10. On Decentralisation (Panchayats and Municipalities)

1. The Eleventh and Twelfth Schedules of the Constitution should be restructured in a manner that creates a separate fiscal domain for panchayats and municipalities.

2. State panchayat council should be established under the chairmanship of the chief minister.

3. Panchayats and Municipalities should be categorically declared to be 'institutions of self-government’ and exclusive functions be assigned to them. For this purpose, Articles 243-G and 243-W should be suitably amended.

4. The Election Commission of India should have the power to issue directions to the State Election Commission for the discharge of its functions. The State Election Commission should submit its annual or special reports to the Election Commission of India and to the Governor. This requires the amendment of Articles 243-K and 243-ZA.

5. Article 243-E should be amended to the effect that a reasonable opportunity of being heard shall be given to a Panchayat before it is dissolved.

6. To ensure uniformity in the practice relating to audit of accounts, the CAG of India should be empowered to

conduct the audit or lay down accounting standards for Panchayats.

7. Whenever a Municipality is superseded, a report stating the grounds for such dissolution should be placed before the State Legislature.

8. All provisions regarding qualifications and disqualifications for elections to local authorities should be consolidated in a single law.

9. The functions of delimitation, reservation and rotation of seats should be vested in a Delimitation Commission and not in the State Election Commission.

10. The concept of a distinct and separate tax domain for municipalities should be recognized.