73rd Amendment Act

The 73rd Amendment Act was enacted by the Indian national government in 1992 to address these
issues and improve local self-governance. Both houses agreed on the legislation, and it became law
on April 24th, 1993.

The 73rd Amendment envisages the Gram Sabha as the foundation of the Panchayat Raj System to
perform functions and powers entrusted to it by the State Legislatures.

A three-tier Panchayat Raj System at the village, intermediate, and district levels is provided by the
amendment. With the help of this clause, India’s Panchayati Raj system became uniform.

The Act empowered state governments to take the necessary steps that would lead to the
formalisation of the gram panchayats and help them operate as units of self-governance.

Objectives of the 73rd Amendment Act

• The 73rd Amendment Act’s primary goal was to democratically decentralise authority
and resources from the centre to locally elected officials in order to increase citizen
participation in governance.
• Its goal relates to Article 40 of the constitution, which calls for the state to set up
village panchayats and give them the requisite authority and powers to function as
self-governing entities.

Constitutional Provisions of Panchayati Raj

• Through this amendment, the constitution gained the 11th schedule, which listed 29
Panchayat-related topics.
• Additionally, Part IX, which included provisions from Articles 243 to 243 O, was
introduced to the Constitution by this measure.
• The state governments were now required by this modification to implement the new
Panchayati Raj system in conformity with the act’s stipulations.

Salient features Panchayati Raj

1. Gram Sabha:

• It is a village assembly consisting of all the registered voters in the area of a

panchayat.
• It can perform such functions as the state legislature entrusts it with

2. Three-tier system:

• It suggests PRI at the village, intermediate and district levels. Thus, bringing uniformity
to the PRI.
• However, states having a population of less than 20 lakh may not setup PRI
3. Election:

• All the members at the village, intermediate and district levels shall be elected directly
by the people.
• The chairperson of the intermediate and district level shall be indirectly elected
chairman of the panchayat shall be elected in such a manner as the state legislature
provides for

4. Reservation of seats:

• In every Gram Panchayat, seats must be set aside for members of Scheduled Castes
and Scheduled Tribes. The percentage of these seats to the total number of seats in
the Panchayat that will be filled through direct election must be as close to equal as
possible.
• Women from Scheduled Castes or, where applicable, Scheduled Tribes must have
access to at least one-third of the seats that are set aside for them.
• Not less than one-third (including the number of seats reserved for women belonging
to the Scheduled Castes and the Scheduled Tribes) of the total number of seats to be
filled by direct election in every Gram Panchayat shall be reserved for women and
such seats may be allotted by rotation to different constituencies in a Gram Panchayat
in such manner as may be prescribed.
• The above reservation is provided for the position of chairperson tooThe act also
authorizes the legislature of the state to make any reservations for backward classes

5. Duration of Panchayats:

• Every level of panchayat is given a five-year term of office under the statute. PRI,
however, may be dissolved prior to the end of the natural term.
• Before the PRI’s natural term expires or, in the event of its dissolution, before a period
of six months has passed since that date, new elections must be held.

6. Qualification & Disqualification:

• A person shall be disqualified for being chosen as or for being a member of the
panchayat if he is so disqualified:
• Under any law for the time being in force for the purpose of elections
to the legislature of the state concerned.
• No person can be disqualified on the ground that he is less than 25
years of age if he has attained the age of 21 years.
• All questions related to disqualification shall be referred to such
authority as the state legislature determines.

7. State election commission:

• The state election commission shall be in charge of overseeing, directing, and

controlling the creation of electoral rolls and the conduct of all panchayat elections.
• The governor will name a state election commissioner. He cannot be dismissed from
his position other than in the way and for the reasons specified for dismissing a judge.
 • The state legislature has the authority to establish rules on all aspects of panchayat
elections.

8. Powers and functions:

• The state legislature may endow the panchayats with such powers and authority as
may be necessary to enable them to function as institutions of self-government.

9. Finances:

• The state legislature may authorize a panchayat to levy, collect and appropriate taxes,
provide for making grants-in-aid to the panchayats, provide for the constitution of
funds for crediting all money of the panchayats.

10. Finance Commission:

• The governor has the authority to establish an annual finance commission to review
the panchayats’ financial standing, recommend improvements, and make
recommendations on any other issues the governor refers to the commission.
• It shall make recommendations on the following matters:
• The distribution between the state and the panchayats from the net
proceeds of taxes
• Determination of taxes, duties, tolls and fees that may be assigned to
the panchayats
• Grants-in-aid to the panchayats from the consolidated fund of the state
• The state legislature will establish the FC’s composition and qualifications.
• Based on the state’s finance commission’s findings, the central finance commission
will also provide recommendations on how to consolidate the panchayat’s financial
situation.

11. Audit:

• The state legislature may provide the manner for auditing PRI.

12. Application to UT:

• The president of India may direct that provisions of this act shall apply to any union
territory subject to such modification as he may specify.

13. Exempted areas:

• It does not apply to Nagaland, Mizoram, Meghalaya, scheduled areas and the tribal
areas, hill area of Manipur, and Darjeeling district of WB.
• However, parliament may extend the provisions of this part to even these exempted
areas with modifications as it may specify.
• In this regard, parliament has enacted, ‘The provisions of the Panchayat (Extension to
the scheduled areas) Act, 1996.
14. Bar to interference of court:

• The act bars the interference by courts in the electoral matters of panchayats. It also
mentions the delimitation related to PRI cannot be questioned by the court.
• Even election petitions shall be entertained based on such mechanism as specified by
the state legislature.

15. 11th schedule:

• The Act inserted a new schedule which contained areas that come under the purview
of the PRI.

The year 2023 marks the 30th anniversary of the 73rd and 74th Amendment to the Indian Constitution.

▪ Positive Aspects:
o Empowerment of Local Communities: Democratic decentralisation has given more
power to local communities to participate in decision-making processes and to
implement development projects according to their specific needs and priorities.
• This has led to greater participation of citizens in governance and decision-
making processes.
o Accountability and Transparency: Decentralisation has also led to greater
accountability and transparency in governance.
• Local governments are more directly accountable to citizens, and decision-
making processes are more transparent and open to public scrutiny.
o Promotion of Diversity and Inclusivity: Democratic decentralisation has allowed
for greater representation of marginalised communities in decision-making
processes.
• This has led to more inclusive policies that address the needs and interests
of all citizens, regardless of their social, economic, or cultural background.
▪ Challenges Related to Decentralisation in India:
o Uneven Distribution of Power and Resources: Decentralisation has been
implemented unevenly across different states and regions of India, leading
to disparities in the distribution of power and resources.
• Some states and regions have been more successful in implementing
decentralisation than others, which has led to uneven development
outcomes.
o Ceremonial Status to Mayor: The 2nd Administrative Reform Commission noted the
Mayor in the Urban Local Government in most states enjoys primarily a ceremonial
status.
• In most cases, the Municipal Commissioner, appointed by the State
Government has all the powers and the elected Mayor ends up performing
the role of the subordinate.
o Infrastructural Loopholes: Many Gram Panchayats (GPs) lack a building of their own
and share spaces with schools, anganwadi, and other entities.
• While some have their own building, they lack basic facilities such as toilets,
drinking water, and electricity.
• Although Panchayats have internet connections, they are not always
functional. Panchayat officials have to visit Block Development offices for
any data entry purposes, which delays the work.
Way Forward

▪ Strengthening Local Government Institutions: The institutional framework for local

governance in India needs to be strengthened by providing them with more autonomy,
resources and powers.
o This can be done by revising laws, regulations and procedures that constrain the
functioning of local governments
▪ Capacity Building: Local government officials and elected representatives need to be trained
and equipped with the necessary skills and knowledge to effectively carry out their roles and
responsibilities.
o This can be achieved through training programs, exchange visits and mentoring.
▪ Community Participation: The success of democratic decentralisation depends on active
participation of citizens in decision-making and implementation of local development plans.
o Community participation can be enhanced through awareness campaigns, public
meetings and consultations.