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2nd ARC Report UPSC Mains: Key Recommendations & Summary

Sep, 2025

4 min read

The Second Administrative Reforms Commission (2nd ARC), set up in 2005, produced 15 reports between 2005 and 2009. It offers key recommendations on governance, ethics, e-governance, and disaster management to aid UPSC preparation.

What is the Second Administrative Reforms Commission (2nd ARC)?

The Second Administrative Reforms Commission (2nd ARC) was set up by the Government of India to improve the public administration system. It was constituted on 31 August 2005 (as a Commission of Inquiry) under the Chairmanship of Shri Veerappa Moily. Over four years, the 2nd ARC submitted 15 reports on various governance themes (from Right to Information to State and District Administration).

Key Facts:

  • Chairperson: Shri Veerappa Moily (former Union Minister).
  • Members: Included experts like Shri V. Ramachandran, Dr A.P. Mukherjee, Dr A.H. Kalro, Dr Jayaprakash Narayan, and Smt. Vineeta Rai (Member Secretary).
  • Objective: To prepare a detailed blueprint for revamping India’s public administration, aiming for transparency, accountability, and efficiency.
  • Total Reports: 15 reports presented to the Government(These cover topics like RTI, ethics, e-governance, local governance, etc.).
  • Focus Areas: Major themes included good governance, citizen-centric administration, bureaucratic reform, local government empowerment, disaster/crisis management, and financial management.

2nd ARC Reports Summary for UPSC Mains

The Second Administrative Reforms Commission (2005–2009) gave 15 reports with key suggestions to improve governance. Below is a concise summary of the main themes and suggestions in each report.

Report 1: Right to Information-Master Key to Good Governance

  • Transparency: Presents the RTI Act (2005) as a “master key to good governance,” shifting administration from secrecy to openness.
  • Fighting Corruption: Highlights RTI as a powerful tool for citizens to hold government accountable and curb corruption.
  • Broad Coverage: Recommends applying RTI across all branches of government (executive, legislature, judiciary) and building capacity (like e-governance) so information is accessible.
  • Practical Reforms: Lays out steps (e.g., repealing outdated secrecy laws, proactive disclosures) to create a new era of accountability and public vigilance.

Report 2: Unlocking Human Capital: Entitlements and Governance

  • Social Safety Net: Focuses on MGNREGA (rural job guarantee) and other welfare schemes to unlock human capital by ensuring people get promised benefits.
  • Guaranteed Reach: Stresses that these entitlement programs must reach every eligible citizen, providing guaranteed work or income support (a basic safety net).
  • Improved Outcomes: Calls for better monitoring of results – so schemes actually reduce poverty and improve livelihoods.
  • Convergence of Programs: Advocates linking related government schemes (like health, education, and sanitation) so they work together for people’s welfare.

Report 3: Crisis Management (Disaster Management)

  • Disaster Preparedness: Urges building robust disaster-response systems-early warning, risk reduction, and emergency plans-to move “from despair to hope” when crises strike.
  • Coordinated Response: Recommends clear coordination among agencies (police, health, emergency services) and communities so relief efforts are fast and organised.
  • Community Role: Emphasises training local officials and citizens in first aid, evacuation, and crisis drills to reduce panic and save lives.
  • Legal & Policy Framework: Suggests updating laws and policies (e.g., for relief funds, rehabilitation) to speed up aid and long-term recovery.

Report 4: Ethics in Governance

  • Moral Foundations: Stresses that good governance rests on strong moral values and integrity (it even quotes Gandhi and world philosophers).
  • Clear Codes of Conduct: Recommends simple, direct ethical codes for public servants (rules so clear they could “fit in a coat pocket”) to guide right conduct.
  • Remove Corrupt Incentives: Calls for eliminating all rules or procedures that encourage corruption, and restructuring incentives so that corrupt acts become high-risk and low-reward.
  • High Probity Standards: Argues that officials should meet very high standards of honesty (not only avoiding crime but acting with propriety).
  • Transparency & Accountability: Aims to make public administration more transparent and citizen-sensitive, for example, through stronger internal audits and encouraging whistleblowing.

Report 5: Public Order

  • Law-and-Order Reforms: Focuses on maintaining public peace and justice for all (hence the title “Justice for each… Peace for all”).
  • Modernising Police: Recommends updating police laws, better training, technology (crime labs, e-records), and community policing to improve safety.
  • Human Rights in Policing: Stresses accountability (e.g., independent inquiries into police misconduct) so citizens trust security forces.
  • Coordination for Peace: Encourages close coordination between police, judiciary, and local communities to handle riots, protests, or communal conflicts peacefully.

Report 6: Local Governance

  • Empowering Local Bodies: Urges giving more powers, funds, and functions to Panchayats (village councils) and urban local bodies, making them the core of development.
  • Citizen Participation: Recommends involving Gram Sabhas and Ward Committees (local citizen groups) in planning and monitoring local projects, to make governance responsive.
  • Capacity Building: Calls for training local officials and elected leaders in management and accounting so they can handle new responsibilities well.
  • Integrated Planning: Advocates better linkages between village, city, and state plans so that grassroots needs shape broader development programs.

Report 7: Capacity Building for Conflict Resolution

  • Peaceful Conflict Management: Emphasises training officials in negotiation, dialogue, and mediation (“from friction to fusion”) to resolve social and regional conflicts without force.
  • Building Trust: Encourages dialogue platforms (citizens–administration, community forums) to identify and address grievances early.
  • Psychological & Cultural Aspects: Recommends understanding local cultures and fears during disputes (e.g., in communal areas) and using counsellors or community leaders in peace-building.
  • Flexible Administration: Suggests forming special teams or skills (“conflict management officers”) who are experts in defusing tensions and rebuilding trust.

Report 8: Combating Terrorism - Protecting by Righteousness

  • Holistic Approach: Frames terrorism as not just a law-and-order issue but one needing righteous action – addressing root causes like alienation or injustice.
  • Security Measures: Calls for stronger intelligence sharing, better bomb disposal, and emergency response to reduce terror threats.
  • Legal Framework: Recommends reviewing and updating anti-terror laws for clarity and effectiveness, while protecting citizens’ rights.
  • Community & Ideology: Emphasises community engagement to counter extremist ideologies (e.g., educational campaigns, integrating marginal groups) and cutting off local support for terrorists.

Report 9: Social Capital (Communitarianism)

  • Community Empowerment: Stresses that strong community networks and voluntary groups (social capital) are key to development.
  • Inclusive Development: Advocates partnerships with NGOs, cooperatives, and local clubs so citizens actively work with the government on projects (health, education, etc.).
  • Values & Trust: Emphasises common values (compassion, cooperation) and trust-building measures (transparency) in society for social harmony.
  • Public-Private People Partnerships: Suggests involving civil society in policy-making (like in school or hospital committees) to make services more community-driven.

Report 10: Refurbishing of Personnel Administration-Scaling New Heights

  • Reforming Bureaucracy: Recommends overhauling civil services, merit-based appointments, transparent promotions, and transfers to motivate capable officers.
  • Performance Orientation: Calls for performance appraisal systems (Karkun Diaries, 360° feedback) so officials are judged by results, not just tenure.
  • New Roles & Rewards: Suggests lateral entry of experts (from private sector, academia) and special incentives (deputation chances, awards) to attract talent to government.
  • Career Flexibility: Proposes flexible career paths and training opportunities (short courses, foreign study) to keep the bureaucracy skilled and updated.

Report 11: e-Governance

  • Digital India Push: Promotes the use of technology for efficient governance, online services, digital records, and e-office systems to cut delays.
  • Citizen-Centric Services: Recommends one-stop e-portals for citizens (payments, certificates, grievances) so people can interact with the government online.
  • Capacity & Infrastructure: Calls for training staff in IT skills and improving internet connectivity in government offices, especially in rural areas.
  • Legal & Security: Advises on a strong legal framework for electronic records and data security, to build trust in e-services.

Report 12: Citizen-Centric Administration

  • Responsive Services: Emphasises making administration work for the people – for example, Citizen Charters and right-to-service laws so officials meet promised timelines.
  • Grievance Redressal: Advocates easy complaint systems (like service delivery helplines, online portals) where citizens can track and resolve problems with bureaucracy.
  • Public Outreach: Recommends regular social audits and feedback (like public hearings) to see if government programs meet people’s needs.
  • Simplicity & Decentralisation: Suggests simplifying procedures (fewer signatures, transparent forms) and decentralising decisions so local governments can solve local problems faster.

Report 13: Organisational structure of the Government of India

  • Ministry Rationalisation: Calls for reviewing government departments to eliminate overlaps – merging smaller ministries and reducing layers for clear accountability.
  • Empowered Secretaries: Recommends giving more decision-making power to senior civil servants (with fixed tenures) so policies are carried out effectively.
  • Inter-Ministerial Coordination: Suggests regular joint secretaries’ meetings and improved protocols so related ministries (e.g., agriculture and water) work together.
  • Periodic Reviews: Advises setting up a commission to periodically review and realign the organisational structure as national priorities change.

Report 14: Financial Management Systems

  • Budget Reform: Urges modernising budgeting (medium-term frameworks, zero-based budgeting) to improve fiscal discipline and transparency.
  • Accounting & Audit: Calls for uniform accrual-based accounting in all departments and a stronger audit system (like public accounts committees) for financial accountability.
  • Use of Technology: Recommends e-procurement and online treasury systems to minimise leakages and speed up payments.
  • Expenditure Control: Advocates stricter monitoring of government spending (expenditure tracking dashboards) and training finance staff in states and districts.

Report 15: State and District Administration

  • Empowering Districts: Suggests refining the District Collector’s role (as nodal development officer) with clear responsibilities and resources so that districts deliver effectively.
  • Devolution to States: Encourages states to delegate more powers to local levels (district magistrates, state civil services) for quicker governance.
  • Capacity Building: Recommends training and norms (service rules, conduct rules) specifically for state and district officials to improve efficiency.
  • Integrated Administration: Proposes better planning teams at the district level (involving multiple departments) and stronger monitoring to ensure state programs reach the grassroots.

First Administrative Reforms Commission (1st ARC)

 

The First Administrative Reforms Commission was established in January 1966 to examine and reform India's public administration system, making it more efficient, accountable, and responsive to citizens' needs.

 

Key Features:

  • Established: January 5, 1966, under the Ministry of Home Affairs.

  • Initial Chairman: Morarji Desai (later succeeded by K. Hanumanthaiah).

  • Members: H.C. Mathur, G.S. Pathak, H.V. Kamath, and V. Shankar (Member Secretary).

  • Duration: 1966-1970 (dissolved in mid-1970s).

  • Total Output: 20 reports with 537 major recommendations.

Main Areas of Focus:

  • Government machinery and procedures reform.

  • Centre-State relations improvement.

  • Financial, personnel, and economic administration.

  • Planning systems at all levels.

  • State and district administration strengthening.

  • Citizen grievance redressal mechanisms.

Also read: Comptroller and Auditor General of India (CAG) – Complete UPSC Notes

UPSC Mains Practice Question

Critically examine the key recommendations of the Second Administrative Reforms Commission with reference to citizen-centric administration and e-governance. What challenges remain in their implementation?

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Conclusion

The 2nd ARC gives a clear roadmap to improve India’s administration. Its 15 reports have shaped reforms in transparency, service delivery, and efficiency. For UPSC students, these reports are a ready guide to understand governance and public policy. Revising them helps in writing better answers on administrative reforms. 

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