Functions of Local Boards (A Historical Perspective)

Functions of Local Boards

(A HISTORICAL RETROSPECT)

BY PROF. M. VENKATARANGAIYA, M.A.

To understand the nature of the expenditure of Local Boards, it is necessary at the outset to have an idea of the scope of their functions. Legislation and the executive orders of the provincial government have defined as exactly as possible the particular purposes on which their funds may be legitimately spent. Before they were constituted for the first time in 1871, three local cesses were raised in rural areas, each one for a special purpose. The cess instituted by the Madras Act VI of 1863 could be spent only on schools; the village cess levied under the Act of 1864 could be utilised to pay the salaries of the village establishment; and the road cess authorised under the Act of 1866 could be applied only for the construction,

repair and maintenance, of roads and communications. The first and the last of these cesses were repealed in 1871 and the objects for which they were raised were included among those for the realisation of which the Local Funds Act was passed in that year.

There have not been great changes in the functions of Local Boards since their formation in 1871. They were then defined as follows: -

(1) The construction, repair and maintenance, of roads and communications.

(2) The diffusion of education, and, with this object in view, the construction and repair of school-houses, the maintenance of schools, either wholly or by means of grants-in-aid, the inspection of schools, and the training of teachers.

(3) The construction and repair of hospitals, dispensaries, lunatic asylums, choultries, markets, tanks and wells, the payment of all charges connected with the objects for which such buildings have been constructed, the training and employment of vaccinators and medical practitioners, sanitary inspection of towns and villages, the cleansing of roads, streets and tanks and any other local works of public utility calculated to promote the health, comfort or convenience of the people. (Section 26) It was only in minor respects that modifications were introduced into this list. Thus in 1884 when a new Local Boards Act was passed, the Boards were authorised to spend their revenues on,

"(4) the planting and preservation of trees on sides of roads and on other public places" and

"(5) the establishment and maintenance of relief works in time of famine or scarcity" (Section 95 clauses ii and v).

When the Act was amended in 1900, the Boards were empowered to construct slaughter houses and cart-stands (Section 95, caluse iii). For about thirty-six years no alterations were made in their functions. In the interval, however, the Royal Commission on Decentralisation made its recommendations and the Government of India issued resolutions indicating in broad outline the direction in which changes were desirable in local self-government, The Minto-Morley Reforms gave increasing opportunities for popular representatives to move resolutions in the Legislative Council and place before the Government the views of the educated public on this subject. The question was also carefully considered in the "Montford" scheme of Constitutional Reforms. The result of all this activity was the passing of the Local Boards Act of 1920. It absolved the Local Boards from responsibility for famine relief; it authorised them to utilise their revenues for the construction of poor houses and orphanages, the removal of congestion of population, and the provision of house-sites, the payment of contributions to the funds of Health and Welfare institutions and the establishment and maintenance of libraries and reading rooms (Section 112 Clauses (ii), (iii), (iv) and (v). The functions of Local Boards at the present day are based upon this Act.

REASONS FOR CONSERVATISM

Communications, education and public health, have thus been regarded as falling within the sphere of Local Bodies. No acute controversies arose in respect of these. It was only when proposals were made to include particular items under one or other of these heads or to add to them that differences of opinion arose between the Government on one side and the non-official members of the Legislature. It may be said that on the whole the Government adopted with much justification a cautious and conservative policy in the matter. A review at this stage of the several factors that contributed to this conservatism is of much importance.

(1) One of the essential factors was the inadequacy of the resources of Local Bodies. In the earliest days of legislation on the subject, the Government ignored this aspect of the question. It thought that by merely creating Local Bodies and calling upon them to discharge certain functions, they would be enabled to do the work entrusted to them quite satisfactorily. It was in those days left to responsible officials and non-officials to invite the attention of the Government to the financial weakness of the Boards and the consequent folly of throwing heavy work upon them. Even education was regarded by them in such light. It was only later on when the Government obtained actual experience of the real capacities of the Boards that it understood the point of view of the critics. This standpoint was emphasized in the famous Resolution of Lord Ripon’s Government, where it was clearly stated that when a new liability was transferred to the Boards a corresponding source of revenue also should be made over to them (Section VI). It was on this ground that opposition was shown to throwing on Local Boards the responsibility for famine relief (Speech of Ratnasabhapathi Pillai, M.L.C.P. 1900) The Madras Government retained in 1900 the clause regarding famine relief merely out of deference to the views of the Imperial Government and not because it was satisfied with the justice or the expediency of the case. For, the history of famine relief clearly brought out how the finances of Local Boards were handicapped when they had to meet the charges on famine; and after all what they contributed was very small when compared with the huge famine expenditure incurred by the Government. For instance in 1897-8, the Madras Government spent 92.86 lakhs on relief works and it was proposed to debit only five lakhs to the account of Local Boards. Even this resulted in heavy deficits which, under the rules then existing, Government had to make up by means of provincial subventions. It was not permissible to spend the funds raised by one Board in the jurisdiction of another. The local funds of all districts did not constitute a common purse. Though one Board might be in an exceedingly flourishing state, its funds could not be spent in another district suffering from famine (Financial Statement M. L. C, P. 1898, P. 19). Inspite of these difficulties, the Clause was retained in the Act of 1900. It was however a dead letter and it was removed in 1920. During the discussions on the amendment of the Act in 1900, there were non-official proposals for including among the purposes the construction of poor-houses, the establishment of model farms, the importation and distribution of superior kinds of seed, etc. but all this was objected to mainly on the ground that local funds were unable to bear the additional expenditure. Various suggestions were placed before the Royal Commission on Decentralisation for expanding the scope of the work of Local Boards, but the Commission rejected all of them on the main ground that the administrative duties already assigned to Rural Boards were quite large enough and what was really needed was not an extension of functions but larger resources for the work already falling on them. (Report Para. 745). A similar opinion was expressed by the member in charge of local self-government during the discussions on the Bill of 1920, when it was proposed that Local Boards should be empowered to spend their revenues on agricultural and technical schools, home industries, etc. and the Legislature concurred with him. (Speech of Sir P. Rajagopalachari). The general feeling has throughout been that if without increasing their resources–which was not found to be possible or practicable–new functions were added, it would do them more harm than good.

It may be argued that no evil effects will result if the list of permissive functions is enlarged, leaving it to the discretion of individual Boards to spend funds on them in case they can be spared. This will, it may be said, incidentally serve as a reminder to the Boards of the ideals for which they have to strive, the directions in which they have to move, and the great volume of work that lies before them. Two points, however, deserve consideration in this connection. There is a danger of funds being frittered on fanciful schemes likely to capture the imagination of the electorate, each Board trying to outdo the other in this pursuit. Secondly, even under the existing legislation, the field open for Boards is wide enough to give full scope for years to come for expenditure on a variety of useful undertakings. Public health, education and communications, require all the funds that they raise. Concentration on these few items is in the long run likely to bear better fruit. A mere extension, therefore, of functions will not at this stage be of any real use.

(2) While the financial factor was of fundamental importance in determining the course of legislation on this subject, influence was also exercised to some extent by a few secondary factors. Where a state department had been created to work in a particular field, it was considered inexpedient and uneconomical to allot work in the same field to Local Bodies. This was the view put forward by the spokesman of the Government during the discussions on the Bill of 1920, when it was proposed to permit the Boards to open agricultural schools, model farms and technical institutions, etc. The agricultural and the industrial departments with their Directors and other officers were already entrusted with work of this nature. It was apprehended that if the revenues of Local Bodies were permitted to be spent on the same purpose, the state departments may shirk their responsibility, grow slack, indifferent and even careless in their work. (M. L. C. P. 20th September 1920). These fears were really groundless. With a state department of education, the Local Boards have been entrusted with the establishment and maintenance of schools; and with a state medical department, they have been opening and managing hospitals and dispensaries; and these departments have not grown indifferent in consequence. So, a state agricultural department need not necessarily mean that Local Bodies should have nothing to do with agriculture. The fact of the matter is that the interest in the scientific development of agriculture is to be found only to a small extent among the masses of people. Boards consisting of their elected representatives cannot be expected to devote much attention to agricultural schools or farms; and their capacity to organize and manage such institutions is limited. Under these circumstances, the cause of scientific agriculture may suffer if its success is made to depend on Local Boards. Moreover, the subject is still in an experimental stage and it is better that for some time more it is entirely left in the hands of the state department. Owing to the large volume and variety of work in education, a division of labour has been brought into effect between Local Boards and the state education department–the former establishing and maintaining schools, the latter providing with inspection and general co-ordination. There is as yet no scope for such division of labour in the agricultural or the industrial department.

CHANGES AHEAD

It is circumstances like these that stand in the way of additional work being thrown upon Local Bodies at present. Conditions are bound to change with time and the above objections may cease to have force in future. Whether expenditure on a particular item would benefit only a class or the generality of ratepayers in the area, is another factor which influences the policy in regard to the functions of Local Bodies. Though the diffusion of education was recognised as one of the main functions of these bodies, objection was raised in the early days to expenditure on secondary education and on reading-rooms and libraries. The ground of objection was that these would be of advantage to only a small minority of the population, especially the members of the higher castes. The strength with which this objection was held is best brought out in the speech of Mr. Arundel who was in charge of the Local Boards Act Amending Bill in 1900. He said: "I am more out of sympathy with this amendment (re: public libraries, reading-rooms) than with any other hitherto proposed. . . . With regard to reading-rooms and libraries, if any of these were to be provided for, it would be in larger Unions where the people who of would avail themselves of this advantage would be the officials, the vakils and the schoolmasters; and the people from whom the taxes are levied which go towards providing these things would, for the most part and with rarest exception, derive no benefit. In proposals such as these, we are altogether going beyond what is wise and expedient for Local Fund Boards". (M. L. C. P. 3rd April 1900). The growth of literacy and the spread of the library movement through the efforts of voluntary organizations weakened the force of this objection by 1920 when, as has been noted already, expenditure on reading-rooms was declared legitimate.

A contrast is often drawn between the growing volume and variety of work turned out by Rural Boards in western countries and the narrow sphere in which the Boards here have to function. But it must be recognised that this contrast is only the counterpart of the difference in the standards of life and in material prosperity. The provision of swimming baths, wash-houses, gymnasia, museums, etc., should be considered a luxury in a land where there is not as yet an adequate supply of pure drinking water; and continuation schools should be regarded in the same light where universal primary education has not yet been provided for. It is only when the general economic conditions undergo improvement and the annual national income increases, that Local Boards would be able to come into possession of larger funds and try to approach the western standards of local administration.

PROPORTION OF EXPENDITURE

Legislation has not only defined precisely the functions of Local Boards but it also attempted in the past to regulate the proportion in which the revenues of these Boards should be distributed among the several functions allotted to them; and where legislation failed to lay down such a rule, the administrative orders of the provincial government took its place. Thus, for instance, the Act of 1871 laid down that all the net income derived from tolls and two-thirds of the income obtained from the land cess should be spent on roads (Section 36); and the balance from the land cess should be set apart for expenditure on education, medical relief, sanitation, etc. The proceeds of the house-tax were intended for expenditure on schools, but when that tax was suspended, the Government issued a rule that ordinarily one-sixth of the land cess together with the miscellaneous educational receipts should be spent on education (Report of the Committee on Local Self-Government, Para 182). These rules resulted in very small expenditure on public health. So, the Committee appointed in 1882 to report on the condition of local self-government in the Madras Presidency in the light of Lord Ripon's Resolution expressed the opinion, that: "So much has now been done to improve them (roads) throughout the Presidency and the demands of the other services are now so imperious, that the time has come when the proportion of land cess, appropriated by law to road fund may properly be reduced from two-thirds to one-half" (Para 246). In the Act of 1884, no minimum of expenditure on roads was fixed and discretion was allowed in the matter to the Boards. Between 1884 and 1895, the Boards paid increasing attention to education and public health and it appeared to the Government that roads were being neglected. There was also an impression in those days among the members of the Government that the need for educational expansion was not urgent and they were even prejudiced at the progress it was making. When in 1895 a non-official member of the Legislature asked for additional allotments for education out of the Provincial funds, the Hon'ble Mr. Bliss replied: "The tendency of Local Bodies to spend more money upon education is encouraged by the local departmental officers, just as expenditure on sanitation is constantly fostered by the strenuous efforts of the Sanitary Commissioner. The consequence is that both Local Boards and Municipalities have been starving other departments for the sake of education. In fact, the roads upon which the prosperity of a country in my opinion depends, are now fast going out of existence. My impression is that so far from there being any prospect of more money being spent on education, the question that arises is whether less should not be spent". (M.L.C.P. 1895, P.171). At about the same time, the Government of India was particular on more money being spent on "railway feeder roads". (G.O. No. 1369 L of 8th June, 1892). The remedy for the bad conditions of roads would have been the payment of provincial subsidies to Local Boards as was done before 1876 and not the curtailment of educational expenditure. But so averse was the Government to such a policy that it issued an order calling upon the Presidents of District Boards to allot every year for expenditure on roads an amount equal to halt the land-cess and the net receipts from tolls, and to furnish an annual statement to show how far these instructions were being carried out. (G.O. 1686 L. of 14th September, 1895). A similar step was taken some years later in regard to expenditure on avenues. The Government of India called attention to this subject, (Resolution No. 21-34-14 of 11th July, 1905), and in 1904-5 the Madras Government issued an order that every Board should spend annually on avenues not less than the average income from them during the preceding five years (A. A. R. 1904-5). This contagion of fixing the percentage of expenditure became widespread and an ingenious suggestion was put forward by Castlestuart Stuart, the President of the Godavari District Board, who was so very much frightened at the growth (very slow, as it really was) of education that the Government should fix the maximum (not the minimum as in other cases) that might be spent on education (Letter of 16th December 1899. G. O. 1337 L of 3rd August, 1900). The Director of Public Instruction took a quite contrary view of the matter. He complained about the evil effects of the Government Order on roads, and wanted that the minimum obligatory expenditure should be fixed in the case of education and not of roads (G. O. 425 Education, of 6th September, 1900).

A rigid rule fixing the percentage of relative expenditure is not called for. Conditions vary from one local area to another. In some districts, owing to the paucity of railways or canals, more expenditure on roads may be necessary while in others e.g. Godavari and Kistna, less. A uniform rule applicable to all the districts in the Presidency will under these circumstances be an obstacle to real progress. In some cases, it is sure to lead to extravagance and waste. It will also be fettering the discretion of Local Boards and cut at the root of local self-government. Government has every year the opportunity of reviewing the administration of each District Board and that may be availed of for making the necessary suggestions. Reliance may be placed on the good sense of the members of the Boards, their local experience, and public opinion as expressed by rate-payers. (Report of the Decentralization Commission, Para 778).

GROWTH IN RECENT YEARS

The growth in the magnitude of the work of Local Boards is clearly brought out by the statistics of their expenditure. Taking the annual average in each decade commencing from 1872-3 when the first Local Funds Act was in full operation, the figures work out as follows: - (The figures are calculated from the statistics given in the Annual Administration Reports).

1872-3 Rs. 50,12,433

1873-4 to 1882-3 " 57,24,015 per year

1883-4 to 1892-3 " 66,77,235 "

1893-4 to 1902-3 " 84,14,721 "

1903-4 to 1912-13 " 121,15,826 "

1913-4 to 1922-3 " 209,33,836 "

These figures indicate a continuous and, in the more recent decades, a rapid growth in expenditure. It rose by 15 per cent. In the first decade, 15.8 percent, in the second, 27.2 percent, in the third, 44 percent, in the fourth, and 72.7 percent, in the fifth and the last decade, and Local Boards now spend per year more than five times as much as they spent in 1872-3.

It is also noteworthy that this increase is shared by all the important heads of expenditure, although there is a difference in the rate of relative increase under each head. Broadly considered, the rate of increase under communications was slow up to 1902-3 amounting to only four percent, while in the following two decades it rose by 63 and 71 percent, respectively. The growth under education has been more steady. The annual average expenditure in the first decade was 51 per cent, more than the expenditure in 1872-3, while in each of the following four it was 46 percent, 58 percent, 46 percent, and 248 percent, more than that in the immediately preceding decade. The extraordinary increase by 248 per cent, in the last decade is the result of the new policy adopted after 1911 in regard to elementary education with the ultimate object of making it universal. Similarly under public health, the expenditure has been going up from time to time, though at a varying rate. The percentage of increase in this case is 74.18, 55, 48 and 21 respectively. Under management the expenditure stood at Rs. 1,74,902 in 1882-3 while in 1922-3 it was 13.92 lakhs, thus showing an increase of 800 per cent.

Apart from causes affecting particularly each individual item, mention may here be made of those more general factors responsible for the enormous growth of expenditure referred to above. It is to be noted in the first place that the services which the Local Boards have been called on to administer are of such a nature that they offer a limitless field for an ever-increasing outlay. It is not therefore surprising that in this long period of more than half a century, the expenditure should have increased to vast dimensions. In 1872-3 about fifteen thousand miles of road were maintained by the Local Boards while the mileage in 1922-23 was nearly twenty-six thousand. Similarly in 1872-3 the number of schools managed by the Boards and the number of pupils attending them were respectively 323 and 10,631. In 1922-23 schools increased to 9131 and pupils to 536,287. With regard to hospitals and dispensaries the number in 1872-3 was 93 and in 1922-3 it was 421. Only 427,179 patients were treated in the earlier year, while nearly five millions were treated in the later year. All this is what may be called the result of natural growth. In the second place there has been a striving after greater efficiency in each department of service. Better communications meant an increasing expenditure on bridges across rivers. More efficient education involved expenditure on school buildings, on furniture and on better apparatus for teaching, which of course included the employment of a larger number of trained teachers. Improved medical relief carried along with it better equipment of hospitals, more accommodation for in-patients and a larger supply of trained midwives and nurses. In the third place, another important factor has been in operation in recent years. It is the rise in the general level of prices, wages and salaries. The cost of materials required for roads, buildings, etc. increased in consequence; and after 1917-18, there has been an all-round revision of the salaries paid to those in the service of Local Boards. These general causes explain to a great extent how, as in the field of national and provincial expenditure, the expenditure in the field of the Local Boards also tended to continuously go up.