Phase 3: States, Local Bodies & Authorities

Panchayati Raj & Municipalities

Democratic decentralization via the 73rd and 74th Constitutional Amendments.

The 73rd Amendment Act, 1992

This act added a new Part-IX to the Constitution of India, titled "The Panchayats". It also added a new 11th Schedule containing 29 functional items of the panchayats. The act gave practical shape to Article 40 (DPSP), which directs the state to organize village panchayats.

Salient Features (Compulsory Provisions)

  • Gram Sabha: A body consisting of persons registered in the electoral rolls of a village. It is the foundation of the panchayati raj system.
  • Three-Tier System: The act provides for a three-tier system of panchayati raj in every state (village, intermediate, and district levels). States with a population below 20 lakhs may not constitute the intermediate level.
  • Elections: All members of panchayats at the village, intermediate, and district levels shall be elected directly by the people. However, chairpersons of intermediate and district panchayats are elected indirectly.
  • Reservation of Seats: Reservation of seats for SCs and STs in proportion to their population. Further, not less than one-third of the total number of seats are reserved for women.
  • Duration: A fixed term of five years. If dissolved earlier, fresh elections must be held within six months.

State Election Commission & Finance Commission

State Election Commission: The superintendence, direction, and control of the preparation of electoral rolls and the conduct of all elections to the panchayats shall be vested in the State Election Commission (appointed by the Governor).

State Finance Commission: The Governor constitutes a Finance Commission every five years to review the financial position of the panchayats and make recommendations regarding the distribution of taxes and grants-in-aid.

The 74th Amendment Act, 1992 (Municipalities)

This act added a new Part IX-A to the Constitution, titled "The Municipalities". It also added the 12th Schedule, containing 18 functional items. It provides for three types of municipalities:

  • Nagar Panchayat: For a transitional area (from rural to urban).
  • Municipal Council: For a smaller urban area.
  • Municipal Corporation: For a larger urban area.

The provisions regarding elections, reservations, duration, and state commissions for municipalities are largely analogous to those for panchayats.