In a move aimed at reducing bureaucratic interference, the ministry of Panchayati Raj has proposed that states move towards a system of peer review, where Panchayati Raj Institutions review the decisions made by lower local bodies.
The ministry has also asked the states to prepare a five-year plan for effective devolution. This is to ensure full devolution of functions, functionaries and finances.
"It would be preferable to make provisions for devolution through legislation rather than administrative orders," the action plan prepared by the ministry for the Seventh Roundtable of Ministers incharge of Panchayati Raj said.
It has also recommended the merger of district rural development agencies with the district panchayats, and asked the states to prepare a roadmap for untying larger proportion of grants to the panchayats.
"Few states have demonstrated adequate awareness of the centrality accorded by the Constitution to planning at the grassroots level. A five-year roadmap, with annual milestones for effective participatory district planning in each state, is thus an imperative need," it said.
The ministry said restructuring of the planning and implementation mechanism along with monitoring agencies at the state level may be needed to ensure that funds of over Rs 31,000 crore (Rs 310 billion) per annum, devolved in terms of the 11th and the 12th Schedules, are chanelled directly to the panchayats.
"Consideration may also be given to establishing a standing committee of the state legislature to keep a watch on the sound finances of the elected local bodies," it said.
Panchayati Raj institutions must be free to determine the number of bureaucrats or technocrats on their rolls so as to free them of excess staff. At the same time, the ministry said states should progressively build a cadre which could be constituted into a Panchayat Service.
Grassroots growth
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