Constitutional Framework
Local self-government was given constitutional status by the 73rd and 74th Constitutional Amendment Acts of 1992. These amendments added Part IX (Panchayats) and Part IX-A (Municipalities) to the Constitution and introduced the 11th Schedule (29 subjects for Panchayats) and 12th Schedule (18 functions for Municipalities).
Both amendments received Presidential assent on 20 April 1993 and came into force on:
- 73rd Amendment: 24 April 1993
- 74th Amendment: 1 June 1993
Historical note: Panchayati Raj was first introduced in Nagaur district, Rajasthan on 2 October 1959, followed by Andhra Pradesh. However, it lacked constitutional backing until 1992.
73rd Amendment — Panchayati Raj (Articles 243–243O)
Key Constitutional Provisions
| Article | Subject |
|---|---|
| 243A | Gram Sabha — body of persons registered in the electoral rolls of a village |
| 243B | Constitution of Panchayats — three-tier system |
| 243C | Composition of Panchayats |
| 243D | Reservation of seats (SC/ST/Women) |
| 243E | Duration of Panchayats — 5 years |
| 243F | Disqualifications for membership |
| 243G | Powers, authority, and responsibilities (Article references 11th Schedule) |
| 243H | Powers to impose taxes |
| 243I | State Finance Commission |
| 243K | State Election Commission for superintendence of elections |
| 243L | Application to Union Territories |
| 243M | Exemptions — does not apply to Nagaland, Meghalaya, Mizoram, certain areas in Schedule V and VI |
| 243N | Continuance of existing laws |
| 243O | Bar to interference by courts in electoral matters |
Three-Tier System
| Tier | Body | Level |
|---|---|---|
| Bottom tier | Gram Panchayat (Village Panchayat) | Village |
| Middle tier | Panchayat Samiti (Block/Taluk Panchayat) | Intermediate/Block |
| Top tier | Zilla Parishad (District Panchayat) | District |
Exception: States with population below 20 lakh may not have the intermediate tier (Article 243B(1)).
Gram Sabha (Article 243A)
| Feature | Detail |
|---|---|
| Definition | A body consisting of persons registered in the electoral rolls relating to a village comprised within the area of a Panchayat at the village level |
| Role | Foundation of the Panchayati Raj system — exercises powers and performs functions determined by State Legislature |
| Functions | Approve plans, programmes, and projects for social and economic development; identify beneficiaries of poverty alleviation programmes; social audit of Panchayat accounts |
| Significance | Embodies direct democracy at the grassroots level |
Composition and Election
| Feature | Detail |
|---|---|
| Election | All members at all levels elected by direct election (except Chairpersons of intermediate and district level — State Legislature may provide for indirect election) |
| Chairperson of Gram Panchayat | Elected in the manner prescribed by State Legislature |
| Chairperson of intermediate/district | State Legislature may provide for election by elected members from among themselves |
| Representation of MPs/MLAs | State Legislature may provide for representation of MPs, MLAs, and MLCs in Panchayats above the village level — with or without voting rights |
Reservation (Article 243D)
| Category | Reservation |
|---|---|
| Scheduled Castes (SC) | Seats reserved in proportion to their population in the Panchayat area |
| Scheduled Tribes (ST) | Seats reserved in proportion to their population in the Panchayat area |
| Women | Not less than 1/3rd of total seats (including seats reserved for SC/ST women); 1/3rd of Chairperson offices reserved for women |
| Backward Classes | State Legislature may provide reservation for backward classes |
| Rotation | Reserved seats are allotted by rotation to different constituencies in a Panchayat |
Duration and Elections (Article 243E)
- Term: 5 years from the date of first meeting
- Can be dissolved earlier by the State Government
- Elections must be held before the expiry of the 5-year term
- If dissolved, elections must be held within 6 months of dissolution
- The reconstituted Panchayat serves only the remainder of the full 5-year term
State Finance Commission (Article 243I)
| Feature | Detail |
|---|---|
| Constitution | Governor must constitute a Finance Commission within one year of the commencement of the 73rd Amendment, and thereafter at the expiry of every 5th year |
| Functions | Review the financial position of Panchayats and recommend: (a) distribution of taxes between State and Panchayats, (b) grants-in-aid from the Consolidated Fund of the State, (c) measures to improve the financial position of Panchayats |
| Report | Submitted to the Governor; the State Legislature must cause it to be laid before the House along with an action-taken report |
11th Schedule — 29 Subjects (Article 243G)
The 11th Schedule lists 29 subjects for which Panchayats may be given powers and responsibilities for the preparation of plans for economic development and social justice:
| No. | Subject |
|---|---|
| 1 | Agriculture, including agricultural extension |
| 2 | Land improvement, implementation of land reforms, land consolidation, and soil conservation |
| 3 | Minor irrigation, water management, and watershed development |
| 4 | Animal husbandry, dairying, and poultry |
| 5 | Fisheries |
| 6 | Social forestry and farm forestry |
| 7 | Minor forest produce |
| 8 | Small-scale industries, including food processing industries |
| 9 | Khadi, village, and cottage industries |
| 10 | Rural housing |
| 11 | Drinking water |
| 12 | Fuel and fodder |
| 13 | Roads, culverts, bridges, ferries, waterways, and other means of communication |
| 14 | Rural electrification, including distribution of electricity |
| 15 | Non-conventional energy sources |
| 16 | Poverty alleviation programme |
| 17 | Education, including primary and secondary schools |
| 18 | Technical training and vocational education |
| 19 | Adult and non-formal education |
| 20 | Libraries |
| 21 | Cultural activities |
| 22 | Markets and fairs |
| 23 | Health and sanitation, including hospitals, primary health centres, and dispensaries |
| 24 | Family welfare |
| 25 | Women and child development |
| 26 | Social welfare, including welfare of the handicapped and mentally retarded |
| 27 | Welfare of the weaker sections, and in particular, of the SC and ST |
| 28 | Public distribution system |
| 29 | Maintenance of community assets |
States Exempted from Part IX
| Exemption | Detail |
|---|---|
| Article 243M(1) | Does not apply to Scheduled Areas (Fifth Schedule) and Tribal Areas (Sixth Schedule) |
| Article 243M(2) | Does not apply to Nagaland, Meghalaya, Mizoram and certain hill areas of Manipur |
| PESA Act, 1996 | Provisions of the Panchayats (Extension to the Scheduled Areas) Act, 1996 extends Panchayati Raj to Fifth Schedule areas with modifications to protect tribal rights |
74th Amendment — Municipalities (Articles 243P–243ZG)
Key Constitutional Provisions
| Article | Subject |
|---|---|
| 243Q | Constitution of Municipalities |
| 243R | Composition of Municipalities |
| 243S | Constitution and composition of Wards Committees |
| 243T | Reservation of seats |
| 243U | Duration of Municipalities — 5 years |
| 243W | Powers, authority, and responsibilities |
| 243X | Power to impose taxes |
| 243Y | Finance Commission (same as Art 243I) |
| 243ZA | Elections to Municipalities — State Election Commission |
| 243ZD | Committee for District Planning |
| 243ZE | Committee for Metropolitan Planning |
Three Types of Municipalities (Article 243Q)
| Type | Area |
|---|---|
| Nagar Panchayat | Transitional area (rural to urban) |
| Municipal Council | Smaller urban area |
| Municipal Corporation | Larger urban area |
The Governor determines the classification on the basis of population, density, revenue generated, percentage employed in non-agricultural activities, and other factors.
Composition
| Feature | Detail |
|---|---|
| Election | Members elected by direct election from territorial wards |
| Chairperson | State Legislature decides the manner of election of the Chairperson |
| Representation | State Legislature may provide for representation of MPs, MLAs, and MLCs; persons with special knowledge or experience in municipal administration |
| Wards Committees | Mandatory for municipalities with population of 3 lakh or more (Article 243S) |
Reservation (Article 243T)
| Category | Reservation |
|---|---|
| SC/ST | In proportion to their population in the municipality |
| Women | Not less than 1/3rd of total seats (including SC/ST women); 1/3rd of Chairperson offices |
| Backward Classes | State Legislature may provide reservation |
| Rotation | Reserved seats allotted by rotation to different wards |
Duration (Article 243U)
- Term: 5 years from the date of first meeting
- If dissolved, elections within 6 months
- Reconstituted municipality serves only the remainder of the 5-year term
12th Schedule — 18 Functions (Article 243W)
| No. | Function |
|---|---|
| 1 | Urban planning, including town planning |
| 2 | Regulation of land use and construction of buildings |
| 3 | Planning for economic and social development |
| 4 | Roads and bridges |
| 5 | Water supply for domestic, industrial, and commercial purposes |
| 6 | Public health, sanitation conservancy, and solid waste management |
| 7 | Fire services |
| 8 | Urban forestry, protection of the environment, and promotion of ecological aspects |
| 9 | Safeguarding the interests of weaker sections of society, including the handicapped and mentally retarded |
| 10 | Slum improvement and upgradation |
| 11 | Urban poverty alleviation |
| 12 | Provision of urban amenities and facilities such as parks, gardens, playgrounds |
| 13 | Promotion of cultural, educational, and aesthetic aspects |
| 14 | Burials and burial grounds; cremations and cremation grounds; and electric crematoriums |
| 15 | Cattle pounds; prevention of cruelty to animals |
| 16 | Vital statistics including registration of births and deaths |
| 17 | Public amenities including street lighting, parking lots, bus stops, and public conveniences |
| 18 | Regulation of slaughterhouses and tanneries |
State Election Commission (Article 243K / 243ZA)
| Feature | Detail |
|---|---|
| Constitutional basis | Article 243K (Panchayats) and Article 243ZA (Municipalities) |
| Appointment | State Election Commissioner appointed by the Governor |
| Function | Superintendence, direction, and control of the preparation of electoral rolls and conduct of elections to Panchayats and Municipalities |
| Removal | Can only be removed in the same manner as a High Court Judge — i.e., by an order of the Governor on a report of the High Court |
| Independence | Conditions of service shall not be varied to disadvantage after appointment |
| Key distinction | The SEC is not under the Election Commission of India — it is a separate constitutional authority for local body elections |
District Planning Committee (Article 243ZD)
| Feature | Detail |
|---|---|
| Mandate | Every State shall constitute at the district level a District Planning Committee (DPC) |
| Function | Consolidate the plans prepared by Panchayats and Municipalities in the district and prepare a draft development plan for the district as a whole |
| Composition | At least 4/5th of members elected by and from among the elected members of Panchayats and Municipalities in the district — in proportion to rural and urban population |
| Chairperson | Determined by State Legislature |
| Considerations | Must have regard to: (a) matters of common interest between Panchayats and Municipalities (spatial planning, water sharing, infrastructure), (b) extent of available resources |
| Forwarding | Draft plan forwarded to the State Government |
Metropolitan Planning Committee (Article 243ZE)
| Feature | Detail |
|---|---|
| Definition | A Metropolitan area is an area having a population of 10 lakh or more in one or more districts |
| Mandate | Every Metropolitan area shall have a Metropolitan Planning Committee (MPC) |
| Function | Prepare a draft development plan for the Metropolitan area as a whole |
| Composition | At least 2/3rd of members elected by and from among the elected members of Municipalities and Chairpersons of Panchayats in the area |
| Other members | May include representatives of Central Government, State Government, and expert organisations |
| Considerations | Must have regard to: plans of Municipalities and Panchayats, matters of common interest, overall objectives and priorities of the region, investment pattern, and land-use |
Comparison: 73rd Amendment vs 74th Amendment
| Feature | 73rd Amendment (Panchayats) | 74th Amendment (Municipalities) |
|---|---|---|
| Part of Constitution | Part IX (Articles 243-243O) | Part IX-A (Articles 243P-243ZG) |
| Schedule | 11th Schedule — 29 subjects | 12th Schedule — 18 functions |
| Tier system | Three-tier (Village, Intermediate, District) | Three types (Nagar Panchayat, Municipal Council, Municipal Corporation) |
| Gram Sabha equivalent | Gram Sabha (Art. 243A) | Wards Committee (Art. 243S — for 3 lakh+ population) |
| SC/ST reservation | In proportion to population | In proportion to population |
| Women reservation | Not less than 1/3rd | Not less than 1/3rd |
| Duration | 5 years | 5 years |
| Elections conducted by | State Election Commission | State Election Commission |
| Finance Commission | State Finance Commission (Art. 243I) | Same State Finance Commission (Art. 243Y) |
| Planning body | — | DPC (Art. 243ZD) and MPC (Art. 243ZE) |
Finance Commission and Local Bodies
Constitutional Mandate
Article 243I (Panchayats) and Article 243Y (Municipalities) mandate the State Government to constitute a State Finance Commission every 5 years to review the financial position of local bodies and recommend distribution of resources.
Central Finance Commission and Local Bodies
| Finance Commission | Key Recommendation for Local Bodies |
|---|---|
| 11th FC (2000-05) | First to recommend grants for local bodies |
| 13th FC (2010-15) | Rs 87,519 crore for local bodies |
| 14th FC (2015-20) | Rs 2,87,436 crore for local bodies (large increase after raising states' tax share to 42%) |
| 15th FC (2021-26) | Rs 4,36,361 crore for local bodies |
| 16th FC (2026-31) | Rs 4.4 lakh crore for rural local bodies + Rs 3.6 lakh crore for urban local bodies; divided into basic grants (80%) and performance-based grants (20%); states' share of central taxes retained at 41% |
Important for UPSC
Prelims Focus
- 73rd Amendment: Part IX, Articles 243-243O, 11th Schedule (29 subjects), came into force 24 April 1993
- 74th Amendment: Part IX-A, Articles 243P-243ZG, 12th Schedule (18 functions), came into force 1 June 1993
- Reservation: SC/ST in proportion to population + 1/3rd for women at all levels
- State Finance Commission: Article 243I — constituted every 5 years
- State Election Commission: Article 243K — appointed by Governor, removed like a High Court Judge
- DPC (Art. 243ZD): 4/5th members elected; MPC (Art. 243ZE): 2/3rd members elected, for metro areas of 10 lakh+ population
- PESA Act, 1996: Extends Panchayati Raj to Fifth Schedule areas
- States below 20 lakh population may not have intermediate tier
- Wards Committees mandatory for municipalities with 3 lakh+ population
Mains Dimensions
- 3Fs — Funds, Functions, Functionaries: The real challenge of decentralisation — actual devolution vs constitutional mandate
- Gram Sabha as instrument of direct democracy: Potential and limitations
- Urban governance challenges: 74th Amendment implementation gaps, smart cities and municipal reforms
- 16th Finance Commission: Impact of new grants formula on local body finances
- PESA and tribal self-governance: Conflicts between Panchayati Raj and tribal autonomy
- Women's representation: Impact of 1/3rd reservation at the grassroots — some states have increased to 50%
Interview Angles
- Should reservation for women in Panchayats be increased to 50% across all states?
- Why has urban decentralisation lagged behind rural decentralisation?
- How can District Planning Committees be made more effective?
- Should the State Election Commission be merged with the Election Commission of India?
Previous Year Questions (PYQs)
UPSC Prelims
Q1. (2016) Under which Schedule of the Indian Constitution are the subjects over which Panchayats have been given administrative control listed? (a) 9th Schedule (b) 10th Schedule (c) 11th Schedule (d) 12th Schedule
Answer: (c) 11th Schedule
Q2. (2017) Local self-government can be best explained as an exercise in: (a) Federalism (b) Democratic decentralisation (c) Administrative delegation (d) Direct democracy
Answer: (b) Democratic decentralisation
Q3. (2018) Consider the following statements about the 73rd Constitutional Amendment:
- It provides for a three-tier system of Panchayati Raj for all States having a population of more than 20 lakh.
- It provides for reservation of seats for SC, ST, and women.
- It provides for a fixed five-year term for Panchayats.
Which of the statements given above is/are correct? Answer: All three statements are correct.
Q4. (2019) Which of the following statements regarding the District Planning Committee is/are correct?
- The District Planning Committee is a constitutional body under Article 243ZD.
- At least four-fifths of the members shall be elected from among the elected members of Panchayats and Municipalities.
Answer: Both statements are correct.
UPSC Mains
Q. (GS-II, 2018) "The 73rd and 74th Constitutional Amendments have not been able to achieve the desired objective of democratic decentralisation." Critically evaluate.
Q. (GS-II, 2021) Analyse the role of the State Finance Commission in strengthening the financial position of Panchayati Raj Institutions. What reforms are needed?
Q. (GS-II, 2017) "Devolution of powers and finances to local bodies remains a challenge in India." Discuss in the context of the 73rd and 74th Amendments.
Current Affairs Connect
Sources: Constitution of India — legislative.gov.in | National Portal of India — india.gov.in | PRS Legislative Research — prsindia.org | Ministry of Panchayati Raj — panchayat.gov.in | PIB — pib.gov.in