ARC Report – Summary, 1st and 2nd ARC Report UPSC

By BYJU'S Exam Prep

Updated on: November 14th, 2023

ARC Report is published by the Administrative Reforms Commission for public administration, effective governance, and much more. The first ARC was established in 1966, and its published reports are known as the 1st ARC report. On the other side, the second ARC was established in 2005, and its published reports are known as the 2nd ARC reports.

The 2nd ARC report was submitted in 15 reports which suggested reforms in the government’s administrative system. ARC reports comprise a lot of case studies and pertinent quotes that students can utilize while writing answers in the UPSC Mains exam. ARC Report UPSC topic must be covered comprehensively for both Prelims and Mains.

What is ARC Report?

Administrative Reforms Commission (employed by the Government of India) publishes some reports, known as ARC reports. These reports are essential documents for effective governance, public administration, and much more. Primarily, there are two ARC reports, the first ARC report (published by the 1st ARC started in 1966) and the second ARC report (published by the 2nd ARC set up in 2005).

Arc Report UPSC Notes

The 1st ARC Report had provided 537 primary recommendations in about 20 reports before it was winded up in the 1970s. Contrarily, the 2nd ARC published 15 reports enclosing various public administration sectors. Though both the ARC Report recommended effective reforms, the 2nd ARC is considered essential for the study of public administrations. It is also a part of the public administration syllabus for UPSC.

ARC (Administrative Reforms Commission) Report for UPSC

The Government of India has appointed an organization or body known as the Administrative Reforms Commission that provides recommendations for evaluating India’s public administration system. India’s ARC was set up twice.

1st ARC Report

The Indian Government established the first Administrative Reforms Commission on 5 January 1966 under revolution number 40/3/65-AR(P). In the beginning, Morarji Desai managed the ARC, but after he got appointed as India’s Deputy Prime Minister, K. Hanumanthaiah managed it as the chairperson.

  • This ARC declaration described the ARC configuration, the authorization of the commission, and the practices to be ensured.
  • The first ARC was authorized to provide thoughtfulness to certify the premium standards of proficiency and integrity in public services.
  • The ARC was mandated to make public administration the perfect equipment for implementing the Indian Government’s various socioeconomic policies and socio-economic development.
  • It had provided 537 primary recommendations in about 20 reports before it was wound up in the 1970s.

2nd ARC Report

The Government of India founded the 2nd ARC Report on 31 August 2005 under the resolution K-11022/9/2004-RC. It was established to make a comprehensive scheme to revamp the public administration system in India. Initially, Veerappa Moily managed the commission as the chairperson. However, after his resignation in 2009, V. Ramachandran took responsibility as the new chairperson.

The 2nd ARC Report was authorized to propose some effective measures to attain a practical, responsive, responsible, sustainable, and proficient public administration at all the government levels in India. The 2nd Administrative Reforms Commission also published 15 reports encompassing various public administration sectors.

  • The 2nd ARC Report comprised reforms such as the Indian Government’s organizational structure, integrity in governance, Revamping of Personnel Administration, Reinforcement of Financial Management Systems, Local Self-Government, Citizen-centric, Problems in Federal Polity, Promoting e-governance, Crisis Management, RTI, Unlocking Human Capital, and many more.
  • The first-ever report from the 2nd ARC was Right to Information, considered a principal means for Good Governance in India.
  • The Government of India excluded sectors like Military defense, security, and intelligence, etc., and subjects like judicial reforms and relations between central and State governments from the 2nd ARC’s recommendations.

Nevertheless, as the 1st ARC Report, it was also free to contemplate issues from these government sectors or subjects and recommend restructuring.

1st ARC Report

The 1st ARC report included reforms such as Railways, Machinery for Planning, Economic Administration, Treasuries, RBI, Finance, Accounts & Audit, Scientific Departments, Personnel Administration, State Administration, Posts and Telegraphs, Small Scale Sector, and many others.

The 1st ARC excluded detailed inspection of external affairs, defence administration, security and intelligence, railways, etc., and subjects like educational administration because the separate commissions evaluated them. However, the ARC was free to consider issues from these government sectors and recommend reorganization.

2nd ARC Report

The 2nd ARC report made recommendations for reforms in two distinct groups. The first is a change in administration configurations, procedures, and practices. And the other one is a set having various issues that the Government of India needs to evaluate the proposed reforms.

These changes require robust political determination and constant supervision. 2nd ARC Report recommendations include:

  • State Information Commission;
  • Paying wages via post offices or banks (NREGA);
  • The Districts must directly receive the funds;
  • Emergency and long-standing moderation plan for District Disaster Management;
  • Indian Citizens’ Commission, a Supervisory body for local bodies;
  • Resilient Lokayukta and Lok Adalat;
  • Corporate Social Responsibility;
  • Social Audit, MIPUI AW, and encouraging e-governance.

List of 2nd ARC Reports

The 2nd ARC (2005) formulated a comprehensive draft to update the public administrative system. These ARC reports include a lot of information that is useful for the IAS exam covering attributes of public administration, Ethics in civil services, governance, conflict resolution, etc.

Number of ARC Report Based on
1st Report Right to Information: Master Key to Good Governance
2nd Report Unlocking Human Capital: Entitlements and Governance
3rd Report Crisis Management
4th Report Ethics in Governance
5th Report Public Order
6th Report Local Governance
7th Report Capacity Building for Conflict Resolution
8th Report Combating Terrorism – Protecting by Righteousness
9th Report Social Capital-A shared Destiny
10th Report Refurbishing of Personnel Administration &ndash Scaling New Heights
11th Report Promoting e-Governance: The Smart Way Forward
12th Report Citizen-Centric Administration
13th Report The organizational structure of Govt of India
14th Report Strengthening Financial Management Systems
15th Report State and District Administration

2nd ARC Report PDF

We have curated the most important 2nd ARC reports for your convenience. The complete report is available on the Government’s official website, DARPG. Reading the second arc report will be beneficial from the UPSC exam point of view.

List of Important 2nd ARC Report Download PDF Here
2nd ARC Report: 1 PDF Link
2nd ARC Report: 3 PDF Link
2nd ARC Report: 4 PDF Link
2nd ARC Report: 8 PDF Link
2nd ARC Report: 11 PDF Link
2nd ARC Report: 12 PDF Link
2nd ARC Report: 14 PDF Link

2nd ARC Report Summary

The ARC reports, both the 1st and 2nd ARC Reports, are bulky, and getting any information from them becomes pretty complex and time-consuming. As the second ARC report is considered more important, it can be understood with some of its details described in brief.

A good understanding of the 2nd ARC’s 15 reports and their constituents can give insights into the entire report. A concise description of a few essential second ARC reports is given below.

2nd ARC Report – 1 (Right to Information)

The first-ever report published by the 2nd ARC recommended that the official Secret Act’ of 1923 be revoked. The report stated that people who have official secrets and fail to keep them should be declared guilty.

  • Also, section 123 (Governmental privilege in proofs) under the Indian Evidence Act of 1872 should be revised.
  • This section also comprised the Constitution of SIC, Oath of Secrecy, and many more points and reform recommendations.

2nd ARC Report – 2 (Unlocking Human Capital)

This report by the 2nd ARC is also known as NREGA. It includes ARC’s recommendations, such as Ensuring Reach, Outcomes, and Convergence.

  • Also, it states Spreading out the scheme, Protective Wage amounts, and utilizing Information Technology and monitoring.
  • This report also affirms a Financial Management System, the responsibility of post offices and banks for paying workers & fund flow, and many others.

2nd ARC 3rd Report on Disaster Management

This report by ARC comprises recommendations such as a separate and individual establishment in the Indian Constitute for managing Disaster; the Government of states must deal with Crises Management, and the Central Government should be supportive of that.

  • It does not recommend any separate department or ministry for disaster management in the State or Central Government. However, we have in our State.
  • However, it suggests authorizing Relief Commissioners to use IT and support institutions to inhibit and solve disasters.
  • It also introduced disaster Management as a subject, national policy, and Awareness campaigns to enhance crisis management plans. Also, it includes designing early warning systems to warn people about future disasters.

2nd ARC 4th Report on Ethics in Governance

This 2nd ARC report suggests reforming the political funding, intensifying the Anti-defection law, and revoking Articles 310 & 311, National Judicial Council, Office of Ethics.

  • It also proposed defining a service value for all government servants, an ethical background for Ministers, and excluding people with charge sheets.
  • It also included the Prime Minister, and Chief Ministers should take the responsibility to ensure the “Code of Ethics” and many other recommendations.

2nd ARC Report – 7: Capacity Building for Conflict Resolution

This report proposed ways to resolve conflicts, including Contemporary Land Acquisition Act and Capacity Building the North East Administration. It is also recommended not to locate any SEZ in prime agricultural land and focus on water-related and tribal area-related issues.

2nd ARC Report – 8 on Terrorism

With this report, the 2nd ARC recommended measures against terrorism. It suggested setting up a separate statutory Review Committee, special courts, and possession of arms. The report also suggested the participation of Indian citizens, media, and civilians in battling terrorism.

2nd ARC Report 9 on Social Capital (A Shared Destiny)

This report recommended up-to-date Legal Frameworks for Donations and charity work in India, communal social responsibilities, Integrated Social Policy, the establishment of the National Accreditation Council, and the amendment to the Foreign Contribution bill. It also suggested enhancing the existence and movement of Self Help Groups in the country’s rural areas, which must be expanded to the urban areas.

2nd ARC Report 11 – Promoting e-Governance: The Smart Way Forward

In this, the ARC recommended ways to promote and support e-Governance through creating a friendly environment, identifying new e-Governance projects and Prioritizing them, Re- persuading business processes, spreading awareness, building capacity, observing or supervising and implementing.

It also included SWAN, SDC, CSCs, and many other Common Support Infrastructures, lawful frameworks for e-Governance, knowledge management, and many other points.

2nd ARC Report 12: Citizen-Centric Administration

This report comprised reforms for the country’s citizens by focusing administration on citizens.

It included various roles of the Indian Government, ARC’s 7-step standard for Citizen Centricity, Delegation, Supervising and Evaluation, making Licenses and Accomplishment Certificates, and improvising citizen commissions.

The report also focused on women’s and physically challenged involvement, streamlining internal procedures, easing the processes of addressing issues concerning birth or death registration, driving licenses, etc., and developing an efficient Public Grievances Redressal System analyzing & identifying injustice-prone areas across the country.

2nd ARC Report 13 – Organizational Structure of the Indian Government

With this report, the 2nd ARC suggested some fundamental principles for reorganizing the Structure of the Indian Government.

It suggested guiding Central, State, and other levels of Government by the notion of subordinateness, streamlining government functions, restructuring various government departments and ministries, reorganizing the distribution of business protocols, developing efficient Executive Agencies, and implementing Synchronization Mechanisms.

2nd ARC Report – 14: Financial Management System

This ARC report concentrated on impractical Budget Estimations, delays in executing projects, crooked expense patterns, insufficient observance of the multi-year perception, and overlooking a line of sight.

It also underlined fulfilling Budgetary Financial Targets instead of focusing on Outputs or Outcomes and baseless Plan-Non-Plan traits leading to incompetence in resource Utilization.

2nd ARC Report 15 – State and District Administration

This is the last report by the 2nd ARC, recommending the need to minimize the Council of Ministers’ size, adjust Secretarial Department counts, and enhance executive agencies. The report also emphasized civil services law, local-level government, Lokayukta, and many other points focusing on government administrations in states and districts.

How to Read ARC Reports?

The 1st and the 2nd ARC reports include relevant study material for UPSC Mains examination. Students preparing for the exam must check out these reports even if they have not opted for Public Administration as their optional subject.

  • ARC reports are cumbersome and thus aspiring candidates find it tough to read from page to page as they are running short of time and need to cover other important topics of the exam as well;
  • It is advisable that students must at least read the summary of the available 1st and 2nd ARC reports;
  • Every report summarizes the entire content of the report at the end, which aspirants can refer to and save time;
  • To assemble the entire ARC report, you can visit the official Government website of DARPG and download the report for absolutely free;
  • Make sure to read the gist of the reports as these are asked in the General Studies papers of the UPSC exam.


The ARC Report is a critical topic of the Indian Polity subject included under the UPSC syllabus. This topic is comprehensively described in UPSC books and notes. These reports are significant records for all the aspirants, especially those with public administration as an optional subject.

Moreover, UPSC Prelims and Mains exams cover this topic, so for robust preparation, aspirants must have an all-inclusive knowledge of this topic even if they do not have a public administration subject. Additionally, download the Previous Year Question Papers along with the ARC report UPSC notes to practice and revise the topic efficiently.

ARC Report MCQs

UPSC 2019 Question: Which one of the following suggested that the Governor should be an eminent person from outside the State and should be a detached figure without intense political links or should not have taken part in politics in the recent past? Options: Sarkaria Commission (1983), National Commission to Review the Working of the Constitution (2000), First Administrative Reforms Commission (1966), Rajamannar Committee (1969)

Answer: Sarkaria Commission (1983)

Question: Which of the given statements is accurate regarding the ARC? (1) The 2nd ARC has encapsulated the income source for the Panchayati Raj Establishments, (2) The ARC recommended establishing two exceptional authorities entitled ‘Lokpal’ and ‘Lokayukta’ to address citizens’ objections or injustices. Choose the Correct Option: Only A, Only B, A and B both, Neither A nor B

Answer: A and B both

Question: In which Report of the Second Administrative Reforms Commission barriers of Good Governance in India have been identified? A) Ethics in Governance, B) Citizen-Centric Administration: The Heart of Governance, C) Promoting E-Governance, D) Local Governance

Answer: Citizen-Centric Administration: The Heart of Governance

UPSC Notes
Right to Education Act 2009 River System in India
National Human Rights Commission Types of Majorities in Parliament
105 Constitutional Amendment Act Indian Postal Service
Comptroller and Auditor General of India Mahalwari System
Permanent Settlement Article 21 of Indian Constitution
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