The Hindu Business Line : Decentralised planning a success: Study

The decentralised planning process initiated in Kerala a decade ago has been a success in many respects, according to a rapid assessment study undertaken by the State Planning Board.

Perhaps the most important achievement is political empowerment, including the election to political offices of women and leaders from SC/ST backgrounds, it says.

Another main achievement is that a firm basis has been laid for a lead role being played by local self-government institutions in governance. This will enhance the accountability and effective utilisation of resources.

The overall consensus is that the benefits delivered through panchayat raj institutions may be 30-40 per cent more than the benefits delivered through Central and State Government implementation. This means, some 20-22 paise of every rupee spent on development may be reaching the beneficiaries.

However, the effectiveness of expenditures is still very low. There are also strong concerns about diversion, waste and corruption, says the study report.

A key challenge is improving the capacity of the panchayat raj institutions to effectively utilise the funds available to them. The main reasons for poor utilisation of the funds are weaknesses in the plan process as also the weaknesses in selecting, developing, implementing and monitoring projects. The poor performance of productive sectors, especially agriculture, is another issue to be addressed.

The report says that allocation to the local bodies was higher by Rs 618.50 crore during the first three years of the Tenth Plan (2002-2005) as compared to the allocation during the first three years of the Ninth Plan.

In the light of the assessment study, the Planning Board has recommended that the panchayat raj institutions should be given full authority to appoint and terminate the services of staff. They should also be allowed to build their own technical staff strength.

The institutions should be given every support to raise their own resources within the powers conferred on them under the Constitution. They should enjoy greater autonomy in setting visions and strategies for development.

The Board has also called for simplifying the framework for planning, budgeting, project implementation and release of funds. The planning framework should be restructured in such a way as to restore to elected officials control over development and implementation of plans.

The Central and State schemes should be co-ordinated with the programmes of the panchayat raj institutions. The institutions should at least be informed about Central and State programmes.

A clear system of accountability to the public has to be developed through consultative process. Accountability will be enhanced by greater transparency through better dissemination of information to the public on the activities of the institutions, funds received and raised by them and their audited accounts.

Besides, urgent measures are needed to augment the panchayat's own sources of funds. This must come from the panchayats playing the role of catalyst for investment and economic development.

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