Summary: Sylhet 20 8 12 6 1 1 4 6. Cachar 20 8 12 6 1 1 4 191 CONSTITUTIONAL STRUCTURE 8 Organization of Local Self-Government: The scheme of local government in Assam is primarily based on the All India principles laid down by someone unknown. But over the years there has been a good deal of alteration and elaboration. The first point to be noted is that there are three kinds of local boards corresponding to different levels of administration : (a) the district boards, each of which covers the District as a whole ; (b) sub-divisional local boards which cover the area of the subdivision; (c) local boards for development unions. Each of these boards is a corporate body with perpetual succession and a common seal, and has the power to acquire, hold and transfer property, conduct suits and to do all other acts legally possible for a corporate body. Second, these boards are composed of both official and non-official members. The number of official members is only three or four; the rest are elected by different consti- tuencies. In the district boards, the non-official members are of two kinds; some are elected by the rate-payers, some are nominated by the Government of Assam. The nominated members are always in a minority in the board. The term of office of the members is three years. 192historicAL BACKGROUND FINANCIAL POSITION FINANCIAL POSITION OF THE DISTRICT BOARDS The Revenue of the District Boards consists of (a) rent of public lands (b) fees and fines levied for the local hoards ; (c) surplus revenue from the local boards ; (d) grants in aid from Government for local purposes, and (e) other minor sources. The ordinary expendit jre of the District Boards is on public works (other than roads), education, water supply, sanitation, medical relief, etc. Investing money is nothing but lendinguthority is given to local boards under the Assam Local Self-Government Act they may sink this money in Government securities or in debentures issued by the Assam Financial Corporation, which are guaranteed by the government of Assam. The Union Boards derive their revenue from a house tax and licence fees, and their expenditure includes sanitation, water supply, and primary education. The income collected from the house tax amounts to about Rs. 1,10,000 a year. The expenditure has increased from Rs. 1,06,000 in 1917 to Rs. 1,47,000 in 1919. 200FINANCIAL POSITION IN 1941 Examining the financial position of the panchayats, it is observed that they were granted powers to incur expenditure when such expenditure was approved by the Deputy Commissioner. These local boards would ordinarily function within a budget which would set out the income and expenditure for each year. The income of the panchayats chiefly consisted of local shares of certain fees and taxes which the Deputy Commissioners could fix under the Assam Local Self-Government Act. The Com- missioners had little difficulty in enforcing this provision as the Gov- ernment was able to play a role in keeping the panchayats within the limits of their resources. The funds could be raised for a year by way of the licences issued with sundry shahis. Local boards which approached the Commissioneis for funds to finance works of public utility were granted loans repayable in fifteen or twenty years. As for the “precept”, it was applied to even small areas where it was conducive to the welfare of the people. The control of the funds was deposited with the Revenue and Expenditure Department. The panchayats were also empowered to issue licences and permissions for erecting buildings and carrying on trades. They had control over the revenue obtained by imposing a tax in the local areas. The Deputy Commissioners had the overall authority in financial matters subject to the advice procured from other officials. The view of everyone was taken into account before reaching any decision. The then Chairman of the Committee, Mr. Kerr, argued that the panchayats should have their power increased so that this new venture would expand and flourish under their guidance. The Committee members held meetings regularly where they discussed ways and means to improve the condition of the panchayats. In 1917, there was a sudden plunge in the financial health of the local bodies as the Assam Government, adopted the Resolution of the Provincial Government for levying taxes with deductions for local self-government. This measure significantly contributed to the revenue of the localities but it did not last as a permanent arrangement for finance and taxation.201FINANCIAL POSITION IN 1950 From 1950 to 1960, the evolution of local self-government was remarkable. The district boards in 1950 were granted administrative powers to take control in areas where supervision by other go- vernment departments was required. The funds they had to work with were raised through licences, shahis, and the funds provided by the government. The panchayats were the focal points of grassroots administration. These bodies were vested with inherent powers and responsibilities conducive to the overall development of the rural areas. By 1955, the district boards were primarily allocated a share of the income tax collected in order to meet their local expenses. This revenue sharing maneuvre played an instrumental role in reinforcing the financial structure restoring financial discipline within the boards. The panchayats also instituted a system where the budgets of the local bodies were passed before the start of each fiscal year. Thus, a parametric financial system was put in place in the local self-governance entity.202CONCLUSION The evolution of local self-government in Assam over the last hundred years has been marked by significant changes in the overall administrative structure, financial stability and decision-making processes. The development of district boards, sub-divisional local boards, and local boards for development unions has not only empowered the local communities but has also solidified the foundation of grassroots administration. The financial position of these local self-governing bodies has undergone a transformation, from reliance on grants and funds from the government to revenue generation through taxes and licenses. The strategic financial planning and the oversight of expenditure have ensured the effective utilization of resources for public works, education, water supply, sanitation, and medical relief. Moreover, the evolution of the financial structure has led to a paradigm shift in the financial discipline within the local bodies, making them self-reliant and sustainable entities capable of catering to the needs of the local populace. The establishment of a parametric financial system and the sharing of revenue from income tax have further strengthened the financial health of the district boards and panchayats, facilitating their role in rural development and governance. Overall, the journey of local self-government in Assam has been one of resilience, adaptability, and effective governance, setting a precedent for decentralized administration and community-led decision-making processes in the region.