Paper IPaper I · Polity

Local Government

The 73rd and 74th Amendments (1992), panchayats (Part IX, Art 243 to 243-O) and municipalities (Part IXA, Art 243-P to 243-ZG), Schedules 11 and 12, reservations, the State Election Commission and State Finance Commission, PESA, and the committees that shaped panchayati raj

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At a glance
PaperPaper ISubjectPolitySyllabusThe country's political system and Constitution of India, social systems and public administration, and regional and international security issues and human rights including its indicatorsImportanceMedium
Panchayati Raj73rd Amendment74th AmendmentMunicipalitiesLocal GovernmentEleventh ScheduleTwelfth SchedulePesa

Flagship anchor

Local self-government is the third tier of the Indian federal structure, and it was given constitutional status by two landmark amendments of 1992: the 73rd Amendment created Part IX (Art 243 to 243-O) and the Eleventh Schedule for rural local bodies (panchayats), and the 74th Amendment created Part IXA (Art 243-P to 243-ZG) and the Twelfth Schedule for urban local bodies (municipalities). Before these amendments, local government was an ordinary State subject with no constitutional guarantee, so bodies were superseded at will and elections were postponed indefinitely. The 73rd and 74th Amendments made local self-government compulsory and uniform: a five-year term, mandatory elections within six months of dissolution, reservation for Scheduled Castes, Scheduled Tribes and women, a State Election Commission to conduct the polls, and a State Finance Commission to review their finances. For CAPF the high-yield facts are the amendment numbers and the dates they came into force, which Part and Schedule each created, the number of functional subjects in Schedules 11 (29) and 12 (18), the three-tier panchayat structure, the reservation rules, and the security-relevant PESA, 1996, for Scheduled Areas. The NCERT Class XI text "Indian Constitution at Work", Chapter 8 (Local Governments), and Laxmikanth's chapters on the panchayati raj and municipalities are the standard references.

Core concept: the road to constitutional status

Before 1992, local government depended on the goodwill of State governments. The journey to constitutional recognition runs through Article 40, a Directive Principle that directs the State to organise village panchayats and endow them with the powers to function as units of self-government, and through a sequence of committees:

Committee / event Year Recommendation
Article 40 (Directive Principle) 1950 Directs the State to organise village panchayats
Balwant Rai Mehta Committee 1957 Recommended a three-tier panchayati raj system (village, block, district)
First adoption 1959 Rajasthan was the first State to inaugurate panchayati raj (at Nagaur, 1959-10-02), followed by Andhra Pradesh
Ashok Mehta Committee 1977 to 1978 Recommended a two-tier system (Zilla Parishad and Mandal Panchayat)
L M Singhvi Committee 1986 Recommended constitutional status for local bodies and regular elections
73rd and 74th Amendments 1992 Gave constitutional status to rural and urban local bodies

The 73rd Amendment, 1992 (panchayats)

Item Fact
Added Part IX (Art 243 to 243-O) and the Eleventh Schedule
In force 1993-04-24 (observed as National Panchayati Raj Day)
Structure Three tiers: village (Gram Panchayat), intermediate (Panchayat Samiti / block), district (Zilla Parishad); the intermediate tier is optional for States with a population not exceeding 20 lakh (Art 243B)
Gram Sabha The body of all persons registered in the electoral rolls of a village within the area of a panchayat (Art 243A); the foundation of the system, exercising the powers the State legislature confers
Term 5 years; if dissolved early, elections must be held within 6 months (Art 243E)
Reservation (Art 243D) Seats reserved for SCs and STs in proportion to their population; not less than one-third of the total seats and of the chairperson posts reserved for women (many States now reserve up to 50 per cent for women)
Chairperson reservation One-third of the offices of chairperson at each level reserved for women, and reserved for SCs and STs by population
Qualifications A person who has attained 21 years of age may be a member (Art 243F)
Elections Conducted by the State Election Commission (Art 243K), a constitutional authority appointed by the Governor
Finances A State Finance Commission reviews the financial position of panchayats every 5 years (Art 243I); panchayats are assigned taxes, duties and grants
Eleventh Schedule 29 functional subjects that may be devolved to panchayats
Audit Accounts audited as the State legislature provides (Art 243J)
Bar on courts Election matters can be challenged only by an election petition (Art 243-O)

A separate law, the Provisions of the Panchayats (Extension to Scheduled Areas) Act, 1996 (PESA), extended the provisions of Part IX to the Fifth Schedule (Scheduled) areas with special safeguards for tribal self-rule, including recognition of the Gram Sabha's competence over local resources, minor forest produce and the prevention of land alienation. This is important for the security and governance response in tribal and left-wing-extremism-affected districts.

The 74th Amendment, 1992 (municipalities)

Item Fact
Added Part IXA (Art 243-P to 243-ZG) and the Twelfth Schedule
In force 1993-06-01
Three types of municipality (Art 243Q) Nagar Panchayat (for a transitional area moving from rural to urban), Municipal Council (for a smaller urban area), Municipal Corporation (for a larger urban area)
Term 5 years; elections within 6 months of early dissolution
Reservation Seats for SCs and STs in proportion to population; not less than one-third for women
Ward Committees To be constituted in municipalities with a population of 3 lakh or more (Art 243S)
District Planning Committee Consolidates the plans of panchayats and municipalities in the district (Art 243ZD)
Metropolitan Planning Committee Prepares the development plan for a metropolitan area (Art 243ZE)
Elections Conducted by the State Election Commission (Art 243ZA)
Finances The State Finance Commission also reviews municipal finances
Twelfth Schedule 18 functional subjects for municipalities

Schedules 11 and 12 (contents at a glance)

  • Eleventh Schedule (29 subjects) for panchayats: agriculture, land improvement and land reform, minor irrigation and water management, animal husbandry, fisheries, social and farm forestry, minor forest produce, small-scale industries, rural housing, drinking water, roads and bridges, rural electrification, poverty-alleviation programmes, education (including primary and secondary schools), adult and non-formal education, libraries, health and sanitation, family welfare, women and child development, social welfare, welfare of the weaker sections, public distribution, and the maintenance of community assets.
  • Twelfth Schedule (18 subjects) for municipalities: urban planning including town planning, regulation of land use and construction, planning for economic and social development, roads and bridges, water supply, public health and sanitation and solid-waste management, fire services, urban forestry and protection of the environment, safeguarding the interests of weaker sections, slum improvement and upgradation, urban poverty alleviation, provision of urban amenities (parks, gardens, playgrounds), promotion of cultural and aesthetic aspects, burials and cremation grounds, cattle pounds, registration of births and deaths, public amenities including street lighting, and the regulation of slaughterhouses and tanneries.

The State Election Commission and the State Finance Commission

Two State-level institutions are the operating machinery of the third tier, and CAPF often confuses them with their Union counterparts:

  • The State Election Commission (SEC) is a constitutional authority (Art 243K for panchayats, Art 243ZA for municipalities). A State Election Commissioner is appointed by the Governor, enjoys conditions of service similar to a High Court judge, and can be removed only in the same manner and on the same grounds as a High Court judge. The SEC, not the Election Commission of India, superintends and conducts all local-body elections and prepares the electoral rolls for them.
  • The State Finance Commission (SFC) is constituted by the Governor every five years (Art 243I, and Art 243Y for municipalities) to review the financial position of panchayats and municipalities and to recommend the distribution of taxes between the State and the local bodies, the assignment of taxes, grants-in-aid, and measures to improve their finances. The Union Finance Commission (Art 280) takes the SFC's recommendations into account when suggesting measures to augment the consolidated funds of the States to supplement local-body resources.

Compulsory versus voluntary provisions

The 73rd and 74th Amendments separate mandatory provisions (which every State must follow) from voluntary ones (left to State discretion). This distinction is a favourite trap.

Compulsory (binding on States) Voluntary (State discretion)
Establishing the Gram Sabha and the three tiers (subject to the 20 lakh exception) Giving representation to MPs and MLAs in the panchayats
Direct elections to all seats and the State Election Commission Reservation for backward classes
Reservation for SCs, STs and women (at least one-third) The exact taxes, fees and tolls assigned to local bodies
A five-year term and elections within six months of dissolution Devolving all 29 (or 18) subjects in the relevant Schedule
The State Finance Commission and audit of accounts Granting financial powers beyond the minimum

Static facts to memorise

Fact 73rd Amendment (panchayats) 74th Amendment (municipalities)
Part added Part IX Part IXA
Articles 243 to 243-O 243-P to 243-ZG
Schedule added Eleventh Twelfth
Number of subjects 29 18
In force 1993-04-24 1993-06-01
Term 5 years 5 years
Reservation for women At least one-third At least one-third
Elections by State Election Commission (Art 243K) State Election Commission (Art 243ZA)
Finance review State Finance Commission, every 5 years (Art 243I) State Finance Commission
Body / officer Fact
Gram Sabha The village electorate; foundation of panchayati raj (Art 243A)
State Election Commission Conducts local-body polls; not the ECI
State Finance Commission Reviews local finances every 5 years (Art 243I)
Intermediate panchayat tier Optional below 20 lakh population (Art 243B)
Minimum age to be a member 21 years (Art 243F)
Ward Committee threshold Population of 3 lakh or more (Art 243S)

Important Articles (Part IX and Part IXA)

Article Subject
Art 243 Definitions (panchayat, Gram Sabha, village)
Art 243A The Gram Sabha
Art 243B Constitution of panchayats (three tiers)
Art 243C Composition of panchayats
Art 243D Reservation of seats (SCs, STs, women)
Art 243E Duration of panchayats (5 years)
Art 243F Disqualifications for membership
Art 243I State Finance Commission
Art 243K State Election Commission (panchayats)
Art 243-O Bar to interference by courts in electoral matters
Art 243Q Constitution of municipalities (three types)
Art 243S Ward Committees (population of 3 lakh or more)
Art 243T Reservation of seats in municipalities
Art 243W Powers and functions of municipalities
Art 243ZA State Election Commission (municipalities)
Art 243ZD District Planning Committee
Art 243ZE Metropolitan Planning Committee
Art 243ZG Bar to interference by courts in electoral matters (municipalities)

Security and human-rights angle (CAPF-distinctive)

  • PESA, 1996 extends self-governance to the Fifth Schedule (Scheduled) Areas and recognises the Gram Sabha's competence over minor forest produce, land and local resources. It is a key instrument in the governance response to left-wing extremism and tribal alienation in the affected districts, since strengthening genuine tribal self-rule is part of the political answer to insurgency. See human rights and internal security and federalism and centre state relations.
  • Local bodies are the lowest tier of grievance redress and the first responders for local public order, disaster relief and welfare delivery; effective local government reduces the alienation that internal-security problems feed on.
  • The mandatory reservation of at least one-third of seats for women (Art 243D and 243T) is a measurable human-rights and social-justice indicator, the kind of empowerment statistic the syllabus asks about.
  • The constitutionalisation of local government deepened participatory democracy, a value protected by basic-structure jurisprudence, and brought millions of women and SC and ST representatives into elected office.

How CAPF asks it

Local-government questions are crisp and date-and-number focused: single-correct on which amendment did what, "how many statements are correct" on the structure and reservations, amendment-to-Part-and-Schedule matching, and assertion-reason on the State Election Commission.

Authored practice

Q1The 73rd Constitutional Amendment Act, 1992, deals with:
  1. AMunicipalities
  2. BPanchayats
  3. CCooperative societies
  4. DThe Union Territories Answer:
  5. BPanchayats. The 74th Amendment deals with municipalities.
Q2Consider the following statements: The Eleventh Schedule contains 29 subjects and the Twelfth Schedule 18. Local-body elections are conducted by the Election Commission of India. At least one-third of the seats in panchayats are reserved for women. How many are correct?
  1. AOnly one
  2. BOnly two
  3. CAll three
  4. DNone Answer:
  5. BOnly two. Statement 2 is wrong; local-body elections are conducted by the State Election Commission (Art 243K).
Q3The intermediate tier of panchayats is optional for States with a population not exceeding:
  1. A10 lakh
  2. B15 lakh
  3. C20 lakh
  4. D25 lakh Answer:
  5. C20 lakh (Art 243B).
Q4Match the amendment with what it added: 1. 73rd Amendment 2. 74th Amendment with A. Part IXA and the Twelfth Schedule B. Part IX and the Eleventh Schedule.
  1. A1-B 2-A
  2. B1-A 2-B
  3. Cboth A
  4. Dboth B Answer:
  5. A.
Q5Assertion
  1. A: Local-body elections are not conducted by the Election Commission of India. Reason (R): They are conducted by the State Election Commission constituted under Art 243K.
  2. ABoth true, R explains A
  3. BBoth true, R does not explain A
  4. CA true, R false
  5. DA false, R true Answer:
  6. A.

Common confusion

  • 73rd versus 74th Amendment: the 73rd is rural (panchayats, Part IX, Eleventh Schedule, 29 subjects); the 74th is urban (municipalities, Part IXA, Twelfth Schedule, 18 subjects).
  • Eleventh (29) versus Twelfth (18) Schedule: the rural schedule has more subjects than the urban one.
  • State Election Commission versus the ECI: local-body polls are run by the State Election Commission (Art 243K, 243ZA), not the Election Commission of India.
  • Gram Sabha versus Gram Panchayat: the Gram Sabha is the whole village electorate (the body of voters); the Gram Panchayat is the elected council.
  • Three panchayat tiers: village (Gram Panchayat), intermediate (Panchayat Samiti / block), district (Zilla Parishad); the intermediate is optional below 20 lakh.
  • Three municipality types: Nagar Panchayat (transitional), Municipal Council (small town), Municipal Corporation (large city).
  • Dates in force: 73rd on 1993-04-24, 74th on 1993-06-01 (both amendments were enacted in 1992).

Memory hook

  • "73 = rural, 74 = urban", and "rural comes first" (73 before 74, panchayats before municipalities).
  • "29 and 18": Eleventh Schedule 29 subjects, Twelfth Schedule 18 (rural has more).
  • "Part IX = panchayats, Part IXA = municipalities" (the A is for the add-on urban part).
  • "243 to 243-O" panchayats; "243-P to 243-ZG" municipalities (P for "place / pura / urban").
  • "One-third for women, 20 lakh for the middle tier, 3 lakh for Ward Committees".

Night before

  • 73rd Amendment (1992): panchayats, Part IX, Eleventh Schedule (29 subjects); in force 1993-04-24.
  • 74th Amendment (1992): municipalities, Part IXA, Twelfth Schedule (18 subjects); in force 1993-06-01.
  • Three panchayat tiers: village, intermediate (block), district; intermediate optional below 20 lakh.
  • Gram Sabha is the foundation (Art 243A); term of local bodies is 5 years; elections within 6 months of dissolution.
  • At least one-third of seats and chairperson posts reserved for women; SC and ST reservation by population.
  • Elections by the State Election Commission (Art 243K, 243ZA), not the ECI.
  • State Finance Commission reviews local finances every 5 years (Art 243I).
  • PESA (1996) extends panchayats to Fifth Schedule (Scheduled) areas with tribal safeguards.

One-line recall

  • Local self-government is the third tier; constitutionalised by the 73rd and 74th Amendments (1992).
  • 73rd Amendment: panchayats, Part IX (Art 243 to 243-O), Eleventh Schedule (29 subjects); in force 1993-04-24.
  • 74th Amendment: municipalities, Part IXA (Art 243-P to 243-ZG), Twelfth Schedule (18 subjects); in force 1993-06-01.
  • Three panchayat tiers: Gram Panchayat (village), Panchayat Samiti (block), Zilla Parishad (district).
  • The intermediate tier is optional for States with a population not exceeding 20 lakh (Art 243B).
  • Gram Sabha is the body of village voters and the foundation of the system (Art 243A).
  • Term of local bodies is 5 years; elections within 6 months of early dissolution (Art 243E).
  • At least one-third of seats and chairperson posts reserved for women (Art 243D, 243T).
  • SC and ST reservation in proportion to population at each level.
  • Minimum age to be a member is 21 years (Art 243F).
  • Local-body elections are conducted by the State Election Commission (Art 243K, 243ZA), not the ECI.
  • The State Finance Commission reviews local finances every 5 years (Art 243I).
  • Three municipality types: Nagar Panchayat, Municipal Council, Municipal Corporation (Art 243Q).
  • Ward Committees in municipalities of 3 lakh or more (Art 243S).
  • District Planning Committee (Art 243ZD) and Metropolitan Planning Committee (Art 243ZE).
  • Article 40 (a Directive Principle) first directed the organisation of village panchayats.
  • Balwant Rai Mehta (1957) recommended a three-tier system; Rajasthan adopted it first (1959).
  • Ashok Mehta (1977) recommended a two-tier system; L M Singhvi (1986) urged constitutional status.
  • PESA (1996) extends Part IX to the Fifth Schedule areas with tribal self-rule safeguards.

Glossary

  • Panchayati raj: the system of rural local self-government with three tiers.
  • Gram Sabha: the assembly of all registered voters of a village (Art 243A).
  • Gram Panchayat: the elected council at the village level.
  • Panchayat Samiti: the intermediate (block) panchayat.
  • Zilla Parishad: the district-level panchayat.
  • Nagar Panchayat: the municipality for a transitional (rural-to-urban) area.
  • Municipal Council: the urban local body for a smaller town.
  • Municipal Corporation: the urban local body for a large city.
  • Ward Committee: a sub-municipal committee in cities of 3 lakh or more (Art 243S).
  • State Election Commission: the constitutional body conducting local-body elections (Art 243K, 243ZA).
  • State Finance Commission: the body reviewing local-body finances every 5 years (Art 243I).
  • Eleventh Schedule: the 29 panchayat subjects.
  • Twelfth Schedule: the 18 municipal subjects.
  • PESA: the Panchayats (Extension to Scheduled Areas) Act, 1996.
  • District Planning Committee: the body consolidating district-level plans (Art 243ZD).
  • Devolution of functions: the transfer of subjects, funds and functionaries to local bodies.
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