1.Constitution of the 2nd ARC

The Government of India constituted the Second Administrative Reforms Commission in 2005 under the chairmanship of Veerappa Moily.

It was tasked with proposing systemic reforms to make governance more efficient, transparent, and people-centric.

2.Why a Report on Local Governance?

Decentralization is enshrined in the 73rd and 74th Constitutional Amendments, which created a constitutional framework for Panchayati Raj Institutions (PRIs) and Urban Local Bodies (ULBs).

Despite this, local governments often face limited autonomy, funding constraints, capacity gaps, and inadequate devolution of functions.

The 2nd ARC recognized the need for robust local governance to deliver essential services effectively, ensure accountability, and facilitate grassroots democracy.