MINISTER OF PANCHAYATI RAJ (SHRI MANI SHANKAR AIYAR)
(a) & (b) Ministry of Panchayati Raj is concerned with only Recommendation No. 177 of Sarkaria
Commission by which it is recommended that institutions like Zilla Parishads and elected
municipal corporation need to be significantly strengthened both financially and functionally.
Regular elections and sessions of these institutions is a must and means for ensuring the same
in all the States uniformly should be evolved by the Union Government in consultation with
National Economic and Development Council. For this purpose, a legislation,analogous to
Article 172 and 174 of the Constitution,should be undertaken as suggested at para 21.2.09.
Subsequent to the submission of the Sarkaria Commission Report, the 73rd and 74 Constitution
Amendment Acts have been passed which confer Constitutional status on Panchayati Raj
Institutions (PRIs) and Municipalities. Provision has been made for setting up State Finance
Commissions to review the financial position of these bodies and to make recommendations to
the State Governments for devolution of resources. These path breaking Constitutionalprovisions
would give a new direction and thrust to decentralized planning.
(c) & (d) Government have no proposal to appoint a new Commission for strengthening the
Panchayati Raj System. However, after the Ministry of Panchayati Raj was set up, a Conference
of Chief Ministers and State Ministers in charge of Rural Development and Panchayati Raj on
`Poverty Alleviation and Rural Prosperity through Panchayati Raj` was organised at New Delhi
on 29-30 June, 2004, jointly by the Ministry of Rural Development and the Ministry of
Panchayati Raj. The Conference was inaugurated by the Prime Minister. Issues relating to
effective implementation of Part IX and IX A of the Constitution on Panchayati Raj were tabled
as agenda for discussions by the Ministry of Panchayati Raj. These issues included effective
devolution of functions, finances, functionaries, planning, Gram Sabhas, women, reservation for
SCs/STs, special problems of SCs/STs, elections, audit, parallel bodies, capacity building
and training, and state of the Panchayat Report and jurisprudence. The Conference decided to
hold seven Round Table Conferences to formulate a draft action plan towards achieving the
objective of strengthening of Panchayati Raj Institutions to enable them to emerge as
institutions of self-government for the planning and implementation of programmes of economic
development and social justice as envisioned in the Constitution. Between July-December, 2004
Ministry of Panchayati Raj convened seven Round Table Meetings with the State Ministers in
charge of Panchayati Raj and evolved by consensus a set of around 150 points for action which
have been put together in a compendium that was adopted unanimously at the conclusion of the
last Round Table in Jaipur. The Ministry has now initiated a process of visiting each of the
State/UT to reyiew with the authorities concerned the progress in implementing the points for
action contained in the compendium. It is expected that this will accelerate the pace of
implementation of the provisions of Part IX read with Article 243ZD of the Constitution and
bring about greater conformity in both letter and spirit, to the Constitutional provisions of
Panchayati Raj in all States/UTs concerned.
(e) The National Common Minimum Programme provides for funds to be channeled to Panchayati
Raj Institutions without diversion or delay subject to strict monitoring. Accordingly, all
Ministries operating Centrally Sponsored Schemes have been asked to review their schemes in
the light of Article 243G read withXI Schedule.