providing essential civic amenities and services to urban residents. Their functions include:
Public Health: Sanitation, waste management, sewerage, public conveniences, disease control.
Public Works: Construction and maintenance of roads, bridges, public buildings, street lighting, water supply.
Planning and Development: Town planning, land use regulation, urban forestry, protection of environment.
Welfare Services: Slum improvement and upgradation, poverty alleviation programs, public amenities like parks and playgrounds.
Regulatory Functions: Registration of births and deaths, licensing of trades.
Fire Services: Providing fire-fighting facilities.
Education: Promoting primary and secondary education.
4. Analyze the financial resources available to Local Self-Government Institutions (both rural and urban) in India. What challenges do they face in terms of financial autonomy?
Answer:
Financial Resources: Local Self-Government Institutions derive their financial resources from various sources:
Taxes: Property tax (major source for ULBs), house tax, professional tax, entertainment tax, taxes on advertisements, vehicle tax, land revenue (for Panchayats).
Fees and Charges: User charges for services like water supply, sanitation, parking fees, market fees, licenses, building permits.
Grants: Grants-in-aid from the Central and State Governments. These often come with specific conditions.
Share of State Taxes: Share in the proceeds of certain taxes collected by the State Government (e.g., stamp duty, motor vehicle tax).
Loans: Loans from state governments, financial institutions, or even open market borrowings (for larger ULBs).
Non-Tax Revenue: Rent from municipal properties, income from municipal enterprises.
Recommendations of State Finance Commissions: SFCs recommend measures to improve the financial position of local bodies.
Challenges to Financial Autonomy: Despite these sources, local bodies face significant challenges in achieving financial autonomy:
Inadequate Own Revenue Base: Many local bodies, especially Panchayats, have a very limited capacity to generate their own revenue. The tax base is often narrow or poorly enforced.
Over-reliance on Grants: Heavy dependence on grants from state and central governments makes them financially dependent and limits their independent decision-making. These grants can be unpredictable or tied to specific schemes.
Lack of Fiscal Powers: State governments often retain control over significant revenue sources and limit the taxation powers of local bodies.
Poor Collection Mechanisms: Inefficient collection of property taxes, user charges, and other local levies due to administrative weaknesses, political interference, and lack of updated records.
Political Interference: State governments sometimes interfere with the financial decisions and resource allocation of local bodies.
Lack of Professional Staff: Absence of skilled financial management personnel at the local level.
Unfunded Mandates: Local bodies are often assigned new functions by higher levels of government without adequate financial resources to perform them.
Lack of Data and Transparency: Poor financial record-keeping and lack of transparent financial reporting hinder effective resource mobilization and accountability.
5. Evaluate the functions and challenges faced by the Zila Parishad in promoting development at the district level. How does it coordinate with other tiers of local governance?
Answer:
Functions of Zila Parishad: The Zila Parishad is the apex body of the Panchayati Raj system at the district level. Its primary functions include:
Planning and Coordination: Consolidating development plans prepared by Gram Panchayats and Panchayat Samitis and preparing a district development plan.
Supervision and Monitoring: Overseeing and coordinating the activities of Panchayat Samitis and Gram Panchayats.
Resource Allocation: Allocating funds received from the state government to the lower tiers.
Implementation of Schemes: Implementing development schemes and programs sponsored by the central and state governments (e.g., rural employment, health, education, agriculture).
Advisory Role: Advising the state government on matters relating to the development of the district.
Maintaining Public Utilities: Construction and maintenance of district roads, bridges, public wells, and other public utilities at the district level.
Challenges Faced:
Limited Financial Autonomy: Heavy dependence on grants from the state government, limiting its ability to undertake ambitious development projects independently.
Bureaucratic Control: Often faces interference from district administration (District Collector), which can undermine its democratic authority.
Lack of Qualified Staff: Shortage of skilled technical and administrative staff to effectively plan and implement complex development projects.
Coordination Issues: Challenges in effective coordination with various line departments of the state government that operate at the district level.
Overlapping Functions: Sometimes, there is an overlap of functions with state government departments, leading to ambiguity and inefficiency.
Political Interference: Political dynamics at the state level can influence the functioning and resource allocation of the Zila Parishad.
Coordination with Other Tiers:
With Panchayat Samiti: Zila Parishad provides guidance, supervision, and financial assistance to Panchayat Samitis. The Block Development Officers (BDOs) who are executive officers of Panchayat Samitis, also work under the overall supervision of the Zila Parishad.
With Gram Panchayat: While direct supervision is primarily through the Panchayat Samiti, the Zila Parishad integrates the development plans of all Gram Panchayats in the district and ensures that district-level schemes benefit the villages. It also provides a platform for grievances and appeals from lower tiers.
District Planning Committee (DPC): The Zila Parishad plays a crucial role in the District Planning Committee, which consolidates plans from both rural (Panchayats) and urban (Municipalities) local bodies, ensuring integrated development for the entire district. This mechanism is key for holistic planning and coordination across both rural and urban ar
