Federal system has two or more tiers of government. But a vast country like India cannot be run only through these two-tiers. Therefore, India adopted a three-tier system of government. This is the rationale for decentralization of power. Decentralisation means that some power is taken away from the central and state governments and given to local governments.
REASONS FOR DECENTRALISATION:
- Large Country.
- Three Tier Government - Local Govt formed.
- Large no: of problems and issues.
- Local people - better knowledge of local problems.
- Democratic participation - local self - Govt.
- 1992 - Amendment - Third Tier made more powerful
Steps taken to make third-tier more powerful:
- Regular elections.
- Reservation of seats for SC, ST, OBC.
- Reservation for women.
- Creation of state EC to control elections.
- State Govt. to share power & revenue with local govt.
Formation of Panchayati Raj (Rural local government):
- Group of each village has a panchayat.
- President or Sarpanch.
- Directly elected by the people.
- Works under the supervision of gram sabha (all voters of the village).
- Meets twice or thrice a year to approve the budget of Grama Panchayat.
