Decentralization in India has deep constitutional roots, enshrined in various provisions of the Indian Constitution.
Here’s a breakdown of its constitutional dimensions:
- Panchayati Raj Institutions (PRIs) and Urban Local Bodies (ULBs): The 73rd and 74th Constitutional Amendments in 1992 mandated the establishment of PRIs and ULBs to decentralize power to the grassroots level. Articles 243 to 243O and Part IX and IXA of the Constitution provide for the structure, composition, and powers of these institutions, ensuring local self-governance.
- Distribution of Powers: The Seventh Schedule of the Constitution delineates powers between the Union, State, and Concurrent Lists. Decentralization involves devolving certain powers to the states, empowering them to make laws on subjects listed in the State List (List II), promoting autonomy and flexibility in governance.
- Finance Commission: Article 280 establishes the Finance Commission to recommend the distribution of financial resources between the Union and the States. Through this mechanism, funds are allocated to states and local bodies, enhancing their fiscal autonomy and capacity for local development.
- Article 243G: This article mandates State Finance Commissions (SFCs) to review the financial position of local bodies and recommend fiscal measures. It ensures financial devolution and equitable distribution of resources, strengthening the financial base of decentralized institutions.
- Election Commission: While not directly related to decentralization, the Election Commission ensures the conduct of free and fair elections to PRIs and ULBs, upholding the democratic principles fundamental to decentralization.
- Judicial Review: The Constitution provides for judicial review by the courts to ensure adherence to constitutional principles in decentralization processes. Courts play a crucial role in upholding the constitutional validity of laws related to decentralization and protecting the rights of local governments.
- Fundamental Rights and Directive Principles of State Policy: The Constitution guarantees fundamental rights and includes directive principles guiding state policy. Decentralization aims to fulfill these principles by promoting democratic participation, social justice, and economic development at the grassroots level.
Overall, decentralization in India is not just a policy but a constitutional imperative aimed at fostering democratic governance, promoting participatory decision-making, and ensuring equitable development across regions.