Unit 3 PanchayatiRaj &Rural Administration

What They Do:

and Structure of
Bureaucracy
Administration Planning and Budgeting: They make annual
plans and budgets for village development
Bureaucracy: A system with many levels and projects.
clear rules about who does what and how things " Helping in Times of Need: They organize
get done. You might find bureaucracies in relief efforts during natural disasters.
governments, companies, and even clubs. In Keeping Things Tidy: They manage public
Panchayati Raj, the bureaucracy refers to the property and remove any unauthorized
officials working within the Panchayati Raj structures.
Institutions (PRIs) at different levels. Community Spirit: They encourage villagers to
volunteer for community projects.
Structure of Administration: The way different Keeping Track: They maintain records and
parts of an organization are arranged to achieve statistics about the village.
specific goals. It's ike a blueprint showing who Village Improvement: They work on projects
reports to whom and what each part is related to education, health, agriculture, and
responsible for. more.

Giving a Voice: They represent the villagers'

concerns to higher authorities.
Panchayati Raj Institutions (PRls) Setting Rules: They create and enforce rules
for the village to function smoothly, including
India's rural development system is based on a collecting taxes.
three-tiered Panchayati Raj structure:

1. Gram Panchayat (Village Level) 2. Panchayat Samiti (Block Level)

A Gram Panchayat is the village council at the most The Panchayat Samiti is like a mini-parliament that
basic level of the Panchayati Raj system in lndia. looks after a group of villages called a "development
Imagine it as a mini-government for your village! block." Here's a breakdown of what it is and what it
does:
The most basic unit, directly elected by villagers. It
handles village-level development activities like What it is:
sanitation, water supply, and primary education.
A rural local government body in India at the
How it Works: intermediate level (between village and district).
Often called the "panchayat of panchayats"
"A village divided into sections because it coordinates village-level
(constituencies) based on the number of voters. Panchayats.
Each constituency elects one member.
" These elected members come together to form Who's Who:
the Gram Panchayat, like a village cabinet.
" A mix of elected representatives from villages
(Gram Panchayats), government officials, and
seats reserved for under-represented groups.
 Elects a Chairman and Deputy Chairman for
a five-year term.
What Does it Do?
Key Functions:
" Advising Blocks: The Zila Parishad provides
Plans, executes, and oversees development guidance and recommendations to the
programs for the entire block. block-level Panchayats.
Supervises the work of Gram Panchayats within Approving Plans: It reviews and approves
its area. budgets and development plans proposed by
Encourages villagers to take initiative and the blocks.
improve their lives. Funding Distribution: The Zila Parishad
Provides support for implementing development allocates funds from the government to different
programs. blocks within the district.
Looks after the welfare and development of Education Focus: It takes responsibility for
various sectors like agriculture, healthcare, managing secondary education in the district.
education, and sanitation. Rural Development Champion: The Zila
Manages funds and loans for village housing Parishad advises the state government on
projects. matters related to rural development in the
district.
Monitoring Progress: It reviews and evaluates
3. Zila Parishad (District Level) the effectiveness of various development
programs implemented at the block level.
What is it?

The Zila Parishad (District Council or Mandal

Parishad or District Panchayat) is the highest level of Objectives of Panchayat Raj
the Panchayati Raj system in India. Imagine it as the
district council, overseeing all the villages and blocks 1. Helping Those in Need: Taking care of the
within a district. poor and vulnerable in the village.
2. Working Together: Encouraging villagers to
Who's Involved? cooperate and support each other.
3. Local Businesses: Helping villagers start
Elected Members: People in the district vote businesses they own and run together.
for representatives. 4. Using What's Available: Making the most of
Block Leaders: Heads of block-level
the resources and people already in the village.
Panchayats (Panchayat Samiti) are part of the 5. Focus on Farming: Making sure growing crops
Zila Parishad.
and raisinganimals is a priority for the village.
Governnment Representatives: Members of 6. Sharing Power: Spreading decision-making
Parliament and state legislature from the district among different Panchayati Raj levels and
have a seat.
involving volunteers.
Officials: A chief executive officer manages the 7. More Village Businesses: Supporting small
administration, supported by a deputy secretary. businesses that make and sell things in the
How Does itWork? village.
8. Working Together Nicely: Making sure elected
The Zila Parishad is elected for a five-year term. officials and village workers understand and
communicate well.
It acts as a bridge between the state
government and the village councils (Gram
Panchayats).
Gram Sabha

The Gram Sabha is like a village meeting! All adults Rethinking and Improvement:
gather to discuss village issues. They can:
Another committee, led by Ashok Mehta,
Talk about problems like water or roads. reviewed the system in 1977.
Suggest solutions and ideas for improvement. They suggested changes like a two-tier system,
Approve plans made by the village council regular checks on spending, allowing political
(Gram Panchayat). parties at all levels, and reservations for
Basically, they have asay in how their village disadvantaged communities.
develops! The Journey Continues:
More committees followed, all aiming to
strengthen Panchayati Raj.
Emergence and Growth of Panchayati One committee, led by L.M. Singhvi, was the
Raj Institutions in India first to propose giving Panchayati Raj
constitutional status.
Panchayati Raj is all about villages governing
themselves! A
Landmark Moment:
It wasn't a new idea in India. Villages already Finally, in 1992,the 73rd Amendment Act made
had Panchayats that handled local issues and Panchayati Raj a part of the Constitution!
disputes, kindof like mini-courts. This guaranteed regular elections, reservations
Even Mahatma Gandhi believed in empowering for women and marginalized communities, and
these Panchayats for a better rural India. more power and resources for Panchayats.
The Constitution Takes Notice:

Knowing their importance, our Constitution The 73rd Amendment Act

includedaprovision for Panchayats (Article 40).
This article tells states to set up village Big Change for Village Councils!
Panchayats and give them the power to
function as self-governing units. In 1992, the Indian Constitution got an update
But, it didn't specify how these Panchayats (73rd Amendment) to strengthen Panchayati
would be organized. Raj.
This added a new section about Panchayats
Building a Structure: and gave them more power.

A
commitee led by Balwant Rai Mehta came up Key Points:
with the first formal structure for PanchayatiRaj
in 1957. Gram Sabhas: Ensured village meetings are
They suggested a three-tier system with village, held for everyone todiscuss issues.
block, and district levels. They also wanted Three Tiers: Established a clear structure with
direct elections for the village level. village (Gram Panchayat), block (Panchayat
Samiti), and district (Zila Parishad) levels.
Taking Steps: Direct Elections: People directly vote for most
Panchayat representatives.
Rajasthan became the first state to set up a
Age Limit: You need to be at least 21 years old
Panchayati Raj system in 1959. to run for Panchayat elections.
Reservations: Seats are reserved for women
 and marginalized communities (Scheduled The Problem:
Castes/Tribes) to ensure their voices are heard.
Election Commission: Each state has a PRIs often don't have enough money to do
special commission to handle Panchayat everything they need to do.
elections fairly. They rely too much on the government, which
Five-Year Term: Panchayats work for five can limit their choices.
years,with new elections if dissolved early.
Financial Support: A commission is set up Structure of Rural Finance
every five years to recommend how to provide
funds for Panchayats. Rural areas need money for development, just like
cities! Here's how they get it:

Formal Sources (organized institutions):

Financial Organizations in Panchayati
Raj Institutions Banks: Regular banks offer loans and savings
accounts for farmers, businesses, and
Village councils (Panchayati Raj Institutions or PRIs) individuals.
need money to do their jobs! But where does it come Cooperative Banks: These banks are owned
from? by their members, often focusingon agriculture
and rural credit.
Mostly from the Government: Regional Rural Banks (RRBs): Set up
specifically to serve rural areas, offering loans
Central grants: The national government gives and other financial services.
money based on recommendations, often for NABARD (National Bank for Agriculture and
specific projects like building schools. Rural Development): This government bank
State government funds: Each state sets provides refinancing to other rural financial
aside some money for PRls based on their own institutions and promotes rural development
priorities. initiatives.
Tax sharing: Some states share a bit of the
taxes they collect with PRIs for amore reliable Informal Sources (less organized):
income.
Money lenders: Individuals or small
A little bit on their own (depending on the state): businesses that lend money at high interest
rates,which can trap borrowers in debt.
Small taxes: PRls can charge a litle bit of tax, " Landlords: Some landlords may advance loans
like a property tax or a fee for using the public to tenants in exchange for a share of the crops.
toilets. Self-help groups (SHGs): Groups of villagers,
Market fees: They can also collect money from often women, who pool their savings and
people who use the village market or other provide smallloans to each other.
facilities.
Choosing the Right Source:
Other sources (not as common):
Formal sources are generally safer and offer
Extra grants: Sometimes the government gives lower interest rates, but may have stricter
extra money for special projects. requirements.
Loans: PRIs can borrow money for big Informal sources can be more flexible but can
projects, but they have to be careful not to be risky due to high interest rates.
borrow too much.
NABARD Government & Non-Government
Organizations
Imagine a giant bank that cares about villages!
There are many organizations working to improve
That's NABARD (National Bank for Agriculture
and Rural Development).
people's lives. Here's a breakdown of two main types:
It's like a super bank that helps other banks 1. Government Organizations (GOs):
lend more money in villages.
Who they are: Run by the government,funded
Why was NABARD Created? by taxes we pay.
What they do: Provide essential services like
In the past, India faced challenges in boosting education, healthcare, roads, and social welfare
rural development through just planning.
programs.
The agricultural and rural economy needed a
Examples:
financial push. Public schools and hospitals
The Reserve Bank of India (RBI), at the
Police and fire departments
government's request, formed a committee in Social security and welfare programs
1979 to address these issues.

The Birth of NABARD:

2. Non-Government Organizations (NGOs) and
Community Based Organizations (CBOs):
This committee, led by Shri B. Sivaraman,
Who they are: Not run by the government,rely
highlighted the need for a new organization to
focus on rural credit needs.
on donations,grants, and fundraising.
They recommended creating What they do: Focus on specific social issues
unique like poverty, education, healthcare,
development bank dedicated to ruralareas.
environment, or human rights.
Based on this recommendation, the Parliament
CBOs are usually smaller and focus on
approved the formation of NABARD in 1981.
It was officially launched in 1982 by Prime
aspecific community's needs.
" Examples:
Minister Indira Gandhi.
NGOs: Red Cross (disaster relief),
What Does NABARD Do? UNICEF (children's rights), Greenpeace
(environment).
Makes it easier for farmers to get loans for CBOS: Local women's cooperatives,
things like land, animals, and crops. neighborhood development groups,
Supports small businesses in villages so they youth clubs.
can create jobs.
Helps fund projects that improve villages, like
better roads or schools.
Teaches people in villages about saving money NGO Vs. CBO
and using loans wisely (financial literacy).
Feature NGO CBO (Community
(Non-GovernmentalBased
Organization) Organization)
Focus Broad social issues Specific needs of a
(poverty, education,particular
healthcare, community
environment, human
rights)
 How SHGs Work:
Geograp Local, national, Local (village, town,
hic international neighborhood) Membership: Usually people from similar
Scope backgrounds (income, social status) in a village
Leaders May have paid staff Led by volunteers or or community.
and professional members of the Activities:
hip
leadership community Savings: Members contribute small
amounts regularly, creating a pool of
FundingDonations, grants, Membership fees, money.
fundraising local fundraising, Loans: Members can borrow from the
sometimes pool for various needs (education,
government grants healthcare, business) with fair interest
rates.
Structur More formalized Less formal Peer Support: Members share advice,
structure with boards structure, often skills, and encouragement with each
and directors based onsocial ties other.
Benefits:
Account Accountable to Accountable to the Empowerment: Members gain financial
ability donors and funders community they independence and confidence.
serve
Financial Security: Access to savings
Example Red Cross, UNICEF, Local Women's and loans helps manage finances better.
cooperatives, Community Building: Creates a strong
S
Greenpeace support network within the community.
neighborhood
development Examples of SHGs:
groups, youth clubs
Women's groups saving for their children's
Advanta Access to wider Deep understanding education.
ges resources and of local needs and Farmers pooling resources to buy better seeds
expertise strong community or equipment.
connections
Artisans working together to market their crafts.
Disadva May be less Limited resources
ntages responsive to local and capacity
needs

Self-Help Groups (SHGs)

Imagine a group of people in your community
coming together to support each other!
That's what Self-Help Groups (SHGs) are all
about.
They are smallgroups (10-25 people) who work
together to improve their social and economic
well-being.