The local bodies remain subordinate to the respective state governments, despite being given the constitutional status as the third tier of the government. Analyse.

The 73^rd and 74^th constitutional amendments created a third tier of government in the form of Panchayati Raj and Municipalities.

Constitutional Provisions:

• Three tiered Panchayati Raj structure at village, block and district level.
• Direct elections at all three levels.
• Reservation for women (1/3^rd seats), SC/ST (in proportion of population) and Backward classes (depends on the state government).
• Gram Sabha – all members on electoral roll of village.
• Municipalities, Municipal corporations, notified area committees, at urban level.
• Powers and ability to tax as per devolution done by states in 11^th and 12^th schedules respectively.

However, they remain subordinate to states:

• Limited devolution of powers.
• Less fiscal space as dependent on grants.
• Resistance to raise taxes – post GST tax scope has decreased (octrai tax, etc).
• Large variations in how states share powers.
• Lack of capacity building initiatives.

Way Ahead:

• If done correctly, local governance can do wonders in last mile governance. E.g. Kadamshree in Kerala, Village volunteer program in Andhra Pradesh.
• States are too big and unwieldy institutions for local governance.
• Local delivery has gained more prominence in the light of Covid-19.
• Tax base should be increased through municipal loans, more devolution.
• Increase the devolution of power under 11^th and 12^th

Good governance at local level can help states fulfill the aspirations under article 40 of our constitution.