Federalism and Local Governance: Some Theoretical and Conceptual Underpinnings
D. Jeevan Kumar
Abstract: Democratic decentralization implies both decentralization and democratic local governance. It stipulates the development of reciprocal relationships between higher and lower-level governments and between local governments and citizens. It entrusts the power to develop and implement policy to lower levels of government. Theories of Local Governance have identified a set of Core Principles that need to underpin an effective system of democratic decentralization. They include the following: (1) Application of the principle of subsidiarity in the context of decentralization; (2) Clear delineation of functions of local governments vis-à-vis State Governments and among different tiers of local governments; (3) Effective devolution of these functions and resources accompanied by (4) Capacity-building and accountability; (5) Integrated view of local services and development through the convergence of programs and agencies and above all, (6) Citizen-centricity. The principles of Subsidiarity and Democratic Decentralisation need to go beyond the mere creation of elaborate structures. Devolution, to be real and meaningful, demands that local governments should be effectively empowered to formulate and implement policy decisions within their legitimate spheres of jurisdiction. It cannot be overemphasized that the citizen is at the heart of a democratic system. As the propensity to abuse power and authority is common to all authorities, a series of mechanisms need to be instituted for giving effective voice to the citizens, for local governments to be effective in fulfilling their desired objectives.
Fiscal Federalism and Local Governance
S S Meenakshisundaram
Abstract: By federalism, we mean a system of governance in which entities such as the States and local governments share power with a national Government. They all govern the same citizens but with different sets of powers on different subjects with a well-defined set of rules and regulations which are usually outlined in the Constitution of the country. We have a three-tier system of governance in India. While Parts XI and XII of the Constitution of India detail the relations between the Union and the States, the respective State Acts provide for the relations between the State and the local governments.
We require money to meet our development expenditure. In an unequal society, we need to levy taxes and user fees to augment our resources. In a large country like India, locations for revenue generation are different from locations where expenditure is required. Funds have to be collected through several means and at several places, pooled at convenient places, and then distributed to the places where they are required. Part XII of the Indian Constitution details the financial relations between the Union and the States and how the money should flow from one level to the other. Funds received by the States, after meeting their own expenditure needs, are distributed between the urban and rural local governments. In this talk, I propose to deal with the mechanism created to facilitate this exercise, how they function in actual practice, and what the implications are for State and local finances, with specific reference to an Indian State where the local governments are fairly well established.
About the Speakers:
Dr. D. Jeevan Kumar attained superannuation from Bangalore University as a Professor of Political Science in 2016. His areas of specialization include Indian Government and Politics/ Development Politics and Administration, and Gandhian Studies. He was a Fulbright Fellow in the USA in 2003. He was invited to deliver Guest Lectures at the United Nations University, Tokyo in 2007 and 2008. The books he has edited include ‘The Angry Voter’, ‘Uniting in Responsibilities in a Culture of Rights’ and ‘Excellence in Administration: Prospects and Perspectives’. He is currently Hon. Professor at the Karnataka State Rural Development and Panchayat Raj University, Gadag; Chairman, CIVIC, Bangalore; Managing Trustee of Sarvodaya International Trust; and Secretary, Karnataka Regional Branch of the Indian Institute of Public Administration.
Professor S S Meenakshisundaram is a Visiting Professor at NIAS. He was the Joint Secretary in the Ministry of Rural Development handling the subject of Panchayatiraj when the Constitution 73rd Amendment came to be passed in Parliament.