Unit 1

AN INTRODUCTION TO PUBLIC ADMINSTRATION

Meaning
The word Administer is an English word, which is originated from the Latin word ‘ad’ and
‘ministrare’, which means to care for or to serve. Administration may be defined as the group
activity which involves cooperation and coordination for the purpose of achieving desired goals
or objectives.

Various definitions of Public Administration are as follows-

Prof. Woodrow Wilson, the pioneer of the social science of Public Administration says in his
book ‘The study of Public Administration’, published in 1887 “Public Administration is a
detailed and systematic application of law.”

According to L. D. White “Public Administration consists of all those operations having for
their purpose the fulfilment of public policy as declared by authority.” Both above definitions are
done from traditional viewpoint and related only to the functions and actions of Administration.

According to Gullick -
“Public Administration is that part of the science of administration which has to do with
government and thus, concerns itself primarily with the executive branch where the work of the
government is done.”

According to Waldo -
“Public Administration is the art and science of management as applied to the affairs of the
state.”

Important characteristics of Public Administration

1. It is part of executive branch of government.
2. It is related with the activities of the state.
3. It carries out the public policies.
4. It realize the aspirations of the people as formulated and expressed in the laws.
5. Waldo and other thinkers insist on the commitment and dedication to the wellbeing of the
people. Otherwise Public Administration behaves in a mechanical, impersonal and inhuman way.
6. Public Administration is politically neutral.

Scope of Public Administration

Following are the three important perspectives about the scope of Public Administration.
1. Narrow perspective or posdcord perspective.
2. Broad perspective or subject-matter view.
3. Prevailing view.

Narrow perspective or posdcord perspective -

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Luther Gullick is the main exponent of this perspective. According to him the scope of public
administration is narrow or limited. It is also regarded as posdcord view. It insist that the Public
Administration is concerned only with those aspects of administration which are related with the
executive branch and its seven types of administrative functions.
These seven types of functions which shows the scope of Public Administration are as follows -
1. ‘P’ stands for planning
2. ‘O’ stands for organization
3. ‘S’ stands for staffing.
4. ‘D’ stands for Directing.
5. ‘Co.’ stands for Co-ordination.
6. ‘R’ stands for Reporting
7. ‘B’ stands for Budgeting

Broad perspective or subject - oriented perspective:-

Prof. Woodrow Wilson, L D While are main exponent of this perspective. They have taken a
very broad approach about the scope of Public Administration.
According to them
(A) Public Administration covers all three branches of the government. Legislative, Executive
and Judicial and their interrelationship. Legislative organ makes the laws, Executive organ of the
government implements the laws and Judicial organ of the government interprets the laws. There
is interrelationship between these three organs.
B) Scope of Public Administration is like a cooperative group. It consist of all from class one
officer to class four employees.
C) Public Administration is a part of the political process. It has an important role in the
formulation of public policy at all levels, from national to grassroot. It is closely associated with
numerous private groups and individuals in providing services to the community. It has been
influenced in recent years by the human relations approach.

Prevailing view:-
Prevailing view divides the scope of Public Administration into two parts.-
1) Administrative theory
2) Applied administration
1. Administrative theory -
It includes the following aspects.
a) Organizational Theory -
The Structure, organization, functions and methods of all types of public authority engaged in
administration, whether national, regional or local and executive.
b) Behaviour
The functions of administrative authorities and the various methods appropriate to different types
of functions. The various forms of control of administration.
c) Public Personal Administration -
The problems concerning personnel e.g. recruitment, training, promotion, retirement etc. and the
problems relating to planning, research, information and public relation services.
2. Applied administration -
It includes the following aspects:-
a) Political functions -

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It includes the executive - legislative relationship, administrative activities of the cabinet, the
minister and permanent official relationship.
b) Legislative function -
It includes delegated legislation and the preparatory work done by the officials in connection
with the drawing up of bills.
c) Financial functions -
It includes total financial administration from the preparation of the budget to its execution,
accounting and audit etc.
d) Defense - Functions relating to military administration.
e) Educational function - It includes functions relating to educational administration.
f) Social welfare administration -
It includes the activities of the departments concerned with food; housing, social security
and development activities.
g) Economic Administration -
It is concerned with the production and encouragement of industries and agriculture.
h) Foreign administration -
It includes the conduct of foreign affairs, diplomacy, international cooperation etc.
i) Local administration -
It concern with the activities of the local self-governing institutions.

Significance and Importance of Public Administration

In today’s modern state and in developing countries functions and role of Public Administration
is very important. The role and importance of Public Administration are as follows.
1. It is the basis of government.
2. It is the instrument of change in the society.
3. It plays vital role in the life of the people.
4. It is an instrument for executing laws, policies, programmes of the state.
5. It is a stabilizing force in the society as it provides continuity.
6. It is instrument of national integration in the developing countries which are facing classwars.

1. It is the basis of Government -

It is possible for a state to exist without a legislature or judiciary; but not even the most backward
state can do without administrative machinery. The modern state cannot confine its field of
activities to merely maintenance of law and order, dispensation of Justice, collection of revenue
and taxes and participation in welfare activities. The modern welfare state is expected to provide
more and more services and amenities to the people. Public Administration is the machinery
used by the state to place itself in a position to make plans and programmes that can be carried
out.
2. It is the instrument of change in the society -
Public Administration is regarded as an instrument of change and is expected to accelerate the
process of development. In our country, the government has undertaken the task of levelling
down the economic inequalities, spreading education among all abolishing untouchability
securing equality of status, rights of women and effective and all round economic and industrial
development. The burden of carrying out these social changes in a planned and orderly way rests
upon the Public Administration of the country. The success of Indian democracy will depend not
only on the wisdom of the legislature but more on the capability and sense of purpose on the part
of the Administration.

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3. It plays vital role in the life of the people -
Today every aspect of human life come within the range of Public Administration. Various
departments of government such as education, social welfare, food, agriculture, health,
sanitation, transport, communication etc. are run by the department of Public Administration.
Thus Public Administration is rendering various types of services to the people from birth to
death of an individual.
4. It is a stabilizing force in the society as it provides continuity
Public Administration is carried on by the civil servants who are the permanent executives.
Political executives i.e. ministers may come and go, systems of government or constitutions may
undergo change but administration goes on forever. Hence, Public Administration is a great
stabilizing force in society. It is a preserver of the society and its culture.
5. It is instrument of national integration in the developing countries which are facing
classwars.

Evolution of Public Administration

Public Administration as an independent and separate subject of study began in 1887 and the
credit for this goes to Woodrow Wilson. In order to understand the present status of the
discipline as a field of inquiry it becomes essential to study its evolution. Many scholars and
academicians dwelt upon this aspect from different perspective. Some of them have discussed it
from the point of view of traditions such as Absolutist, Liberal- Democratic and Marxian while
to Golembiewski it may be understood in terms of locus and focus. To him locus is the
institutional ‘where’ of the field while focus is the specialized ‘what’ of the field. Public
Administration as an academic field can be discussed through the following five successive
phases;

Phase I: The Politics/Administration Dichotomy (1887-1926)

Woodrow Wilson was the first scholar who mainly set the tone for the early study of Public
Administration through his essay entitled “The Study of Administration” appeared in 1887 in
which he emphasized the necessity of developing the scientific foundations of the discipline. He
originated the politics/administration dichotomy‘- the distinction between political activity and
administrative activity in public organization by observing that it is getting harder to run a
constitution than to frame one. However some scholars like Richard J. Stillman II differ with this
contention arguing that Wilson was well aware that public administration was innately political
in nature. In fact, while formulating his politics/administration dichotomy, Wilson apparently
misinterpreted some of the German literature that he read on Public Administration which made
him ambivalent about the discipline. To quote Stillman, Wilson failed- to amplify what the study
of administration actually entails, what the proper relationship should be between the
administrative and political realms. However, this dichotomy has paved the way for the study of
evolution of Public Administration.
Wilson‘s view was further continued by Frank J. Goodnow, who in his book “Politics and
Administration‟, published in 1900 contended that there were two distinct functions of the
government viz. ‘politics’ and ‘administration‘. According to him, politics has to do with policies
or expressions of the state will while administration has to do with the execution of these
policies. He explained, further, that the heart of his distinction lies in the classic separation of
powers, which prescribes the desirability of entrusting- in large measures the expression or
formulation of the will of the sovereign to- a different organ than is charged with executing that

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will. However, Goodnow‘s basic distinction is not as crude as many understand. In this regard
Golembiewski has rightly pointed out that Goodnow‘s distinction is not monolithic, either in
locus or focus. The two functions are not performed in different loci.
In 1926 Leonard D. White‘s “Introduction to the Study of Public Administration” was
published which is regarded as the first book entirely devoted to the discipline. The main thrust
of White‘s text book was Politics should not intrude on administration. Public Administration is
capable of becoming a value free science in its own right and the mission of administration is
economy and efficiency. Thus, White strengthened the notion of a distinct politics/administration
dichotomy. Accordingly, whatever Public Administration scrutinized in the executive branch
was regarded as factual and scientific; while the study of public policy making and related matter
was left to the political scientists. It was mainly because of the emphasis on science and fact in
Public Administration, a foundation was laid for the later discovery of certain scientific
principles of administration.

Phase II: The Principles of Administration (1927-1937)

During this phase, scholars believed that Public administration is a separate activity with its own
well marked field and principles. In 1927, W. F. Willoughby‘s book “Principles of Public
Administration‟ was published in which he asserted that in administration there are certain
fundamental principles of general application analogous to those characterizing any science.
They could be discovered and administrators would be expert in their work if they learned how
to apply these principles. Further, efficiency in administration would be increased if these
principles are applied. By the very fact that the principles of administration were principles, it
therefore, followed that they could be applied successfully in any administrative setting.
Among the most significant works relevant to this phase were M. P. Follet‘s “Creative
Experience” (1924), Henri Fayol‘s “Industrial and General Management” (1930) and James
D. Mooney and Alan C. Reiley‘s “Principles of Organization” (1939) all of which delineated
varying number of overarching administrative principles. However, the landmark study in the
field which enhanced the prestige of the discipline was the publication of Luther Gulick‘s and
Lyndall Urwick‘s “Papers on the Science of Administration” (1937). According to these
scholars, the general thesis of this paper is that there are principles which can be arrived at
inductively from the study of human organization which should govern arrangements for human
associations of any kind. Further, they propounded the famous concept of POSDCORB final
expression of these principles. Resultantly, Public Administration touched its zenith and this
phase is regarded as a golden era in the evolution of the discipline.
Organizational theorists often dub this school of thought Administrative Management since it
focused on the upper hierarchical levels of organization. A related literature that preceded the
work in administrative management was under continuing development in business schools,
often called Scientific Management. The most notable contribution to the literature was F. W.
Taylor‘s “Principles of Scientific Management” (1911). However, Scientific Management had
less effect on public Administration during its principles phase because it focused on lower level
personnel in the organization. Speaking in terms of locus and focus Mohit Bhattacharya has
rightly pointed out that the public aspect of public administration was virtually dropped at this
stage and the focus was almost wholly on efficiency.

Phase III: Criticism and Challenges (1937-1950)

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In the very next year (1938), the mainstream Public Administration was challenged with the
publication of Chester I. Barnard‘s “The Functions of the Executive‟. The challenge came
basically in two forms: first, rejection of the idea of politics administration dichotomy and
second, principles of public administration lacking in scientific validity. A book entitled
“Elements of Public Administration” edited by Fritz Morstein Marx (1946) was one of the first
major volumes to question the assumption that politics and administration could be
dichotomized. It was argued that administration cannot be separated from politics because of its
political nature. Further, administration is not only concerned with implementation of political
policy decisions but also plays an important role in their formulation. According to Nicholas
Henry, the rejection of the politics/administration dichotomy was a huge intellectual shift that
fundamentally changed the nature of the field for decades and, in a way, also diminished it.
The second challenge to the field was that there could be no such thing as principles of
administration. In 1946, Herbert Simon gave a foreshadowing of his Administrative Behavior in
an article entitled “Proverbs of Administration‟ published in Publication Administration
Review. However, the most formidable dissection of the principles notion appeared in 1947
when Simon‘s “Administrative Behaviour: A Study of Decision-Making in Administrative
Organization‟ was published. In this book Simon showed that for every principle of
administration there was a counter principle, thus rendering the whole idea of principles
redundant. He advocated the behavioral approach to public administration to make it a more
scientific discipline. He focused upon decision- making as the alternatives to the principles
approach.
In the same year, Robert A. Dahl also countered the claim of principles of public administration
as a science in his article entitled “The Science of Administration: Three Problems”. He
observed: We are a long way from a science of public administration. No science of public
administration is possible unless: (a) the place of normative values is made clear; (b) the nature
of man in the area of public administration is better understood and his conduct is more
predictable; and (c) there is a body of comparative studies from which it may be possible to
discover principles and generalities that transcend national boundaries and peculiar historical
experiences. The same theme was reflected by Dwight Waldo‘s in his book ‘The Administrative
State‖’ (1948) when he attacked the notion of unchanging principles of administration, the
inconsistencies of the methodology used in determining them, and the narrowness of the values
of economy and efficiency that dominated the field‘s thinking.’

Phase IV: Crisis of Identity (1948 – 1970)

The discipline was in quandary and suffered from the crisis of identity due to the abandonment
of politics administration dichotomy and the principles of public administration. So the scholars
of public administration reacted to this crisis by reestablishing the linkages of Public
Administration first with Political Science and then with the Management. Speaking in terms of
Political Science, it can be said that most of the writings on Public Administration in the 1950‘s
spoke of the field as an emphasis, and area of interest or even as a synonym of Political Science.
John Gaus, for example, in his famous article “Trends in the Theory of Public
Administration” (1950) observed that a theory of public administration means in our time a
theory of politics also. However, they were not liked and encouraged by political scientists.
During this period two developments took place the growing use of the Case Study Method and
the rise and fall of Comparative and Development Administration. The emergence of the case
study method reflected the response of Public Administration to the behavioral revolution going

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on in that time in social sciences. So far as the rise of Comparative and Development
Administration is concerned, it may be pointed out that prior to the abandonment of the
principles of administration, it was assumed that cultural factors did not make any difference in
administrative settings. But, later on, scholars like Robert Dahl and Dwight Waldo pointed out
that cultural factors could make public administration on one part of the globe quite a different
on the other part. As a result of this revised thinking, the study of Comparative Public
Administration started in Universities and Colleges. However, the real impetus came in 1960
when Comparative Administrative Group was founded which received liberal grants from Ford
Foundation. The Foundation‘s emphasis on the Third World led to a semi-autonomous sub-field
of the Comparative Public Administration called the Development Administration. The most
notable contribution in this sphere was that of F. W. Riggs. But Comparative Public
Administration from its very origin emphasized upon theory building and to seek knowledge for
the sake of knowledge. The purely scholarly thrust of Comparative Public Administration led to
its downfall so much so that in 1973 the Comparative Administrative Group was disbanded.
Due to their second-class status in the discipline of Political Science, some scholars of Public
Administration began to search for an alternative and they found the same in management which
sometimes is called administrative science. They argued that organization theory was, or should
be, the overarching focus of public administration. A number of developments led to the
selection of management, with an emphasis on organization theory, as the paradigm of public
administration. In 1956, the important Journal Administrative Science Quarterly was founded
on the premise that the distinction between business and institutional administration is false and
that administration is administration. Further, such works as James G. March and Herbert
Simon‘s “Organizations‟, Richard Cyert and March‘s “A Behavioural Theory of the Firm,”
March‘s “Handbook of Organizations” and James G. Thompson‘s “Organizations in Action”
gave solid theoretical reasons for choosing Management as the paradigm of Public
Administration. As a paradigm, Management provided a focus and not a locus. It offered
techniques, often highly sophisticated techniques, that require expertise and specialization, but in
what institutional setting that expertise should be applied is undefined. Regarding the relative
impact of political science and management on Public Administration, Nicholas Henry has
observed that ‗if political science was profoundly influenced on the evolution and underlying
values of public administration, management was less so. But, in many ways, the impact of
management on public administration was also more positive. But in both the situations i.e. its
linkages either with Political Science or Management, the essential thrust was one of Public
Administration loosing its identity. That is why this phase known as period of identity of crisis
for the discipline of Public Administration.

Phase V: Public Administration as an Independent Discipline (1970 Onwards)

However, even when the discipline of Public Administration was at its lowest ebb, it was sowing the
seeds of its own renaissance. Couple of factors, complimentary to each other, contributed in this
process. The first was the development of inter- disciplinary programs focusing upon policy science.
In this regard three distinct inter-theoretical linkages a) politics-administration union, b) Economics-
administration confluence, and c) organization theory administration intermixing can be identified.
The second was the emergence of New Public Administration (NPA) an outcome of first
Minnowbrook Conference held in 1968 sponsored by Dwight Waldo which put more emphasis on
values replacing the traditional goals of efficiency and effectiveness. Besides, it laid stress on
relevance, social equity and change. The overall focus of NPA movement was to make
administration less generic and more public, less descriptive and more prescriptive, less institution-

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oriented and more client-oriented, less neutral and more normative, but it should be no less scientific
all the time. The above twin intellectual currents compelled the scholars of public administration to
think in terms of academic autonomy by severing their ties both with political science and
management. These, in turn, made the public administrators proud as they started asserting that their
profession is useful to the society. All these developments led to the rise of an independent field of
public administration.
In this backdrop, in 1970 National Association of Schools of Public Affairs and Administration
(NASPAA) was established which comprises of institutions of higher learning of different countries
offering courses on major public administration programs. It is worth mentioning that over the years,
the efforts of NASPAA has led to the increase in the number of separate departments of public
administration considerably. Even more and more political science departments are joining this
association. Likewise, the number of public administration programs which are housed in department
of management or school of business administration has declined noticeably. Thus, the formation of
NASPAA represented the development of public administration as an independent area of study.
The Public Choice Approach of Vincent Ostrom underlined the fact that an era of State Minimalism
has started in the 21st century which demand small but effective government from public
administration. Another trend which one can observe is that the distinction between administration
and management is becoming irrelevant. Traditionally, management is broadly concerned with
industries and private enterprises while administration refers to government machinery. Now when
government itself is conducting industrial and commercial activities through public enterprise and
private enterprises, in turn, are adopting more and more bureaucratic system; and public and private
sectors are collaborating with each other in the wake of privatization, the difference between
administration and management becomes meaningless. Evidently, government is an important
element of the state and the concrete form of government is administration‘.

Wilson’s vision of Public Administration

Prof. Woodrow Wilson is called the ‘Father of Public Administration’ because the genesis of the
subject can be traced back to Wilson’s article, “The study of Public Administration” published in
1887, which was published in Political Science Weekly. This article laid down the basic
foundation of public administration. Wilson was the 28 th president of United States. In his book
he made a distraction between Political Science and Public Administration. Before this, it was
treated as a branch of political science. Secondly, while commenting on the role of Public
Administration, he said Administration is the most obvious part of government. It is government
in action and the most visible side of the government. Hence, he defined “Public Administration
as detailed and systematic application of law. It consists of all those operations having for their
purpose the enforcement of public policy as declared by authority.” He argued for a science of
administration “Which shall seek to straighten the paths of government.” Thus, Wilson had
projected the dichotomy view, which was picked up by other writers.
During the publication of Wilson’s article in 1887, the state of US was facing with two major
problems-
 Socio-economic problems
 Progressive movement
To overcome these problems Wilson proposed the concept of Politics- Administrative
Dichotomy and distracted politics from the administration.
Public administration is detailed and systematic execution of the law. Every particular
application of law is an act of administration.

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Administration is the most obvious part of the government in action, it is executive, the
operative- the most visible side of the government.
 Politics is different and separated from administration.
 Administration questions are not political questions.
Wilson says that field of administration is a field of business It is removed from the hurry and
strife of politics.
Basic Arguments–
It is harder to run a constitution than to frame it
The science of administration should seek to
• Straighten the paths of the Govt.
• Make its business more business like
• Strengthen and purify its organization
• Crown its duties and dutifulness.
WEBER's BUREAUCRATIC MODEL:
Max Weber was a German sociologist who is credited with laying down the first proper theory of
bureaucracy. Bureaucracy was first coined by a French economist Vincent DeGourney in 1745
which literally means 'desk rule'. Weber is considered as one of the most important thinkers and
contributors to administrative theory as his model of bureaucracy brought along a paradigm shift
in the field. Bureaucracy refers to a hierarchical organization in which functions and powers are
most efficient form of organization and is purely official and rational. His theory was a response
to the questions posed by the Industrial capitalist economy that required an efficient
administration for their functions. Though bureaucracy was in practice since 186 century b. c
through the mode of public exams for recruitment Weber was the first to attempt the systematic
understanding of Bureaucracy.
Weber stressed that Bureaucracy was legitimate authority. And according to him the components
of authority are:
1) An individual or a body of individuals who rule.
2) An individual or a body of individuals who are ruled
3) The will of the rulers to influence conduct of the ruled
4) Evidence of the influence of the rulers in terms of the objective degree of command and
5) Direct or indirect evidence of that influence in terms of subjective acceptance with which the
rule obeyed the command.
All these parts are to be in perfect tandem to each other if the authority is to be considered
legitimate and successful. Weber also categorized people in organization and how they behave:
1) Those who are accustomed to obey commands

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2) Those who are personally interested in seeking the existing domination continue
3) Those who participate in that domination
4) Those who hold themselves in readiness for the exercise of functions.
After discussing the various parts that make up authority and make it seem legitimate to be
followed above, Weber has gone on to classify Authority in its various ideal/pure forms which is
based on its claim to legitimacy and how the above mentioned components/parts of authority
remain the same but adapt and work in tandem under different forms of authority. He starts from
the type of authority in ancient times to medieval times and the modern times.

TYPES OF AUTHORITY - WEBER:

1) Charismatic Authority: It is based on following a leader who has personal charismatic
qualities that attract people. In this type of authority society no legal rules govern administration.
Followers obey the leader's orders primarily because they perceive him as having super-human
qualities.
2) Traditional Authority: It depends on the acceptance of the sanctity of immemorial tradition
and it is the most universal and primitive type of authority structure. Its administrative staff may
consist of two patterns: patrimonial and feudal. In the patrimonial pattern the officials of
administration are personal servants of the ruler and they owe him traditional loyalty. In the
second one that is feudal pattern the officials have greater autonomy with their own sources of
income but even they owe the ruler traditional loyalty. Nepotism is rampant.
3) Legal-Rational Authority: Here, the bureaucracy forms the core of the administrative system.
It is called 'rational' because in it the means are clearly designed to achieve certain specific ends.
It is called 'legal' because authority is exercised by means of system of rules and procedures that
are already established before hand. This is what is being practiced in the modern society today
in government organizations and bureaucracy and Weber considered it the most sensible and
efficient form of authority.

MAX WEBER's ELEMENTS/BASICS OF BUREAUCRACY:

Max Weber listed out some basic features of bureaucracy, especially the Legal
Rational Type. They are:
1) Impersonal order - Officials remain unattached and are only concerned with their job without
becoming personally involved.
2) Rules - Officials are bound by rules and these rules regulate the office conduct. Rules become
more important at times than the goal of the organization leading to red tapism.
3) Sphere Of competence - It involves circle of obligation to perform functions which is
systematic division of labour/work.
4) Hierarchy - There is a hierarchy system and the lower ones are working under the upper
management.
5) Separation of personal and public ends - Officials cannot use their official position for
personal gains.
6) Written documents - All actions are recorded in writing to make the administration
accountable to people and provide for future a ready reference as and when asked for.
7) Monocratic type - Certain functions performed by bureaucracy cannot be performed by others.
8) Selection by merit
9) Fixed remuneration of officials.

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10) The official is subject to discipline and control while performing tasks.
11) Office remains forever, officials change. Office is important not the person occupying it.
12) Required position and authority is allocated to a designation so that its incumbent can
discharge his duties smoothly and people follow his orders.
13) Allocation of activities of the organization needed to fulfil its goals.

LIMITS ON BUREAUCRACY:
Max Weber has also suggested ways to curb bureaucracy from becoming a giant and arbitrary
power. Those are:
1) Collegiality - A group of people to be considered before taking any major decision and only
on securing majority can it be implemented. Its disadvantages are that at times it is misused and
speed of decision and responsibilities are held back.
2) Separation of powers: Like at first the CAG had responsibility of both accounting and audit
that made him a monopoly and transparency as well as efficiency was subverted. Thus,
accounting was given to another body and now CAG only performs Auditing function. Thus,
both the bodies keep a check on each other and the government collectively.
3) Amateur administration: From time to time amateurs should be taken in.
4) Direct Democracy: Office of the bureaucracy is permanent and guided by the legislative
assembly and also answerable to them directly instead of the minister in charge being
accountable to Lok Sabha for his ministry's bureaucrats.
5) Representation: In the democratic form of govt. the authority of the state/bureaucracy will be
elected by representative of the people.
CRITICISM:
1) Unresponsive to popular demand and desires.
2) Red tape or over formalism - Officials only following rules all the time and so files take
longer to travel from desk to desk.
3) Bureaucracy is self-perpetuating - Increase of staff but no increase in work thus leading to tax
payer paying more money for nothing.
4) Self-aggrandizement: Ministers are responsible in a democracy for their bureaucracy's
functioning in their ministry.
5) Departmentalism or empire building: Bureaucracy encourages the evil work of govt into a
number of isolated and self-dependent sections each pursuing its own needs without any
adequate correlation with the rest.
6) Bureaucracy loves tradition and stands for conservatism: Develops a negative psychology that
breeds non-transparency and stoppage to information.

RELEVANCE OF WEBER's BUREAUCRACY:

His ideas in spite of criticism are followed religiously in govt. and private organizations till date
like selection of officers based on merit and utility of written documents, hierarchy, etc.
Bureaucracy has stood the test of time and irrespective of time and place and whether socialist or
capitalist one will find bureaucracy everywhere. It cannot be possible to perform some of the
functions of the welfare state and development programmes without bureaucracy and people
look to bureaucracy for their day-to-day requirements. Max Weber studied the various factors
and the condition that contributed to the growth of bureaucracy in ancient as well as modern
times, i. e. the development of modern large scale organizations and technology and the capitalist
system. His theory has helped develop a structure of bureaucracy and also infuse professionalism

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into it in modern times. Bureaucracy as stated by Weber was more capable of operating with
greater efficiency and rationality if timely reforms are incorporated from time to time as per the
time and situation to make it more relevant to the present day.

POST WEBERIAN DEVELOPMENTS:

The post-Weberian development view has emphasized on decentralization and bottom up
approach. It advocates not a rigid model of administration instead it aims at an administration
which is responsive, responsible, accountable, and transparent and result oriented and technology
savvy. Monocratic type of organization of Weber has changed to a public - private partnership
corporation and there is more shift to privatization with the Govt playing the role of a facilitator
in this time of liberalization, privatization and globalization.

PARTICIPATIVE MANAGEMENT (RENSIS LIKERT, CHRIS ARGYRIS, D.

McGREGOR)
Participative process in decision making instead of imperative decision making taken at superior
levels only. Subordinates are given equal stage as upper management in important decisions of
the organization to help them achieve self-confidence and self-respect and a feeling of belonging
to the organization as a whole. Thus leading to integrated and successful organization
environment and functioning.
Participative management consists of the following steps:
1) Involvement of subordinates in the Establishment of the overall objectives.
2) Active involvement of the subordinates during finalization of goals for his node.
3) Sufficient discretion given to the subordinate in regards to the procedures to be applied for
completing the assigned task.
Through this process of participative management one can see the coming together of both the
psychological, social, economical as well as rational as well as organizational/official aspect of a
worker with sufficient autonomy. Subordinates don't feel like they are being imposed with orders
but are equally a part of those orders. It promotes equity. Participative management can be seen
in practice in Panchayati Raj institutions.

RENSIS LIKERT:
Likert is an important theorist of organisation and is known for his famous works ‘New patterns
of management (1961)' and Human organization- its management and values (1967)'
He studied organizational structures and considered them as interaction influence system where
success is achieved if there is a reciprocal influence by many members, in simple words
participation as a whole by all members. His 4 systems of management were:
1) System 1 - Exploitative-Authoritative: Under this system Likert states there is rigid
hierarchy and rules followed and superiors feel that talking down and directing their subordinates
is the answer to all solutions as subordinates should only do what is prescribed to them as they
lack the requisite knowledge. Strict punishments are given out in cases of non-compliance to
superior orders and organizational rules.
2) System 2 - Benevolent-Authoritative: Superior is benevolent but takes all decisions and
makes rules. However, at times he may selectively allow some inputs from subordinate nodes.
Carrot and stick formula is used (please read above for definition). Sometimes harsh
punishments may also be instituted and though communication is mostly downward on the
hierarchy scale at sometimes it can be reversed as well.

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3) System 3 - Consultative: Here though decisions are taken at the superior level only but
substantial confidence is exhibited towards subordinates level. Superiors believe that a
consultation with all employees working in the same function before taking an organizational
decision to achieve set objectives always lead to good choices. Controls over subordinates are
situational. Communication flows both ways that is top down and vice versa and motivation is
substantial for workers. Rewards and participation are present along with occasional
punishments as and when required.
4) System 4 - Participative: In this system a superior has complete confidence in his
subordinates and communication flows in all directions in a free environment. Controls are self-
established as in subordinates have self-control and take important decisions in the organization
with approval of superior who acts more of a Friend, philosopher and guide to subordinates and
the principle of equity is ensured. Since subordinates are given such a free hand there is also a lot
of responsibility on their heads as they voluntarily take up the task and so they have to be ready
for the consequences no matter how worse they are. So this keeps them on their toes and they
work as hard as possible to keep up their status and employment and self-respect and self-
confidence thus leading to the best interests of them and the organization.

CHRIS ARGYRIS:
Another important contributor to humanistic perspective of organizational/administrative theory.
He criticised Classical theorists. He stated that the formal/closed organization theory suggested
by them only leads to the worker becoming frustrated and failure. He along with Right Bakke
developed a fusion process theory of management and workers in which he had emphasized:
1) Socializing: Through this process individuals are made in to representatives of the
organization they work for.
2) Personalizing: Through this mechanism organizational groups or facilities are used by
employees for his self-actualization or achievement of his highest possible talent and potential.
He argued for managers to provide their subordinates with sufficient space and give them
recognition for tasks well performed and help them progress and evolve. New initiatives should
be encouraged and responsibility should be encouraged in members. An open and frank attitude
towards ideas both from bottom & above should be emphasized. He has been criticized for his
over emphasis on human and interpersonal aspects because as per many scholars organization is
not for the welfare of individuals but for the organization as a whole and the responsibility of the
management is not to develop people but to develop the climate and opportunities for self-
development. He is relevant as he has joined the area or increasing organizational health and
conditions in order to improve interpersonal competence and for an environment of motivation
by managers for self-realization of workers as individuals.

DOUGLAS Mc GREGOR:
McGregor in his argument has emphasized again on humanistic perspective and the involvement
and participation in the organizational functioning in an organization through his book 'Human
Side of Enterprise'. To explain the types of management styles existing in organizations he has
given the following concepts:
1) Theory X of managers: It emphasizes on structure, rules and procedures.
2) Theory Y of managers: Emphasize on human aspect. More successful approach in organizing
groups for productivity and efficiency as members experience high job satisfaction and for this

13
reason perform committedly. Let’s go into details of McGregor's Theories X and Y of managers
in organizations.

Theory X following Managers:

Managers following this kind of approach feel that:
1) Workers have a natural dislike for work.
2) Workers do not like taking responsibility.
3) Workers do not like challenging tasks.
4) Workers work better in an environment of standardized rules and procedures.
5) Workers lack creativity and innovation.
6) Workers like to be directed/ordered and perform better when specific orders are directed at
them.
7) For the motivation of workers carrot and stick arrangement can be used.

Theory Y following Managers:

Managers following this kind of approach feel that:
1) Workers show interest towards work when they have sufficient work assigned.
2) Workers take responsibilities when they are provided with opportunity for recognition.
3) Workers take up challenging tasks when superiors show trust in them.
4) Workers work better when they are allowed necessary discretion in regards to selection of
procedure and methods while performing a task.
5) Workers can be creative and innovative where they are provided sufficient space for the same.
6) Workers perform better when their "self" is allowed to operate.
7) Workers are seen to be motivated when they are provided with opportunities for advancement,
learning and recognition.

F.W. RIGGS’S MODEL

Fred W. Riggs, a pioneer in the field of comparative Public Administration, has made a
significant contribution to the field of development administration also.
“Frontiers of Development Administration”, “The idea of Development administration” and
“Administration in Developing Countries” are some of his important works, which contain his
views on development administration. As the long-time chairman of the Comparative
Administration Group (CAG), F.W. Riggs is regarded as the prime mover of academic interest in
the field of development administration.
According to Riggs, development can be seen as a process of increasing autonomy (discretion)
of social systems made possible by a rising level of diffraction. This autonomy manifests itself in
the form of increased ability of human societies to shape their physical, human and cultural
environments. He presents an ecological view of development as an increasing ability to make
and carry out collective decisions affecting environment. The essence of development is a
process of improved decision-making rather than the output of those decisions. Riggs has
maintained that development level of a society is reflected in its ability to make decisions in
order to control its environment. This decision-making capability is based on the level of
diffraction in a society. Diffraction, in turn, is a function of differentiation and integration.
Riggs considers differentiation and integration as the two key elements in the process of
development. The levels of differentiation and integration represent diffracted and prismatic
conditions of development. A high level of differentiation coupled with a high level of

14
integration make a society diffracted. A low level of differentiation with a corresponding level of
integration makes a society prismatic. Diffraction leads to development and the higher the level
of differentiation and integration, the greater the level of development, and the lower their level,
lesser the development. Riggs considers the prismatic society as a less developed society because
of maladjustment of differentiation and integration. In such a society, the new structures are half-
born and are trying to adjust with the old ones. The prismatic society is not fully fused nor is it
fully diffracted. According to Riggs, development leads to a key problem of effecting
integration. The necessity of integration arises in development administration because there are a
variety of specialized roles, which may lead to confusion and chaos unless they are carefully
coordinated with each other. Integration of the specialized roles can lead to development.

“Development administration”, says Riggs, “refers to the administration of development

programmes, to the methods used by large-scale organizations, notably governments, to
implement policies and plans designed to meet their developmental objectives” (Riggs, 1970). It
includes organized efforts to carry out developmental programmes. Riggs like Edward Weidner,
views development administration as a goal-oriented administration- an administration that is
engaged in the task of achieving progressive political, economic and social goals. This goal
orientation and change-orientation of an administrative system gives it the characteristics of
development administration. In this context, Riggs presents the concept of ‘the development of
administration’, which involves the strengthening of capabilities of an administrative system to
achieve the prescribed goals. Much of the effectiveness of a development-oriented system
depends upon the capacity of the administrative system itself. This capacity approach is the crux
of the concept of administrative development. It may be noted here that there is a similarity in
Riggs’s stress on administrative development and Taylor’s emphasis on increasing effectiveness
of an administrative system in order to reach its prescribed goals.

From the preceding analysis it is clear that to Riggs development administration refers both to
administrative problems and governmental reforms. The problem relating to governmental tasks
is connected with agricultural, industrial, educational and medical progress, etc. Reforms of
governmental organisations and bureaucratic procedures have necessarily to go with the
administrative process connected with problem solving.
Prismatic-Sala Model
The ecological approach to development administration is the central point of Riggs’s analysis. It
is on account of environmental influences that an administrative system in a prismatic society
develops the characteristics of heterogeneity, formalism and overlapping. These three, according
to Riggs, are the important features of development administration in a developing nation.
Heterogeneity
It is the presence of a mix of traditional and modern forms and institutions in the administrative
system. For example, office attendants coexist with telephones as aids to the administration.
Modern ideas are superimposed upon traditional ones. Behind the façade of new structures
introduced, the old and traditional ways of doing things persist in reality. In brief, in prismatic
society modernity and tradition coexist in an uneasy companionship.
Formalism
The existence of discrepancy between the formally prescribed norms and their practice is known
as formalism. As a result of formalism there is a wide gap between government proposals and
their implementation. Most of the laws are either bypassed or not implemented at all. Although

15
government officials insist on following some of the laws, rules and regulations, yet their official
behaviour does not correspond to the legal status. Very often they work for the realization of
goals other than the achievement of programme objectives. Formalism gives raise to
administrative evils like, red tape, passing the buck, inefficiency and corruption.
Overlapping
It means non-administrative criteria determining what is described as administrative behaviour.
The administrative structures are intermixed with the social, economic, political and cultural
aspects of society. As a result of overlapping, the administrative institutions give the impression
of performing specific administrative functions, but actually they perform a variety of non-
administrative, traditional functions. The social role of the officer often overlaps his/her official
role and causes a lot of confusion and maladjustment.

Evaluation
Riggs’s model has been criticized on certain grounds. Firstly, new words coined and used by him
to explain his concepts may create confusion rather than clarifying them. Secondly, this model
serves no purpose to find out the stages of process of development. This model also is not very
useful when the objective of the development administration is social change, because of its
doubtful utility in analyzing the process of social change in development. Thirdly, he has
emphasized on the influence of social and economic factors on the administrative system but he
has neglected the influence of administration on its environment. The prismatic model of Riggs
has been referred to by some, as inadequate for the study of even the transitional societies. The
developing countries of Asia, Africa and Latin America are not homogenous category. Hence,
one single model as propounded by Riggs, seems to be inadequate for study of even the so called
prismatic society.

Evolution of Indian Administration

Indian 'Administration' traces its earliest known form to the tribal system which later emerges as
a monarchical system. We gain a lot of knowledge about ancient Indian Administration from
ancient religious and political treatises. In the early Vedic period there were many tribes who
elected their own chiefs and he handled all their responsibilities and the administration of the
tribes and the Sabha (Assembly of elders) and Samiti (Assembly of people) were the tribal
assemblies. The chief protected the tribe but had no revenue system or hold over land thus wars
were resorted to and the booty shared among the tribes. The first form of the 'State' in India can
be traced back to the times of Manu (original name Satyavrata) the first King and progenitor of
mankind according to Hinduism. People were fed up with anarchy as there was no neutral
judge/arbitrator in between to solve issues of society, and so they appointed Manu as King and
paid service fees as taxes for looking after them and ensuring mutual benefit and justice to
everyone in society owing to his wisdom and philosophical attitude & the King was divine and
regarded as descended from God. As per the Ramayana and Mahabharata/Later Vedic times it
goes to portray the role of the King as the whole and sole of administration being helped by his
principal officers who were the Purohit and Senani where the Purohit( Priest) wielded much
more authority than the Kshatriya (Warrior clan) kings. Other figures of administration were
Treasurer, Steward, Spies and Messengers, Charioteer, Superintendent of Dices. This is also
mentioned in the Manu Smriti and Sukra Niti. No legal institutions were there and the custom of
the country prevailed as the law and capital punishment was not practiced but trials took place
where justice was delivered by the King in consultancy with the Priest and Elders at times. By

16
the time Kautilya wrote the Artha Shastra the Indian Administrative system was well developed
and the treatise of Kautilya gives a very first detailed account of the same. We will discuss that
below.

KAUTILYA'S ARTHASHASTRA:
The Mauryan period was the era of major development in Indian Administration.
Decentralization was prevalent as the village units played a very important role as the base of
administration since ancient times. Empires were divided into provinces, provinces into districts,
districts into rural and urban centres for efficient administration. Kautilya's ArthaShastra is a
work on Varta (Science of Economics) & Dandaniti (statecraft/Management Of State
Administration) existing in the Mauryan rule. It was written sometime between 321 and 300 BC.
It was retrieved in 1904 AD and published in 1909 AD by R. Shamasastry. It touches upon
topics like functions of the chief executive, hierarchy, bureaucracy, corruption, local
administration, supervisory management, motivation, morale and job description. The most
noticeable aspect of the Arthashastra is its emphasis on Public Welfare even in an autocratic
agrarian State. That is where its timelessness lies. It is composed in the form of brief statements
called Sutras and is compiled in 15 books (Adhikarnas), 150 sections, 180 chapters (prakarnas),
6000 verses (sutras).

The 15 books could be classified under:

i) Concerning the discipline of economics and statecraft.
ii) Duties of government Superintendent.
iii) Concerning the Law
iv) Removal of thorns
v) Conduct of courtiers.
vi) Sources of sovereign State.
vii) End of six fold policy
viii) Concerning vices of the king and calamities that may arise as a consequence
ix) Work of an invader
x) Relating to a war.
xi) Conduct of a corporation
xii) Concerning a powerful enemy.
xiii) Strategic way of capturing a fort
xiv) Secret means like occult practices and remedies to keep of enemies or traitors.
xv) Plan of the treatise and thirty two methods of treating a subject.

Kautilya viewed the State as an institutional necessity for human advancement. According to him
the State comprises of eight elements - King, Minister, Country, fort, treasury, army, friend and
enemy. And State's prime function was to maintain law and order, punishing wrong doers and
protecting subjects. The empire was divided in to a Home Province (capital
territory/administrative unit) under direct control of the central government and four to five
outlying provinces (States), each under a viceroy responsible to the central government. The
provinces possessed a good amount of autonomy in this feudal-federal type of organization.
Provinces were further divided into districts, districts into rural and urban centres with a whole
lot of officials in charge at various levels. Departments to carry out execution of policy were
created in all of these divisions with specialists dominating in the Mauryan era. Elites were

17
preferred in job recruitment and the procedure for appointing is the same as it is practiced today.
A centralised data bank of all government transactions and records were maintained in an
organisation of the centre just like the cabinet secretariat and this performed audit and inspection
functions of the three tiers of govt that is local,state and central. This set up is very much similar
to our present times where Union Territories and National Capital Territory are administrative
units under Central rule where representative of the centre in the form of
administrators/Lieutenant Governor appointed by the President rule the affairs under the direct
supervision of the President & Central government. The states are under a governor (viceroy in
olden times) appointed by and reporting to the President (King in olden times). The President is
advised by his minister(s) and the sovereign power lies in the country's people. Also, the federal
setup of powers given to states under the state list, and the district administration organisation
and hierarchy. Audit mechanisms were in place and civil servants were recruited to perform the
duties of policy implementation.
The King was head and his functions were military, judicial, legislative and executive, similar to
modern state's functions of the President. And he was to be well equipped in all areas of study
especially economics, philosophy, statecraft and the three Vedas. kautilya stated that whatever
pleases the king only is to be avoided and only that which pleases the people is what needs to be
followed.
Kautilya stated that the king was like the Father and all the people/subjects of the country/empire
were his children. That is how he is supposed to take care of them. This is conceptualized as
Welfare State in Modern times. Corruption was not tolerated at all and dealt with severely where
the ill-earned money was confiscated. Kautilya had his own criteria for selection of officers for
the same. Once basic qualifications were met he tested them on their attitude to piety,
lucre/revenue, lust, fear. Those who completed this criteria of piety were appointed as
judges/magistrates, and those who crossed the test of revenue became revenue collectors, and
those pass the test of lust are appointed to the king's harem. The candidates passing the test of
fear are appointed as king's bodyguards and personal staff. And those who pass all the tests are
appointed as councilors.
There were two courts according to the Arthashastra called the Dharmasthya (civil cases court)
where the matters are disposed off on basis of dharma, procedural law, conventions, royal decree
and Kantakashodhana ( criminal cases court) where accused is convicted on basis of testimony
and eye witness of spies, etc. Similar to today's times where there are separate courts having the
subject matter jurisdiction of civil or criminal issues. Agriculture was the mainstay and taxes on
the goods produced as well as its imports and exports were the source of revenue and the
expenditure focused on public administration, national defense, army, salaries of govt. officials.
Agriculture plays an important role even today in our country. Therefore, as one can see
Kautilya's arthashastra deals with a proper strategy and system of centralized autocracy with a
welfare objective in mind before performing any function by the king and his ministers.

LINKS BETWEEN KAUTILYAN ADMINISTRATION AND MODERN PERSONNEL

ADMINISTRATION AND PUBLIC ADMINISTRATION:
1) Personnel Administration: A system of recruitment was there and job description as well.
Salaries were clearly spelled out of ministers and government officials. It also stated a view of
job permanency and increment in salary/position (promotion) if the official concerned provided
extraordinary service. Personnel were to be transferred from time to time as per Kautilya because
it would avoid corruption and misappropriation of government funds. Removal and tenure of

18
officials and ministers were at the pleasure of the King just like the Governor and Attorney
General, etc. hold office at a term that specifies 'pleasure of the President'.
2) Public Administration: The King is the sole source of authority and appoints and dismisses
personnel and divides the work of govt. into different ministries under several ministers and
officials. Kautilya stresses on the need for specialist and generalist personnel at different levels
of administration with full accountability to the King, thus talks about division of labour and
coordination between them for recruitment, pay, and terms and conditions of service very much
resembling the modern State. Modern state is more concerned about development whereas the
Kautilyan model talks about collecting revenue and employing activities to help in expediting
and ensuring revenue, so it talks mainly of control instead of development. It talks about local
self-government that very much resembles a precursor to the Modern State local self-government
model. Kautilya's Arthashastra is more about political science that is how to conduct State affairs
rather than focusing on the philosophy that underlies it. He is very practical in his approach with
a strict focus on amorality (no moral principles or religious diktat) so that the King's rule &
administration are neutral without offending anyone, and also on rationality and an organized as
well as efficient way of running a system with a great deal of focus on accountability and
honesty and vigilance.

MUGHAL ADMINISTRATION:
The Mughal administration was the most organized and long lasting and has even carried on to to
the modern times. The reason for this stability was the long lasting more than 3 centuries rule of
the Mughal sultanate. Akbar was the architect of this system since his grandfather and father
Babur and Humayun respectively had their hands full with battles and socio-economic
uncertainties leaving little time for administrative activities.
A very detailed, reliable and brilliant account of Akbar's empire, society and administration is
given in the famous detailed document/text by Abul Fazl titled Aini-Akbari (Constitution of
Akbar). The Mughal administration did carry forward a lot of the earlier traditions in political
and administrative matters already existing in India as mentioned above but they upheld greater
centralization and a rigid structure without paying much interest to social services of health and
welfare as also morals as compared to the Mauryan rulers. Their's was an islamic state and right
from the principles of government, church policy, taxation rules, departmental arrangements to
the titles of officials all was imported wholesale from the Perso-Arab crescent of Khalifs of Iran
and Egypt. However, even though the recruitment was mainly based on caste and kin they also
did recognize merit and talent and did open up the civil services for Hindu people. It's source of
revenue was taxation on land and agriculture and was highly urbanized. In the lower levels like
of politics, village and lower levels of officials the Indian usage and customary practices were
allowed whereas at the court/darbar and in higher official circles the foreign imported model of
policy prevailed.
The sovereign was the king who was paternalistic and he had supreme authority over everything.
He did have a number of ministers to help, advise and assist him in the discharge of his
functions, out of which the more important were four - the Diwan who was in charge of revenue
and finance, the Mir Bakshi at the head of the military department, the Mir Saman in charge of
factories and stores, and the Sadr-us-Sudur who was the head of the ecclesiastical and judicial
department. Administration was based on coercion in the name of the King by the officials. The
main functions of the officials were to maintain law and order, safeguard the King's interests

19
from internal uprising and revolts, defend and extend boundaries of the empire and collect
revenue and taxes.
Every officer of State held a mansab (official appointment of rank and profit and expected to
supply certain number of troops for State military service), thus the bureaucracy was essentially
monetary in character. The officials ranged from Commanders of 10 to 10000 and were
classified into 33 grades. Each grade carried a certain rate of pay, from which its holder was to
provide a quota of horses, elephants, etc and the State service was neither hereditary nor was it
specialized. Grading system is practiced even today in recruitment matters. The pay was received
in form of either cash or jagir for a temporary period from which he could collect revenue
equivalent to his salary. Thus, the jagirs though having no hold over the land extracted revenue at
their whims and fancies from the land.
The Army of the Mughal Empire must be understood in terms of the Mansabdari system. And
apart from that there were the knights who were called the gentleman troopers and owed
exclusive allegiance to the King. The cavalry was the most important unit, the infantry was made
up of townsmen and peasants and the artillery with guns and the Navy. The corruption within the
army where the soldiers payed more allegiance to the immediate boss rather than the king proved
to be its undoing and thus could be easily overpowered by the Marathas during the time of
Jahangir.
The Policing system of the Mughals was entrusted to village headman's and subordinates in
villages and to Kotwals in cities and towns. And at the district level the faujdars took over. It was
a precursor to modern policing system of India. The administration at the Centre was personal
and paternal and operated with a fair degree of efficiency as long as the King kept an eye and
controlled effectively. The two highest officials were the Vakil and the Wazir of which the
former was higher in position and functioned as the regent of the State and maintained over all
charge of the same.
The Wazir was the head of the revenue department and was known as Wazir when he acted as a
Prime Minister. Chief Diwan supervised revenue collection and expenditure and was the head of
the Government's administrative wing supervising work of all high officials. All provincial
diwans and their subordinates reported to him and he signed and authorized all government
transactions. A Musatufi audited the income and expenditure of the government and the Waqia
Navis kept a record of all important farmers.
The Khan-i-Saman was the high steward of the royal expenditure and the Mir-i- Bakshi who was
the paymaster General of the empire. The Provincial or State Administration was also known as
Subahs (for states/provinces) and was headed by the Subedar or the Governor. He was appointed
by the King and was given a office insignia and instrument of instructions which defined the
powers, functions and responsibilities. As executive head he was in charge of provincial
administrative staff and ensured law and order there. He also handled local civil intelligence
agencies and controlled the local zamindars and contained their political influence.
Provincial Diwan was appointed by the central diwan and was next in the line of importance
after the Provincial governor. He appointed kiroris and tehsildars to extract revenue from the
riots in time. He also exercised audit functions and had full control over public expenditure. He
was assisted in office by the Office Superintendent, head accountant, treasurer and clerk.
The provincial Bakshi performed the same function as the central bakshi. The Sadr and Qazi
were two officers at provincial level who were sometimes united in the same person but the Sadr
was basically a civil judge but did not handle all civil cases and the Qazi was concerned with
civil suits in general and also with criminal cases.

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DISTRICT AND LOCAL ADMINISTRATION UNDER MUGHAL RULE:
The Subah/Province was further divided into Sarkars which were of two types. One was ruled by
officers appointed by the emperor and those under the tributary rajas. Each Sarkar was headed by
Faujdar,he was the executive head who had policing and military functions and could surpass the
provincial rulers to speak directly to the imperial government. The Amalguzar was in charge of
the revenue and the other head of the Sarkar. The Kotwal did the policing. The qazi performed
the judicial duties. The Sarkars were further divided into parganas and the parganas further
divided into Chaklas headed by officials called Chakladars. Qanungos kept the revenue records
and the Bitikchi was the accountant and Potdar was the title of the treasurer. This was the
hierarchy for a sound and efficient administration Akbar kept the land revenue at 1/3 and Todar
Mal brought in reforms as in a standard system of land revenue collection that included survey
and measurement of land, classification of land based on its fertility and fixing the rates. Justice
was administered based on the Quranic Law as the Mughal state was a Muslim State. Fatwas
were issued when required and ordinances by the emperor. The principles of equity were
followed and the Emperor's interpretations only was allowed till the point it did not run contrary
to the sacred laws.

LEGACY OF BRITISH RULE IN POLITICS AND ADMINISTRATION -

INDIANIZATION OF PUBLIC SERVICES:
Though many of Indian administrative and political features evolved post 1947 but there still are
certain features that we can see as a legacy of the British times continuing for the sake of its
efficient practices and no other better alternative to the same till now. Under the charter (official
paper) of the British crown the East India Company came to India with the sole objective of
making profit through commercial exchanges. The established factories here and for their
protection set up a small base of soldiers. They started looking for monopolizing their profits in
India as her market and resources were unmatched. This led to the initial tussle with Bengal
Nawab and the event of Battle of Plassey paved the way for the same. The company officials
convinced the company directors that if they interfered and got a say in local policy making in
India then it would lead to a lot of profit and surplus. Lord Cornwallis developed the Civil
Services Code and so he is aptly known as the Father of Modern Civil Services. He regularized
and specified the office of the District Collector and established the office of the District judge.
This helped the company achieve a well-organized personnel administration through which
control over territories/provinces in India could become more comprehensive.
Lord Wellesley's rule period saw the emergence of the office of the Chief Secretary (1799). The
doctrine of Subsidiary Alliance was an aggressive policy that resulted in the active interest of
company officials in political and administrative affairs of local kingdoms governed by local
Rajas. The early 1800s could be seen as an era where company officials focused all their
strategies in gaining interference rights in political, commercial and military policies of local
kingdoms for their profit.
The office of the Commissioner and sectional arrangement in the Secretariat saw the light of the
day under Lord Bentick's rule. Under the Charter Act of 1833, the Governor General of Bengal
was appointed as the Governor General of India and policy formulation was centralized for all
territories under the company at the council of the Governor General of India (Head of the
British Administration In India). Also there was an establishment of communication between the
Governor general's office which was the headquarter and its various field units and formal units
of organization. 1844 established 4 departments of Finance, Home, Foreign and Military as well

21
as a little later on under Lord Dalhousie the setting up pf Post and Telegraph Services, Railways
and Public Work Departments. The Doctrine Of lapse theory of Dalhousie very blatantly spelled
out the objective of the company in India as to have absolute control over the policy process in
Indian States. Thus all these establishments and policies helped the English to set up a strong
base in India along with rights of revenue by means of strong organizational infrastructures and
institutions, and interference in legislation and policy making even in the remotest of areas. The
Revolt of 1857 then shook up this system and that led to the end of the British East India
Company's rule in India. The govt of India Act 1858 passed in the British parliament led to the
company's dissolution and all powers transferred to the British Crown which then created an
India Office in India and a Secretary Of State post was established with Indian governance and
policy formulation matters. The Governor General was converted to Viceroy General of India
(chief administrator of the British Crown in India) who implemented the policies devised by the
India office which actually only had the role of passing on orders of the British
Parliament. Military was reorganized and more higher caste officials were appointed at the
higher levels and lower level occupied by lower caste as well as Europeans held the titular
positions in the army. All this was done to avoid another mutiny so that communication is
minimum considering the caste biasedness prevalent in India. So, in short the British East India
Company paved the way for the British government to enter. As soon as the Company outlived
its utility, it was removed and the British govt. directly entered the Indian domain. Impey devised
a civil procedure code and Macaulay devised the Indian Penal Code, Contract Act and Indian
Council Act. The enactment of the Criminal procedure Code by the British Parliament in the
1860's brought immense joy to the local rajas and people as they thought that now all the English
officers would function under a code of conduct and there will be uniformity in treatment. There
was also formulation of Arms act, Vernacular press act, Relationship codes, Transfer rights, etc.
Thus, this era of late 1800's could be seen as one that was dedicated to establishing a legal
environment for the smooth functioning of the British officials as they felt that no rules and
regulations earlier led to the situation of disarray and sepoy mutiny/revolt. There was also the
demand of indianisation of the Civil services that was first totally occupied by Europeans and
was causing a lot of discontent among Indians and Indian associations. Thus, for this purpose the
Aitchison Commission recommended the induction of 25% Indians into the ICS, but this only
remained on paper. The Islington Commission was appointed in 1912 and its repirt, submitted in
1915 recommended a scheme of 2 entry paths to the civil services. One was for insuring
induction of natives of India through competitive exams and the other exam for superior ICS and
Home services preliminary exam to be conducted in England was open to all. The Civil services
was under the control of the Secretary Of State. The Govt. Of India Act in 1919, created the All
India Services replacing the imperial civil services format. This act also advocated the setting up
of Public Service Commissions in India. The provincial civil services were under the control of
the provincial governments.
Lee Commission and the Royal Commission on superior civil services specially recommended
for the establishment of central services. Subordinate services were advocated for removal from
the classification of civil services and transferred to the regional levels for conducting exams and
filling up of positions only by Indians. So, basically it was a system to prevent Indians from
entering the higher civil services as everybody could not afford to go to England for training and
exam purpose and the lower levels were more approachable and attainable by the Indians. Also
English as a compulsory language offered little scope of success for non-westernized Indians. On
the recommendation of the Lee Commission, the first

22
Public Service Commission was setup at Allahabad in 1925. The Lee Commission recommended
a 40-40 percent of Europeans and Indians to fill up the superior ICS and the rest 20% to be filled
up with promotions from the provincial Indian sub ordinate services. Thus he advocated 60%
Indians. This led to the Britishers losing interest in joining the services as they feared a
monopoly of Indians and so the number of Indians in the services increased gradually. The Govt.
Of India Act 1935 provided for the setting up of federal Public service commissions and also
recommended for similar institutions at the state levels. This was the realization of giving the All
India Service an Indian flavour and towards the Indianisation of Civil Services. Portfolio system
was introduced in the Central Secretariat under Lord canning and arrangement of departments
under Lord Mayo, Lord Lytton and Lord Ripon. Tenure arrangement was introduced under the
Secretariat staffing scheme of Lord Curzon in 1905. A special mention needs to be made here of
the administrative systems/features passed on: Judicial administration system of the Mughal
period still exists in Indian administration.

23
 Unit 2

Administrative Law
Administrative Law is, in fact, the body of those which rules regulate and control the
administration. Administrative Law is that branch of law that is concerned with the composition
of power, duties, rights and liabilities of the various organs of the Government that are engaged in
public administration. Under it, we study all those rules laws and procedures that are helpful in
properly regulating and controlling the administrative machinery.
There is a great divergence of opinion regarding the definition/conception of administrative law.
The reason being that there has been tremendous increase in administrative process and it is
impossible to attempt any precise definition of administrative law, which can cover the entire range
of administrative process. Let us consider some of the definitions as given by the learned jurists.
Austin has defined administrative Law. As the law, which determines the ends and modes to which
the sovereign power shall be exercised. In his view, the sovereign power shall be exercised either
directly by the monarch or directly by the subordinate political superiors to whom portions of those
are delegated or committed in trust.
Holland regards Administrative Law “one of six” divisions of public law. In his famous book
“Introduction to American Administrative Law 1958”,
Bernard Schawartz has defined Administrative Law as “the law applicable to those
administrative agencies which possess of delegated legislation and ad judicatory authority.”
Jennings has defined Administrative Law as “the law relating to the administration. It determines
the organization, powers and duties of administrative authorities.”
In the view of Friedman, Administrative Law includes the following.
• The legislative powers of the administration both at common law and under a vast mass
of statutes.
• The administrative powers of the administration.
• Judicial and quasi-judicial powers of the administration, all of them statutory.
• The legal liability of public authorities.
• The powers of the ordinary courts to supervise the administrative authorities.
The Indian Institution of Law has defined Administrative Law in the following words;
“Administrative Law deals with the structure, powers and functions of organs of administration,
the method and procedures followed by them in exercising their powers and functions, the method
by which they are controlled and the remedies which are available to a person against them when
his rights are infringed by their operation.”

Sources of Administrative Law

There are four principal sources of administrative law in India:-
• Constitution of India
• Acts and Statutes
• Ordinances, Administrative directions, notifications and Circulars
• Judicial decisions
Role of Administrative Law
The administrative law has come to stay because it provides an instrument of control of the exercise
of administrative powers. The administrative law has to seek balance between the individual right
and public needs. As we know in the society there exists conflict between power and justice
wherever there is power, there exist probabilities of excesses in exercise of the power. One way is

24
to do nothing about this and let the celebrated Kautilyan Matsanayaya (big fish eating little fish)
prevail. The other way is to try and combat this. Administrative law identifies the excesses of
power and endeavors to combat there. The learned Author, Upender Baxi, while commenting on
the administrative law has rightly observed in. (The Myth and reality of the Indian administrative
law, Introduction by Upendra Baxi in administrative law ed. by I.P. Massey 2001 at XVIII) “to
understand the stuff of which administrative law is made one has to understand relevant domains
of substantive law to which courts apply the more general principles of legality and fairness. In
this way a thorough study of administrative law is in effect, a study of the Indian legal system a
whole. More importantly, it is study of the pathology of power in a developing society.”
Growth in science and technology and modernization has resulted in great structural changes
accompanied with increase in the aspirations of people as to quality of life. We know socio-eco-
politico and multi-dimensional problems which people face due to technological development
cannot solved except by the growth of administration and the law regulating administration. No
doubt the principles evolved by the court for the purpose of controlling the misuse of governmental
of power is satisfactory. Yet it is said that the administrative law in India is an instrument in the
hands of middle class Indians to combat administrative authoritarianism through the
instrumentality of the court and there is need to make administrative law a shield for the majority
of Indians living in rural area and people under poverty line. Therefore easy access to justice is
considered important form of accountability this may include
 informal procedure,
 speedy and less expensive trial,
 legal aid,
 public interest litigation,
 easy bail etc.
Further, the multifarious activities of the state extended to every social problems of man such as
health education employment, old age pension production, control and distribution of commodities
and other operations public utilities. This enjoins a new role for administration and also for the
development of administrative law.

Delegated Legislation
One of the most significant developments of the present century is the growth in the legislative
powers of the executives. The development of the legislative powers of the administrative
authorities in the form of the delegated legislation occupies very important place in the study of
the administrative law. We know that there is no such general power granted to the executive to
make law it only supplements the law under the authority of legislature. This type of activity
namely, the power to supplement legislation been described as delegated legislation or subordinate
legislation.
Why delegated legislation becomes inevitable
The reasons as to why the Parliament alone cannot perform the jobs of legislation in this changed
context are not far to seek. Apart from other considerations the inability of the Parliament to supply
the necessary quantity and quality legislation to the society may be attributed to the following
reasons:
i) Certain emergency situations may arise which necessitate special measures. In such cases speedy
and appropriate action is required. The Parliament cannot act quickly because of its political nature
and because of the time required by the Parliament to enact the law.

25
ii) The bulk of the business of the Parliament has increased and it has no time for the consideration
of complicated and technical matters. The Parliament cannot provide the society with the requisite
quality and quantity of legislation because of lack of time. Most of the time of the Parliament is
devoted to political matters, matters of policy and particularly foreign affairs.
iii) Certain matters covered by delegated legislation are of a technical nature which require
handling by experts. In such cases it is inevitable that powers to deal with such matters is given to
the appropriate administrative agencies to be exercised according to the requirements of the subject
matter. "Parliaments" cannot obviously provide for such matters as the members are at best
politicians and not experts in various spheres of life.
iv) Parliament while deciding upon a certain course of action cannot foresee the difficulties, which
may be encountered in its execution. Accordingly various statutes contain a 'removal of difficulty
clause' empowering the administration to remove such difficulties by exercising the powers of
making rules and regulations. These clauses are always so worded that very wide powers are given
to the administration.
v) The practice of delegated legislation introduces flexibility in the law. The rules and regulations,
if found to be defective, can be modified quickly. Experiments can be made and experience can
be profitability utilized.

However the attitude of the jurists towards delegated legislation has not been unanimous. The
practice of delegated legislation was considered a factor, which promoted centralization. Delegated
Legislation was considered a danger to the liberties of the people and a devise to place despotic
powers in few hands. It was said that delegated legislation preserved the outward show of
representative institutions while placing arbitrary and irresponsible power in new hands. But the
tide of delegated legislation was high and these protests remained futile.
A very strong case was made out against the practice of Delegated Legislation by Lord Hewart
who considered increased governmental interference in individual activity and considered this
practice as usurpation of legislative power of the executive. He showed the dangers inherent in the
practice and argued that wide powers of legislation entrusted to the executive lead to tyranny and
absolute despotism. The criticism was so strong and the picture painted was so shocking that a
high power committee to inquire into matter was appointed by the Lord Chancellor. This
committee thoroughly inquired into the problem and to the conclusion that delegated legislation
was valuable and indeed inevitable. The committee observed that with reasonable vigilance and
proper precautions there was nothing to be feared from this practice.

Nature and Scope of delegated legislation Delegated legislation means legislation by authorities
other than the Legislature, the former acting on express delegated authority and power from the
later.
Delegation is considered to be a sound basis for administrative efficiency and it does not by itself
amount to abdication of power if restored to within proper limits. The delegation should not, in
any case, be unguided and uncontrolled. Parliament and State Legislatures cannot abdicate the
legislative power in its essential aspects which is to be exercised by them. It is only a nonessential
legislative function that can be delegated and the moot point always lies in the line of demarcation
between the essential and nonessential legislative functions. The essential legislative functions
consist in making a law. It is to the legislature to formulate the legislative policy and delegate the
formulation of details in implementing that policy. Discretion as to the formulation of the
legislative policy is prerogative and function the legislature and it cannot be delegated to the

26
executive. Discretion to make notifications and alterations in an Act while extending it and to
effect amendments or repeals in the existing laws is subject to the condition precedent that essential
legislative functions cannot be delegated authority cannot be precisely defined and each case has
to be considered in its setting.
The power delegated to the Executive to modify any provisions of an Act by an order must be
within the framework of the Act giving such power. The power to make such a modification no
doubt, implies certain amount of discretion but it is a power to be exercised in aid of the legislative
policy of the Act and cannot
i) travel beyond it, or
ii) run counter to it, or
iii) certainly change the essential features, the identity, structure or the policy of the Act.
Under the constitution of India, articles 245 and 246 provide that the legislative powers shall be
discharged by the Parliament and State legislature. The delegation of legislative power was
conceived to be inevitable and therefore it was not prohibited in the constitution. Further, Articles
13(3)(a) of the Constitution of India lays down that law includes any ordinances, order bylaw, rule
regulation, notification, etc. Which if found inviolation of fundamental rights would be void.
Besides, there are number of judicial pronouncements by the courts where they have justified
delegated legislation.

Types of delegation of legislative power in India There are various types of delegation of
legislative power.
1. Skeleton delegation- In this type of delegation of legislative power, the enabling statutes set
out broad principles and empowers the executive authority to make rules for carrying out the
purposes of the Act. A typical example of this kind is the Mines and Minerals (Regulation and
Development) Act, 1948.
2. Machinery type- This is the most common type of delegation of legislative power, in which
the Act is supplemented by machinery provisions, that is, the power is conferred on the
concerned department of the Government to prescribe –
i) The kind of forms
ii) The method of publication
iii) The manner of making returns, and
v) Such other administrative details
In the case of this normal type of delegated legislation, the limits of the delegated power are
clearly defined in the enabling statute and they do not include such exceptional powers as the
power to legislate on matters of principle or to impose taxation or to amend an act of legislature.
The exceptional type covers cases where –
i) the powers mentioned above are given , or
ii) the power given is so vast that its limits are almost impossible of definition, or
iii) while limits are imposed, the control of the courts is ousted.
Such type of delegation is commonly known as the Henry VIII Clause. An outstanding example
of this kind is Section 7 of the Delhi Laws Act of 1912 by which the Provincial Government was
authorized to extend, with restrictions and modifications as it thought fit any enactment in force
in any part of India to the Province of Delhi. This is the most extreme type of delegation, which
was impugned in the Supreme Court in the Delhi Laws Act case. A.I.R. 1951 S.C.332. It was
held that the delegation of this type was invalid if the administrative authorities materially

27
interfered with the policy of the Act, by the powers of amendment or restriction but the
delegation was valid if it did not effect any essential change in the body or the policy of the Act.
That takes us to a term "bye-law" whether it can be declared ultra vires. If so when? Generally
under local laws and regulations the term bye-law is used such as
i) public bodies of municipal kind
ii) public bodies concerned with government, or
iii) corporations, or
iv) societies formed for commercial or other purposes.
The bodies are empowered under the Act to frame bye-laws and regulations for carrying on their
administration. There are five main grounds on which any bye-law may be struck down as ultra
vires. They are:
a) That is not made and published in the manner specified by the Act, which authorises the
making thereof;
b) That is repugnant of the laws of the land;
c) That is repugnant to the Act under which it is framed;
d) That it is uncertain ; and
e) That it is unreasonable.

Modes of control over delegated legislation

The practice of conferring legislative powers upon administrative authorities though beneficial
and necessary is also dangerous because of the possibility of abuse of powers and other attendant
evils. There is consensus of opinion that proper precautions must be taken for ensuring proper
exercise of such powers. Wider discretion is most likely to result in arbitrariness. The exercise of
delegated legislative powers must be properly circumscribed and vigilantly scrutinized by the
Court and Legislature is not by itself enough to ensure the advantage of the practice or to avoid
the danger of its misuse. For the reason, there are certain other methods of control emerging in
this field.
The control of delegated legislation may be one or more of the following types: -
1) Procedural;
2) Parliamentary; and
3) Judicial
Judicial control can be divided into the following two classes: -
i) Doctrine of ultra vires and
ii) Use of prerogative writs.
Procedural Control over Delegated Legislation
(A) Prior consultation of interests likely to be affected by proposed delegated Legislation
From the citizen's post of view the most beneficial safeguard against the dangers of the misuse of
delegated Legislation is the development of a procedure to be followed by the delegates while
formulating rules and regulations. In England as in America the Legislature while delegating
powers abstains from laying down elaborate procedure to be followed by the delegates. But
certain acts do however provide for the consultation of interested bodies and sometimes of
certain Advisory Committees which must be consulted before the formulation and application of
rules and regulations.
This method has largely been developed by the administration independent of statute or
requirements. The object is to ensure the participation of affected interests so as to avoid various
possible hardships. The method of consultation has the dual merits of providing as opportunity to

28
the affected interests to present their own case and to enable the administration to have a first-
hand idea of the problems and conditions of the field in which delegated legislation is being
contemplated.
(B) Prior publicity of proposed rules and regulations Another method is antecedent publicity
of statutory rules to inform those likely to be affected by the proposed rules and regulations so as
to enable them to make representation for consideration of the rule-making authority. The rules
of Publication Act, 1893, S.I. provided for the use of this method. The Act provided that notice
of proposed 'statutory rules' is given and the representations of suggestions by interested bodies
be considered and acted upon if proper. But the Statutory Instruments Act, 1946 omitted this
practice in spite of the omission, the Committee on Ministers Powers 1932, emphasized the
advantages of such a practice.
(c) Publication of Delegated Legislation - Adequate publicity of delegated legislation is
absolutely necessary to ensure that law may be ascertained with reasonable certainty by the
affected persons. Further the rules and regulations should not come as a surprise and should not
consequently bring hardships which would naturally result from such practice. If the law is not
known a person cannot regulate his affairs to avoid a conflict with them and to avoid losses. The
importance of these laws is realized in all countries and legislative enactments provide for
adequate publicity. Control on rule-making power engaged the attention of the Parliament. Under
the Rule of Procedure and Conduct of Business of the House of the People provision has been
made for a Committee which is called 'Committee on
Subordinate Legislation'.
The First Committee was constituted on Ist December, 1953 for
i) Examining the delegated legislation, and
ii) Pointing out whether it has
a) Exceeded or departed from the original intentions of the
Parliament, or
b) Effected any basic changes.
Originally, the committee consisted to 10 members of the House and its strength was later raise
to 13 members. It is usually presided over by a member of the Opposition. The Committee
i) scrutinizes the statutory rules, orders. Bye-laws, etc. made by any-making authority, and
ii) report to the House whether the delegated power is being properly exercised within the limits
of the delegated authority, whether under the Constitution or an Act of Parliament.
It further examines whether
i) The Subordinate legislation is in accord with the general objects of the Constitution or the Act
pursuant to which it is made;
ii) it contains matter which should more properly be dealt within an Act of Parliament;
iii) it contains imposition of any tax;
iv) it, directly or indirectly, ousts the jurisdiction of the courts of law;
v) it gives retrospective effect to any of the provisions in respect of which the Constitution or the
Act does not expressly confer any such power;
vi) It is constitutional and valid;
vii) it involves expenditure from the Consolidated Fund of India or the Public Revenues;
viii) its form or purpose requires any elucidation for nay reason;
ix) it appears to make some unusual or unexpected use of the powers conferred by the
Constitution or the Act pursuant to which it is made; and

29
x) there appears to have been unjustifiable delay in its publication on its laying before the
Parliament.

Administrative Tribunal
Administrative law covers the entire gamut of public administration and includes the statutes,
charters, rules, regulations, procedures, decisions etc. required for smooth running of
administration. According to Jennings, administrative law is the law relating to the
administration. It determines the organization, powers and duties of administrative authorities.
Administrative law has the following characteristics:
1) It subordinates the common law, rights of personal freedom, and private property to the
common good. The stress is on public interest than on individual interest.
2) It entails the application of flexible standards for implementation of law.
3) The interpretation of these standards lies with the administrative tribunals.
4) It puts the public officials in a better position over the people.
5) It is not codified and is in an experimental and dynamic condition.
According to Servai, 'the development of administrative law in a welfare state has made
administrative tribunals a necessity'. In India, and in many other countries, there has been a
steady proliferation of administrative tribunals of various kinds. They have, indeed, become a
permanent part of the law adjudication machinery of the country. As a system of adjudication
they have come to stay, and their number is constantly on the increase. Administrative tribunals
are authorities outside the ordinary court system, which interpret and apply the laws when acts of
public administration are questioned in formal suits by the courts or by other established
methods. In other words, they are agencies created by specific enactments' for adjudicate upon
disputes that may arise in the course of implementation of the provisions for relevant enactments.
They are not a court nor are they an executive body. Rather they are a mixture of both. They are
judicial in the sense that the tribunals have to decide facts and apply them impartially, without
considering executive policy. They are administrative because the reasons for preferring them to
the ordinary courts of law are administrative reasons. They are established by the executive in
accordance with statutory provisions. They are required to act judicially and perform quasi-
judicial functions. The proceedings are deemed to be judicial proceedings and in certain
procedural matters they have powers of a civil court.

REASONS FOR THE GROWTH OF ADMINISTRATIVE TRIBUNALS

There are many reasons for the growth of administrative tribunals. Some of these are:
Firstly, the administrative tribunals, rendering administrative justice, is a by-product of the
Welfare State. In the lath and 191h centuries when 'laissez faire' theory held sway, the law courts
emerged as the custodians of the rights and liberties of the individual citizens. Sometimes they
protected the rights of all citizens at the cost of state authority. With the emergence of Welfare
State, social interest began to be given precedence over the individual rights. With the
development of collective control over the conditions of employment, manner of living and the
elementary necessities of the people, there has arisen the need for a technique of adjudication
better fitted to respond to the social requirements of the time than the elaborate and costly system
of decision making provided by the courts of law. In brief, 'judicialisation of administration'
proved a potential instrument for enforcing social policy and legislation.
Secondly, in view of the rapid growth and expansion of industry, trade and commerce, ordinary
law courts are not in a position to cope up with the work-load. With the result, enormous delay in

30
deciding cases either way, takes place. Therefore, a number of administrative tribunals have been
established in the country, which can do the work more rapidly, more cheaply and more
efficiently than the ordinary courts.
Thirdly, law courts, on account of their elaborate procedures, legalistic fronts and attitudes can
hardly render justice to the parties concerned, in technical cases. Ordinary judges, brought up in
the traditions of law and jurisprudence, are not capable enough to understand technical problems,
which crop up in the wake of modem complex economic and social processes. Only
administrators having expert knowledge can tackle such problems judiciously. To meet this
requirement, a number of administrative tribunals have come into existence.
Fourthly, a good number of situations are such that they require quick and firm action. Otherwise
the interests of-the people may be jeopardized. For instance, ensuring of safety measures in local
mines, prevention of illegal transactions in foreign exchange and unfair business practices
necessitate prompt action. Such cases, if are to be dealt with in the ordinary courts of law, would
cause immense loss to the state exchequer and undermine national interest. However, the
administrative courts presided over by the experts would ensure prompt and fair action.

TYPES OF ADMINISTRATIVE TRIBUNALS

There are different types of administrative tribunals, which are governed by the statues, rules,
and regulations of the Central Government as well as State Governments. We will discuss the
various types of administrative tribunals now.
Central Administrative Tribunal (CAT)
The enactment of Administrative Tribunals Act in '1985 opened a new chapter in administering
justice to the aggrieved government servants. It owes its origin to Article 323 A of the
Constitution which empowers the Central Government to set up by an Act of Parliament, the
Administrative Tribunals for adjudication of disputes and complains with respective recruitment
and conditions of service of persons appointed to the public services and posts in connection
with the Union and the States.
The Tribunals enjoy the powers of the High Court in respect of service matters of the employees
covered by the Act. They are not bound by the technicalities of the Code of Civil Procedure, but
have to abide by the Principles of Natural Justice. They are distinguished from the ordinary
courts with regard to their jurisdiction and procedures. This makes them free from the shackles
of the ordinary courts and enables them to provide speedy and inexpensive justice.
The Act provides for the establishment of Central Administrative Tribunal and State
Administrative Tribunals. The CAT was established in 1985. The Tribunal consists of a
Chairman, Vice-Chairman and Members. These Members are drawn from the judicial as well as
the administrative streams. The appeal against the decisions of the CAT lies with the Supreme
Court of India.
Customs and Excise Revenue Appellate Tribunal (CERAT).
The Parliament passed the CERAT Act in 196 The Tribunal adjudicate disputes, complaints or
offences with regard to customs and excise revenue. Appeals from the, orders of the CERAT lies
with the Supreme Court.
Monopolies and Restrictive Trade Practices Commission (MRTPC).
In 1969, the Parliament enacted the MRTP Act by which the Monopolies Commission was set up
and given powers to entertain complaints regarding monopolistic and restrictive trade practices
and later unfair trade practices by the Amendment Act in 1984. With the introduction of new
Industrial Policy (1991), a substantial programme of deregulation has been launched. Industrial

31
licensing has been abolished for all items except for a short list of six industries related to
security, strategic or environmental concerns. The MRTP Act has since been amended in order to
eliminate the need to seek prior approval of government for expansion of the present industrial
units and establishment of new industries by large companies. A significant number of industries
had earlier been reserved for the public sector. (d) Railway Transport. Private sector participation
can be invited on discriminatory basis even in some of these areas. Under the amended MRTP
Act, a three-tier system for settling consumer complaints has been provided. This operates as
District Level Forum at the district level, State Commissions at the state levels and National
Consumers Disputes Redressal Commission at the national level. The National Commission has
power to hear the appeals against State Commissions and also has provisional powers. Appeal
from the National Commission lies to the Supreme Court.
Election Commission (EC)
The Election Commission is a tribunal for adjudication of matters pertaining to the allotment of
election symbols to parties and similar other problems. The decision of the commission can be
challenged in the Supreme Court.
Foreign Exchange Regulation Appellate Board (FERAB)
The Board has been set up under the Foreign Exchange Regulation Act, 1973. A person who is
aggrieved by an order of adjudication for causing breach or committing offences under the Act
can file an appeal before the FERAB.
Income Tax Appellate Tribunal
This tribunal has been constituted under the Income Tax Act, 196 1. The Tribunal has its benches
in various cities and appeals can be filed before it by an aggrieved persons against the order
passed by the Deputy Commissioner or Commissioner or Chief Commissioner or Director of
1ncome tax. An appeal against the order of the Tribunal lies to the High Court. An appeal also
lies to the Supreme Court if the High Court deems fit.
Railway Rates Tribunal
This-Tribunal was set up under the Indian Railways Act, 1989. It adjudicates matters pertaining
to the complaints against the railway administration. These may be related to the discriminatory
or unreasonable rates, unfair charges or preferential treatment meted out by the railway
administration. The appeal against the order of the Tribunal lies with the Supreme Court.
Industrial Tribunal
This Tribunal has been set up under the Industrial Disputes Act, 1947. It can be constituted by'
both the Central as well as State governments. The Tribunal looks into the dispute between the
employers and the workers in matters relating to wages, the period and mode of payment,
compensation and other allowances, hours of work, gratuity, retrenchment and closure of the
establishment. The appeals against the decision of the Tribunal lie with the Supreme Court.

ADVANTAGES OF ADMINISTRATIVE TRIBUNALS

Administrative adjudication is a dynamic system of administration, which serves, more
adequately than any other method, the varied and complex needs of the modem society. The
main advantages of the administrative tribunals are:
1) Flexibility
Administrative adjudication has brought about flexibility and adaptability in the judicial as well
as administrative tribunals. For instance, the courts of law exhibit a good deal of conservatism
and inelasticity of outlook and approach. The justice they administer may become out of
harmony with the rapidly changing social conditions. Administrative adjudication, not restrained

32
by rigid rules of procedure and canons of evidence, can remain in tune with the varying phases of
social and economic life.
2) Adequate Justice
In the fast changing world of today, administrative tribunals are not only the most appropriate
means of administrative action, but also the most effective means of giving fair justice to the
individuals. Lawyers, who are more concerned about aspects of law, find it difficult to
adequately assess the needs of the modem welfare society and to locate the individuals place in
it.
3) Less Expensive
Administrative justice ensures cheap and quick justice. As against this, procedure in the law
courts is long and cumbersome and litigation is costly. It involves payment of huge court fees,
engagement of lawyers and meeting of other incidental charges. Administrative adjudication, in
most cases, requires no stamp fees. Its procedures are simple and can be easily understood by a
layman.
4) Relief to Courts
The system also gives the much-needed relief to ordinary courts of law, which are already
overburdened with ordinary suits.
5) Experimentation
Experimentation is possible in this field and not in the realm of judicial trials. The practical
experience gained in the working of any particular authority can be more easily utilized by
amendments of laws, rules and regulations. Amendment of law relating to courts is quite
arduous.

RIGHT TO INFORMATION ACT- 2005

Section-1(2): It extends to the whole of India except the State of Jammu and Kashmir.
Definition
Section- 2 (a): "Appropriate Government" means in relation to a public authority which is
established, constituted, owned, controlled or substantially financed by funds provided directly
or indirectly:
(i) By the Central Government or the Union territory administration, the Central
Government;
(ii) By the State Government, the State Government.
Section- 2 (c): "Central Public Information Officer" means the Central Public Information
Officer designated under sub-section (1) and includes a Central Assistant Public Information
Officer designated as such under sub-section (2) of section 5.
Section- 2 (e): "Competent Authority" means:
(i) The Speaker in the case of the House of the People or the Legislative Assembly of a State or a
Union territory having such Assembly and the Chairman in the case of the Council of States or
Legislative Council of a State;
(ii) The Chief Justice of India in the case of the Supreme Court;
(iii) The Chief Justice of the High Court in the case of a High Court;
(iv) The President or the Governor, as the case may be, in the case of other authorities
established or constituted by or under the Constitution;
(v) The administrator appointed under article 239 of the Constitution;
Section- 2 (f): "Information" means any material in any form, including Records,
Documents, Memos, e-mails, Opinions, Advices, Press releases, Circulars, Orders,

33
Logbooks, Contracts, Reports, Papers, Samples, Models, Data material held in any electronic
form and information relating to any private body which can be accessed by a Public Authority
under any other law for the time being in force.
Section- 2 (h): "Public Authority" means any authority or body or institution of self-government
established or constituted:
a. By or under the Constitution,
b. By any other law made by Parliament;
c. By any other law made by State Legislature;
d. By notification issued or order made by the appropriate Government
It also includes any:
(i) Body owned, controlled or substantially financed;
(ii) Non-Government Organization substantially financed directly or indirectly by funds provided
by the appropriate Government.
Section- 2 (i): "Record" includes:
(a) Any document, manuscript and file;
(b) Any microfilm, microfiche and facsimile copy of a document;
(c) Any reproduction of image or images embodied in such microfilm (whether enlarged or not);
and
(d) Any other material produced by a computer or any other device.
Section- 2(j): "Right to Information" means the right to information accessible under this
Act which is held by or under the control of any public authority and includes the right to:
(i) Inspection of work, Documents, Records;
(ii) Taking notes, Extracts or Certified copies of documents or records;
(iii) Taking certified samples of material;
(iv) Obtaining information in the form of Diskettes, Floppies, Tapes, Video cassettes or in any
other electronic mode or through printouts where such information is stored in a computer or in
any other device.
Section- 2(n): "Third Party" means a person other than the citizen making a request for
information and includes a Public Authority.
RTI for whom
Section- 3: Subject to the provisions of this Act, all Indian citizens shall have the Right to
Information.
Responsibilities of Public Authority
Section- 4(1) (a): Every Public Authority shall maintain all its records duly catalogued and
indexed in a manner and the form which facilitates the Right to Information under this Act and
ensure that all records that are appropriate to be computerized are, within a reasonable time and
subject to the availability of resources, computerized and connected through a network all over
the country on different systems so that access to such records is facilitated.
Section- 4 (1) (b): Public Authority shall publish the following information within 120 (One
Hundred and Twenty) days from the enactment of this Act:
(i) The particulars of its organization, functions and duties;
(ii) The powers and duties of its officers and employees;
(iii) The procedure followed in the decision making process, including channels of supervision
and accountability;
(iv) The norms set by it for the discharge of its functions;

34
(v) The rules, regulations, instructions, manuals and records, held by it or under its control or
used by its employees for discharging its functions;
(vi) A statement of the categories of documents that are held by it or under its control;
(vii) The particulars of any arrangement that exists for consultation with, or representation by,
the members of the public in relation to the formulation of its policy or implementation thereof;
(viii) A statement of the boards, councils, committees and other bodies consisting of to whether
meetings of those boards, councils, committees and other bodies are open to the public, or the
minutes of such meetings are accessible for public;
(ix) A directory of its officers and employees;
(x) The monthly remuneration received by each of its officers and employees, including the
system of compensation as provided in its regulations;
(xi) The budget allocated to each of its agency, indicating the particulars of all plans, proposed
expenditures and reports on disbursements made;
(xii) The manner of execution of subsidy programmes, including the amounts allocated and the
details of beneficiaries of such programmes;
(xiii) Particulars of recipients of concessions, permits or authorizations granted by it;
(xiv) Details in respect of the information, available to or held by it, reduced in an electronic
form;
(xv) The particulars of facilities available to citizens for obtaining information, including the
working hours of a library or reading room, if maintained for public use;
(xvi) The names, designations and other particulars of the Public Information Officers;
Section- 4(1) (c): Public Authority shall publish all relevant facts while formulating important
policies or announcing the decisions which affect public.
Section- 4(1) (d): Public Authority should provide reasons for its administrative or quasijudicial
decisions to affected persons.
Section- 4 (2): It shall be a constant endeavour of every Public Authority to take steps in
accordance with the requirements of clause (b) of sub-section (1) of section- 4 to provide as
much information suo motu to the public at regular intervals through various means of
communications, including internet, so that the public have minimum resort to the use of this
Act to obtain information.
Section- 5 (1): Every Public Authority shall, within 100 (One Hundred) days of the enactment of
this Act (July 15, 2005), designate as many officers as the Central Public
Information Officers or State Public Information Officers, as the case may be, in all
administrative units or offices under it as may be necessary to provide information to persons
requesting for the information under this Act.
Section- 5 (2): Without prejudice to the provisions of sub-section (1) of Section-5, every
Public Authority shall designate an officer, within One Hundred days of the enactment of this
Act, at each sub-divisional level or other sub-district level as a Central Assistant Public
Information Officer or a State Assistant Public Information Officer, as the case may be, to
receive the applications for information or appeals under this Act for forwarding the same
forthwith to the Central Public Information Officer or the State Public Information Officer or
senior officer specified under sub-section (1) of section 19 or the Central Information
Commission or the State Information Commission, as the case may be.
Provided that where an application for information or appeal is given to a Central Assistant
Public Information Officer or a State Assistant Public Information Officer, as the case may be, a

35
period of 05 (Five) days shall be added in computing the period for response specified under sub-
section (1) of Section 7.
Responsibilities of Public Information Officer
Section- 5 (3): Every Central Public Information Officer or State Public Information Officer, as
the case may be, shall deal with requests from persons seeking information and render
reasonable assistance to the persons seeking such information.
Section- 6 (1): A person, who desires to obtain any information under this Act, shall make a
request in writing or through electronic means in English or Hindi or in the official language of
the area in which the application is being made, accompanying such fee as may be prescribed
specifying the particulars of the information sought by him or her to:
(a) The Central Public Information Officer or State Public Information Officer, as the case may
be, of the concerned Public Authority;
(b) The Central Assistant Public Information Officer or State Assistant Public Information
Officer, as the case may be.
Provided that where such request cannot be made in writing, the Central Public Information
Officer or State Public Information Officer, as the case may be, shall render all reasonable
assistance to the person making the request orally to reduce the same in writing.
Cause of Information
Section- 6 (2): An applicant making request for information shall not be required to give any
reason for requesting the information or any other personal details except those that may be
necessary for contacting him/her.
Transfer of Application to another Public Authority
Section- 6 (3): Where an application is made to a Public Authority requesting for information:
(i) Which is held by another public authority; or
(ii) The subject matter of which is more closely connected with the functions of another Public
Authority
The Public Authority, to which such application is made, shall transfer the application or such
part of it as may be appropriate to that other Public Authority and inform the applicant
immediately about such transfer.
Such application shall be transferred within 05 (Five) days from the date of receipt of the
application.
Time limit for the supply of information
Section- 7 (1): Subject to the proviso to sub-section (2) of section 5 or the proviso to subsection
(3) of section 6, the Central Public Information Officer or State Public Information
Officer, as the case may be, on receipt of a request under section 6 shall, as expeditiously as
possible, and in any case within 30 (Thirty) days of the receipt of the request, either provide the
information on payment of such fee as may be prescribed or reject the request for any of the
reasons specified in sections 8 and 9.
If the sought information concerns the life or liberty of a person, in that case information shall be
provided within 48 (Forty-Eight) hours of the receipt of the request.
Section- 7 (2): If the Central Public Information Officer or State Public Information Officer, as
the case may be, fails to give decision on the request for information within the period specified
under section 7(1), the Central Public Information Officer or State Public
Information Officer, as the case may be, shall be deemed to have refused the request.
Assistance to disabled persons

36
Section- 7 (4): Where access to the record or a part thereof is required to be provided under this
Act and the person to whom access is to be provided is sensorily disabled, the Central
Public Information Officer or State Public Information Officer, as the case may be, shall provide
assistance to enable access to the information, including providing such assistance as may be
appropriate for the inspection.
Charges for Information
Section- 7 (5): Where access to information is to be provided in the printed or in any electronic
format, the applicant shall, subject to the provisions of sub-section (6), pay such fee as may be
prescribed.
The fee prescribed under sub-section (1) of section 6 and sub-sections (1) and (5) of section 7
shall be reasonable and no such fee shall be charged from the persons who are of below poverty
line as may be determined by the appropriate Government.
Supply of information free of cost
Section- 7 (6): Notwithstanding anything contained in sub-section (5) of section- 5, the person
making request for the information shall be provided the information free of charge where a
public authority fails to comply with the time limits specified in sub-section (1).
Reason to rejection
Section- 7 (8): Where a request has been rejected under sub-section (1) of Section- 7, the Central
Public Information Officer or State Public Information Officer, as the case may be, shall
communicate to the person making the request,
(i) The reasons for such rejection;
(ii) The period within which an appeal against such rejection may be preferred; and
(iii) The particulars of the Appellate Authority.
Form of supplied information
Section 7 (9): Information shall ordinarily be provided in the form in which it is sought unless it
would disproportionately divert the resources of the Public Authority or would be detrimental to
the safety or preservation of the record in question.

DEVELOPMENT ADMINISTRATION - CONCEPT:

The essence of Development Administration is to bring about change through integrated,
organized, and properly directed governmental action. When Riggs was busy testing the
traditional theories of Administration in developing countries like Thailand in 60's he realized
the futility of the experiment because the problems that plague the developed societies do not
plague the developing countries and so the former's administrative practices did not work in the
latter's ecology. He found that in order to bring the developing nations onto the platform of the
developed there has to be a lot of development to be done and so these countries were so busy in
their welfare and development activities that they developed their own ways and practices of
administration in order to sustain the same. Therefore, that is where the concept of development
administration was conceptualized. Development Administration as an area of study was
propagated as a means to bridge the gaps and missing links in administrative theory between the
developed and developing countries.
There is no unanimous definition of Development Administration as such as everyday it is being
given newer ones and updated but yes, there are certain characteristics and features of
Development Administration that help identify it.
Those are:

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i) Change Orientation - It is anti-status-quo (continuing present situation). It looks to formulate
strategies to develop administrative capacities viz-a-viz external environment as well as building
activating internal structures in order to speed up socio-economic change.
ii) Goal oriented - It is result oriented that pertain to social, economic, political and cultural goals
(including technological) which are progressive in nature.
iii) Motivation - Motivation and that too a high degree of it is a backbone of any organization
and personal vested interests should be thwarted if progressive goals have to be achieved.
iv) Client orientation - It is people centred and aims to provide the maximum services and
products to the people/clients.
v) Greater participation of citizens - It involves the great amount of people participation in the
formulation and implementation of development goals and policies. It looks to facilitate people's
participation and in India the block level and district planning level is part of the govt. initiative
to do so at the grass root level.
vi) Effective integration - Effective integration among groups and authorities involved while
achieving development goals both at the small and big level.
vii) Innovativeness - Development administration has the approach of problem solving which it
does through applying new methods, structures, procedure, plans, projects and programmes for
achieving its objectives.
viii) Responsiveness - Fulfilling the needs of people and responding to the demands and needs of
society are its top priorities.
These characteristics and features will be understood after understanding the following two goals
of Development Administration:
1) Administration of Development: Administration of Development means the arrangement and
tasks needed to control the operation/plan of development. It is how development plans and
policies are carried out or implemented, in short administered. Administration of development
involves the following goals/objectives:
a) application of innovative strategies for development. Administrative systems and machinery
capacities should be reinforced and built up to implement the programmes and policies in the
most optimum way.
b) emphasis on development at the grassroots level. Development has to be a need-oriented and
self-reliant process.
c) Stress on social development and human capital as a major resource.
d) Development has to be viewed not merely as a technological problem but also as an
ideological norm.
e) Profound and rapid change in order to establish a distinct and just social order.
f) Recognising and highlighting the unity, rather than the dichotomy between politics and
administration.
g) Effective and efficient use of scarce resources.
h) Creation of politics-administrative environment which is oriented towards securing basic
needs of population.
i) Freedom of administrative machinery to express its values and beliefs without fear or favour
on programmes and projects.
2) Development of Administration or Administrative development: Simply speaking it refers to
that aspect of development administration where administrative systems and capacities are
developed for efficient and optimum utilisation of scarce resources to implement the
development policies. It looks to bring out not only procedural, technical or organisational

38
changes to keep the administrative machinery up to date with the societal goals but also to bring
about political development, economic growth and social change. It also looks to bring about
adaptability, autonomy and coherence in administration and remove corruption. So now since we
have understood the term of Development Administration and its two aspects which need to be
fulfilled because they both are interdependent and if one aspect is not fulfilled the other cannot
persist. Also we can see the difference between traditional administration of the earlier periods
where all that was prioritised was increase in production and efficiency and profits, development
administration is concerned about social justice and economic as well as administrative
machinery and political development.

EMERGENCE OF DEVELOPMENT ADMINISTRATION:

1) Goals of administration were being ignored and only the means to achieve those goals were
being stressed upon. In detail, only theories and methods were being looked into and no one was
looking into what should be the goals of administration.
2) The formation of the Comparative Administration Group in 1960.
3) Newly emerged independent nations after the Second World War needed their own
indigenously developed administrative model/machinery suited to their ecology and needs of
society.
4) UN sponsored development schemes and extension of USA economic and technical assistance
plans to the third world and newly emerged independent countries.

IMPORTANT INSTRUMENTS OF DEVELOPMENT AUTHORITY:

1) Administrative systems - Planning Commission, etc.
2) Political Organisations - Political parties, etc.
3) Voluntary associations – Non-profit trusts/societies like Voluntary Health

ANTI DEVELOPMENT THESIS:

It began in 1950's and 60's. It is not against development but only against the western theory of
development in developing countries which they termed as full of vested interests and anti-
development policies of the West that were being labelled as Development of the developing
countries. Reactions to it or it gained prominence during the 70's and 80's and was a precursor to
the Good Governance policy nowadays.
The Anti-Development theorists suggested that the western concepts should be debunked and
people should revert to their indigenous ways and include people in the administrative process
that is the only road to development, through the bottom up approach. It laid stress on the socio-
economic, political and environmental traits of the country in question while
devising/formulating and implementing development policies and programmes in it instead of
blindly aping the west and developed nations where the situation is totally different.

BUREAUCRACY AND DEVELOPMENT:

Bureaucracy and development are two components of development philosophy if seen from an
overview seem to possess opposing values (ideas) as Bureaucracy represents static or orthodox
and rigid values while Development advocates dynamic (moving) values. Bureaucracy viewed
by the Weberian model and other theorists pertains to same routine, unchanged and repeated
procedures that enable it to continue, achieve its pre-estabilished goals and handle its problems
like a system without being influenced by external factors. Development as a concept on the

39
other hand is seen as a phenomenon influenced by the concept of change and is quick to adapt
and adjust to changes coming in through both external as well as internal factors on the way to
development. It is the administrative process evolved for developing countries. And in the
developing countries till now Bureaucracy by shedding its Weberian character is the only
neutral, biggest existing and stable machinery that can achieve and lead the way towards the
process of development in the developing countries. Therefore in the context of developing
countries Bureaucracy and development are complementary and inter dependant instead of being
hostile to one another for the purpose of Development Administration. In order to sensitise the
bureaucracy for development processes it is suggested to provide them training in attitudinal
changes and incorporate dynamic and social values in them to know the requirement, preparation
of strategy and implementation of programmes in the present ecological setting in order to uplift
the socio-cultural and economic status of the country. Bureaucracy, apart from its own duties like
development policy formulation and implementation as well as educating people about the
policies has been suggested to utilise their specialist knowledge in order to play the role of a
friend, facilitator, coordinator, guardian, philosopher and guide to the factors like market and
civil societies as well as other instruments of development administration(as listed above under
the same heading) in the process of development and the bureaucrats have been asked to
patiently assist people in the same. Therefore, as one can understand now that overall evaluation
and implementation of Development Administration programmes are carried out by the
Bureaucracy playing the leading role in developing nations.

STRONG STATE VERSUS THE MARKET DEBATE:

There has been a constant debate as to what shall be the instrumental influencing factor for the
economic arrangement and economic development of an organized state. This is very important
because economic development has a very big impact on the development of a nation. There is a
question as to whether the Market as in western countries should take the lead to do so or should
the neutral and just State be the leader as in developing countries. A State led economic
arrangement consists of planned social and economic development through five year plans, etc
whereas the Market led mechanism on the other hand is associated with increased economic
enterprise/industries and better quality of products and services. Thinkers have supported both
ideas and thus there is no synonymous decision on the same. Let’s discuss this further in order to
understand how exactly both of them are important. A State led mechanism according to
scholars, is very necessary as it will be determined in its objective to achieve equitable and all
round development in society whereas the Market is only profit driven and it may lead to a
disparity in people's status as those who cannot afford the products and services would be further
pushed down into unjust social conditions. Market will not invest in new ventures and areas
where the profits are not visible thus leading to stagnation and no development, thus a State is
required to intervene. They will keep competing among themselves for the same kind of products
and services thus leading to unnecessary supply and wastage of natural resources. Even countries
who are champions of market driven mechanism have been forced from time to time to bring in
the State to intervene and regulate them for the benefit of the people and economy, examples of
these are the 'New Deal' arrangement during The Great Depression in the 1930's and in the
recession period in 2008. On the other hand if we take a purely State led mechanism to drive
economic arrangement and development in a society then scholars fear that it will lead to a rigid
arrangement where even developmental and necessary economic decisions may become victims
of routine and rigid rules and regulations and corruption in the name of socialistic perspective

40
and will be pushed back thus leading to no development and ineffectiveness and inefficiency.
Market is a very efficient and quality provider of goods and services and they create an
arrangement of competition and betterment through the forces of demand of supply. Therefore,
in between these counter views in the era of Liberalization, privatization and globalization post
1990's there has been a sort of compromise between the two schools of thought and we have as a
result the arrangements of Public Private Partnership, etc and it has been suggested the State
should be present to provide an indicative framework with sufficient free play to market forces in
enterprises within that framework. Which means simply that the State shall regulate and create a
framework with necessary objectives and goals for development of society and the production of
products and services shall be given to the market for proper competition and efficient, quality
products and services that will be distributed equally by the State as per its policy framework
established. So, both factors will be playing and driving the economic arrangement and
development in a society (mostly in developing countries).

PUBLIC POLICY - CONCEPT & MEANING:

Public Policy in the broad term refers to the policy (plan of what to do) that is formulated and
implemented for the benefit of the public. If read in light of the narrow view of Public Policy
then it relates to plan of action to be pursued by the Govt. (because Public is also used as a
synonym for Government in many places). There is no unanimity on the definition of Public
Policy. However, Public Policy can be described as the overall framework within which the
actions of the government are undertaken to achieve its goals. It is a purposive and consistent
course of action devised in response to a perceived problem of a constituency, formulated by a
specific political process, and adopted, implemented, and enforced by a public agency.
Goals, policies and programmes are different and should not be used as synonyms of each other
or interchangeably. Policies are devised to achieve certain goals by the government, for example
the Sarva Shiksha Abhiyaan is a govt. programme to achieve the Policy of Free and compulsory
education to all children between 6-14 in India that was established through the Right to
education act 2009 which is a part of meta policy of Education For All by UNESCO. Another
example is the policy of poverty alleviation for which several programmes have been designed
like the Integrated Rural Development Programme, MGNREGA, etc.
Poverty alleviation also comes under a bigger goal of overall socio-economic growth of the
country. Each of these programmes have their own goals to achieve which then all taken
collectively achieve the unified goal of the original policy. There can be a number of
programmes established for achievement of a single policy goal. And there are a number of
policies that are formulated as well to achieve the goals of the govt. Once a policy is declared
(statement of goals) then programmes are devised within/under it to take action through it to
achieve those overall goals. Public Policy is a document that contains the broad outline as well as
the detailed description of formulation as well as implementation of various govt. programmes
and plans that are taken out for the goal/objective of public benefit and implemented through the
constitutional authorities, bureaucracy and government organisations/institutions in collaboration
with civil society organisations. It takes a variety of forms like law, ordinances, court decisions,
executive orders, decisions, etc. It is the authoritative declaration of the intentions of the
government of what it intends to do and to not do & the success of Public Administration as well
as government in a country is linked with the success of its Public Policy.
TYPES OF PUBLIC POLICIES:

41
1) Substantive Public Policy - These are the policies concerned with the general welfare and
development of the society like provision of education and employment opportunities, economic
stabilisation, law and order enforcement, anti-pollution laws, etc are its examples. It does not
cater to any particular or privileged section of society and have to be formulated dynamically
keeping in mind the goals and characteristics of the constitution and directive principles of state
policy as well as the current and moral claims of society.
2) Regulatory Public Policy - These policies are concerned with regulation of trade, business,
safety measures, public utilities, etc. performed by independent organizations working on behalf
of the government like LIC, RBI, SEBI, STATE ELECTRICITY BOARDS, etc. Policies
pertaining to these services and organizations rendering these services are known as regulatory
policies.
3) Distributive Public Policy - These are the policies meant for specific segments of society
especially the needy ones. Public assistance and welfare programmes, adult education
programme, food relief, social insurance, vaccination camps, public distribution systems, etc are
all examples of such policy.
4) Redistributive Public Policy - These policies are concerned with rearrangement of policies
concerned with bringing basic social and economic changes. Certain assets and benefits are
divided disproportionately amongst certain segments of society and so those need to be
redistributed so it reaches where it is needed and does not lie about surplus somewhere else.
5) Capitalization Public Policy - These policies are related to financial subsidies given by the
Centre to state and local governments and central and state business undertakings, etc and is not
directly linked to public welfare as the others listed above. It does contribute but indirectly. It is
basically infrastructural and development policies for govt. business organizations to keep
functioning properly.
6) Constituent Public Policy - It is the policies relating to constituting new
institutions/mechanisms for public welfare.
7) Technical Public Policy - It relates to the policies framed for arrangement of procedures,
rules and framework which a system shall provide for discharge of action by various agencies on
the field.

MODELS OF POLICY MAKING AND THEIR CRITIQUE:

1) Institutional Model:
Under this model certain institutions in society are seen as competent institutions for determining
public policy objectives and processes. The institutions are chosen on the basis of democratic
participation, bureaucratic specification and judicial adjudication and the functions performed by
these certain institutions are the most major determining factor to implement various policies.
This model also specifies and suggests the relationship between various institutions and how
they all work together and collectively contribute to a successful policy implementation.

II) System Model

This approach/theory of an organization was first developed for physics in the structure of a
molecule where it was found that atoms of an element joined together in a systematic manner or
like a system to build a molecule of that element. It then later was found suitable to and extended
to political science, public administration, management, etc as a modern approach to
understanding administration and similar organisations. David Easton and Chester Barnard were
the main proponents and contributors of this theory who analysed political as well as

42
administrative systems minutely and the way they are structured and function and derived best
possible ways of functioning for the same through their studies. A system is a set of
interconnected elements that function together in tandem to make up the whole being. So, a
Systems approach administration is described as a system comprising subsystem, structure,
people, action and interaction that enable it (administration or organisation) to perform certain
functions. Every system influences its subsystems and is also influenced by its subsystems. This
system rejects the closed system approach of an organisation or Classical theory of organisation
where it was stated that an organisation is independent of the environment and society and is not
connected to it. It states that the organisation and environment work together and have frequent
exchanges in order to adjust and in the end there is homoeostasis ( stable state of equilibrium).It
also rejects the theory of the Classical theory of taking decisions which are best and there is one
best way of doing things, it rather supports the concept of 'equifinality (the property of allowing
or having the same effect or result from different events' that means that anything done or
decision taken in an organisation, no matter how it is done but the intention should be the same,
of getting the work done and achieving the goal, then the end results will always be the same or
as desired. This approach/theory takes a holistic approach, that is it takes into account and
studies all elements of an organisation like hierarchy and communications, personnel and
procedures, informal as well as formal organisations and the interface(connection) between
organisations and the environment It states that organisations and the environment it functions in
are interdependent and should be analysed together and how they influence each other. This
approach might not lead to a solution of all administrative problems but it surely lends help to
generate awareness of the limitation and weaknesses of formal administration in tackling
programmes of social and behavioural change. And this systems approach becomes all the
modern in today's times where organizations are growing and expanding humongously and are
transcending national boundaries with product diversification and growing complexity of
operations functioning within them and so it is required to integrate them all within a
framework/system for its systematic functioning. It is used as a criticism towards the closed
system model of Max Weber's Ideal Bureaucracy theory.
David Easton says policy making and decision making are closely related & adopts the systems
approach to analyze public policy making and implementation process in a dynamic political
system and the cycle that is involved in it. This diagram will help understand it in a detailed
manner: Inputs are given by the society/environment to the policy makers as to what is needed to
be done and that goes in to the 'black box' (as Easton calls it) where decision making process
takes place and then evolves the output in the form of administrative decisions and policies to be
implemented. These implementations are then analyzed by the society and environment again
and then goes back as feedback inputs to the politicians/policy makers and then that again is
taken into account and then once again it goes into the black box and decisions are taken as to
how to improve it or discard it as per the situation demands and then there is an output again in
the form of action. Again the feedback keeps going in and so on and so forth.

III) Rational Model

This approach emphasizes that policy making is making a choice among the policy alternatives
based on the ‘rationality’ i. e. rationality is considered to be the ‘yardstick of wisdom’ according
to this model of policy analysis. Rational policy making is to choose one best option. According
to this approach rational policy is one that maximizes the ‘net value achievement’. Thomas Dye
equates rationality with efficiency i. e. a rational policy should be one in which the ratio of

43
values it achieves and the values it sacrifices should be positive. These values are calculated not
in just monetary terms but in social, political and economic terms.

In social sciences there are many models of rational decision making system e. g. Thomas Dye
has given following model of a rational approach to decision system.

IV) Lindblom’s Incremental Approach

As a response to the traditional rational model of decision making, Lindblom presented his
incremental approach to policy making. In 1959, Lindblom published an article titled “Art of
Muddling Through" which became quite famous in the field of public policy. Lindblom
mentions that rational decision making is not possible for ‘complex policy questions’. He
propounded the concept of successive limited comparisons’ or ‘branch decision making’. By
incrementalism Lindblom means building up step by step in small degrees from the current
situation. This was in contrast to the ‘root’ approach advocated by other policy analysts which
meant starting anew every time. He mentions the constraints of time, intelligence and cost in the
making of rational decision making. He favours ‘successive limited comparisons’ and this
process leads to ‘bounded rationality’.

V) Dror’s Normative Optimum Model

Dror criticized the incremental model of Lindblom on the ground that it is unjust as it creates
more gap between those who have power and those who do not have the people who do not have
power will find it more difficult to bring about change. He offers his alternative model which has
the following features:

 Need for rationality (Simon’s model)

 Need for bringing about more management techniques at the lower levels to increase
rationality
 Policy science approach (as was mentioned by Lasswell) at the higher levels to deal with the
complex problems of the society
 Need to take into account values and irrational elements in decision making

Dror calls his model as “normative optimalism” because it combines the core elements of
rational model (e. g. costs and benefits) with the ‘extra rationality elements which are excluded
from the purview of the rationality model. A unique feature of this model is that it emphasizes on
incorporative extra-rational elements like tacit knowledge, faith and personal experience. This
has been done to fit it into reality. This model consists of around 18 steps divided into following
stages:

 Meta-policy making stage

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 Policy making stage
 Post policy making stage
The meta-policy making stage concerns itself mainly with processing values, the policy making
stage with allocating resources and post-policy making stage with the execution of policy. By
this approach Dror seeks radical reform of the public policy making process.

VI) Group Theory

This theory is relevant for the pluralistic societies in which a number of interest groups exist and
compete against each other to have an upper hand in the society. For this they try to control
public policy in their favour. These groups may have contradictory objectives. According to this
view politics is actually the struggle among groups to influence the public policy. The political
system manages group conflict by

 Establishing rules of the game in the group struggle

 Making an arrangement for compromises and balancing of interests among various groups
 Enacting various laws

Public policy at any time is the equilibrium reached in this group struggle at that time. Relative
influences of different groups determine this equilibrium. The whole meaningful political
activity is described in terms of the group struggle only by the group theorists e. g. policy
making echelon is viewed as busy in responding to the group pressures through making
arrangements of compromising, negotiating and bargaining between the groups. Politicians and
political parties form coalitions of groups. Among these groups some of the members could be
common also i. e. some individuals could be members of more than one group. This overlapping
membership prevents anyone group from going too far from the existing values. This helps in
maintaining the equilibrium among the groups. This overlapping membership moderates the
group conflict. It depends on the ecological conditions and the political culture of a society
which type of group dominates in that particular society or the check each other through
effective checks and balances.

Following situations may arise in group struggle:

1. Domination of Stronger Group - When one group dominates. This is also called as “win-
lose” situation.
2. Optimisation Approach - The interests of all the conflicting groups are maximized. This is
also called as “win-win” situation.
3. Public Choice Approach - The government makes provision of number of options for the
general public to choose from. Some options may be made more attractive by the mechanism
of incentives and curbs.

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4. Trade Off Theory - The group may surrender its not so important demands while still
pursuing for the most important ones. It is also called as “Mutual Accommodation and
Adjustment”.
5. Corporatism - All the groups may assemble against the government and protect each other’s
interests. This unanimous opposition to government could take place despite the internal
conflicts among the groups. Since government remains the only agency to provide goods &
services in such a scenario, it may ignore public demands. Such a situation exists many a
times in developing countries.

The main criticism of the group theory is that though it vividly describes the existing situation in
many of the countries but still it perceives everything happening in society from just one
perspective of group struggle. It is not a holistic approach. It describes the existing situation in
many cases but not what it should be in future.
VII) Elite Theory
According to the elite theory public policies reflect the preferences and values of the governing
elite. It is actually the elites who shape the mass opinion on policy issues rather than masses
shaping the opinion of the elites. This is due to the fact that people are ignorant and ill-informed
about the crucial issues of public policy. Hence public policies are not the reflections of mass
opinion but the preferences of elites. Due to this lack of information policies flow downward
from elites to the masses and they are not result of demands raised by the masses. This
downward flow of public policy has to be accepted by masses and only those non-elites could be
admitted to the governing elite who accept the opinions of the elites. Although elites could be
dependent on the masses for their survival through votes but once they come to power they
become apathetic towards them. In such a scenario only incremental changes could be
incorporated in the policies because status quo is sought to be maintained at all costs.
VIII) Market Exchange Model
It believes in a free market with minimum regulations by the State in the affairs and a lot of
public-private partnership as well as a lot of private organizations taking over the government's
functions and directing the policy making. It is believed that this will lead to higher competition
and thus higher economic growth and this will in turn benefit the government in funds for its
policies.
THEORIES OF STATE AND PUBLIC POLICY FORMULATION IN SUCH STATES
Theories of State and public policy formulation will help us understand the different kinds of
State's and how policies are formulated under them.
The four major theories of State are:
1) Pluralistic theory of State: It is a liberal theory of State and states that the State acts as a
referee and umpire who as and when required steps in to arbitrate between issues occurring. It
believes that every individual of the society knows what is best for him and has mutually agreed
into a social contract with other individuals to protect their interests and the duty to referee that
social contract is in the hands of the State, so as and when that social contract stands violated by

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anybody the State will punish them neutrally. This theory states that since the State is non-
partisan, and unbiased it brings out only altruistic, universal and benevolent Public policy.
i) Neo-Pluralistic State theory - However, the new or neo-pluralistic State theory state that the
State is not completely insulated from influence and is influenced repeatedly by groups whose
relative strength caused by huge investments like corporates, etc and so the State also bows down
many a times and misuses its powers. Therefore Public Policy formulated in such a State is
influenced by these groups and many a times goes against the majority's will.
2) Marxist Theory of State: Marx claimed in his theory of State that the State is an institution
created to cater to the interests of the bourgeois (rich/upper middle class) and to perpetuate their
vested interests. State wears the mask of the protector of the proletariat/peasants/poor but
actually has a different face, that of catering only to the bourgeois. Public policy formed in such
a State will be coercive towards the proletariat and will be pleasing to the bourgeois or the
dominant group.
i) Neo-Marxist or new-Marxist theory of State: Gramsci through his phrase "Ideological
hegemony" states that Bourgeois does not only use the State for its vested interests but also uses
other instruments like education, religion, etc to do the same. Public policy formulation in such a
State tries to take care of religion, culture, education, etc. through public policy to perpetuate the
bourgeois interest.
ii) Contemporary Marxist theory of State: Miliband and Poulantzas challenged the two class
model of Marx and stated that even the bourgeois class consist of different levels. And beyond
the two classes of bourgeois and proletariat there are also other classes like white collar jobs, etc.
Miliband argued that the State will formulate policies that act like an instrument to serve the
interests of business class and will also serve the poor and vulnerable but under the aegis of the
business class. That is why Miliband is also called as an instrumentalist. Poulantzas states that
the role of the State is the outcome of the balance of the power of the society thus the public
policy formulated in such a State arrangement is influenced by the balance of power in the
society. Thus it is a structure that is formed on the basis of benefit of both opposing factors.
Thus, he is also called the Structuralist.
3) Leviathan State: State is all powerful and having all potentialities and is all encompassing.
Leviathan means Gigantic and powerful and was coined and theorised by Thomas Hobbes. This
state has two sides - Demand and Supply Demand side refers to the demands of the society
brought about by the big state and supply side refers to initiation of the State to become a big
State. Public Policy formulation in this kind of a State relates to all areas including
developmental and non-developmental. People get a chance to voice their view (demand side)
and State on its own brings public policy which it feels is beneficial for people (supply side of
State).
4) Patriarchal State: It is a feminist view of State as they believe that the State is exploitative
towards females and justifies male values and orients towards males. It has two approaches to it -
Radical and Liberal Feminism
i) Radical feminism: These are radicalists and revolutionary ideas and do not believe in reform
or gradual change. They believe in confronting the State and demanding their rights at the very
moment.

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ii) Liberal feminism: This view believes in gradual reform and states that the traditional sphere
is believed to be for females and the public sphere is believed to be for males and the State
supports this imbalance. However, they believe in taking one step at a time to rectify the gender
imbalance in both sectors. Now since we have studied the theories of State. Now let's move to
the practical aspect of State and its various typologies.
PUBLIC BORROWING:
When there is a deficit in the budget that means expenditure is more than income/revenue for the
government then the government resorts to borrowing from the Public in the form of government
issued treasury bills, post office savings certificates, National Saving Certificates, Provident
Fund, Fixed deposits, etc as instrument of Public borrowings for the time period that the person
takes it for and that is why we see attractive advertisements taken out from time through Public
as well as private sector banks and institutions with good rates of interest to attract investors to
invest with them, and all this is paid by the government through its fiscal policy in order to
garner more funds year after year for their development activities and economic growth. Public
borrowing also helps in curbing inflation and seize away the excessive and unnecessary
purchasing power from the public during an inflationary period. However, when even that is
exhausted to an extent then the government borrows from the Reserve Bank Of India when it
wants to meet the remaining part of deficit in the budget and thus it is also known as deficit
financing. Deficit financing helps the government meet their resource crunch expeditiously and
also the interest that the government pays back to the RBI upon returning those borrowings
actually come back to them in the form of profits so it is a beneficial tool for the government.
However, deficit financing involves printing of new currency through RBI to give to the
government and that leads to infusion of excess money supply into the market through
government activities leading to money getting concentrated in the hands of a few who can
afford and thus consumption increases leading to less supply and so prices rise which in short is
inflation. Therefore deficit financing leads to inflation.

PUBLIC DEBT:
The money and interest/debt that the government has to pay back to the Public when it borrowed
from it (please look above for the instruments used in Public Borrowing) is known as Public
debt. It has been on a constant rise in developing countries since a long time due to haphazard
budgets and unforeseen circumstances that lead to a not so proper implementation of even a
proper budget. Public debt can be both internal as well as external. Internal has been discussed
above. External debt is when the government of a country borrows from global institutions like
the World Bank and International Monetary Fund, etc.
CLASSIFICATION OF PUBLIC DEBT:
1) Reproductive and Unreproductive debt - Reproductive debt is when money is borrowed to
invest in an infrastructural project like railways, irrigation, etc which when finished will be used
by the public and provide revenue through taxes and be profitable for the government. On the
other hand unreproductive debt refers to those borrowings that are done for meeting expenditures
like war, etc which will not yield any direct revenue upon completion.

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2) Voluntary and compulsory debt - Voluntary debt is when the public is free to decide whether
they want to provide loans to the government or not and compulsory is when the public is legally
compelled to provide funds like in 1971 the 'Compulsory deposit scheme' was introduced.
3) Internal and External debt - It has already been detailed above.
4) Long term and short term debt - Long term debt is when the debt has to be repaid after a year
and short term debt is when it has to be repaid within a year.
BUDGET:
Budget is an estimate of income and expenditure for a set period of time in India's case it is of a
year. It is the detailed implementation plan of the fiscal policy of the State in hard figures and
facts and activities to be pursued for executing and implementing the same for socio-economic
development of a country by the executive. It is defined as a series of goals with price tags
attached. Where a line item is detailed and a price/cost is mentioned next to it.
UTILITY AND IMPORTANCE OF A BUDGET:
1) As a tool of financial control of the legislature over the executive.
2) As a tool of administration for carrying out its functions as per specified and approved budget.
3) An instrument of Public Policy for development and welfare as well as economic and social
growth and development.
4) As a tool of accountability for the legislature over the executive.
5) Budget helps getting five year plans into action.
TYPES AND FORMS OF BUDGETS:
1) Short term - annual - long term Budget: If a Budgetary proposal happens to be for less than
a year then it is considered to be a short term budget. Proposal for a year is classified as an
Annual Budget and proposals for more than a year are classified as long term budgets.
2) Surplus - Balanced - Deficit: A proposal is considered to be a surplus budget if revenues in a
year exceed the expenditure of the same year. A balanced budget is that where both the sides are
equal. And a deficit budget is one where the expenditures for the year exceed the revenue for that
year.
3) Cash Budget - Revenue Budget: That form of budget where the proposals are based on cash
that means in terms of actuals and not based on accruals (increasing or projected increase). It is
in practice in India, U.K and USA. Under this type of budget there is a 'rule of lapse' which
means that once the validity of the budget appropriation is overall remaining or unutilised funds
will lapse and a fresh proposal will have to be put forward to the legislation for receiving further
grants. This kind of budget is considered suitable because it allows re-prioritization of activities
of the executive and is a more comprehensive format. Revenue budget refers to that form of
budgeting where proposals are based on accruals and appropriation for their authorization are
linked to the completion of the activities and not the validity or life cycle of the budget.
4) Lumpsum Budget: It is a proposal where expenditures are not provided heading wise rather
an overall estimate is presented for the approval of the legislature. It is considered useful when

49
funds are required to be appropriated for some unspecified or unclear activity/area which is in
the process of determination.
5) Line - Item Budget: It is considered as one of the most popular format as it is simple in
approach as well as in understanding. It is that technique of budgeting where every item has a
dedicated separate line and column for its complete description along with its rate and the total
quantity required as well as the funds required for it are clearly specified. It helps in more
accountability of the executive as well. The drawback of this technique is that it fails to link
expenditure with performance after such expenditure as the focus is totally on the expenditure
and all the detailing goes into that. It is not comprehensive in its outlook.

6) Performance Budget: A result of the First Hoover Commission in 1949 it was first applied
for federal budgeting in 1950 by President Truman. It is a technique under which allocation of
funds are based on functional classification. It specifies the demands with the heading as well as
the objective it sets out to achieve. Thus the legislature has total control over the executive
actions and knows what it is to expect at the end of the Budget life cycle and can evaluate it and
hold them accountable. This type of budget shows a clear relation between inputs and outputs. It
helps the legislature hold the executive accountable in a better manner, helps head of
departments of administration as communication for activities is clear from top to bottom and
they find it easier to direct subordinates and achieve the specified goals, it helps the auditor as
well as he has a clear idea of each and every detail as mentioned above. This technique was first
recommended by the Estimates Committee in 1956, however, it was introduced in Parliament for
the first time in 1968-69 on recommendation of the first Administrative Reforms Commission.
The limitations to this technique are:
i) Difficult to measure performance of various activities of govt./executive for it is quite vague
and cannot be directly measured.
ii) Expenditure made by govt. under number of heads do not present themselves in the form of
results that are objective enough to be directly measured.
iii) For various govt. activities, it is not easy to determine the unit cost of such activities.
iv) Not easy to establish links between development heads and accounting heads.
7) Planning Programming Budgeting System (PPBS):
This system was first developed by General Motors in 1920's for managing financial matters and
then implemented in the department of defense. Impressed by the results it was first introduced
into political fray for Federal budgeting in 1966 by President Johnson of USA as a replacement
for the shortcomings of the Performance Budget system. It incorporates planning function where
basic goals of the organisation are determined along with the selection of programmes that are
best suitable to achieve them. Programming encompasses the scheduling and execution of those
programmes efficiently through clearly defined projects. Budgeting then takes over to convert
the goals, programmes and projects into monetary estimates for a review of the administrative
heads and then to be presented to the legislature for appropriation. This technique thus seeks to
incorporate all functions of Planning, Decision Making and Budgeting of government goals and
objectives/policies.

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Limitations of this technique are:
i) Tries to incorporate different departments and agencies work together thus making the process
cumbersome.
ii) Periodic reviews and evaluations needed to check its effectiveness along with good and clear
coordination between different agencies like planning, bureaucracy, accounting/finance
ministries and departments, etc.
iii) Analytical in nature and not practical.
iv) Socio economic objectives are difficult to follow in a calculated manner as a lot of variables
come into play.
8) Zero Based Budgeting: This technique was developed at the Texas Instrument Company in
USA by Peter Phyrr and adopted for the Federal Budget calculation in 1977 by President Carter.
It is an evaluation of all programmes and expenditures of every year requiring each
manager/administrator/executive head to justify his entire budget request in detail. Evaluation of
operational activities are done in terms of costs and benefits. It is based on a comprehensive
analysis of priorities, goals and objectives making it more realistic and practical. Targets are
specified through efficient planning and control functions. It helps enable better communication
and personnel development in organizations.
Limitations are:
i) Effective administration and communication is necessary to implement this technique.
ii) Requires a lot of investment and updated infrastructure and properly trained personnel.
iii) Large data processing and making.
iv) Human biasedness in selection of decisions cannot be overlooked.

BUDGETARY PROCESS:
There are two types of budget presented to the legislature for passing – General Budget and
Railway Budget at the central level. They were separated in 1921 to preserve the business
approach to the railway policy and after paying the annual contribution the Railway can keep
their profit and keep the profit for their development. Once requisite data is collected from all
ministries and departments and scrutinized in tandem by the controlling officers and the
Accountant-General and the administrative departments, it is then reviewed by the Finance
Ministry and again the same process is followed by the Union Cabinet. That is why there is
collective responsibility of the cabinet for the budget in Parliament. The budget is then framed by
the Finance ministry in the proper format after consulting the Planning Commission for
including the Plan priorities and the help of CAG is also taken for getting previous years data of
accounts. All this work begins in September of the current year for preparation of budget for the
next financial year beginning on April 1st. The States have their own budget and the same
procedure is followed but done by the State Finance Department following the same procedure
as in the Centre and has to be approved by the respective State Legislature. After compiling the
budget then the Finance Minister presents the same in the Lok Sabha for the Parliament

51
approval. Whether this much fund is actually required or not once put in front of the parliament
for passing is sent to the Estimates Committee to do the scientific financial assessment of the
same and report to the legislature whether funds demanded are estimated precisely or not. A
general discussion then pursues in parliament over the budget document and then a voting on the
demand of grants take place, it is then considered again and the Appropriation Bill is then passed
for the government to incur expenses from the Consolidated Fund of India then another round of
consideration takes place for the revenue/taxation proposals of the budget and after that the
Finance Bill is passed authorising the govt. to collect taxes and revenue.
Once the process of passing the bill is completed then the execution of the budget begins. The
Finance Ministry then takes over as it has the charge of the treasury of funds. It then calls in the
respective administrative ministries and departmental heads to present their plan of outcomes for
the appropriated/granted funds and write the reasons for the amount to be disbursed to their
departments/ministries. Once that is prepared and the scheme is presented to the Finance
ministry then the ministries are provided with certain guidelines/instructions that they need to
pursue in regards to their spending and the funds being disbursed to them from the treasury
through the Finance Ministry. Regular check is kept on them from them on to ensure
accountability. If a Finance Bill is rejected in the House then the whole cabinet has to resign
based on the principle of Collective Responsibility.

FINANCIAL ACCOUNTABILITY:
Financial Accountability or accounting refers to the system of recording and maintaining data of
all financial transactions of both the Centre and State. It is a means of the legislature as well as
executive to exercise financial control over funds granted. It gives the details of the financial
health of the government and also provides a clear account of loss as well as profit to the
exchequer and whether the funds granted by the legislature were utilized for the same purpose as
demanded and whether the goal was accomplished or not.
CLASSIFICATION OF PUBLIC ACCOUNTS:
1) Control Accounts - It contains data of all expenditure and revenue as well as funds
receipts/financial transactions of the government.
2) Proprietary Accounts - Maintained for the purpose of internal control and are not subject to
external audit and is helpful for departments and ministries in decision making process.
3) Supplementary Detailed Accounts - Prepared for providing information to the general public
about government functioning in terms of various department spending. It is prepared after 2-3
years of actual funding and is so formatted to be easily comprehensible for public viewing.

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