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1st ARC Report, Objectives, Recommendations, Impacts

02-12-2024

10:33 AM

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1 min read

Prelims: Indian Polity & Governance – Constitution, Political System, Panchayati Raj, Public Policy, Rights Issues, etc.

Mains: Government policies and interventions for development in various sectors and issues arising out of their design and implementation.

The First Administrative Reforms Commission (ARC), established in 1966 under Morarji Desai, aimed to improve India’s public administration. It focused on enhancing governance structures, streamlining administrative processes, and fostering socio-economic development. The ARC’s recommendations, spread across 537 proposals, included recruitment, training, financial management, grievance redressal reforms, and public sector accountability. 

The implementation, overseen by a core group and a Group of Ministers, resulted in 118 recommendations being accepted. Its impact included recruitment reforms, enhanced civil service training, improved grievance mechanisms, and the promotion of e-governance, strengthening India's administrative framework.

1st ARC Report Overview 

The First Administrative Reforms Commission (ARC) was established as a Commission of Inquiry in January 1966, under the chairmanship of Morarji Desai, who later became the Deputy Prime Minister of India. Upon his appointment as Deputy Prime Minister, Shri K. Hanumanthaiya succeeded him as the Chairman.

  • Commission Members: H.C. Mathur, G.S. Pathak, H.V. Kamath, and V. Shankar, 
  • Key Areas of Study: These groups undertook in-depth studies of specific agencies, including Customs & Central Excise, Posts & Telegraphs, Life Insurance, Income Tax, and Police. 

1st ARC Report Objectives

The First ARC aimed to identify and resolve inefficiencies in the administrative system. The objectives were focused on improving governance structures, making administrative processes more effective, and fostering socioeconomic development through systemic reforms.

  • Evaluation of Government Machinery and Procedures: The commission aimed to assess government operations, identify inefficiencies, and propose changes to streamline processes and improve responsiveness to citizens.
  • Improvement in Financial, Personnel, and Economic Administration: By reforming budgeting, accounting, and auditing, enhancing recruitment and training, and addressing complexities in economic and public sector management.
  • Addressing Centre-State Relations: The commission aimed to enhance coordination and clarify jurisdiction between the central and state governments for more effective governance and reduced tensions.

The commission emphasized the need for specialised administrative functions and proposed reforms to modernize procedures and equip officials to handle evolving governance challenges.

1st ARC Report Recommendations

The First Administrative Reforms Commission (1966) aimed to improve India’s public administration through 537 major recommendations across 20 reports. The following are the key recommendations: 

  • Unified Grading Structure: A standardized grading system based on qualifications and responsibilities was recommended to ensure transparency and fairness in promotions and career progression within civil services.
  • Recruitment Reforms: The ARC proposed a unified competitive examination for Class I services, with the age limit raised to 26 years while discontinuing direct recruitment for Class II services to streamline the process. 
    • It also suggested objective-type tests for clerical positions to simplify recruitment and advocated for lateral entry into senior technical posts to bring in specialized expertise.
  • Training and Development: A national policy for civil service training was recommended to enhance the skills and competencies of public servants, ensuring they are better equipped for administrative challenges.
  • Promotion Guidelines: Clear guidelines were proposed to ensure that promotions were merit-based, prioritizing performance over seniority to encourage efficiency.
  • Conduct and Discipline: The commission called for reforms in disciplinary proceedings and the establishment of Civil Service Tribunals to address grievances effectively and ensure accountability.
  • Financial Administration: Delegation of financial and administrative powers to lower levels was emphasized to improve decision-making, along with the adoption of performance-based budgeting linked to outcomes for better resource management.
  • Citizen Grievance Redressal Mechanisms: The ARC highlighted the need for effective channels to address public grievances, fostering greater accountability and trust in government institutions.
  • Inter-Governmental Relations: Recommendations were made to clarify roles and responsibilities between the central and state governments, promoting better coordination and smoother governance.
  • State-Level Administration Improvements: Strengthening state-level administration through empowered local governance structures, such as Panchayati Raj Institutions, was suggested to improve service delivery and citizen engagement.
  • Economic Administration: The commission proposed reforms to enhance the administrative framework for implementing economic policies efficiently across various levels of governance.
  • Public Sector Undertakings (PSUs): To improve efficiency and accountability, the ARC recommended the introduction of performance evaluation systems for public sector enterprises.
  • Planning Mechanisms: Integrated planning processes at all levels were advocated to ensure alignment with national objectives and achieve better governance outcomes.

1st ARC Report Implementation

The First ARC's recommendations underwent evaluation by ministries, with the Core Group on Administrative Reforms(CGAR) strategizing implementation and the Group of Ministers ensuring alignment with priorities. A 1977 Parliamentary report categorized them as accepted, pending, or referred, ensuring transparency.

  • Out of 537 recommendations, 118 were implemented, 228 were rejected, and 21 were referred for deliberation, focusing on recruitment, training, grievance redressal, and financial administration.

1st ARC Report Impacts

The ARC's impact included reforms in public administration, recruitment, civil service training, grievance redressal, performance-based budgeting, e-governance, PSU accountability, and center-state coordination.

  • Improvement in Public Administration: The ARC's recommendations reformed India's public administration system, fostering efficiency, integrity, and accountability to align with national development goals.
  • Establishment of Recruitment Reforms: The introduction of a unified competitive examination for Class I civil services streamlined recruitment and improved meritocracy within civil services.
  • Training and Capacity Building: The ARC emphasized civil service training, producing better-prepared civil servants.
  • Accountability and Responsiveness: The establishment of grievance redressal cells enhanced accountability and responsiveness, enabling citizens to voice concerns and receive timely resolutions.
  • Financial Management Reforms: The ARC’s focus on transparency and efficiency introduced performance-based budgeting systems, linking funding to outcomes for better financial management.

1st ARC Report FAQs 

Q1. What is the full form of ARC?

Ans. The full form of ARC is the Administrative Reforms Commission.

Q2. When was the first ARC report published?

Ans. The first ARC report was published in 1966.

Q3. When was the 2nd ARC report published?

Ans. The Second Administrative Reforms Commission (ARC), constituted on August 31, 2005, submitted 15 reports on governance reforms between June 2006 and May 2009.

Q4. Who is the chairman of the 2nd ARC report?

Ans. The chairman of the 2nd ARC report is Veerappa Moily.

Q5. How many reports are there in the 1st ARC?

Ans. The First Administrative Reforms Commission (ARC) submitted 20 reports with 537 major recommendations to reform India's public administration before its dissolution in the mid-1970s.