To promote local governance and decentralized administration, the British government in India established municipalities and district boards. These local bodies were tasked with managing essential services such as education, healthcare, sanitation, water supply, and infrastructure, funded through local taxes. However, the early developments of local governance were primarily shaped by British fiscal and administrative priorities.
Factors That Compelled British Government to Introduce Local Governance
Several factors contributed to the British government’s decision to establish local government institutions in India.
- Financial Imperatives: Overcentralization created financial challenges for the British government, and decentralization was seen as a necessary solution.
- Transplanting European Civic Amenities: India’s growing ties to Europe made it essential to introduce modern civic amenities similar to those available in Europe.
- Nationalism and Basic Facilities: The rising tide of Indian nationalism and popular demands for improved facilities forced the British to address these issues through local governance.
- Involving Indians in Administration: The involvement of Indians in local administration was seen as a way to ease political tensions, while maintaining British supremacy.
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Rationale for Local Governance
| Factor | British Perspective |
| Financial Imperatives | Decentralization allowed local taxes to fund services, reducing the pressure on the central treasury. |
| European Civic Amenities | Modern civic facilities were introduced in India to maintain European standards and meet the demands of economic ties with Britain. |
| Nationalism and Services | Improved basic services such as sanitation, education, and infrastructure helped address growing nationalist pressures. |
| Involvement of Indians | Allowing Indians into local governance aimed to co-opt Indian participation while ensuring British control remained unchallenged. |
Early History of Municipal Institutions (1864–1868)
In the initial phases, the municipalities and district boards established by the British were primarily composed of appointed members, often led by district magistrates. These bodies were more instruments of tax collection than genuine institutions of local self-governance.
Mayo’s Resolution of 1870
Lord Mayo’s Resolution marked the first significant step toward financial decentralization in India, with provincial governments granted the authority to generate local revenue through taxes. This financial autonomy was tied to the transfer of control over certain administrative departments to provincial governments.
- Key Departments Transferred: Education, sanitation, medical services, and local public works were placed under provincial governments.
- Local Interest and Supervision: Lord Mayo emphasized the importance of local interest in efficiently managing public funds for these departments.
Impact of Mayo’s Resolution
| Department | Change |
| Education | Transferred to provincial control, allowing local governments to manage schools and education funding. |
| Sanitation/Medical | Managed by local bodies, emphasizing the importance of local knowledge in public health initiatives. |
| Public Works | Roads and infrastructure development were locally administered. |
Ripon’s Resolution of 1882
Lord Ripon’s efforts in further decentralizing local governance earned him the title of the Father of Local Self-Government in India. His resolution advocated for greater involvement of non-officials in local bodies, with a shift towards elective principles.
- Development of Local Bodies: Ripon envisioned urban and rural local bodies as tools for public education and administration.
- Majority of Non-Officials: He proposed that non-officials should form the majority in these bodies, with non-official chairpersons when possible.
Key Points of Ripon’s Resolution
| Proposal | Significance |
| Majority of Non-Officials | Suggested that non-official members hold a majority, moving towards representative governance. |
| Elective Principle | Introduced the idea of elections where feasible, giving a voice to the local population. |
| Minimized Official Interference | Advocated for reducing the role of officials to oversight rather than direct control. |
| Local Revenue Sources | Emphasized the need for local revenue sources to ensure financial independence of local bodies. |
Challenges Faced by Local Bodies
Despite Ripon’s efforts, local bodies faced numerous structural and operational challenges:
- Minority Elected Members: In most municipalities, elected members remained a minority, limiting the effectiveness of representation.
- Restricted Franchise: The franchise was highly restricted, preventing large sections of the population from participating in elections.
- District Boards: District officials continued to hold significant power, and non-officials only gradually began to head municipalities.
Challenges Faced by Local Bodies
| Challenge | Explanation |
| Minority of Elected Members | Elected representatives were a minority, restricting the influence of local populations. |
| Restricted Franchise | The franchise was limited to wealthier, educated individuals, alienating the larger population. |
| Control by District Officials | District magistrates continued to hold power, even in supposedly decentralized local bodies. |
Decentralisation Commission Report, 1908
The Decentralisation Commission was established to address the challenges faced by local bodies. The lack of financial resources was identified as a major impediment to the effective functioning of local governance.
- Empowering Village Panchayats: The commission recommended granting village panchayats greater authority and providing them with independent sources of income.
- Sub-District Boards: It also proposed the creation of sub-district boards with their own distinct responsibilities and revenue sources.
Key Recommendations of Decentralisation Commission
| Recommendation | Explanation |
| Village Panchayats | Suggested that village panchayats be given judicial and financial autonomy for local projects and governance. |
| Sub-District Boards | Proposed the creation of sub-district boards to manage local services with independent revenue streams. |
| Taxation Powers | Recommended the removal of restrictions on the taxation powers of local bodies. |
| Education Responsibility | Suggested that municipalities take responsibility for primary education or be relieved of other charges like secondary education. |
Resolution of 1918 and Local Self-Government under Dyarchy
The Resolution of May 1918 pushed for local self-governance as part of broader constitutional reforms in India. Local bodies were to be made more representative, in line with the Government of India Act, 1919, which categorized local government as a transferred subject under dyarchy.
- Challenges Under Dyarchy: Local self-governing bodies remained financially constrained due to the separation of finance as a reserved subject, limiting the capacity of Indian ministers to effect change.
- Simon Commission’s Criticism: The Simon Commission noted limited progress, especially in the development of village panchayats. It recommended increased provincial control to ensure efficiency.
Impact of Dyarchy on Local Governance
| Subject | Control |
| Local Government | Transferred subject under ministerial control. |
| Finance | Reserved subject, limiting the scope of financial reform for local bodies. |
| Simon Commission’s Criticism | Highlighted the reluctance of local bodies to impose local taxes and recommended more provincial oversight for efficiency. |
Government of India Act, 1935
The Government of India Act of 1935 marked a turning point for local self-government, as provincial autonomy was granted, and local bodies received greater authority.
- Greater Taxation Powers: With the elimination of the demarcation of taxation powers, local bodies gained more control over financial matters.
- New Acts: Provinces passed new acts, giving local bodies increased autonomy and responsibility, though taxation powers were still limited.
Changes Post-1935 Act
| Change | Significance |
| Provincial Autonomy | Allowed provinces to pass laws granting more authority to local bodies. |
| Taxation Powers | Despite reforms, local taxation powers remained limited, with new restrictions on terminal taxes and property levies. |
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Conclusion
The introduction of local self-government in India, beginning with Mayo’s and Ripon’s Resolutions, laid the foundation for decentralized administration. However, financial and structural constraints hindered the full realization of effective local governance. The Government of India Act of 1935 provided further impetus for local self-governance, though significant challenges remained, particularly regarding the financial autonomy and administrative independence of local bodies.
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