The Public Accounts Committee (Chair: Mr. Mallikarjun Kharge) submitted its report on ‘Tribal Sub-Plan’ on December 18, 2017. The Tribal Sub-Plan (TSP) aims to bridge the gap between the Schedule Tribes (STs) and the general population with respect to all socio-economic development indicators in a time-bound manner. TSP is not applicable to states where tribals represent more than 60% of the population. The Committee looked at the implementation of TSP in three ministries: (i) Human Resource Development; (ii) Health and Family Welfare; and (iii) Ayush.

The Committee noted several discrepancies in the implementation of the TSP, including: (i) non-adoption of specific norms for release of funds, (ii) weak programme management, (iii) deficient monitoring system, (iv) and non-implementation of information programmes.

Key observations and recommendations of the Committee include: Financial management: The Committee noted that there has been no segregation of TSP funds under a separate head at the state, district or block level. Funds under TSP are required to be put into a separate head of account, to strengthen administrative arrangements for proper utilisation and monitoring of TSP funds.

The Committee recommended that strict adherence to earmarking of funds into a separate head at every level should be made mandatory for release of funds. It also suggested that a more proactive approach should be taken to keep track of monitoring, fund utilisation, and implementation of schemes.

Non-lapsable pool for TSP fund: The Committee observed that presently, funds at the end of the financial year were not being transferred into a non-lapsable pool of TSP fund, that could be utilised later. It recommended that: (i) efforts should be made towards optimal utilisation of allocated TSP funds for a given financial year; and (ii) a non-lapsable fund should be created to pool funds that could not be utilised in a financial year.

Central nodal unit for overview: The Committee noted that guidelines detailing the process for an oversight had not been put out by the Ministry of Tribal Affairs. The basic objective of TSP is to channelize the flow of outlays from central ministries by earmarking funds for the development of STs in states (in proportion to their population). The Committee reasoned that to oversee this implementation of fund flow, a central unit of oversight should be set up. It recommended that the Ministry of Tribal Affairs should create a central nodal unit for oversight which will facilitate better co-ordination and efficient implementation of TSP through an online monitoring system.

Nodal units at state/district level: The Committee noted that NITI Aayog had suggested that TSP ministries or departments should set up nodal units for programme monitoring. These units should also indicate state-specific allocation and release for STs separately under centrally sponsored schemes and central sector schemes. The Committee stated that presently, the Departments of School Education and Literacy and Higher Education have a dedicated unit to formulate and implement TSP under the Ministry of Human Resource Development. It recommended that all TSP ministries or departments should set up their own dedicated nodal units for effective monitoring of TSP at the implementation stage.

Involvement of local community in the planning process: A Comptroller and Auditor General audit report in 2015 had highlighted that plans for schemes were being formulated without specific consideration of tribal beneficiaries as required under TSP. The Committee noted that the planning process could be strengthened with the involvement of the community in tribal dominant blocks. It recommended that inputs/ suggestions of local tribal community should be sought before finalising the plan for implementation of any programme under TSP.

its report on ‘Improvement in the functioning of Panchayats’ on July 19, 2018. The participation of local people for development of rural areas through the Panchayati Raj System was provided in the Indian Constitution through the 73rd amendment. Key findings and recommendations of the Committee with regard to the functioning of panchayats include:

Devolution of powers: Local government, including panchayats, is a state subject in the Constitution, and consequently, the devolution of power and authority to panchayats has been left to the discretion of states. The Ministry of Panchayati Raj has issued comprehensive guidelines for the effective functioning of panchayats. However, the Committee noted that the mandatory meetings of panchayats were not taking place and had poor attendance, especially from women representatives. The Committee recommended that state governments should put a quorum in gram sabha meetings for participation of panchayat representatives, including women.

In addition, subjects like fuel and fodder, non-conventional energy sources, rural electrification including distribution of electricity, non-formal education, small scale industries including food processing industries, technical training, and vocational education have not been devolved to certain states. The Committee recommended that the Ministry should pursue states to devolve these subjects for giving panchayats more power in these areas. State governments should make adequate efforts to devolve funds, functions, and functionaries to panchayats for them to effectively plan economic development and social justice schemes.

Funding of panchayats: Grants from Finance Commission play an important role in the implementation of schemes by panchayats. These grants are intended to be used to support and strengthen the delivery of basic services including water supply, sanitation, sewerage and solid waste management and any other basic service within the functions assigned to panchayats under relevant legislations. The Committee noted that some state governments have delayed releasing funds to panchayats. They subsequently had to pay interest to panchayats and wherever panchayat accounts were not audited, the grants were not released.

The Committee recommended that the Ministry should monitor the release and expenditure of Finance Commission grants to ensure that there is no delay in their release. It should also be ensured that grants are utilised in a proper and effective manner. Panchayats should also be encouraged to carry out local audits regularly so that Finance Commission grants are not delayed.

Capacity building: The Rajiv Gandhi Panchayat Sashaktikaran Abhiyan was implemented from 2012-13 to 2015-16 to address issues such as inadequate infrastructure, manpower training, and advocacy of devolution of power to panchayats. Since 2015-16, the state component of the scheme was delinked from central support due to larger devolution of funds from the 14th Finance Commission. The Committee recommended that strengthening of panchayats through capacity building and training should be given more encouragement from the centre and state governments. This would enable them to prepare better Gram Panchayat Development Plans, as well as become more responsive towards citizens’ needs.

Support staff: The Committee observed that there is severe lack of support staff and personnel in panchayats, such as secretary, junior engineers, computer operators, and data entry operators. This affects their functioning and delivery of services by them. The Committee recommended that the Ministry should make serious efforts towards recruitment and appointment of support and technical staff to ensure the smooth functioning of panchayats.

its report on the ‘Swachh Bharat Mission- Gramin in States/ UTs’ on July 19, 2018. The Swachh Bharat Mission- Gramin (SBM-G) was launched on October 2, 2014 to accelerate efforts to achieve universal sanitation coverage, improve cleanliness, and eliminate open defecation in India by October 2, 2019. Key findings and recommendations of the Committee include:

Sanitation coverage and behavioural change: The Committee is of the view that sanitation coverage figures may not reflect the actual progress of the Mission on ground. It stated that even a village with 100% household toilets cannot be declared Open Defecation Free (ODF) till all the inhabitants start using them. It recommended that the government needs to take adequate steps to bring about behavioural change in rural India and inculcate a sense of hygiene among the inhabitants. This should be done through mechanisms such as extensive awareness campaigns.

Quality of toilets: The Committee stated that it is aware of the low quality of raw materials being used in the construction of toilets under SBM-G. It raised serious concerns over this issue and urged the Ministry of Drinking Water and Sanitation to ensure that the standard quality raw materials are used for construction of toilets.

Availability of water: Construction of toilets without adequate availability of water will be an impediment to achieving 100% sanitation coverage in rural areas. The Committee recommended that provision of water availability should be prioritised along with construction of toilets to attain ODF status across all villages.

Data accuracy: 77% of households in rural India have access to toilets, and about 93% of them use toilets regularly. However, the Committee noted that in the past, the fall back rate of ODF declared villages was very high, either due to: (i) filing of wrong information regarding attaining of ODF status, or (ii) non-sustainability of toilets. This has led to ODF villages going back to open defecation, while as per records, they remain ODF. The Committee recommended that information on ODF declared villages must be collected accurately on a continuous basis, either through an institutional mechanism or through resurveys.

Unspent balances: In 2017-18 and 2018-19 (as of May 2018), Rs 4,197 and Rs 9,890 crore is the unspent balance under SBM-G. Several states, including Andhra Pradesh, Bihar, Madhya Pradesh, and Uttar Pradesh have large unspent balances. The reasons responsible for unspent balances include: (i) inadequate capacity building at grass root level, and (ii) existence of revolving funds and leveraging other sources of credit, among others. The Committee recommended that unspent balances be liquidated by strengthening the implementation constraints and through strict monitoring. In case the State Implementing Agencies are not utilising the normal allocation, the government may frame state specific action plans to liquidate the unspent balances.

Release of central share: The Committee advised that installments of central share should be strictly released in accordance with the guidelines of SBM-G, only after: (i) ascertaining the veracity of Utilisation Certificates (UCs) received by the central government from states, and (ii) use of unspent balances within stipulated time frame by states.

Solid and Liquid Waste Management (SLWM): SLWM has traditionally represented unique challenges in rural areas, due to the practice of open defecation and indiscriminate dumping of solid and liquid waste. The lack of waste segregation and dispersed population further creates roadblocks in bringing economically viable market-based solutions.

To create clean villages, it is essential that Information, Education, and Communication (IEC) interventions under the Mission focus on creating awareness about SLWM. The Committee recommended that the Ministry of Drinking Water and Sanitation should devise new and effective strategies for yielding better results for SLWM under SBM-G.

The Law Commission of India (Chair: Justice B.S. Chauhan) submitted its report on July 5, 2018, examining whether betting may be legalised in India. The report follows a Supreme Court directive in 2016 where the Court asked the Commission to examine the possibility of a law to regulate betting. The Commission noted that while it is desirable to ban betting and gambling, it is difficult to prevent these activities altogether. Therefore, it recommended regulation of gambling and betting.

Regulating gambling and betting: Betting and gambling is a state subject under the Constitution. Therefore, the Commission noted that state legislatures may enact a law to regulate betting and gambling. However, it stated that Parliament may enact a model law to regulate betting and gambling, which states may adopt. Parliament may also enact laws under Article 249 (in national interest) or Article 252 (if two or more states consent). With regard to online gambling and betting, it observed that Parliament has the competence to enact a law.

Regulations governing gambling and betting: The Commission recommended that gambling and betting should only be permitted by licensed operators from India. For participants, it recommended that there should be a cap on the number of such transactions for a specific time period, i.e., monthly, half-yearly or yearly. It further recommended that transactions between operators and participants should be made cashless and penalties should be imposed for cash transactions.

In order to protect the public from the ill-effects of these activities and to increase transparency and state supervision, the Commission recommended that all betting and gambling transactions should be linked to the Aadhaar/PAN Card of the operator and the participants. Further, any income derived from betting or gambling should be made taxable under the Income Tax Act (IT Act), 1961, the Goods and Services Tax Act (GST), 2017, and other relevant laws.

Classification of gambling: The Commission recommended classifying gambling activities into two categories, namely ‘proper gambling’ and ‘small gambling’. “Proper gambling” would be characterised by higher stakes. Only individuals belonging to higher income groups will be permitted to indulge in “proper gambling”. Individuals belonging to the lower income groups will only be permitted to indulge in “small gambling”. The stakes for “small gambling” will fall below the bracket of of stakes permitted in “proper gambling”.

Prohibited persons: The Commission recommended that certain classes of persons should be barred from participating in online or offline gambling platforms. These persons include: (i) minors, (ii) those who receive subsidies from the government, or (iii) those who do not fall within the purview of the Income Tax Act, 1961, or the Goods and Services Tax Act, 2017.

Amendments to FEMA: The Commission recommended that the Foreign Exchange Management Act, 1999 and the Foreign Direct Investment Policy be amended to encourage Foreign Direct Investment in the casino/online gaming industry, and for other purposes. It felt that this would propel the growth of tourism and hospitality industry in such states, and would also lead to higher revenue and an increase in employment opportunities.

Amendment to IT Rules: Under the Information Technology (Intermediary Guidelines) Rules, 2011, intermediaries are barred from hosting or transmitting content relating to or encouraging gambling. The Commission recommended barring only those intermediaries which illegally transmit or host content related to gambling. This will ensure that intermediaries are not held liable in states which license gambling.

Match-fixing and sports fraud: The Commission recommended that match-fixing and sports fraud should be made criminal offences with severe punishments.