Table Of ContentHandbook of Decentralised
Governance and
Development in India
This handbook examines 25 years of decentralised governance and development in India. It
provides a historical overview of developments since the introduction of decentralisation reforms
(73rd and 74th Constitutional Amendment Acts) and critically assesses the measures initiated to
strengthen decentralised institutions and deepen grassroots democracy. It also discusses the status
of service delivery and identifies the issues and challenges involved in achieving development at
the local level. The volume studies themes such as the devolution of powers in India, administra-
tive and fiscal decentralisation, decentralised planning, Panchayats in scheduled areas, the socio-
logical aspects of decentralisation, caste, gender and local democracy, capacity building, ICT for
local governance, urban local governance, workfare and decentralisation, and decentralised natural
resource management. It also looks at Panchayati Raj institutions from a Gandhian perspective.
The first of its kind, this handbook will be an essential read for scholars and researchers of
decentralisation and development, development studies, fiscal decentralisation, political studies,
political sociology, Indian politics, Indian government, public policy and governance, political
economy, South Asian studies, and South Asian politics.
D. Rajasekhar is the HAG Professor in Economics at the Centre for Decentralisation and
Development, Institute for Social and Economic Change, Bengaluru, India. He obtained his PhD
from Jawaharlal Nehru University, New Delhi, India (through the Centre for Development Studies,
Trivandrum). He was Visiting Scholar at the universities of Oxford, Melbourne, Hitotsubashi, Sussex,
and at the Centre for Development Research, Copenhagen. He worked extensively on decentrali-
sation, social protection, and microfinance and served in policy bodies constituted by the govern-
ment. He has published 27 books and 89 articles in national and international journals and as book
chapters. His paper (co-authored) on ‘Motivating Knowledge Agents: Can Incentive Pay Overcome
Social Distance?’ was published in The Economic Journal. His paper (co-authored) on ‘Collusion,
Co-option and Capture: Social Accountability and Social Audits in Karnataka, India’, published in
Oxford Development Studies, was awarded the Sanjaya Lall Prize for its contribution to development
studies. He is currently collaborating with researchers from the London School of Economics, and
the universities of Bristol, Melbourne, Tsuda, and Hitotsubashi in research relating to decentralisation
and poverty reduction, delivery of public services, and social protection. His recent books include
Decentralised Governance, Development Programmes and Elite Capture (2018) and Cooperatives and Social
Innovations: Experiences from the Asia Pacific Region (2020).
Handbook of Decentralised
Governance and
Development in India
Edited by D. Rajasekhar
First published 2022
by Routledge
2 Park Square, Milton Park, Abingdon, Oxon OX14 4RN
and by Routledge
605 Third Avenue, New York, NY 10158
Routledge is an imprint of the Taylor & Francis Group, an informa business
© 2022 selection and editorial matter, D. Rajasekhar; individual chapters, the
contributors
The right of D. Rajasekhar to be identified as the author of the editorial
material, and of the authors for their individual chapters, has been asserted in
accordance with sections 77 and 78 of the Copyright, Designs and Patents
Act 1988.
All rights reserved. No part of this book may be reprinted or reproduced or
utilised in any form or by any electronic, mechanical, or other means, now
known or hereafter invented, including photocopying and recording, or in
any information storage or retrieval system, without permission in writing
from the publishers.
Trademark notice: Product or corporate names may be trademarks or
registered trademarks, and are used only for identification and explanation
without intent to infringe.
British Library Cataloguing-in-Publication Data
A catalogue record for this book is available from the British Library
Library of Congress Cataloging-in-Publication Data
A catalog record has been requested for this book
ISBN: 978-0-367-33769-8 (hbk)
ISBN: 978-1-032-05514-5 (pbk)
ISBN: 978-0-429-32188-7 (ebk)
DOI: 10.4324/9780429321887
Typeset in Bembo
by Deanta Global Publishing Services, Chennai, India
Contents
List of tables viii
List of figures x
List of contributors xi
Preface xiv
PART 1
The setting 1
1 Decentralised governance and development in India: An introduction 3
D. Rajasekhar
2 Seeing PRIs in India and their history from a Gandhian perspective 22
M. V. Nadkarni
3 The evolution of devolution 34
V. K. Natraj
PART 2
Dimensions of decentralisation 45
4 Political decentralisation: Role of political parties from colonial times 47
George Mathew
5 Rural local governance and administrative decentralisation: An
institutional analysis 62
N. Sivanna and N. Veeresha
6 Fiscal decentralisation in India: Status and raising issues 78
M. A. Oommen
7 State–sub-state level fiscal decentralisation in India: Theoretical issues and
policy options 92
M. A. Oommen
vv
Contents
8 Decentralised planning in India: Challenges and prospects 106
M. Devendra Babu
9 Implementation of PESA and status of panchayat raj institutions in fifth
scheduled areas of Indian states: Issues, challenges and ways ahead 122
Yatindra Singh Sisodia
PART 3
Decentralised rural governance 135
10 Deliberative democracy through Grama Sabha: Progress and issues 137
D. Rajasekhar and R. Manjula
11 Decentralised governance in India: The anticipated and the unanticipated 154
Manish Thakur
12 Interrogating local democracy: Formal and informal local governance in
Karnataka 167
Kripa Ananthpur
13 Good governance in Gram Panchayats of Kerala: Not so good? 184
D. Narayana
14 Capacity development for good governance in Panchayats: Status,
effectiveness and issues 199
D. Rajasekhar
15 ICT for local governance: Status, emerging issues and prospects 217
Inderjeet Singh Sodhi
PART 4
Decentralised urban governance 233
16 Decentralised governance in urban areas: Problems and prospects from a
socio-historical perspective 235
N. Jayaram
17 Urban local governance: Revisiting the fundamentals 249
Amita Bhide
18 Intergovernmental transfers to urban local bodies in India: Issues and
directions for reforms 264
Shibani Mishra, Alok Kumar Mishra and Prerna Panda
vi
Contents
PART 5
Sectorial aspects of decentralisation 287
19 Implementing workfare through decentralised government for poverty
reduction 289
R. Manjula
20 The policy and practice of decentralised natural resource management in
India 308
Mahima Upadhyay
21 Devolving rights to forest dwellers: Politics of institutional choice and
recognition in the Forest Rights Act implementation process in West
Bengal, India 322
Bidhan Kanti Das
Index 339
vii
Tables
5.1 Top-, middle- and low-ranking states in the devolution index 66
5.2 Devolution ranking of states in policy 67
5.3 Staff position in Gram Panchayats (top five states in the devolution index) 68
5.4 Staff position in Gram Panchayats (bottom five states in the devolution index) 69
5.5 Devolution ranking of states in practice 70
5.6 Gap between devolution policy and practice of Panchayat functionaries 71
5.7 Nature of administrative decentralisation in the Panchayats of selected states 72
6.1 Ranking of states in regard to devolution of functions, funds and functionaries and
IGT (2015–16) 83
6.2 Nature and quantum of devolution recommended by union finance commissions
to local governments in India 85
6.3 Horizontal criteria adopted by union finance commissions for distribution of
grants-in-aid to states for Panchayats and ULGs 85
7.1 Criteria for inter-tier distribution of development funds 99
7.2 OSR as percentage of total expenditure (Kerala and Tamil Nadu)-GPs 100
7.3 OSR as percentage of total expenditure (Kerala and Tamil Nadu)-ULGs 100
8.1 Initiatives in decentralised planning in India 109
8.2 Status of devolution in major states of India 112
8.3 Status of District Planning Committees in major states of India 113
8.4 State-wise status of District Rural Development Agency in India 114
8.5 Status of constitution of SFC by the states 115
8.6 Details of issues of the round table conferences of ministers of panchayat raj
of states 116
9.1 Knowledge and participation of panchayat representatives in PESA areas 127
9.2 Information about various stages of work among panchayat representatives 128
9.3 Perception of panchayat representatives in PESA areas 129
9.4 Knowledge and perception of panchayat representatives 130
10.1 Distribution of states by the prescribed quorum for GS meetings 140
10.2 Major functions assigned to Grama Sabha in different states 141
10.3 Participation of citizens in GS meetings in Madhya Pradesh 147
12.1 Structures and activities of GPs and CVCs 176
13.1 Distribution of states by Gram Panchayat size and transfer of tertiary-sector
functions 187
13.2 Distribution of states by Gram Panchayat size and sanctioned/own functionaries 187
13.3 Per capita allocation of untied funds (plan and non-plan) by the State Finance
Commission by state across tiers of Panchayat (Rs), 2015 188
vviiiiii
Tables
13.4 Services offered through Panchayats by tier in Indian States, 2016 196
13.5 Districts (%) with integrated district plans in 2015 by state 197
13.6 Services (%) offered by states across tiers out of the maximum possible services,
2015 197
14.1 Funds (Rs. crores) released and utilised under the RGPSA/RGSA 206
15.1 Status of ICT infrastructure in Gram Panchayats 220
17.1 An index of urban devolution 252
17.2 Status of implementation of decentralisation reforms post JNNURM 253
18.1 Trends in municipal revenues in India 267
18.2 Distribution of local government revenues: Select OECD countries 2010 268
18.3 Major sources of shared revenues and compensations in municipal corporations of
India 268
18.4 Major sources of general and specific-purpose transfers in municipal corporations
of India 269
18.5 Distribution of municipal revenues by source in India (%): 2012–2013 270
18.6 Central and state tax–GDP ratios 1950–1951 to 2015–2016 270
18.7 Distribution of grants to states for urban local bodies: Criteria and weights (%)
adopted by the Finance Commissions of India 276
18.8 Inter-governmental transfers versus own-source revenues in select metropolitan
areas 277
18.9 Distribution of tax revenue sources of select metropolitan cities 279
18.10 Recommendations of local finance committees and commissions in India 280
19.1 Key features of the previous wage employment programmes (1970s to the mid-
2000s) 292
19.2 Performance of MGNREGS in India during 2008–09 to 2018–19 297
21.1 Basic unit of authority vested in rights determination as well as forest governance 326
21.2 Comparative account of potential CFR versus CFR recognition under the act 328
Charts
5.1 Analytical and spatial dimensions of administrative systems 64
14.1 Training institutions in states for Panchayats 208
Appendices
6A List of the states that have no activity report (out of 25 states) as per the
“Report of the Mid-Term Review and Appraisal” (2006) 88
6B Vertical sharing of resources based on latest SFC report available 88
7A Criteria for horizontal distribution of Tamil Nadu 102
7B Status of deficit in Karnataka panchayats 104
7C P ercentage distribution of financial condition of ULG (2002–07) in
percent – Karnataka 104
14A Number of programs organised and participants trained by NIRD (1992–93 to
2016–17) 214
ix
