September 11, 2001

    A conference of the State Ministers of Panchayati Raj was held on 11^th July, 2001 in New Delhi to discuss the measures to be taken to devolve functions and powers upon Panchayats in accordance with the provisions of the Constitution. The Chief Minister of Haryana, Lt. Governor of Andaman & Nicobar Island and 22 State Ministers of Panchayati Raj alongwith Senior officers and also senior officers from various Ministries of the Government of India participated in the Conference.

    It was resolved in the Conference that a Task Force comprising senior officers of the Ministry of Rural Development and of the State Governments should be set up to suggest measures for administrative decentralisation of funds, functions and functionaries upon Panchayats with regard to 29 Subjects listed in the XI Schedule of the Constitution. On 16^th July, 2001, as Task Force was constituted under the Chairmanship of Shri Lalit Mathur, Additional Secretary and Financial Advisor, Ministry of Rural Development and consisting of State Secretaries incharge of Panchayats in the State of Assam, Chhatisgarh, Kerala, Karnataka, Uttar Pradesh and West Bengal, with Joint Secretary (Panchayati Raj), Ministry of Rural Development as its Member Secretary.

    The Task Force has submitted its Report within its stipulated time and presented to the Union Minister for Rural Development, Shri M. Venkaiah Naidu, here today. The major recommendations of the Task Force are :- (1) Administrative and financial power between three tiers of Panchayats should be assigned by the State Governments as per framework suggested, (2) Keeping in view, the principle of subsidiarity, the State Government may devolve functions to the three tiers of Panchayats in respect of 29 Subjects under the XI Schedule in accordance with the broad guidelines suggested, (3) The State may transfer functionaries and funds to the Panchayats for implementation of various State and Central Sector Schemes as per the broad outlines indicated, (4) An officer equivalent to the District Collector shall be posted as the Chief Executive Officer at the District Panchayat with all the financial and administrative powers, which are necessary to maintain the autonomy of District Panchayats, (5) There may be separate Cadre for Panchayati Raj Institutions. All Class-I posts may be filled on deputation basis from State cadres. Class-II posts of the Panchayat cadre may be filled by direct recruitment through the State Public Service Commission or on deputation basis. As regards Class-III and all lower level posts, the recruitment may be at the District/Regional level through an independent recruitment board, (6) To enhance the financial resources of Panchayats, the PRIs may be authorised to levy, collect an appropriate taxes, duties tolls and fees by amending the existing State lodge. Efforts should be made to the extent possible by the State Government to provide untied grants to Panchayats to enable them to utilise it according to the need and local priorities. The Gram Panchayat should get bulk of untied funds of about 70% while Intermediate Panchayat and district Panchayat should share the remaining 30% equally, (7) District Planning Committees should be set up and made functional so that Panchayats at each level are able to prepare their annual plan according to their requirements, (8) The Central Government and the State Government should review the Guidelines of the Rural Development Schemes indicating the role of Panchayats in implementation of such schemes. The State Government should initiate necessary steps for convergence of Schemes so that PRIs may have greater flexibility in responding to local needs, (9) The State Government should endow the Panchayat in adequate financial powers to ensure greater autonomy in decision making process at their respective level, (10) The State Government may prescribe suitable mechanism for monitoring and supervision of activities of PRIs by strengthening Audit System and introducing Social Audit through Gram Sabha.