PEOPLE'S PLANNING Towards a Hand Book

(Presented at the Workshop Organised by State Planning Board, Tripura at Agarthala, 3rd & 4th May 1999)

T.M. THOMAS ISSAC Member, State Planning Board

Kerala State Planning Board Pattom, Thiruvananthapuram - 695 004

Chapter 1

INTRODUCTION-DECENTRALISED PLANNING IN INDIA

The history of Decentralised Planning in India may be traced back to the first discussions of planning in the country. Shri.Vishsveshwaraya, who was a pioneer of Indian planning, in his 1942 study called District Development Scheme—Economic Progress by Forced Marches, conceived of a four-tier planning system for Mysore. For the Gandhian School of planners, local-level planning was to be the basis of the entire planning process. Instead of confining themselves to the conceptual level, they made village studies, drew up local plans and attempted to implement them on an experimental basis. The influence of these experiments has survived into the post-independence period through the activities of some of the developmental voluntary groups and to a limited extent through official programs such as Community Development Block Programs. However, mainstream planning in the post-independence period moved away from Gandhian ideals. Planning became centralised in the national capital, and to an extent in the state capitals. Local-level planning linked to the community development blocks became confined to a narrow spectrum of activities. Soon it degenerated into yet another departmental type of planning. Nevertheless, all the plan documents from the First Five-Year Plan onwards have emphasised the importance of decentralised planning and the area development approach.

Proclamations about the significance of decentralised planning were perhaps necessary, given the strong rationale for decentralisation as a means of accelerating economic growth in small scale sectors and increasing the efficiency of services. In economics the most influential arguments have been drawn from the theory of fiscal federalism. Three basic functions of fiscal policy are allocation, redistribution, and stabilisation. By their very nature, redistribution and stabilisation are best served by a central agency, but allocation function is exercised most optimally at the local level. This enables it to fashion public services to correspond to the preferences that vary among groups of consumers (Musgrave 1959). The most famous theorem on fiscal decentralisation was put forward by Gates (1972): "Each public service should be provided by a jurisdiction having control over the minimum geographic area that would internalise the benefits and costs of such provision." The implication is that public goods do not have uniform spatial characteristics and that different localities can have different preferences for public goods. It will be difficult for a centralised government to match the two. Further, it has also been argued that bringing the decision closer to the point of action through decentralisation, reduces the cost of information (Marshach and Marshach, 1959). Decentralised Planning has also received considerable

support from spatial planners. Area Plans require decentralisation of planning at the regional and sub-regional levels.

In Indian policy literature, numerous arguments have been put forth in favour of

decentralisation which can be summarised in the following three points:

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> Decentralised planning facilitates the formulation of more locally relevant programmes with reference to the natural endowments and felt needs of the people. The universal and standardised packages of centralised planning cannot cater to the local specifics.

> Centralisation inevitably leads to narrow departmentalisation, fragmentation and dupli-cation and lack of complementarity between the programmes at the ground level. Only through decentralisation and by making the department officials accountable to the elected representatives at the local level can horizontal linkages and integrated programmes be ensured.

> Finally, a decentralised system facilitates the participation of ordinary people in the planning and development processes. People's participation in turn facilitates additional local resource mobilisation for planned development, prevents misuse and leakage of resources and contributes towards efficient implementation and social monitoring of the programmes.

Official Guidelines on Decentralised Planning

The Planning Commission took the first step to operational ise the oft-repeated need for

decentralisation in 1969 when it issued Guidelines for the Formulation of District Plans.

The Commission concluded that the area development approach couldn't be undertaken at

the state level, given the widely varying physical, geographic, and economic

characteristics of most states. The district was considered ideal for area level planning as a

database existed for that level and also because it had a suitable administrative structure

to undertake the planning.

The Guidelines specified the procedure for creating a district plan: After a critical appraisal of the existing level of development in the district, an integrated strategy based on availability of resources and hierarchy of priorities are to be drawn up. The Guidelines elaborated the factors that had to be considered in assessing the level of development in different sectors and the approach to be adopted in formulating local-level plans. The plan was to be based on "available statistical and administrative data, the advice of knowledgeable farmers and entrepreneurs, experience of local officials, and systematic appraisal of ongoing programmes." After detailed consultations with department officials, block development officers, "progressive farmer entrepreneurs," a round of discussions was to be arranged with "representatives of co-operatives, local self-government bodies, banks, and Panchayati Raj institutions to obtain their views about ideas contained in the preliminary framework." Surprisingly, the role of local self-government was confined only to this round of generaldiscussions.

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The next important document reflecting official thinking about decentralised planning was the 1978 Report of the Working Group on Block Level Planning, headed by Professor M.L.Dantwala. By then the development blocks had ceased to be "community development blocks," but rural development blocks were mainly carrying out a rapidly growing number of schemes formulated by the central government for poverty alleviation and employment generation. Large amounts of money were going into the blocks. It was considered important that they be implemented in an integrated manner keeping in mind their possible linkages with other government programs and overall development needs of the area. This provided the context for a greater interest in block level planning. The Working Group was to suggest methods for preparing block level plans which were to be implemented on an experimental basis in selected blocks throughout the country.

The Working Group suggested that the preparation of the block plans be entrusted to a single

district level planning team. Two reasons were given. Firstly, the capability of preparing

comprehensive area plans could be created only at the district level, and even that would

require significant expansion in the number and capabilities of the technical staff. Secondly, the

existence of such a team would contribute to greater integration of district and block level plans.

The committee rightly noted that "except in few states, there is hardly any worthwhile set up of

Panchayati Raj institutions." Where they existed, adequate safeguards would have to be

provided against the likelihood of dominance of Panchayati Raj institutions by vested

interests, giving the poor a decisive voice in the preparation of micro-level grassroots plans.

Therefore, the committee did not consider that the Panchayati Raj institutions could play an

important role in local level planning. Essentially the- approach was bureaucratic planning

helped by voluntary agencies and professional institutes. It was sceptical of the effectiveness of

public participation in planning:

First, we should be clear as to who we do have in mind when we talk of the people: their representative political institutions such as the district and taluka panchayats or class organisations where they exist (khedut mandals or trade unions), political or caste leaders or target groups. It is well known that the public is not a harmonious.

entity; it really comprises groups with conflicting interests. If we wish to plan for the weak, the plan may have to be imposed from above and cannot be a product from below in which "the below " is dominated by the rich and the strong.

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Second, people can make a contribution to planning only if they are presented with a well-articulated and feasible framework of approaches, objectives, measures, and alternatives. If, however, they are asked to indicate their needs in a vacuum, they are bound to put up a charter of demands, which will be far beyond the capacities of the government.

A third constraint on public participation "emanates from technical imperatives of planning." The planning process has to be a continuous dialogue between the experts and the public; it does not begin with the public.

A concrete outcome from the Dantwala report was the preparation of model block level plans in a large number of selected blocks across the country, by agencies such as NIRD (National Institute of Rural Development) and voluntary agencies such as Association of Voluntary Agencies for Rural Development (AYARD). These experiments created a large pool of methodological experiences, which have influenced some local level micro-plans. The methods perfected in these experiments concentrate too much on identification of a hierarchy of settlements and optimum allocation of social and physical infrastructure. They also demanded such elaborate data collection and analysis that the experiments did not spread to very many new areas. Most block level programs remained in the old groove of departmental and ad hoc public works programs.

The next important document on decentralised planning in India is the Report of the Working Group on District Planning, headed by Professor C.H.Hanumantha Rao (1984). As the name suggests, the focus had shifted back to district level planning. In an appendix, the report presented the state of the art of district level planning in each major state as prepared by the respective State Planning Boards (SPB). These state reports allow the systematic review of the progress achieved since 1969 when the Planning Commission had issued the first guidelines. This district planning machinery was known by various names: District Planning Board/Committee/Councii, District Development Committee/Board/Council, District Planning and Development Council, and so on. Either a state government cabinet minister, district collector, MLA, or non-official expert chaired the group in various states. However, it may be noted that in no state was the district panchayat president deemed fit for the post. The district planning bodies generally had such large memberships that they had to be primarily deliberative. The technical planning personnel at their disposal were few and mostly drawn from the general administrative cadre.

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In most states the actual planning process went as follows:

Usually, after the state budget is voted in the assembly, the different heads of departments are requested to make a district-wise break up of the outlays provided in the plan budget. This is then communicated to the districts, either by sectoral departments or by the planning department of the state. This usually takes four-five months after the commencement of the financial year. After this communication is received, the district attempts to incorporate a write up for the district-wise outlay and a document called 'district plan' emerges in this manner, which is purely an aggregation of departmental schemes.

The only exceptions to this pattern were some minor innovations introduced by the governments in Maharashtra, Gujarat, Karnataka, Uttar Pradesh, and Jammu and Kashmir. These states made serious efforts to classify the plan schemes into state level and district level. District schemes were defined as location-specific within the district with the benefits largely staying in the district. Thirty to forty-five per cent of the state plan schemes was identified as district schemes. Differing criteria, population weights and backwardness indicators were used to allocate schemes among the districts. The truly innovative feature in these states was the introduction of a non-scheme component, that is, untied funds which the districts could decide on how to use with no constraints. In Gujarat, the untied funds constituted 20% of the district outlays of which one-third was set apart as incentive funds to match local resources mobilised at the district level. Karnataka made a lumpsum provision to each district. Maharashtra that had pioneered this innovation, started a "state pool of district schemes" on the analogy of centrally sponsored schemes. Attempts were also made to set up district level databases or to formulate improved procedures for releasing funds, reappropriation, and giving administrative and technical sanctions. However, in none of the states, mentioned above, was any attempt made to involve the local bodies in planning. Planning remained strongly bureaucratic with the public and others performing only consultative roles.

Planning procedures continued unchanged through the 1980s and early 1990s except for two notable exceptions: Kamataka and West Bengal. In both these states political factors triggered pioneering attempts at linking local self-governments to the planning process in a meaningful manner. In Karnataka, a Janata Dal government came to power in 1983 with an electoral promise for radical decentralisation. Some of the leaders, particularly the Local Administration minister, had high regard for the Ashok Mehta Committee Report, an outcome of the short-lived Janata Dal government at the centre. In West Bengal, a CPI (M) government that had given high priority to local self-government

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won re-election to a second term. We shaft briefly survey the experiences of these two states before taking up the case of Kerala.

Decentralised Planning in Karnataka When Karnataka State was formed in 1956 divergent systems of local bodies existed in the

constituent regions. These were unified according to the recommendations in the Balwantirai

Mehta Committee Report, which laid the basis for comprehensive legislation on local self-

government. A three-tier structure of village panchayats, taluk boards, and an indirectly

constituted body at the district level was set up. As was the case with the first generation of

Panchayati Raj institutions in the rest of the country, in Karnataka also degeneration set in.

Elections due in 1964 were postponed until 1968 to be held only in 1978. When the .Janata Dal

came to power in 1983, the party set out to frame a new legislation on the model of the Ashok

Mehta Committee's recommendations. After a delay of two years, the Indian President

approved the new law and elections were held in January 1987 to the zilla parishads and

mandal panchayats. The zilla parishad was given primacy with a wide range of powers

including the power to formulate a district plan. The mandal panchayat, or a group of villages

with eight to twelve thousand inhabitants, was conceived as an implementation agency. The

intermediate tier of taluk-panchayat samithi was not directly elected, but consisted of the

presidents of the mandal panchayats, MLAs, and other nominated members. It had only a co-

ordinating function. Only the mandal panchayats had rights to tax. On the whole, the institutions

depended on state government grants.

Karnataka had a good track record in early district planning experiments of the 1970s. As a

result, by the time the second generation panchayats were formed, every district had a fairly

reliable database, a perspective plan, at least a core team of personnel with formal training in

local level planning, and, more importantly, the experience of a variety of systems of plan fund

allocations such as untied funds and major head and minor head allocation systems. All these

helped Karnataka to go forward with the boldest decentralised planning in India at the time. Up

to 20% of the plan outlay which was earlier devoted to district schemes was devolved to the

zilla panchayat as a lumpsum grant. Criteria for inter-district allocations and for further

devolution from the districts to the mandal panchayats were clearly laid down. The district

plans were to be finalised by the zilla panchayats and submitted to the state government to be

formally incorporated into the annual plan document and the state budget.

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The mandal panchayats were to send their proposals within the outlay indicated to them by the zilla panchayats after consultation with the hamlet-based grama sabhas. The zilla panchayats would then integrate the proposals from below into the district plans along with the district level schemes that the zilla panchayats had prepared. A format for the district plan document was also prescribed. The document was to have 12 chapters, with the first 10 devoted to detailed situational analysis of the natural resources, infrastructure, sectoral development problems, and reviews of ongoing schemes. The last two chapters were to offer a long term perspective for the development of the district and the priorities of the district plan. A timetable was laid down to assure that the procedures were completed well in advance of the finalisation of the state budget.

This bold initiative was characterised by many as path breaking but it never got a chance to be fully realised. The first year saw considerable delays and teething troubles. By 1988 serious factional infights in the ruling party began to undermine the will to carry out any large scale devolution. The fate of the decentralised experiment was sealed when the Janatha Dal government lost power in 1990. The new government had little sympathy for the nascent lower level democratic bodies. The powers of the zilla parishads were systematically scuttled. In the wake of the 73rd and 74th amendments these powers were given a quiet burial and a much-watered down version of the law was enacted.

Decentralisation in West Bengal

West Bengal was a late starter in decentralised planning. At the time of independence, its local government structure consisted of grama panchayats at the village level, anchal panchayats-indirectly elected from the grama panchayats at the intermediate level, and district boards at the state level. Though a panchayat act was passed in 1957, only half the grama panchayats were actually formed, even in 1963. District boards from colonial times continued to function. Local self-government had few resources and few functions. In 1963 the law was amended to create anchal parishads coterminous with the blocks and zilla parishads in place of existing district boards. In the political turmoil of the mid-1960s nothing much got to be done to implement the legislation so that in effect no local self-government functioned in the rural areas.

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In 1973 the West Bengal Panchayat Act was passed, constituting a four-tier structure: the grama sabha at the hamlet level, the grama panchayat at the village level, the panchayat samithi at the block level and the zilla parishad at the district level. Even though the Congress government then in power passed the Act, it was only when the left front government came to power in 1977 that steps were taken to organise local elections. The June 1978 elections to local self-governmental units heralded a new era in which elections to the local bodies were held at regular 5-year intervals in 1983, 1988, 1993, and 1998 as required by the Act. This is a remarkable record for any Indian state. Not only were elections held regularly but the state also witnessed a consistent enhancement of the powers and functions of the local self-governing units. Since 1978, under the Left Front government, West Bengal provides the longest and the most elaborate experiment in local democracy in India.

In the first term of the local self-governments between 1978 and 1983, their primary activity

was related to implementing West Bengal's land reforms. They became the main

administrative instruments for detecting illegal landholdings, identifying the sharecroppers and

their rights, and distributing the land. The panchayats were able to carry out these tasks

successfully because the 1978 elections held in the uptide of the peasant movement in West

Bengal brought forth a Corp of local leaders from the ranks of the landless and poor peasants

into panchayat leadership positions. Studies on the class composition of the panchayat

members in 1978, 1983, and 1988 show a dramatic shift in the rural power structure in favour of

the poor. As Kohli (1983) observed, this was "a break from the past political patterns in India.

The panchayats in West Bengal or in most parts of India have seldom been so free of domination

by landlords and rich peasants."

The newly formed panchayats were also forced by circumstances to plunge into relief work

after the devastating floods of 1978. Observers were surprised that the unprecedented floods did

not result in a massive influx of migrants to Calcutta as was experienced during earlier natural

calamities. The panchayats were at work.

Initially, the management of the Food for Work programs and later the National Rural Employment Program was organised through the panchayats. This was an activity they conducted credibly, using the funds for creating infrastructures essential in the post land reform period. The panchayats also began to play important roles in identifying and channelling credit to the neediest peasants and in helping to create marketing facilities. These

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events and developments set the stage for devolution of planning to the local self-governments after the 1983 elections.

In 1985 a three tier planning machinery was constituted. At the state level was the State Planning Board (SPB). At the district level were two institutions: the District Planning and Co-ordination Committee (DPCC) and the District Planning Committee (DPC). The zilla parishad chairman headed the DPC with the District Collector as member and secretary. It also included representatives of the panchayat samithis and municipalities. The DPC became the effective planning machinery at the district level. The DPC headed by a minister and including the members of the DPC, MLAs and MPs was a more of a deliberative body. At the block level was the Block Planning Committee (BPC). The BPC was headed by the chairperson of the block level samithi and had the Block Development Officer (BDO) as member-secretary. The local plans had three components: the district-level sector schemes of the state government departments, centrally sponsored anti-poverty and rural employment programs, and projects prepared using untied funds. The main operational component of the plan consisted of the funds from centrally-sponsored programs which, from 1978 onwards, were routed through the local self governments. The untied plan funds proved to be meagre; ranging from 0.58% of the 1993-94 outlay to 5.71% in 1989-90. Departmental sectarianism and the resistance of bureaucracy proved to be serious impediments before meaningful integration of the district sector schemes with the local plans. As Planning Board Vice Chairman Professor Arun Ghosh wrote in 1988:

There is little progress in regard to co-ordination and vetting of departmental plans - in so far as they affect a district - by district planning and co-ordination committee. Power is not shared easily or voluntarily by any individual: and the departmental mandarins at the state headquarters have not in general relinquished their control or authority over departmental outlays.

Detailed analyses by scholars have shown that the disbursements that appear to increase by as much as 57% in 1993-94 were more a matter of definitional changes (Charvak, 1997). Further, the actual plan expenditure on district schemes was much lower than the initial allocation and the share of district sector schemes in many development sectors display violent fluctuations from year to year. If district sector schemes are devolved under minor subject heads the autonomy of district planners would be severely restricted to. It is also necessary to distinguish between district sector schemes, which are implemented through the

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local bodies and directly through the line departments. In the latter case, district level planning may effectively be a consultative process. The actual experience varied from district to district, depending mostly on the political clout of the district panchayat president.

Another major problem with the district sector schemes was the failure of the department authorities to inform the district planning authorities of their likely allocations. For this reason, the first year's plan in 1985-86 was more in the nature of an ex-post facto exercise. Despite serious efforts by the SPB, during the following year, there was inordinate delay in departmental communication to the local self-government about their district sector schemes. So, for the next year, 1987-88, a strict calendar was drawn up, improving the situation somewhat. But the problems persisted. Given this situation the effective planning was related to Centrally Sponsored Schemes. These plans were prepared on the assumption that the previous year's allocation would continue.

The efficiency of planning varied from district to district. In districts such as Midnapur and Bardhaman the district plan documents produced even in the first year were impressive. In these districts the grama panchayats forwarded Felt Needs List to the panchayat samithi which prepared a priority list of proposals within a financial ceiling indicated to them by the district panchayat. The district level planning machinery integrated the block and municipal plans, and the independent programs of the district panchayats into an overall district plan. A credit plan was also drawn up in consultation with bankers. The district plan of Bardhaman filled seven volumes. The first volume dealt with the profile of the district and the perspective on development. The second volume provided a spatial dimension for the proposed plan using cartography and focusing on geography, natural resources and land use. The remaining five volumes gave the plans of each block and municipality. Of the total plan outlay of Rs 62 crores, Rs 25 crores were for district sector schemes, Rs 22 crores from centrally sponsored schemes, and discretionary funds 1 crore. The rest was the expected finance from the banking sector. Over the next decade, West Bengal's approach became more efficient and stable. The mid-1990s saw initiatives for greater grama sabha involvement in identifying needs and in the planning process in general, but it would be difficult to identify any qualitative break with the system that had been brought into being in the mid-1980s.

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73rd and 74th Constitutional Amendments

Before we move to introduce the Kerala experience in decentralised planning, we will briefly survey the implications of the 73rd and 74th Constitutional Amendments. The constitutional amendments came into force from 20th of April 1993 and all the state governments had to enact confirmatory legislations making their laws conform to the broad framework enunciated in the constitution. Some of the most important departures that the new constitutional amendments heralded are noted below.

> They brought about a uniform three-tier structure: district, taluk/block, and village levels in the rural areas. Only for small states with populations of less than 2 million y/as the intermediate tier optional. The amendments also introduced the concept of township panchayats for smaller urban centres, that is, rural areas in the process of urbanisation.

> The local self-governments were tb have a uniform 5-year term and in the event of dissolution elections were to be held within 6 months. The elections were to be organised by an independent election commission.

> There was to be SC/ST reservation in their proportion to the population, both as members and chairpersons of local self-government at all levels.

> In membership and for chairpersons a one-third reservation was made for women, at all levels.

> A separate schedule was added to the constitution (llth Schedule) listing 29 subjects that could be devolved to local self-governments.

> Every state government was to periodically appoint a state finance commission to determine the share of state government revenues and sources for local revenue of the local self-governments so that they can cany out the duties devolved to them.

> The local self-governments were to be involved in planning. A new constitutionally mandated structure, the District Planning Committee, was to be formed in every district. Two thirds of the membership was reserved for representatives of the district panchayat and the urban local self-governments.

The constitutional amendments have guaranteed that local self-governments throughout the

country will have a uniform structure with regular, periodic elections. This was no doubt a big

step forward. But it must also be pointed out that by imposing a rigid uniform structure, the

amendments forced the creation of an intermediate tier (the block panchayat) even in states

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like Kerala where a consensus existed among all political parties against such a tier. Given the

small size of districts in Kerala, such a tier, everyone felt was unnecessary.

Though the constitutional amendments spoke about self-governing units at the local level, they did not envisage any substantial regulatory functions for the local bodies. The tradition of looking on the local bodies as mere development agencies persists in the new laws. Worse still, the amendments divide rural and urban areas into separate compartments. District level local governments do not cover the urban areas. Thereby, the constitutional amendments foreclosed the possibility of the emergence of integrated elected governments at the district

level. The DPC to co-ordinate the planning for urban and rural areas has oftenJie^ruMted as a

mechanism for rural-urban integration. But the DPC is only aplanning body, not an

administrative body. Due to the rural-urban divide the district administrations, as a whole can never be fully brought under elected representatives at the district level. Thus the ideal of democratic decentralisation or democratic governments at lower levels continue to elude Indian democracy despite the recent constitutional changes.

Nevertheless, the above constitutional changes have serious implications for the approach to

decentralised planning. First, every local body has a constitutional right to prepare its annual

plans, of course, subject to the resources made available and guidelines given by the state

government. Second, there is a constitutionally mandated DPC. As we have seen, the local

bodies so far have not been the central fulcrums of the official conceptualisations on decentralised planning. The Constitutional Amendments call forth a drastic revision of the

official approach.

The constitutional amendments have given rise to a third generation of panchayats. Unlike in the past, it will not be possible for state governments to postpone local elections indefinitely. But, by and large, the newly elected local bodies have remained a far cry from "institutions of self government" that the constitutional amendments formally proclaim. Further, the powers, finances, and functional autonomy of the local self-governments were left to the discretion of the state governments. A major weakness of the constitutional reform is that it does not mandate a minimum list of functions to be devolved to the local self-governments.

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The constitutional amendments created only an enabling framework for the state legislatures to

determine the scope of actual devolution to the local bodies. The actual powers and functions

devolved to these new institutions vary widely among the states with many providing no

enhancement of local powers over the past. The unwillingness of the central government to

devolve any of its own powers to the states is the basic factor responsible for this. In such a

situation, "it is not surprising that neither the bureaucrat nor politician of the state level is

prepared to decentralise whatever power has been conferred to the state under the Constitution"

[E.M.S Namboodiripad (1978)].

State finance commissions have been appointed and reports have been submitted. An analysis of

the State Finance Commission report shows that the resources devolved to the local self

governments would not increase substantially even if their recommendations are

implemented. More than the increase in resources, a major positive impact of the state

finance commissions would be the reduction of arbitrariness by state governments in

devolution of funds [Lekha, 1997, Shaheena, 1999]. The DPCs have yet to begin functioning

effectively and the involvement of the local bodies in planning has not undergone any

qualitative change over past practices. It is in the above rather not so warm scenario that the

ongoing experiment for decentralised planning in Kerala assumes significance.

Decentralised Planning in Kerala

With its land reforms, universal literacy, powerful grassroots organisations, and vibrant civil society, Kerala should provide fertile ground for nourishing self-government institutions. But the history of local self-government in Kerala is dotted with half-hearted reforms, partial successes, and blatant reversals. The attempt of the Communist ministry that came to power in the first elections to the new constituted state of Kerala for a comprehensive legislation for local self-government could not be consummated as the government itself was dismissed before its term ended. The legislation in 1961 integrated the Panchayati Raj and Municipal arrangements that existed in the three constituent parts of Kerala into a uniform system. However, the functions of grama panchayat remained confined principally to traditional civic functions and their autonomy was severely restricted by departmental controls. Despite the repeated efforts made from time to time, elected representative bodies at the district level could be realised only in 1991. The district council law had been passed in 1978, but had to wait for more than a decade for a conducive political environment for its implementation.

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As in the rest of the country decentralised planning in Kerala started in the early 1970s with the establishment of District Planning Offices and identification of district schemes. A number of methodological exercises for district level planning was also carried out. A major step in putting into practice the concept of decentralised planning was taken in the mid-1980s with decentralisation of the Special Component Plan (SCP) and Tribal Sub-Plan (TSP).

For district planning of the SCP and TSP a Working Group was set up chaired by the District Collector and co-ordinated by the District Planning Officer. All the senior line department officers were in the working group. Each department was to indicate the funds it set apart for the SCP from their departmental plan allocation in that particular district. The schemes were to be prepared by the working group taking into consideration the local conditions. For this purpose a habitat and colony survey was carried out and a fairly comprehensive database was prepared on the living conditions of the SC and ST populations. The working group was empowered to sanction schemes up to a fairly high limit without seeking permission from the higher bodies. Every year, a plan was to be prepared and placed before the District Advisory Committee of Scheduled Castes for reactions and approval. The decentralisation of planning for SCP/TSP had a positive impact on the functioning of the schemes, but there was very little popular participation and plan formulation remained highly departmentalised. Integration of projects was only formal. Lack of transparency led to increases in leakage and misuse of funds over time.

The next major event in Kerala's not so exciting history of decentralised planning was formulation of the 8th Five Year Plan. The Left Democratic Front (LDF) government was taking serious steps towards setting up district councils in the state and overhauling the local self-government system. The draft approach paper for the plan prepared by the SPB reflected this concern of the government and emphasised decentralisation of planning as a precondition for popular participation.

Departing from traditional plan preparation methods, line department heads were asked to formulate proposals only for state sector schemes. A list of schemes and topics for which proposals could be sent from the districts was distributed. Each district was given a rough indication of the maximum outlay for which proposals should be submitted. The DDC was assigned the duty of preparing the district plans in consultation with the BPC and the grama panchayat committees. The DDC was to form three subcommittees: for agriculture, industry, and social welfare, each with twenty members, divided evenly between government and non-

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government persons. A non-official was to be the chairman, and official the convenor. The DDC was to set apart a portion of the district allocation for district level schemes and apportion the rest on a clearly set out formula to the various development blocks. The district level department officers prepared schemes for the district level allocation while the BPCs prepared the schemes for the block level allocation in consultation with the grama panchayats. The subcommittees were to integrate the district and block level proposals into sectoral plans and into a comprehensive plan for the district to be placed before the DDC. The District Collector was in charge of the overall program in each district. The plans approved by the DDCs were to be forwarded to the SPB for inclusion in the state plan.

The proposals from the districts varied in quality. Only a few districts carried out the planning in the manner visualised in the SPB guidelines. To what extent the proposals from below were incorporated into the draft state plan cannot be said with certainty. The integration was probably very limited. In many cases the proposals from below had to be set aside to accommodate alternate proposals from the department heads. In most cases the proposals from below turned out to be mere reformulation of the departmental schemes. The draft 8th plan document identified 24%, Rs 151 crores of the Rs 635 overall plan outlay for 1990-91, as district sector schemes. Another 5.6%, or Rs 36 crores were identified as programs that could be effectively carried out only with the full participation of the grama panchayats. Before implementing these schemes sanction was required from the panchayats concerned. The plan also provided for an untied fund of Rs 18 crores, or 2.35% of the outlay for the grama panchayats. In the absence of elected district councils in 1990-91, the 24% district sector schemes could only have been implemented through the line departments.

A major change came with the formation of district councils in 1991. The 1991-92 annual plan provided for an increased district plan outlay of Rs 250 crores to be implemented by the newly formed district councils. A major break in the planning process in Kerala was expected to follow, but the hopes were dashed with the unexpected defeat of the LDF in the 1991 elections. The new government systematically withdrew all the powers that had been devolved to the district councils so that the district schemes continued as in the past in the hands of the line departments. In the following year, 1992-93, the plan allocation to the

district councils was reduced from Rs 250 crores to 1.97 crores. Thus ended the brief

interlude of decentralisation and local democracy.

15

People's Campaign for Decentralised Planning A new LDF government came to power in 1996. In the context of newly constituted local self-

government institutions following the 73rd and 74th amendments, it decided to pick up the

unfinished task of decentralised planning. One of the first decisions of the new ministry was to

devolve 35-40% of the state's 9th plan outlay for projects and programs drawn up by the local

self-governments. What are the salient features of Kerala's decentralisation program that makes it

unique?

> The unique feature of Kerala's decentralisation is the high autonomy granted to the local bodies to determine their own priorities. During 1997-98 the total resources devolved worked out to be Rs. 1,025 crores, not counting funds from centrally sponsored schemes. 75% of the devolution, that is, Rs 749 crores, was in terms of grant-in-aid and the rest in the form of schemes sponsored by the state government. The latter component was to be further reduced over time. For 1998-99 funds earmarked for local self-governments were raised to Rs 1,178 crores. _The share of grant-in-aid component was raised to 81 per cent (Rs 949 crores). In the rest of India financial devolution mainly takes the form of schemes. The grant-in-aid component was confined to a relatively small amount of so called untied fund.

> Another important feature of the financial devolution adopted in Kerala is the insistence on a comprehensive area plan to be prepared by each local body before they can lay claim to the grant-in-aid. In Kerala itself, during the first year of the new local bodies in 1996- 97, a total of 212 crores of rupees had been provided to them as untied fund "to initiate the preparation and implementation of local level need based plan programs for development." But no local body had prepared any plan. The most common method adopted was merely to divide funds equally between ward members for various works, mostly road, selected by them. An attempt is being made to break with this tradition by insisting on comprehensive area plans. Ine plan outlay is not to be confined to the grant-in-aid amount. The grant-in-aid is to be integrated with the different state and centrally sponsored schemes and own revenue surplus of the local bodies. The grant-in- aid is also to be supplemented with additional resources that the local bodies may mobilise through loans from financial institutions, voluntary labour, donations and other sources. In no state in India are the grass root level local bodies entrusted with the task of preparing such comprehensive area plans.

> The distinctive contribution of the most advanced experiments in West Bengal and Karnataka was to link decentralised planning with local self-government institutions. Even in these experiments, a heavy overhang of the earlier bureaucratic traditions persisted, such as predominance of the so-called district schemes, restriction of non-officials into consultative roles, and focus on the district as the basic planning unit. Kerala is attempting to do away with 'district schemes' themselves. A calculation had shown that the district level schemes during the previous decade in Kerala had ranged between 25-30% of the annual plan outlay. Devolving 35-40% of the plan outlay to the local bodies, predominantly in the form of grant-in-aid, implied that sooner or later the state government would have to confine itself to state level schemes alone.

16

> The planning process is to start from the grassroots with maximum involvement of the masses. It is a genuine bottom-up planning process. Mass participation is not limited to elected representatives or voluntary agencies but includes ordinary people assembling in grama sabhas and nonofficial experts and volunteers participating in the preparation of reports, formulating projects, and drafting the plan. The officials are to work alongside the non-officials.

> The State Government in Kerala has initiated a number of steps for administrative reorganisation and statutory changes in order to institutionalise the process of local level planning and plan implementation. The recommendations of the committee headed by late S.B.Sen regarding necessary changes in the existing laws and statues to ensure maximum autonomy to the local bodies, redeployment of employees and related administrative reorganisation have been accepted by the government. The government has also appointed yet another Administrative Reforms Committee to make recommendations on total over hauling of the state's administrative machinery in the context of decentralisation.

> The institutional changes that we have just discussed as well as other preconditions for successful devolution such as training of personnel and creation of local data base will require a few years to fully materialise and become operational. During the interregnum the local bodies are to be empowered informally to undertake the task of preparing and implementing the plan as per the schedule of the 9th Five Year Plan. For this purpose a Campaign for Decentralised planning was launched. Its objective is to rally behind elected local bodies, the officials, experts, volunteers, and the mass of people, so that the impediments to the local level planning can be overcome. Further, certain attitudinal changes towards the development process, so that it becomes a more participatory, scientific and transparent process, are sought to be brought about. The Campaign is also expected to generate a political will to institutionalise these new values generated by the movement. In short, the pre conditions for successful decentralisation are to be created in the very process of decentralisation.

Chapter Scheme

The present report on 'People's Planning' consists of two parts:

Part I - The Kerala experiment

People's Campaign for Decentralised Planning

Part II - Learning from the Kerala Experience

Selected Tools for Decentralised Planning

Part I provides a brief but comprehensive review of the Kerala experiment in People's Planning.

17

Chapter 2 presents a documentary review of the Decentralised Planning process that extended over a period of one year from August 1997.

Chapter 3 undertakes an analysis of the outcome of the above planning process viz. the annual plan of the local bodies for the year 1997-98.

Chapter 4 makes an evaluation of the implementation of the local plans for 1997-98: the achievements, lapses and problems.

Chapter 5 provides a comparative picture of the planning process and the annual plan for 1998-99 and an assessment of the immediate future.

No attempt is made here to generalise from the Kerala Experiment and elaborate a

methodology for participatory decentralised planning. The Kerala experiment is far from

over and three years is too short a period to pass a verdict. Therefore, all that we are

attempting here is to focus upon certain selected tools for decentralised planning that were used

in the People's Campaign, which may have relevance for other places. It must be cautioned

that our selection is far from complete and does not do justice to the numerous methodological

innovations that were experimented by the Campaign activists. The total number of pages of

printed manuals, monographs and books that have been produced as part of the People's

Campaign for Decentralised Planning in Kerala comes to more than '4000 pages. Two missing

links in the present report may be specifically mentioned: gender analysis in development

planning and preparation of integrated programmes. Also, adequate attention has not been paid

to the style of presentation to facilitate user friendliness and simplicity. We hope to rectify

these weaknesses in style and content of the present report in the forth coming Handbook for

People's Planning.

Part II of the report presents the selections from People's Campaign literature.

Chapter 6 discusses how the grama sabhas can be effectively organised for gathering information required for local level planning and for identifying the felt needs of the people.

Chapter 7 examines the data requirements for local level planning and how secondary sources and rapid appraisal techniques may be adopted to generate such a database.

Chapter 8 describes the structure and contents of the Panchayat Development Report (PDR) that would provide an objective assessment of the local resources and problems and possible courses of action.

18

The above three activities i.e. (a) identifying the felt needs of the people (b) collecting data and undertaking studies to make an objective assessment of resources and problems and (c) preparing PDR constitute important steps in the formulation of a long run perspective for local level development. The formulation of such a strategic development perspective hi a participatory and scientific manner constitutes the first stage of People's Planning. The PDR, which embodies the perspective for development, is to be discussed and adopted at the panchayat level seminar. The PDR would contain large number of proposals for every development sector that may take

many years for implementation. Taking into account the resource constraints the local bodies

have to prioritise and select proposals that may be implemented in the annual plan. Preparation

of the annual plan for implementation by the grassroot level tiers constitutes the second stage

and preparation of the annual plan of the higher tiers constitutes the third stage in People's

Planning.

Chapter 9 presents a general format in which the proposals may be written up into projects.

Chapter 10 presents a format for the annual plan document.

Chapter 11 presents a simple methodology for integrating the analysis and the plan proposals of the lower tiers so that complimentary plan can be prepared by the higher tiers.

The fourth stage of the People's Planning consists of the preparation of the Consolidated

District Plan (CDP), the constitutionally mandated task of the DPCs. The CDP is here

conceived not merely as a consolidated list of-projects of the plans of different tiers of local

bodies, but as a comprehensive development plan for the district as a whole. It should

provide a broad perspective and guidelines for the preparation of the future local plans within the

d1'strict. With the preparation of a district plan the cycle of decentralised planning is complete.

Now the local plans at every level is prepared with simultaneous feed back from both above

and below. In short it would take at least three or four years of experimentation before the

decentralised planning process can stabilise. Expectation is that during 1999-2000 Kerala will

move on to a stage of preparation of district plans.

19

Chapter 2

THE PLANNING PROCESS : PEOPLE'S CAMPAIGN FOR DECENTRALISED PLANNING

The People's Campaign for Decentralised Planning was formally inaugurated on the first day of the Malayalam year, 17th August 1996. The Campaign was organised in a phased manner with clearly defined objectives for each phase. Each of the six phases had a nodal event and involved a separate round of training at state, district and local level. Chart 2.1 provides a graphical presentation of the objectives of different phases and sequence of various events of the Campaign. Extensive environment creation activities were also undertaken. A High Level Guidance Council was formed comprising of eminent personalities in the state. The council was also intended to assure the highest possible degree of consensus around the Campaign. Apart from representatives of all political parties and major mass organisations, the council also included vice-chancellors of universities, heads of centres of excellence and cultural leaders. Shri.E.M.S.Namboodiripad the first Chief Minister of Kerala was the Chairman of the Council.

Chart 2.1

GRAMA SABHA

STUDIES

Objectives of Different Phases and Sequence of Various Events of the Campaign Development Reports . Shelf of

Projects

GP/M Plans

Block/ District Plans

Plan Appraisal

SEMINAR TASK FORCE LOCAL

BODIES LOCAL BODIES TASK FORCE

VTC

Phase II Phase III Phase IV Phase V Phase VI

Subjective Felt

Obbjective Resource Assessme

Obbjective Resource Assessme

Phase I

1

Implimentatio

Phase II

Phase I: Grama Sabha (August-October 1996)

Identification of the felt needs of the people was the first step in the decentralised

planning exercise. It was accomplished by convening the Grama sabhas, ensuring

maximum participation of people, especially, women and other weaker sections of the

society in order to discuss the local development problems. In the urban areas Ward

Conventions were organised for the purpose. In order to ensure maximum participation

the grama sabhas were convened only on holidays. Squads of volunteers visited

households and explained the programme. Preparatory meetings of mass organisation

were held. A vigorous propaganda using posters, advertisements, and involving all

branches of the media was resorted to. It is estimated that nearly 2.5 million persons

participated in these grama sabhas/ward conventions. Of the participants about 27 per

cent were women.

One of the major achievements of the People's Campaign has been in dispelling the general attitude of scepticism towards the grama sabhas. It was generally feared that, given the settlement pattern in Kerala, absence of strong tradition of village assembly and large size of an average Grama sabha in the State, the effective functioning of these bodies as instruments of participatory planning might not be feasible. But the first phase of the Campaign, thanks to careful preparation, mass enthusiasms and organisational innovations, proved in practice the viability of the grama sabhas. The discussions in the grama sabhas were organised in groups of 25-50, one for each development sector in addition to one group for SC/ST development and one for women's development. Given the large size of grama sabhas in the State, the organisation of sector- wise group discussion made it possible for maximum number of people to participate in the deliberations in a meaningful manner. Around one lakh resource persons at the local level were mobilised and given training to act as facilitators in the discussion groups. A semi-structured questionnaire was also distributed to help the flow of discussions.

The major achievements of the special grama sabha meetings were the following: 1 The felt needs, priorities and development perceptions of the people in every

locality were listed.

2 A general awareness was created among various sections of people regarding the decentralisation programme

3 The basic organisational structure of the Campaign was laid.

The review undertaken by the SPB of the special grama sabhas convened in connection with the Plan Campaign also revealed certain weaknesses. The extent of participation varied

2

widely not only between districts but also within districts. In some panchayats like Pathiyoor more than one thousand persons participated in grama sabhas, whereas in the same Alappuzha District there were grama sabhas that barely met the quorum requirement of only 50. The inter panchayat differences cannot be explained in terms of political affiliations of the Panchayat Committees alone. Generally, the participation was found to be negatively correlated to the extent of urbanisation. However, the determining factor seems to have been the commitment and the interest of the elected representatives themselves.

The average participation in the grama sabhas was only 180. Although it was much higher than the legal quorum of 50, the fact remains that the majority of the people did not attend the grama sabhas. Further, women were only around one-quarter of the participants. Also the representation of SC and ST population was not satisfactory. Discussions in many of the grama sabhas were confined to the listing of demands rather than analysing the problems and prioritising the needs.

Phase n : Development Seminars (October -December 1996)

After the identification of the felt needs in the grama sabhas, the next step in the planning

process was to make an objective assessment of the natural and human resources of the

locality. Only by matching the two could a perspective be developed for local level

development that would make optimal use of the resources in tune with the aspirations of

people. The approach to planning had to be such as to secure a judicious blend of local needs

with local resource availability,

A series of participatory studies were undertaken in every grama panchayat and municipality,

most important of which were the following:

(1) Collection of secondary data : No attempt was made to collect primary data because of the time constraint,. Instead, the relevant secondary data available in the various registers and records at the local level offices of different line departments were identified and collected in a common data format drawn up for the whole state.

(2) Study of local geography and natural resources : A rapid appraisal of the natural resources was undertaken using transect walk technique. Eco-zones in every panchayat were identified by first demarcating the area into various zones on the basis of land form and then identifying the soil, water and vegetation characteristic to each zone. An environmental appraisal of each eco-zone was also attempted in many panchayats.

(3) Review of ongoing schemes : Each department was to prepare a sectoral report on the ongoing schemes and make them available to the panchayats and municipalities. However, most departments did not take the task seriously and this was to have serious implications for the spill over projects of the departments in subject areas transferred to the local bodies. Very few of them found place in the plans of the local bodies.

3

(4) Survey of local history: A short local history was prepared by every local body, mostly drawing from oral testimonies and local records. Participatory techniques such as history time line were also encouraged.

(5) Consolidation of grama sabha reports : The reports of grama sabha discussions, including lists of problems identified, were consolidated for each development sector in a panchayat

The outcome of the above exercises was a Development Report, for each panchayat/municipality, with 75 to 100 printed pages. The majority of the reports was of high quality, even in an academic sense, and easily qualified to be the best available bench-mark studies on the development of respective areas. The structure of the reports were more or less uniform with the first part covering a review of the administrative and local history highlighting the role of social movements that affected the village/town during the present century. It brought out the importance of popular heritage and tradition in meeting the contemporary development challenges at the local level. In each report a chapter was devoted also to the analysis of natural and human resources of the locality and there were twelve chapters, covering various development sectors.

The current status of each sector was discussed, its ongoing schemes reviewed and problems identified along with a list of suggested recommendations. Being written up by different sets of people, the quality of chapters even within a report differed. Generally speaking, the chapters on the analysis of agriculture and education sectors proved to be the most comprehensive.

Development seminars were organised in every grama panchayat and municipality to discuss the above reports. It has been estimated that more than three lakh persons, consisting of representatives from grama sabhas, elected representatives, local leaders of political parties, line department officials, local experts, etc., participated in the development seminars. Discussions at the development seminars were also organised in small subject-wise groups, with groups coming up with recommendations as to the projects to be drawn up. A taskforce was elected by the group to prepare the projects. The development seminars proved to be the high water mark of the Campaign.

Output of the second phase included the following:

(1) Generation of an extensive local data base; (2) A comprehensive survey of all development sectors for all panchayats and

municipalities; (3) A list of plausible solutions to the development problems, and, (4) Formation of task forces to prepare development projects for each development

sector.

4

Phase III: Task Forces : (December 1996 -March 1997)

Sector-wise task forces constituted at the grassroot level were supposed to projectise the

recommendations and suggestions, which emerged from the development seminars. On an

average, 12 task forces were constituted in each local body to cover various development

sectors. As many as 12,000 task forces were organised at the village level alone with a total

participation of at least 1.2 lakh persons. The task forces prepared around one lakh projects

for the consideration of the Panchayats.

The task of project preparation demanded participation of more officials and technically qualified people than the earlier phases. Accordingly, special efforts were made to ensure participation of officials and local level experts. While the chairperson of the task force was an elected representative, an officer from the concerned line department was its convenor. A simple and transparent format was proposed for the projects to be prepared by the task forces. In order to ensure uniformity, it was suggested that the project reports should generally have the following components:

Introduction: explaining necessity and relevance of the project. Objectives: in well defined (as far as possible in quantitative/measurable) terms. Beneficiaries; criteria proposed to be followed in selecting beneficiaries or

benefiting areas Activities: technical analysis and time-frame of all project activities. Organisation: agencies and their role in implementing the project activities Financial analysis: investment needed for each activity and identification of source of

funds. Net Benefits: analysis of likely direct and indirect benefits and costs. Monitoring: details of the proposed monitoring mechanism.

A separate set of guidelines for the preparation of SCP and TSP projects was also given. Further, it was recommended that the local bodies earmark minimum 10 per cent of the plan assistance for projects meant for the development of women. Special care was also taken to see that the task forces prepared projects with an integrated approach.

A review by the SPB showed that the task forces did not function as effectively as was

expected. The major weakness was that adequate number of experts could not be attracted to

the taskforces. The participation of officials was also far from satisfactory. The training given

to the taskforce members was also inadequate. The prepared projects revealed several

5

weaknesses, particularly with respect to technical details and financial analysis. Therefore, a number of rectification measures like project clinics, re-orientation conferences etc. were organised. All these created unforeseen delays in the final plan preparation.

Phase IV: Annual Plan Finalisation : March-May 1997

By the end of March, with the presentation of the annual state budget, the plan allocation to each local body was announced. Out of a total state plan outlay of Rs.2855 crores for 1996-97, Rs.1025 crores (nearly 36 per cent) was earmarked for the local bodies.

Table2.1

Distribution of Grant-in-aid to the Local Bodies 1997-98 (Rs in crores)

Local Body No.of local bodies General SCP TSP Total (1) (2) (3) (4) (5) (6)

Grama Panchayats 990 307.02 105.85 7.62 420.S49 Block panchayats 152 65.79 35.28 7.62 108.70 District panchayats 14 65.79 35.28 22.87 123.94 Municipalities 55 49.54 12.15 0.65 62.34 Corporations 3 27.86 5.44 0.24 33.53 Total 1214 516,00 194.00 39.00 749.00

Source: State Budget Papers, Appendix IV, 1997-98

The latter had two components: (1) State Sponsored Schemes of Rs.276 crores i.e., schemes

which are prepared by the departments but implemented through the local bodies and (2)

grant-in-aid of Rs.749 crores. The grant-in-aid had three parts, (1) Rs.39 crores for Tribal Sub

Plan (TSP),(2) Rs.194 crores for Special Component Plan for scheduled castes (SCP) and (3)

Rs.516 crores for the general sector.

Plan funds under each of the above heads were devolved between urban and rural local bodies on the basis of population. As for the rural local bodies, the total general sector allocation was distributed between the grama panchayats, block panchayats and district panchayats in the ratio of 70:15:15. For the special component plan of Rs. 176.41 crores, the share of 20 per cent each was fixed for the higher tiers. With respect to tribal sub plan, given the present social reality in the tribal areas, 60 per cent of the plan fiinds was allocated to the district panchayat. The grama panchayat and the block panchayat received 20 per cent each. Within each tier the allotment was made entirely on the basis of the population of each local body. The principle of taking population as the sole criteria drew widespread criticism on grounds of equity, since some were lagging in development or having to cover larger geographical areas than others. With all its limitations, a major advantage for adopting a transparent objective criteria, such as population, was that the accusation of political manipulation could

6

be totally avoided. Such a controversy would have been extremely destabilising for the fragile unity that had been built up in the Campaign,

The plan allocation for each of the local bodies was separately indicated in the state budget, with broad guidelines regarding sectoral allocations to be made by the local body. While 40-50% of the plan allocation to the rural local bodies was to be invested in the productive sectors and 30-40% in the social sectors, 10-30% of plan allocation might be spent on roads and other public works including energy. Greater emphasis was paid to social sectors in the guidelines for allocation for the urban local bodies: 40-50% was to be earmarked for social sectors including slum improvement and roads and other infrastructure could be allocated upto35 percent.

Table.2.2 Guidelines on Sectoral Allocation

Indicated to the Local Bodies

Rural Local Bodies

Urban Local Bodies

Productive 40-50 20-30 Service 30-40 40-50 Infrastructure 10-30 10-35

Source: State Budget Papers, Appendix IV, 1997-98

Regarding SCP and TSP allocation, it was doubtful if 40-50% of the SCP/TSP allocation could be invested in the productive sectors, given the general economic backwardness and poor asset base of the weaker sections. Therefore, higher outlay was permitted for the social sectors in SCP and TSP. The ceiling of 30% on infrastructure remained unchanged however. All local bodies were also advised to earmark 10% of the plan outlay for programmes targeted to women.

By the time the grant-in-aid for the local bodies was announced, most of them had prepared a

shelf of projects corresponding to the development problems identified by the people. This set

the stage for the fourth phase, wherein the projects prepared by the task forces were

prioritised and incorporated into the plan document of the panchayats and municipalities. The

plan document comprised of eight chapters:

Introduction : a brief description of the development challenges

Development strategy: a statement of inter-sectoral priorities (i.e., sectoral distribution of outlay) and intra-sectoral priorities (i.e., sub-sectoral policies)

Resource mobilisation : an estimate of additional local resource mobilisation from the following sources : own funds, State Sponsored Schemes, Centrally Sponsored

7

Schemes, co-operatives, other financial institutions, voluntary contribution, beneficiary contribution and others.

Sectoral programmes : a listing of projects by sectors and sub-sectors.

Integrated development: a discussion of possibilities of backward and forward linkage of projects and integration of related sectors.

Welfare of scheduled castes and scheduled tribes : a discussion on how the guidelines for SCP/TSP has been complied with,

Women's development programmes: a discussion of the gender impact of the plan and listing of projects included in the women component plan.

Monitoring: a discussion of the monitoring system.

The delays and problems in project preparation had an adverse impact upon plan finalisation, so the drawing up of the plan document proved to be more difficult than was expected. One possible reason for this situation was that the training programme for the fourth phase focussed on the elected representatives and in many areas adequate voluntary help failed to come forth.

Phase V: Annual Plan of Higher Tiers : (April-September 1997)

Block and District panchayats were supposed to start preparation of their annual plans only

after grama panchayats had drafted their plans. The sequential ordering of the processes was

made in order to ensure that the plans of the various tiers were integrated and the plans of the

higher tiers did not duplicate, but complement those of the lower tiers. A simple method of

integrating the analysis and programmes of the grama panchayats at block and district level

was also proposed.

Every block panchayat was to prepare a printed Development Report in which the problems identified in the Development Reports of the grama panchayats in the block area and the type of projects included in their plan were integrated for each sector. In each sector all the major development problems identified were listed in rows and in each column under the relevant grama panchayat the rank order of the problem marked according to its relative gravity. Similarly, a matrix of relative importance of different types of projects for each grama panchayat was prepared. These matrices gave at one glance the problems and solutions identified by the grama panchayats. The block panchayats were to take up projects to fill up the gaps or for complementing the activities of the lower tier.

Emphasis was laid on the importance of integrating the different centrally sponsored poverty

alleviation programmes being implemented through the community development blocks with

8

the block panchayat plans. There was strong resistance to this move from both the beauracracy and elected representatives. Partly this was due to genuine problems arising from existence of separate guidelines for the centrally sponsored programmes, but mainly this was due to the fear that their decision'making powers would be curtailed and encroached upon. '

Each district panchayat which also to prepare a development report integrating the analysis and programmes of the lower tiers. The guidelines for the preparation of the projects aiid the plan documents for both the block and district panchayats were similar to those of the grama panchayats. Block panchayats and district panchayats also organised seminars to discuss their draft plans.

Because of the delay in the preparation of the grama panchayat plans, the integration of the

plans of the different tiers could not be effectively undertaken. As a result, there were many

instances of duplication of planned activities and also critical gaps between the various tiers.

Phase VI: Plan Appraisal: May - September 1997

A sample review of the projects prepared by the local bodies revealed that a significant proportion of them had to be modified to ensure their technical soundness and viability before they were approved for implementation. Realising that the DPCs did not have the technical manpower or infrastructure to undertake a proper scrutiny of the projects, a major improvisation in the original programme of the Campaign was called for. Therefore, a new (sixth) phase was added for the technical and financial appraisal of the projects and plans.

More than one lakh projects had to be evaluated. The evaluation was not for selection or rejection of the projects, but to actually rectify the technical and financial weaknesses of the project proposals. Technical specifications and even designs might have to be prepared. Further, the entire work had to be undertaken within a span of three to four months. It was evident that the official machinery would not be able to cope with the task.

This was how the concept of Voluntary Technical Corps (VTC) emerged. Retired technical experts and professionals were encouraged to enroll themselves as volunteers to appraise the projects and plans of the local bodies. A professional / postgraduate degree or officer level experience in a development sector was specified as the minimum qualification for membership in the VTC. Such a volunteer expert was committed to spending at least one day a week giving technical assistance to the panchayats. District level conventions were arranged for the experts who formally oftered to join the VTC. Special orientation courses were organised for those volunteers who expressed their willingness to serve in the VTC after the conventions. More than 4000 technical experts were enrolled in the VTC.

9

Expert Committees were formed at block (BLEC), municipal (MLEC) and corporation (CLEC) levels drawing from the VTC members and certain categories of mandatory officers. Each expert committee had a non-official as its chairperson and the block panchayat secretary or officer from the Town Planning Department as convenor. The expert committees functioned through subject committees with membership confined to those who have expertise in the particular field. A non-official expert was the chairperson and a senior officer of the related department the convenor of the subject committee.

The expert committees were, on the one hand, an advisory arm of the DPC helping the latter to appraise the plans and projects and on the other hand a body to render technical assistance to the local bodies. The expert committees had no right whatsoever to change the priorities set by the local bodies. Their tasks were clearly confined to technical and financial appraisal of the projects and providing suggestions for modifications so that they may be made viable and feasible. The DPC approved the plans after considering the recommendations of the expert committees.

In course of time, the expert committees were also given the power of approval of technical sanctions and tender excesses within certain limits. They were also given a role in plan implementation such as approval of revised estimates, settling disputes in measurement, inspection of all works and verification and approval of performance/completion reports of works within certain financial limits.

The District Level Expert Committee (DLEC) consisted of the senior most officials and non official expert with Collector as chairperson. It is an advisory body to the DPC in appraising projects and plan documents of block and district panchayats, disputes within the lower level expert committees and formulation of district plans. It also enjoys a wide range of powers in approval of technical sanction, tenders excesses, revised estimates, disputes in measurements etc. Just as block/municipal expert committee, the DLEC also worked through subject committees.

Training / Empowerment Programme

The experience of the People's Campaign has underlined the vital importance of detailed preparation and training in ensuring the success of local level planning. Seven rounds of training at the state level, four rounds at the district and block level and two rounds of training at panchayat and municipality level had to be organised. There would hardly be any parallel for the training/empowerment programme of the People's Campaign in terms of the scale of participation as well as the diversity of topics covered within such a short period.

10

The number and composition of the participants in the training programme varied from one

round to another. The participants in the training programme may be divided into four broad

groups: the elected members, officials, resource persons and non-official experts. There were

14173 elected representatives in the different tiers of local bodies taken together nearly three-

fourths of them being elected for the first time. Employees directly under the local bodies

numbered around 20,000. Besides, there were 40,000 employees who were being transferred

to the local bodies, but for practical purpose they continued to be under the administrative

control and direction of the line departments. There was an urgent need for reorienting these

officials on how to function within a decentralised democratic set up and shoulder local level

planning responsibilities instead of merely carrying out instructions from above.

Table 2.3

Course Content of Different Rounds of Training

MODULES I

II III IV V VI VII

Challenge of development • O O * * O * Decentralisation philo • O O * * O * Rules and Statutes • O * • * • Grama sabhas • PRA techniques * • Secondary data O • Development Report O • Projects * • • * * O

Plan document • • * O

Appraisal * O • Sectoral development perspectives

O • • O

Implementation O • Micro dev .models • Integration * * * • ' SC/ST, Gender O O O * * O O

• Sub theme * Minor theme 0 Main theme

The resource persons were to be the basic support structure for the local bodies in the planning exercise. Originally, their strength was envisaged at only around 250 to 300 Key

11

Resource Persons and 5-6000 District Resource Persons and around 50000 Local Resource Persons. But such was the demand from below to participate in the training programme that a much larger number had to be accommodate in the very first round of training. Still, there was criticism that the local bodies selected the resource persons in partisan manner and some sections, were being left out. Partly in response to the criticism, the number of resource persons at all levels was increased in the second round. The participants in the second round at various levels were formally raised to 660 KRPs, 11808 DRPs and 1,00,000 LRPs. But for a small proportion of the KRPs, the local bodies nominated the rest of the resource persons themselves.

The theme and content of each round of training programme corresponded to the objectives of

each phase, focussing upon the immediate task to be undertaken namely, the organisation of

grama sabhas (round I), preparation of the development reports and the attendant studies

(round II), drawing up of projects (round III), drafting of the plan document (round IV),

integration of local plans and drafting of plans of the higher tiers (round V), plan and project

appraisal (round VI) and implementation rules and procedures (round Vll). (See Table 2.3). In

addition, every round of training started with a discussion of philosophy of decentralisation in

general, and participatory planning in particular. Attention was also regularly drawn to

aspects of the development crisis in Kerala. The discussion of rules and statutes were taken up

in the first and subsequent rounds. Sectoral development perspectives were given special

attention in the second and third rounds. Problems of SC/ST development and gender concern

were another constant theme in every round.

The emphasis in the programme was on self-study by the participants. A basic handbook was

prepared for every round with the help of experts and officials. Besides, as part of the second

and third rounds, twelve simple monographs on sectoral development perspectives were also

prepared. A comprehensive list and description of all the ongoing development programmes

in the state that may be of relevance to decentralised planning was also printed and

distributed. Nearly 3000 pages of printed training material and more than 12 hours of video

programmes were prepared as part of the training programme. While the main mode of

presentation, it must be admitted, were lectures, followed by brief clarificatory discussion

sessions. Group exercises and discussions were regularly held. The presentation on Rules

and Statutes was in the form of panel discussion led by members of Committee on

Decentralisation of Powers (Sen Committee). Case study presentations and experience

sharing by the participants were also methods employed. The KRP training was generally

more participatory in nature and all handbooks were revised and finalised in these state level

camps.

12

Table 2.4 Participants in Training/Empowerment Programme

Round State . District Block Pan/Mun I KRP DRP - LRP II KRP DRP - LRP III FACULTY - KRP

OFFICIALS

DRP TASK FORCE ELECTED

IV ELECTED REP. KRP

~ ~ "

V ELECTED REP. KRP

~ ~ ~

VI FACULTY VTC VTC . VII ELECTED REP.

OFFICIALS KRP,DRP,

VTC, MEMBERS, OFFICIAL

Table 2.5Distribution of Participants in Different Rounds of training During 1997-98

Round ] State District Block Pan/Muni I 375 (5) 11716(3) 100000(1)

n 660 (3) 11808(2) 100000 (1)

m 300 (4) 1146(3) 1500000(2) IV 3014(3) 10000 (2) V 1186(3)

304 (2) VI 150(2) 6000 (2) 6000(1)

300 (3) 6000(1) VII 2890 (2) 25000 (2)

3360 (2) number in paranthesis represents no of days * do not include one day conferences like 3 state level conferences of presidents and chairpersons, numerous regional conferences ofKRPs, VTCs, DLEC members, Block panchay at Secretaries and District Conferences ofDRPs etc.

During the first three rounds, a three tier programme of state, district, and blocks/local level training covering more than one lakh resource persons was undertaken. KRPs constituted the faculty for district level training and DRPs the faculty for the local level training. There was

13

only state level training during the fifth round (See Table 2.4). The composition of the participants in the training programme changed from phase to phase, depending upon the tasks. Initially, the focus was on the resource persons and the elected representatives. In the fourth and fifth phase, the focus was entirely on the elected representatives. In the sixth phase, the focus was on officials and experts. In the following round of the training programme, where issues regarding plan implementation were taken up, the officials comprised the majority of the participants. Table 2.5 gives the distribution of participants at different levels in each of the seven rounds of training. The success of the Campaign, no doubt, depended to a large extent on the effectiveness of the training programme. Whatever be the weaknesses and problems of the training programme it is an undeniable fact that annual local plans did emerge from below. Though with certain amount of delay, every local body prepared its plan in a participatory and transparent manner.

14

Chapter 3

ANNUAL PLAN OF THE LOCAL BODIES, 1997-98

Having gone through the various phases of the planning process, we shall now review the

outcome: the annual plans of the local bodies for the year 1997-98. Even though, attempts at a

systematic and critical review of the local plans were initiated soon after the finalisation of the

plans, the process could not be completed during the same financial year. It points to an

important weakness of decentralised planning in Kerala at present. The networks to gather

and disseminate necessary information—particularly quantitative data—are extremely weak.

Only by March 1998 could the inconsistencies in the Statistical Annexure be sorted out and

the database of the annual plans for 1997-98 finalised. The problems of acquiring and

verifying necessary data underlines the importance of creating a computerised panchayat

information system.

Financing the Plan A major advantage of local participatory planning is the possibility of tapping additional local

resources. To what extent have the local plans for 1997-98 mobilised additional resources?

Table 3.1 gives the percentage distribution of the total outlay of the different local bodies

according to their sources of finance. The most remarkable feature of the first annual plan of

the local bodies is the attempt they made to mobilise additional local resources. The total

grant-in-aid to the local bodies as per their plan accounts was Rs. 7.55 crores. The local

bodies, however, achieved a total outlay of Rs.17.35 crores This was made possible by (1)

integrating state and centrally sponsored schemes into the local plans, (2) drawing upon the

non-plan surplus from locally available funds of the grama panchayats and (3) mobilising

additional local resources from financial institutions, voluntary labour and material

contributions from the public and project beneficiaries.

Overall, state grant-in-aid constituted only 43.54 % of the plan outlay. The data indicate that the ratio was lowest in the municipal corporations (34.80%) and highest in the district panchayats at 68.64% (Table 3.2). The effort of municipal corporations in tapping credit from financial institutions has been the biggest factor responsible for the low share of state grant-in-aid in their plans. In the block panchayats,. the main contribution comes from the centrally sponsored schemes that have been integrated into the plan. The share of state grant-in-aid for the district panchayats is higher primarily because they have virtually no internal resources and they generated fewer resources

1

from beneficiaries. With respect to voluntary contributions, we see that the grass-roots level local bodies have been able to tap larger resources through voluntary labour and donations than have the higher level bodies. The same pattern applies for the contribution from the beneficiaries.

Table 3.1 Financing Pattern of the Annual Plans of the Local Bodies

(Data of 1214 local bodies) (Rs in crores) No. of

projects State assistance

Internal funds State

sponsored Centrally sponsored

Loan Tram co-op. Inst.

Loan from fin. inst.

Voluntary contribu-

tion Beneficiary

contribu-tlon Others Total

General 52946 526.52 93.44 57.83 110.64 23.74 169.93 60.50 316.92 47.85 1407.37 % 37.41 6.64 4.11 7.86 1.69 12.07 4.30 22.52 3.40 100.00

SCP 12538 190.45 7.41 12.54 6.68 3.38 12.80 6.48 37.20 4.60 281.54 % 67.65 2.63 4.45 2.37 1.20 4.54 2.30 13.21 1.64 100.00

TSP 2303 38.53 0.55 0.83 1.00 0.16 0.82 0.74 3.12 0.64 46.38 % 83.08 1.18 1.79 2.15 0.33 1.76 1.61 6.73 1.37 100.00

Total 67787 755.51 101.39 71.20 118.31 27.27 183.55 67.72 357.24 53.09 1735.28 % 43.54 5.84 4.10 6.82 1.57 10.58 3.90 20.59 3.06 100.00

Women 4412 32.21 2.15 2.79 2.87 3.44 18.25 2.17 32.46 2.95 99.29 % 32.44 2.16 2.81 2.89 3.47 18.38 2.19 32.69 2.97 100.00

Source: Consolidated from Appendix forms of local bodies, 1997-98

The data shows that the dependence on grant in aid is highest in the infra-structural sector and

lowest in the productive sector. A major contribution to this pattern is the share of beneficiary

contribution in the outlay, which is highest in the productive sector and lowest in the infra-

structural sectors. Expectations of resource mobilisation from financial institutions are higher

in the productive sectors. As a result, the grant-in-aid component constituted only 33% in the

productive sector while coming to 61% in the infra-structural sectors. There is a clear

preference for investing own funds in the infrastructure. While it contributes only 1.7% of the

productive sector outlay, it accounts for 16% of infrastructure.

A brief clarification with regards to the term additional resource mobilisation' used here is necessary. The term is used in a wider connotation than in the conventional usage in vogue with respect to State and Central plan finance. Even if the conventional narrow definition is adopted excluding beneficiary contribution and institutional finance made available to the beneficiaries, the additional resource mobilisation proposed by the local bodies was remarkable. The non-plan surplus from own funds, voluntary labour and donations alone together came to 9.74 percent of the proposed total outlay or around a quarter of the grant-in-aid given by the State Government. It is indeed a significant pointer to the untapped potential of local resource mobilisation.

2

Table 3.2

Pattern Of Plan Finance By Type Of Local Bodies

(Data of 1,212 Local Bodies) Local Body/Tier

State Assist-ance

Internal Funds

State Spon-sored

Centrally Sponsored

Loan from Co-op Insti-tution

Loan from first last. Voluntary

Contribution Bene-Ficiary Contribu-tion Others Total

Outlay

Grama Panchayat 42.71 6.36 3.24 2.39 1.99 8.87 4.35 27.39 2.69 100 Block Panchayat 36.67 0.24 5.19 28.70 1.02 14.74 2.06 9.93 1.45 100 DistrictPanchayat 68.64 •0.19 6.67 1.84 0.91 3.44 2.60 8.02 7.6 100 Municipal! lies 38.33 16.29 3.26 3.29 1.00 1455 5.35 15.19 2.73 100 Corporation 34.80 10.23 6.32 1.03 1.15 21.98 4.83 16.07 3.59 100 TOTAL 43.54 5.84 4.10 6.82 1.57 10.58 3.90 20.59 3.06 100

Source: Consolidated from Appendix forms of local bodies, 1997-98

Having noted the basic positive features of the attempts at local resource mobilisation, the

following critical comments on the financing of the First Year's Annual Plan are made.

1. The expected contribution from the State sponsored and Centrally sponsored schemes

to the plans was 4.10 and 6.82 percent respectively. There was an obvious underestimation of

these sources of plan finance. The amount set apart from the State sponsored schemes in the

State Budget for 1997-98 was around Rs.250 crores as against grant-in-aid of Rs.749 crores.

Obviously the share of State sponsored schemes could have been much higher than was

shown in the local body plans. This reflected lack of clarity regarding the share of the

sponsored schemes that a local body could have expected from such schemes.

2. The share of own funds in total outlay was around 5.84 per cent. There was little

synchronisation of the normal budgeting process of the local bodies and the preparation of

their annual plans. As a result, a significant portion of new developmental work initiated at

the local level continued to be implemented without integrating them with the local plan. This

meant multiple systems of implementation, which tended to undermine the transparent and

participatory system, sought to be ushered in by the People's Campaign.

3. The contribution by financial institutions leaves considerable scope for improvement in

the coming years. It is of utmost importance that the credit plans of the banks are integrated

into the plans of the local bodies, an objective, which can be realistically achieved if the bank

personnel are also directly involved in the planning process. So far, the bank managements

have taken a negative attitude towards the People's Planning process. It is also a matter of

concern that the expected contribution of the co-operative sector was only a fifth of the share

3

expected of the commercial banks. The co-operative credit system, it is pertinent to note here, plays a much larger role than the commercial banks in financing the agricultural and small-scale production sectors in the state. There was not sufficient conscious effort during the Campaign's first year to co-ordinate the co-operative movement and the local planning process.

4. The share of beneficiary contribution in total outlay is as high as 20.59 per cent. This

could possibly entail an element of exaggeration, resorted either to camouflage the rate of

subsidy or to artificially inflate the plan outlay. In fact, only complementary additional

investment undertaken by the beneficiary must be included under the source. The plan

appraisal revealed many cases of deviation from the norms laid. Only indepth field studies

will reveal the extent of over statement involved in this regard.

Sectoral Investment Pattern

So far we have been discussing the patterns for financing the local plans. Now we shall

examine the ends to which these funds were put. What were the local priorities? How are they

different from the priorities in the overall state plan? How do they differ from the centrally

planned district schemes? Do priorities vary across regions? These are some of the questions

we shall briefly go into in this section. Table 3.3 gives the sectoral distribution of grant-in-aid

and total outlay of the annual plans of the local bodies.

It is seen that the allocation for the productive sector from the overall grant-in-aid was 34.08

per cent and 23.12 per cent for the infra-structural sector. The service sector has the biggest

share of 42.80 per cent.' If we take the grant-in-aid for general sector alone, share of

productive sector rises to 40.46 and the service sector declines to 35.89 per cent. The share of

infrastructure sector remains more or less same at 23.65 per cent. It is obvious that in SCP and

TSP service sector receives much higher weightage than in the general grant-in-aid.

In the productive sector, crop husbandry has the highest share of both grant-in-aid as well as

total outlay. Among the crops, emphasis was placed however on garden crops rather than

paddy. Paddy cultivation projects generally emphasised group farming. A major weakness of

the project was the tendency to subsidise inputs, in some cases providing money subsidy on

the basis of acreage. Therefore, it might turn out to be a blessing in disguise that a higher

direct allocation was not given to paddy and that the local bodies chose to emphasise minor

irrigation and water conservation projects to promote paddy cultivation. In the garden crops

the most prominent was vegetable cultivation. There was hardly a panchayat that did not have

a vegetable cultivation project.

4

The allocation for animal husbandry projects nearly equal that to crop husbandry. Though there were notable exceptions, most of the animal husbandry projects involved only distribution of milch animals and poultry. Most of the fishery projects focussed on welfare of the fishing people than on fish culture. These welfare schemes were classified along with similar projects in the service sector and this accounts for the surprisingly low share of the allocation for fisheries.

Industry appears to be neglected with the share of industrial sub-sectors taken together adding

only to 4.57 per cent. The inherent difficulties including non-availability of expertise at the

local level in formulating viable industrial projects seem to have been the major factor

responsible for the relative neglect of this vital sector.

In the service sector, housing is the leading sub-sector with 14.53 per cent of the grant-in-aid earmarked for housing projects. The projects in this sub-sector include, apart from new housing programmes, projects for repair and improvement of existing houses and distribution of housing plots for the weaker sections. The share of drinking water projects came second in rank in the service sector, with 7.7 5 per cent of the grant-in-aid. The total outlay for this vital sector was around Rs.90 crores. Incidentally, as the Development Reports brought out, housing and drinking water were two important areas where the people wanted the local bodies to intervene.

The allocation for public health was only 2.93 per cent. However it is remarkable that substantial provision was made for health related sectors such as sanitation, nutrition, drinking water and so on. If these are taken together, as much as 12.34 per cent of the allocation was for health and health related sectors. Around 4.38 per cent of the grant-in-aid was set apart for education. More than 80 per cent of the allocation of the infrastructure sector was made for roads and bridges. Allocation to this sector worked out to only 19.46 per cent of the grant-in-aid though the local bodies could, following the guidelines, have set apart as much as 30 per cent of the grant-in-aid for this purpose. The projects in the energy sector were mostly for rural electrification. Adequate consideration was not given to the non-conventional energy projects which is perhaps a reflection of the need for further awareness of the potential in non-conventional energy.

Table 3.4 compares the distribution of sectoral outlays of different types of local bodies. The most significant point that emerges from the comparison is the contrast between the plans of the rural and urban bodies. We see that the share of agriculture in the urban local bodies is lower than for the rural local bodies.

5

Table 3..3 Distribution of State Assistance & Total Outlay of the Annual Plans

(Data of 1214 local bodies) (Rs in crores)

Code

Items No. of project

State assistan

% to total state assistancTotal Outlay

% to total outlay

1.1 Paddy 1236 18.81 2.49 70.67 4.07 1.2 Other -Tops 5563 48.92 6.48 185.3 10.68 1.4 Animal husbandry & 6903 56.36 7.46 170.7 9.84 1.6 Fisheries 917 7.% l.OS 27.01 1.56 1.7 Forestry 89 0.25 0.03 0.55 0.03 1.8 Other Agricultural 1374 10.84 1.44 22.18 1.28 1.9 Co-operation 461 4.31 0.57 26.17 1.51 S.I Small-scale Industries 1129 11.65 1.54 37.35 2.15 5.2 Handicrafts 114 1.48 0.20 6.20 0.36 5.3 Handbom 66 0.71 0.09 3.59 0.21 5.4 Coir 117 1.59 0.21 4.34 0.25 5.5 Khadi 74 0.62 0.08 143 O.OB 5.6 Sericulture 23 0.06 0.01 1.28 0.07 5.7 Others 1013 18.46 2.44 45.15 2.60 3.1 Minor Irrigation 4996 69.91 9.2S 113.0 6.52 3.2 Flood control 389 5.54 0.73 13.91 0.80 10.1 Housing Services 439 8.65 1.14 24.87 1.43 10.2 Other General Services 824 6.70 0.89 17.27 0.99 7 Environment 23 0.24 0.03 0.56 0.03 8.1 Tourism 43 0.84 0.11 1.18 0.07

Code

Items No. of projects

State assistan

% to total state assistance Total Outlay

% to total outlay

6.2 Public distribution 23 0.26 0.03 1.01 0.06 83 other Puttie distribution 2J 0,07 0.01 1.11 0.06 9.1 Primary Education 3676 19.86 2.63 35.47 2.04 9.2 High school 822 11.83 1.57 18.08 1.04 9.3 Technical Education 140 136 0.18 1.99 0.11 9.4 Youth services 114 0.52 0.07 2.04 0.12 9.5 ArtS Culture 189S 11.86 1.57 21,81 1.26 9.6 Public Health 2283 22.15 2.93 40.83 2.35 9.7 Drinking water 496S 58.56 7.75 91.45 5.27 9.7 Sanitation 2114 34.11 452 80.18 4.62 9.6 Housing 3473 109.80 14.53 199.8 11.52 9,9 Town Planning 93 5.13 0.68 13.61 0.78 9.1 Employment & Labour 53Z 6.18 0.82 11.12 0.64 9.1 Women ft Children 1786 12.10 1.60 25.41 1.46 9.1 Nutrition 97 0.50 0.07 0.92 0.05 9.1 Social Welfare 1166 8.44 1.12 13.76 0.79 2.1 Integrated Rural 181 0.66 0.09 39.95 2.30 2.2 Training of rural youth for 206 0.81 0.11 2.89 0.17 2.3 Development of women & children hi rural areas 250 0.86 0.11 8.12 0.47

2.4 Supply Of tool kits to 106 0.30 0.04 0.93 0.05

6

2.5 Barren Land Development 6 0.01 0.00 0.04 0.00 2.6 Jawartar Rozgar Yojana 265 0.07 0.01 7.06 0.41 2.7 Employment Assurance Scheme 1030 .22 0.03 39.64 2.28 2.8 Other empfo/ment development 115 0.08 1.83 0.11 2.9 Social development programme 85 2.1 Million Well Scheme 94 2.1 Others 82 4.1 Power production 11 4.2 Power Distribution 2785 4.3 Devetopment of non-

conventional energy336

1,4 Integrated rural energy 616 6.1 Roads,Bridges 12421 6.2 Inland water transport 39 6.3 Other modes of transport 155 6.4 Bus Sand, Waiting Shed 5 Grand Total 67787

Source: Consolidated from Appendix forms of

Paddy has virtually no place in the plans of the corporation agricultural sector projects are concentraconcentrated in the coastal belt, which is reflected in thproductive sector investments of the urban bodies go projects are the main soil and water conservation proaccount for more than twice the overall share of the plbodies. A close examination of the data by ecologsignificant differences in the investment pattern underthe local conditions.

The comparison of the investment pattern of differen

tiers give greater weightage to industrial programmes

relatively lower. But for this, the pattern remains br

first annual plan was lack of co-ordination and int

resulting in instances of duplication and critical gaps.

agricultural and animal husbandry projects. It m

consideration was not given to the forward and ba

projects.

7

0

0.49 0.07 3.62 0.21 0.07 0.01 4.58 0.26 0.09 0.01 6.90 0.40 0,70 0.09 8.20 0.47 17.54 2.32 28.90 1.67 2.61 0.35 6.9S 0,40

2.04 0.27 8.38 0.48 149.42 19.78 230.0 13.26 1.10 0.14 1.32 0.08 1.19 0.16 2.98 0.17 0.10 0.01 1.37 0.08 755.5 100 173S.

3100

local bodies, 1997-98.

three urban corporations. The municipal ted in animal husbandry. Most towns are e high share of fishing sector projects. The

mostly to industrial projects. Flood control jects in the urban areas. Sanitation projects an outlay of the urban versus the rural local ical regions or by districts also reveals

lining the sensitiveness of local planners to

t rural local bodies reveals that the higher

. Their share of investment in agriculture is

oadly the same. A serious limitation of the

egration of the plans of the different tiers

This has been particularly so in the case of

ay also be pointed out that sufficient

ckward linkages in the preparation of the

Comparison of annual plan of the local bodies and that of the state government presents a sharp

contrast in the state plan. Power with 33.32 per cent, large and medium industries with 10.65 per

cent and that of medium and large irrigation with 11,8 per cent of the outlay arc the leading

sectors. These sectors are virtually absent in the local level plans. As against 4.5 per cent share

for agriculture in the state plan, local bodies provided 10.4 per cent for the agriculture sector. In

animal husbandry, drinking water and sanitation, housing and roads and bridges the local bodies

have provided much higher share of the outlay than in the state plan. In short a functional

division is slowly emerging between state and local plans.

Table 3.4 Sectoral Distribution of Grant-in-Aid of the Annual Plans of Different Types of Local

Bodies, 1997-98

8

Rural local bodies itrnan local flnatff SL no Items Gram a pouch ayis

Block punch avals

Distri a Pane hayat s

Muni cipalit te

Corpa ration Total

1 Agriculture 12.5 4.3 4.39 5.53 2.37 8.96 2 Animal husbandary & dairy

9.25 5.98 4.80 5.39 3.48 7.46

3 Fisheries 0.96 0.99 1.14 1.19 1.84 1.05 4 Forestry 0.04 0.02 0.02 0.03 0.00 0.03 5 Olficr agricultural development

1.34 1.97 2.04 0.70 0.03 1.44

6 Co-operation 0 29 0 49 1 34 0 59 1 52 0 577 Small-scale 1 41 0 98 2 02 3 21 0 08 1-54e Traditional 0 39 0 44 1 25 1 19 0 00 0 599 Others 1 56 5 8 1 99 1 79 5 67 2 4410 Soil & conservation, irrigation d fl d

10.14

11.19

12.48 4.06 6.25 9.99

11 Housing services 1 00 1 45 0 90 2 64 0 10 1 1412 Other general 0 86 060 0 53 2 67 0 03 0 8913 Environment 0 01 0 01 0 10 0 08 0 01 0-0314 Tourism 0 03 0 06 0 27 0 51 0 00 0 1115 Public distribution 0 03 0 04 0 09 0 09 0 00 0 0416 Primary education 2 86 2 61 2 18 2 22 2 23 2 6317 High school 0 24 0 92 6 06 2 11 2 67 1 5716 Technical education 0 12 0 05 0 55 0 10 0 07 0 1819 Youth

services, art & l1.54 1.58 0.91 2.11 4.72 1.64

20 Public health 2 26 4 79 1 40 5 71 5 83 2 9321 Drinking water 8 26 6 02 8 32 5 86 8 40 7 7522 Sanition 4 74 2 71 2 36 6 97 10 78 4 5223 Housing 13 35 20 98 14 40 14 21 9 91 14 5324 Town planning 0 00 0 00 0 00 4 87 5 99 0 6825 Employment & labour lf

0.39 2.05 1.21 0.68 1.05 0.82 26 Women A child 1 47 1 41 1 06 1 97 5 15 1 6027 Nutrition ' ' 0 10 0 00 0 04 0 04 0 04 0 0728 Social Welfare 1 08 0 96 ! 40 151 0 36 1 1229 Rural development 0 63 0 69 0 13 0 96 0 09 0 5630 Power production 0 00 0 00 0 55 0 02 0 00 0 0931 Power distribution 2 80 1 17 0 84 2 88 4 41 2 3232 Development of non-ti l

0.20 0.36 0.70 0.38 0.74 0.35 33 Integrated rural energy d l t

0.33 0.27 0.04 0.33 0.32 0.27 34 Roods & Bridges 19 58 18 89 23 90 16 62 15 86 19 7835 Inland \vaier 0 07 0 10 0 55 0 00 0 00 0 1436 Other modes of 0 17 0 08 0 04 0 68 0 00 0 17

Tatai 100 100 100Source: Consolidated from Appendix forms, 1997-98.

Our examination also revealed that local priorities as reflected in the annual plan of the local

bodies is significantly different from the priorities of the so called district schemes that used to be

formulated as part of the state-level plans in previous years. District plans consist of state-wide

schemes the implementation of which takes place at the district level. Nearly 20% of the so-called

"district plans" are industrial schemes, most of which are not suitable for local-level planning

such as subsidies to sick public sector units situated in the districts and promotional schemes for

industrial co-operatives.

The industrial sector share in the actual local plans for 1997-98 is less than 5%. One of the most

dramatic differences is in housing which takes up 4.37% in the district plans and 14.53% (Table

3.4) in the local body plans. The local bodies are also paying greater attention to drinking water

and sanitation. Roads and bridges rose from 13.28% in the district plans to 19.78% in the local

plans. The priorities of the local communities are apparently very different from what the state

level planners had considered to be the local priorities.

Special Component Plan & Tribal Sub Plan A remarkable feature of the Special Component Plan and Tribal Sub Plan for 1997-98 is that as

much as 67 per cent of these plans stand devolved to the local bodies. Apart from this, a large

number of schemes have also been devolved to the local bodies. A detailed review organised by

the Minister for Scheduled Caste and Scheduled Tribe development, brought to light certain

remarkable features of these particular plans prepared by the local bodies.

The first point to be noted is the abolition of the notional flow system and pooling funds for

SCP/TSP, in proportion to the population share of the weaker sections before the departmental

provisions are made. This procedure resulted in a significant step up of the real funds available to

the Special Component Plan and Tribal Sub Plan.

Fears of local bodies illegally diverting Special Component Plan and Tribal Sub Plan grant-in-aid

for general sector projects have been found to be baseless. Instead, it was seen that many of the

local bodies made provisions from their own ftmds for SCP and TSP. The plan grant-in-aid for

SCP of all the local bodies was only Rs.193.98 crores and the grant-in-aid component of their

SCP projects fell short of it marginally by around 3 crores. Similarly, the grant-in-aid for TSP of

these panchayats was Rs.38.98 crores. The grant-in-aid provision in the TSP projects prepared by

them totalled only Rs.38.50 crores. On detailed examination it was realised that the marginal

9

short fall was largely due to mis-classification of the projects. Some of the SCP/TSP provisions

such as for housing were made as separate components of the general sector projects. As such

they were not separately entered in the statistical annexes of the plan document. Stringent

measures have been taken to ensure that deviations are rectified. Any shortfall in the SCP/TSP

provision is to be compensated by additional provision from the general sector grant-in-aid for

1998-99. Even the above marginal shortfall in the provision of the grant-in-aid component of the

SCP and TSP was more than made good by additional funds provided by the local bodies from

their own revenue. As is seen from Table 3.1, the local bodies provided Rs.7.41 crores towards

SCP and Rs.0.55 crores towards TSP from the own revenue.

Additional local resources have been mobilised for SCP/TSP projects also. The financing pattern

of the SCP/TSP projects is significantly different from the general sector projects. Given the low

asset and income base of these weaker sections, it was only right that the local bodies provided

much higher share of the grant-in-aid in the formulation of SCP/TSP projects.

There is also significant difference in the sectoral priorities of SCP/TSP from the general sector plan. As we have seen above much higher weightage is given for the service sector. 31.16 per cent of the SCP and 30.85 per cent of the TSP have been set apart for housing. Next in importance comes drinking water claiming 8.98 per cent of the SCP and 7.23 per cent from the TSP. In the productive sector animal husbandry programmes are given much higher priority than crop husbandry.

A general fear that has often been expressed in public forums is the danger of diversion of

SCP/TSP funds for infrastructural projects of common benefit to all. The data show that only 20

to 21 per cent of the grant-in-aid was set apart for the infrastructure sector in SCP and TSP.

The democratic decentralisation of SCP/TSP creates opportunity for the weaker sections to directly participate in planning for their own well being. If these opportunities are properly utilised this could very well be a turning point to the development of the weaker sections in our state.

Women Component Plan Gender issues have been given special emphasis in the campaign. Firstly, special instructions

were given as part of the campaign to ensure greater participation of women. Secondly, gender

10

and development was an important theme in the training programmes. Thirdly, in the cost benefit assessment of the projects a gender impact statement was made mandatory. Fourthly, the local bodies were advised to set apart 10 per cent of the plan funds for projects directly targetting women.

Almost all the local bodies did prepare special projects for women. However, in no district was

the target of 10 per cent met. The grant-in-aid set apart for special programmes for women,

added up to only 4.26 per cent. A study, of these projects also revealed mat most of them were in

the traditional mould of women development projects such as kitchen gardening, backyard

poultry, garment making etc. Some of the projects by no stretch of definition could be categorised

as women development projects. Another weakness of the women development projects was the

pattern of finance. The Women Component Plans received only 29.3% of the outlay from the

plan grant-in-aid. The data reveal that the major source of resource mobilisation for women's

projects is from financial institutions and beneficiary contributions. Financial institutional credit

accounts for only 10.58% (Table 3.1) of the outlay for the overall plan, 22.32% of the outlay of

the women's component plan is expected to be financed by financial institutions. The beneficiary

contribution is higher by nearly 10 percentage points for the Women Component Plan Projects

(See Table 3.1). In short, the success of development projects for women depends more than the

general projects on financial institutions and the willingness of the beneficiaries to take on a

significant contribution.

What factors contributed to the lacklustre performance of the Women Component Plan? This question was discussed at various levels in the Campaign. A special conference of elected women representatives and key women Campaign activists discussed a report on this issue, which was then disseminated for further discussion at district level conventions of women panchayat representatives. Three thousand women participated in these discussions throughout the state. A special gender analysis handbook was prepared. Special measures were initiated to ensure greater participation of women in the preparation of second Annual Plan, formulation of innovative programmes and imparting of greater gender sensitiveness to the local plans in general.

11

Chapter 4

THE IMPLEMENTATION OF ANNUAL PLAN, 1997-98

Plan is not an end in itself. Success of the plan lies in its successful implementation. The

ongoing experiment in decentralised planning cannot be sustained unless the plans prepared are

also implemented effectively. At the same time, the transparent and participatory approach

adopted in the planning process will have to be extended also to the implementation stage. The

budgetary provision for as much as 36 per cent of the annual plan for 1 997-98 for the local bodies

was made realising that all of the essential preconditions for such a large devolution to come into

effect might not have been met. It was a conscious break with a tradition of postponing

devolution in the name of preparing the conditions. The People's Plan Campaign had reversed

the sequence: First, devolve the resources and powers and then clear the obstacles for

implementation as they arise. It was expected that the mass of people mobilised in the planning

campaign would generate the pressures from below and create a political will to clear the

obstacles. This being the logic of the Campaign, it was only inevitable that numerous problems

cropped up during the implementation stage. Our attempt here in this section is to give a brief

narrative of how some of the major problems were faced. Such a discussion would also provide

an insight into the new local self-government structures and procedures that are being

institutionalised as a result Of the Campaign.

Financial Procedures The first issue that had to be addressed was related to the flow of funds and utilisation of budget

provisions to the local bodies. Annexure IV of the Budget 'Details of Provisions Earmarked to

Panchayat Raj/ Nagarapalika Institutions in the budget for 1997-98' is itself a remarkable

document. It clearly spelt out the provisions for the schemes (both plan and non plan) that had

been transferred to the local bodies as grants under the concerned functional revenue expenditure

major/sub major heads of departments. This included funds for centrally sponsored schemes

also. More importantly, this document has clearly stated the general sector, SCP and TSP grant-

in-aid provided to each individual grama panchayats, block panchayats, district panchayats,

municipalities and corporations.

Besides the above mentioned funds for transferred schemes and grant-in-atd for the plan, the

local self-governments also received a number of non-plan grants which were distributed on the

1

basis of recommendations of State Finance Commission as accepted by the government. This last mentioned constituted the traditional source of fiscal transfer to the local bodies and could continue to follow the traditional route of allotment. But new procedures for allotment had to be prescribed for allotment of funds for transferred schemes and grant-in-aid. In the case of transferred schemes, the concerned administrative department was to decide the norms of devolution soon after the budget was presented and to communicate entitlement to each local body. The heads of departments were to issue appropriate allotment to the local bodies through authorised senior officers. The funds for the rural development schemes were to be routed through DRDA to the panchayats. This system had already been introduced during the financial year 1996-97. Therefore, the real innovation was with respect to the grant-in-aid component.

There are designated officers authorised to issue allotments of grant-in-aid to the different types of local bodies. The releases of funds are to be in quarterly instalments. First instalment is made once the DPC approves the local plan. The second release is made automatically on request by the local body and on submission of a utilisation certificate. The third instalment is to be released on a certificate of utilisation that 30 percent or more of the allotments of the first two instalments had been utilised. The condition for claiming the fourth instalment is that at least 60 per cent of the allotments received till then are actually utilised. If a local body does not utilise 90 per cent of the total grant-in-aid by the end of the financial year the unutilised amount is to be deducted from the first quarterly instalment of the next year.

The secretary of the local body is to present a separate grant-in-aid bill to the treasury for transfer, crediting it to the account of the local body. As soon as the local body receives an allotment under grant-in-aid it should formally decide the plan schemes on which the funds are to be utilised. Each of the schemes shall have an implementation officer. In case of schemes which are to be implemented by officers transferred to a local body, the funds earmarked for such schemes would have to be allotted to concerned officers and agencies and the transfer credited to their PD Account. Funds from other schemes would have to be transferred from the general PD Account to a separate plan PD Account in the name of the secretary of the local body. In short, all plan expenditures from the grant-in- aid would have to be through one of the plan PD Accounts. Expenditure from the plan PD Accounts may be incurred by the implementation officers only for implementation of approved projects and with authorisation from the head of the elected body. Funds may be transferred to other government departments for deposit work or beneficiary committees for implementation of the scheme on the basis of written agreements.

2

At first sight the above procedures look cumbersome and time consuming. Objections were raised that the bureaucratic set-up was being strengthened. There was considerable confusion and delay. But the above procedures laid down through G.O (P) No.676/97/Fin. dt.6 Aug 1997 created a financial system in which the flow of grant-in-aid funds in general and its project wise utilisation could be systematically monitored and, thereby, chances of diversion and misuse of funds are eliminated. It also ensured that the plan funds would not get accumulated in suspense accounts indefinitely. Given the limited capability of grama panchayat secretary and his office, if all the plan grant-in-aid accounts were to be maintained by him the system would have broken down. For the first time, the different officers transferred to the grama panchayats were being integrated into the panchayat system in a manner that direct responsibility could be fixed and the officers made accountable to the panchayat.

Implementation of Public Works

Implementation of public work by any genuine beneficiary committee or public committee was very difficult in the administrative set up that existed. Following are the key stages of implementation of a public work: (a) preparation of estimate, (b) technical sanction, (c) tendering process or authorising beneficiary committee and (d) supervision, measurement and preparation of bills. The present system of estimates prepared on totally unrealistic PWD or centrally determined rates makes it impossible for a beneficiary committee to implement a work without fudging the accounts. The technical sanction is not a transparent process and corruption is rampant. Since mobilisation advance is not provided and there is no provision for appointing a supervisor, a beneficiary committee would be forced to nominate a contractor to raise the finance and to actually implement the work. Measurement and check measurement are yet other hurdles that are difficult to cross without corruption.

A series of steps were taken to create a new environment in which a genuine beneficiary committee can effectively function: First step was the adoption of local market rates for estimation of cost of works so that the beneficiary committees may execute the works in a transparent manner maintaining actual records of purchase and payments. Many local bodies had prepared projects with cost estimates based on their local market rates. But such a plethora of rates could easily be misused and therefore it was necessary to have officially ratified local rates. In the work rules issued as G.O (P) No.216/97/LAD dt. 23/9/97 a provision was made for fixing schedule of rates every year by a district level committee of experts. For the year 1997-98, an

3

interim arrangement was made for a subgroup of DLEC to finalise the market rates. The committee could fix different regional rates even within a district on the basis of actual prevalent rates. But a provision was made that the total estimate of the work using the market rate should not exceed the estimate of the same work prepared using the 1996 PWD schedule by more than 50%. Simulation exercises showed that only in rare cases would it exceed the ceiling. In such cases the excess would have to be met through voluntary labour or public contribution. However, in some districts the local rates were fixed at 50 per cent of the PWD rate or no individual 'market rate' was allowed to exceed 50 per cent of the PWD rate. It required considerable discussions and revisions before the concept could be clarified fully and appropriate rates fixed.

Normally, department officials on the basis of their delegated powers issue the technical sanction. Under the new procedures adopted for the plans of the local bodies the technical sanctioning process is made a function of the block/ municipal and district level expert committees (BLEC/ MLEC and DLEC). As we had explained in chapter 2 these committees had been constituted (G.O (MS) No.8/97/plg dt.16-5-1997 ) primarily for the purpose of project appraisal. The expert committees were reconstituted with more mandatory officers and the additional responsibility of granting technical sanction. (G.O. (MS) No 21/97/Plg dt. 7-11-97) The technical sanction is to be given by the concerned subject committee through a due process. Since it is a committee rather than a single expert taking the decision, the limit to the power of technical sanction is not the delegated power enjoyed by the convenor but that of the next higher category officer to the convenor of the sub committee. Thus, for example, if an assistant engineer were the convenor, the sub group would have powers of the Assistant Executive Engineer and so on.

Next stage is the implementation of the work. In a significant departure from the past, permission is granted to give up to Rs.50,000 , or 25 per cent of the cost, as mobilisation advance to the beneficiary committee. In the case of local bodies that do not have the service of engineers, the estimates of the works can be prepared by any engineer from a panel approved by the local body and payment upto 5 percent of the estimated amount, subject to a maximum of Rs.2000 is also permitted (G.O (MS) No.31/97 LAD dt, 13-2-98). Grama panchayats without engineers'of their own can utilise the services of other government engineers or engineer members of BLEC/MLEC/CLEC/DLEC for supervision, measurements or preparation of work. The payment of remuneration up to 1.5 per cent of the cost is also permitted. Strict time limits were also prepared for measurement, check measurement, preparation of bill and the final payment.

4

If beneficiary committee is not found feasible for implementation of a project the work may be given to a contractor. But the cost estimate will have to be made at the PWD rates and normal procedures for tending the work will have to be adhered to.

Selection of Beneficiaries Perhaps, the most radical of the new procedures being laid down is the guidelines prepared for selection of beneficiaries under plan schemes.(G.O(p) No.220/97/LAD dt 2-10-1997). This government order has at one stroke undermined substantially the local political patronage using the beneficiary oriented plan schemes. Grama sabha has been made the agency for selection of beneficiaries of all plan schemes of all tiers of local bodies and also of Centrally Sponsored Schemes. The role of the elected bodies is confined to fixation of criteria for the selection of beneficiaries, invitation of applications and finalisation of the grama panchayat level list by integrating the priority lists supplied by the grama sabhas. They may also take steps to verify the information given in the application forms.

The list of applications from a ward will be examined by its grama sabha to identify the eligible and prepare a priority list. The eligibility criteria and prioritisation criteria should be explained to the members of the grama sabha. The sector wise subject group may take up the processing of applications. In addition to the criteria set by the panchayat, the grama sabha may also include sub-criteria for prioritisation according to local perceptions. If there is no rational method of discrimination then lots can be drawn, if commonly agreed upon.

Integration of the priority lists from the wards should be made by the grama panchayat on the basis of clear norms. Representatives of public and local press can have access to the proceedings of this final selection. The draft list shall be exhibited prominently and the objections considered and reason for rejection stated. The selection of beneficiaries for block and district panchayats also is to be made from the grama sabhas using grama panchayats as agents.

In the case of municipalities, the ward committees undertake the functions of grama sabha. In the ward committee meeting for the selection of beneficiaries, all the eligible applicants should be invited and prioritisation done in their presence. It is also stipulated that for selection of beneficiaries under the TSP either "oorukoottams" or special grama sabhas consisting of only tribal families are to be convened.

5

Checks against Corruption There is always a danger that decentralisation may degenerate into decentralisation of corruption. The best check against such an eventuality is to ensure total transparency in the proceedings. This is a concept that has been held paramount in all transactions of People's Campaign. Thus for example all documents of beneficiary selection, such as, verification of application forms, reports and minutes of meeting are all public documents. Even more importantly, all documents with respect to the works undertaken by the local bodies through contractors, beneficiary committees or directly by itself, including the bills and vouchers, are public documents with access to any member of the public. Copies of these documents may be had on payment of a fee. Essential facts about any public work in common language should be exhibited on a notice board at the work site. The right to information has been one of the key themes of the Campaign.

Besides the normal Local Fund Departmental audit, a performance audit is also envisaged

(G.O.(P) N0.185/97LAD 26.7.1997) . There is also the social audit to be undertaken by the

grama sabhas. Grama sabhas would have to be made more effective through organising

neighbourhood groups of 25 to 50 families below the grama sabha. In more than 50 panchayats

in Kerala today, neighbourhood groups have been organised as part of the People's Campaign and

their demonstration effect is expected to have a positive influence on the functioning of the grama

sabhas.

Unfortunately, there is a tendency to misuse the liberal opportunities provided for the beneficiary committees by setting up benami committees with some contractor or other as the convenor. To discourage corruption wide publicity is given against the above tendency through newspaper advertisements etc. Grievance enquiry committees have been setup at the district and the state level. These committees are authorised to receive complaints and can enquire into the complains using any method deemed appropriate and report to the government wherever statutory action is required. The grievance committee may also take up complains regarding beneficiary selection. A technical audit panel is also being created consisting of not more than 15 senior engineering professionals who would check implementation of public works. The above is supposed to be an interim arrangement till government takes a decision in the recommendations by the Sen committee to set up Ombudsman for the local bodies. (G.O(p)No 54/98/LAD dt.17-3-1998).

Besides, a number of other measures were improvised or instituted to facilitate smooth implementation of the plan. They include, procedures for purchase of materials and land,

6

implementation of water supply schemes linked to KWA and rural electrification schemes linked with KSEB, revision of approved plans, subsidy rates, interim budgetary procedures and apprenticeship schemes for civil engineers in grama panchayats. Despite these measures, the utilisation of plan funds by the local self-governments was tardy during the year 1997-98.

Progress of Plan Fund Utilisation Being the first year, serious delays and problems in implementation were only to be expected. Some of the problems have already been referred to. Even though the release of funds to grama panchayats was inaugurated at the end of May 1997, majority of the grama panchayats could finalise their plans and receive their first instalment of the grant-in-aid only by the month of August, Majority of the municipalities, blocks and district panchayats could make it only in the months of September-October. There was inordinate delay in the transfer-credit mechanism. It took, at times, as much as a month or more for the plan funds to be actually credited to the PD Accounts of the implementation officers after the allotment was received. Only in November the guidelines for local rates were cleared. The technical sanction procedure also took some time before it could stabilise. Thus, it was January by the time the implementation system was fully in position.

Just as the implementation of the plan was accelerating, disaster struck in the form of elections to the parliament. Not only was the attention of the people including the elected representative diverted from the plan, but also, there were a number of restrictions on plan implementation imposed by the Election Commission. Convening of grama sabhas were prohibited and a number of schemes, particularly beneficiary oriented projects had to be postponed. A comprehensive plan review undertaken in the month of February made it amply clear that plan implementation could take off only after the elections and that majority of the local bodies would not be able to claim the fourth instalments i.e., spent 60 per cent of the first three instalments. According to the new Financial Procedure Rules, substantial proportion of the grant-in-aid would lapse. Such an outcome at the end of more than a years' planning process, and that too largely as a result of factors beyond the control of the local bodies, would have had a demoralising impact. And therefore, government decided that the third and fourth instalments are released by relaxing the conditionalities and transfers credit them to the PD accounts of the secretaries of local bodies. The application of the 90 % expenditure clause was postponed to 30-6-98.( G,O (p) No.lOl/6/98/Fin dt. 17-3-98). It was proposed that any unspent amount below the 90 per cent limit as on 30-6-98 would be adjusted against first instalment of plan funds for the year 1998-99.

7

Despite the extension given for completing the implementation of the plan, most of the local bodies found the task too high. The lack of sufficient co-operation from the implementing officers was a major hurdle. Even though, these officers had been formally transferred to the local bodies they continued to be under their departmental authorities and more committed to their traditional departmental roles. The local bodies could do little to ensure compliance of the transferred officers. Generally, the departmental engineers were hostile to the new transparent and participatory system of implementing public works. Genuine beneficiary committees had to face serious difficulties in getting their work measured and getting the bills passed. The transfer credit mechanism of the treasury proved to be too time consuming and resulted in serious delays. There was lot of confusion regarding the interpretation of the new rules and guidelines. The teething problems proved to be too many.

For most of the local bodies, actual plan implementation consisted of four months from March to June. Table 4.1 below gives the financial expenditure of the different tiers of local bodies as on June 30th 1998. As per the financial statements provided by the local bodies, the state level financial achievement exceeded the 90 per cent limit fixed by the financial procedure rules. But there were few local bodies, which failed to achieve the target of 90 per cent.

Table 4.1

Expenditure of Grant-in-Aid (in crores)

Local Bodies Grant-in-Aid Expenditure till June 30th

Expenditure as of Grant-in-Aid

Grama Panchayat (951) 402.20 385.80 95.92 Block Panchayat(l 01) 56.41 51.88 91.97 Dist. Panchayat (14) . 123.94 116.88 94.31 Municipality (48) 53.32 51.98 97.48 Corporation (3) 33.53 34.05 101.56 Total (111 7) 669.4 640.60 95.70

Source: Statistical Statements of Fund Expenditure by Local Bodies. Note: Figures in parenthesis show the number of local bodies included in the calculations.

Even though, formally the expenditure of the local bodies as a whole was 95.70 per cent, several of the local bodies are reported to have achieved this level of expenditure by depositing their funds with various agencies. Under the pressure to spend the money so as to avoid the political embarrassment of funds lapsing some of the local bodies took recourse depositing their funds with unauthorised agencies and made even unauthorised changes in projects. Therefore, each local body was asked to make a detailed statement of its outstanding deposits and advances as on

8

June 30, 1998. Table 4.2 gives the percentage of the outstanding deposits and advances in the

total expenditure of the different tiers of local bodies as on 30th June 1998.

Preliminary examination of the data shows that the bulk of deposits and advances have been with authorised agencies viz. Kerala State Electricity Board and Kerala Water Authority. Similarly, most of the advances have gone to the beneficiary committees. Irregularities related to deposits and advances cannot be fully identified unless the case of each individual local body is separately processed. A small committee headed by the District Collector has been entrusted with the job of identifying irregular deposits and advances. The Performance Audit team has been assisting these committees. It is expected that the irregularities would be brought to the notice of the concerned local bodies and appropriate corrective measures advised. Except in cases of financial embezzlement, the penalty would be to disallow irregular deposits or advances from the statement of expenditure as on 30th June 1998.

Table 4.2

Outstanding deposits and advances in total plan expenditure (As on June 30, 1998 in per cent)

Local bodies Deposits Advances Grama Panchayat 12.77 7.38 Block Panchayat 20.68 8.01 Dist. Panchayat 34.61 4.80 Municipality 17.53 6.77 Corporation 14.55 4.25

Source: Statistical Statements of Local Bodies.

The speed also adversely affected the quality of implementation. Proper attention could not paid to monitoring of the plan implementation. The audit reports of the Performance Audit Teams, Local Fund Audit, Accountant General and Financial Inspection Wing have revealed numerous instances of procedural lapses. The Local Administration Department has carefully examined these cases and found that in most of the cases these lapses were not motivated by corruption, but caused by inexperience and pressures to complete the plan by June 30tb.

The bunching of projects and the emphasis on spending the grant-in-aid also prevented them

from mobilising the expected voluntary labour and beneficiary contribution while implementing

the projects. As can be seen from Table 4.3 the share of grant-in-aid increased from 45.13 per

cent as per the budget of Plan Outlay to 75-62 per cent of the final expenditure of the plan. The

9

major shortfall has been in the Centrally Sponsored Schemes whose share has declined from 13.01 per cent to 0.45 per cent. It may be noted that the statement in Table 4.3 does not contain the data on Block Panchayats where the Centrally Sponsored Schemes constituted 28.70 per cent of the total outlay. The grama panchayats and district panchayats by and large had failed to integrate the centrally sponsored schemes in their plans at the outset itself. The share of internal funds has also declined front 9.19 per cent to 2.0 per cent. The credit linkage envisaged in the plan had been materialised. It is a redeeming feature that the short fall in voluntary contribution has been very small and the share of beneficiary contribution has increased in the overall plan finance.

Table 4.3 .

Resource mobilisation as on June 30th 1998 (Rs in crores)

DISTRICT No. of local

bodies State

assistan ce

Own funds

State spon

sored Central iy

ponso red

Loan from co-op, inst.

Loan from fin.

lost Volun

tary contribu tion

8ene ficiary

contribut Others Total

TR1VANDRUM 79 75.60 0.66 0.02 0.15 0.13 0.22 5.00 17.20 1.00 100 KOLLAM 71 76.71 2.33 0.42 0.38 0.22 0.44 1.20 17.99 0.31 100 PATHANAMTHITTA 54 76.92 3.79 0.55 0.30 0.00 0.31 4.48 12.45 1.20 100 AUPUZHA 71 76.26 0.93 0.37 0.30 0.21 1.02 5.81 12.91 2.19 100 IDUKKI 28 75.88 0.60 0.62 0.23 0.00 3.45 4.01 9.20 6.02 100 KOTTAYAM 73 75.01 2.55 0.28 0.10 0.00 0.97 2.13 18.72 0.24 100 ERNAKULAM 86 73.95 5.13 0,37 0.21 0.08 0.86 2.88 15.30 1.22 100 THRISSUR 91 74.75 1.48 0.53 0,19 0.20 2.48 1.82 17.67 0.87 100 PALAGHAT 88 85.19 2.00 0,36 0.26 0.02 0.69 2.18 9.18 0.11 100 MALAPPURAM 94 76.99 1.42 0.09 0.24 0.07 0.52 3.29 17.19 0.19 100 KOZHIKODE 76 71.59 1.41 0.64 1.65 0.03 0.47 0.76 22.55 0.89 100 WAYANAD 23 81.90 3.42 0.17 3.76 0.05 0.02 3.04 7.60 0.04 100 KANNUR 81 63.30 1.78 0.54 0-03 0.26 1.78 4.02 27.71 0.57 100 KASARGODE 37 80.62 1.63 0.44 0.10 1.08 0,40 3.12 12.34 0.27 100 Grand Total 965 75.62 2.02 0.37 0.45 0.15 0.95 2.99 16.56 0.89 100

Source: Statistical Statements of Local Bodies, Note: Data of 951 grama panchayats and 14 district panchayats only.

While noting the failure to mobilise the local resources as targeted in the plan, it is a realistic assessment that the leakage has been minimal. More money than what was allotted was actually spent at the ground level. Even if a conservative estimate of only half the beneficiary contribution is taken as genuine additional resource mobilisation, it along with voluntary contribution and own funds of the local bodies would come to around 23 per cent of the grant-in-aid. A preliminary assessment of the physical achievements of the annual plan for 1997-98 has also been made. Some of the key figures are presented in Table 4.4.

10

Table 4.4

Selected Physical achievement of the annual plan for 1997-

98

Items G.P. B.P. Mu Cor D.P. L.B.

1 No. of beneficiaries for seeds, seedlings, fertilisers.. etc

1473688 180522 163333 111142 56047 1984732

2 No. of cows distributed 39321 9169 2278 129 1003 51900 3 No. of goats distributed 104732 7798 8757 952 3242 125481 4 No. of hens distributed 1224029 18040 105956 44935 30131 1423091 5 No. of new cowsheds 19943 2473 1580 90 280 24366 6 No of houses constructed 24704 8426 3676 1141 6433 44380 7 No. of latrines 104281 11338 5884 2117 748 124368 8 No. of new wells 20470 3413 900 0 681 25464 9 No. of new taps 6605 986 1460 1271 91 10413

10 No. of ponds cleaned 4972 4382 23 15 25 9417 11 New roads (km) 1966 335 164 13 224 2702 12 No, of new culverts 716 82 40 0 22 860 13 No, of new bridges 338 22 8 0 10 378

Source: Statistical Statements of Local Bodies. The conclusion of the first annual plan brought forth an avalanche of criticisms in the media regarding the quality of projects, irregularities in implementation, nepotism and corruption. Most of the local bodies had included distribution of milch animals and poultry to individual beneficiaries without seriously examining problems related to the supply of inputs. Therefore, the implementation of these projects led to severe scarcity of supplies. Further, the bunching of these projects to the final months gave them a high visibility and made them a favourite target of ridicule by critics of the Campaign. The deposits made and the advances given by the local bodies were also questioned.

The criticisms were exaggerated and in some cases ill motivated. But there is a positive aspect to the phenomenon. It was a sign of the success of the attempt to introduce transparency into development administration. It was not for the first time that asset distribution schemes were being implemented in the state. All the charges made against the plan implementation of the local bodies could be made even more forcefully against the traditional system. But the remarkable difference between the past and present was in the active ground level reaction against irregularities and lapses. The people had ceased to be indifferent. They were getting involved. 'The involvement and vigilance of the people are the guarantee that the weaknesses of the new system would in due course be overcome.

11

Chapter 5

ANNUAL PLAN FOR 1998-99 AND THE PROCESS OF INSTITUTIONALISATION

The budget proposal for 1998-99 was a clear statement of the State Government's resolve to strengthen the process of decentralisation in the State despite the numerous teething troubles and criticisms. As can be seen from Table 5.1 the budgetary provision for plan grant-in-aid to be distributed among local self-governments was enhanced significantly. The total plan devolution to local bodies was raised from Rs.1025 crores in 1997-98 to Rs.1178 crores in 1998-99. The share of the grant-in-aid component was enhanced from 75 per cent to nearly 85 per cent i.e. Rs. 749 Crores to Rs.950 Crores. As can be seen from Table 5.1 the grant-in-aid consists of Rs.716 crores for the general sector, Rs.195 crores for the SCP and 39 crores for the TSP.

TableS. 1

Distribution of Grant-in-Aid of Local Bodies, 1998-99 (Rs in crores)

Local Bodies No of Local Bodies

General Sector SCP TSP Total

(1) (2) (3) (4) (5) (6) Grama 990 426.02 108.21 15.31 549.54 Block Panchayats 152 91.29 36.07 7.66 135.02 District 14 91.29 36.07 15.31 142.67 Municipalities 55 71.18 10.17 0.54 81.90 Corporations 3 36.22 4.48 0.18 40.87 Total 1214 716.00 195.00 39.00 950.00

Source: State budget papers, Appendix IV, 1998-99

The new formula adopted for the distribution of plan grant-in-aid also signified an improvement over the past year. As in the previous year the rural - urban demarcation was made on the basis of population share with respect to general sector grant-in-aid. In the distribution of plan grant-in-aid under SCP / TSP a higher weightage was given to the rural population. For the inter-tier distribution, the same ratio as in the past year was followed with respect to general sector and SCP. But in the case of TSP, greater weightage was assigned to the grama panchayats and the ratio adopted was 40:20:40 for grama panchayats, block panchayats and district panchayats respectively instead of last year's 20:20:60. The major change was with respect to the intra-tier distribution. Instead of a mere population criterion a composite index of entitlement was evolved,

1

taking into consideration in addition to population, the geographical area of the local body, area under paddy and a composite index of backwardness based on houses without latrines and houses without electricity. The details are presented in Table 5.2

Table 5.2 The Criteria for Intra-Tier Distribution of Plan

Grant-in-Aid

freightage (percentage) Indicators Grama

Panchayat Block

Panchayat District

Panchayat Municipa-lities/Corpo

rations 1. Population (excluding SC/ST) 65 65 55 75 2 . Geographical area excluding area under forests

5 10 15 5

3. Area under paddy 5 -- - --4. Own Income of grama panchayat 10 - ~ ~5. Composite Index of Agricultural Labourers, Persons Engaged in Live Stock, Fisheries etc. and Marginal

15 25 20

6. Composite index of backwardness houses without latrine and houses without electricity.

10 20

Total 100 100 100 100 Source :State budget papers, Appendix IV, 1998-99

Revised Guidelines

In light of the previous year's experience several modifications were made with regard to the

guidelines given to the local bodies for plan formulation.

A limited functional division was introduced with regard to the nature of projects that may be undertaken by the different tiers of the local bodies, so as to avoid duplication of programmes. The individual beneficiary oriented asset distribution programmes were to be taken up by grama panchayats, municipalities and corporations. Only housing, well, and latrine programmes were exempted. Restrictions were imposed on the minimum width of the roads to be undertaken by blocks and district panchayats. The guidelines also highlighted certain priorities to be observed by the higher tiers in order to ensure complementarity of their programmes to those of the lower tiers.

The sectoral investment guidelines were also slightly modified. Local bodies were to continue to

invest minimum of 40 per cent of their grant-in-aid for the productive sectors and maximum of 30

2

per cent for the infra-structural sector. For the urban bodies, the minimum share of productive sector was fixed at 30 per cent. For the SCP and TSP portion of grant-in-aid, the ceiling on investment in the infra-structural sectors only was applicable; otherwise there were no restrictions on the sectoral choice. The allocation of 10 per cent of grant-in-aid for the women plan was made compulsory.

The grassroot tiers were to earmark sufficient funds for nutrition programmes in the

Anganwadies. They were also to provide funds for erecting large notice boards in every ward, for

exhibiting decisions of the grama sabhas and local bodies and also details of the public works

being undertaken in a ward.

Frivolous asset distribution programmes undertaken by some of the local bodies had been a subject of serious criticism during the implementation of the first year's plan. In response, projects such as free distribution of umbrellas, chappals, cloths, tools and cooking vessels were banned. They could be considered only as components of an overall integrated programme. Subsidy norms were also modified. Limits were also imposed on the maximum rate as well as amount of subsidy that could be given to a family and for an individual. The input subsidy in agriculture was limited to marginal and small farmers.

Planning Procedures As during the previous year, the planning process involved organising gramasabhas, seminars, task forces, project preparation, plan formulation, appraisal and approval. However, the sequence of events was altered and task forces at the local level were given greater importance. They were made the key organisational link in the preparation of the second year's annual plan. As was noted, weakness of the task forces were a major stumbling block in the preparation of the first year's plan. It was hoped that the presence of VTC members and greater involvement of officials would improve the functioning of the task forces during the second year. In the first year the functions of the task forces were confined to the preparation of the projects. They were formed only at the conclusion of the Development Seminars. The KRP-DRP-LRP structure provided the support for organisation of grama sabhas and the development seminars. For 1998-99 the task forces were envisaged to play a leading role in organising the grama sabhas and, the development seminars, besides drawing up the project proposals. A semi-structured programme of self-study was designed in order to give orientation to the task force members during the different phases of plan preparation. Through the above process, it was hoped, that a core team of experts consisting

3

of best members of the task forces would crystalise in every panchayat as a local level

autonomous expert group or as an informal planning cell assisting the local body in carrying out

development planning functions. The emergence of such a group of experts would lay a firm

basis for a sustainable planning process at the local level.

The local bodies were given the option to determine the number of task forces that might be set up. But they were encouraged to form integrated task forces for inter-related sectors with subcommittees for each sub-sector. Adoption of such a procedure was expected to encourage formulation of more integrated programmes. Each task force would ideally consist of a dozen members who are officials or experts in the concerned area or volunteers with practical experience in the field. An elected representative would be its chairperson, a member of the VTC the vice-chairperson, the implementation officer the convenor and a resource person the joint convenor. Separate task forces for Women Development, SC/ST development and Co-operation were made mandatory. These three task forces constituted, in a sense, monitoring committees in order to ensure that the concerns of weaker sections, gender and the co-operatives were incorporated into the projects prepared in every sector. For this purpose a representative from each of these three task forces was to be included in every other sectoral task force.

The task force for each sector was to submit a list of recommendations to be included in the plan to the committee of the local body. If a five year plan document had already been prepared, the projects included therein have to be given priority. The spill over projects from the previous year's plans was also to be given priority. The samithi/council of the local body after giving serious considerations to the recommendations of the task forces prepare a draft list of projects to be included in the second annual plan.

The draft plan proposals listed by the panchayat/municipal samithis would be presented and discussed in the grama/ward sabhas. The organisation of transactions in these meetings was broadly the same as in the previous year. A major point of difference was that prioritisation rather than listing of the problems was the main function of the grama/ward sabhas during the second year. With the annual plan outlay fixed and the draft proposals for each sector laid down, any addition or deletion to the draft proposals would involve the question of either intra-sectoral or inter-sectoral prioritisation. Modification of the proposed projects also might be suggested. During the previous year, the grama/ward sabhas were mainly to identify and list the development problems in their locality.

4

The panchayat samithi or municipal council should examine the amendments proposed by the grama sabhas and revise the draft plan proposals with the help of the task forces. Once the draft proposals were revised, a draft plan document was to be prepared for discussion at the development seminars. A list of the proposals from the grama sabha that have been rejected also have to be circulated at the development seminars. Delegates to the seminar were to be mostly drawn from the grama sabhas with a man and woman from each of the discussion groups. The elected samithis had the freedom to determine additional delegates. The development seminar, with delegates drawn from the wards and experts and officials, provided an opportunity for sorting out the conflicting demands from the wards and once more scrutinising the plan proposals and the priorities fixed.

The amendments proposed by the development seminars would be given due consideration by elected samithis before the plan was finalised. The structure of the plan document was more or less the same as those of the last year except for the review of the annual plan of 1997-98 which was to be included in the introductory chapter. The statistical annexure to the plan document (G. N. Forms) were simplified and reduced in number.

The problems of appraising the projects before approval were responsible for many of the serious

problems that cropped up during project implementation. Many projects had to be revised and

some were found to be frivolous and inconsistent with the guidelines. To overcome this, the

appraisal procedure were formalised and made more stringent. The procedure had five steps: * Verification of the planning procedures

* Appraisal of the projects and issuing of technical sanctions

* Verification of the statistical annexure

* Appraisal of the plan write-up

* Submission of recommendations to the District Planning Committee

Every local body was to present documents or statements related to the stages of the planning process that had been laid down by the government. Minor deviations could be condoned by the expert committee itself after making a note of them, but failure to hold the grama sabhas, seminars, or forming the task forces had to receive exemption from the government or DPC before the plan could be appraised.

In a major departure from the previous year, every project required technical and financial

appraisal and formal technical sanction. Projects involving construction or machinery, or

5

requiring detailed designs or estimates had to be separately listed for detailed examination,

provided the expert committee had found them prima facie technically feasible and financial

viable. All other projects would have to be examined and given technical sanction. Adoption of

this procedure assured that even the simplest project would be carefully examined before being

submitted to the DPC. The projects separately listed would be considered for technical sanction

after the plan had been approved.

Training Programme While the campaign mode training continued to characterise the preparation of the second year's

annual plan, three major departures from the past year may be noted, (a) A conscious attempt

was made to involve departmental officials and nonofficial experts in the training programmes

right from the beginning (b) Subject wise specialised training was given, (c) Steps were initiated

to move away from campaign mode training to institutional training by the end of the second

year's annual plan.

A general' orientation program had to be provided for all task force members. Instead of a one time training at block or district level for the task force members, a programme of self-study structured around four one day/half day local workshops was spread over the months of April-June. Our discussion of the plan procedures should have made it evident that at least four general body meetings of the task force members had to take place before the plan could be finalised. At the first general body meeting, the members were to familiarise themselves with the procedures and guidelines for project preparation. The second meeting was to be held before the grama sabhas. At this meeting the draft list of projects had to be drawn up. The third meeting was for considering modifications to the draft list made at the grama sabhas and ward meetings. At this meeting the task force members would begin drafting the plan document to be presented at the development seminar. After the development seminars, the fourth meeting was for finalising the draft plan document for consideration by the samithi/council of the local body.

A handbook was prepared outlining the nodal events and guidelines of the second year's annual plan preparation, titled 'Aasoothrana Sahayi No. T (Plan Guide No. 1). This handbook sums up the strength and weaknesses of last year's Campaign, reviews the annual plan for 1997-98 and lays down the procedures for functioning of task forces, convening of grama sabhas, organising development seminars and formulation of projects and the plan document. Aasoothrana Sahayi No. 1 was the basic text for the above self-study programme. More than 100,000 copies of the

6

handbook were printed to provide a copy for every member of the task force. Key Resource Persons and selected VTC members were trained to act as facilitators. The first orientation meeting of the task force members generally took place and the handbook was distributed, but thereafter the task force meetings were limited to official duties for immediate planning tasks. Therefore, the program was only partially successful.

Besides the general orientation programme regarding the planning procedures, sector specific training workshops/ project clinics for the members of the task forces were also envisaged. This indeed is a distinctive feature of the second year's annual plan preparation. The training programmes of the first annual plan, even though organised in seven rounds, have been on general planning techniques and procedures. The sectoral perspectives did not receive the due attention and this weakness was reflected in the quality of the projects. Each of the specialised courses offered were to be confined to members of the task forces of that particular sector. The courses will be organised at the block/municipality level. Normally the workshop would last two days. The general structure of the workshops would be:

• review of last year's plan programmes in the sector and the analysis in the local development reports.

• • the development problems of the sector and the perspective to be adopted in the local plan.

• « review of the projects that had been prepared and actual preparation of projects in the workshop itself.

For the successful conduct of the above sectoral workshops it was important that detailed handbooks are prepared for each sector. Thirteen such handbooks, with the series title "Plan Guide" (Aasoothrana Sahayi) were prepared. Each handbook had distinct characteristics, being produced by separate teams of specialists. But broadly the pattern adopted was as follows: review of the planning experience in the particular sector during the first year followed by detailed discussion of various sectoral developmental problems and potential and suggestions for improving the projects in the second annual plan. A number of model projects were also to be given. Table 5.3 presents the distribution of the participants at the state/district level faculty training programmes and the estimated number of participants in the local level workshops.

Special attention was given to the sectoral training programmes for women and dalits. One day district conventions of all the elected women representatives were organised. A number of experimental pedagogic techniques were successfully utilised in these conventions for effective

7

interaction. A highlight of the conventions was the performance by a women theatre group focussing upon challenges before women in panchayats. With regards to SCP and TSP a series of workshop spread over a month were held at Thiruvananthapuram with the Minister for SC/ST Development participating in all the key sessions. All the SC/ST elected members, key office bearers of local bodies, key resource persons and chairpersons of SC/ST expert committees participated in these workshops. As a follow up district level conventions were organised to review the implementation of SCP and TSP.

Table 5.3 Distribution of Faculty Members and Participants in The Sectoral Training

Program, 1998

SI. No Sector

State Core Faculty

Members

District Faculty

Members Participants in the Workshops

1 Agriculture 75 600 25000

2 Animal Husbandry 60 350 10000

3 Fisheries 40 300 10000

4 Education 50 500 10000

5 Health 50 300 17000

6 Anganwadi 40 300 25000

7 Drinking Water 30 300 10000

8 Women 40 500 25000

9 Energy 30 300 10000

10 Co-operatiOn 30 300 25000

11 Public Works 30 600 20000

12 Sanitation 40 300 10000

13 SC/ST 30 300 10000

Source ^Registration forms, Training programme - 1998 and Returns on Block Level Workshops

Yet another initiative was an attempt to strengthen the linkage between the co-operative sector and local level planning. With the help of State Co-operative Union, joint conventions of co-operatives and elected representatives were organised in all districts where a draft programme

8

was presented and discussed. These discussions were useful in initiating certain key changes in the co-operative law and a number of important initiatives to link co-operative credits to the local plans.

Plan Formulation The preparation of the first year's annual plan had been a great learning experience. People were learning by doing. The lessons thus learned proved to be a source of strength in the preparation of the second year's annual plan. While it required more than a year's preparations to draw up the first year's annual plan, it took only around four months for the local bodies to formulate their second year's annual plan.

However a major drawback was that the plan preparation could not be undertaken simultaneously with the implementation process. And, as we shall see later, for reasons beyond the control of the local bodies the implementation of the first year's annual plan could not be completed before the end of June 1998. Even though efforts were made from December, 1997 to initiate the process of preparing the second year's annual plan the preparatory activities started in earnest only in July 1998, after the completion of the implementation of the first year's annual plan.

The grama sabhas were spread over the month of June and July. A preliminary analysis shows a significant improvement in the participation when compared to the previous grama sabhas. Most of the seminars were spread over the month of August. It was decided that all the local bodies had to submit their annual plans by October 31st 1998. The failure to do so would have resulted in the forfeiture of one instalment in the grant-in-aid. Only a few grama panchayats failed to meet the deadline.

A review of tbe planning process and the plans drawn up during 1998-99 reveals a significant improvement over the previous year. This is found to be true with respect to almost all aspects of local level planning; viz., compliance with the procedures and guidelines, the quality of plan documents and project proposals, pattern of financing, sectoral allocation strategy, mode of selection of beneficiaries, procedures for implementation and monitoring, etc. A final assessment of some of these aspects may have to wait till the implementation is over.

9

Review of Plan Proposals for 1998-99 The review of plan proposals (1998-99) presented here is based on the data provided in the Statistical Annexure of the plan documents submitted by the local self-governments. It may be cautioned that the revisions recommended by the DPCs have not yet been incorporated fully into the statistical statements that we have used. It should also be noted that the data set is not yet complete in terms of coverage of local bodies. It does not include the data of local bodies in Thiruvananthapuram and Alappuzha Districts and also the District Panchayats of Pathanamthitta and Palakkad.

Table 5.4 gives the pattern of financing adopted in the second annual plan. The share of sources other than state grant-in-aid in the total plan outlay has declined marginally from 56.46 per cent recorded in the first year to 54.87 per cent in the second annual plan. This, however, cannot be taken as a sign of declining enthusiasm for additional resource mobilisation. The share of beneficiary contribution has declined from 20.59 per cent in the previous plan to 11.99 per cent in the second year. It may be interpreted as a positive movement towards a more realistic estimate of beneficiary contribution, as against the tendency for exaggeration noted during the previous year. A disturbing trend has been the reduction in the share of loans from financial institutions from 10.58 per cent in 1997-98 to 7.3 per cent in 1998-99. Most of the local bodies had to revise their plan as they failed to mobilise the targeted level of resources from the financial institutions during the previous year.. As mentioned earlier, there is considerable scope for improving the contributions of financial institutions for local level development programmes. However, it requires a major change in the attitude of the financial institutions. Despite the steps initiated to improve the linkage for the (with the ?) co-operative sector, the over all contribution of the co-operative sector in financing the local plans has not improved.

It is to be noted that inspite of such drastic reductions in the share of beneficiary contribution and financial institutions there has not been any significant increase in the dependence on the State grant-in-aid. This was made possible by achieving sizeable enhancement in the share of other important sources, viz., internal funds, state sponsored programmes and centrally sponsored programmes.

The share of internal funds went up remarkably from 5.84 in 1997-98 to 9.19 per cent in 1998-99. The revised guidelines for the second year's annual plan made great emphasis on integrating the non-plan revenue surplus of the local bodies with their annual plan. It also indicates a change in

10

the attitude in favour of the transparent system of implementation recommended by the Plan Campaign. The contribution from this source could further improve in future with better synchronisation of the budgeting process with that of the plan formulation.

Tab!e5.4

Financing Pattern of the Annual Plans of the Local Bodies (%), 1998-99

(Data of 1014 local

bodies)

State Assistance

Internal funds

State sponsored

Centraly sponsore

d Loan

from co-op. Inst.

Loan from fin. Inst.

Voluntary Contribu-

tion Benefi-ciary contri-bution

Others Total outlay

General 41.19 10.61 4.94 13.91 1.35 8.01 3.65 13.00 3.34 100.00

SCP 60.81 3.00 8.25 9.85 0.57 4.84 2.16 8.19 2.32 100.00 TSP 73.12 2.00 6.59 7.74 0.27 1.91 1.91 3.64 2.82 100.00 Total 45.13 9.19 5.50 13.10 1.20 7.35 3.37 11.99 3.17 100.00 Women 53.52 1.10 2.45 4.23 2.96 7.49 3.30 21.91 3.04 100.00 Productive 47.47 1.60 3.38 11.84 1.37 6.52 3.95 22.15 1.71 100.00 Service 45.02 6.10 9.08 14.45 0.64 8.88 3.41 8.31 4.10 100.00 Infrastructu 41.76 24.87 3.68 13.13 1.71 6.44 2.44 1.89 4.06 100.00

Source: Consolidated from Appendix forms of local bodies, 1998-99.

A remarkable feature of the second year's annual plan is the integration of the Centrally

Sponsored schemes with the plans of the local bodies. Contribution from this source has nearly

doubled from 6.82 per cent in 1997-98 to 13.1 per cent in 1998-99. But the same cannot be

said of the State Sponsored schemes even though its share also has marginally increased. Lack

of sufficient information seems to stand in the way of better integration of State Sponsored

schemes with the local plans.

Table 5.5

Distribution of State Assistance & Total Outlay of the Annual Plans (Data of 1014 local bodies)

11

Code Items No. projects <Wi to total state assistance % to total outlay

1.1 Paddy 1796 3.06 3.35 1.2 Other crops 3667 4.20 5.19 1.3 Other Agricultural development program 1524 2.05 1.60 1.4 Animal husbandry&dalry 5548 6.27 6.51 1.5 Fisheries 989 1.02 1.19 1.6 Forestry 55 0.02 0.02

1,7 GcMjnen0on(Bgri.MlBd) 235 0.28 0,24 2.1 Soil & water conservation 4190 4.12 4.45 2.2 Minor Irrigation 6918 9.64 7.26 2.3 Rood control 756 0.87 0.63 3.1 Small-scale Industries 3186 5.62 4.95 3.2 Handicrafts 200 0.16 0.10 3.3 Handtoom 94 0.19 0.15 3.4 Coir 122 0.22 0.21 3.5 Khadi 77 0,12 0.08 3.6 Sericulture 14 0.02 0.01 3.7 Others 292 0.67 0.56 3.8 Ooperation(Industries) 436 0.80 0.65

Productive Sector 30099 39.33 37.16 4.1 Environment 40 0.03 0.02 5.1 Primary Education 4108 1.63 1.48 5.2 High school 1041 1.34 1.00 5.3 Technical Education 226 0.22 0.22 5.4 Youth services 704 0.44 0.42 5.5 Art & Culture 2263 1.29 0.89 6.1 Public Health 2958 2.18 1.96 6.2 Drinking water 6140 5.83 4.03 6.3 Sanitation 3169 3.51 3.99 7.1 Housing awareness 113 0.34 0.32 7.2 Housing 5109 12.19 12.47 7.3 Slum development 266 0.57 0.73 7.4 Co-operatton(houslng) 11 0.01 0.01 8.1 Women & Childreh Wdfare 2622 1.37 1.09 8.2 Nutrition 966 1.24 0.77 8.3 Employment & Labour welfare 1437 0.91 2.01 8.4 Social Welfare 1918 1.30 3.17 9.1 Tourism 57 0.13 0.10 9-2 PuWic distribution 314 0.36 0.47 9.3 Public cemetery 194 0.11 0.11 9.4 Surveys 986 0.57 0.33 9.5 Consumer co-operatives 108 0.10 0.18

Service sector 34750 35.69 35.77 10.1 Power production 76 0.25 0,83 10.2 Power Distribution 2534 2.07 1.44 10.3 Development of non-conventional energy 72 0.04 0.13 10.4 Energy conservation 319 0.10 0.13

10.5 Integrated energy planning 53 0,01 0.01 11.1 Roads,8rtdges 24278 19.07 19.12

12

11.2 Inland water transport 31 0.02 0,01 11.3 Other modes of transport 314 0.09 0.25 11.4 Bus Stand, Waiting Shed, others. 432 0.36 0.73 12.1 Other housing Services 1501 1.78 3.05

Infrastructure Sector 29610 23.79 25.70

without any code 1125 1.20 1.37

Grand Total 95584 100.00 100.00

Source: Consolidated from Appendix forms of local bodies, 1998-99,

An examination of the sectoral investment pattern shows that the allocations for productive, service and infrastructure sectors respectively of the general sector grant-in-aid are 39.33 per cent, 35.69 per cent and 23.79 per cent (See Table 5.5). Coming to sub-sector wise allocation of grant-in-aid, a major change noted in the productive sector is the increase in the allocation of the industrial sector. From 4.57 per cent in the first plan, the share of industrial sub-sectors taken together went up to 7 per cent. While the allocation for paddy improved, there has been a decline in the share of other crops and animal husbandry. The decline in the share of animal husbandry should be viewed in the context of the criticism levelled against excessive emphasis on projects for distribution of cows and goats to individual beneficiaries. Soil and water conservation and minor irrigation are the other thrust areas in the productive sector.

Housing continues to be the lead sub-sector in the service sector with an allocation of 12.19 per cent of the grant-in-aid. Other leading sub sectors in the service sector include drinking water (5.83 per cent), sanitation (3.5 per cent) and public health (2.18 per cent). The increased allocation for nutrition programmes; social welfare, and 'women and child care' may be seen as a response to the call to earmark adequate funds for anganwadis and balavadis. Out of the total allocation of 23.79 per cent for the infrastructure sector, 19.07 per cent goes for roads and bridges. Rural electrification projects take around 2.07 per cent of the total grant-in-aid. Energy planning and conservation, continues to be among the neglected areas just as they were in the previous plan.

The implementation of the second year's annual plan was also constrained by the delay in finalising the annual plan. As we noted the second year's annual plan could be completed only by the end of September. In the light of the experience of the previous year, certain modifications

13

were made in the beneficiary selection rules and also the procedure to be adopted for preparing estimates for works. The efficiency of technical appraisal and issuing of technical sanction also improved. Nearly half the projects were issued technical sanction during September-October at the time of approval of the plans. By December about 75 per cent of the projects were granted technical sanction. By the end of January, nearly 90 per cent of the projects were granted technical sanction. The entire grant-in-aid was reached to the local bodies by the end of March, waiving the conditions set for the release of the grant-in-aid instalment. The Government also decided to raise the carry over element of Annual Plan to the subsequent year from 10 per cent to 25 per cent. Many of the agriculture projects could be implemented only during the major agriculture season of the year, before the onset of south-west monsoon in June. Further, Kerala which two monsoon seasons, the months of April-May are the ideal period for the implementation of public works particularly irrigation works. By raising the carry over limit to 25 per cent it was ensured that the above projects could continue to be implemented even after the end of the financial year without hindrance.

It is too early to attempt a review of the implementation of the second year's annual plan. However, there has been one remarkable difference from the experience of the first year's annual plan that may be noted. The surcharged atmosphere of criticisms and controversies with respect to various omissions and commissions of the local bodies clouded the conclusion of the first year's annual plan. There was no recurrence of such a phenomenon at the conclusion of the second year's annual plan. The frivolous projects were rare. The complaints against nepotism in beneficiary selection dramatically declined. With the gaining of experience, many of the irregularities and lapses were avoided. The officials became more co-operative and involved in the process. There was a general feeling of optimism that the system was stabilising.

The Process of Institutionalisation A major weakness of the first two Annual Plans have been the delay in finalising the plan document resulting in a squeeze of time left for plan implementation. It should be possible to solve this problem during the third year, when it is expected to complete the process of plan formulation by the month of June. The grant-in-aid can then be released in July 1998, giving the local bodies nearly 9 months for plan implementation. With eight to nine months available for the implementation of the plan, a remarkable improvement in the quality of implementation is expected in terms of additional resource mobilisation, monitoring, compliance with rules and procedures and transparency. For the year 2000-01 it should be possible to complete the planning

14

process before the beginning of the financial year itself. The formulation of the Consolidated District Plan, to be undertaken during the third year, would also help to improve the quality of the plans.

The prospects of stabilisation of decentralised planning process are also strengthened by the institutional changes that have already been initiated by the state government. As we have noted, the primary objective of the People's Campaign has been to empower the local bodies to prepare and implement their own development plans given the various constraints within which they are operating today. The Campaign has succeeded to a great extent in achieving this objective. In the process it has also generated a new set of values and style of public functioning that emphasise transparency and public participation. These have now got to be institutionalised if the decentralised planning process is to be made sustainable and the local bodies are to be transformed into units of self-governments as envisioned in the Constitution. The year 1998-99 has been remarkable for certain decisive steps undertaken by the government in this direction. The Campaign has contributed to create an environment conducive for. effective institutionalisation of people's planning.

The Government of Kerala accepted with some minor modifications the recommendations of the Committee on Decentralisation of Powers (popularly known as Sen Committee after its late Chairperson Dr.Satya Brata Sen). The Committee on Decentralisation of Powers gave two interim reports to the government - one in August 1996, laying down the broad approaches and recommendations and another in April 1997 on Performance Audit and transfer of files and papers to LSGIs (was Self Governing Institutions?). The final report structured in four volumes was submitted to the government in December 1997. Prof. Sen passed away before the Committee could finalise the report but the interim report, which was prepared under his personal guidance in a record time of three weeks by August 1997, laid down the basic principles on which the Committee was to draw up its final report. These basic principles of the vision on decentralisation are worth quoting:

1. Autonomy: The local self-governments are to be autonomous, functionally, financially, and administratively. The different tiers of local self-governments should be seen as complementary units rather than hierarchically organised.

2. Subsidiarity: It means that what can be done best at a particular level should be done at that level and not higher levels. All that can be optimally done at the lowest level should be reserved to that level. Only the residual should be passed on to the higher levels.

15

3. Role clarity: There should be clarity regarding the roles of each tier in the development process and clear division of functions between the tiers. >

4. Complementarily: The functions of different tiers should not be overlapping, but should be complementary to each other.

5. Uniformity: There should be uniformity of norms and rules.

6. People's participation; the functioning of the local self-government should be such that it facilitates maximum direct participation of people in the development process.

7. Accountability: The elected representative accountability is known to be confined to the periodic electoral verdicts. There should be continuous social auditing of the performance.

8. Transparency: People should have the right to information regarding every detail of the administration.

The Committee was guided by the above guiding principles. It held detailed discussions with all the concerned groups related to the local self-governments such as senior government officials, organisations of government employees, representatives of all tiers of local bodies, and also eminent academicians and social leaders. It might be worthwhile noting that the decision to appoint a committee to make suggestions for a comprehensive overhauling of the legislations on local self-governments and related administrative matters was taken along with the decision to launch the Campaign. Many members of the Committee closely interacted with the Campaign in their personal as well as official capacity. Most of the rounds of state level training related to the Campaign invariably contained a post question/answer session with the participants and a panel for the Committee. There is a close correspondence between the approach of the Campaign and that of the Committee in vision and spirit. The commitment of the government to implement the recommendations of the Committee guarantees that the process initiated by the Campaign will be institutionalised.

Based on the recommendations of the Sen Committee, the government has already comprehensively amended the existing Kerala Panchayathi Raj Act 1994 and Kerala Municipality Act 1994. The amendments would reduce the scope for government interference in the day to day functions of the local bodies. The resolutions can be cancelled only in extraordinary circumstances. Dissolution of a local body would have to follow a due rigorous process and that too after obtaining opinion from an independent authority likes ombudsman. Even appellate functions in respect to statutory matters are to be shifted to quasi-judicial authorities. The

16

autonomy of the local self-government also implies control over the staff transferred to it. According to the amended law, local self-governments have the power to allocate work to the staff transferred to it on a functional basis, cutting across departments, even if the transferred officials continue in their original parent cadres.

The amendments have also redefined the powers and functions of different tiers on the principle of subsidiarity, complementarity and role clarity. The overlapping of functions have been reduced to the minimum. While assigning the functions to the different tiers, the service area approach has been adopted in the case of infra-structural programs and the subsidiarity approach with respect to productive and social sectors.

Every ordinary citizen irrespective of his/her membership in political or non-political social formation has the right and opportunity to intervene in the planning process by participating in the grama sabhas. The powers and functions of grama sabhas have been enhanced and the minimum number of grama sabha meetings has been raised from two to four per annum. In urban areas, with the exception of large municipalities and corporations, ward sabhas, similar to the grama sabhas in the panchayats, have been instituted. Special ward conventions for planning purposes may be convened even in the larger municipalities and corporations.

The function of the role of Grama Sabha as an institution for social audit has been legalised. Review reports of the plan implementation and local administration have to be placed before the grama sabha. It has been decided that all plan documents including those related to beneficiary selection, bills and vouchers of works etc. are public documents which any citizen can access. Essential facts about any public works should be exhibited in a notice board at the work site in common language. The provisions of the Act itself have now sanctified the procedure that we have already discussed earlier regarding selection of beneficiaries in the grama sabhas. The role of elected representative is confined to fixation of criteria for the selection of beneficiary and invitation of applications. The identification of the eligible and finalisation of priority lists are to be undertaken by the grama sabhas.

The amendments to the basic legislative framework has indeed been a major mile stone in the process of institutionalisation. The government has also announced a number of decisive steps that would be taken up during 1999-2000.

17

• The Committee on Decentralisation of Powers has identified staff in different departments who are rendered surplus due to the transfer of functions to the local bodies. The indications are that there would be sufficient staff to be redeployed, so that nearly all the local bodies are provided with at least one engineer and an additional clerical staff.

• On the basis of the experience of the last three years, comprehensive rules for the budgeting,

planning , beneficiary selection and functioning of DPC are being framed. Preparation of

simple, rational and exhaustive manuals on the various procedures and on institutions

transferred LSGIs is yet another important task.

• The audit system of local bodies is being revamped and strengthened. Regular online

corrective audit through Performance Audit mechanism is being streamlined. A proper

grievance redress mechanism through Appellate Tribunal and Ombudsman is also expected to

be set up during the current year.

• A programme for computerised information networking of the local bodies in Kerala is being

implemented with special financial assistance from the Planning Commission.

Implementation of this project during 1999-2000 will facilitate the smooth and timely flow of

information and systematic monitoring and evaluation of the local plans.

• Most of the existing quasi-governmental and governmental authorities and committees such as Development Authorities and Advisory Committees that tend to be parallel structures to the local self-governments are to be abolished. DRDA is to be emerged with zilla panchayat and DDC with DPC. Wherever certain structures are required for carrying out functions, which are not restricted to the boundaries of any one local body, the appropriate method would be to form joint committees of the affected local bodies.

If the process that has already been successfully initiated were allowed to continue and strengthen it would no doubt have a very significant impact not only on the economy but also in the society of Kerala. Enough has happened in the state during the past three years to make one justifiably optimistic.

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Chapter 6

THE GRAMA SABHA

The resurrection of the tradition of grama sabhas by the 73rd and 74th Constitutional Amendments as

an integral part of Panchayati Raj system has been hailed as a path breaking legislation towards

genuine participatory democracy. However, in most of the states, the grama sabhas have been

given only advisory role with very little actual power other than right to elicit information on the

functioning of the grama panchayat. In actual practice the statutory bi-annual meetings are being

reluctantly convened, if at all, and more often even without the quorum in most places. The

experience of West Bengal and Kerala shows that not only can they be made into effective

functional forums for mass participation but also grass root level institutions for participatory

planning.

The Grama sabhas are an ideal forum for discharging the following functions related to local

level planning and plan implementation:

1. Identify the felt needs of the people and local problems 2. Evaluating and prioritising the project proposals that are to be included in the local plan 3. Selection of beneficiaries 4. Mobilising local resources including voluntary labour for implementation of the projects 5. Undertaking continuous social audit of the plan implementation.

Grama sabhas, the assemblies of voters in every grama panchayat or hamlet / ward

within the grama panchayat provides an ideal starting block for People's Planning. Through

the discussion in these village assemblies, people can identify local development problems,

analyse the factors responsible and put forward suggestions for possible solutions. The

propaganda related to convening the grama sabhas and the discussions in these assemblies

would help to create popular awareness about decentralised planning. Besides, the selection

and training of resource persons for organising the grama sabhas would also lay the

foundation for the future organisational structure of the People's Plan Campaign. Thus, the

first phase of the Campaign focussing on the grama sabhas would have 3 objectives: To identify the felt needs of the people in every locality. To create popular awareness of the Campaign and its potential to improve their lives. To create a Campaign structure.

1

There are four sets of issues that have to be sorted out before the grama sabhas are convened:

1. How can it be ensured that majority of the members of the grama sabhas will be activated to participate in the meeting?

2. How could the grama sabhas be organised to provide for effective participation of ordinary

people, many of whom would not be used to speaking in large meetings?

3. What should be the agenda for discussion? Should the participants be instructed simply to identify problems in their localities or should they also be instructed to attempt to identify and prioritise solutions to these problems?

4. How are the discussions to be organised? Could they be left to the spontaneous actions of the participants or would it be better to prescribe a standardised procedure?

1. Mobilising People in Large Numbers

To encourage the largest possible degree of participation, detailed and elaborate preparatory work

have to be undertaken before the grama sabhas are convened. The following activities are

suggested:

• A convention of the representatives of all the political parties and mass organisations may be called to discuss the grama sabhas. If necessary the panchayat council can create a special organising committee with equal representation of all the political parties for organising the grama sabhas.

• Separate meetings of women's organisations and anganwadies may be organised. Similar meetings may be held for other sections of people.

• Special attention must be paid for participation of dalits. A meeting of the community leaders may be organised.

• The place and timing of the grama sabha is important. The grama sabhas must be organized on holidays rather than on working days and the ideal time would be in the afternoon, particularly, from the point of women participation. In Kerala, the village school was found to be the ideal and preferred venue. The grama sabhas may be convened in public places with sufficient shade for group meetings.

• Propaganda through official machinery like Anganwadis, PHCs, veterinary hospitals, Chowkidar's announcements etc.

• Postering

• House to house Campaign using mahila mandals or squads of village teachers is a very effective tool for mobilisation. Volunteers must deliver written invitations to the grama sabhas to each household.

• The grama sabhas can be transformed into festivals of the people with musical performances, street theatre presentations and padayathras through the panchayats.

2

• Propaganda through literacy circles. It would be best to have a central team of artists for a block area who would tour the villages making theatre and musical presentations regarding decentralised planning.

2. Adopting the Small Group Approach

The success of mobilising people in large scale to participate in the grama sabha would inevitably give rise to certain new problems with regard to the organisation of the meeting. A meeting of even around 200-300 persons would be large enough to intimidate many ordinary people from speaking. Instead, local demagogues might take over, defeating the very purpose of the assembly by making it a typical meeting with a one-way discourse.

A practical solution to the above situation is to adopt the small group approach. Instead of the

grama sabha meeting as a general body of several hundred people, after a brief common

gathering, the participants should divide into smaller groups, each dealing with a particular

development sector and discuss in depth the problems related to that sector.

This small group arrangement would make it possible for ordinary people, particularly women, to

be able to participate in the discussions. Fourteen groups are proposed. (Depending upon the

concrete situation of the panchayat a number of groups could be enlarged or some of the groups

could be combined)

Agriculture and Irrigation Animal Husbandry Fishing Education, Drinking Water and Sanitation Health Industry Transport Energy Housing and Welfare Culture Women's Development SC/STDevelopment Co-operatives Resource Mobilisation.

It is also advisable to have hamlet wise or neighbourhood group discussions before the grama sabhas are convened. But it need not be made mandatory, as it would be difficult to organise

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neighbourhood groups district wide in the short time period available before the Campaign is to start. It is also better to allow neighbourhood groups to develop as a result of the activities of the Campaign rather than as structures mandated from above.

3. Agenda for the Grama Sabhas

The model agenda that was used in Kerala for the Plan grama sabhas are given below:

1.30 - 2.00 Registration 2.00 - 2.05 Welcome address by the ward member 2.05 - 2.15 Presidential address by the President / Vice

President of Village Panchayat 2.15 - 2.30 Inaugural address - local MLA or Block /

District Panchayat representative 2.30 - 3.15 Presentations on (a) Challenge of Development

and (b) Decentralised Planning Campaign by Resource Persons

3.15 - 5.15 Group discussions 5.15 - 5.45 General presentation of a resume of group

discussions 5.45 - 6.00 Consolidation, follow up action, conclusion

What is to be the focus of the discussions in the subject groups and the plenary sessions? Are they to draw up a list of development priorities? It is impractical to determine the priorities at this first meeting itself. Setting of priorities should be the outcome of a process of multi-level deliberations in which not only the subjective needs of the people but also the objective resource and environmental constraints and possibilities are fully taken into account.

As we have noted above the grama sabhas are to be convened in small groups, each dealing with a development sector. The discussion group might begin considering priorities within its sector, but the issue of priorities among the sectors could only be considered at a later time. The planning exercise is not to be centred on a single issue or sector. It is to be an integrated, comprehensive plan for the locality. Such a total plan prioritisation cannot be undertaken at the Grama sabha, which in cases such as Kerala consists of ward-level assemblies of voters. The tasks of the grama sabhas for Plan may be defined as follows:

• List the development problems in each of the 14 sectors.

• Collect statistics and information on resources and development problems that can be

gathered through mutual consultation.

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• Make suggestions for solutions to the problems identified. They may also indicate the mtra-sectoral priorities.

4. Semi-Structured Discussions

There are many who feel that the discussions should be left to the choice of the local people. Any attempt to structure it would be introducing preconceived notions into the grassroots level dialogue. But there are also serious limitations to this strategy of leaving everything to spontaneity. Given the limitations of time and the scale of the Campaign, it is necessary to have certain guidelines for discussions in the form of a semi-structured questionnaire. For each of the 14 development sectors a dozen or two questions may be prepared that would draw attention to key problems and guide discussion, towards a systematic analysis. The questionnaire is not to be distributed among the group. Every group is to have one or two trained facilitators who would use the questionnaire as a guideline while leading the discussion. The facilitators are to creatively modify the questionnaire to suit local problems. The role of the Resource Persons is to encourage the people to list and analyse the problems based upon their real life.

We shall illustrate the semi-structured discussion procedure with an example from agriculture. In most villages in Kerala people believe that rice cultivation does not provide adequate remuneration. The resource person should ask: Is this true in our village? It is likely that the discussants will answer yes. The resource person now asks why is it so? People will usually point to the low price of paddy. The Resource Person should not allow the discussion to end at this point. He/she should raise the issue of productivity and try to point out that agricultural income is not merely an issue of price alone but also of quantity produced per unit of land and labour. Discussion would then move to the factors affecting the productivity of the crop: technical aspects such as irrigation, seeds, and agricultural implements and also organisational aspects including labour relations, water and land management. The cultivators present would be the best people to identify the vital local factors that may hold the key to enhancing the productivity of the crop. In other words the Grama sabha discussion is an attempt to draw upon the life experience of the people.

The first part of the questionnaire consists of a series of questions to elicit quantitative and qualitative information from participants. To the example with respect to agriculture sector, information was elicited regarding wage rates, soil fertility, the availability of irrigation water, etc. The data so collected can supplement official statistics, A modified version of the semi-

5

structured questionnaire that was used in Kerala for the grama sabha group for agriculture and irrigation is given below. Similar set of questions may be prepared for each sector according to the local conditions.

Model Questionnaire:

Agriculture and Irrigation.

Part A:

1. What are the types of land terrain/land form that we have in our ward? (High land, undulating hills, valley, coastal plain, marshy land, forest)

2. What is the share of each type of land in the total land area of the ward? 3. What are the main types of soil in each type of land? (Red soil, clay, sand etc.) 4. What is the quality / fertility of each type of soil? 5. Which are the canals flowing through our ward? 6. Normally, what is the period (months) in which water will be available in these canals? 7. Which are the places in the ward where there are cross bars across these canals? 8. How many ponds are there in the village? Private ? Public? How many irrigation wells are

there? 9. Which are the areas affected by water-logging? Is it a new phenomenon? What are the

reasons? 10. What are our main crops? What is the normal cropping pattern of the paddy fields? (eg.

Paddy-Pubes-Vegetables, Paddy-vegetables-Fallow, Paddy-Ginger etc.) In garden lands? 11. How many pump sets are there? Tractors? Tillers? Sprayers? 12. If there are waste lands in the ward, where are they located? 13. Who is the largest land owner? How many acres of land does he have? How many land

owners are there with more than 5 hectares? 1-5 five hectares? No of landless families? 13. What are the wage rates of agricultural labourers? For male/female and different types

of jobs?

Part B:

\. What has been the impact of land reforms? Percentage of households that received land?

Is there surplus land in the area for distribution? 2. What are the crops the cultivation of which is expanding? Which are the crops shrinking

in areas? 3. Has the area of paddy field shrunk from what it was 10 years ago? If so, by how much?

What are the reasons for this shrinkage? 4. Which are the areas where each of the crops perform badly? 5. What is the average yield of each of the main crops of the ward? What is the maximum

yield? 6. If the yield is low, is there any particular reason for that? 7. What has been the major change in the cultivation practices of different crops in the last

few decades? 8. Is informal lease arrangement prevalent? How important is it? In which crops? What is

the lease rate? 9. What are the major diseases affecting the crops in the ward?

6

10. What types of fertilisers and pesticides are used now? Is the use of bio-fertilisers and bio- pesticides practised? 11. Are there any other crop, which can be grown in the area more profitably? 12. Which are the areas where sufficient water is not available for cultivation? 13. Does the ward get adequate services from Krishi Bhavan? What are the major agricultural

schemes that are being implemented by the government? How effective arc they? 14. Which are the agriculture co-operative that are functioning? Are they effective? How

can they be improved? 15. Are there sufficient number of farm-labourers available? What are the types of job that

women labourers do? 16. Where are the agricultural produces of the ward marketed? Who are the middlemen? Do

they indulge in unfair trade practices? 17. Which are the areas where digging of new ponds is feasible? Which are the new drainage

or irrigation channels required? 18. How many households are there in the ward, which are entirely dependent on agricultural

income? What are the agrarian activities that women do in the house? 19. The fanner himself can take many steps for improving agriculture. But some may be

undertaken by the community.. What are they? 20. What are the measures that farmers can undertake collectively? What help is required to be

provided by the panchayat? 21. There would not be sufficient money to fulfil all the demands- Then what are the

improvements demanded, in the order of priority, that can be met with the available funds? A person must be assigned the task of taking detailed minutes of the conclusions reached by the discussions. These reports have to be read in the plenary session. If there are more than one grama sabha in the grama panchayat the reports from each grama sabha may be consolidated sector wise. The consolidated report can be made at a workshop of the reporters of the grama sabha discussion groups.

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Chapter 7

DATA BASE India is among the few developing countries which can lay claim to having well developed statistical system. A major weakness of the Indian database, which is becoming increasingly conspicuous in the context of the renewed efforts at decentralisation in the country, is its near total insensitivity to the requirements of planning from below. The system which makes readily available time series or time point data on a wide variety of economic variables and other factors relevant to development planning, at the national level, and to a lesser extent at the level of states, has very little to offer to the panchayats and municipalities in their endeavour to make the local development plans on their-own.

The reasons for the above bias are not far to seek. The data management practices and institutions in the country were evolved to suit the requirements of highly centralised systems of administration and planning. Indeed, most of the national level data are ultimately collected from the localities. But the centralised systems of planning and governance do not require that these data be made available in printed form at the local level. The administrative offices of the line departments in every locality act as independent units related only to their respective department hierarchies. The information available in the files and registers of each department would be sufficient for their own day-to-day operations and would not require information from other departments. But the comprehensive area plan, which the People's Planning is attempting to draw up, requires comprehensive database for every locality-. Why not collate the unpublished secondary data available in the various registers and files of the local level government departmental offices and generate a database that can be used for the Plan Campaign?

An alternative that may be suggested is a socio-economic census of the panchayat. We are not advising such an exercise for the time being because the census data collection and analysis might prove to be too time consuming. Further, the soci-economic data normally collected through a census would not provide sufficient information on various aspects of developmental activities that are required for planning. The basic information on the households generated through the census would have to be complemented with the available secondary data.

1

The secondary data collection involves the following four steps:

A field enquiry regarding the various registers and records that are being maintained in the different offices and those that provide relatively more reliable information.

• Preparation of a data collection format (i.e office data format) corresponding to the format of the relevant registers maintained in the different government offices. A government order may be issued binding the officials to fill up the relevant data format related to their office and supply the same to the panchayat.

• The data from different sources on the same phenomenon may be crosschecked with each other or with the data collected from the Grama Sabhas. The data has also got to be crosschecked with key informants including government officials of the concerned offices and, if necessary modified after discussion among key resource persons. A protocol for undertaking the above verification process in a uniform manner in different panchayats may be drawn up.

• Identification of relevant data for the local level planning and preparation of a data format for collating the same from the office data formats. Trained resource persons may undertake this final transfer of the data.

We are not attempting a comprehensive listing of the registers available in each of the local offices. Obviously, the type of registers and the quality of information would change from state to state. We shall briefly touch upon the major sources of information with reference to the local government offices in the state of Kerala.

The most important data source is the panchayat office itself. Of the nearly hundred registers and statements that that are to be maintained at the panchayat office, nineteen different statements and registers that contain relevant information have been identified. The Annual Administration Report would provide a number of key general information of the panchayat. There are registers for institutions, roads, minor irrigation, ponds and wells, traders, water-tap, etc. The Building Tax Register provide information on not only the number, but also the types of buildings. The reliability of the demographic data is open to serious question. Data on panchayat finance are also readily available.

The next most important source of information is the village office. In most cases panchayats and villages are not co-terminus. Therefore adjustments are necessary to generate panchayat data. The most important document of the village is the past Settlement Registers which provide remarkable level of information on land quality and ownership, and even broad cropping pattern.

2

The Basic Data Register provides information regarding present land ownership pattern. Besides

these basic records, there are a number of temporary registers, such as the register for public land,

and registers for special purposes such as collection of plantation tax, irrigation cess etc. Registers

of various pension distributed by the revenue department is also available at the village level. One

of the most vital documents of the village office is the revenue survey or the cadastral map.

Next in order of importance comes the Krishi Bhavan. The key document at this office is the

Basic Data Register which gives estimates of land use, cropping pattern and productivity, details

of irrigation and certain facilities of importance to agriculture. Krishi Bhavan also keeps records

of various subsidies and agricultural programmes carried out by them, which may contain useful

information.

The veterinary hospital can provide details regarding the morbidity pattern insemination and binn

which provides useful complementary data to the benchmark information available from the live

stock census.

The primary health care centre is the key source for health statistics. The Family Health Register contains, apart from general information about every household, information regarding

sanitation, drinking water etc that can have bearing on the health. It is also possible to get the broad

morbidity pattern and incidence of epidemics from the Communicable Disease Register and

the Patients Register. Records regarding family welfare activities are also maintained in the

PHCs. The records maintained at the Anganawadis under the Social Welfare Department also

provide very useful information regarding the mothers and children.

Certain general statements regarding number of schools, students and teachers may be obtained

from the records of panchayat. However, the main body of educational data necessary for a local

level programme for quality improvement has to be taken from various registers kept in each of

the schools, such as for admissions, removal and attendance, facilities and equipment of the

schools and records of PTA. SSLC duplicate register provides the annual results of school final

exams. Extra-curricular activities can be taken from the Log Book.

The most important data source regarding the poor is the IRDP register available in the block

offices and the village level extension offices. The details of the beneficiaries under various poverty

alleviation programmes implemented by the Rural Development Department are also

3

available with BDO and VEOs. Data regarding the co-operatives and financial institutions have to be collected and collated at the panchayat level. The service area reports of the banks is another useful document that has to consulted. The Intent form at the ration shop provides details regarding the public distribution.

There is severe dearth of information regarding energy and industrial sectors. Apart from the

Institutional Register at the Gram Panchayat, there is no readily available source of information on

industry. The Service Connection Registers and other registers kept at Electrical Section

Offices will provide the number of consumers by type and the pending application for connection

registrations. Regarding domestic energy use, very little information is possible. Minor irrigation

details can be had from the Estimate Registers of the Irrigation department. The Soil

Survey Department has scientifically classified various soils in a large number of panchayats.

4

Chart 7.1 Local Government Offices in Kerala and Registers from which Secondary Data wore Collected

Government Name of Selected Registers Nature of Data

Office Panchayat Office Annual Administration Report • Accurate information on (23 Registers) Annual Financial Statement the following:

Demand Collection Balance Statement Receipts and Expenditure of the Budget Estimate panchayat- Number of Roads by Building Tax Assessment Register type and length- Number of Professional Tax Assessment Register public taps, ponds and wells by Institution Register ward- Number of street lamps- Road Register Number of buildings and Minor Irrigation Register houses-Number of voters Well, Pond Register Puramboke Register • Information regarding type Birth / Death Register of buildings-types of

Marriage Register institutions and traders: Grant Register • The demographic data is

Special Grant Register unreliable. Auction Register Register for Grants from other department D & O Register Traders list Register Street Lamp Register Water Tap Register Still Birth Register

Settlement Register • Accurate InformationVillage Office Basic Tax Register Land ownership by patta-land (14 Registers) Temporary Registers : transactions-land distributed Puramboke Register under land reforms- Land area

Krishi Bhavan (8 Registers)

Krishi Bhavan (8 Registers)

Veterinary Hospital (6 Registers)

Veterinary Hospital (6 Registers)

Soil Conservation Soil Conservation Office Office (8 Registers) (8 Registers)

Register for Trees in Govt. Land Register for Trees in Govt. Land Plantation Register Plantation Register

Land Transfer Register Land Transfer Register Register for Land that can be Assigned Register for Land that can be Assigned

Ayacut Register Ayacut Register Land Acquisition Register Land Acquisition Register

Land Reform Register Land Reform Register Pension Register Pension Register

Litho Map Register Litho Map Register Basic Data Register: Basic Data Register:

Land Register Land Register Crop Register Crop Register

List of Fertilizer and List of Fertilizer and Pesticides sales depot Register Pesticides sales depot Register

Irrigation Register Irrigation Register Seed/Seedling Distribution Register Seed/Seedling Distribution Register

Mini-kit Distribution Register Mini-kit Distribution Register Integrated Coconut Dev Integrated Coconut Dev

Program Register Program Register Subsidy Distribution Register Subsidy Distribution Register

Paddy subsidy Distribution Register Paddy subsidy Distribution Register Natural Calamity Register Natural Calamity Register

Soil Sample Survey Register Soil Sample Survey Register Out patient Register Out patient Register

Artificial Insimination Register Artificial Insimination Register Birth Register Birth Register

Innoculation Register Innoculation Register Medical Stock Register Medical Stock Register

Sample examination Register Sample examination Register

Maps Registers for 8 types of Schemes

related watershedDevelopmem,

Maps Registers for 8 types of Schemes

related watershedDevelopmem,

Land slide protection, Reclamation of water log area, Western Ghat Development Programme etc,,

Land slide protection, Reclamation of water log area, Western Ghat Development Programme etc,,

and puramboke land and puramboke land • Broad land use-

cropping pattern-extent of irrigated land.

• Broad land use-cropping pattern-extent of irrigated land.

• Revenue land classification • Revenue land classification

• Informed estimates on the • Informed estimates on the

following: following: Cropping pattern-production and productivity-Fertiliser and pesticide use-Soil quality-Irrigation-Distribution of farmers by land size

Cropping pattern-production and productivity-Fertiliser and pesticide use-Soil quality-Irrigation-Distribution of farmers by land size

• General morbidity pattern • General morbidity pattern • Trends in

artificial insemination

• Trends in artificial insemination

• Data from live stock census.

• Data from live stock census.

• Soil quality • Soil quality • Watersheds • Watersheds • Environmental

problem areas

• Environmental problem areas

Minor Irrigartion

Minor Irrigartion Office Office (4 Registers) (4 Registers)

Estimate Register Estimate Register Progress Report

Register Progress Report

Register Action Plan

Register Action Plan

Register Map Register Map Register

Irrigation schemes and Ayacut areas Irrigated area

Irrigation schemes and Ayacut areas Irrigated area

5

5

Primary Health Care Centre (7 Registers)

Administrative Report Register Family Health Register

Communicable Disease Register Inpatient, Outpatient, Disease Classification

Register Eligible Couple Register

Sterilization Register Anti-natal and Infant Register

Micro planning Report Register

General morbidity pattern Prevalence of family planning methods

Anganawadies (8 Registers)

Child Welfare Health Card

Growth Chart Register Immunisation Register

Reference Slip

Nutrition status of children pregnant women and lactating mothers-extent of immunisation

6

School Offices (19 Registers)

Survey Register Food Stock Register SNP Register for Pregnant and Lactating

Women Diary-Visitors Register

Admission Register Attendance Register for Students & Teachers

TC Register Removal Register

Staff Statement Fixation Statement Register

Furniture Register Laboratory Stock Register

Library Stock and Distribution Register

Mother Gathering Register PTA minutes Report Register Progress card, Mark Register

SSLC Registers Mid-day meal Register

Economic Benefit Register Allotment / Expenditure statement

Register Stagnation Register

SC/ST/OBC Registers Log Book

• Number of teachers and students-education facilities-standard of education by exam results-wastage and drop out.

Electricity Office (7 Registers)

Service Connection Register Street Light Connection

Register Minimum Guarantee Register Tribal Colony Electrification

Register Out of Turn Priority Register

Own Your Electric Connection Register

Electricity Map

• Extent of electrification

Block Office (13 Registers)

Civil Supplies Shop

IRDP Survey Register List of TRYSM Trainees Social Forestry Register

List of DWCRA Units List of beneficiaries of

house , latrines, RAP etc.

Ration Card Intent Forms

• Incidence of poverty and list of poor households..

Ration off-take

7

The discussions so far have been with reference to unpublished information available in the different government offices. But there are a few but vital sources of published secondary data. The most important among them are the census reports. Though the presently available census data is with reference to 1991, they still would provide panchayat level basic demographic, literacy and broad occupational information. From the National Informatic Centre, Panchayat Primary Census may be obtained. 43 items of information are available: area, number of households, total population by sex, children below six, population of SC& ST, literacy, main and marginal workers and non workers by sex etc. It also provides broad industrial classification of work force. For the previous census periods, comparable data may be collated from District Census handbooks. Similarly Live Stock Census that are organised every five years provide information regarding the number and breed of various types of domestic animals. Attention must also be given to the possibilities of panchayat level information being provided by institutions like Land Use Board and Government Statistical Agencies. Thus for example, in Kerala Land Use Board has Land Resources of Kerala, providing vital information regarding land resources, desegregated at block and in some cases at panchayat level. The department of Economics and Statistics has also brought out Panchayat Level Statistics for each district.

Socio Economic Census Even though, we are not advocating a socio-economic census as part of the Campaign, if the

conditions are favourable a benchmark survey may be undertaken. The objective of the survey is to

create a list of all the households and collect certain key demographic and socio-economic data. It

is not an attempt to create a comprehensive database on all aspects of the village economy. In

fact such attempts are generally not fruitful as inmost cases most of the information are not processed

and over time are wasted. The census survey that we are recommending can be used as a frame to

select samples for detailed collection of data as and when the need rises. A model questionnaire is

given below. The questionnaire may be further simplified by avoiding the questions regarding

income.

The following points may be noted with respect to the organisation of the census. Firstly, the volunteers who actually conduct the survey must be given proper training. The training programme must explain to the volunteers the process of People's Planning and the significance of the data being collected, the concepts and codes used in the questionnaire, interview techniques and also norms of behaviour during the interview, A pilot survey may be organised at the end of the training for the squads of volunteers. Secondly, after each day's interview the squad members should 8

sit down together, go through each questionnaire and verify that all are properly filled. Thirdly, the data must be processed at the earliest. A tabulation camp of selected volunteers who participated in the survey may be organised to process the data.

Geographical Information Without a comprehensive understanding of the local geography and the specific features of the land and water resources, there can be no area planning worth the name. Given the undulating terrain of states like Tripura, a typical village might have 4 to 5 eco-zones within its boundaries: hillcrest and plateau of hills, slopes of varying steepness, valleys, plains, marshes, and so on. In the long run, agricultural planning would have to adopt a systems approach using an integrated intervention specific for each micro eco-zone. How could the campaign initiate a move towards such a path of more sustainable development?

The Panchayat Level Resource Mapping program is the ideal participatory methodology for the study of local geography and resources. In the place of common questionnaire survey, People's Resource Mapping Programme attempts to gather information on the land, water and vegetation from each plot of land on a village revenue map by trained volunteers. Maps are more user friendly than questionnaires and give an immediate visual display of the relevant information which ordinary people can readily understand. Since local volunteers collect the data and the collection of data involves direct interaction with every household, whose curiosity is aroused by the maps, the data collection process itself gets transformed into awareness Campaign of local land and water resources.

Using the above information and also the contour maps prepared by Survey of India, maps of the village depicting land form, surface material, ground water potential, soil depth, cropping pattern, man made assets and so on are prepared. Employing the method of map overlays, an integrated map identifying the different eco-zones and environmental problems is also prepared. The resource maps have proved to be of immense use for local level planning. But just as in the case of primary economic census, if it is not possible to attempt resource mapping within the time frame of People's Planning Campaign, an alternative lies in adapting certain Rapid Appraisal Techniques for the study of local geography.

Rapid Rural Appraisal (RRA) is a process to le&rn about rural conditions in an intensive, iterative, and expeditious manner. RRA relies on small interdisciplinary teams that employ a range of methods to understand rural conditions by tapping the knowledge of local inhabitants and combining this

9

knowledge with modern scientific expertise. RRA has been widely used in international development to support project formulation and evaluation by outside experts, especially for foreign donors. Participatory Rural Appraisal (PRA) employs the techniques of RRA, but with emphasis on the participation of the local population. It is an attempt to put together the knowledge of the local people and does not require the presence of outside experts. The transect walk, a method widely employed in RRA and PRA, for making a study of the local geography and natural resources may be adapted for our requirement. The procedure involves five steps:

1. Formation of appraisal teams of 6-12 persons is the first step. More than one team could be formed if the level of interest is great enough. A bigger group may become unmanageable and a small team may find it difficult to observe all the details and record them. It is ideal if the team consists of different experts like an agricultural expert, teacher, civil engineer, a knowledgeable fanner, health worker, elected panchayat member and so on.

2. The next step is to the line of the transect walk. A meeting of all the team members and

knowledgeable people from the different localities may be organised for this purpose. The

basic requirement is a large-scale outline map of the panchayat. Through collective

discussions, the meeting is to draw up a social map of the panchayat, giving broad

geographical features, particularly land form. Once the social map is completed, a transect

line could be chosen that would cover all the major geographical regions identified by land

form and important types of land use. If necessary, more than one transects line can be

selected.

3. Before the actual transect walk is undertaken, the team must decide upon the various types of information that have to be collected during the walk. Each team member should be assigned the collection of a particular type of information. Following are the important features to be looked into:-

− Geographical features / land form such as hill crest, slopes, valleys etc. − Soil type and quality − General vegetation, cropping pattern and productivity − Water resources and water quality − Settlement density − Specific environment problems

10

4. It is advised that each member carry a rough geographical sketch of the transect, outlining the land form and the major characteristics. Each member should also carry his/her own notebook to enter observations. One person may be entrusted to measure the distance of the transect so that if any one wants to mark any feature at a specific point, it can be done on an approximate scale. The number of footsteps during a steady walk can do for measuring the distance.

Once the' walk starts the team members should concentrate on observation and documentation. If the team feels a side tracking is necessary to have more detailed enquiry on any specific aspect, it may be done and after it is over, the walk may be resumed along the transect line. When a particular geographical feature ends, and the next one starts, the entire team should stop and complete the documentation of the previous zone.

5. The final step is integration of the information collected by the team members into a comprehensive picture of the geography of the panchayat. The basic unit of eco-zone analysis is the land form. In each land form such as steep slope, marsh, etc. the soil and water characteristics, the utilisation of these resources, and the cropping patterns, productivity and so on and environmental problems generated by land and water use are collected. In this manner the village comes to be divided into a number of micro-eco-zones with their distinctive land and water features, use patterns, and problems.

MODEL QUESTIONNAIRE FOR SOCIO-ECONOMIC CENSUS

1. Name of the Head of Household :

2. Address

3. Religion (•/)

'

Hindu Christian Muslim

Others

4. Caste (b) SC ST Backward Others

11

5, Particulars of Household Members:

Sl No

Name Sex

(M/F)

Age Marital Status

Relation to Head of HH

Educa ton

Occup ation

Days of employ ment

Monthly Income

Codes

A.

B.

C.

Marital Status: l=Unmarried, 2=Married, 3=Separated, 4=Divorced, 5=Widowed

Education: l=illiterate, 2=literate without formal schooling, 3=primary, 4=upper primary,

5=highschool, 6=higher secondary, 7=graduate, 8=post graduate, 9=professional, I0=technical certificates, 1 l=technical diplomas.

Occupation : l=agriculture labourer, 2=cultivator, 3=fishermen/women, 4=animal husbandry, 5=forestry, 6=quarrying and mining, 7-9=household industries, lO-lS^non-household industry, 14=trade, 15=government employee 16=teachers, 17-20=other service sectors, 21-student, 22=other non-workers, 23=unemployed,

6. Ownership of Land (in hectare)

Type of Land

Paddy Field Other Land

Irrigated Non-irrigated

Irrigated Non-irrigated

Total

Own LandLeased inLeased out Operational

7. Annual Income from Land (in

Rs)

Paddy _______

Others_____________

90

12

8. Ownership (No. of)

Bullocks GoatsBuffaloes Cows Pigs Chicken Ducks

9. Average annual income (in Rs) from Milch animals: _________________

Poultry:__________________________

10. Other Assets (b)

Buildings Commercial Vehicles

Private VehiclesMotorcycleCyclesFridgeTelevisionPhone

11. Income from other assets and other sources (in Rs)

12. Type of housing: (b)

Roof Terrace Thatched Sheet Others

Wall Leaf Mud Brick Others

Floor Mud Cement Mosaic Others

Area 250 sq ft 250-500 sq ft 500-1000 sq ft.

1000> sq.ft.

13. Is the house electrified? Yes/No

14. Cooking Fuel:(b)

13

Fire Wood Cow Dung Cake Coal Kerosene Cooking Gas Gobar GasElectricityOthers

15. Latrine facility: (

Own Common Open Space 16. Source of drinking water

Type Public Private Centralised Water Supply WellBore Well/Tube WellPond Spring River / Nala Others

17. Details of Handicapped Persons, if any

14

Chapter 8

PANCHAYAT DEVELOPMENT REPORT

Preparation of the Panchayat Development Report (PDR) is the focal point of the first stage of People's Planning. Felt needs of the people and local problems are identified at the grama sabhas. But deliberations at the grama sabhas would be dominated by the subjective aspirations of the local people. Before a plan can be prepared to meet these aspirations, it is important to make a deeper and more objective assessment of the problems that had been identified so that solutions might be drawn up. An objective assessment of resources both material and human is equally' important to understand the resource potential and constraints so that rational choices can be made. In the last chapter we have discussed a number of participatory methods for creation of a fairly comprehensive information base for the panchayat. It is important to integrate the traditional wisdom of the people with the theory and practice of modern science. The PDR should be the product of such a blending and lay down a perspective for the comprehensive development of the panchayat.

What is to be the structure and content of the PDR? There are competing models for village studies. Indeed, India is one of the 3rd world countries with a rich tradition of village studies. The village studies in India started with the colonial conquest. The periodic revenue settlements were preceded by very detailed village level inquiries into agrarian conditions and revenue potential. In contrast to the official and academic inquiries, the national independence movement brought forth a new crop of village inquires. These were intended to bring out the devastating impact of imperialist exploitation and map out the possibilities of village reconstruction.

The inauguration of planned development after the attainment of independence opened a floodgate of village studies and inquiries. Special agro-economic research centers were set up. A separate division was set up within the National Planning Commission to conduct evaluation of rural development programs. These village studies, mainly from the perspective of planning requirements, gave birth to a style of village inquiries that was dominated by various types of statistics and quantitative analysis. Soon there was a reaction to this trend from sociologists and anthropologists. They enquired into the social and caste structures, which might have a major

1

influence on the development process. The 60s and 70s witnessed a large number of Political economists who sought to understand the mode of production and its dynamics.

Instead of imitating any of the above models, an attempt is made here to develop guidelines for

preparing of PDR that would respond to the requirements of local level planning. Since the

ultimate aim of the development reports was to initiate discussions to prepare the economic

development projects, economic aspects will have to receive special emphasis. Each development

sector has to be analysed and the potential for development identified. At the same time, the

social aspects of the economic processes are not to be ignored. Cultural, gender and

organisational aspects of development have to be corporated into the analysis. Further, a

historical approach has to be adopted. And finally, the village economy and society has to be

situated within the local geographical and ecological setting.

Each development report is to have two parts.

Part I is to have three chapters which are general in nature: 1. Introduction to the panchayat and People's Planning 2. Economic and Social History. 3. Geo-Physical Conditions and Resources

Part II will consist of 15 chapters giving the present status, problems and development prospects

of each sector.

1. Agriculture and irrigation 2. Animal husbandry 3. Fisheries 4. Forestry 5. Industry 6. Energy 7. Housing 8. Transport 9. Education 10. Health 11. Drinking water and sanitation 12. Women and Development 13. Welfare of SC/ST 14. Resource mobilization 15. Culture

2

Preparation

The task force constituted by the panchayat has to ensure that certain essential preparatory works are completed before actual writing of the development reports can begin.

1. Consolidation of Grama Sabha reports 2. Review of the ongoing schemes 3. Collection of secondary statistical data 4. Geographical study of the area 5. Documenting local history.

Grama Sabha Report is to be prepared on the basis of the minutes of the meetings of different subject groups. From this report we shall get the following three sets of information for each development sector, as stated by the people, (a) problems and needs (b) selected data (c) an analysis of the problems and suggestions for solutions. If there are more than one grama sabha in the panchayat the minutes of the different grama sabhas will have to be consolidated into a single report.

Review reports on the ongoing schemes are to be prepared by the concerned departmental officials. The report should evaluate the schemes / programmes already being implemented through the departmental agencies located within the Panchayat/Municipal area. It should also contain details such as schemes completed during the Eighth Five Year Plan, schemes presently running and their present status of implementation, the problems and future prospects.

Details and method of collection of secondary statistics and methodology for study of local

geography have already been explained. The documentation of local history has to depend upon

four main sources: (a) oral traditions like folk songs (b) discussions with the elders, (c) print-

media like news papers and books and (d) other sources like old records, manuscripts, stone-

carvings, archaeological evidences etc.

A simple method adapted, from the PRA technique of time line may be suggested for constructing local history from the knowledge of elderly members of the community. A meeting of elders may be organised in the local library or school where each elder would be asked the ten most memorable events of their lifetime. A frequency distribution would be made of these events as a way of identifying the most important events. These events are considered to be the most

3

important in the collective memory of the village. The local history was to be woven around the why, who, and how of these events.

The task of preparing different chapters may be assigned to different individuals or groups of

persons and finalised after presentations in a small workshop.

Introduction The introductory chapter should not exceed more than two or three pages. It should open with an

explanation of the context of preparation of PDR. The importance of decentralisation and the

significance of People's Planning may be explained, A brief resume of the People's Campaign

activities focussing on people's participation should also be given.

If possible, an outline map of the Panchayat should be attached before Introduction. General information about the Panchayat such as name of revenue villages covered, Block Panchayat division, Taluk, District, Assembly constituency, area, population, number of wards, names of the President and Vice-President and members should be given. Information on administrative set up such as changes made in the administrative boundaries since the formation of the panchayat, existing boundaries, details of the various departmental offices located within the panchayat area etc. should also be included in the introductory chapter.

Social and Economic History As we have noted, the development problems are to be studied in a historical perspective. Local

history does not have to imply going back hundreds of years. It is only necessary to capture the

major events of the first decades of the 20th century when most parts of the country experienced a

surge of caste reform and national independence activities. The following elements are to be

brought out: • The influence of the independence movement and major events that occurred in the

locality in connection with it. • The struggles against caste oppression and for social reforms, and the consequences in

social life that result from those struggles. • Formation of trade unions, peasant associations, and other mass organizations and major

events in the growth of these mass movements. • The stunted transformation of agrarian relations and its consequences, industrialisation or

lack of industrialisation. • Development of social sectors such as health, education, housing and unfulfilled

expectations.

4

At the conclusion of the history chapter, the basic developmental challenges before the panchayat are to be posed in general terms. Why is the expansion of production and quality of services not rising to the expectations? Why is unemployment increasing and poverty persisting? Why are the women continuing to be discriminated? The message of the chapter should be that these challenges can be met by drawing inspiration from the panchayat's own history of public actions for civil and political rights and social improvement. An attempt should be made to link the traditions of mass mobilisation of the past or community solidarity.

Geo-Physical conditions and Resources

The following aspects must be systematically discussed:

1. Geography: general topography of the village, hills, slopes, valleys, coastal plains, marshy lands etc.

2. Climate: seasons, average rain-fall, atmospheric temperature, directions of wind etc. 3. Water Resources: rivers, canals, tanks, ground water potential, water-logging etc. 4. Soil: types, composition, fertility, drainage, etc. 5. Land-utilisation: existing pattern. 6. Bio-wealth: details of natural vegetation, existing crops and animal wealth. 7. Human resources: total population, rate of growth of population, skills and educational

levels and social and religious characteristics.

Sector wise Development Analysis

Sector wise analysis constitutes the core of the PDR. The analysis consists of four parts:

• Changes in the sector since independence and analysis of the present status, if possible

on a quantitative basis.

• A review of development schemes recently completed or currently being implemented in

the sector.

• A list of the development problems to be solved in the sector.

• A list of the solutions or proposals for projects that could be taken up within the next 5

to 10 years within the sector.

No attempt is made here to elaborate on the detailed guidelines for preparing reports in each sector. However, as an illustration, the case of the agriculture sector is taken up. Other sectors are only briefly touched upon in the text. The key elements of the analytical approach for each sector are presented in chart form as annexure to this chapter.

5

An important point is that the analysis of the sector has to begin with a brief historical narrative of its evolution. The general approach is that through a historical analysis, contemporary problems could be more effectively identified and explained. Therefore, the chapter on agriculture should begin with a discussion of the agrarian evolution of the village during the present century. The information available in the Settlement Report of one of the early decades in the 20th century could be utilized for this purpose. Changes that occurred in the following four aspects have to be commented on:

• Expansion of area under cultivation. • Technological changes in tools and cultural practices. • Changes in agrarian relations • Introduction of new crops and changes in the cropping pattern.

Once the contemporary cropping pattern is presented, an assessment is to be made of the

productivity of each crop. It is more likely that the productivity of most crops is below the

experimentally proven potential or even national average. The analysis will shift to reasons for

non-utilisation of the full potential of the agricultural sector as indicated by cultivable wasteland

and low productivity. The factors responsible for low productivity should be discussed under four

headings. The secondary data and the grama sabha discussions are to be the basic sources for the

analysis.

• Technology such as irrigation, fertilizer, diseases, seed, equipment.

• .Economic factors such as marketing, input / output prices, credit and processing

• Organisational aspects such as land concentration, share cropping, landlessness, wage

relations, wages rates and cooperatives.

• Environmental factors such as land degradation, soil erosion, salinity, drought, water

logging, deforestation etc.

Similarly, the discussion in the animal husbandry sector was to start from a comparison of an earlier bovine census with a recent one. Settlement Reports will provide data for earlier decades of the century. The changes that occurred in the intervening period with regard to (a) total population of different types of animals and poultry and (b) and the composition of breed are to be identified and explanations suggested. Their impact on production, on food availability and income may be discussed. The existing situation with regards to factors related to input and

6

output, organisational aspects such as co-operatives and scale of production and veterinary facilities may be discussed.

The fisheries sector is undergoing rapid commercialisation in the recent decades. Changes that have occurred in the organisation, technology and fishing practices must be documented. An important focus of the analysis has to be on the impact of commercialisation on resource availability and rights of traditional fisher people. The market and credit structure are important issues. The marine fisheries and inland fisheries have to analysed separately. The standard of living of the fisher folk also should be taken up.

The transition or lack of transition from traditional to modem industry is the opening theme of the chapter on industrial sector. The traditional cottage, small and large-scale industries are to be first discussed. The emergence of modern factories including the small scale sector is to be presented historically. The problems of each industrial sector with relation to input and output markets are to be analysed.

The analysis in the energy sector should not be confined to electrification. Domestic energy should be the main focus. The main source of energy, their trend in availability and cost should be discussed. An assessment of the efficiency of energy utilisation may be attempted.

There must be a discussion of the traditional architecture and housing conditions for different sections of the people. What are the common materials that are used for housing, their availabiltiy and cost? An assessment of housing problem in terms of certain standards must be made. What percentage of the houses will have to be rebuilt? What percentage upgraded or repaired?

It is difficult to get any estimate of vital statistics with respect to health at the panchayat level. Therefore, the discussion will have to be more descriptive and focus on morbidity pattern. The present morbidity pattern, perceptions of change over time and the causes for common diseases. The traditional medical system should be documented and the public health facilities evaluated.

Drinking water and sanitation have close inter-sectoral linkages to health. The sources of drinking water, its availability across seasons and quality are to be taken up. Have these aspects undergone significant changes over time? A critical evaluation of public drinking water systems

7

should also be made. The latrine facilities, waste disposal arrangements, drainage and prevalence of mosquitoes and flies must be taken up while discussing sanitation.

After a brief discussion of traditional system of education, entry of modern education into the village and its expansion should be discussed. The focus of the chapter, however, should be on the present enrolment rate, drop out problem, and quality of education. The existing educational facility should be critically evaluated. The present stock of illiterates and their characteristics also must be analysed.

The changes that have occurred in the settlement pattern, occupations and

educational level of dalits must be documented. Their social disabilities and economic

backwardness must be discussed. If there has not been any significant improvement in the

standard of living the reasons must be probed.

The sex ratio as revealed by the census may be the starting point for gender analysis. Why do more women die than men? The morbidity pattern of women and gender discrimination in health care is an obvious follow up point. The slow progress in female education must be discussed. The differences in male and female work participation, occupational pattern and wage and service conditions must be discussed. A description of the pattern of domestic duties must also be made.

After a brief history of each of the co-operative in the village their role in the village economy must be evaluated. A financial analysis of their performance is also required. The chapter on resource mobilisation largely deals with the finances of the grama panchayat. A critical review of the various items of tax and non-tax revenues must be made by analysing their trend over time. Similarly the trends in expenditure on various heads of account also may be given. A brief discussion on the service area credit plan also may be included in this chapter.

Development Seminar The PDR is the basic document for discussion at the development seminar to be organised at the end of the first stage of People's Campaign. It is at the seminar that the proposals given in the PDR are finalised. Majority of the delegates are to be elected from the subject groups of the grama sabhas with equal representation for men and women. Besides the representatives of the grama sabhas, all the important local level officers of the government are to be invited. The

8

panchayat executive committee also has the right to invite any expert from within or outside the panchayat who they feel can make contributions to the discussions.

As in the case of grama sabhas, detailed preparations have to be made for the organisation of the seminar. Public meeting, development quizzes for children, padayathras, street theatre and such other propaganda measures must be utilised to make the development seminar the focus of public attention. Separate conference of the government officials must be convened. Task force members must be assigned the duty of making the initial presentation in the group discussions at the seminar.

A major proportion of the seminar time must be devoted to sector-wise group discussions, to facilitate in-depth analysis of the development reports. A model timetable may be prepared. Of the 1 hour devoted to the opening session, the main speech is to be that of the panchayat president. His/her speech should include a review of the grama sabhas. The local MLA / one of the elected representatives of the higher level may also be invited to speak. Following this, the PDR may be formally presented to the delegates, by a resource person or by a panel of two or three resource persons, each presenting a separate part of the report. Copies of the report should be distributed to the delegates.

Once the report is presented, even before the lunch break, the seminar is to divide into discussion groups to consider the recommendations in the different sectors. Each group should have a chairperson to guide the discussion. A convenor should note the modifications to the recommendations as proposed by the group and present these modifications at the plenary session in the evening. The recommendations made by the groups are to be recorded as amendments to the PDR.

9

Chapter 9

PREPARATION OF PROJECTS

Project is the smallest component of a development activity, which can reasonably be analysed, planned and executed as an independent unit. Each project has a definite aim, a specified area of operation and a prescribed time limit for execution. So defined, project is distinct from scheme. Schemes are defined as development activities that are drawn up from above and implemented uniformly in all localities as per the norms and guidelines of the scheme. The People's Planning focuses on preparation of projects drawn up locally and not implementing schemes handed down from above. Even when schemes are undertaken as part of People's Planning, specific projects would have to be prepared as part of the local plan before they are implemented. For example, JRY (Jawahar Rozgar Yojana) is a scheme of the Central Government. It is implemented throughout India and continues year after year. But building a road within that rural employment scheme is a project. The road takes into consideration local conditions, is a small unit of the scheme, and should be implemented within a limited time period. Local projects can be part of a scheme or they can be independent of any scheme.

The individual projects are to be conceived with awareness of their forward and backward linkages so that maximum degree of overall integration can be achieved. To emphasise the importance of integrated approach, we may adopt yet another concept-programme. Programme is a combination of inter-linked projects, within a sector or across sectors, confirming to a specific objective. For example an integrated health programme might contain improvement of facilities at PHC, nutrition, sanitation, drinking water, occupational health and health education projects.

Project, as mentioned earlier, has a specified time frame. The time-frame of a typical project may be split into 5 identifiable activity stages, commonly known as project cycle:

Identification Preparation and analysis Appraisal Implementation

Evaluation In our case the first stage of project cycle has already been completed. The grama sabhas, participatory enquiries, Development Reports and development seminars have already provided every panchayat and municipality with a list of recommendations of what is to be done in each development sector. The next task is to prepare detailed project proposals to carry out these recommendations. The objectives have to be clearly defined, technical and financial details worked out, the impact assessed, and a monitoring system instituted to oversee the implementation. Task force/task forces constituted for the purpose by the local bodies may undertake these activities related to the second stage of project cycle. The stages of implementation and evaluation belong to the later phase of the People's Planning Campaign. The focus of the present chapter is on preparation of projects.

There are different ways of classifying projects. The simplest classification of a project is to

identify its development sector. The projects in different sectors may broadly be classified

into three; • projects in the productive sectors

• infrastructural projects

• service and welfare projects

Only in rare instances are the local bodies involved in directly productive projects. Most of the projects proposed are for infra-structural improvements to facilitate production such as irrigation, marketing, financial assistance, and credit. Local bodies also take up infrastructural projects such as roads, marketing complexes, drinking water, housing, and the like. The format for direct production projects would be different from the format for infra-structural projects. The type of financial analysis required to assess the viability of a productive sector project will be different from a purely infra-structural project. Service and welfare projects do not lend themselves to the kind of financial assessments needed for productive or infra-structural projects. But the unit cost of providing the service or welfare can be examined.

Projects may also be classified by their respective time frames. The financial and technical analysis of a long-term project will be very different from that of a short-term project. Projects may also be classified by the nature of the beneficiaries. Are the beneficiaries, individuals, households, or larger groups? The project proposal format would have to be

flexible enough to accommodate these many variations. Is it feasible to have a common

format? Or is it necessary to have a common format at all?

Preparing the project document is a method of self-study and the format a checklist of minimum components of an adequate project proposal. The project document is also necessary to make possible a scientific appraisal of the project by the District Planning Committee before the overall plan can be approved. Project documents are also necessary to seek assistance from financial institutions. Once discussed and approved, the project document becomes a guard against ad hoc and arbitrary actions by local authorities. Given the high level of financial autonomy proposed for the local bodies under People's Planning, detailed project proposals duly processed and approved are important instruments to achieve financial discipline.

There are many equally legitimate formats for preparing project reports. However, for the sake of

uniformity, we have prescribed that the project reports prepared under the Peoples' Plan

Programme should be in the following format.

1. Introduction 2. Objectives 3. Beneficiaries 4. Activities - Technical Analysis 5. Organisation

6. Financial analysis 7. Achievements 8. Monitoring

1. Introduction

By way of introduction, the necessity and relevance of the project may be explained. It must be made clear what are the local development problems that the project is meant to solve. All the facts presented in this section in justification of the project should be substantiated by relevant statistical data, which may be available in PDR. A reference also may be given as to the original source of the project idea such as discussions in the grama sabha, proposal in PDR, suggestion from seminar, resolution of the local body, success story of similar projects implemented outside and so on.

2. Objectives Objectives of the project should be clearly defined and each one must be numbered. As far as possible, the objectives should be defined in quantitative or measurable terms, instead of indicating them in broad terms. It may be useful that a list of units of measurement for physical targets in different sectors is prepared and circulated, so that the physical targets of similar projects are set in uniform units in all local bodies. Such uniformity would facilitate easier integration of the local plans.

3. Beneficiaries Criteria proposed to be followed in selecting the beneficiaries or benefiting areas should be explained in this section. It is seldom possible to bring the entire people or families of an area within the purview of a project. .Therefore, priorities will have to be laid down and beneficiary sections of the people, or families or localities selected according to criteria. Arbitrariness and nepotism during implementation can be avoided only if criteria for selection are included in the project and given wide publicity,

4. Technical Analysis Project being a set of inter-related and time-bound activities to reach a specified target, the exact nature, sequence and time frame of each of the project activities should be listed and explained. A mere listing of activities as above is not enough; each activity should be explained with reference to the technology that is proposed to be used. The choice of appropriate technology is an issue that we do not intend to take up in this brief discussion. We only wish to emphasise that there is a lot of scope in local level planning to take advantage of traditional knowledge and technologies.

We shall illustrate the intricacies of technical analysis with an illustration of one of the simplest production project possible-vegetable cultivation. Our reference is to one of the illustrious cases of successful project formulation in connection with the People's Campaign in Kerala. The vegetable cultivation project in Kanjikuzhi Panchayat, Aleppey district has provided a source of inspiration for similar projects all over Kerala. The objective of this project was to achieve self-reliance in vegetable production by expanding vegetable cultivation to all homesteads in the panchayat. Though apparently simple, the project involved a number of technological choices. What are the varieties of vegetable to be chosen for promotion? Certain traditional varieties native to the area rather than exotic types were selected. From where were the seeds to be collected? As far as possible, they were collected from the elite farmers and the rest from the

agricultural university. What type of fertilizer was to be used? Organic fertilizers like silt of ponds, water algae, chicken litter and cow dung were preferred to chemical fertilizer. What type of pesticides should be used? Instead of chemicals the panchayat decided to produce its own bio-pesticides.

Therefore, we find that a lot of technical decisions are involved even in simple agricultural projects. In case of industrial and other projects, decisions regarding technology would become more complicated. With respect to direct production projects a number of additional issues have to be considered such as the scale of production or operation. Normally, larger the scale of production, lower will be the unit cost. The scale of operation of the project is determined by factors such as size of investment, availability of inputs, nature of technology and size of the market. All these factors must be considered before deciding the size of the project. Another aspect that must be looked into is the availability of materials - plant and machinery, their spares and components, raw materials etc. Availability of labour and the level of their skills should also be explained. A statement of the marketing of the product must also be included.

In projects involving construction activities or factory production detailed technical design and drawings are required. When machinery is involved, specifications are also required. These requirements can be waived only if type designs are used such as for office buildings, houses, and the like. In the initial project report that is being prepared for inclusion of the plan, such details need not be insisted upon. But all such projects would require technical sanction from a competent authority. The detailed technical designs and specifications need to be produced only at the time of technical appraisal of the project proposal before technical sanction is granted.

The activities must be presented in a format with approximate time schedule for their implementation. Some projects are of long duration. What are the activities to be undertaken during the current year? What are the activities to be undertaken during the next year, and so on. Even in the case of projects that could be implemented within one year, it is necessary that project activities should be implemented in a time bound manner. For example, the time-activity chart of vegetable project in Kanjikuzhi is given below:

Format 9.1 Time Schedule of Activities in Vegetable Farming Project, Kanjikuzhi

Months SI. No

Functions J F M A M J J A S O N D

1. Awareness & Organisation 2. Training 3. Collection & Distribution

of Seeds

4. Farming festival 5. Collection & Distribution

of Fertilizers

6. Production & Distribution of Pesticides

7. Monitoring 8. Harvesting 9. Marketing

5. Organisation How to organise the activities discussed above? It should be made clear which are the agencies

involved in each of these activities and what exactly are their functional roles and responsibilities.

Occasionally, it may be necessary to form new institutions or organisations to implement the

project The organisational chart of the model vegetable project is given below:

Chart 9.1 G.Panchayat

Krishi Bhavan Panchayat Level Organising committe Marketing Society

Ward Level Organising Committee

Technical

Teams Neighbourhood Groups

Farmer

5. Financial analysis:

How much money will have to be invested to implement the project? Who will invest this

money? What should be the allocation to the project from the Panchayat/Municipal funds. What

would be its annual break-up? Answers to these questions should form the first part of economic

analysis.

Capital investments in projects are generally classified into two; fixed capital and working

capital. Land & building, plant and machinery and other fixed assets (eg. transport vehicles) fall

within the first group. Non-recurring, one-time expenditure as well as pre-investment expenditure

can also be included in this group. Investment in fixed assets is often referred to as block

investments. Capital invested to meet the recurring expenditure of the unit (eg. interest payment,

wages, water and electricity charges, purchase of raw materials etc.) is known as working capital.

While estimating the total investment needed for the project, money required for each project

activity should be indicated separately. The criteria followed in making this activity-wise

allocation should also be specified. Availability of the funds required for the implementation of

the project should be given by source and activity wise as in the illustration below :

Format 9.2

The Pattern of Financing of Vegetable Project in Kanjikuzhi Panchayat

Source SI. No Functions

Pan Grant -in-aid

Own Fund

State Sponsor •d Schemes

Centrally Sponsored Schemes

Loans from Co-op

Loans from

other Financi

Voluntary Labour & Donation

Beneficai Contribut Ion

Other s

al Inst. 1. Awareness &

Organisation 2. Training 3. Collection &

Distribution of Seeds

4. Cultivation5. Collection &

Distribution of Fertilizers

6. Production & Distribution of Pesticides

7. Monitoring 8. Harvesting 9. Marketing

Total

Once the total investment cost of the project is estimated, the next question one naturally asks is what and how much benefit will the project yield? As already mentioned, the general rule in project appraisal is that only projects which yield more than their cost need be implemented. But there are projects the benefit of which cannot be measured in monetary terms. Scope for economic appraisal of these projects is limited. In such cases, the unit costs of benefits can be estimated. For example, by estimating the cost per hospital bed provided, cost per man day of employment created, cost per square metre of area provided in a shopping complex etc. we get an idea of the relative cost efficiency of different kinds of benefits. The unit cost of services provided can also be estimated in the same way; eg. cost of supplying drinking water per person, cost of medical care per outpatient etc.

Accepting this reality, we however, have to estimate the costs and benefits of productive projects in monetary terms itself. Annual revenue and expenditure of the project for its entire life period should be given in a table. This may be a bit difficult in the case of a long-term project. However, the cash flow chart is an essential source of information for a variety of cost benefit ratios, such as annual net benefit, incremental benefit, payback period and average return on investment which are essential to decide the viability of the project. Cash receipts include all revenues: Sales, grants and loans. Cash payments include all payments: Cost of construction, machinery, capital replacement, loan repayment, raw materials, wages, power, interest, rent and so on. The receipts and expenditures must be grouped in a logical order. Net benefit is calculated by substracting payments from receipts for each year.

Format 9.3

Cash Flow Chart Year of project 1997

(year 1) 1998 (year 2)

1999 (year 3)

2000 (year 4)

2001 etc. (year 5 etc.)

Cash in flows (All items of receipts)

Cash out flows (All items of expenditures)

Net benefits = (Cash in flow - Cash out flow)

6. Net benefits

The economic appraisal of the project can normally consider only the measurable costs

and benefits, i.e, cost and benefits which can be valued in terms of money. But there are

projects, eg.

welfare projects, which yield benefits that are not measurable or not even tangible. An economic

appraisal from a profit-minded investor's narrow view is of no relevance to such projects. At the

same time, a rigorous social cost benefit analysis is beyond the scope of the local level projects.

But however a qualitative assessment may be made. In such an assessment there are three issues

that must invariably be answered..

a) What will be the impact of the project on the poor, particularly SC & ST? Will

it

make them poorer or improve their standard of living? If the former is the case what

are the remedial measures?

b) How will the project help to raise the social status of women? Will it increase their

employment opportunities? Will women get more control over assets and income?

Will it reduce the discrimination against women?

c) What will be the impact of the project on the environment? Adverse effects such as

pollution, soil erosion, bio-degeneration etc. should be studied and suggestions to

reduce them to the minimum should be stated.

7. Monitoring There should be an efficient arrangement to monitor the progress of implementation of the project

periodically to ascertain whether the work on the project is going on according to the prescribed

time schedule and specifications. The monitoring arrangement that is visualised could be clearly

stated with the project proposal.

Chapter 10

THE PLAN DOCUMENT

The Plan Document of a panchayat/municipality is a comprehensive record of all the developmental projects and programs that are proposed to be implemented within a specified period, say, a year. But a plan is much more than a mere listing of projects. There should be a clear perception of the local development problems and a strategy of action underlying the choice of projects. The plan document should present the socio-economic rationale of the plan. In this sense it is the most important document of the planning process.

It is important to draw up a comprehensive and analytical plan document on a uniform format by

all local bodies for three reasons: in order to facilitate integration, ensure transparency and

effective monitoring of the plans.

• Integration: The People's Planning is a multi-level planning exercise. If the plans prepared by different local bodies in the different tiers are to be integrated at district or state level, it is important that they all be prepared in a uniform format. The statistical annexure giving key quantitative information on the plan, on the basis of uniform definitions, are particularly important in this respect.

• Transparency: Plan document is a public document. Every citizen has the right to access this document. The public expressed their views and offered their suggestions about the plan at the formulation phases in grama sabha and the development seminars, and they have the right to know whether their views and suggestions have been considered or not. It may not be possible to retain the priorities of the projects, the same as suggested by grama sabhas, when considered at the Village/Panchayat/ Municipality level. There can be differences of opinion about priorities. Therefore, the Panchayat/Municipal councils, when making their final selection of projects for inclusion in the Plan should elucidate the logic, criteria and considerations gone into the marketing of their decisions. They should also explain whether their decisions are in conformity with the general policy framework determined by them. People have the right to discuss the correctness or otherwise of these decisions. Transparency reduces corruption, improves efficiency and provides opportunity for constant social auditing.

1

• Monitoring: Plan document is an instrument for effective monitoring. For this purpose a written plan document, clearly defining the time bound objectives and activity schedules is indispensable. Specific and clear instructions for monitoring should be included in the plan document. Plan funds can be spent only in accordance with the plan document. Diversion of funds in deviation of the approved Plan will be an irregularity. A basic point to be kept in mind is that Plans are made by the Panchayats and Municipalities themselves. They have been formulated after discussing with the people how their money should be spent. In the absence of such self-discipline, anarchy will be the result.

A critical issue in the phase of plan formulation is related to the right of elected representatives to determine the priorities. How can it be ensured that the logic of deliberations and analysis in the earlier stages of planning are adhered to in the choice of the projects to be included in the plan made by the elected representatives of the local bodies? The expectation is that the elected representatives will be deeply involved in the different stages of planning along with volunteers and experts so that they also imbibe the spirit of participatory planning. Of course there will always be cases where the elected representatives may choose to ignore the priorities expressed by the people or indicated by objective analysis. The solution to such an eventuality lies in the democratic political process - such a negative stance will tend to isolate them from the people who actively participated in the planning process and force them to pay a political price in the next election.

The structure of the plan document and the procedures for its adoption should be so designed so as to persuade the decision makers to go through the logic after processes that had been completed and avoid taking arbitrary decisions. The plan document is to have eight chapters and four annexes:

1. Introduction

2. Development Strategy

3. Pattern of Finance 4. Projects by Sector 5. Integrated Programs 6. Programs for Scheduled Castes and Scheduled Tribes 7. Programs for Women Development

8. The Monitoring System

2

Annex 1 Statistical Statements Annex 2 Texts of the Projects Annex 3 Selected Documents Related to the Peoples Campaign in the

Panchayat/Municipality

Annex 4 Suggestions for the Plans of the Higher Tiers (Block and District)

Chapter 1 - The guidelines for writing the introductory chapter are intended to cause the elected representatives to consider and reflect on the campaign as it had unfolded in their locality. The main body of the chapter should be a summary of the Development Report - an overview of the socio-economic characteristics of the panchayat, and the key development challenges it faces. This is to be followed by a self-critical review of the campaign—viewed as an attempt to meet these challenges.

In the brief summary of the PDR proposed for the introductory chapter, the following questions

may be answered in a paragraph or two each. If there are any problems besides the issues raised

below, they may also be discussed in the Introduction.

How serious are the problems of slow growth of production and productivity in agriculture and

small industries in the panchayat/municipality? 1. What is the employment and unemployment situation in the area, with special reference to

categories of people who are facing the unemployment problem more acutely? Which are the sectors creating more employment opportunities? What are the sectors/seasons experiencing shortages of labour?

2. What is the general quality of the services offered by the service sectors like education, health-care, drinking water, housing, transport, electricity, social welfare etc? Are they deteriorating?

3. What is the general standard of living of the SC-ST people of the area? What is the level of poverty? (i.e. approximate percentage of the poor in the population). Is the incidence of poverty higher among any specific social groups?

4. What is the work participation ratio of women? What are the types of paid work that women normally do? What are the serious economic discriminations against women?

6. Have there been any severe environmental problems recently?

3

7. What are the backward areas in the Panchayat/Municipality? Which are the areas in the

Panchayat that do not have the basic facilities like drinking water, road facility, electricity

etc.?

What are the reasons for backwardness?

Chapter 2 Once the introductory chapter is ready, the elected bodies are to formally adopt a resolution outlining the development strategy that they will pursue to meet the development problems they have identified in the Introduction. This resolution has to enunciate the inter-sectoral and the intra-sectoral priorities that the panchayat intended to pursue. The inter-sectoral priority is to be reflected in a table giving the relative share of allocation in the plan for all the different sectors. Besides, the resolution also has to highlight the intra-sectoral priority viz. the development activity or intervention the panchayat intend to emphasise within each development sector. Thus for example, a panchayat may choose to give topmost priority to the agricultural sector, followed by drinking water in its plan. The resolution is also supposed to state what would be the main development activity or policy they intended to pursue in the agricultural sector, or in order to provide drinking water. They may choose rejuvenation of the traditional water system and creation of new irrigation channels as the main line of activity in agriculture. They may emphasise small-scale water supplies schemes and encourage digging of local wells as solutions to the drinking water problems.

It should be mandatory to have such a resolution adopted before the panchayat formally selects the projects to be included in the plan. This selection has to be done in a special meeting subsequent to the adoption of the development strategy resolution. In short, this procedure is to be a safeguard against arbitrary selection of projects. A development strategy is to be framed on the basis of earlier deliberations outlining inter-sectoral and intra-sectoral priorities. The selection of the projects will have to be in conformity with this resolution. Certainly, a panchayat samithi will have the freedom to amend the strategy adopted. But it will require a formal resolution and deliberation.

The second chapter of the plan document, on the development strategy, is to be drawn up in conformity with the above resolution. But the precise statistical statement of the inter-sectoral priorities, which is central to the discussions in the chapter, will have to be based upon

4

summation of the investment requirements of the projects actually included in the plan by

sector. A format for presentation of inter-sectoral priority is given below:

Format 10.1

Development Strategy: Inter-sectoral

Priorities (The figures refers to percentage share in the grant-in-aid and total outlays)

General SCP TSP Total Sector

Grant-in-aid

Total Outlay

Grant-in-aid

Total Outlay

Grant-in-aid

Total Outlay

Grant-in-aid

Total Outlay

Agriculture Fisheries Animal Husbandry Industry Energy Housing Drinking Water Education Health

Add more sectors

if necessary

Total 100 100 100 100 100 100 100 100

Relative priority of a sector will correspond to its relative allocation, i.e. the sector

that is accorded highest priority will have the highest share of the outlay. The

development strategy can emphasise one particular sector or give balanced emphasis

on more than one sector. If the emphasis is on any one sector, the rationale for it must

be explained. Perhaps, it may be the sector with the highest development potential or

there may be untapped surplus funds available to that sector.

As we have stated earlier, the discussion on inter-sectoral allocation of funds is not a sufficient expression of the development strategy. Approach to the development of each sector should be discussed broadly. It may be useful if this discussion is summarised in the form of a chart. A model chart indicating the approaches to the development of each of the sectors in a hypothetical Panchayat is given below:

5

Chart 10.1

Development Strategy: Infra-sectoral Priorities

evelopment Area D Policy approach

1. Agriculture: a. Homestead Garden

b. Paddy

2. Animal Husbandry

3. Fishery

4. Small scale Industries

5. Energy

6. Health

7. Drinking Water

7. Education

8. Transport

9. Social Welfare

10. Housing

11. SC&ST

12. Women

13. Culture

Emphasis on ground water irrigation Encouragement to inter-cropping Prevention of water-logging Encouragement to multiple cropping Integrated water shed development

Improvement of genetic quality Cultivation of fodder grass Prawn culture in the marsh Diversification of handloom products. Skill upgradation. Propagation of fuel-efficient appliances and systems. Improvement of infrastructure of PHC. Expansion of the supply of drinking water. Digging new wells Creation of water harvesting structures. Improvement of the quality standard of primary education. Quality upgradation of roads Improvement of nutrition programme in schools and Anganwadies. Rehabilitation of puramboke dwellers. Scheme for new houses. Improvement of the basic amenities in SC-ST colonies. New employment opportunities for women. Encouraging women co-operatives. Support to reading rooms and libraries.

6

An issue that has to be clarified here is with regards to the possible conditions that the state government may lay on the sectoral allocation by the local bodies. Under people's planning the preferred mode of devolution is in the form of grant-in-aid rather than through so called district schemes. The grant-in-aid form of devolution greatly enhances the autonomy of the local bodies to formulate their own development strategies. However, the state government may indicate certain broad sectoral guidelines, as in the case of Kerala with regards to the grant-in-aid component of the plan. There are two reasons for such guidelines. 1. In a multi-level planning system, the priorities of agencies at different levels should as far as possible be complementary to one another. Local development plans have also got to be synchronised with the sectoral development priorities in the state plan. Nevertheless, there should be ample scope within the framework of the broad guidelines for autonomous choice of local development strategy.

2. Given the nature of the programs undertaken under Special Component Plan (SCP) and Tribal Sub Plan (TSP) for weaker sections, a major proportion of the plan funds under SCP and TSP may be devolved to the local bodies. However, as is well known the role of the weaker sections in the local power structures may be very weak. Therefore, in order to safe guard against any possible misuse of these funds, strict guidelines will have to be given from above and their compliance clause scrutinised,

Chapter 3 We has already touched upon the various sources of finance available to the local bodies when we discussed the project finance in the last chapter. Nevertheless, it would be useful to list out and briefly discuss the different sources of plan finance,

• Grant-in-aid: Today in most states grant-in-aid from the state's plan to the local bodies is

limited to meagre amounts of untied funds. It is expected that the major proportion of the plan

devolution to the local bodies under People's Planning will take the form of grant-in-aid. The

state government can intimate the local bodies about the likely amount they would receive in

advance of the financial year, even though they may be formally declared only in the annual

budget of the state.

• State Sponsored Scheme: The so called district scheme category that is being used all over India as a proxy for schemes devolved to the local bodies is a motley group, of schemes and projects over many of which the local bodies hardly have any control. Therefore, under People's Planning they may be substituted by a new category of State Sponsored Schemes, which are defined as schemes that are drawn up by the departments but implemented through

7

the local bodies. In the state budget they may be accounted under suitable budget head, so that the monetary provisions for these schemes are inevitably transferred to the local bodies. Such transferred funds can be utilised only for implementation of the schemes for which they have been allocated. It is the duty of the department officials to intimate to the local bodies

the likely schemes and allocations that the latter might receive from the State Sponsored

Schemes

from their departments at the beginning of the financial year itself.

• Centrally Sponsored Schemes: Most of the poverty alleviation programmes of the

central government are today implemented through the local bodies. They constitute

the most important source of finance for developmental activities of the local bodies in

many states in India. These schemes should be integrated with the local plans. Projects

may be prepared under these schemes on the assumption that funds equal to the amount

made available during the previous year will be provided in the current year also. • Surplus from Own Funds: All new development projects of the local bodies must be

made a part of the annual plan. These would include works and schemes financed by

their own revenue or other non-plan grant-in-aid from government. The entire non-

plan revenue surplus of the local bodies must be treated as a source of their plan finance.

The non-plan revenue surplus is defined as the balance from their own tax and non-tax

revenues and non-plan grants after meeting the establishment, minor repair and

maintenance charges, repayment of loans and reasonable contingency amount for

unseen expenses. • Loans from Financial Institutions: At present, it is not envisaged that the local bodies

directly borrow from commercial banks or co-operative banks for financing their

plans. In some states special financing institutions like Rural Development Boards or

Urban Financing Corporations are in existence to finance certain selected income

earning construction activities of local bodies. However, the financial institutions can

provide credit to the individual beneficiaries of the projects of the local bodies. Such

credit linkage can substantially enhance the outreach of the local plans. Such finance can

be provided as part of normal credit plan of the banks for the district or service area.

Given the potential role that co-operative credit societies can play in local planning it

may be preferable to record the contribution of the co-operative sector distinct from the

other financial institutions. • Voluntary Labour and Donations: There is substantial scope for local resource

mobilisation through voluntary contribution of materials, money and labour. Voluntary

labour for rural reconstruction has been an important tradition from the national

8

movement in many parts of India. The monetary value of materials donation and

voluntary labour must be included as a source of plan finance.

• Beneficiary Contribution: As already noted in the last chapter, only net additional investment undertaken by the beneficiary as part of a project may be considered as beneficiary contribution. Otherwise there is a danger of this component of plan finance being misused to exaggerate the plan outlay. It must also be clarified as to what share of the beneficiary contribution will be remitted to the local body or to the implementation agency and what will be directly spent by the beneficiary himself/herself.

• Other sources: The plan finance may be supplemented also from other sources

such as voluntary agencies or semi-governmental promotional agencies.

The pattern of financing the plan may be presented in a format as in Format 10.2

FormatlO.2 Pattern of Finance :

Distribution of Plan Outlay by Source

{Amount in Rupees; percentage share given in paranthesis)

Sector Grant-!n-ald Centrally

Sponsor ad Sctieme

State Sponsored Scheme

Surplus from (jv;n revenue

Loan from cooperatives

Loan from other financial iiistitiitioiE

Voluntary labour and donations

Beneficia fy contribuii orrPald

Beneficiary contribution spent by beneficiary.

Other Sourc M

Total

Genera! (100) SCP (100) TSP (100) Women Compon ent Plan

(100)

Total

Pattern of Finance can be finalised only after the projects are selected. The local body can know beforehand only how much it is going to receive as grant-in-aid from the state government, or in the form of schemes sponsored by central and state government. It should also be able to make an estimate of how many surpluses from owned revenue it will be able to set apart for financing the plan. But, other sources of plan finance such as the loans from co-operatives and other financial institutions, voluntary labour donations, beneficiary contributions and such other sources would depend upon the nature of the projects taken up. There can be considerable debate as to what all sources of finance may be included in estimating the plan outlay of the local bodies. While voluntary labour and contributions can be considered a legitimate source of plan

9

finance, it is doubtful if the bank loans made available to the beneficiaries of the projects or the expenditure incurred directly by the beneficiaries to implement the project, should be included in the plan outlay. There is always a danger that these components may be used to exaggerate the plan outlay and ultimately undermine the usefulness of the concept itself. But their inclusion also serves a purpose. They indicate how much additional private investment is being generated, as private complimentary investment, as a result of the plan investment.

Chapter 4 All the projects that are included in the plan are listed by sector in chapter 4. For sectoral classification the codes given in the Annex to this chapter may be used. Brief summaries of the salient features of each project may also be given. The following points must be included in the summary.

• Serial No. • Development Sector Code • Name of the Project • Objectives of the Project (quantitative terms) • Beneficiaries • Estimated Total Outlay • Share of state grant-in-aid • Share of State Sponsored Schemes • Share of Centrally Sponsored Schemes • Share of own revenue surplus.

Chapter 5 After the projects are individually listed in the fourth chapter, the interrelated projects are to be grouped together and their inter-linkages discussed so that they can be conceived as an integrated program, at least during the implementation stage. Despite the emphasis given in the People's Planning Campaign for an integrated approach it is likely that, at least during the initial years, a major weakness of the planning process would be the failure to pay sufficient attention to inter-linkages and integration. This chapter is an attempt to rectify the situation. It may not be possible to include each and every project in some or other comprehensive programme, but as far as

10

possible as many of them must be implemented as inter-linked projects of larger comprehensive programmes.

Chapter 6 A separate chapter is to be devoted to discuss the projects and programs that are to be implemented for the welfare of scheduled castes, and scheduled tribes. As we have already noted a substantial proportion of plan funds that are earmarked for the weaker sections will be devolved to the local bodies. Therefore, it is all the more important to clearly lay down a special strategy for the development of weaker sections. After listing of the projects under SCP and TSP, an

assessment of their likely impact upon the employment income or welfare of the beneficiaries must be stated. The chapter should also provide a detailed statement of the precautions undertaken to ensure that funds are not diverted or misused but reach the targeted population.

Chapter 7 A certain proportion of the funds must be ear-narked for projects that directly benefit women. The Women Component Plan is not a substitute for special consideration being given to women or ensuring gender concerns in other projects. In the introduction to the chapter a brief description of the status of women in the local body area may be given. The steps undertaken by the local body to ensure greater participation of women in the planning process and incorporating gender dimension in the local plan must also be discussed. A listing of the Women Development Projects and an assessment of how they would contribute to greater gender equality should follow it.

Chapter 8

11

Finally the monitoring system that is proposed has to be indicated. The overall implementation of the plan will have to be reviewed periodically and necessary changes suggested. For example, each project included in the annual plan may be split into monthly programmes in accordance with the time frame of the project so that the implementation of the programme progresses as per schedule. It will be useful if the plan document includes a working calendar for the panchayat that provides against each month a listing of the projects and the related activities to be undertaken in the form of a chart. Apart from the issues related to the timetable for plan implementation, there are also other issues that will have to be monitored. Is the expenditure incurred on the project in accordance with the budget provisions? Are the norms laid down for the selection of beneficiaries being observed? Have the necessary preparations been made for projects scheduled to be launched next month? Are the monthly returns on the progress of implementation of the plan being sent to the District Planning Committee? Are the physical targets being achieved? Has the expected local resource mobilisation materialised? There are many such other issues, which have to be continuously monitored and therefore require a permanent monitoring system.

It is possible that all projects might have proposed independent monitoring system and methods. Such a situation may lead to crowding of monitoring organisations with the potential risk of none of them becoming effective. It may be better to have certain common monitoring arrangements for similar projects or sectors. Apart from such committees or agencies for plan monitoring, the panchayats can on their own take initiative for practices that encourage transparency and public accountability, such as systems for concurrent evaluation, publication of accounts and so on.

Annexure The selected documents of the People's Planning Campaign are to be appended to the plan

document as evidence that the local body has followed the planning procedures prescribed. The

complete text of the project proposals has also to be submitted as an annex to the plan document.

In fact, they would constitute the major bulk of the papers related to the plan. The next major

annex consists of statistical abstracts of the projects filled up in printed formats. We shall present

an outline of these formats.

The statistical formats prescribed by the National Planning Commission (GN Forms) and used for the preparation of the state plan may not be appropriate for the local plans. The experience is that their adoption makes the preparation of tbe statistical annex complex and burdensome. For one, there are too many statements to be prepared, Ther; are two basic statements in which ail the projects are to be listed and certain basic facts such as their outlay and different source of funding, physical targets, the proportion of outlay on physical investment etc. are to be provided. The rest of the statements seek selected information to be extracted from the above database. Thus there are separate formats for spill over projects, new projects and projects for full utilisation of the existing assets. Separate statements are to be given for projects for welfare of the scheduled castes, welfare of the scheduled tribes and welfare of women, projects under Centrally Sponsored Schemes, projects for meeting basic minimum needs, and so on. The numerous statements, nineteen in all, though apparently simple, tremendously increases the paperwork.

Another issue is the system of classification used in the G.N.Forms. The projects are to be listed according to the departmental heads. This may create confusion, as the approach of People's Plan Campaign is to avoid arbitrary departmental approach and popularise a more integrated concept of development sectors. Thus, for example, all projects using centrally sponsored funds being routed through the Rural Development Department will have to be brought under that particular head whatever be the nature of the project-agriculture, irrigation or public works. There may be separate departments for dairy development, and animal husbandry. It is often difficult to decide to which department a specific bovine sector development project belongs.

12

Further, some of the concepts are difficult for the grassroots level activists to understand. Thus, for example, the concept of investment of physical assets can create a Sot of confusion. Therefore, G.N. Forms are suitably modified for our purpose. Basically, the local bodies have only got to make a comprehensive list of all projects, arranged according to development sub-sectors. (See modified sectoral codes used for classification of the projects at the end of the chapter). The projects under general sector are to be listed first, then those of SCP and finally those of TSP. The format may have sufficient columns to fill up the following information for each project:

1. Project Serial Number

2. Development Sector Code

3. Women Component Plan Project or not

4. Spill over project or New Project.

5. If Centrally Sponsored fund is used, the name of the scheme.

Pattern of Finance

6. Grant-in-aid 7. State Sponsored Scheme Fund 8. Centrally Sponsored Scheme Fund. 9. Own Revenue Surplus 10. Loans from co-operatives 11. Loans from other financial institutions 12. Voluntary labour, Donation 13. Beneficiary contribution - Paid out component 14. Beneficiary contribution -self expenditure

15. Others 16. Total Outlay

13

17. No. of Direct Beneficiaries

18. No. of Direct persons days of labour created

The information regarding the projects using the Centrally Sponsored Rural Development Department Schemes or other schemes sponsored by different state departments may be generated from the basic listing of the projects. Similarly, the information regarding other separate categories may also be generated as per requirement by the users. The local bodies are thus absolved from the responsibility of filling up separate annexure forms for the purpose. It is better to make an assessment of the investment in physical capital formation through sample surveys than through aggregation of unreliable estimates given for each project. Similarly, instead of having the local bodies to record in the statistical annex format the physical target of each of the project, a separate form for the purpose may be provided. From the physical targets set for the plan as a whole certain selected items, such as houses to be built, length of roads to be laid, additional land to be brought under cultivation or irrigation, cows, goats and poultry to be distributed and so on may be thus collected. A format for aggregated data at the level of 2 digit code sector classification may also be included in the statistical annex as it would facilitate easier tabulation of the statements required for the text of the plan document and plan appraisal.

ANNEXURE CODE CODES FOR DEVELOPMENT SECTORS AND SUB SECTORS

Sector Sub-sectors Micro sector Code

1. Productive Sectors Agriculture and allied sectors (1)

Paddy (l.l)

Other crops( 1.2)

Seeds, seedlings

Pesticides, fertilizers

Mechanization

Integrated programs

Others

Coconut Arecanut Spices Rubber Cashew Plantain Tuber

1.1.1

1.1,2 1.1.3 1.1.4 1.1.5

1.2.1 1.2.2 1.2.3 1.2.4 1.2.5 1.2.6 1.2.7 1.2.8

14

Employment

Other Agricultural Development Programs (1.3) Animal husbandry/ Dairy development (1.4) Fisheries (1.5) Forestry (1.6) Co-operation in Agriculture and related areas (1.7)

Fruits Tree crops Floriculture Vegetables Medicinal plants Others Other Agri.Dvt.Prgm

Poultry (Egg) Poultry (meat) Duck farming Quail Farming Egg/poultry nursery Goat farming Cow/Buffalo breeding Other animal rearing Milk Collection /processing/ distribution Veterinary hospital-disease control, treatment Fodder grass cultivation Rabies eradication Slaughter houses Other conservation Projects

Fishing Aquaculture Fish processing Fish marketing Ornamental Fish Farming Other programmes Afforestation

New production societies New credit societies New agricultural marketing societies Improvement of existing production societies

1.2.9 1.2.10 1.2.11 1.2.12 1.2.13 1.3.1 1.4.1 1.4.2 1.4.3 1.4.4 1.4.5 1.4.6 1.4.7 1.4.8 1.4.9 1.4.10 1.4.11 1.4.12 1.4.13 1.4.14 1.5.1 1.5.2 1.5.3 1.5.4 1.5.5 1.5.6 1.6.1 1.7.1 1.7.2 1.7.3 1.7.4 1.7.5 1.7.6 2.1.1 2.1.2

15

Irrigation and Flood control(2) Industry(3)

Soil and Water Conservation(2.1) Multi-irrigation(2.2) Flood Control(2.3) Small scale industries(3.1) Handicrafts industry(3.2) Handloom industry(3..3) Coir industry(3.4) Khadi industry(3.5) Sericulture industry(3.6) Other industries(3.7) Co-operation in industrial sector(3.8)

Improvement of existing credit societies Improvement of existing agricultural marketing societies Soil conservation Water conservation Integrated watershed development Lift irrigation Other mini- irrigation Flood control. Food processing Ready made garment/ sewing Mini industrial estates Entrepreneurial development-training Industrial cluster Construction materials Furniture industry Other small-scale industries Handicrafts Handloom Coir-proceeding Coir manufacturing Khadi Sericulture Other industries Co-op.societies in industrial sector

2.1.3 2.2.1 2.2.2 2.3.1 3.1.1 3.1.2 3.1.3 3.1.4 3.1.5

3.1.6 3.1.7 3.1.8 3.2.1 3.2..1 3.3.1 3.4.1 3.4.2 3.5.1 3.6.1 3.7.1 3.8.1

16

II. Service sector

Environmental protection(4)

Education(5)

Health(6)

Environment(4.1)

Primary education (5.1) High school education(5.2) Technical Education(5.3) Youth welfare(5.4) Arts & Culture(5.5) Public Health(6.1)

Environment protection

Primary education

Quality Improvement Primary education Infrastructure facility Integrated programmes Primary education Others

High School -Quality Improvement High school- Infrastructural facility Intergrated programmes High-school-others

Tech. education -Quality Improvement Tech. education- Infrastructural facility Tech. education-others Sports Others

Arts & Culture Libraries

Awareness Programme and Immunisation Equipment, other facilities Building & other physical facilities Ayurvedic Homeo Others

4.1.1 5.1.1 5.1.2 5.1.3 5.2.1 5.2.2 5.2.3 5.2.4 5.3.1 5.3.2 5.3.4 5.4.1 5.4.2 5.5.1 5.5.2 6.1.1 6.1.2 6.1.3 6.1.4 6.1.5 6.1.6

17

Drinking Water Supply(6.2)

Snaitation(6.3)

Housing(7)

Social Welfare(8)

Housing development planning(7.1) Housing development(7.2)

Slum development{7,3)

Co-orporation in housing development(7.4)

Mother-child care(8.l)

Food & Nturition (8.2)

Water source rejuvenation Water source construction Quality management of water Rain harvesting New pipe water projects Strengthening of existing water supply schemes Extension of pipe line Drainage Latrines Mosquito/rodent eradication solid waste disposal treatment Others Housing census Awareness activities House construction Housing centres development House upgradation House repairs Slum Development Housing Co-operative Societies

Anganawadi buildings

Anganawadi-others

6.2.1 6.2.2 6.2.3 6.2.4 6.2.5 6.2.6 6.2.7 6.3.1 6.3.2 6.3.3 6.3.4 6.3.5 7.1.1 7.1.2 7.2.1 7.2.2 7.2.3 7.2.4 7.3.1 7.4.1 8.1.8 8.1.2

18

Public Economic Service(9)

III. Infrastructure Sector Engery (10)

Labour&Labour Welfare(8.3)

Other Social Welfare Programmes (8.4)

Tourism (9.1)

Public Distribution(9.2)

Public Burial ground(9.3) Planning Suirveys,studies(9.4) Consumer Co-operative Societies(9..5) Electricity Generation(10.1) Electicity Distribution ( 10.2)

Food & Nturition Programmes

Distribution of implements

Training

Co-op.socien'es

Others

Other Social Welfare Tourism Public distribution Consumer co-operative societies Market Development Burial ground Planning Suirveys,studies Consumer Co-operative Societies Mini-hydro electricity fesibility study Mini-hydro electricity generation Mini0thermal power generation Street lights Colony electrification

8.2.1 8.3.1 8.3.2 8.3.3 8.3.4 8.4.1 9.1.1 9.2.1 9.2.2 9.2.3 9.3.1 9.4.1 9.5.1 10.1.1 10.1.2 10.1.3 10.2.1 10.2.2 10.2.3

19

Transportation (11) Other Public Buildings (12)

Non-conventional energy (10.3) Energy conservation (10.4) Intensive energy planning (10.5) Road /bridge (11.1) Inland Water transport(11.2) Other transportation(11.3) Others (11.4) Other Public Buildings (12.1)

House electrification Voltage enhancement & Reduction of transmission loss Solar lamps Other solar thermal power projects Wind energy programmes Bio-energy programmes Improved ovens/hearths Electricity efficient appliances Other fuel efficient equipments Energy survey Awareness creation Powerline mapping Energy auditing Construction of new roads Road maintenance Road improvement Construction of new bridges Bridge maintenance/improvements Construction of new Culvert Culvert maintenance/improvements Transport related facilities Inland water transport Other modes of transportation Waiting sheds/bus stands Public Building construction Up gradation and repair of Public Buildings Public Building related facilities

10.2.4 10.3.1 10.3.2 10.3.3 10.3.4 10.4.1 10.4.2 10.4.3 10.5.1 10.5.2 10.5.3 10.5.4 11.1.1 11.1.2 11.1.3 11.1.4 111.5 11.1.6 11.1.7 11.1.8 11.2.1 11.3.1 11.4.1 12.1.1 12.1.2 12.1.3

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Chapter 11

INTEGRATION OF GRASSROOT PLANS AND PLANS OF THE HIGHER TIERS

In the People's Campaign, during the initial year, we do not envisage simultaneous preparation of plans of different tiers. If block and district level plan preparations take

place simultaneously with those of the grama panchayats, the grama panchayats would

not receive the necessary organisational support. The result would be confusion at all levels. More importantly, our vision of decentralised planning is one of a bottom up

process: the grama panchayats should first prepare their plans, then the block panchayats

and the district panchayats would draft plans that took the grama panchayat plans into consideration. Existing law was vague in delineating functions and powers among the

levels. Functions and powers at the three levels overlapped considerably. Simultaneous

preparation of the plans would lead to considerable duplication and gaps among the plans at the three levels. How should the grama panchayat analyses and plans be integrated so

that a co-ordinated plan could be prepared by the block and district panchayats? We

suggest the following method, which is simple and time effective.

Methods for Integrating Grama Panchayat Plans

In People's Planning the basic units of planning are the villages and municipalities. The block plans have to be' built up primarily by integrating the plans of the grama

panchayats. However, the block panchayats do not need to repeat all the preparatory

activities that have gone into the grama panchayat level. Grama sabhas, collection of secondary data, and studies undertaken do not have to be repeated. The discussions in the

grama sabhas and the findings from the various studies are already printed in the

development studies. These development studies can therefore provide the basis for preparing the block plans. But at the same time, block level institutions have substantial

data and the district level offices contain even more useful data for planning. At these

higher levels a large number of evaluations of past schemes, analyses of development potential, programs by sector, are available. These source materials can be utilised for the

block and district plans.

The preparation of the situation analysis and identification of development proposals for

each development sector for block level planning involves seven steps:

1. The analysis should start with a statement of the current situation in the block or district with reference to the level of productivity or the quality of the services

in that sector. For agriculture the situation analysis would begin with a statement of the current cropping pattern in the block, followed by an analysis of the

productivity of each crop. Basic information is available in the panchayat

development reports, but this information may be crosschecked with information available at the block. If there is substantial difference between the two sets of

information, a discussion should be presented on the reasons and an independent

judgement offered. Substantial differences among the panchayats within the block can also become a point to highlight in the analysis.

2. The next step is to analyse the reasons for the current state of affairs in that development sector. For agriculture, it may be the existence of cultivable

wasteland or the low productivity of particular crops or of all crops. The

panchayat development reports will provide the basic source material. All the problems given in the Panchayat Development Reports (PDR) should be listed.

The gravity of each of these problems in each grama panchayat should then be

assessed, using a four point scale: very serious, moderately serious, not serious, not a problem. The self-assessment of the panchayat will be available in many

cases in the PDR, but if that assessment is not clear, the grama panchayat

agricultural officer must be consulted. The findings are to be presented in a chart. A relative gravity scale chart for the block summarising the findings for

a hypothetical block that may be used as an illustration is given in Illustration

11.1.

2

In the block depicted by Illustration 11.1, the grama panchayats have determined that

eight factors adversely affected agricultural production. The relative seriousness of each

problem in the block can be ascertained from Illustration 11.1. Lack of irrigation is a very

serious problem in three grama panchayats, moderately serious in one, and not serious in

other. Water logging is a problem in only one grama panchayat (GP-E). In three grama

panchayats (A, B, and C) no water logging exists, and in GP-D it is not serious. This simple

technique at a glance presents the degree of seriousness of factors holding back agricultural

expansion and their distribution in the block.

Illustration 11.1 Assessment of Agricultural Problems in Five Panchayats of Block Z

Agricultural Problems GP-A GP-B GP-C GP-D GP-E 1 . Inadequate Irrigation Facilities 1 1 1 2 3 2. Exploitation by Middlemen 3 3 3 3 2 3. Fragmentation of Landholdings 2 2 3 2 2 4. Scarcity of Agricultural Labourers 0 0 3 2 0 5. Low Soil Fertility 2 1 2 3 3 6. Pests 0 3 3 2 0 7, Water logging 0 0 0 3 1 8. Ineffective Extension Work by the Krishi 0 0 3 2 0 Bhavan Notes: GP-A = Grama Panchayat A, etc. Numbers: 0=Not a problem at all; l=a serious problem; 2=a moderate problem; 3= a slight problem

Another chart may be prepared that attempts to assess not the gravity of the problems but

rather to rank the problems in each panchayat by degree of importance relative to other

problems (see Illustration 11.2). In grama panchayats A, B and C the highest-ranking

problem is shortage of irrigation. In panchayat E where water logging is the most serious problem, lack of irrigation is not important: its rank is only 5. It appears that

overall the low soil fertility is the second most serious problem in the block. The block

taken as a whole seems to show that the Krishi Bhavan is not seen as a major source of the problems in agriculture.

3

Illustration 11.2 Assessment of Agricultural Problems

In Rank Order in Five Panchayats in Block Z

Agricultural Problems GP- A

GP-B GP-C

GP-D

GP-E

1. Inadequate Irrigation Facilities 1 1 1 2 5 2. Exploitation by Middlemen 6 5 5 6 6 3. Fragmentation of Landholdings 4 4 4 4 3 4. Scarcity of Agricultural Labourers 3 3 2 5 4 5. Low Soil Fertility 2 2 3 1 0 6. Pests 5 0 6 3 2 7. Water logging 0 0 7 7 1 8. Ineffective extension work of the Krishi 0 0 0 8 7 Bhavan

4

Notes: Panchayat key same as for table 11.1 Numbers: 0= not a problem; l=most serious of all agricultural problems; 2= second

most serious, etc. Each zero replaces a ranking and reduces the total number of rankings. On the basis of Illustrations 11.1 and 11.2 a comprehensive discussion can be undertaken on the basic agricultural problems of the block using the analysis in the development

reports and secondary data available at the block level. It is also suggested that an attempt

should be made to produce a map showing the agricultural problems. To facilitate a spatial display, four maps of the block—administrative, landform, drainage, and soil

type—may be prepared centrally and made available to each block.

3) Once the above discussion is completed, the analysis can move to the agricultural development projects that are proposed by the grama panchayats.

This analysis is the third step in the block level integration. Grama panchayat

projects are classified on the basis of types. An examination of the list of project proposals in the approved plans of the grama panchayats reveals that they may

be grouped into nine types of agricultural interventions. These types are

presented in Illustration 11.3. This table gives the relative ranking of importance of each intervention in each grama panchayat. The relative

importance is determined by the relative outlay earmarked for the projects.

Project types getting the biggest allocation are ranked 1, the second highest 2, and so on. A ranking of 0 goes to a panchayat giving no allocation to a project

of a particular type.

Thus Illustration 11.3 gives the priorities identified by the grama panchayats. As

can be seen, extending irrigation gets the highest priority, except in panchayat E. In

that panchayat drainage receives the highest priority. Promoting inter-cropping gets the second highest priority and group farming the third.

Illustration 11.3 Priorities of Five Panchayats in a Block 7

Types of Projects GP-A GP-B GP-C GP-D GP-E

Irrigation I 1 1 1 3 Co-operative Marketing 0 3 3 0 0 Group Farming 3 4 4 3 4 Mechanisation 4 5 5 0 0 Organic Manure 5 6 6 4 0 Organic Pesticides 6 0 7 5 5 Drainage 0 0 0 0 1 Strengthening Krishi 0 0 0 8 7 Bhavan Promotion of Inter-cropping 2 2 2 2 4

Notes: Grama panchayat key same as for Illustration 11.1 Numbers: l=first priority; 2=second priority; 0=no allocation

With the priority charts, block officials could make a comparative analysis of the local level plans and priorities. The block panchayat can assess the degree of correspondence

between problems and projects, panchayat by panchayat. Are there any potential conflicts

between the projects across the panchayats—for example a drainage project in one panchayat right next to an irrigation project in another? Are any of the projects

appropriate for integration or co-ordination under a joint committee of the panchayats

involved? What complementary activities should the block panchayat carry out to make the plans of the grama panchayats more successful? These are questions for which the

tables might suggest answers.

4) The next step in block level planning is to review ongoing schemes. The schemes

implemented by the block should be considered first, and then the schemes by the other line departments. With the greater administrative support the block panchayats

enjoyed, they can undertake reviews that would fill the gaps in PDRs.

5

5) The fifth step is to codity and analyse the recommendations made by the grama

panchayats to the higher levels. As we noted while discussing the plan documents

of the grama panchayats, such a list of recommendations is to be appended to each plan document.

6) Once the above five steps are completed, the block panchayats are to draw up an assessment of the development possibilities and put forth a list of the project

proposals they can take up. First they should list proposals complementary to the

grama panchayat projects. Independent initiatives of the block panchayat come next.

7) The concluding part of the analysis should include a statement of the development perspective underlying their proposals. The overall methodology

was simple, but if carried out, it could lead to complementary plans of village

and block panchayats.

After the first five steps are completed, the block panchayats should convene a meeting of all the

grama panchayat members in their area and make a presentation of their major findings particularly the codified list of proposals that have come up from below. The assembly of grama panchayat members, for seeking additional suggestions and comments regarding proposals to be included in the block panchayat plan, may be considered to play a similar function to the plan as grama sabha meeting in the preparation of grama panchayat plans.

The block plan document is a combination of the development reports and the plan

documents from the grama panchayats. This document is to have four sections.

• Part 1. Four brief chapters: introduction, administrative history, natural and human resources, and review of ongoing plans.

• Part 2. Twelve chapters: one for each development sector. The content of each sectoral analysis has already been presented in the methodology for integrating analysis and action plans of the grama panchayats. Parts 1 and 2 have a broad resemblance to the development reports and plan documents of the grama panchayats.

6

• Part 3. The plan document for the block. It has seven chapters—development strategy, pattern of finance, projects, integrated programs, special component and tribal sub-plan, gender, and monitoring.

• Part 4, Annexes with selected documents, statistical statements, full texts of the projects, and recommendations to the district panchayats.

The first three parts of the report had to be printed, presented, and discussed in a development seminar before the plan could be approved by the block panchayat. The

agenda for the block seminar is similar to that of the grama panchayat. The major

difference is that the grama panchayat seminar is one of the initial phases in the preparation of the grama panehayat plan while the block panchayat seminar takes place

just before the final approval of the plan. The abjective of the block seminar is to ensure

transparency and the right to information.

Integration of Centrally-Sponsored Schemes

The integrated approach is a concept that is central to People's Planning: all development activities at every level, irrespective of the sponsoring / implementation agency should be

integrated in the local plan of that level. The concept becomes vital to the preparation

of block panchayat planning because the blocks are the nodal agencies for implementation of a wide variety of poverty alleviation and development schemes of Rural Development Department. These schemes are basically of two types: self-employment schemes and schemes for rural wage employment. A brief description of the different schemes may be useful to provide an understanding of the issues involved in attempting to integrate them into the plans of the block panchayats.

All self-employment schemes are targeted to families below the poverty line and are

intended to bring them above that line. There are five types of self-employment schemes.

The most important self-employment scheme is the Integrated Rural Development

Program (IRDP) which provides financial assistance, subsidies, and bank credit as a package for the poor family to acquire an income earning asset or set up an opportunity

for self-employment.

7

The scheme called Development of Women and Children in Rural Areas (DWCRA) is a

variant of IRDP in which a group of below poverty line beneficiaries is helped to set

up resources for self-employment. The group members are encouraged to collect thrift for which matching grant is given by the government to be used for short-term credit

needs of the members. Groups that succeed in operating a thrift and credit account for a

specified time are given a revolving fund from the scheme to help them expand the employment.

The Group Loan Scheme (GLS) through which substantial credit is made available to

groups of beneficiaries for self-employment, including males. Yet another scheme is the Family Credit Scheme (PCS) where a number of beneficiaries are identified within a

single family so that all of them together could achieve an income sufficient to raise them

above the poverty line. Training for Rural Youth Self-Employment (TRYSEM) attempts to give stipends to beneficiaries of the other schemes in selected institutions for self-

employment. Finally, Distribution of Improved Tool Kits (DITK) provides rural artisans

with improved tools to enhance their incomes.

The most important rural employment program is the Jawahar Rozgar Yojana, which

undertakes rural public works to create employment for rural labourers. The basic

condition is that 60% of the expenditure should be for wages. Seventy percent of this

fund is reserved for the grama panchayats. The money can be spent to hire labourers to

build rural roads, public buildings, irrigation canals, and the like. The Million Wells Scheme seeks to provide predominantly SC/ST fanners with irrigation wells. Indira Avas Yojana seeks to create rural employment through constructing houses for SC/ST families

below the poverty line. The employment assurance program which started in 1996-97 eclipses all the other programs in the size of its allocation.

Each of these schemes followed detailed guidelines prepared by the central government

for proposal writing, selection of beneficiaries, and implementation. For routing the funds

to the blocks the central government created special agencies in every district called DRDA— with' the district collector as chairperson and with elected representatives, key

officials, and selected experts.

8

The DRDA determines the rough allocation of the centrally sponsored rural

development schemes to the blocks. The blocks have to prepare action plans according to

the guidelines and in proportion to the allocations they could expect and submit them to the DRDA. Before money can be released to the blocks, the DRDA has to process and

approve these action plans. All these raise a number of technical obstacles to effective

integration of centrally sponsored programmes in the local plans, some of which are given below:

The self-employment programs have rigid financing patterns, norms for credit, and procedures for selection of beneficiaries. The local bodies have no powers to change this.

The maximum wage rate for the rural employment programs is fixed at the central level

and certain ratios have to be maintained between materials and wages. Certain ratios also have to be maintained among the development sectors. For most of these schemes a shelf

of projects or actions plans much above the expected allocation has to be prepared.

Finally, the DRDA is the authority for approving the action plans of the blocks and there is a centrally fixed timetable for the approval process. Linking these schemes with the

panchayat plans may upset the timetables and might end up with the block losing

substantial amounts of central government funds. Besides, there can also be determined opposition from vested interests. The Community

Development Blocks were introduced in the 1950s as the basic units of grass roots

development administration for integrated development of localities. Over time these Community Development Blocks lost their co-ordination role and shrank into yet another

line department themselves, implementing schemes sponsored by the Rural Development

Department. In the absence of public participation and transparency and with huge amounts of money being spent on public works, the block administration rapidly lost its

capacity to be a unit for socio-economic change and became merely an agency for public

works with the inevitable appearance of corruption. Integration of the block level plan and the application of transparent procedures for preparation of proposals for the

centrally sponsored schemes amounts to an inconvenience for the vested interests that

have grown up around the block. The special central guidelines and procedures for the self-employment and rural wage employment programs provide a convenient excuse to

avoid integrating them into the block panchayat plans.

9

There must be clear instructions explaining the ways in which the different schemes can be

integrated into the local panchayat plans without violating the guidelines of the central

government.

• Integration of Generally Sponsored Schemes with the local plans implies that their action plan must be prepared on the basis of the overall situation analysis and prioritisation made as part of the general planning process. In no case should the action plans of the Centrally Sponsored Schemes be drawn up independently of the planning procedures that we have laid down earlier. By integrating the rural employment programs with the larger plan, those programs would cease to be mere employment generating public works and would become part of the integrated development of the locality. The self-employment programs can be similarly linked to the plan priorities identified.

• The projects based on Centrally Sponsored Schemes may be used as separate identifying

components of a general integrated programme. The JRY or EAS funds may be used to

implement components of a watershed programme such as de-silting of ponds or digging

of drainage channels etc. It is also possible to utilise other sources of funds to supplement funds of Centrally Sponsored Schemes for financing a single project. The other sources of plan funds may be used as an additionality to the Centrally Sponsored Scheme funds in order to create durable assets by increasing the share of material components or raising the wages to the actually prevalent market rates. Thus for example, it may not be possible under JRY to set up a drinking water project because of the restrictions on the expenditure on material components, however, material components may be provided from the other plan fund sources.

• The DRDA may prove to be a major hindrance to integration of the rural

development programs with the plan. The solution to this problem lay in dissolving

the DRDA and handing over its functions to the district panchayats as has already

been done in some other states.

District Panchayat Plans

The guidelines for block panchayat planning may be adopted with certain modifications

in those for the preparation of the district panchayat plans.

10

• One major modification is in the method for integrating the plans from the block

level. The district panchayats have to integrate the analyses of the block panchayats.

The block panchayat plan documents contains analyses of the relative gravity of the

development problems in each sector, presented as a chart. The district panchayats

should prepare a frequency distribution of the levels of gravity of the development

problems from these block level charts. A listing of all the problems of the grama

panchayats may be prepared for each development sector, with a frequency

distribution on a four point scale: (1) very serious, (2) moderately serious, (3) not

serious, (4) not a problem. The district panchayats should also identify the major

problems on a map using a colouring scheme that would visually represent the

geographical distribution of various problems and their levels of severity. This map—

despite its limitations—will be a powerful device for indicating linkages between

agricultural problems and the micro-ecology of the district.

• Similar frequency tables are to be prepared for the types of projects being undertaken

by the grama panchayats. These frequency distributions will show how many

panchayats gave the highest priority to which types of projects in the district. The

block panchayat projects are to be displayed by a modified version of the table 11.3.

• The above would allow for a comparative view of the programs. Three questions are to be answered similar to those posed to the block panchayats:

Is there any likelihood of conflict among the projects of the various lower level

bodies?

Is there a possibility of integrating similar programs?

What can the district panchayat do to strengthen the forward and backward

linkages or to fill the most critical gaps in the programs drawn up from below?

• The district panchayat plan document also has to consider the impact on the rural

areas of urbanisation and of the programs being implemented by the urban local bodies. Despite the fact that the urban areas are not under the jurisdiction of the

district panchayats, district panchayat planning has to consider the effect of the

nearby urban areas. This means that the district panchayat planning document has to take into consideration the plan documents of the relevant municipalities. It is

suggested that a district map be prepared that would identify the semi-urban zones

that surround the urban centres.

11

The structure of the plan of the district panchayat is similar to the plan document of the block panchayat. A preliminary meeting of the grama panchayat presidents and block panchayat members in the district may be convened by the district panchayat to seek suggestions and discuss plan proposals from below. As in the case of block panchayats the draft plan document of the district panchayat is to be discussed in a district Development Seminar. The block and district panchayat may also constitute task forces to assist them in the preparation of the projects and the plan document.

Consolidated District Plan

The consolidated district plan is different from plan of the district panchayat. District panchayat plans do not cover the urban areas and only includes projects and programs of

the district panchayat. Inadequate integration of the plans of the different tiers is likely to

be a major weakness of the first annual plan of the local bodies. The Consolidated District Plan is conceived as a comprehensive development plan for the district as a

whole which would provide a broad perspective of the various local plans within the

district that are to be prepared. We shall briefly present outlines of the methodology for the formulation of the district plan that avoids to an extent the heavy overhang of

planning from the top in the traditional approaches to district plan.

1. The first step in the preparation of the annual plan is to undertake a systematic resource inventory of the district and a sector wise analysis of the development

problems. The resource inventory is to be prepared using official secondary data and district level resource maps. The data collected by the local bodies for preparation of

development reports is to be used mainly as a counter check. However, as regards

sectoral development problems the Panchayat/Municipal Development Reports are to be the main source of information. The problems identified in these Reports are to be

consolidated into problem matrices similar to those employed by the block and

district panchayats in preparation of their Reports. The secondary studies and analysis available at the district level can also be used to supplement the problem

matrices.

12

2. An important feature of the district plan is to be its spatial dimension. To an extent

micro level planning from below by its very nature involves consideration of spatial

relationships. But, there is no conscious attempt to map out the spatial interrelationships between the different grassroots level local bodies. There are to be

three components to the district level spatial planning.

• Identification of the hierarchy of settlements and preparation of infrastructural plans using variants of location theories that characterised the district and block level

planning exercises in the past. In our opinion, within the limited time available it may not be possible to undertake a detailed assessment of the flow of goods and services

between the different settlements. Therefore, the district map with the hierarchy of

settlements and demarcation of economic hinterlands is to be undertaken with the help of available secondary data and informed judgement. A road map for the district

is also to be prepared that will help the local bodies in prioritising future local

projects on roads. • The second component of the spatial planning is the identification of macro and

micro watersheds within the district and broad eco-zones of the district.

• The third component is mapping of the development problems and potential in relation to the broad eco-zones identified.

3. After undertaking the above analysis of the resource potential and development

problems, a systematic review of the local annual plans is to be carried out. The methodology proposed is preparation of a consolidated list, sector by sector, of the

various development projects and schemes that are being implemented within the

district by the different tiers of government, grama, block and district panchayat and municipalities, state and central governments. Such a consolidated listing of

programmes of different tiers of government would readily reveal areas of

duplication, gaps and contradictions in the past year's annual plan. 4. The consolidated list of schemes of projects being implemented in the district must be

compared to the problems and potential identified in the first two steps. On the basis

of such a systematic analysis, guidelines as to how best the developmental interventions of the different tiers of government may be integrated avoiding

duplications, gaps and contradictions and tapping better the development potential of

the district may be drawn up.

13