The 73rd Constitutional Amendment Act, 1992 is a landmark constitutional reform concerning rural local self-government in India. It gave constitutional status to Panchayati Raj Institutions (PRIs), established a common constitutional framework for their functioning, and sought to strengthen democratic decentralisation, popular participation, social justice and rural development.
The Amendment received presidential assent in 1992 and came into force on 24 April 1993. The date, 24 April, is observed as National Panchayati Raj Day.
1. Background of the 73rd Amendment
Panchayats existed in India even before the Constitution, but their organisation and powers varied considerably from state to state.
The Constitution originally referred to village Panchayats in Article 40, which is a Directive Principle of State Policy:
> The State should take steps to organise village panchayats and endow them with such powers and authority as may be necessary to enable them to function as units of self-government.
However, Article 40 was not sufficient to create a uniform and constitutionally protected Panchayati Raj system.
Several committees examined the functioning of local government and recommended reforms.
Important committees
Balwant Rai Mehta Committee, 1957
Associated with the idea of democratic decentralisation.
Recommended a three-tier Panchayati Raj system.
Suggested Gram Panchayat, Panchayat Samiti and Zila Parishad.
Ashok Mehta Committee, 1978
Recommended a stronger and more effective system of local government.
Suggested a two-tier structure.
Emphasised political participation and decentralisation.
G. V. K. Rao Committee, 1985
Emphasised the importance of Panchayati Raj Institutions in rural development administration.
L. M. Singhvi Committee, 1986
Recommended constitutional recognition for Panchayati Raj Institutions.
Emphasised the importance of the Gram Sabha.
These developments contributed to the eventual constitutionalisation of Panchayati Raj through the 73rd Amendment.
2. Constitutional Status to Panchayats
The most important feature of the 73rd Amendment was that it gave constitutional status to Panchayati Raj Institutions.
It inserted:
Part IX — “The Panchayats”
Part IX contains Articles 243 to 243-O.
This transformed Panchayats from institutions primarily dependent on state legislation into institutions having a constitutional framework.
The major constitutional provisions include:
Article Subject
243 Definitions
243A Gram Sabha
243B Constitution of Panchayats
243C Composition of Panchayats
243D Reservation of seats
243E Duration
243F Disqualifications
243G Powers and responsibilities
243H Panchayat finances
243-I State Finance Commission
243J Audit of accounts
243K Panchayat elections
243L Application to Union Territories
243M Exceptions
243N Continuance of existing laws
243-O Bar to court interference in electoral matters
3. Gram Sabha
One of the most important innovations of the Amendment was the constitutional recognition of the Gram Sabha.
Article 243A
The Gram Sabha consists of persons registered in the electoral rolls relating to a village within the area of the Panchayat at the village level.
The Gram Sabha is important because it provides an institutional mechanism for direct participation of citizens in local governance.
Its powers and functions are determined by the State Legislature through law.
Importance
The Gram Sabha can serve as a forum for:
discussion of local development;
participation in local decision-making;
consideration of development programmes;
social accountability;
community participation.
Exam point:
Article 243A → Gram Sabha
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4. Three-Tier Panchayati Raj System
The Amendment provides a constitutional framework for Panchayats at three levels:
Village Level
Gram Panchayat
Intermediate Level
Panchayat Samiti / Intermediate Panchayat
District Level
Zila Parishad / District Panchayat
However, a state having a population not exceeding 20 lakh may choose not to constitute Panchayats at the intermediate level.
This provision gives smaller states some flexibility.
Exam point
Three tiers = Village + Intermediate + District
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5. Composition of Panchayats
Article 243C deals with the composition of Panchayats.
The State Legislature has the power to make provisions concerning:
composition;
territorial constituencies;
representation;
election of members;
chairpersons.
However, such legislation must operate within the constitutional framework of Part IX.
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6. Direct Elections
The members of Panchayats are elected from territorial constituencies.
The Amendment therefore strengthened the democratic character of local government by providing for direct elections to Panchayats.
The method of election of the Chairperson differs according to the level and is determined by state law within the constitutional framework.
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7. Reservation for Scheduled Castes and Scheduled Tribes
Article 243D provides for reservation of seats for Scheduled Castes (SCs) and Scheduled Tribes (STs).
The number of seats reserved for SCs and STs is broadly based on their population in the Panchayat area.
This provision seeks to improve the political representation of historically disadvantaged communities in local government.
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8. Reservation for Women
Reservation for women is one of the most significant features of the 73rd Amendment.
At least one-third of the total number of seats filled by direct election in every Panchayat must be reserved for women.
This includes at least one-third of the seats reserved for SCs and STs for women belonging to those categories.
At least one-third of the offices of Chairpersons at each level of Panchayats must also be reserved for women.
The Constitution permits states to provide for greater reservation.
Therefore, some states have subsequently provided reservation of 50% for women in Panchayati Raj Institutions.
Exam point
Article 243D → Reservation
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9. Five-Year Term
Article 243E
Every Panchayat ordinarily has a term of five years.
The five-year period is calculated from the date appointed for its first meeting.
The constitutional provision seeks to ensure regularity and continuity in Panchayati Raj institutions.
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10. Elections After Dissolution
If a Panchayat is dissolved before the completion of its five-year term, an election should generally be completed within six months from the date of dissolution.
There is an important exception:
If the remaining period of the Panchayat's original term is less than six months, an election need not necessarily be held for that short remaining period.
A Panchayat constituted after premature dissolution normally continues only for the remainder of the original term, rather than receiving a fresh five-year term.
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11. State Election Commission
Article 243K
The 73rd Amendment created a constitutional mechanism for Panchayat elections through the State Election Commission.
The State Election Commission has the responsibility for:
preparation of electoral rolls;
supervision of Panchayat elections;
direction of the electoral process;
control over the conduct of elections.
The State Election Commissioner is appointed by the Governor.
The constitutional protection given to the State Election Commissioner is intended to safeguard the independence of the electoral process.
Exam point
Article 243K → State Election Commission
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12. State Finance Commission
Article 243-I
The Amendment provides for a State Finance Commission.
The Governor constitutes the State Finance Commission every five years.
Its principal purpose is to review the financial position of Panchayats and make recommendations concerning their financial resources.
It may make recommendations regarding:
distribution of state revenues between the state and Panchayats;
assignment of taxes, duties, tolls and fees to Panchayats;
grants-in-aid;
measures for improving the financial position of Panchayats.
Exam point
Article 243-I → State Finance Commission
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13. Financial Powers of Panchayats
Article 243H
The State Legislature may authorise Panchayats to:
levy and collect taxes;
levy duties;
levy tolls;
collect fees;
receive assigned revenues;
receive grants-in-aid.
The exact financial powers of Panchayats therefore depend significantly on state legislation.
This is an important distinction:
> Constitutional recognition does not mean that every Panchayat automatically possesses identical taxation powers throughout India.
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14. Powers and Responsibilities of Panchayats
Article 243G
The State Legislature may endow Panchayats with powers and authority necessary to enable them to function as institutions of self-government.
Such powers may relate to:
preparation of plans for economic development;
preparation of plans for social justice;
implementation of development programmes;
implementation of schemes relating to matters listed in the Eleventh Schedule.
The actual extent of devolution varies between states.
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15. Eleventh Schedule
The 73rd Amendment added the Eleventh Schedule to the Constitution.
It contains 29 subjects that may be devolved to Panchayats.
Important subjects include:
1. Agriculture
2. Land improvement
3. Land reforms
4. Soil conservation
5. Minor irrigation
6. Water management
7. Watershed development
8. Animal husbandry
9. Dairying and poultry
10. Fisheries
11. Social forestry
12. Minor forest produce
13. Small-scale industries
14. Khadi and village industries
15. Rural housing
16. Drinking water
17. Fuel and fodder
18. Roads and communications
19. Rural electrification
20. Non-conventional energy
21. Poverty alleviation programmes
22. Education
23. Vocational and technical training
24. Adult and non-formal education
25. Libraries
26. Cultural activities
27. Markets and fairs
28. Health and sanitation
29. Women and child development, social welfare, welfare of weaker sections, public distribution system and maintenance of community assets.
Important exam fact:
> Eleventh Schedule = 29 subjects
The presence of a subject in the Eleventh Schedule does not by itself automatically transfer full administrative control over that subject to every Panchayat. Actual devolution depends on state legislation.
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16. Audit of Panchayat Accounts
Article 243J
The State Legislature may make provisions concerning:
maintenance of Panchayat accounts;
auditing of Panchayat accounts;
procedures relating to financial accountability.
This provision is important for promoting financial transparency and accountability in local government.
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17. Bar on Court Interference in Panchayat Elections
Article 243O
The Constitution restricts ordinary judicial intervention in Panchayat electoral matters.
The validity of a law relating to delimitation or allotment of seats cannot ordinarily be questioned in court in the manner specified by the Constitution.
An election can generally be challenged through an election petition in accordance with the procedure established by state law.
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18. Application to Union Territories
Article 243L
The provisions of Part IX apply to Union Territories, subject to the constitutional framework and modifications specified by the President.
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19. Exceptions
Article 243M
Part IX does not apply in exactly the same manner to certain areas and states.
Among the important exceptions are:
Scheduled Areas and tribal areas referred to in Article 244;
certain specified states and areas.
This was important because India's tribal and scheduled areas have distinct constitutional arrangements.
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20. PESA Act, 1996
The constitutional framework of Panchayati Raj was subsequently extended to Scheduled Areas through the:
Panchayats (Extension to Scheduled Areas) Act, 1996
It is commonly known as the PESA Act.
PESA seeks to extend Panchayati Raj provisions to the Fifth Schedule Areas with modifications appropriate to their social and administrative circumstances.
It places particular importance on the Gram Sabha in Scheduled Areas.
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21. Constitutional Protection of Existing Panchayat Laws
Article 243N
Existing state laws relating to Panchayats could continue for a specified transitional period, subject to their conformity with the new constitutional provisions.
This allowed states time to bring their Panchayati Raj legislation into conformity with Part IX.
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22. Democratic Decentralisation
The 73rd Amendment is closely associated with the principle of democratic decentralisation.
The basic idea is that political and administrative decision-making should not remain concentrated exclusively at higher levels of government.
Instead, appropriate functions should be performed at the level closest to the people.
The Panchayati Raj system therefore seeks to connect:
People → Gram Sabha → Panchayats → District-level institutions
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23. Social Justice and Political Inclusion
The reservation provisions represent an important dimension of the Amendment.
Through reservation for:
SCs;
STs;
women;
the constitutional framework seeks to make local political institutions more representative.
The participation of women and historically disadvantaged communities in Panchayats has consequently become an important area of study in Indian local government.
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24. Importance of Gram Sabha
The Gram Sabha is particularly important because Panchayati Raj should not be understood merely as a system of elected representatives.
It also provides a mechanism for direct citizen participation.
The Gram Sabha can contribute to:
local accountability;
community participation;
identification of local needs;
discussion of development programmes;
monitoring of local activities.
The exact powers of Gram Sabhas differ according to state legislation, and in Scheduled Areas PESA gives the Gram Sabha additional statutory importance.
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25. 3Fs: Funds, Functions and Functionaries
A major issue in the practical functioning of Panchayati Raj is the actual devolution of:
Functions
Actual responsibilities and activities.
Funds
Adequate financial resources.
Functionaries
Personnel required to perform the assigned responsibilities.
These are commonly referred to as the 3Fs of decentralisation.
A constitutional framework alone does not guarantee complete decentralisation unless these three elements are effectively transferred to local institutions.
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26. Major Significance of the 73rd Amendment
The Amendment is significant because it:
1. Constitutionalised Panchayati Raj
Panchayats received a constitutional framework.
2. Strengthened democratic decentralisation
Decision-making was intended to move closer to citizens.
3. Institutionalised regular elections
Panchayat elections became constitutionally structured.
4. Created State Election Commissions
Local elections received an independent constitutional mechanism.
5. Created State Finance Commissions
The financial position of Panchayats became subject to periodic constitutional review.
6. Strengthened women's political participation
At least one-third reservation was constitutionally guaranteed.
7. Promoted representation of SCs and STs
Reservation was constitutionally provided.
8. Recognised Gram Sabha
It established a constitutional foundation for direct participation at the village level.
9. Defined development areas
The Eleventh Schedule identified 29 subjects potentially relevant to Panchayat functions.
10. Provided continuity
The five-year term and election provisions were intended to ensure regular functioning of local governments.
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27. Important Articles for Competitive Examinations
Article Provision
Article 40 Organisation of village Panchayats under DPSP
Article 243 Definitions
Article 243A Gram Sabha
Article 243B Constitution of Panchayats
Article 243C Composition
Article 243D Reservation
Article 243E Duration
Article 243F Disqualification
Article 243G Powers and responsibilities
Article 243H Panchayat finances
Article 243-I State Finance Commission
Article 243J Audit of accounts
Article 243K Panchayat elections
Article 243L Union Territories
Article 243M Exceptions
Article 243N Existing laws
Article 243O Bar to court interference in elections
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28. Important Facts for UGC NET, SLET, APSC and ADRE
73rd Constitutional Amendment Act: 1992
Came into force: 24 April 1993
Subject: Panchayati Raj / Rural Local Government
Part added: Part IX
Part IX: The Panchayats
Articles: 243–243O
Gram Sabha: Article 243A
Reservation: Article 243D
Panchayat term: 5 years
State Finance Commission: Article 243-I
State Election Commission: Article 243K
Eleventh Schedule: 29 subjects
Women's constitutional reservation: Minimum one-third
Intermediate tier exemption: States with population not exceeding 20 lakh
PESA: 1996
National Panchayati Raj Day: 24 April
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29. 73rd Amendment vs 74th Amendment
A very important examination distinction:
73rd Amendment 74th Amendment
Rural local government Urban local government
Panchayats Municipalities
Part IX Part IX-A
Eleventh Schedule Twelfth Schedule
29 subjects 18 subjects
Gram Sabha Ward Committees etc.
1992 1992
Effective from 24 April 1993 Effective from 1 June 1993
Easy way to remember
73rd → Rural → Panchayats → 11th Schedule → 29 subjects
74th → Urban → Municipalities → 12th Schedule → 18 subjects
Sources for Study
Primary/Government Sources
1. Constitution of India — Part IX and Eleventh Schedule
2. Ministry of Panchayati Raj, Government of India — Constitutional Provisions relating to Panchayats
3. Ministry of Panchayati Raj, Government of India — 73rd Constitutional Amendment and Panchayati Raj material
4. India Code — Constitution of India and PESA Act, 1996
5. Ministry of Law and Justice, Government of India — Constitution and Constitutional Amendment materials
6. Press Information Bureau (PIB), Government of India — Panchayati Raj-related government material
Standard Books
1. M. Laxmikanth — Indian Polity, chapter on Panchayati Raj
2. D. D. Basu — Introduction to the Constitution of India
3. M. P. Jain — Indian Constitutional Law
4. Subhash C. Kashyap — Our Constitution
5. V. N. Shukla — Constitution of India
6. S. R. Maheshwari — Local Government in India
7. George Mathew — works on Panchayati Raj and local democracy
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