73rd Constitutional Amendment Act

In 1992, the 73rd Constitution Amendment Act was passed, and it took effect
on April 24, 1993. The Act gave state governments the authority to take the
procedures necessary to formalize Gram Panchayats and enable them to
function as self-governing bodies.

This act added a new Part-IX to the Indian Constitution. This section is
titled 'The Panchayats' and it contains provisions from Articles 243 to 243 O.
Furthermore, the act added a new Eleventh Schedule to the Constitution. This
schedule includes 29 panchayat functional items. It is concerned with Article
243-G.

Balwant Rai Mehta Committee (1957) was the first committee that
recommended the establishment of the scheme of ‘democratic
decentralization’ which ultimately came to be known as Panchayati Raj. Some
of the major recommendations made by the committee are:

1. Establishment of a three-tier panchayati raj system

2. The village panchayats should be constituted with directly elected
representatives
3. Planning and development should be entrusted to them
4. Adequate resources should be transferred to these bodies
5. Proper system should be put place in to realize the devolution of
powers

Rajasthan was the first state to establish Panchayati Raj. It was inaugurated in
1959 in Nagaur district. Most of the states created the system in their states.
However, there were wide-ranging differences between them. Some states
had adopted two-tier system, others three-tier and four-tier. The manner of
devolution of power was also varying across the country.

Ashok Mehta Committee (1977)

Was appointed by the Janata government to make recommendations to
strengthen and revive these institutions which were becoming weak. Some of
its main recommendations were:

1. Three-tier system should be replaced with two-tier system

2. A district should be the first point for decentralization
3. ZP should be executive body
4. There should be official participation of the political parties
5. They should have compulsory powers of taxation
6. Regular social audit
7. Elections should be held within six months if Panchayati institutions are
superseded
8. A minister for Panchayati raj should be appointed at the state
9. Reservation of seats for SC and ST
[Link] recognition to these institutions

GVK Rao committee (1985)

It was appointed by the Planning Commission. The committee observed that

bureaucratization of these institutions as the major reason behind the
lackadaisical performance of panchayati institutions. Some of the important
recommendations made by the committee are:

1. ZP should be unit for democratic decentralization

2. PRI at the district and lower levels should be assigned an important role
with respect to planning, implementation and monitoring
3. A post of district development commissioner should be created. He
should be in-charge of the development departments at district level
4. Elections to PRI should be conducted regularly

LM Singhvi committee (1986)

It was appointed by the Rajiv Gandhi government. Some of the

recommendations made by this committee vis-à-vis PRI include:

1. It should be constitutionally recognized

2. Nyaya panchayats should be established for a cluster of villages
 3. Placed emphasis on Gram Sabha as the centre for democratic
decentralization
4. Village panchayats should have more resources
5. Judicial tribunals should be established to adjudicate judicial matters
related to PRI

73rd Amendment Act (1992) - Objective

• The main objective of the 73rd Amendment act was democratic

decentralization of power and resources from the center to elected
representatives at lower levels in order to allow individuals to
participate more directly in governance.
• The objective of the 73rd Amendment pertains to Article 40 of the
constitution which requires the state to organize village panchayats and
grant them necessary powers and authority to enable them to function
as units of self-government.
• This article is based on the Gandhian Principle of DPSP which
recommended grass root level politics i.e. people should decide matters
on their own.
• Gandhiji advocated the third level of government that can understand
the problems of the people of the village at the grassroots level.

73rd Amendment Act (1992) - Constitutional Provisions

• Local governments were provided constitutional sanction through

the 73rd Amendment Act of 1992 which was enforced on 24th April
1993.
• The 11th schedule was added in the constitution through this
amendment which contained 29 subject matters of the Panchayats.
• This act also added Part IX to the Constitution which contained
provisions from Articles 243 to 243O.
• This amendment brought the state governments under constitutional
obligation to adopt the new system of Panchayati Raj in accordance with
the provisions of the act.

73rd Amendment Act - Salient Features

1. Gram Sabha
 • Gram Sabha was the foundation of the Panchayati Raj System which
consisted of the people registered in the electoral rolls of the village
within the area of the Panchayat.

2. Three-tier system

• The three-tier system of the panchayat was provided in every state i.e.
Panchayat at the village, intermediate and district level which brought
uniformity in the structure of Panchayati Raj institutions throughout the
country.

3. Election of members and chairpersons

• The members of Panchayats at the village, intermediate, and district

levels shall be elected directly by the people whereas the chairman of
the Panchayat at the intermediate and district level shall be elected
indirectly from amongst the elected members thereof.

4. Reservation of seats

• Reservation of seats for SC and ST is provided in every panchayat in the

proportion to their population. Provision for reservation of 1/3rd of the
total number of seats are also provided for women.
• The state legislature has been empowered to make any provision for
reservation in Panchayat at any level in favor of the backward class.

5. Duration of Panchayat

• Panchayats have been provided for a five-year term of office at every

level. It can however be dissolved before the completion of its term.
• A panchayat if elected after the dissolution of the panchayat before shall
continue for the remaining period for which the State Election
Commission dissolved Panchayat would have continued had it not been
dissolved.

6. State Election Commission

• The state election commission has been constituted and has been
endowed with various roles like superintendence, direction, and control
of the preparation of electoral rolls.
 • The conduct of elections to the Panchayats shall also be handled by the
state election commission.

7. Finance commission

• The finance commission is constituted by the governor to review the

financial position of the Panchayats.
• This commission recommends the governor decide the principles that
should govern the distribution of taxes between the state and the
Panchayats. It also determines the taxes, duties, tolls, and fees that may
be assigned to Panchayats.

8. Powers and Functions of Panchayats

• The powers and functions of the Panchayats are endowed by the state
legislature.
• The Panchayats prepare a plan for economic development and social
justice for the people of the Panchayats.
• It implements the scheme of the Central and State government for the
betterment of the people at the ground level.
• Panchayats have the power to enhance employment facilities and
undertake development activities in the area.

• provide for the establishment of funds to credit all money of the

Panchayats.

• regarding the maintenance and auditing of panchayat's accounts.

Eleventh Schedule

Following 29 functional items are placed within panchayats:

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
[Link] housing
[Link] water
[Link] and fodder
[Link], culverts, bridges, ferries, waterways, and other means of
communication
[Link] electrification, including distribution of electricity
[Link]-conventional energy sources
[Link] alleviation program
[Link], including primary and secondary schools
[Link] training and vocational education
[Link] and non-formal education
[Link]
[Link] activities
[Link] and fairs
[Link] and sanitation including hospitals, primary health centers, and
dispensaries
[Link] welfare
[Link] and child development
[Link] welfare, including the welfare of the handicapped and mentally
retarded
[Link] welfare of the weaker sections, and in particular, of the scheduled
castes and the scheduled tribes
[Link] distribution system
[Link] of community assets