Aspirant Academy

Public Administration

Centralisation and Decentralisation

Organisation: Hierarchy, Unity of Command, Span of Control, Delegation, Centralisation/Decentralisation, Coordination

Paper III · Unit 2 Section 6 of 12 0 PYQs 23 min
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Centralisation and Decentralisation

5.1 Centralisation — Features and Advantages

Centralisation concentrates decision-making authority at the apex of the organisation (or the top of the governmental hierarchy).

Advantages:

  1. Uniformity — consistent policies applied across regions
  2. Coordination — easier to align different units
  3. Crisis management — rapid, decisive action possible
  4. Expertise concentration — top talent makes key decisions
  5. Security — national security decisions cannot be decentralised

Disadvantages:

  1. Slow response to local needs
  2. Overloads top management
  3. Demotivates field-level officials
  4. Ignores local knowledge

5.2 Decentralisation — Concept and Types

Decentralisation is the systematic dispersal of authority downward and outward — to field offices, regional governments, local bodies, or community organisations.

Types of decentralisation:

Type Description India Example
Deconcentration Transfer of authority to field offices within the same level of government Divisional Commissioner, District Collector — agents of state government
Delegation (administrative) Transfer of functions to semi-autonomous organisations State Electricity Boards, RIICO
Devolution Transfer of authority and resources to elected local bodies — true decentralisation PRIs (73rd Amendment), ULBs (74th Amendment)
Privatisation Transfer of functions to private sector Toll collection, airport management

5.3 Decentralisation in India — 73rd and 74th Amendments (1992)

73rd Constitutional Amendment Act (1992) — Panchayati Raj:

  • Created Part IX of the Constitution (Articles 243–243O)
  • Established three-tier PRIs: Gram Panchayat, Panchayat Samiti (Intermediate), Zila Parishad
  • 29 subjects listed in 11th Schedule for devolution
  • 33% reservation for women (increased to 50% in many states including Rajasthan)
  • State Finance Commissions and State Election Commissions made mandatory

74th Constitutional Amendment Act (1992) — Urban Local Bodies:

  • Part IXA (Articles 243P–243ZG)
  • Three types: Nagar Panchayat, Municipal Council, Municipal Corporation
  • 18 subjects in 12th Schedule
  • District Planning Committee (DPC) to integrate urban-rural plans

Rajasthan's record: Rajasthan has implemented 50% reservation for women in PRIs since 2009 (Rajasthan Panchayati Raj (Amendment) Act 2009). The state has approximately 10,000 gram panchayats. Rajasthan's Mahatma Gandhi NREGA Social Audit units model community accountability.

5.4 Arguments for Decentralisation in India

Balwant Rai Mehta Committee (1957): First recommended three-tier Panchayati Raj; implemented in Rajasthan (Nagaur, 1959 — first PRIs in India).
Ashok Mehta Committee (1978): Recommended two-tier PRIs and direct elections.
L.M. Singhvi Committee (1986): Recommended constitutional status for PRIs.
2nd ARC Report: Recommended strengthening local self-governance.