[sivaharimani]

Recent- 2nd ARC Recommandations
(Source-The Hindu)

ON MAKING LOCAL BODIES CITIZEN-CENTRIC

The second Administrative Reforms Commission (ARC) has made a number of recommendations in its report on local governance, favouring democratic decentralisation and making local bodies “citizen-centric.” The commission has recommended promotion of local democracy, which is much more than decentralisation and which seeks to build up local bodies as self-governing institutions.
In its sixth report which dealt with local governance, the ARC, headed by senior Congress leader and former Karnataka Chief Minister, Veerappa Moily, favoured clear delineation of functions of various spheres of government and recommended effective devolution of functions and powers. The report was presented to Prime Minister Manmohan Singh on Tuesday.
Core area
Giving highlights of the recommendations at a press conference, Mr. Moily said the focus was on core principles for democratic decentralisation and make citizens and stake holders play a key role in decision making.
The ARC’s earlier recommendations on ethics in government, public order and other issues were being examined by the Centre and separate administrative and legislative steps would be taken for their speedy implementation. The Commission would organise a national seminar, to be presided over by the Prime Minister, in January for critically examining the crucial subject of ``civil services reforms.”
In the sixth report, the ARC recommended that the government place before Parliament a framework law for local bodies on the lines of the South African Act for laying down the broad principles of devolution of power, responsibilities and functions to the local bodies.
“At the district level, a third tier of democratic government is proposed to replace the present system, which is a colonial legacy. In its place a district council, representing both urban and rural areas, should be constituted and the District Collector should work as the chief secretary of the council while reporting to the State government for regulatory functions. This will ensure convergence of planning and developmental activities for rural and urban areas,” Mr. Moily said.
Yet another recommendation pertained to Parliament making provision for constitution of a legislative council in each State. It would comprise members elected by the local bodies in order to strengthen the voice of local bodies.
Mr. Moily said that to reform the electoral process, the task of delimitation and reservation of constituencies should be entrusted to the State Election Commission.
To strengthen local bodies’ finances, the Commission recommended that a State Finance Commission be constituted in such a manner that it can take into account the recommendations of Central Finance Commission.
The Commission recommended that local bodies take total responsibility for the functions entrusted to them under the Constitution and bodies such as electricity boards and water authorities made responsible to them. For ensuring accountability and transparency in the functioning of local bodies, it was suggested that a local body ombudsman be constituted to look into complaints of corruption and maladministration.
To suggest steps to deal with rapid urbanisation, the commission recommended the setting up of a national commission of urbanisation. It also favoured direct election of Mayors by popular mandate.


ON ABOLITION OF OCTRAI

The second Aministrative Reforms Commission on Tuesday advocated simplified property tax and abolition of octroi. In its report on local governance, the Commission also suggested increase in fines for civic offences and amendments to existing laws to arm municipal authorities with powers to impose fines for such violations.
Suggesting scrapping of octroi, the Commission said states should evolve mechanisms to compensate the local governments for the loss of revenue.
It asked the state governments to ensure that all local bodies switch over to the 'unit area method' or 'capital value method' for assessment of property tax.
Under the Unit Area Method, the parameters for assessment of tax can be changed periodically so as to reflect the market values.
Property tax based on capital value overcomes drawbacks based on annual rental value as taxes are self-assessed by the property owner every year and while doing so, the market value prescribed for that year is taken into account.
This ensures that the property tax reflects the current market value and hence is buoyant, the Commission noted in its 422-page report.


ON URBAN POOR

The Administrative Reforms Commission has recommended a nationwide survey of the urban poor so that they can avail benefits under all poverty alleviation programmes. The Commission in its report "Local Governance" noted that poverty was a "pernicious and distressing feature" and in urban areas it is "excruciatingly visible."
"An exhaustive survey to identify the urban poor should be carried out within one year," the Commission said, recommending a "door to door" survey.
"The urban poor so identified may be issued a multi-utility identity cards for availing benefits under all poverty alleviation programmes," the Commission said.
After identifying the urban poor through surveys, a mission mode approach would need to be adopted for alleviating urban poverty in a time bound and systematic manner.
"That the eradication of the poverty should receive the topmost priority of urban local bodies cannot be over-emphasised," the Commission in its report said.
Citing reasons, the report pointed out that development of the society "would be skewed" if large section live in abject poverty.
The daily struggle of urban poor to earn livelihood prevent them to participate in meaningful way and results in silencing their voice, it said.
"Incidence of poverty translates into deprivation, minimised role in decision making," the report said.
The thrust of the urban poverty alleviation programmes should focus on enhancing their skills, the Commission said.
Training institutes may be set up on the lines of RUDSETIs (Rural Development and Self Employed Training Institutes) for imparting training to the urban poor for self employment. These institutes could also help in wage employment related skills, the Commission noted in its report.
It said in case of setting up of micro-enterprises, the urban poverty alleviation schemes should be flexible in selecting projects and providing financial assistance.
"To maximise the benefits micro-finance, formation of self help groups needs to be encouraged. Institutions and NGOs with good track record should be encouraged to promote these groups for availing micro-finance," the report said.
There are an estimated 60 million urban poor in the country and the level of funding for their uplift was "far too inadequate," the report noted.
During the financial year 2006-07 the allocation for urban employment scheme of the government was Rs 250 crore. The number of beneficiaries assisted for setting up micro-enterprises till December 2006 was 7.25 lakh and number of person trained was about 9.80 lakh, it said.
Notably, Only 2,01,412 women were assisted under the scheme and just about 1,78,307 thrift and credit societies were formed.
Citing UNFPA's 'State of World Population 2007' report, the Commission said "women are generally poorest of the poor" and improving their situation was "pre-requisite to eradicating poverty."
"The lower number for women indicates that much needs to be done to upgrade their skills and provide them gainful employment," the Commission said.

[BHASKAR R]

CHAIRMAN
M Veerappa Moily

MEMBERS
V Ramachandran
A P Mukherjee
A H Kalro
Jayaprakash Narayan
Vineeta Rai


Till date following reports have been submitted

1st report- 'Right to Information; Master Key to Good Governance',
2nd report- 'Unlocking Human Capital: Entitlements and Governance-a case study'
3rd report- 'Crisis Management'
4th report- 'Ethics in Governance'
5th report- 'Public Order'



Terms of Reference for the 2nd ARC
1. Organizational Structure of the Government of India
2. Ethics in Governance
3. Refurbishing of Personnel administration
4. Strengthening Financial Management Systems
5. Steps to ensure effective administration at the State level
6. Steps to ensure effective District Administration
7. Local Self Government/Panchayati Raj Institutions
8. Social Capital, Trust and Participative public service delivery
9. Citizen Centric Administration
10. Promoting e-governance
11. Issues of Federal Polity
12. Crisis Management
13. Public order

[neo_sagar]

thanks for the info.

[rider.royal]

6th report of ARC : local governance.

For complete report:
As yet I cant post link in my post, the link till then is arc(dot)gov(dot)in