Panchayat Raj

• The term Panchayati Raj in India signifies the system of rural local self-government.
• It had been established after the advice of the Balwant Rai Mehta committee, which is established by the Govt. of India in 1957.
• As a result of this scheme the first Panchayat system introduced in Rajasthan in 1959.
• This system observed a lack of people's participation.
• To overcome this failure a new committee named Ashok Mehta committee gives a two-tier governance plan in 1977.
• The two-tier plan was Zila Parishad and Mandal Panchayat.
• This Panchayati Raj faced a major constitutional amendment in 1992 that brings back the three-tier system again.

Finance of Local bodies

• Every Panchayat has the right to receive grant-in-aid from the State Fund based on the recommendation made by the State Finance Commission.
• On the recommendation of the State Finance Commission, the Gram Panchayat, Panchayat Samiti and Zilla Parishad can collect tax/fees as per the direction of the government.
• Gram Panchayat, Panchayat Samiti and Zilla Parishad respectively constitute Gram Panchayat Fund in the name of Gram Panchayat, Panchayat Samiti Fund in the name of Panchayat Samiti and Zilla Parishad Fund in the name of Council, and deposit their funds in the deposit accounts.
• The Assigned/Shared revenues are one which is collected by State Government but transferred/shared to/with local bodies.
• The major sources of assigned/shared revenues to the rural local bodies are Local Cess, Local Cess Surcharge, and Surcharge on Stamp duty, Entertainment tax, seigniorage fees, and lease amount of mines and minerals, and sale proceeds of Social Forestry plantations

Balwant Rai Mehta Committee

• The Balwant Rai Mehta Committee was a committee originally appointed by the Government of India to examine the working of the Community Development Programme and the National Extension Service.
• The committee was formed on 16th January 1957.
• Balwant Rai Mehta was the Chairman of this committee.
• The establishment of a 3-tier Panchayati Raj system is one of the main recommendations of this committee.
• The 3-tier system recommended by this committee are:

1. Gram Panchayat at the village level.
2. Panchayat Samiti at the block level.
3. Zila Parishad at the district level.

• Other important recommendations of Balwant Rai Mehta Committee are:
• The Panchayat Samiti should be the executive body while the Zila Parishad should be the advisory, coordinating, and supervisory body.
• The District Collector should be the Chairman of the Zila Parishad.

Devolution grants

• The devolution grant shall be distributed to Village Panchayats, Panchayat Unions, and District Panchayats in the ratio of 60:32:8 respectively as recommended by the Third State Finance Commission.
• A minimum grant of Rs.3 lakhs to each Village Panchayat shall be provided as a measure of equalization, the balance amount shall be distributed based on population.
• The devolution grant shall be distributed within each tier of rural and urban local bodies based on the 2011 population.

District Planning Committee

• District Collector functions as Secretary to the District Planning Committee.
• District Planning Committee created as per article 243ZD of the Constitution of India
• The Committee in each district should consolidate the plans prepared by the Panchayats and the Municipalities in the district
• It also prepares a draft development plan for the district.
• The main functions of the district collector were to supervise general administration, to collect land revenue and to maintain law and order in the district, He also performed judicial functions