Panchayati Raj and the 73rd Amendment
GS2 · Local Government
Evolution of Panchayati Raj
Local self-government in villages has old roots, but modern Panchayati Raj grew out of committees after independence:
- Balwant Rai Mehta Committee (1957) – set up to examine the Community Development Programme (1952) and the National Extension Service (1953). It recommended democratic decentralisation through a three-tier system: gram panchayat at the village, panchayat samiti at the block and zila parishad at the district; direct elections for the village panchayat and indirect elections for the higher tiers; and the panchayat samiti as the executive body. Rajasthan was the first state to establish Panchayati Raj – inaugurated by Nehru at Nagaur on 2 October 1959 – followed by Andhra Pradesh the same year.
- Ashok Mehta Committee (1977–78) – recommended a two-tier system (zila parishad and mandal panchayat covering a group of villages), official participation of political parties, compulsory powers of taxation, and constitutional recognition. Karnataka, Andhra Pradesh and West Bengal reformed their systems on these lines.
- G.V.K. Rao Committee (1985) – called the development process "grass without roots" because it had become bureaucratised; recommended the zila parishad as the key body for planning, and regular elections.
- L.M. Singhvi Committee (1986) – recommended constitutional recognition, a central role for the gram sabha, and financial resources for panchayats.
- The 64th Amendment Bill (1989) of the Rajiv Gandhi government passed the Lok Sabha but failed in the Rajya Sabha. The 73rd Amendment Act, 1992, under the P.V. Narasimha Rao government, finally came into force on 24 April 1993 – now observed as National Panchayati Raj Day.

The 73rd Amendment Act, 1992
It added Part IX ("The Panchayats", Articles 243 to 243O) and the Eleventh Schedule with 29 functional items. It gives constitutional status to panchayats, making it obligatory for states to adopt the new system. Its provisions fall into two groups:

Compulsory provisions (states must follow):
- Gram sabha in every village (Article 243A) – all persons registered in the electoral rolls of the village panchayat area.
- Three-tier system – village, intermediate (block) and district levels (Article 243B); states with a population not exceeding 20 lakh may skip the intermediate level.
- Direct elections to all seats at all levels; indirect election of the chairperson at the intermediate and district levels.
- Minimum age of 21 years to contest.
- Reservation of seats for SCs and STs in proportion to their population at all levels, and not less than one-third of total seats (including within SC/ST quotas) and of chairperson posts for women (Article 243D). Many states – more than 20 – have raised women's reservation to 50%.
- Five-year term; elections before expiry, and within six months of dissolution (Article 243E).
- State Election Commission (Article 243K) – conducts panchayat elections; the State Election Commissioner is appointed by the Governor and can be removed only in the manner and on the grounds of a High Court judge.
- State Finance Commission (Article 243I) – constituted by the Governor every five years to review panchayat finances and recommend distribution of state taxes and grants.
Voluntary provisions (states may decide): giving representation to MPs and MLAs in panchayats; reservation for backward classes; powers and functions to make panchayats institutions of self-government (Article 243G) – preparation of plans for economic development and social justice and implementation of schemes, including the 29 subjects; financial powers to levy and collect taxes, fees and tolls (Article 243H); and grants-in-aid from the state.
The Eleventh Schedule – 29 subjects
These include agriculture and extension; land improvement and soil conservation; minor irrigation and watershed development; animal husbandry, dairying and poultry; fisheries; social forestry and farm forestry; minor forest produce; small-scale industries including food processing; khadi, village and cottage industries; rural housing; drinking water; fuel and fodder; roads, culverts and waterways; rural electrification; non-conventional energy; poverty alleviation programmes; education including primary and secondary schools; technical training and vocational education; adult and non-formal education; libraries; cultural activities; markets and fairs; health and sanitation including hospitals, PHCs and dispensaries; family welfare; women and child development; social welfare including welfare of the handicapped and mentally retarded (the original wording); welfare of weaker sections, particularly SCs and STs; the public distribution system; and maintenance of community assets.
Exempted areas
Part IX does not apply to Nagaland, Meghalaya and Mizoram, the Fifth Schedule (Scheduled) Areas and Sixth Schedule (tribal) areas, the hill areas of Manipur with district councils, and Darjeeling district of West Bengal (for which the Darjeeling Gorkha Hill Council existed). Parliament can extend Part IX to Scheduled Areas with modifications – which it did through PESA, 1996.
Important judgments
- K. Krishna Murthy (2010): upheld reservation for backward classes in local bodies, but said the 50% vertical ceiling applies and reservation must be based on rigorous empirical inquiry.
- Vikas Kishanrao Gawali (2021) and later orders: OBC reservation in local bodies requires the triple test – a dedicated commission to study backwardness, specified proportion of reservation based on its findings, and total reservation not exceeding 50%.
- Rajbala (2016): upheld Haryana's minimum educational qualification and functional toilet requirements for panchayat candidates.
Mains angle
Panchayati Raj has created about 31 lakh elected representatives, of whom about 14 lakh are women (roughly 46%) – one of the largest exercises in grassroots democracy anywhere. But many panchayats lack real powers, funds and staff: the "3Fs" – functions, funds and functionaries – are often not devolved. The Devolution Index prepared for the Ministry of Panchayati Raj shows wide variation among states, with Kerala, Karnataka, Maharashtra and Tamil Nadu among the better performers. Problems also include sarpanch-pati (proxy rule by husbands of women representatives), elite capture, irregular gram sabha meetings and dependence on tied grants. Initiatives: e-Gram Swaraj for planning and accounting, Gram Panchayat Development Plans (People's Plan Campaign "Sabki Yojana Sabka Vikas"), SVAMITVA (2020) for property cards using drone survey of rural inhabited land, and the Rashtriya Gram Swaraj Abhiyan for capacity building.
Common traps
- Rajasthan was first (Nagaur, 2 October 1959); Andhra Pradesh followed in 1959.
- 73rd Amendment: Part IX, Articles 243–243O, Eleventh Schedule (29 subjects); in force 24 April 1993.
- Minimum age 21; intermediate tier optional for states up to 20 lakh population.
- Reservation for OBCs is voluntary under the 73rd Amendment; for women (one-third) compulsory.
- The State Election Commissioner is removed like a High Court judge.
Comparison: 73rd and 74th Amendments
| Point | 73rd Amendment (Panchayats) | 74th Amendment (Municipalities) |
|---|---|---|
| Part / Articles | Part IX, 243–243O | Part IXA, 243P–243ZG |
| Schedule | Eleventh – 29 subjects | Twelfth – 18 subjects |
| In force | 24 April 1993 | 1 June 1993 |
| Basic units | Gram panchayat, panchayat samiti, zila parishad | Nagar panchayat, municipal council, municipal corporation |
| Assembly of citizens | Gram sabha (constitutional) | Ward committees (≥ 3 lakh population); area sabhas only under some state laws |
Practice: check your understanding
- *Is the gram sabha a constitutional body?* Yes – Article 243A provides for it, but its powers are decided by state law.
- *Who conducts panchayat elections?* The State Election Commission, not the Election Commission of India.
- *Why is the Eleventh Schedule said to be "not self-executing"?* Because the transfer of the 29 subjects depends on state laws (Article 243G); the Constitution does not itself devolve them.
- Balwant Rai Mehta 1957 (3 tiers) → Rajasthan, Nagaur, 2 Oct 1959; Ashok Mehta 1977 (2 tiers); GVK Rao 1985; L.M. Singhvi 1986
- 73rd Amdt 1992: Part IX (243–243O), 11th Schedule (29 subjects); in force 24 Apr 1993
- Compulsory: gram sabha, 3 tiers (skip middle ≤20 lakh), direct elections, age 21, SC/ST & 1/3 women reservation, 5-year term, SEC, SFC
- Voluntary: OBC reservation, MP/MLA representation, devolution of powers and taxes
- Exempt: Nagaland, Meghalaya, Mizoram, Scheduled & tribal areas, Manipur hills, Darjeeling
- 3Fs: functions, funds, functionaries
