Panchayats and Municipalities: The 73rd and 74th Amendments
Panchayati Raj and urban local bodies for UPSC: Parts IX and IXA, compulsory and voluntary provisions, Eleventh and Twelfth Schedules, PESA 1996 and devolution challenges.
SyllabusGS II · Devolution of powers and finances up to local levels and challenges therein
Prerequisites: Directive Principles (Article 40) · State Government · Federalism and Centre-State Relations
The Hook: Why Did Local Elections Stall Over an OBC Quota?
In March 2021, the Supreme Court (Vikas Kishanrao Gawali v. State of Maharashtra) struck down OBC reservation in certain local bodies in Maharashtra. It held that States may reserve local-body seats for backward classes only after satisfying a “triple test”: (1) a dedicated commission to study the nature of backwardness in local bodies, (2) fixing the proportion of reservation local body-wise on that basis, and (3) keeping total reservation for SCs, STs and OBCs within 50%. Several States then had to delay or reschedule local polls until such commissions reported.
The episode raises the question at the heart of this chapter: local bodies are constitutional institutions — so who controls their composition, their elections and their money?
The Core Concept
Article 40 (a Directive Principle) asked the State to organise village panchayats as units of self-government. For four decades this depended on State goodwill: elections were postponed, bodies were superseded, and funds were thin. The 73rd and 74th Constitutional Amendment Acts, 1992 made local government a constitutional requirement.
| Feature | 73rd Amendment (rural) | 74th Amendment (urban) |
|---|---|---|
| Part of Constitution | Part IX (“The Panchayats”) | Part IXA (“The Municipalities”) |
| Articles | 243 to 243O | 243P to 243ZG |
| Schedule | Eleventh — 29 subjects | Twelfth — 18 subjects |
| In force | 24 April 1993 (National Panchayati Raj Day) | 1 June 1993 |
| Basic unit | Gram Sabha (Article 243A) | Wards Committees for population of 3 lakh or more (Article 243S) |
| Planning body | District Planning Committee (Article 243ZD — in Part IXA but covers both) | Metropolitan Planning Committee (Article 243ZE) |
The road to 1992
| Year | Committee / event | Key recommendation or outcome |
|---|---|---|
| 1957 | Balwant Rai Mehta Committee (review of Community Development Programme) | Three-tier “democratic decentralisation” — village, block, district |
| 1959 | Rajasthan (Nagaur, 2 October) | First State to establish Panchayati Raj; Andhra Pradesh followed the same year |
| 1977–78 | Ashok Mehta Committee | Two-tier system (Zila Parishad and Mandal Panchayat); open participation of political parties |
| 1985 | G.V.K. Rao Committee | District as the basic unit of planning |
| 1986 | L.M. Singhvi Committee | Constitutional recognition of local self-government |
| 1989 | 64th Amendment Bill | Passed by the Lok Sabha but defeated in the Rajya Sabha |
| 1992 | 73rd and 74th Amendment Acts | Constitutional status for panchayats and municipalities |
Compulsory vs voluntary provisions (Part IX)
UPSC loves this split: some provisions must be followed by every State; others are left to State legislatures.
| Compulsory | Voluntary (State’s choice) |
|---|---|
| Gram Sabha in every village or group of villages | Powers and functions to be devolved (Eleventh Schedule is a guide, not a mandate) |
| Three-tier system (intermediate tier optional for States with population not exceeding 20 lakh) | Financial powers — authorising panchayats to levy taxes, fees, tolls |
| Direct election of members at all levels | Representation of MPs, MLAs and chairpersons of lower tiers in higher panchayats |
| Indirect election of chairpersons at intermediate and district levels | Manner of electing the village-level chairperson |
| Minimum age of 21 to contest | Reservation for backward classes (Article 243D(6)) |
| Reservation for SCs and STs in proportion to population — in seats and chairpersons’ offices | — |
| Not less than one-third of seats (and chairpersons’ offices) for women, including within SC/ST quotas | — |
| Five-year term; fresh elections before expiry or within six months of dissolution | — |
| State Election Commission (Article 243K) | — |
| State Finance Commission every five years (Article 243-I) | — |
The two commissions every State must have
- State Election Commission (Articles 243K and 243ZA): superintends electoral rolls and elections to panchayats and municipalities. The State Election Commissioner is appointed by the Governor, but can be removed only in the manner and on the grounds of a High Court judge. Its conditions of service cannot be varied to his disadvantage after appointment.
- State Finance Commission (Articles 243-I and 243Y): constituted by the Governor every five years to recommend the sharing of State taxes with local bodies, the taxes they may levy, and grants-in-aid. The Union Finance Commission must also recommend measures to augment a State’s Consolidated Fund for its local bodies (Article 280(3)(bb) and (c)).
The urban side (Part IXA)
Article 243Q requires three kinds of municipalities, chosen by the Governor on the basis of population, density, revenue and other factors:
graph TD
A[Article 243Q: Municipalities] --> B[Nagar Panchayat - area in transition from rural to urban]
A --> C[Municipal Council - smaller urban area]
A --> D[Municipal Corporation - larger urban area]
E[Not covered by Part IXA] --> F[Cantonment Boards - Cantonments Act, 2006]
E --> G[Industrial townships - Article 243Q proviso]The Twelfth Schedule’s 18 subjects include urban planning, regulation of land use, water supply, public health and sanitation, fire services, slum improvement, urban poverty alleviation, and registration of births and deaths. A Metropolitan Planning Committee is required for every metropolitan area (population of 10 lakh or more).
Scheduled Areas: PESA, 1996
Article 243M keeps Part IX out of Scheduled Areas and tribal areas, and out of Nagaland, Meghalaya and Mizoram, unless Parliament extends it. Parliament did so for Fifth Schedule areas through the Provisions of the Panchayats (Extension to the Scheduled Areas) Act, 1996 (PESA), based on the Dilip Singh Bhuria Committee.
- Gram Sabha is the centre: it approves plans, identifies beneficiaries, and must be consulted before land acquisition for development projects and before resettlement.
- Gram Sabhas or panchayats get ownership of minor forest produce, powers to prevent land alienation, manage village markets and control money-lending.
- At least one-half of seats at every level are reserved for STs, and all chairpersons’ posts are reserved for STs.
- Applies to the ten States with Fifth Schedule areas: Andhra Pradesh, Chhattisgarh, Gujarat, Himachal Pradesh, Jharkhand, Madhya Pradesh, Maharashtra, Odisha, Rajasthan and Telangana.
Memory Anchors
Schedule numbers: “Eleven players in a village cricket team, twelve lanes in a city” → Eleventh Schedule = panchayats (29 subjects); Twelfth Schedule = municipalities (18 subjects).
Dates: “73 comes before 74, and April comes before June” → 73rd in force 24 April 1993; 74th in force 1 June 1993.
The “3Fs” of devolution: Funds, Functions, Functionaries — every Mains answer on local government should test all three.
Numbers that recur: 21 (minimum age) · one-third (women) · 20 lakh (no intermediate tier) · 3 lakh (Wards Committees) · 10 lakh (Metropolitan Planning Committee) · six months (election after dissolution).
For Prelims
- The Governor appoints the State Election Commissioner and constitutes the State Finance Commission — not the President, not the Election Commission of India.
- The State Election Commissioner is removable only like a High Court judge.
- Reservation for backward classes in panchayats is optional (Article 243D(6)); for SCs/STs and women it is compulsory.
- Chairpersons of intermediate and district panchayats are elected indirectly; the village chairperson’s mode of election is left to the State.
- Part IX does not apply to Nagaland, Meghalaya and Mizoram; PESA extends it, with modifications, to Fifth Schedule areas — not to Sixth Schedule areas.
- Cantonment Boards are created by Union law (Cantonments Act, 2006) and administered by the Ministry of Defence.
For Mains
- Dimensions: constitutional (Articles 40, 243G, 243W — devolution is “may”, not “shall”); fiscal (weak own revenues, irregular State Finance Commissions, dependence on tied grants); administrative (shortage of staff, parallel bodies and schemes bypassing panchayats); political (proxy representation of elected women, dominance of MLAs and officials); social (Gram Sabha attendance, caste and gender barriers).
- Keywords: democratic decentralisation, subsidiarity, activity mapping, 3Fs, parallel bodies, sarpanch pati or proxy representation, social audit, convergence, participatory planning (Gram Panchayat Development Plans).
- Value-addition: the 2nd Administrative Reforms Commission’s 6th Report, Local Governance (2007), on activity mapping and clear devolution; K. Krishna Murthy v. Union of India (2010) — political backwardness is distinct from social and educational backwardness, and local-body reservation must have an empirical basis; Kishansing Tomar v. Municipal Corporation of Ahmedabad (2006) — State Election Commissions must hold elections on time; Vikas Kishanrao Gawali (2021) — the triple test.
Common Traps
In the News
- March 2021 — Vikas Kishanrao Gawali v. State of Maharashtra lays down the triple test for OBC reservation in local bodies.
- April 2020 — the SVAMITVA scheme for drone-based mapping of rural inhabited land and issue of property cards was launched on National Panchayati Raj Day.
Practice
Prelims
Under Part IX of the Constitution of India, which of the following provisions are compulsory for every State?
- Reservation of not less than one-third of seats for women
- Constitution of a State Finance Commission every five years
- Reservation of seats for backward classes in panchayats
Select the correct answer using the code given below.
Solution
Women’s reservation (Article 243D(3)) and the State Finance Commission (Article 243-I) are compulsory. Reservation for backward classes is an enabling provision under Article 243D(6) — States may provide it.
Answer: A
The State Election Commissioner, who conducts elections to panchayats and municipalities, is appointed by:
Solution
Under Article 243K, the State Election Commissioner is appointed by the Governor. However, he can be removed only in the manner and on the grounds prescribed for a judge of a High Court — a safeguard for independence. The ECI has no role in local elections.
Answer: C
With reference to the Panchayats (Extension to the Scheduled Areas) Act, 1996, how many of the following statements are correct?
- It extends Part IX of the Constitution, with modifications, to Fifth Schedule areas.
- It extends Part IX to Sixth Schedule areas in Assam, Meghalaya, Tripura and Mizoram.
- It gives the Gram Sabha a role in consultation before land acquisition for development projects.
- It reserves not more than one-fourth of seats in each panchayat for Scheduled Tribes.
Solution
Statements 1 and 3 are correct. Statement 2 is wrong — PESA covers Fifth Schedule areas; Sixth Schedule areas have Autonomous District Councils. Statement 4 is wrong — PESA reserves not less than one-half of seats for STs, and all chairpersons’ posts.
Answer: B
Mains
Three decades after the 73rd and 74th Amendments, local bodies in India remain “institutions of self-government” more in law than in practice. Critically examine.
Solution
Introduction: The 73rd and 74th Amendments (1992) gave panchayats and municipalities constitutional status, regular elections, reservation and dedicated election and finance commissions. Yet Article 243G and 243W leave the substance of devolution to State legislatures.
Body:
- Achievements: regular elections in most States; large-scale representation of women, SCs and STs; Gram Sabha as a forum of direct democracy; PESA for tribal self-rule; Gram Panchayat Development Plans.
- Funds: weak own-source revenue; irregular or unimplemented State Finance Commission reports; dependence on tied grants.
- Functions: the Eleventh and Twelfth Schedules are only indicative; parallel bodies and centrally sponsored schemes bypass elected bodies; urban parastatals control water, planning and transport.
- Functionaries: staff remain under State departments; limited technical capacity.
- Political issues: proxy representation of elected women; delayed elections (Kishansing Tomar, 2006, insisted on timely polls); supersession of bodies.
Way forward: activity mapping (2nd ARC, Local Governance, 2007); timely State Finance Commissions; property-tax reform; cadres for local bodies; strengthening Gram and Ward Sabhas.
Conclusion: The constitutional skeleton is in place; the flesh of real power — the 3Fs — still depends on State political will.
Quick Revision
| Point | One-liner |
|---|---|
| Article 40 | DPSP: organise village panchayats |
| 73rd Amendment | Part IX, Articles 243–243O, Eleventh Schedule (29), in force 24 April 1993 |
| 74th Amendment | Part IXA, Articles 243P–243ZG, Twelfth Schedule (18), in force 1 June 1993 |
| Gram Sabha | Article 243A |
| Women | Not less than one-third of seats and chairpersons |
| OBC reservation | Optional; triple test (Gawali, 2021) |
| State Election Commission | Appointed by Governor; removal like a HC judge |
| State Finance Commission | Every five years, by the Governor |
| Metropolitan Planning Committee | Population of 10 lakh or more |
| PESA, 1996 | Fifth Schedule areas; Gram Sabha central; ST reservation at least one-half |
Key Takeaways
- The 73rd and 74th Amendments made local self-government constitutional, but devolution of actual powers remains discretionary for States.
- Know the compulsory vs voluntary split — it is the most-tested Prelims theme in this chapter.
- Elections and finances of local bodies rest on State institutions (SEC and SFC) appointed by the Governor.
- PESA turns the Gram Sabha into the guardian of tribal land, forests and resources in Fifth Schedule areas.
Related Topics
- Local Government — quick revision
- Local Government — practice questions
- Federalism and Centre-State Relations
- Urbanisation: Problems and Remedies
- Social Justice and Welfare Schemes