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Decentralisation in India

🎓 Class 10 Social Science CBSE Theory Ch 2 — Federalism ⏱ ~15 min
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This MCQ module is based on: Decentralisation in India

[myaischool_lt_sst_assessment grade_level="class_10" subject="civics" difficulty="intermediate"]

Decentralisation in India

NCERT Democratic Politics-II | Chapter 2: Federalism

Why India Needs Decentralisation and Local Self-Government

India is a vast country. States themselves are as large as independent European countries — Uttar Pradesh has a larger population than Russia, and Maharashtra is about the size of Germany. Many of these states are internally diverse. Governing such enormous territories through only two tiers of government (Union and State) is not practical. This created the need for a third tier of government below the state level — local government?.

Definition
Decentralisation: When power is taken away from the Central and State Governments and given to local government bodies, it is called decentralisation. The basic idea is that many problems and issues are best settled at the local level, where people have better knowledge of their needs and can directly participate in decision-making.

The principle behind decentralisation is straightforward: people at the local level understand their own problems better, have clearer ideas about spending priorities, and can manage resources more efficiently. Moreover, local-level decision-making enables direct participation by citizens, cultivating habits of democratic engagement. Local government is the best way to realise the important democratic principle of local self-government.

Historical Context
The Constitution recognised the need for decentralisation from the very beginning. Panchayats in villages and municipalities in urban areas were set up in all states. However, these early local bodies were directly under state government control, elections were not held regularly, and they lacked independent powers or resources. In practice, very little genuine decentralisation took place.

The 73rd and 74th Amendment — Strengthening Local Government

A major step towards effective decentralisation was taken in 1992, when the Constitution was amended to make the third tier of democracy more powerful and effective. The key provisions of this amendment were:

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Mandatory Regular Elections
It became constitutionally mandatory to hold regular elections to local government bodies, ensuring continuity of democratic governance at the grassroots.
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Reservation of Seats
Seats are reserved in elected bodies and executive positions for Scheduled Castes, Scheduled Tribes, and Other Backward Classes, ensuring inclusive representation.
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Women's Reservation
At least one-third of all positions are reserved for women, significantly increasing their representation and voice in local governance.
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State Election Commission
An independent State Election Commission was created in each state to conduct panchayat and municipal elections, ensuring free and fair polls.
Important
State governments are required to share some powers and revenue with local government bodies. However, the nature and extent of this sharing varies from state to state, and many states have not transferred significant powers or adequate resources to local bodies.

Rural Local Government — The Panchayati Raj System Explained

Rural local government in India is popularly known as Panchayati Raj?. It operates through a three-tier structure:

Three-Tier Panchayati Raj Structure

L4 Analyse
ZILLA PARISHAD (District Level)
Chairperson is the political head • Most members elected • Includes MPs and MLAs of the district
PANCHAYAT SAMITI / BLOCK / MANDAL
Members elected by all panchayat members in the area • Groups several gram panchayats
GRAM PANCHAYAT (Village Level)
Ward members (panch) + Sarpanch • Directly elected by adult population • Decision-making body for the village
GRAM SABHA
All voters in the village are members • Meets 2–3 times per year • Approves annual budget • Reviews panchayat performance

Figure: The three tiers of rural local government in India, with the Gram Sabha as the foundational assembly

Gram Panchayat

Each village, or a group of villages in some states, has a gram panchayat?. This council consists of several ward members (called panch) and a president or sarpanch, all directly elected by the adult population of the ward or village. The gram panchayat serves as the decision-making body for the entire village and operates under the overall supervision of the gram sabha — a body comprising all voters of the village that meets at least two or three times a year to approve the annual budget and review the panchayat's performance.

Panchayat Samiti and Zilla Parishad

A few gram panchayats are grouped together to form a panchayat samiti (also called block or mandal). Its members are elected by all panchayat members in the area. All panchayat samitis in a district together constitute the zilla (district) parishad. Most members of the zilla parishad are elected, though members of the Lok Sabha, MLAs of that district, and some other officials also serve as members. The chairperson of the zilla parishad is its political head.

Urban Local Government — Municipalities and Corporations

Local government bodies exist for urban areas as well. Municipalities are set up in towns, while big cities are constituted into municipal corporations?. Both are controlled by elected bodies of people's representatives. The political head of a municipality is the municipal chairperson, while in a municipal corporation, the head is called the mayor.

Feature Municipality Municipal Corporation
Area served Towns and smaller urban areas Large cities and metropolitan areas
Political head Municipal Chairperson Mayor
Governing body Elected council of representatives Elected council (corporation) of representatives
Jurisdiction Local urban governance, sanitation, roads, water Same functions but on a larger scale with greater resources

Impact and Challenges of Decentralisation in India

This system of local government is the largest experiment in democracy conducted anywhere in the world. There are now approximately 36 lakh (3.6 million) elected representatives in panchayats and municipalities across the country — a number larger than the population of many countries. Constitutional status for local government has helped deepen democracy and significantly increased women's representation and voice.

However, there remain significant challenges:

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Irregular Gram Sabhas
While elections are held regularly and with enthusiasm, gram sabha meetings are not held as frequently as required, weakening grassroots accountability.
Insufficient Power Transfer
Most state governments have not transferred significant powers to local bodies, limiting their ability to govern independently.
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Inadequate Resources
Local bodies often lack adequate financial resources to carry out their responsibilities effectively.
International Example — Porto Alegre, Brazil
The city of Porto Alegre in Brazil combined decentralisation with participatory democracy. Its nearly 13 lakh residents participate directly in making the city's budget through ward-level meetings. About 20,000 people participate in this budgeting exercise each year. The result: buses now run to poor neighbourhoods, and builders cannot evict slum-dwellers without providing resettlement. A similar experiment in participatory planning has taken place in some areas of Kerala, India.
LET'S EXPLORE — Your Local Government
L3 Apply

Find out about the local government in your village or town:

If you live in a village:

  • Who is your panch or ward member?
  • Who is your sarpanch?
  • What is the name of your panchayat samiti?
  • Who is the chairperson of your zilla parishad?
  • When did the last gram sabha meeting take place, and how many people attended?

If you live in an urban area:

  • Who is your municipal councillor?
  • Who is the municipal chairperson or mayor?
  • What is the budget of your municipal corporation or municipality?
  • What are the major items on which money was spent?
Guidance
You can find this information by visiting your local panchayat or municipal office, checking their official website, or asking your parents and community elders. This activity helps you understand how the third tier of government functions in practice — where your tax money goes, who represents you, and how decisions are made at the local level.
THINK ABOUT IT — Who Runs the District?
L5 Evaluate

The textbook raises an interesting question: The Prime Minister runs the country. The Chief Minister runs the state. Logically, the chairperson of the Zilla Parishad should run the district. Yet it is the District Magistrate (D.M.) or Collector who actually administers the district.

  • Why do you think this gap exists between the elected political head and the appointed bureaucratic head at the district level?
  • What does this reveal about the challenges of decentralisation?
  • How could this be addressed to strengthen local self-government?
Guidance
The District Magistrate/Collector is a centrally appointed bureaucrat (IAS officer) who has traditionally held administrative authority. The Zilla Parishad chairperson, though elected, often lacks the administrative machinery, resources, and legal powers to match the Collector's authority. This gap reflects the incomplete transfer of power to local bodies — a key challenge in India's decentralisation process. Strengthening local government would require transferring both real powers and resources to elected local leaders.
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Competency-Based Questions

Case Study: Village Rampur has a gram panchayat with 12 elected members and a sarpanch. The gram sabha has not met for over a year. The state government allocates funds for road construction, but the sarpanch diverts some funds to a different project without consulting the villagers. Several women members feel their concerns are being ignored despite the reservation policy.
Q1. Which provision of the 1992 amendment is being violated in Rampur with regard to the gram sabha?
L3 Apply
  • (A) The provision requiring reservation for women
  • (B) The provision requiring regular elections to local bodies
  • (C) The provision requiring the gram sabha to meet regularly to review performance and approve budgets
  • (D) The provision creating the State Election Commission
Q2. Analyse how regular gram sabha meetings could have prevented the sarpanch from diverting funds in Rampur.
L4 Analyse
Q3. Evaluate whether the reservation of seats for women in local government has been sufficient to ensure their genuine participation. What additional steps might be needed?
L5 Evaluate
HOT Q. Drawing inspiration from Porto Alegre's participatory budgeting model, design a plan for your village or ward to involve citizens directly in budget decisions. Outline three specific steps.
L6 Create
⚡ Assertion–Reason Questions
Assertion (A): The 1992 constitutional amendment made it mandatory to hold regular elections to local government bodies.
Reason (R): Before 1992, local governments were directly controlled by state governments and elections were not held regularly.
(A) Both A and R are true, and R is the correct explanation of A.
(B) Both A and R are true, but R is not the correct explanation of A.
(C) A is true but R is false.
(D) A is false but R is true.
Assertion (A): India's local government system is described as the largest experiment in democracy conducted anywhere in the world.
Reason (R): There are approximately 36 lakh elected representatives in panchayats and municipalities across the country.
(A) Both A and R are true, and R is the correct explanation of A.
(B) Both A and R are true, but R is not the correct explanation of A.
(C) A is true but R is false.
(D) A is false but R is true.
Assertion (A): Decentralisation has fully achieved the ideal of local self-government in India.
Reason (R): Most state governments have transferred all powers and adequate resources to local government bodies.
(A) Both A and R are true, and R is the correct explanation of A.
(B) Both A and R are true, but R is not the correct explanation of A.
(C) A is true but R is false.
(D) A is false and R is false.

Frequently Asked Questions

What is decentralisation in Class 10 Civics?

Decentralisation means transferring power from the central and state governments to local government institutions at the district, block, and village level. In NCERT Class 10 Civics, decentralisation is presented as the third tier of Indian federalism, established constitutionally through the 73rd and 74th Amendments of 1992. The idea is that many governance problems are best solved at the local level where people have better knowledge of their needs and can directly participate in decision-making.

What is the Panchayati Raj system in India?

The Panchayati Raj system is India's three-tier rural local government structure established under the 73rd Constitutional Amendment. The bottom tier is the Gram Panchayat at the village level, the middle tier is the Panchayat Samiti at the block level, and the top tier is the Zilla Parishad at the district level. Each tier has elected representatives and handles local issues like drinking water, roads, sanitation, and primary education. One-third of all positions are reserved for women.

What did the 73rd and 74th Constitutional Amendments do?

The 73rd Amendment (1992) constitutionalised the Panchayati Raj system for rural areas, while the 74th Amendment did the same for urban municipalities. Together they mandated regular elections to local bodies every five years, reserved seats for Scheduled Castes, Scheduled Tribes, and women, created State Election Commissions for local elections, and required state governments to share powers and revenue with local bodies. These amendments transformed local governance into a constitutional obligation.

What is a Gram Sabha?

A Gram Sabha is the general body of all registered voters in the area of a Gram Panchayat. It is the foundation of the Panchayati Raj system and functions as a direct democracy institution at the village level. The Gram Sabha meets regularly to approve the annual budget, review development plans, audit accounts, and hold elected panchayat members accountable. Every adult villager is a member by right, making it the most direct form of participatory democracy in India.

What are the challenges of decentralisation in India?

Major challenges facing decentralisation in India include inadequate transfer of funds and functions from state governments to local bodies, lack of trained personnel at the panchayat level, dominance of local elites and caste dynamics in panchayat elections, insufficient awareness among citizens about their rights in gram sabhas, irregular meetings and poor record-keeping, and uneven implementation across states. While states like Kerala have achieved significant decentralisation, many others lag behind.

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