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Source: The post on the issues with India’s public institutions has been created based on the article “Improving the capability of the Indian state” published in “The Hindu” on 2nd December 2023.
UPSC Syllabus Topic: GS Paper 2 Governance – Role of civil services in a democracy.
News: The article discusses the issues with India’s public institutions and suggests reforms that may be undertaken to resolve them.
In the G-20 group, India has the smallest number of civil servants per capita. Similarly, the per capita number of doctors, teachers, town planners, police, judges, firefighters, inspectors for food and drugs, and regulators is also very low.
Why is a bigger state needed in India?
Supporters of inclusive development rightly advocate for an expanded state role, endorsing higher government expenditure on healthcare, education, social security, and a similar increase in bureaucracy.
Due to insufficient state capacity, central and state governments often outsource services that would be more effectively administered by the public sector, like primary healthcare.
What are the issues with a big state?
However, there are concerns that a bigger state may lead to enormous bureaucratic inertia and red-tapism in the form of licences, permits, clearances, and permissions.
Also, the performance of the big state in India has been disappointing across domains such as learning outcomes, child and maternal mortality, agricultural and industrial productivity, etc., prompting people to favour a reduced role for state.
The author contends that in the debate on the extent of the role of the state (whether big or not), focus should be on addressing underlying problems such as incentives created by public institutions which result in undesirable consequences as well as skill gap among officials.
What are the issues with the Indian state and what are the reforms which can be undertaken to solve these issues?
| Issues | Reforms Required |
| Concentration of policymaking and implementation powers both within departments. | Separating policymaking and implementation responsibilities is required. This speeds up the process and promotes innovation, tailoring programs more effectively to local situations. For example, The synergy between National Highways Authority of India (implementing agency) and the Ministry (policy decisions) has significantly decreased project delays and cost overruns. |
| Lack of decision-making power with the frontline personnel. This leads to a culture of mistrust and lack of accountability. | Delegating financial and administrative powers to the frontline functionaries, with clearly defined processes is required.
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| Lack of technocratic skills among policymakers to govern an increasingly complex economy. | a. Lateral entry at the mid and senior levels can help fill the civil services’ size and technocratic gap. b. Qualified officers in non-IAS services should also get opportunities in high-level positions if they have the expertise. c. Civil servants should undergo subject-specific training under Mission Karmayogi. |
| Narrow scope of audits by the CAG (without taking into account the context in which a bureaucratic decision was made). It encourages the bureaucracy to focus on compliance with rules rather than objectives. This has made bureaucrats risk-averse to exercising discretion in policy matters, especially in case of big contracts, leading to delays. | The oversight agencies (CBI, CVC, CAG) must be sensitised to appreciate the context of policy decisions. They should factor in the costs associated with the actual decisions as well as their alternatives. |
| Post-retirement Appointments. This makes civil servants susceptible to political manipulation and influences their in-service decisions. | Increasing the retirement age to 65 years and making an absolute upper limit for all appointments. |
| High salary in public sector compared to private sector wages makes it attractive for all people, irrespective of them having a spirit of public service or not. This may lead to corrupt practices. | The solution lies in moderate pay raises by the future Pay Commission to make public sector less appealing to money minded people and attract intrinsically motivated individuals to contribute to the social good |
Question for practice:
What are the various challenges plaguing the working of the Indian state? Suggest steps that can be taken to tackle them.
