HSS F362: Local Governance and Participation

Lecture 6 : 3-9-2024

Mohan Kumar Bera

BITS Pilani Goa Campus
Decentralised Planning
 Introduction
• Decentralised planning is a kind of percolation of planning activities or process
from the Centre to the sub- state levels, i.e., district, sub-division, block and
village level.

• Since the inception of First Plan (1951-56), the importance of decentralised

planning was emphasised in order to achieve active people’s participation in the
planning process.

• In 1957, the Government appointed Balwant Rai Mehta Committee which

recommended constitution of elected statutory local bodies with its required
resources, power and authority along with a decentralised administrative
system operating under its control.

• In 1969, the Planning Commission issued some guidelines on the introduction

of district planning. Again in 1977; M.L. Dantewala working group
recommended specific guidelines for the introduction of block-level planning.

• After that Ashok Mehta Committee has also submitted its report on Panchayati
 Introduction
• The Economic Advisory Council to the Prime Minister, finally presented its Report on
Decentralisation of Development Planning and its implementation in the states in 1983.

• In 1984, the Group on District Planning submitted its report and this was considered as
the basis of proposals on decentralised planning under the Seventh Plan.

• Accordingly, the Planning Commission of India introduced the decentralised planning in

the country for the first time during the Seventh Plan. From the very beginning, India has
adopted the system of centralised planning with little variation.

• But with the passage of time there has been radical departure in the planning process in
India from a centralised to a decentralised one where the decision making in the
planning process has been reversed from top-to-bottom type to a system of bottom-to-
top type.

• Thus the decentralised planning is a kind of planning at the grass-root level or planning
from below. Planning process in a country is having various tiers, viz., centre, state,
district, sub-division, block and village.
 Introduction
• Under decentralised planning emphasis has been given on the introduction of district
planning, sub-divisional planning and block-level planning so as to reach finally the
village level planning successfully.

• In India, Governmental activities are being performed right from the central to states
and then to local, i.e., to the districts level (Zilla Parishads), taluk level (Panchayat
Samities) and also to the village level (Gram Panchayats). But it now being observed
that this type of centralised planning process is not at all conducive to optimum
utilisation of plan resources.

• Thus in order to realise a better response, the Planning Commission of India

introduced the decentralised planning since the Seventh Plan. Although in most of the
states of India, the decentralised planning was extended to district level but in some
states like Assam, West Bengal etc. the same plan was decentralised up to sub-division
level.

• Accordingly, in order to conduct the planning activities at the sub-divisional level, the
Sub­division Planning and Development Council was formed in every sub-division of
some states with public representatives from different levels.
 Introduction
• This council prepares various developmental plans for agriculture, irrigation,
elementary education, road building, social afforestation, fishery, industrialisation,
community development etc. of different sub-divisions of various states.

• These Councils are then entrusted to submit the required estimates of developmental
works of different departments and then prepare and implement sub-divisional plan
as per the approved outlay.

• Decentralised planning is very much important in a country like India, where majority
of our population live in rural areas. These types of plans raise the involvement of the
people in implementing the plan.

• Moreover, decentralised planning is being prepared in the light of local problems and
on the basis of local resources potential. Thus under the present economic scenario,
the decentralised planning is considered as most important strategy in respect of
planning for economic development.
 Dimensions of decentralised planning

• There are four major dimensions of decentralization:

– (i) Functional decentralization,
– (ii) Financial decentralization,
– (iii) Administrative decentralization, and
– (iv) Political decentralization
 Dimensions of decentralised planning :
Financial Decentralization
• Planning at any level without the necessary financial authority and
resources is meaningless.

• In our country, like in other countries, most financial resources are mobilized
by the Central government, which then distributes them to the lower levels.

• The division of resources is done according to constitutional provisions. A

statutory body called the Finance Commission, appointed every 5 years,
decides these divisions.

• Recently a State Finance Commission has been stipulated for the transfer of
financial resources from the states to the local bodies.
 Dimensions of decentralised planning :
Financial Decentralization
• Different criteria are adopted for the allocation of development funds
from the Centre to the sub-national levels. Some of the socio-economic
considerations are the following:
– (i) area; (ii) population size; (iii) degree of relative backwardness, (iv) measure of tax
effort, (v) special locational or social characteristics, (vi) commitment to major
national schemes.

• These factors are taken into consideration with a view to providing

relatively higher grants to relatively more backward states.

• The purpose behind this idea is two-fold:

– (a) from the point of view of fair play, the backward states should be given more to
help them move upwards;
– (b) from the point of view of efficiency, if they are made economically strong
through such help, then their dependence at the centre decreases in future.
 Dimensions of decentralised planning :
Administrative decentralization
• Administrative decentralization is also known as deconcentration. It means
deconcentration of functions and some powers from government
departments and agencies to their field offices.

• However, the “command” remains at the top.

• Administrative decentralization involves taking a number of administrative

actions, some of which are:
– (a) Setting up offices at regional and local levels to move closer to the people;
– (b) Designating the decentralized functions for each level;
– c) Making necessary delegation of powers;
– (d) Assigning adequate finances;
– (e) Posting adequately qualified persons through deputation or fresh recruitment;
– (f) Establishing work procedures and framing departmental rules and regulations for
coordinated functioning; and
– g) Providing technical guidelines to field officers and establishing a time-bound
programme of activities to fit into the national planning process.
 Dimensions of decentralised planning :
Administrative decentralization
• Such administrative decentralization will lay the ground work for democratic
decentralization.

• The officials will not only acquire the necessary skills to execute the plan, they
will have to build up an attitude favourable towards decentralization and
people’s participation.

• They are used to executing plans framed at the top and handed down to the
lower levels.

• In the changed situation, they will have to learn to work with people’s
representatives who will have more and more say in the formulation of policy
and plans.
 Dimensions of decentralised planning :
Political or Democratic Decentralization
• In its perfect form, the concept of decentralization becomes the same as
democratic decentralization.

• Now all people take part in the planning process. When only the elected
representatives of the people take part in the process, it is called “partial
decentralization”.

• When all sections of the population are empowered to take part in local
affairs of the community, it is called “total decentralization”.

• There are three major components of political decentralization: Local

autonomy, Devolution and Political Participation.

• Local Autonomy:
– The idea of local autonomy is based on the belief that the local community
 Dimensions of decentralised planning :
Political or Democratic Decentralization
– They should be enabled to take decisions and initiate action with the
minimum dependence on higher authorities.
– Self-reliance and assertiveness are the key to such attainment by the local
community.

• Devolution:
– Local autonomy will be primarily possible through devolution.

– Devolution means transfer of government powers, functions and resources to local

authorities. Local authorities will be given the power to take decisions and at the
same time accept responsibility for those decisions.

– They cannot pass the responsibility to the government to escape. Devolution has to
be accompanied with the deconcentration, which we discussed earlier.
Dimensions of decentralised planning :
Political or Democratic Decentralization
– Devolution is different from delegation of power. When power is delegated,
the ultimate responsibility still remains with the government. In this case
the local authority is still under control of the government and in every way
subordinate to it.

– Devolution is an orderly transfer of authority, resources and institutional

capabilities to local authorities. Therefore, devolution in its true sense will
not be possible in the absence of political willingness.

– Devolution will enhance the capacities of the local authorities in the

following ways:
• (a) More programme responsibilities and resources will be transferred from the
government to the local authorities to match the legal duties and powers given to them.
• (b) They will be empowered to generate their own revenue to reduce their dependence on
government.
• (c) The capacities of local institutions will be enhanced to make policies and administer.
• Public Participation
– The ideal of democratic decentralization is achieved through people’s
participation in the process of governance. This is made possible through the
institution of local selfgovernment.
– Through the functioning of these elected bodies, people participate in the
process of governance and learn to make democratic institutions stronger.
– They realize the importance of freedom and democracy more. In India
democratic decentralization has been identified with “Panchayati Raj”.
Decentralised Planning: Chronology of Events
• The first two five years plan documents had unequivocally and emphatically argued for
decentralised planning but they did not put into practice as the two plan documents had
not spelt out the needed mechanism to prepare decentralised plan.

• The third Five Year Plan though took some initiatives to prepare district and block plans, in
some of the states, they were not integrated in to the state plan.

• Only in the fourth Five Year Plan guidelines have been evolved for the preparation of
district plan. Based on the guidelines several states have prepared their district plans but
they could not integrate them with the annual plan of the states barring Maharashtra,
Gujarat and Karnataka.

• The Fifth Five Years Plan talked much about block level planning.

– In this regard a working group was constituted in the central planning commission to suggest ways
and modalities for planning from below. Based on the guidelines issued by the Planning Commission
some of the states have prepared block plans with the help of private agencies. During this period
another land mark event took place for strengthening of Panchayati Raj. A committee on Panchayati
Raj popularly called Ashok Mehta Committee was constituted to review the progress of Panchayati
Raj Institutions. The committee submitted its report in the year 1978. The committee also
recommended that unit for planning should be at the district level.
Decentralised Planning: Chronology of Events
• Sixth plan document also reiterates the importance of local level planning.

– For the first time in planning, recognition was accorded to reliable, updated, timely, Scientific
data for micro level planning. Thus data generation at the micro level gained importance. It also
stressed the need of strengthening Panchayati Raj Institutions and of involving people in the
process of implementation of development programmes. During the same period, a working
group was set up in planning commission on district planning and the same submitted its report
in the year 1984. The working group provided a detailed guideline and methodology for the
preparation of plan at the district level. This working group unequivocally reiterated the need of
such a plan at the district level.

• The Seventh Five Years Plan also reiterates the need of decentralised district
plan as recommended by the working group of the commission.

• It is also recommended that the decentralised planning has to move from

district to block.
Decentralised Planning: Chronology of Events
• The Eighth Five Years Plan emphasized the need and relevance of the
decentralised planning along with peoples participation through peoples
institution.

• Ninth Five Years Plan document made it as an objective to promote and develop
peoples participation in planning through democratic institution like Panchayati
Raj Institutions.

– The district development plans will have to be prepared through the institutions of the
District Planning Committee which is the creation of the Indian Constitution. 243ZD of the
constitution enables for creation of District Planning Committee. Yet much progress was
not achieved.

• Tenth and Eleventh Five Years Plans are pushing the concept of decentralised
planning through a centralized drive.

– Thus decentralised planning was much discussed and debated subject over a period of time
but less practiced at the ground. It is to be registered here that Kerala is a model the whole
country for pushing decentralised planning through its powerful campaign approach.
 Decentralised Planning: Chronology of Events and Committee Reports
Year Item Ideas and Concepts
First Plan Community To break up the planning exercise into national, state, district, block
1951-56 Development Blocks and local community levels
Second District Drawing up of village plans and popular participation in planning
Plan Development through the process of democratic decentralisation
1956-61 Councils
1957 Balwant Raj Mehta Village, Block, District Panchayat institutions established
Committee
1967 A dministrative Resources to be given / local variations accommodated, purposeful
Reforms plan for area
Commission
1969 Planning Formulated Guidelines; detailed the concept of the district plan and
Commission methodology of drawing up such a plan in the framework of annual
plans, medium – terms plans and perspective Plans

1978 Prof. M.L. Dantwala Block level planning to form link between village and district level
Planning
1983-84 CSS/Reserve Bank Strengthen district plan / district credit plan
of
India
1984 Hanumantha Rao Decentralisation of Functions, powers, finances; setting up of district
Committee planning bodies and district planning cells
1985 GVK Rao Administrative arrangements for rural development; district panchayat
Committee to manage all development programmes
Source: Report of the Expert Group; Planning at the Grassroots Level: An Action Programme for the 11th Five Year Plan
 Institutional involvement in Decentralized
Planning
• In this context in India 73rd and 74th Amendments to the
Constitution were passed and provided opportunity for the people
to participate in the process of preparing micro plan from the
villages to the District level.

• The institutions at the grassroots are created with a provision to

include women and the other deprived sections.

• Thus the plan has to be prepared from the lowest unit of

governance to highest level. It is explained through an organ gram
below:
 Merits of Decentralised Planning
• Decentralized planning enjoys strategic advantages over that of centralized
planning.

• According to Rondinell (1983). true decentralization could reduce bureaucratic

red-tape, reduce delays, overcome administrations indifferences towards their
clientele; improve quality of service, act as effective channels of communication
between national government and local communities, promote greater
participation of people in planning and decision making

• The merits of decentralized planning are discussed below:

– 1) Spatial level specific requirements and needs of the people will be met through
the decentralised planning;

– 2) Efficiently resources will be utilized and wastages could be reduced and thereby
the gap between the supply and demand can be narrowed down;

– 3 Greater sustainability can be achieved through the decentralised planning;

 Merits of Decentralised Planning
– 4) Decentralised planning is cost effective as solutions are found out
locally with the involvement of the stakeholders;

– 5) Elite capture of the programmes will be eliminated;

– 6) Corruption in Rural Development and Poverty Alleviation programmes

can be reduced;

– 7) Poor can emerge from livelihood to achieve economic development;

– 8 Poor can build vision for their development;

– 9) Resources and skills available locally will be utilized profitably for the
advantage of the stakeholders;

– 10) Natural resources will be protected preserved and nurtured;

 Merits of Decentralised Planning
– 11) People capacity will be enhanced;

– 12) Possibility for matching the needs of the people and schemes of the governments;

– 13) People’s felt need will be met;

– 14) It will bridge the gap between people and bureaucracy and thereby government is brought
closer to the people;

– 15) Regional imbalance will be reduced;

– 16) People’s talents will emerge and they will be utilized for community development;

– 17) Productivity will be increased;

– 18) Development will be made people centric;

– 19) Greater mobilization of resources internally; and

– 20) Partnership will be achieved between the people and development agencies.
 Principle of Decentralised Planning
• Principle of Functional Clarity

• Principle of Financial Availability and Autonomy

• Principle of Decentralised Administration

• Principle of Public Participation

• Principle of Integrity
 Goals of Decentralised Planning
• Economic Development

• Social Justice

• Welfare

• Environmental Protection

• Coordination

• People’s Involvement,