Administrative Reforms Commission's reports are known as ARC Reports. The Second ARC (2005) drew up a thorough design for reforming the government's administrative system. It presented the government with 15 reports on topics such as RTI, ethics in governance, local governance, terrorism, public administration, e-governance, and financial management. 

This article explains the Second ARC Report and its recommendations of the committee are important for UPSC IAS exam preparation.

What is the ARC Report?

• The Administrative Reforms Commission's reports are known as ARC Reports. 
• The first ARC was established in 1966 to study the country's governmental administration and propose reform and reorganisation proposals. 
• The Govt of India set up the Commission to prepare a detailed blueprint for revamping the public administration system.
• It was given a mandate to suggest measures to achieve a proactive, responsive, accountable, sustainable and efficient administration for the country at all levels of government
• It presented the government with 15 reports on topics such as RTI, ethics in governance, local governance, terrorism, public administration, e-governance, and financial management.

Role of ARC

The bureaucracy's inability in dealing with developmental difficulties was evident early on in India's independence. As a result, he felt compelled to create.a new perspective on administration in all aspects –As a result, in 1966, the 1st ARC was established.

• Experimental phase (1970-1984)
• Transitional phase (1984-1991)
• Reformist phase (1991-1995)
• Mainstreaming phase (1996- Present)

Reforms Recommended by 2nd ARC

Recommendations of 2nd ARC fall into two group

• 1st – changes for administrative structures/processes/techniques
• 2nd set – a number of issues to be examined by Govt for implementation of suggested changes need strong political will and sustained political guidance at the highest level
• State Information Commission (1st Report)
• NREGA- Payment of wages thru Bank and Post office (2nd)
• Fund should be transferred directly to District(2nd)
• District Disaster Management Plan – Long term mitigation Plan, Emergency Response Plan, etc.. (3rd)
• Lokayukta(reinforced), Citizens’ Charter, Ombudsman for local bodies, etc.. (4th)
• MIPUI AW (Centralized Public Grievances Redressal Mechanism) (4th & 12th )
• Social Audit (4th)
• Corporate Social Responsibility (9th Report)
• G2C, CSC , SWAN (promotion of e-goverance) – (11th Report)
• Effective Citizen’s Charter & Lok Adalat -12th Report
• Result Framework Documents (RFD) -12th Rep

1st Report (RTI)

• The Official Secret Act, 1923 should be repealed
• Any person having official secret but fails to take care must be guilty of an offence
• Governmental privilege in Evidence (Sec 123 of Indian Evidence Act, 1872 should be amended
• Oath of Secrecy
• Exempted Organization (Armed Forces)
• Central Civil Services (Conduct) Rules,
• Manual of Office Procedures
• Constitution of SIC

2nd Report (Unlocking Human Capital-NREGA)

• Guaranteeing Reach
• Guaranteeing Outcomes
• Ensuring Convergence
• Expanding the scheme
• Fixing Wage rates
• Financial Management System
• Mode of Payment to Workers
• Role of Banks and Post Offices in fund flow
• Use of IT and Monitoring (A) and many more

3rd Report (Crisis Management: From despair to Hope)

• Separate provision in the Constitution for Disaster
• State Govt. should handle Crisis Management and Union Government play a supportive role.
• No separate ministry/department at the national/state level. However, we have in our State
• Empowering Relief Commissioners
• Institutional support and use of IT (GIS) for solution and prevention
• Disaster Management should be introduced as a subject
• National Policy on Disaster Management
• Awareness campaign and Disaster Management Plan
• Early Warning system

4th Report (Ethics in Governance):

• Reform of political funding (Action not needed)
• Tightening of Anti-defection law
• Disqualification of persons wt chargesheet
• Chief Election Commissioners/Commissioners-selection should be done by collegiums
• Expediting Disposal of Election Petitions (Special Election Tribunals) (Not Accepted)
• Grounds of disqualification for membership
• Ethical framework for Ministers (duplicacy of Code of Conduct)
• PM and CM should shoulder responsibility in ensuring Code of Ethics
• Office of Ethics Commissioner suggested
• Office of Profit
• Public Service Values for all public servants should be defined
• National Judicial Council
• Sanction for prosecution (NA)
• Protection to whistle-blowers
• Article 310 & 311 should be repealed (NA)
• LokPal (A-nn) & Lokayukta (A) (1st ARC-reinforcement)

5th (Public Order) is yet to be considered by the Government

6th (Local Governance) seems to be out of context for our State.

7th Report (Capacity Building for conflict resolution)

• New Land Acquisition Act
• SEZ should not be located in prime agri. Land
• Issues relating to Tribal areas
• Water related issues
• Capacity Building in Administration in the North East

8th Report (Combating Terrorism) is being processed/implemented by Ministry of Home Affairs.

9th Report (Social Capital-A shared destiny)

• New Legal Framework for Charities in India
• Corporate Social Responsibility
• Accreditation of Voluntary Organisations (National Accreditation Council
• Regulation of Foreign Contribution (Bill needs to be3 amended)
• SHGs movement need to be enhanced in the rural areas and also to be extended to the urban and semi-urban areas
• Integrated Social Policy

10th Report (Refurbishing of Personnel Administration-Scaling new heights) – being considered by the Government

• Setting right the asymmetry of power
• Insulating civil servants from undue political interference
• Professionalisation with stability of tenure and competition
• Citizen-centric administration
• Innovative and effective mechanisms need to be put in place to protect public money, guarantee intended outcomes and enforce accountability.
• Promoting public service values and ethics.

11th Report (Promoting e-Governance-The smart way forward)

• Building a congenial environment
• Identification of e-Governance Projects and Prioritization – {2- 3% of Plan budget for this}
• Business Process Re-engineering
• Capacity Building and Creating Awareness
• Monitoring and Implementation
• Common Support Infrastructure (SDC, SWAN, CSCs etc..)
• Mission Mode Projects (A)& fr Land Records
• Passport & Visa, Unique National ID
• Legal Framework for e-Governance
• Knowledge management

12th Report (Citizen Centric Administration-The Heart of Governance)

• Functions of Government
• Making Citizens Charter Effective
• The ARC Seven Step Model for Citizen Centricity
• Participation of Women and the Physically Challenged
• Delegation
• Evolving an Effective Public Grievances Redressal System
• Analysis and Identification of Grievance Prone Areas
• Simplifying Internal Procedures
• Monitoring and Evaluation
• Rationalizing Procedures – Issue of Driving Licenses, registration of Births and Deaths
• Building Licenses and Completion Certificate

13th Report (Organizational Structure of Government of India)

• Core principles of Reforming the Structure of the Government
• Government at all levels should be guided by the principle of subsidiarity
• Rationalizing the functions of the Government
• Rationalizing and Reorganizing the Ministries and Departments
• Recasting the Allocation of Business Rules
• Creation of Effective Executive Agencies
• Coordination Mechanism

14th Report (Strengthening Financial Management Systems)

• Unrealistic Budget Estimates
• Delay in Implementation of Projects
• Skewed Expenditure Pattern-Rush of Expenditure towards the end of the financial year
• Inadequate adherence to the Multi-year Perspective and Missing Line of Sight between Plan and budget
• Emphasis on Meeting Budgetary Financial Targets rather than on Outputs and Outcomes
• Irrational ‘Plan-Non-Plan’ Distinction leads to Inefficiency in resource Utilization..
• Capacity Building

15th Report (State and District Administration)

• Size of the Council of Ministers needs to be reduced (
• Rationalizing the Number of Secretarial Departments
• Executive Agencies>Departments
• Civil Services Law > States are advised to take similar action after the proposed act is passed by Central Government
• Regional Level Administration
• Vigilance Commission/Lokayukta
• State Public Service Commission
• Redefining Collector’s Role and modernizing its office

ARC – Administrative reforms Commission - Background

• The Administrative Reforms Commission (ARC) was established by the Indian government to study the public administration system and make recommendations for improvement. The Commission's reports are known as the ARC reports.
• Morarji Desai led the first ARC (1966), which was later succeeded by K. Hanumanthaiah.
• Veerappa Moily chaired the second ARC, which was established in 2005.

Conclusion

The ARC Reports are important in completing the UPSC Syllabus, and IAS candidates should study the following points The committee's recommendations are crucial, and candidates should concentrate on them during their mains preparation. Another great feature of the reports is that they include numerous case studies and pertinent quotations that you can use in your UPSC civil services mains test responses.

FAQs

Q1: What is the Second ARC Report?

Q2: How many reports were submitted by the Second ARC?

Q3: What are some of the key recommendations of the Second ARC?

Q4: How does the Second ARC Report promote e-governance?

Q5: What was the focus of the Second ARC’s report on ethics in governance?

MCQs

1. Who chaired the Second Administrative Reforms Commission (ARC)?

a) Dr. Manmohan Singh

b) Veerappa Moily

c) Suresh Tendulkar

d) Y. V. Reddy

2. How many reports were submitted by the Second ARC?

a) 10

b) 12

c) 15

d) 20

3. Which of the following areas was NOT covered by the Second ARC?

a) E-governance

b) Crisis management

c) Monetary policy

d) Civil service reforms

4. What was the primary focus of the Second ARC’s report on e-governance?

a) Privatization of public services

b) Enhancing transparency and service delivery

c) Increasing foreign investments

d) Creating a digital currency

5. Which institution did the Second ARC recommend strengthening to curb corruption?

a) Reserve Bank of India

b) National Human Rights Commission

c) Central Vigilance Commission

d) Election Commission of India

GS Mains Questions and Model Answers

Q1. Discuss the significance of the Second Administrative Reforms Commission (ARC) in the context of improving public administration in India.

Answer: The Second Administrative Reforms Commission (ARC) was established in 2005 with the aim of reviewing and suggesting reforms to improve public administration in India. Chaired by Veerappa Moily, the Commission submitted 15 reports that covered a wide range of issues, including e-governance, police reforms, crisis management, and ethics in governance. One of the most important contributions of the Second ARC was its focus on transparency and accountability through the promotion of e-governance. The report highlighted the need to adopt digital technologies for efficient service delivery, reduction of corruption, and simplification of administrative processes. Another significant aspect was the emphasis on ethics in governance, recommending the establishment of a Code of Ethics for civil servants and the strengthening of institutions like the Central Vigilance Commission (CVC). The Second ARC’s recommendations have provided a roadmap for future administrative reforms aimed at creating a more transparent, responsive, and accountable governance system in India.

Q2. Evaluate the role of e-governance as recommended by the Second ARC in improving transparency and accountability in public administration.

Answer: E-governance, as recommended by the Second ARC, has been pivotal in improving transparency and accountability in public administration. The report emphasized the use of digital technologies to make governance more accessible and transparent to citizens. By promoting online service delivery, reducing paperwork, and implementing real-time tracking of public services, e-governance has contributed to reducing corruption and enhancing the efficiency of public administration. The ARC’s recommendation of initiatives like public grievance portals, digital record-keeping, and e-tendering has made government operations more transparent and inclusive. It also highlighted the importance of training civil servants in using digital tools and fostering a culture of innovation. The implementation of these recommendations has resulted in the establishment of platforms like the Government e-Marketplace (GeM) and DigiLocker, ensuring that governance processes are more citizen-centric and accountable.

Q3. Analyze the significance of the Second ARC’s recommendations on ethics in governance, and how these recommendations aim to curb corruption in public administration.

Answer: The Second ARC’s recommendations on ethics in governance are crucial for promoting integrity, transparency, and accountability in public administration. One of the key recommendations was the introduction of a Code of Ethics for civil servants, aimed at ensuring that public officials adhere to high moral and ethical standards. The ARC also recommended strengthening institutions like the Central Vigilance Commission (CVC) and establishing integrity pacts to monitor government contracts and prevent corruption. Additionally, the report called for greater disclosure of assets by public officials and the adoption of whistleblower protection mechanisms to encourage the reporting of corrupt practices. These measures are designed to create a culture of ethical governance, where public officials are held accountable for their actions. The report also emphasized transparency in decision-making processes and the need for public participation in governance. By implementing these recommendations, the government can significantly reduce corruption and ensure that public administration functions in the best interest of the citizens.

Previous Year Questions on Second Arc Report

1. UPSC CSE Mains 2018

Question. Discuss the importance of e-governance as highlighted by the Second ARC in ensuring good governance in India.

Answer: The Second ARC placed significant emphasis on e-governance as a tool for ensuring good governance in India. E-governance refers to the use of information and communication technologies (ICT) to improve the delivery of government services, enhance transparency, and increase accountability. The ARC highlighted that by reducing the reliance on physical paperwork and manual processes, e-governance could minimize opportunities for corruption and bureaucratic inefficiencies. Platforms like e-tendering and online grievance redressal systems make it easier for citizens to interact with the government, track the status of services, and ensure that their concerns are addressed in a timely manner. By promoting transparency and real-time access to government services, e-governance has the potential to transform the way the public administration functions. The Second ARC's vision for e-governance has led to the development of digital platforms like Digital India and DigiLocker, which have improved the quality of governance and made it more citizen-centric.

2. UPSC CSE Mains 2019

Question. How do the recommendations of the Second ARC on ethics in governance help in strengthening the integrity of public administration?

Answer: The Second ARC’s recommendations on ethics in governance play a critical role in strengthening the integrity of public administration in India. By proposing the introduction of a Code of Ethics for civil servants, the report aimed to ensure that public officials adhere to ethical standards and display integrity in their professional conduct. The ARC also recommended the creation of integrity pacts for government contracts, which would make government procurement processes more transparent and free from corrupt practices. Another key recommendation was the strengthening of the Central Vigilance Commission (CVC) to enhance its role in monitoring and investigating corruption cases. Additionally, the ARC called for the protection of whistleblowers, ensuring that individuals who expose corrupt practices are safeguarded against retaliation. By fostering a culture of transparency, accountability, and **ethical conduct**, these recommendations aim to reduce corruption and build public trust in government institutions, thus enhancing the overall integrity of public administration.