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priyaberry29PUBLIC ADMINISTRATION IN INDIA
NIT-1
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INDIAN ADMINISTRATION
. HISTORICAL LEGACY:
A
ICS(Indian Civil Services) was established during Colonial rule by the Britishers. Lord
Cornwallis is known as the "Father of Civil Services" in British India. The Indian Civil
Service (ICS) played a significant role in the British colonial rule and thereafter evolved
into the Indian Administrative Service (IAS) with India's independence in 1947.
1. C HARTER ACT OF 1833:Gov. Gen. of Bengal became Gov.Gen. of India and
got all civil and military powers. This act gave the Government of India complete
authority over the entire territorial area possessed by the British in India. This act
also ended East India Company’s functioning as well. The Charter Act of 1833
opened the civil services to all. In this, a provision was made to select civil
servants through open competition.
2. CHARTER ACT OF 1853:This act separated the executiveand legislative
functions of the gov.gen’s council. This act also introduced a system of open
competition for the recruitment of civil servants. Nepotism was abolished by the
Charter Act of 1853.
3. MACAULAY COMMITTEE REPORT, 1954:Laid down rule forappointment and
training for civil servants. Appointment was now based on merit basis, the age
limit for appointment was fixed at 18-23 years.
4. MONTFORD REPORT OF 1918 AND GOI 1919:Changes broughtin by
Montford Reforms. The first competitive exam for ICS was conducted in
Allahabad in 1922. Recommendations of Montford Report crucial in the
development of Indian civil services. Its recommendations included: increase in
the number of Indians in the civil services and the provision to conduct ICS
examinations in both England and India.
5. LEE COMMISSION OR ROYAL COMMISSION, 1923:In responseto the
negative British reaction to the Indianisation of the civil services, the Lee
Commission was formed by the British government in 1923 under the
chairmanship of Lord Lee. Its main recommendations included three tier
services, recruitment of Indians and Britishers on a 50:50 basis. Subsequently
these recommendations were adopted and UPSC formed in 1926.
6. GOI, 1935:After the implementation of the Governmentof India Act 1935, the
Union Public Service Commission was taken under its control by the Federal
Public Service Commission in 1937. The Government of India Act 1935 made the
following changes
in the civil services
• The foundation of the federal government system was laid for the first time in
India.
• Protected the independence of civil servants and provided them benefits.
• Suggested the formation of the Union Public Service Commission, Provincial
Public Service Commission and Joint Public Service Commission.
. IMPACT OF COLONIAL LEGACY ON THE POST-INDEPENDENCE CIVIL
B
SERVICES IN INDIA:
● The history of the ICS is connected to British colonial rule in India, established
during British rule. The civil services developed as a powerful administrative
machinery aimed at protecting British interests and maintaining strict control over
India. After independence, the colonial legacy had a deep impact on the civil
services of independent India.
● Lord Cornwallis as the “father of Civil Services” in British India.
● ICS divided into three categories: Military Services, Naval Services and
Commercial Affairs(civil servants)
● Cornwallis divided the services into Covenanted (high posts, only Britishers were
appointed) and Uncovenanted (lower posts, appoint both Indians and Britishers)
● The civil services established during British rule aimed at protecting British
interests and maintaining administrative control in India.
● Even after independence, the Indian Civil Services continued to be deeply
influenced by colonial heritage. IAS and IPS evolved from the ICS.
MAIN POINTS OF INFLUENCE:
1. STRUCTURAL FRAMEWORK:The foundational structure ofthe Indian Civil
Services was established during the British era. Even after independence, there
were no significant changes in the administrative structure, recruitment process,
and regulations.
2. WORK STYLE:During colonial rule, civil servants followeda rigid and disciplined
work style aimed at ruling over the people. Even after independence, discipline
and formality continue to hold great importance in civil services.
3. RECRUITMENT AND TRAINING:The recruitment and trainingsystems of
Indian Civil Services also reflect colonial influence. In the ICS, education from
British universities was mandatory for appointments. Today, appointments to
Indian civil services are made through the All India Services Examination
(UPSC).
4. L
ACK OF TRANSPARENCY AND CORRUPTION:During colonial rule, civil
services faced issues of lack of transparency and corruption. This problem
continued in independent India, where civil services have often been criticized for
insufficient accountability and transparency.
C. ARRANGEMENT OF CIVIL SERVICES IN INDEPENDENT INDIA:
INTRODUCTION:
● Civil services and administration is important for any country as these officers
work to implement government policies and laws. Post independence the civil
services of India were divided into three categories:ALL INDIA SERVICES,
CENTRAL SERVICES, STATE SERVICES.
● The civil services were granted constitutional validity and efforts were made to
strengthen administrative services to increase efficiency in government
administration.
● Articles 308 to 314 of Part XIV of the Indian Constitution describe the provisions
with respect to three categories of civil services.
. A
1 LL INDIA SERVICES:
● T hese services are organised between the Centre and the state, appointed by
the Central govt according to the Constitution. AIS includes: IAS, IPS and IFoS.
● The officers of these services are trained by the Central Government, who are
appointed in different States for the work.
● They have to clear the competitive exams conducted by UPSC.
● All India Services are Class-1 (Group A) services, for which they are provided at
three levels, which include (1) Super Time Scale, (2) Senior Scale (3) Junior
Scale.
● All three All India Services are under the supervision and management of various
ministries of the Central Government.
❖ IAS: Public Grievances, Ministry of Pension
❖ IPS: Ministry of Home Affairs
❖ IFoS: Ministry of Environment, Forest and Climate Change
2. CENTRAL SERVICES:
● Work exclusively for the Central govt.
● Officers work in technical and functional service posts in various
departments of the Central Government.
● These services are mainly divided into Group-A, Group-B, Group-C and
Group-D.
● T he Indian Foreign Service (IFS) is the apex of the Central Civil Service,
whose officers serve in the Indian government's areas of foreign affairs
● Other central services: Indian Economic Service, Indian Postal Service,
Indian Revenue Service, Indian Railway Personnel Service, Indian
Auditors, Indian Telecommunication Service
3. STATE SERVICES:
● Services whose employees work only on orders under the State
Government, employees work in different positions in the general,
functional and technical field in the State Government.
● These services are at the lower level in the structures of the Indian Civil
Services, the number of which varies from state to state. There are a total
of 15 state services.
● Other services include: State Civil Service, State Police Service, State
Forest Service, Agricultural Service, Medical Service, Judicial Service,
Prison Service, Veterinary Service.
D. APPOINTMENT, TRAINING AND PROMOTION OF CIVIL SERVICES:
● Under Article 309 of the Indian Constitution, many appointments and their service
conditions are provided to civil servants in the Union and the States Appointment
of a person to the civil service is through Appointment, Deputation, Transfer,
Selection or Promotion.
● The examination system is adopted for the appointment of civil servants, thanks
to the Kothari Commission and the Satish Chandra Committee. The minimum
age to appear in the examination is fixed.
● In the year 1957, the IAS Staff College was established in Shimla, in 1959 the
National Academy of Administration was started which was called as Lal
Bahadur Shastri National IFoS etc. is imparted. Academy of Administration in
1972 for the training of IAS, in which training of IAS, IFS, IFoS etc. is imparted.
● The promotion of civil servants at both the Union and State levels of India
depends on the suggestion of the Head of the Department. Civil servants are
decided by several promotion committees.
● Also refer to SOL notes.
E. PMO(PRIME MINISTER’S OFFICE)
● The Prime Minister(P.M.) is the head of the government in India and he also has
the real executive authority.
● T o fulfil a large number of roles and responsibilities, the P.M. is helped by the
PMO. The organisation of PMO is not formed based on the constitution.
● PMO is a staff agency meant for providing secretarial assistance and crucial
advice to the PM.
● It plays an important role in the process of decision-making at the top-level in the
Government of India.
● Politically, the PMO is headed by the P.M. but administratively it is headed by the
Principal Secretary who is an IAS officer.
● The P.M.O also has 1 or 2 additional secretaries, 3 to 5 joint secretaries, several
deputy secretaries and under-secretaries.
● Besides these, the PMO also consists of other officers such as private
secretaries, officers on Special Duty(OSD), Social Secretaries, Research Officers
and Hindi Officers.
● All these officers are recruited from the civil service exam and after selection
posted on such posts for different periods.
● The principal secretary to the PM, as the administrative head of PMO plays a
significant role and performs several functions:
❖ Deals with all government files in the office.
❖ Puts before the PM all the important documents for orders and discussion.
❖ Prepares notes on matters to be discussed by the PM with important
dignitaries.
❖ Looks after the affairs of different ministries and departments which are
handed over by the PM.
❖ Coordinates activities of various personnel in the office.
❖ Tenders advice to the PM on various domestic and foreign matters.
● PMO performs the followingfunctions:
❖ Assisting the PM in respect of his overall responsibilities as the head of
the government like maintaining liaison with central ministries and the
state governments.
❖ Helping PM in respect of his responsibilities as chairman of NITI Aayog.
❖ Looking after the public relations of the PM like contact with the press and
general public.
❖ Dealing with all references which under the Rules of Business have to
come to the PM.
❖ Providing assistance to the PM in the examination of cases submitted to
him for orders under prescribed rules.
❖ Maintaining liaison with the President, Governors and Foreign
representative in the country.
❖ Acting as the ‘think-tank’ of the PM.
CHANGING ROLE OF INDIAN PMO:
● Role of PMO varied from time to time, becoming more powerful over the
decades.
● During Nehru’s tenure the role of PMO was small and limited but as Shastri took
over he strengthened the role of PMO, Indira Gandhi also followed the same
trend.
● In 1977, the Janta Party government took measures to de-emphasize the
dominant role of PMO. But after Indira returned back to power she again
strengthened the PMO.
● The later decade saw the era of coalition government where the role of PMO
kept changing.
● At present, around 350 people work under the PMO. This large establishment
runs a ‘parallel’ administration, that is, every ministry of the central government is
duplicated here, this trend has damaged the prestige of every ministry.
● Thus, PMO emerged as a rival centre of power at the official level and to that
extent the ‘legitimate’ role, significance, authority and position of the Cabinet
Secretariat and Cabinet Secretary in the Indian cabinet system have gone down
F. CABINET SECRETARIAT:
● Cabinet as the real executive.
● The Cabinet headed by the PM is responsible for the entire administration of
Government of India. In this task the cabinet is assisted by the Cabinet
Secretariat.
● Cabinet Secretariat is a staff agency to the Union Cabinet.
● Operates under the direction and leadership of PM. It has an important role in the
process of policy-making at the highest level in the central government.
● Headed politically, by the PM and administratively by the Cabinet Secretary.
● Cabinet Secretariat came into existence in 1947 after replacing the Secretariat of
the Governor-General’s Executive Council.
● There are three wings in the Cabinet Secretariat: CIVIL WING, MILITARY WING,
INTELLIGENCE WING.
● CIVIL WING: main wing, provides aid, advice and assistance to the Union
Cabinet.
● MILITARY WING: provides secretarial assistance to the Defence Committee of
the Cabinet, the Military Affairs Committee, the National Defence Council, and
other committees dealing with the defence matters.
● INTELLIGENCE WING: deals with the matters pertaining to the Joint Intelligence
Committee of the Union Cabinet.
● C abinet Secretariat also comprises of other departments:RESEARCH AND
ANALYSIS WING(RAW), DIRECTOR GENERAL OF SECURITY, SPECIAL
PROTECTION GROUP, JOINT INTELLIGENCE COMMITTEE, DIRECTORATE
OF PUBLIC GRIEVANCES
● In 1997, the National Authority, Chemical Weapons Convention was set up by a
resolution of the cabinet secretariat
● In 1988, the Directorate of Public Grievances was set up as an organ of the
Cabinet Secretariat, headed by a Director having a rank of a Secretary to the
Government of India. It deals with public grievances relating to the following
organisations to the Central Government:
❖ Departments of railways, telecommunications and posts
❖ Ministries of surface transportation, civil aviation and urban development.
❖ Insurance and Banking Division of the Department of Economic Affairs of
the Ministry of Finance.
OLES AND FUNCTIONS OF CABINET SECRETARIAT:
R
Performs the followingfunctions:
● Prepares agenda for meetings of the cabinet and provides necessary information
for its deliberation,
● It keeps record of the discussions and decisions of the Cabinet and Cabinet
Committees and circulates them to all the concerned ministries.
● It provides secretarial assistance to the Cabinet committees.
● It keeps the President, Vice-President, and all the Central ministries informed of
the main activities of the Central government.
● It prepares and finalises the rules of business of the government and allots the
business of the government among ministries of the Union government with the
President’s approval.
● It functions as the Chief coordinating agency in the central government and
settles disputes between ministries.
● It watches the implementation of the Cabinet decisions by the concerned
ministries and other executive agencies.
● It handles the work pertaining to appointment and resignation of ministers,
allotment of portfolios to ministers, and organistion and reorganisation of
ministers.
Rolesof Cabinet secretariat include:
● Secretariat of the cabinet
● Role as an originating department
● Role as a coordinating department
● Role in implementing the decision of the cabinet
CABINET SECRETARY:
● Office of Cabinet secretary created in 1950, first occupant was N.R. Pillai, head
of Cabinet Secretariat,
● Cabinet Secretary given top place among civil servants and is the senior most
civil servant in India.
● Chief coordinator of Central administration, selects officers for the post of
Secretary and Additional Secretary in the Central Secretariat.
● Acts as a Chief advisor to the PM on all aspects of administration and policy
making.
● Acts as a link between the PMO and various administrative agencies and also
between the civil service and the political system.
NIT-2
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ECENTRALIZATION AND LOCAL SELF-GOVERNMENT
D
DECENTRALIZATION:
● Democratic decentralization is the process of devolving the functions and
resources of the state from the Centre to the elected representatives at the lower
levels so as to facilitate greater direct participation of citizens in governance.
● Decentralization in the 1970s and 1980s majorly focused on the deconcentrating
hierarchical government structure and bureaucracies.
● India, being one of the largest democracies, its efforts in decentralization has
been viewed as an attempt to formulate an antidote of authoritarianism and
bureaucratization.
● Probably from the mid-1980s, the foci were broadened to include power sharing,
democratization and market liberalization, expanding the scope for private sector
decision making.
● Analyzing the system in India during the 1990s one can easily identify that
during this period, decentralization has opened up ‘governance to wider public
participation through the involvement of civil society organizations.
SIGNIFICANCE OF DECENTRALISATION:
● strengthening of democracy through increased people’s participation
● control on governance by decentralizing the powers of the center and state
governments to the lower levels like districts, blocks, and villages.
● makes democracy representative, accountable, and responsive in a true manner
and that’s why it is considered to be the crux of democratic decentralization.
● Decentralization helps in identifying the crucial and significant issues about a
particular region.
● ensures a close interaction between the government and the governed.
● The greater representation of various political, social, ethnic and tribal groups in
the decision making process, can reduce the burden on the top
executives/administrators, increase the administrative capacity and capabilities
and promote motivation of local institutions.
DECENTRALISATION IN INDIA:
● The form of local self governance finds evidence in the Rig-Veda (1700 BC)
which dealt with self-governing village bodies called ‘sabhas’ that existed within
the self-sufficient and self-governing village communities.
O
● ver time, these bodies became panchayats (councils of five persons).
● Later on, no serious attempts were undertaken to revive the huge potentials of
the village republics either by the colonial rulers or by the independent Indian
rulers except few visionary thinkers like Tagore and Gandhi
● The introduction of local government in rural areas is assumed to begin through
the Bengal Village Chowkidari Act, 1870, though the underlying objective was
solely to serve the interest of the Empire to fortify British rule in India.
● It was Mahatma Gandhi who deeply emphasized on the need of local-self
government.
● This idea of his was included as a DPSP in the Indian Constitution in the form of
Article 40, i.e. it was not bounding on the government to introduce laws about
local self government.
● The era from 1957-1986 saw increased participation by the central governments
to decentralise the system. There were four committees that actively worked for
this cause.
1. BALWANT RAI MEHTA COMMITTEE(1957):originally appointed
by the Government of India to examine community development
initiatives and to recommend improvement measures. The term
democratic decentralization appeared for the first time in this report.
The major recommendations of this committee were:
❖ Three tier system: Gram Panchayat (village level), Panchayat
Samiti (block level), Zila Parishad (district level)
❖ District Collector to be the chairman of Zila Parishad.
❖ Transfer of resources and power to these bodies to be ensured
ajasthan-first state to adopt three-tier system in 1959, Andhra Pradesh was the
R
next state, but complete implementation was not done.
2. A SHOK MEHTA COMMITTEE(1977-78): constituted by theJanata
government to inquire into the sorry situation of eating the vitals of
Panchayati Raj Institutions. This committee identified the reasons
behind the failure of PRIs: unsympathetic bureaucracy, absence of
political will, lack of involvement in planning and implementation on
a substantial scale, domination of ruling elites. Important
recommendations of this report included:
❖ Two-tier system to replace a three-tier system with major powers at
the district level.
❖ Demanded constitutional recognition for Panchayats
❖ Participation of political parties in elections at all levels.
❖ Z ila Parishad to be made responsible for planning at the state
level.
❖ A minister for Panchayati Raj to be appointed by the state council
of ministers.
❖ Constitutional recognition to be given to Panchayati Raj institutions.
Though the states of Karnataka, Andhra Pradesh, and West Bengal passed new
legislations based on the Ashok Mehta Committee Report, unfortunately, the Janata
government collapsed before action could be taken on these recommendations.
3. G V K RAO COMMITTEE(1985):Appointed by the Planning
Commission, concluded that the developmental procedures were
gradually being taken away from the local self-government
institutions, resulting in a system comparable to ‘grass without
roots. Major recommendations were:
❖ Zila Parishad to be given prime importance and all developmental
programs at that level to be handed to it.
❖ Post of District Development Commissioner to be created, who will
act as the chief executive officer of the Zila Parishad.
❖ Regular elections to be held.
4. L
M SINGHVI COMMITTEE(1986):Formulated by Rajiv Gandhi
government. Important recommendations of the committee were:
❖ Constitutional recognition for PRI institutions.
❖ Nyaya Panchayats to be established for clusters of villages.
● A fter the consistent efforts of these four committees, a proper environment was
created in the country for giving constitutional status to the local bodies.
Accordingly, the 64th CA bill was introduced in LS in July, 1989. The bill was
passed in LS but was not passed in RS.
● Under PM Narsimha Rao’s government the 73rd and 74th amendments were
passed in 1992. These acts added two new parts IX and IX-A to the Constitution
and also added 11th and 12th schedules which contain lists about the functional
items of Panchayats and Municipalities.
● Panchayati Raj system-three tier system - village, intermediate and district.
LOCAL SELF GOVERNANCE: RURAL
● 73rd Constitutional Act: decentralise power at the rural level,
● Three tier system: Gram Panchayat(village level), Panchayat Samiti(block level),
Zila Parishad (district level).
● A dded Part IX with articles from 243 to 243O in the Constitution. Also implements
Article 40 of the DPSP following the Gandhian principle.
● This has put constitutional obligation upon states to enact the Panchayati Raj
Acts as per provisions of the Part IX.
● However, states have been given enough freedom to take their geographical,
politico-administrative, and other conditions into account while adopting the
Panchayati Raj System.
● Reservation of seats for SCs, STs and OBCs. One-third of seats are reserved for
women.
● Duration of Panchayats is fixed for 5 years and elections are held at regular
intervals. Appointment of State Election Commission to conduct free and fair
elections at the local level.
● Power, authority, and responsibilities to rural local bodies to enable them to
function as the institutions of self-government.
● The state legislatures are needed to enact laws to endow powers and authority to
the Panchayats to enable them to function as institutions of local government.
● The 11th schedule enshrines the distribution of powers between the State
legislature and the Panchayats. These 29 subjects are listed in the 11th
schedule.
● The subjects include:AGRICULTURE, ANIMAL HUSBANDRY,POVERTY
ALLEVIATION PROGRAMMES, FAMILY WELFARE, EDUCATION, CULTURAL
ACTIVITIES, SMALL SCALE INDUSTRIES, PUBLIC DISTRIBUTION SYSTEM,
HEALTH AND SANITATION, SOCIAL WELFARE, ETC.
● The positive impact of the 73rd Amendment in rural India is visible as it has
changed power equations significantly.
● Through over 600 District Panchayats, around 6000 Intermediate Panchayats,
and 2.3 lakh Gram Panchayats, more than 28 lakh persons now have a formal
position in our representative democracy.
CRITICISMS:
● It does not clearly define the role of the state government.
● The Panchayats are dominated by effluents in some parts of the country.
● . The 3 tiers of the Panchayati Raj have still very limited financial powers and
their viability is entirely dependent upon the political will of the states.
● There is over-politicization of the panchayats.
● A strong centralizing tendency with the centrality of development and state has
been implicit in the decentralization initiatives in independent India.
● proxy participation of the women candidate – ‘pradhanpati syndrome’
● inadequate financial resources and inflexibility in spending the allocated budget
● little investment in enabling and strengthening local governments to raise their
own taxes and user charges untimely and delayed elections, corruption, etc.
LOCAL SELF GOVERNANCE: URBAN
● The 74th Constitution Amendment Act, 1993 mandated the devolution of powers
and thereby setting up the urban local bodies (ULBs) with city governments as
the local unit of governance at the urban level.
● Power is divided at three levels: Municipal Corporations, Councils, Nagar
Panchayats.
● Representatives that are elected regularly and have a decisive role in planning,
provision and delivery of services.
● The act has inserted Part IXA with Articles 243P to 243ZG in the Constitution.
● Nagar Panchayat for the transitional area from a rural area to an urban area.
● Municipal Council for a smaller urban area
● Municipal Corporation for a larger urban area.
● Representatives elected through direct elections that are conducted every five
years.
● Reservation of seats for SCs and STs in all Municipalities at all levels in
proportion to their respective shares in the Panchayat & one-third to be reserved
for the women.
● Powers, authority and responsibilities of Municipalities are mentioned in the 12th
schedule of the Indian Constitution.
● Power to impose taxes by, and Funds of, the Municipalities.
● A local self-government at the urban level has addressed several serious issues
of administration and governance so far.
● Most States have amended their acts to include part or in some case all of these
and only marginal changes that were regarded as mandatory have been carried
out.
● A comparison of the State legislation’ with central Act reveal that few state
governments have availed of the opportunity presented by the 74th Constitutional
Amendment to clarify municipal functions listed as ‘obligatory’ and ‘discretionary’
and avoids overlapping institutional functional and geographic jurisdictions.
● Other problems also include:
❖ acute scarcity of finance people’s
❖ participation in urban bodies is still negligible
❖ urban local bodies work within limits of state control
❖ no clear demarcation of functions between different local units of the
urban local government
NIT-3
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BUDGET
A. CONCEPT OF BUDGET
● FInancial administration is an important aspect of public administration. It
operates through the ‘instrument’ of ‘Budget’ and encompasses the entire
‘budgetary cycle’.
● The term ‘budget’ is derived from an old English word ‘Bougett’ which
means a sack or a pouch. It was a leather bag from which the British
Chancellor extracted his papers to present to the Parliament the
government’s financial programme for the ensuing financial year.
● From that association it came to mean the papers themselves, especially
those containing financial proposals.
The following points highlight thefunctions or purposesof the budget.
1. It ensures the financial and legal accountability of the executive to the legislature.
2. It ensures the accountability of subordinates to superiors in the administrative
hierarchy.
3. It is an instrument of social and economic policy to serve the functions of
allocation, distribution and stabilisation.
4. It facilitates the efficient execution of the functions and services of government.
5. It facilitates administrative management and coordination as it unifies the various
activities of the government departments into a single plan.
CHARACTERISTICS OF BUDGETING:
1. B
UDGET ON ANNUAL BASIS:This means that the legislatureshould grant
money to the executive for one year only. This principle of annuality of budget is
considered ideal because:
( a) a year is the optimum period for which the legislature can afford to give
financial authority to the executive;
( b) a year is the minimum period needed by the executive to implement the
budget effectively; and
( c) a year corresponds with the customary measure of human estimates.
Presently, the financial year in India is from 1st April to 31st March. However, the
Administrative Reforms Commission of India (ARC) recommended that the
financial year should be from 1st November to 31st October.
2. E STIMATES SHOULD BE ON DEPARTMENTAL BASIS:This meansthat the
expenditure and revenue estimates of the budget should be prepared by the
department directly dealing with them, irrespective of the fact that such
expenditure or revenue is on account of another department. The observance of
this principle is suggested because:
(a) it gives a clear picture of the programmes and activities of every department;
and
(b) it ensures the financial solvency of every department. However, to avoid any
confusion in this regard, the department preparing the estimates should give
footnotes indicating the expenditure or revenue of that department dealt by
another department.
3. BUDGET SHOULD BE A BALANCED ONE:a ‘balanced budget’is one in which
the estimated expenditure matches the estimated revenue. If the estimated
revenue is more than the estimated expenditure, it is called a ‘surplus budget’,
and if the estimated revenue is less than the estimated expenditure, it is called a
‘deficit budget’.
4. ESTIMATES SHOULD BE ON CASH BASIS:This means thatthe expenditure
and revenue estimates of the budget should be prepared on the basis of what is
expected to be actually spent or received during the financial year. The opposite
of ‘cash budgeting’ is called ‘revenue budgeting’, under which the budgeting
estimates are prepared on a demand and liability basis, that is, the revenue and
expenditure accrued in a financial year are included in the budget of that financial
year regardless of whether they are actually realised or incurred in that financial
year.
5. ONE BUDGET FOR ALL FINANCIAL TRANSACTIONS:This meansthat the
government should incorporate all its revenues and expenditure (of all the
departments) in a single budget. The opposite of ‘single budget’ is ‘plural budget’
under which separate department-wise budgets are prepared. The single budget
system reveals the overall financial position of the government as a whole, that
is, overall surplus or deficit.
6. BUDGETING SHOULD BE GROSS AND NOT NET:This meansthat all
transactions of receipts and expenditure of the government should be fully and
separately shown in the budget and not merely the resultant net position. The
practice of deducting receipts from expenditure orvice versa, and preparing the
budget for net receipts or expenditure is not a sound principle of budgeting.
7. E STIMATING SHOULD BE CLOSE:This means that the budgetary estimates
should be as exact as possible. This is because overestimating leads to
excessive taxation and underestimating leads to ineffective execution of the
budget.
8. RULE OF LAPSE: The budget should be on an annual basis,that is, the
legislature should grant money to the executive for one financial year. If the
granted money is not spent by the end of the financial year, then the balance
would expire and should be returned to the treasury. This practice is known as
the ‘rule of lapse’. The rule of lapse facilitates effective financial control by the
legislature as no reserve funds can be built up without its authorisation.
IMPORTANT PRINCIPLES OF BUDGETING:
1. Publicity:There should be wide publicity of thebudget so that the public,
newspapers and public representatives can present their views in the context of
various schemes of different taxes or expenses. Due to the proper publicity and
publication of the budget, the public and journalists can give their opinion about
it.
.Clarity:Every citizen should understand the budgetwith ease and effortlessly.
2
The significance of the budget is that it should be so clear that the citizens can
understand it easily and can express their views.
.Accuracy:All the information which is based onestimated budget should be
3
submitted sequentially and in detail so that the evaluation can be done easily.
There should not be an attempt to destroy the precision of the budget by hiding
the facts, declaring the revenue low.
.Unity:For the financial arrangements of all expenses,all the receipts of the
4
government should be collected in a common fund. Separating revenue is the
hallmark of an ideal budget.
. Comprehensiveness:The entire fiscal programmeof the government should
5
be concluded in the budget. The budget should be understood by the general
public. Estimates of new taxes and new expenses should be made available to
the common man through the study of the budget. New loans should be clearly
mentioned in the budget.
.Integrity:The fiscal programme should be shapedin the same way as the
6
legislature has made. With the spirit on which the budget has been formed
should also be implemented with the same spirit. The administration should fulfill
the objectives set at the time of budget formation with complete honesty and
efficiency.
.Periodicity:The government should have the rightto only spend till the
7
budget period, that is, after the fixed period, the money should be reauthorized.
For this reason, the legislature should pass the budget in time.
B. BUDGET CYCLE IN INDIA:
INTRODUCTION:
● The budget cycle describes the activities and procedures to develop a budget for
a financial year (from 1 April to 31 March).
● The function of a budget cycle is to define the stages from the beginning to the
end of the process. However, the budget is actually a continuous process, which
is why the term budget cycle is used in this context.
HISTORY OF BUDGET SYSTEM IN INDIA:
● PRE-COLONIAL PERIOD:advanced budget system foundin evidence, mention
of a budget system in Kautilya’s Arthashastra. Role of the Finance Minister was
explicitly mentioned in the Arthashastra.
● The details of receipts coming from all the sources and the possible balance at
the end of the year kept all receipts and expenditure of revenue capital accounts
in full and micro accounts. All proposed new and investment-oriented
expenditure plans were made and included in the budget.
● COLONIAL PERIOD:During British rule, East India Companyhad control over
the financial matters. Till 1833, there was no centralised financial system.
● After 1857, British Empire took control of the administration of India, the financial
system became in line with the system prevailing in Britain.
● The first formal budget in India was presented in 1860 by Sir James Wilson.
● In short, the system of financial control was very rigorous, rule-oriented and
complex during the time of budget formulation and approval of expenditure.
● This system naturally discouraged any important initiative motivation towards
change and development. Hence control over financial administration was only
helpful to imperialist interests.
BUDGET SYSTEM IN POST-COLONIAL PERIOD:
● After independence, there were major changes in the objectives, policy
structures of financial administration.
● U nquestionably, the basic features of the Government of India Act 1935 were
retained, but there was no inconsistency between these instruments and national
priorities.
● The budget procedure in India follows the provisions given in Articles 112 to 117
of the Constitution.
● Accordingly, the annual budget of the Union, which is called the 'Financial
Statement' of the Income-Expenditure Estimates, should be presented to both
the Houses of Parliament in respect of each financial year.
● The budget shows the receipts and payments of the government in three parts,
under which government accounts are classified:
1. CONSOLIDATED FUND:All the revenue received by thegovernment,
such as customs, excise, income tax, estate duty, other taxes and duties
and the money received by the government from the recovery of loans,
are all deposited in the Consolidated Fund. Govt. bears all its expenses
with this fund.
2. CONTINGENCY FUND:Article 267, Parliament has beengiven the power
to set up a fund. The fund is periodically deposited through laws passed
by Parliament. This fund is under the control of the President and to meet
the contingent needs of the country, funds are made available by the
President to the government through this fund.
3. PUBLIC ACCOUNT:For general income expenditure bythe government
in relation to which the government acts like a banker. The money which is
deposited in the account does not belong to the government and this
money has to be returned at a time to the individuals or officials who
deposit it.
TAGES OF BUDGET CYCLE:
S
There are four-stages in India’s budget cycle which go on in a circular manner in order
to provide timeliness to executive and legislative processes. These four processes are:
1. Preparation of income-expenditure estimates for the coming financial year;
2. Receipt by Parliament in the form of Revenue Acts and Appropriation Acts;
3. Implementation of Revenue Acts and Appropriation Acts; And 4.
4. Review and control of financial activities by audit on behalf of the Parliament.
a. BUDGET PREPARATION:
❖ The budget formulation process in India formally begins in
September/October, about six months before the budget presentation.
❖ The process starts with the receipt of a circular from the Ministry of
Finance.
❖ T hese circulars include: (i) Plan and non-plan miscellaneous items, (ii) A
list indicating the timeline for submitting final estimates, (iii) Guidelines for
evaluating the budget estimates prepared by each department.
❖ Ministries and Departmentsprepare their budget estimatesbased on
budget and accounting classifications.
❖ These estimates are thenanalyzed by the respectiveFinancial
Advisors.
❖ Plan itemsin the Union Budget are finalized in consultationwith theNITI
Aayog.
❖ The plan component is based on theAnnual Plan.
b. ENACTMENT OF THE BUDGET:
FIVE STAGES OF BUDGET IN PARLIAMENT
udget
B General Voting on Demand Passing of Passing
resentation
P Discussion for Grants Appropriation of finance
Bill bill
● B UDGET PRESENTATION:TheBudget Sessionof the IndianParliament
begins inmid-Februaryeach year. Earlier the budgetwas presented into two
parts one general budget and the other being the railway budget. It is presented
in the Parliament by the Finance minister. Inearly2016, theNITI Aayog
recommended merging the Railway and General Budgets. From thefinancial
year 2017–18, acombined budgethas been presentedin Parliament.
● GENERAL DISCUSSION:General discussion on the budgetbegins a few
days after it is presented in Parliament. It usually continues forthree to four
daysinboth Housesof Parliament. During this stage:(i) TheLok Sabhacan
discuss theentire budgetor anytheoretical aspectof it. (ii)No motionscan
be introduced. (iii) Thebudget is not put to vote.At theend of the discussion,
theFinance Ministergives ageneral replyto thepoints raised.
● VOTING ON DEMAND FOR GRANTS:After thegeneral discussionends, the
Lok Sabha begins voting on the Demands for Grants.These grants arenot
charged expenditureson theConsolidated Fund of India.Separate voting
can take place foreach demand. During this stage:MPs can discuss budget
etailsorreduce or cut a particular grant, calledCut Motions. There are
d
three types of Cut motions:
i.Policy Cut Motion: Impliesrejection of the policybehind the demand. The
amount of the demand can bereduced to ₹1to expressdisapproval.Represents
a disagreement with theentire policyor a specificitem.
Ii.Economic Cut Motion:Proposed toreduce the allocatedamountin a
demand based oneconomic grounds. Used when an MPfeelsunnecessary
expenditureis being made.
Iii.Token Cut Motion:Aims tohighlight a specificissue or grievanceunder the
jurisdiction of the Government of India.₹100 is deductedfrom the total amount
of the demand to register the protest.
Voting Process:
❖ Only the Lok Sabhaparticipates in voting on Demandsfor Grants.
❖ Rajya Sabha does not have a rolein this process.
❖ 26 daysare set aside for this voting, similar toBritish parliamentary practice.
❖ Due to limited time,many demands are passed withoutdiscussion.
❖ T
heSpeaker, in consultation with theLeader of theHouse, decides the time
allocated for each demand or group of demands.
❖ W
hen the allotted time ends, all pending demands areput to vote
automatically, regardless of discussion—this is calledthe‘Guillotine’.
● P ASSING OF APPROPRIATION BILL:Thenext stepin thebudget process is
the passing of theAnnual Appropriation Bill. It includesallexpenses and
investmentsfor public welfare by the Government ofIndia and bothgrantsand
charged expendituressanctioned by the Lok Sabha.The purpose is to
authorize withdrawalof funds from theConsolidatedFund of India. The
Appropriation Act process takes time and may extend till the endof April.
However, the government requires funds from1st Aprilfor daily operations. The
Constitution allows theLok Sabhato grant anadvanceamountfor part of the
year. This is known as Vote of Account.
● PASSING OF FINANCE BILL:A finance bill is introducedin the house to collect
funds through taxes. The bill contains financial proposals of the government for
the next year.TheFinance Billincludes: The government’sfinancial proposals
for the upcoming financial year and details oftaxes,duties, fees, and other
charges levied by the Government of India.
c. EXECUTION OF BUDGET:
❖ Implementation is the responsibility of the executive government. The
implementation process depends on the delegation of power at various
operating levels.
❖ As soon as the Appropriation Act is passed, the Ministry of Finance
advises the spending ministries and departments about their allocated
funds. Then the controlling officers of each ministry and department
provide allocation and advice to different disbursing officers.
❖ The expenditure is organized in such a way that the amount given in the
hands of the spending authority is not spent before the additional amount
is received.
❖ The Department of Revenue in the Ministry of Finance controls and
supervises the system of collection of direct and indirect taxes.
d. AUDIT:
❖ Public fundsare spent by theexecutive, but onlyasauthorized by the
legislature.
❖ To ensure accountability, thegovernment conductsan auditof public
expenditure.
❖ This audit is done by anindependent agency.
❖ TheConstitutionprovides for thepost of CAGto auditgovernment
spending.
❖ This audit process marks thefinal stageof thebudgetcycle.
ONCLUSION:Thus, we can say that there is a longprocedure of budget formulation
C
and enactment in India. Many reforms were brought by colonial rule, especially in 1919
and thereafter in 1935. The system of finance inherited by India in 1947 was highly rigid,
rule-oriented and complex. Essentially it was for the achievement of fundamental
colonial objectives and not for the solution of national problems. Undoubtedly, public
welfare is the main objective of the budget. Therefore, according to their expectations
and requirements for the development of Indian people, the budget is presented every
year by the government.
TYPES OF BUDGET:
. L
a INE ITEM BUDGET
● This is also called traditional budgeting or conventional budgeting. This system of
budgeting developed in the 18th and 19th century.
● The traditional budget primarily took the form of line item budgeting which means
listing every position and piece of equipment on a separate line in the
expenditure estimates.
● It emphasises on the items (objects) of expenditure without highlighting its
purpose and conceives budget in financial terms. In other words, it presents a
budget in terms of objectwise (line-item) classification.
● Under this system, the amount granted by the legislature on a specific item
should be spent on that item only.
● Firstly the actual expenditure of each object in the last complete financial year
was shown.
● Secondly, the estimated amounts to be spent during the current financial year.
● Thirdly, the sums that are desired for each object for the future financial year.
● This type of a budget could be quickly put together without carefully planning
future work programs.
● All that was necessary was to obtain a list of existing positions making the usual
request plus some additional ones and for certain salary increases and then
make a quick liberal guess on what would be needed for such objects.
● The objectives of this budgeting are to prevent wastage, overspending and
misuse of money granted by the legislature to the executive. This system of
budgeting facilitates maximum control of public expenditure.
● In fact, the sole object of line-item budgeting has been the accountability of
funds, that is, ensuring legality and regularity of expenditure. This system is also
called ‘incremental budgeting’ as the funds are allotted on an incremental basis
after identifying the existing base.
● Prior to the Hoover Commission(1949-50) all the budgets were presented in the
line-item format, this was later replaced by the performance budgeting after the
recommendations made by the Commission.
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b ERFORMANCE PLANNING BUDGET
● The system of performance budgeting (earlier called functional budgeting or
activity budgeting) originated in the USA. The term ‘performance budget’ was
coined by the First Hoover Commission (1949).
● This commission recommended the adoption of performance budgeting in the
USA to make an effective management approach to budgeting. Accordingly, it
was introduced in 1950 by President Truman.
● U nlike the line-item budgeting, the performance budgeting emphasises on the
purpose of expenditure rather than the expenditure itself.
● It presents a budget in terms of functions, programmes, activities and projects. It
establishes a correlation between the physical (performance or output) and
financial (input) aspects of each programme and activity. Hence, it necessitates a
functional classification of the budget.
● In India, in 1968 the ARC recommended the performance budget for the first
time.
● Performance budgeting ensures activities are performed with maximum economy
and efficiency.
● The emphasis in performance budgeting is at the operating level where
resources are utilized, services are rendered and the work is accomplished.
● The preparation of the performance budget requires follow up action, thus, a
periodical review of performance while operating the budget forms an essential
aspect of the scheme of performance budgeting.
● A
performance budget is prepared in 4 stages:
(i) Introduction; (ii) Overall performance; (iii) Financial requirements;
(iv) Explanation of financial requirements
● Advantages of performance budget are as follows:
❖ It presents more clearly, the purposes and objectives for which the funds
are sought by the executive from the parliament.
❖ It brings out the programmes and accomplishments in financial and
physical terms.
❖ It facilitates a better understanding and better review of the budget by the
Parliament.
❖ It improves the formulation of the budget.
❖ It facilitates the process of decision-making at all levels of government.
❖ It increases the accountability of the management.
❖ It provides an extra tool of management control of financial operations.
❖ It renders performance audits more purposeful and effective.
. Z
c ERO-BASED BUDGETING:
● The ZBB also originated and developed in the USA. It was created in 1969 by
Peter A. Pyhrr, a manager of a private industry. It was introduced in the USA by
President Jimmy Carter in 1978.
● L ike performance budgeting, the ZBB is also a rational system of budgeting.
Under this system, every scheme should be reviewed critically and unjustified
totally from zero (or scratch) before being included in the budget.
● ZBB involves a total reexamination of all schemes afresh (from base zero)
instead of following the incremental approach to budgeting which begins with the
estimation of the current expenditure.
● C.V. Srinivasan defined ZBB as “an operating, planning and budgeting process
which requires each manager to justify his entire budget request in detail from
scratch (hence the term zero-base), and shifts the burden of proof to each
manager, to justify why he should spend any money at all, as well as how the job
can be done better.”
● Theadvantages/benefitsof ZBB technique are:
❖ It eliminates or minimises the low priority programmes.
❖ It improves the programme effectiveness dramatically.
❖ It makes the high impact programmes to obtain more finances.
❖ It reduces the tax increase.
❖ It facilitates critical review of schemes in terms of their cost-effectiveness
and cost benefits.
❖ It provides for quick budget adjustments during the year.
❖ It allocates scarce resources rationally.
❖ It increases the participation of the line personnel in the preparation of the
budget.
● In India, the ZBB was first introduced in the Department of Science and
Technology in 1983 and in all the ministries during the 1986–87 fiscal year.
ROLE OF FINANCE MINISTRY IN BUDGET MAKING:
● In the entire process from budget formulation to enactment the Ministry of
Finance plays a key role.
● The activities relating to preparation of budgetary estimates, consolidation of
estimates of revenues and expenditure and presenting in the form of annual
financial statements is the function of the Ministry of Finance.
● It has the responsibilities of:
❖ Advising on fiscal and monetary policies; Raising the financial resources
to meet the expenditure targets;
❖ Examining the desirability of the demands of various ministries and
departments; Consolidation and scrutiny of budget estimates;
❖ P reparation of appropriation and finance bills in consonance with
constitutional provisions; Review of standing charges, outgoing schemes,
new projects;
❖ Preparation of economic classification of budget; Scrutinising all proposals
of spending departments;
❖ Maintaining the financial discipline; Ensuring compliance with the
budgetary laws; Enforcing effective control of budgetary expenditure;
❖ The Ministry of Finance with various departments and divisions has an
important role in the gigantic task of the budgetary cycle from preparation
to execution. Its main concern is to ensure a proper balance between
revenues and expenditure and judicious use of public resources.
NIT-4
U
ECHNOLOGY AND PUBLIC ADMINISTRATION IN INDIA
T
a. E-GOVERNANCE: THE JOURNEY OF E-GOVERNANCE IN INDIA
EFINITION OF E-GOVERNANCE:
D
Electronic governance or e-governance implies government functioning with the
application of ICT (Information and Communications Technology). Hence e-Governance
is basically a move towards SMART governance implying: simple, moral, accountable,
responsive and transparent governance.
WHAT IS SMART GOVERNANCE?
● Simple— implies simplification of rules and regulations of the government and
avoiding complex processes with the application of ICTs and therefore, providing
a user-friendly government.
● Moral— meaning the emergence of a new system in the administrative and
political machinery with technology interventions to improve the efficiency of
various government agencies.
● Accountable— develop effective information management systems and other
performance measurement mechanisms to ensure the accountability of public
service functionaries.
● Responsive— Speed up processes by streamlining them, hence making the
system more responsive.
● Transparent— providing information in the public domain like websites or
various portals hence making functions and processes of the government
transparent.
INTERACTIONS IN E-GOVERNANCE:
There are 4 kinds of interactions in e-governance, namely:
1. G2C (Government to Citizens): Interaction between the government and the
citizens
2. G2B (Government to Business): It enables the business community to interact
with the government by using e-governance tools.
3. G2G (Government to Government):Enables seamless interaction between
various government entities.
4. G2E (Government to Employees):This kind of interaction is between the
government and its employees.
ADVANTAGES OF E-GOVERNANCE:
● Improves delivery and efficiency of government services
● Improved government interactions with business and industry
● Citizen empowerment through access to information
● More efficient government management
● Less corruption in the administration
● Increased transparency in administration
● Greater convenience to citizens and businesses
● Cost reductions and revenue growth
● Increased legitimacy of government
● Flattens organisational structure (less hierarchic)
● Reduces paperwork and red-tapism in the administrative process which results in
better planning and coordination between different levels of government
● Improved relations between the public authorities and civil society
● Re-structuring of administrative processes
PHASES OF E-GOVERNANCE IN INDIA:
1. Computerisation: In the first phase, with the availability of personal computers,
a large number of Government offices were equipped with computers. The use of
computers began with word processing, quickly followed by data processing.
2. Networking: In this phase, some units of a few government organizations got
connected through a hub leading to sharing of information and flow of data
between different government entities.
3. On-line presence:With increasing internet connectivity, a need was felt for
maintaining a presence on the web. This resulted in maintenance of websites by
government departments and other entities.
4. On-line interactivity:A natural consequence of on-line presence was opening
up of communication channels between government entities and the citizens,
civil society organizations etc. The main aim at this stage was to minimize the
scope of personal interface with government entities by providing downloadable
Forms, Instructions, Acts, and Rules etc.
-GOVERNANCE INITIATIVES IN INDIA:
E
E-governance initiatives have become a cornerstone of India's governance landscape,
leveraging technology to enhance service delivery, improve administrative processes,
and promote citizen participation. The following are the landmarks initiatives taken in
India to promote e-governance:
1. 1
970:establishment of Department of Electronics(DoE) in recognition of the
growing significance of electronics.
2. 1 977:Establishment of NIC(National Informatics Centre) on the advise of
Planning Commission
3. 1980s: gradual and consistent rise in the usage of database software for storage
purposes, numerous government departments began using IT for other
interdepartmental operations including payroll.
4. 1987:national satellite NICNET was launched, serving as the primary impetus
for the; implementation of digital technologies in governance.
5. 1990s:advancement of tele-connectivity and Internet connectivity, a
considerable quantity of electronic devices emerged.
6. 2000:Information Technology Act of 2000, the Indian government issued the “IT
Act” in 2000.
7. 2006:The National e-governance Plan (NeGP), which was introduced by the
Government of India in 2006, is a significant development in the field, had 26
mission models
8. 2008:The National Service Delivery Gateway-NSDG was established as a
standards-based initiative
9. 2014 and 2015:The inception of e-Kranti and MyGov: The establishment of the
Indian citizen engagement platform known as ‘Mygov.in’ took place in 2014.
MyGov, which was launched on July 26, 2014, is a citizen engagement platform
operated by the Government of India. Its primary objective is to foster a
connection between the government and its citizens in order to advance public
interest and active engagement of Indian citizens in the administration and
development of the nation.
10. E-Kranti:National e-governance Plan 2 was launched in 2015 with the objective
of “Transforming e- governance for Transforming Governance” and comprised
forty four Mission Mode Projects.
11.2015:Digital India scheme to digitally develop the country with initiatives
including DigiLocker, e-hospital, MyGov, etc.
12.The Ministry of Electronics and Information Technology (MeitY) has spearheaded
several mobile applications that have had a significant impact on governance.
One such application is mPassport Seva, which enables citizens to apply for
passports and access passport-related services through their mobile devices. It
simplifies the passport application process, reduces paperwork, and enhances
convenience for citizens.
13.E-governance initiatives in India have played a crucial role in promoting digital
payments and financial inclusion, transforming the way financial transactions are
conducted and fostering a cashless economy. The introduction of innovative
platforms such as the Unified Payments Interface (UPI).
Aspect E-Government E-Governance
Scope arrower; focused mainly on the B
N roader; includes delivery of services
delivery of government services plus citizen participation,
through ICT. empowerment, and engagement in
governance processes.
Purpose o make government services
T o promote good governance by
T
more accessible, efficient, and involving citizens in decision-making
convenient. and ensuring transparency and
accountability.
Focus utomation of services (e.g.,
A itizen engagement (e.g., online
C
online passport applications, public consultations, e-democracy,
utility bill payments, land record e-participation, online polling).
access).
itizen
C ostly passive recipients of
M ctive participants in governance and
A
Role services. decision-making processes.
xample G
E rievance redressal systems, igital debates, e-voting, participatory
D
s issuance of digital certificates, budgeting, online forums for public
community radio license interest discussions.
applications.
End Goal E
fficient service delivery and Inclusive, transparent, participatory
administrative convenience. governance and citizen empowerment.
Nature Service-driven. Governance-driven.
IMPACT OF E-GOVERNANCE IN INDIA:
1. Improved efficiency and effectiveness: Digital platforms and automation have
reduced bureaucratic delays. Faster, more accurate service delivery (e.g.,
e-District project for certificates).
2. Increased transparency and accountability: Online portals provide access to
government information and expenditures. Helps reduce corruption and build
citizen trust.
3. Enhanced citizen engagement and participation: Platforms likeMyGovallow
citizens to share ideas, give feedback, and participate in policy making.
4. B oosted financial inclusion: Aadhaar integration with banking services has
brought unbanked populations into the financial system.Supports economic
growth and reduces income inequality.
5. Improved access to healthcare and education: e-Hospital and telemedicine
services make healthcare accessible, especially in remote areas. e-Learning
platforms enhance educational opportunities for all.
6. Overall transformation of governance: Governance has become more
citizen-centric, efficient, transparent, and inclusive.
LIMITATIONS TO E-GOVERNANCE:
1. L ow public usage: Citizens may not regularly use e-governance services due to
unfamiliarity with ICT and lack of trust.
2. Lack of ICT access and training: Limited access to digital devices, internet, and
training hampers widespread use.
3. Privacy and security concerns: Citizens hesitateto use digital services without
strong data protection measures.
4. Language barriers: Content not availablein local languages reduces
accessibility, especially in rural areas.
5. Gender-specific digital divide: Customized contentand efforts for women users
are lacking, deepening gender disparities.
6. Slow execution of initiatives: Programs likeDigitalIndiaare running behind
schedule in many areas.
7. Wide digital divide: Sharp inequalitiesexist between rich and poor, men and
women, and urban and rural areas.
8. Poor internet connectivity: Despite high mobilepenetration, broadband and
internet access remain very low, especially in rural areas.
9. Cybersecurity risks: Digital platforms are vulnerable to cyber attacks, and
security needs urgent strengthening.
10. Low effectiveness of public welfare delivery: Despite government funding,
outcomes are poor due to knowledge gaps among marginalized communities.
CONCLUSION:
● E -governance initiatives in India have emerged as crucial drivers of
administrative efficiency, transparency, and citizen empowerment.
● Through initiatives such as the Digital India Initiative, Aadhaar, GSTN, mobile
governance, e-government portals and services, and digital payments, the Indian
government has made significant progress in transforming service delivery,
improving governance outcomes, and promoting financial inclusion.
● T hese initiatives have facilitated access to government services, reduced
bureaucratic processes, enhanced transparency, and empowered citizens.
● However, challenges such as the digital divide, low digital literacy levels, data
security concerns, and infrastructure limitations need to be addressed to ensure
the effective delivery of e-governance.
DIGITAL INDIA MISSION
igital India was an initiative taken by the Government of India for providing high-speed
D
internet networks to rural areas. Digital India Mission was launched by PM Narendra
Modi on 1st July 2015 as a beneficiary to other government schemes including Make in
India, Bharatmala, Sagarmala, Startup India, BharatNet, and Standup India.
Digital India Mission is mainly focused on three areas:
. P
1 roviding digital infrastructure as a source of utility to every citizen.
2. Governance and services on demand.
3. To look after the digital empowerment of every citizen.
igital India was established with a vision of inclusive growth in areas of electronic
D
services, products, manufacturing, and job opportunities.
igital India aims to provide the much-needed thrust to the nine pillars of growth areas.
D
Each of these areas is a complex programme in itself and cuts across multiple
Ministries and Departments.
9 PILLARS OF DIGITAL INDIA:
● B ROADBAND HIGHWAYS:This covers three sub components, namely
Broadband for All – Rural, Broadband for All – Urban and National Information
Infrastructure (NII).
● UNIVERSAL ACCESS TO MOBILE CONNECTIVITY: This initiative focuses on
network penetration and filling the gaps in connectivity in the country.
● PUBLIC INTERNET ACCESS PROGRAM: The two sub components of Public
Internet Access Programme are Common Services Centres (CSCs) and Post
Offices as multi-service centres.
● e-GOVERNANCE: Reforming Government through Technology- Government
Process Re-engineering using IT to simplify and make the government
processes more efficient is critical for transformation to make the delivery of
government services more effective across various government domains and
therefore needs to be implemented by all Ministries/ Departments.
● e -KRANTI: Electronic Delivery of Services- To improve the delivery of public
services and simplify the process of accessing them. In this regard, several
e-governance initiatives have been undertaken by various State Governments
and Central Ministries to usher in an era of e-Government. e-Governance in India
has steadily evolved from the computerization of Government Departments to
initiatives that encapsulate the finer points of Governance, such as citizen
centricity, service orientation and transparency.
● INFORMATION FOR ALL: This pillar aims to ensure transparency and
availability of reliable data generated by the line ministries for use, reuse and
redistribution for the people of India.
● ELECTRONICS MANUFACTURING: This pillar focuses on promoting
electronics manufacturing in the country.
● IT FOR JOBS: This pillar focuses on providing training to the youth in the skills
required for availing employment opportunities in the IT/ITES sector.
● EARLY HARVEST PROGRAMMES: This pillar consists of a group of different
short-term projects which have immediate effect on the Indian digital ecosystem
like IT platform for mass messaging, crowd Sourcing of eGreetings, biometric
attendance in the government offices, WI-FI in all universities etc.
ADVANTAGES OF DIGITAL INDIA MISSION:
. T
1 here is an increase in electronic transactions related to e-governance.
2. An optical fiber network of 2, 74,246 km has connected over 1.15 lakh Gram
Panchayats under the Bharat Net programme.
3. A Common Service Center (CSC) is created under the National e-Governance
Project of the Indian government which provides access for information and
communication technology (ICT). Through computer and Internet access, the
CSCs provide multimedia content related to e-governance, education, health,
telemedicine, entertainment, and other government and private services.
4. Establishment of digital villages along with well-equipped facilities such as solar
lighting, LED assembly unit, sanitary napkin production unit, and Wi-Fi choupal.
5. Internet data is used as a major tool for the delivery of the services and the urban
internet penetration has reached 64%.
CHALLENGES OF DIGITAL INDIA:
1. T he daily internet speed, as well as the Wi-Fi hotspots, are slow as compared to
other developed nations.
2. Most of the small and medium scale industry has to struggle a lot for adapting to
the new modern technology.
3. Limited capability of entry-level smartphones for smooth internet access.
. L
4 ack of skilled manpower in the field of digital technology.
5. To look for about one million cybersecurity experts to check and monitor the
growing menace of digital crime.
6. Lack of user education.
DIGITAL INDIA INITIATIVES:
1. D igiLockers– This flagship initiative aims at ‘Digital Empowerment’ of the citizen
by providing access to authentic digital documents to citizen’s digital document
wallet
2. E-Hospitals– It is a Hospital Management Information System (HMIS) which is
a one-stop solution in connecting patients, hospitals and doctors through a single
digital platform. Till February 2021, as many as 420 e-Hospitals had been
established under the Digital India campaign
3. E-Pathshala– Developed by NCERT, e-Pathshala showcases and disseminates
all educational e-resources including textbooks, audio, video, periodicals and a
variety of other print and non-print materials through the website and mobile app
4. BHIM– Bharat Interface for Money is an app that makes payment transactions
simple, easy and quick using Unified Payments Interface (UPI).
IMPACT OF DIGITAL INDIA CAMPAIGN:
Since its launch in 2015, the Digital India campaign has left its impact in various fields:
● A round 12000 post office branches in the rural areas have been linked
electronically.
● The Make in India initiative has improved the electronic manufacturing sector in
India
● Digital India plan could boost GDP up to $1 trillion by 2025
● Healthcare and education sector has also seen a boost
● Improvement in online infrastructure will enhance the economy of the country.
NIT-5
U
OCIAL WELFARE POLICIES
S
A. RIGHT TO EDUCATION
he Act is completely titled “the Right of Children to Free and Compulsory
T
Education Act”. It was passed by the Parliament in August 2009. When the Act
came into force in 2010, India became one among 135 countries where
education is a fundamental right of every child.
● The 86th Constitutional Amendment (2002) inserted Article 21A in the Indian
Constitution which states:
❖ “The State shall provide free and compulsory education to all children of 6
to 14 years in such manner as the State may by law determine.”
● As per this, the right to education was made a fundamental right and removed
from the list of Directive Principles of State Policy.
● The RTE is the consequential legislation envisaged under the 86th Amendment.
● The article incorporates the word “free” in its title. What it means is that no child
(other than those admitted by his/her parents in a school not supported by the
government) is liable to pay any kind of fee or charges or expenses which may
prevent him or her from pursuing and completing elementary education.
● This Act makes it obligatory on the part of the government to ensure admission,
attendance and completion of elementary education by all children falling in the
age bracket six to fourteen years.
● Essentially, this Act ensures free elementary education to all children in the
economically weaker sections of society.
RTE PROVISIONS:
● T he right of free and compulsory education to children until they complete their
elementary education in a school in the neighbourhood.
● The Act makes it clear that ‘compulsory education’ implies that it is an obligation
on the part of the government to ensure the admission, attendance and
completion of elementary education of children between the ages of six and
fourteen. The word ‘free’ indicates that no charge is payable by the child which
may prevent him/her from completing such education.
● The Act provides for the admission of a non-admitted child to a class of his/her
appropriate age.
● It mentions the duties of the respective governments, the local authorities and
parents in ensuring the education of a child. It also specifies the sharing of the
financial burden between the central and the state governments.
● It specifies standards and norms for Pupil Teacher Ratios (PTR), infrastructure
and buildings, working days of the school and for the teachers.
● It also says there should be no urban-rural imbalance in teacher postings. The
Act also provides for the prohibition of the employment of teachers for
non-educational work, other than census, elections and disaster relief work.
● The Act provides that the teachers appointed should be appropriately trained and
qualified.
● The Act prohibits:
❖ Mental harassment and physical punishment.
❖ Screening procedures for the admission of children.
❖ Capitation fees.
❖ Private tuition by the teachers.
❖ Running schools with no recognition.
● The Act envisages that the curriculum should be developed in coherence with the
values enshrined in the Indian Constitution, and that which would take care of the
all-round development of the child.
SIGNIFICANCE OF RTE:
ith the passing of the Right to Education Act, India has moved to a rights-based
W
approach towards implementing education for all. This Act casts a legal obligation on
the state and central governments to execute the fundamental rights of a child (as per
Article 21 A of the Constitution).
● The Act lays down specific standards for the student-teacher ratio, which is a
very important concept in providing quality education.
● It also talks about providing separate toilet facilities for girls and boys, having
adequate standards for classroom conditions, drinking water facilities, etc.
● The stress on avoiding the urban-rural imbalance in teachers’ posting is
important as there is a big gap in the quality and numbers regarding education in
the villages compared to the urban areas in the country.
● The Act provides for zero tolerance against the harassment and discrimination of
children. The prohibition of screening procedures for admission ensures that
there would be no discrimination of children on the basis of caste, religion,
gender, etc.
● The Act also mandates that no kid is detained until class 8. It introduced the
Continuous Comprehensive Evaluation (CCE) system in 2009 to have
grade-appropriate learning outcomes in schools.
● The Act also provides for the formation of a School Management Committee
(SMC) in every school in order to promote participatory democracy and
overnance in all elementary schools. These committees have the authority to
g
monitor the school’s functioning and prepare developmental plans for it.
● The Act is justiciable and has a Grievance Redressal mechanism that permits
people to take action when the provisions of the Act are not complied with.
● The RTE Act mandates all private schools to reserve 25 percent of their seats for
children from socially disadvantaged and economically backward sections. This
move is intended to boost social inclusion and pave the way for a more just and
equal country.
● The Act has increased enrolment in the upper primary level (Class 6-8) between
2009 and 2016 by 19.4%.
● In rural areas, in 2016, only 3.3% of children in the 6 – 14 years bracket were out
of school.
CRITICISMS OF RTE ACT:
● T he Act was drafted hastily without much thought or consultation being given to
the quality of education imparted.
● Children below 6 years are not covered under the Act.
● Many of the schemes under the Act have been compared to the previous
schemes on education such as the Sarva Shiksha Abhiyan, and have been
plagued with corruption charges and inefficiency.
● At the time of admission, many documents such as birth certificate, BPL
certificate, etc. are required. This move seems to have left out orphans from
being beneficiaries of the Act.
● There have been implementational hurdles in the 25% reservation of seats for
EWS and others in private schools. Some of the challenges in this regard are
discriminatory behaviour towards parents and difficulties experienced by students
to fit in with a different socio-cultural milieu.
● Regarding the ‘no detention’ policy till class 8, an amendment to the Act in 2019,
introduced regular annual exams in classes 5 and 8.
● It has been found that many states find it difficult to move to the CCE system of
assessment. This is chiefly due to a lack of teachers’ training and orientation.
● Another criticism levelled against the Act is that instead of increasing the
standards and outcomes of the public education system in India, it passes the
buck to private schools with some respect.
ONCLUSION:On the basis of the above study, it can be said that the right to
C
education is very important for Indian citizens, especially the importance of the right to
education was increased through the system of free and compulsory education for
children, currently efforts are being made to make this right more practical through the
new education policy.
B. NATIONAL HEALTH MISSION
INTRODUCTION:
● T he National Health Mission was launched by the Government of India with the
objective of addressing India’s malnutrition crisis. This mission subsumed 2 other
malnutrition missions that already existed with the aim of targeting rural
population and urban population. This mission was launched in the year 2013
and is implemented by the Ministry of Health and Family Welfare.
● India is a developing country, where various types of problems are involved in the
health sector, which causes various epidemics and millions of deaths, poverty is
responsible for the increase in respiratory diseases like tuberculosis and
pneumonia, besides various serious diseases like lack of air, water, food and
problems like malnutrition arise in India, to deal with them, programs like the
National Health Mission are run by the Government of India.
● The National Health Mission represents both the National Rural Health Mission
and the National Urban Health Mission, launched by the Central Government in
2005, with the primary objective of strengthening
reproductive-maternal-newborn-child and adolescent health and combating
various diseases.
● At the time of independence, health facilities in India were low and in 1947 there
were only 7000 hospitals in the whole country. And till 1986 there was no health
insurance facility, and the treatment for the poor was very expensive, which
increased the expenditure in medical facilities and promoted poverty,
unemployment and diseases in the country, to deal with which the National
Health Mission was started by the Government of India.
FOUR COMPONENTS OF THE MISSION:
.
1 ational Rural Health Mission
N
2. National Urban Health Mission
3. Tertiary Care Programmes
4. Human Resources for Health and Medical Education
MAJOR OBJECTIVES:
1. T
he mission targets to move beyond earlier missions focus on reproductive and
child health
. T
2 ackle 2 categories of diseases – Communicable and Non-Communicable
3. To give a major impetus to health infrastructure facilities at District and
Sub-District levels.
GOALS OF NATIONAL HEALTH MISSION:
Some of the major goals of the National Health Mission are given below.
.
1 otal Fertility Rate (TFR) – Reduce it to 2.1
T
2. Infant Mortality Rate (IMR) – Reduce it to 25 per 1000 live births
3. Maternal Mortality Rate (MMR) – Reduce it to 1 per 1000 live births
4. Bring down the malaria cases to less than 1 per 1000 population.
5. Prevent and reduce anaemia in women in the age bracket of 15 years to 49
years.
. Bring down cases and mortality due to tuberculosis by half.
6
SUCCESS OF NATIONAL HEALTH MISSION:
ignificant changes were made in rural and urban facilities and infrastructure through
S
the mission but it could not achieve fully positive results, for the improvement of which
the universal health program called Ayushman Bharat was launched by the government
to establish a less expensive medical system.
YUSHMAN BHARAT: Ayushman Bharat is a joint proposal that subsumes health
A
insurance, which is divided into primary, secondary and tertiary medical care, was
launched in 2018. Which has 2 major components –
1. P radhan Mantri Jan Arogya Yojana (PM-JAY), earlier known as National Health
Protection Scheme.
2. Health Wellness Center (HWC)
heir major objective is to provide benefits in health care to economically challenged
T
citizens in India, fulfilling the government's goal to provide accessible and affordable
medical services to the citizens.
CONCLUSION:
he National Health Mission seeks to improve the healthcare system in India, which has
T
resulted in considerable increase in the accessibility and quality of health services in
rural and urban areas, but at present there are still challenges in the health sector,
which need to be made viable through health related policies and programs.
C. RIGHT TO FOOD SECURITY
he National Food Security Act (NFSA) 2013, which was passed on July 5, 2013,
T
represents a paradigm shift in the aspect of food security, moving away from a
welfare-based approach to one based on rights. Up to 75% of the rural population, as
well as 50% of the urban population, are legally entitled to receive subsidised food
grains through the Targeted Public Distribution System, according to the Act. Therefore,
the Act covers almost two-thirds of the population in order to provide them with heavily
subsidised foodgrains. The National Food Security Act of 2013 (NFSA) is being
implemented throughout all of India’s States and UTs.
● B eneficiaries under the National Food Security Act fall into two categories:
Priority Households (PHH) and Antyodaya Anna Yojana (AAY) households, each
of which is entitled to 35 kg of food grains each month (5 kg per person per
month). Wheat costs Rs. 2 per kg, rice costs Rs. 3 per kg and coarse grains cost
Rs. 1 per kg.
● The Act was signed into law on 12th September 2013 retroactive to 5th July
2013.
● The Act is in line with Goal Two of the Sustainable Development Goals set by the
United Nations General Assembly.
❖ Goal 2 seeks sustainable solutions to end hunger in all its forms by 2030
and to achieve food security.
❖ The aim is to ensure that everyone everywhere has enough good-quality
food to lead a healthy life.
● Schemes such as the Mid-Day Meal Scheme (MDMS), the Public Distribution
System (PDS), and the Integrated Child Development Services (ICDS) are
included under the Act.
● The Act is being implemented by all the States and the Union Territories.
FEATURES OF NFSA:
● T he food grains would be provided at highly subsidized prices under the Public
Distribution System.
● The Act ensures nutritional support to women and children. Pregnant and
lactating women would be entitled to nutritious meals, free of charge under the
MDM and ICDS schemes.
● Children in the age group of 6-14 years would also be entitled to free nutritious
meals under the MDM and ICDS schemes.
● Maternity benefit of not less than Rs.6000 is also provided to pregnant women
and lactating mothers.
● T he Act also empowers women by identifying the eldest woman of the household
as the head of the household to issue ration cards.
● The Central Government aids the States to meet the expenditure incurred by
them on transportation of foodgrains within the State and also handles the Fair
Price Shop (FPS) dealers’ margins according to the norms.
● There is a provision of a food security allowance to the beneficiaries in the event
of non-supply of food grains.
● Transparency: Provisions have been made to disclose the records related to the
PDS to ensure transparency.
● Beneficiaries under the act:
❖ Antyodaya Anna Yojana (AAY) households
❖ Priority Households (PHH)
SIGNIFICANCE OF NFSA:
he concerns regarding food security in India can be traced back to the experience of
T
the Bengal Famine in 1943 during the British Colonial Rule. Food security is of utmost
importance to a nation as it will also have a positive influence on the other aspects
determining the growth of a nation:
It boosts the agricultural sector.
●
● It also aids the government to regulate food prices.
● A boost in the agricultural sector would result in more job opportunities, as
agriculture is a labour-intensive sector. This would enhance economic growth
and result in the reduction of poverty.
● Access to nutritious food would enhance the overall health of the public.
● Food security is also important for the global security and stability of the nation.
CHALLENGES TO FOOD SECURITY:
● C limate Change:the increase in the global temperatures and the capricious
rainfall makes farming difficult. A change in the temperatures not only impacts the
crops but the other species which are reared for food such as fisheries, livestock,
etc.
● Lack of Access:there is a lack of access to remote areas. The tribals and other
communities living in remote areas do not get the opportunity to avail of the
benefits of the schemes implemented for food security due to lack of access.
● Over-population:A substantial increase in the population when not
accompanied by an increase in agricultural production results in a shortage of
food.
● Non-food crops: crops grown for commercial purposes such as biofuels and
dyes have reduced the area under cultivation for crops.
● M
igration from Rural-Urban cities:This causes a problem as it leads to a lot of
confusion as to which PDS shop to buy the subsidies from.
CRITICISMS TO NFSA:
● L ack of Transparency: According to a Comptroller and Auditor General (CAG)
audit conducted in 2016, the wrong people were benefiting from the NFSA. It
accuses many states of implementing the NFSA despite owning the information
that their beneficiaries list is spurious
● Leakages in PDS: a leakage indicates that the food grains do not reach the
intended beneficiaries.
● Storage: According to the CAG audit, the available storage space was
inadequate for the allocated quantity of food grains.
● Quality of food grains: people often complain that the quality of the food grains is
not up to the mark and that the grains sometimes have to be mixed with other
grains to be edible.
. MGNREGA: MAHATMA GANDHI NATIONAL RURAL EMPLOYMENT
D
GUARANTEE ACT
GNREGA is the abbreviation for the Mahatma Gandhi National Rural Employment
M
Guarantee Act 2005.
● It is a law passed by the Indian government in 2005 that guarantees the “right to
work” to rural citizens of India.
● Under this, the government assures a minimum of 100 days of unskilled manual
work to an adult member of an eligible rural household.
● The main objective of the MGNREGA is to provide employment to rural citizens
and improve their economic conditions.
● Several organizations and people played key roles in championing the cause of
the right to work, especially the Mazdoor Kisan Shakti Sangathan (MKSS),
renowned development economist Jean Drèze, and many others.
● MKSS’s initial efforts at organizing workers working on government drought relief
programmes spearheaded the way for sustained activism that led to the creation
of MGNREGA.
KEY PROVISIONS:
● E ligibility Criteria: For receiving the benefits of the MGNREGA Scheme, the
following eligibility criteria are to be met by the applicant: 1. Citizen of India, 2. 18
years of age, 3. Rural Household, 4. Willing to do unskilled work
● Guaranteed Employment: The MGNREGA program guarantees 100 days of
unskilled employment to all willing rural citizens, at the government-set minimum
wage.
● Unemployment Allowance: If work is not assigned within 15 days, the applicant is
entitled to receive an unemployment allowance. This allowance is 1/4 of the
minimum wage for the first 30 days and a half for the following period.
● Social Audit: A social audit is a powerful tool for social transformation, community
participation, and government accountability. Section 17 of the MGNREGA has
mandated a social audit of all the works executed under the MGNREGA.
● Preference of employment near residence: The work provided is usually within a
5 km radius of the applicant’s village, with a travel allowance provided for work
beyond this radius.
● Decentralized planning: Panchayati Raj Institutions take the lead role in planning,
implementing, and monitoring the allocated and executed works. Gram Sabhas
are given the authority to suggest work and are required to carry out at least half
of the work.
● Implementing agencies are responsible for providing proper working conditions,
medical facilities, and compensation.
● Payments are made on a weekly basis and cannot be delayed more than 15
days, with compensation for delays. Complaints can be made and must be
addressed within 7 days.
HOW HAS MGNREGA EVOLVED OVER TIME?
● D ata on the scheme’s website shows that on any given day, some 15 million
people work under the programme at 1.4 million sites.
● There has been a steady decline in the budget allocation for the scheme. The
government cut the spending to Rs 60,000 crore for 2023-24 from Rs 89,400
crore in 2022-23. The budget for the scheme is the lowest in the past two years,
which was Rs 98,468 crore and Rs 89,400 crore for the year 2021-22 and
2022-23, respectively.
● In more than 15 years of its implementation, the Act has generated more than 31
billion person days of employment, and the government has spent over Rs 6.4
lakh crore on this demand-driven programme.
● Since 2006, over 30 million water conservation-related assets have been created
in the country’s rural areas. This comes to at least 50 water-related structures per
v illage, with the total number of villages in India being 0.6 million, according to
Census 2011.
The scheme has introduced several technological tools, such as online
●
registration, electronic fund transfer, and geotagging through mobile apps to
make the implementation more transparent and efficient.
● The National Mobile Monitoring Software (NMMS) App was made mandatory in
January 2023. It demands online attendance from employees twice a day
● The scheme has been integrated with other programs such as the National Rural
Livelihood Mission (NRLM), the Pradhan Mantri Awas Yojana (PMAY), and the
Swachh Bharat Abhiyan to achieve better convergence of resources and efforts.
SIGNIFICANCE OF MGNREGA:
● Infrastructure: MGNREGA has helped to improve the infrastructure and natural
resource base of the rural poor, which has had a positive impact on the
environment.
● Compensating income loss: As per a study conducted by Azim Premji University
across four states (Bihar, Karnataka, Maharashtra, and Madhya Pradesh),
MGNREGA helped in compensating 20-80% of the income loss incurred
because of the Covid-19 induced lockdown.
● Preventing migration to urban areas: The goal is also to decrease migration from
rural areas to urban areas by utilizing the untapped labor in rural areas.
● Livelihood: It seeks to improve the livelihoods of the rural poor and create
durable assets such as wells, ponds, roads, and canals.
● Right-based approach: Unlike previous employment guarantee schemes, the act
aims to combat chronic poverty through a rights-based approach, giving citizens
a legal right to work.
● The program incorporates accountability measures to ensure compliance and
transparency at all levels.
CHALLENGES PERTAINING TO MGNREGA:
● C orruption: There have been instances of corruption, particularly in the form of
embezzlement of funds and manipulation of records. For example, a recent
example of an IAS officer in Jharkhand was accused of corruption in MGNREGA.
● Limited job opportunities: MGNREGA provides only 100 days of employment per
person per year, which may not be enough to meet the needs of all rural citizens.
● Lack of awareness: Many rural citizens are not aware of their rights under
MGNREGA, and as a result, they do not take advantage of the benefits it offers.
● B ureaucratic delays: The program is often bogged down by bureaucratic delays
and inefficiencies, making it difficult for citizens to access benefits in a timely
manner. For example, delay in payments in Andhra Pradesh.
● Quality of work: Many critics argue that the quality of work carried out under
MGNREGA is not up to the mark and the work undertaken is not aligned to the
local needs and priorities.
● Limited financial inclusion: Limited financial inclusion in the states such as Bihar
is also a challenge for the proper implementation of MGNREGA regarding the
transfer of wages.
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