The term "Panchayati Raj" in India refers to a system of local self-government in rural areas. This system was designed to promote democracy and empower people at the grassroots level. Each state in India has implemented this system through various acts passed by their respective legislative assemblies. The aim is to facilitate rural development by allowing local communities to participate in governance and decision-making processes.

The Panchayati Raj system was officially recognized and strengthened by the 73rd Constitutional Amendment Act, which was enacted in 1992. This amendment is significant because it brought constitutional recognition to rural local self-governments, making them an integral part of India's democratic structure. The act empowers the states to create their own laws governing the Panchayati Raj institutions.

In the framework of the Indian constitution, local governance, including the Panchayati Raj, falls under the jurisdiction of the states. The Constitution of India contains a division of powers between the central government and state governments, as established through the Seventh Schedule. Specifically, the fifth entry of the State List outlines the responsibilities relating to "local government." This means that each state has the authority to design and manage its local government structures, allowing for diversity in how rural governance functions across the country.

The Panchayati Raj system consists of three levels: the village, the block, and the district. Each level has its own set of elected representatives who are responsible for making decisions that affect their communities. This multi-tiered approach ensures that governance is more responsive to local needs and conditions.

Moreover, the 73rd Amendment also mandates the reservation of seats for Scheduled Castes, Scheduled Tribes, and women in these institutions, promoting inclusivity and representation in local governance. As a result, the Panchayati Raj system not only aims to improve rural development through local governance but also seeks to empower marginalized groups in society.

Overall, the establishment of the Panchayati Raj system is a significant step towards decentralizing power in India, ensuring that the voice of rural populations is heard and that they play a crucial role in their own development. Through this system, India strengthens its democratic fabric by fostering participation, accountability, and transparency in governance.

Evolution of Panchayati Raj

The journey towards Panchayati Raj in India began with the Balwantrai Mehta Committee. This committee was set up in January 1957 by the Government of India to look into the Community Development Programme, which started in 1952, and the National Extension Service that began in 1953. The main aim of the committee was to assess how well these programs were working and to provide suggestions for improvement. Balwantrai Mehta was the chairman of this important committee. In November 1957, the committee submitted its report, which became a cornerstone for future local governance in India.

One of the key recommendations of the Balwantrai Mehta Committee was the establishment of a system known as 'democratic decentralization,' which we now call Panchayati Raj. This system is designed to empower local self-governance by creating a structure of elected bodies at different levels. The committee proposed a three-tier system consisting of:

  1. Gram Panchayat: This is the local council for a village, consisting of directly elected representatives from the village community.

  2. Panchayat Samiti: This body operates at the block level and is made up of members indirectly elected from the gram panchayats within that block.

  3. Zila Parishad: This is the highest tier at the district level, which also includes indirectly elected members.

The committee emphasized that these tiers should be connected through indirect elections, ensuring a chain of leadership and responsibility. The gram panchayat is to have direct elections, while the panchayat samiti and zila parishad would involve indirect elections, where representatives from lower levels elect the members for the upper levels.

It was also recommended that all planning and development activities should be managed by these local bodies. Here, the panchayat samiti was designated as the executive authority, while the zila parishad was to serve as an advisory, coordinating, and supervisory body. Additionally, it was suggested that the district collector would serve as the chairman of the zila parishad.

The committee highlighted the importance of transferring genuine power and responsibility to these local bodies. It was crucial that they received adequate resources to perform their functions effectively. Furthermore, they proposed that a mechanism should be created for future devolution of authority so that local bodies could continue to evolve and gain more independence.

In January 1958, the National Development Council accepted these recommendations but allowed states the flexibility to adopt structures that suited their unique local conditions. However, they insisted that the basic principles should be consistent across the nation. Following these developments, Rajasthan became the first state to implement the Panchayati Raj system, with its official launch by the Prime Minister on October 2, 1959, in Nagaur district. Soon after, Andhra Pradesh also embraced this system in the same year, and many other states followed suit.

By the mid-1960s, most states had set up Panchayati Raj institutions; however, there were notable differences in how these systems operated. For instance, while Rajasthan implemented a three-tier structure, Tamil Nadu adopted a two-tier system, and West Bengal adopted a four-tier arrangement. The influence and power of the panchayat samiti and zila parishad varied considerably across different states. In Rajasthan and Andhra Pradesh, the panchayat samiti wielded considerable power as the block level was the main focus for planning and development. Conversely, in states like Maharashtra and Gujarat, the zila parishad was more powerful, with the district being the focal point.

Some states even went further by establishing Nyaya Panchayats, which were special judicial panchayats designed to handle minor civil and criminal cases at the local level. This blending of functions showcases the versatility and importance of Panchayati Raj in the governance framework of India.

Constitutional Basis

The establishment of Panchayati Raj has also been supported by Article 40 of the Indian Constitution, which directs the state to take steps to organize village panchayats and endow them with the necessary powers and authority. In 1992, the 73rd Amendment to the Constitution further strengthened the framework for Panchayati Raj by providing constitutional status to these local self-governing bodies. This amendment laid down the framework for the composition, elections, and powers of Panchayati Raj institutions, ensuring a more uniform and participatory approach to local governance across the country.

Therefore, the evolution of Panchayati Raj is a significant chapter in the history of Indian governance, aimed at enhancing local self-governance and ensuring that the voices of the rural populace are heard and represented in the larger democratic framework of the country.

Since the year 1960, various study teams, committees, and working groups have been set up in India to analyze and improve the functioning of the Panchayati Raj system. The Panchayati Raj system is the system of local self-government in rural areas of India. It aims to promote grassroots democracy by allowing villagers to have a say in their governance.

These groups were formed to address different aspects of the Panchayati Raj system, helping to evaluate its effectiveness, challenges, and areas needing improvement. Over the decades, multiple committees have been tasked with studying how well this system is working and what changes could make it more efficient and beneficial for rural communities.

For example, the Balwant Rai Mehta Committee in 1957 emphasized the need for a three-tier system of Panchayati Raj, consisting of the Gram Panchayat at the village level, the Panchayat Samiti at the block level, and the Zila Parishad at the district level. This recommendation significantly shaped the structure of local governance in India. Following this, the Ashok Mehta Committee in 1977 suggested a two-tier system, focusing on a more decentralized approach.

Additionally, the 73rd Amendment to the Indian Constitution, enacted in 1992, provided constitutional status to the Panchayati Raj system. This amendment, enshrined in Articles 243 to 243O, laid down the framework for the establishment of Panchayati Raj institutions. It mandates the establishment of a three-tier system of local governance for villages and provides for direct elections to these bodies, ensuring that local representatives are chosen by the people.

The articles dictate various aspects such as the composition of the Panchayati Raj institutions, the election process, reservation of seats for Scheduled Castes, Scheduled Tribes, and women, and the powers and responsibilities of these institutions. For instance, Article 243D ensures the reservation of not less than one-third of the total number of seats for women in every Panchayat, which has been a significant step towards gender equality in local governance.

Overall, the various study teams and committees appointed since 1960 have played a crucial role in shaping the Panchayati Raj system, making it more responsive to the needs of rural communities in India. They have collectively contributed to the evolution of local governance, ensuring that it is democratic, inclusive, and effective in addressing local issues.

Ashok Mehta Committee: An Overview

In December 1977, the Janata Government in India set up a committee to improve the panchayati raj system, which is a system of local self-government in villages. This committee was led by Ashok Mehta. By August 1978, the committee submitted its report with 132 important suggestions aimed at reviving and enhancing the functioning of panchayati raj institutions, which had been facing difficulties.

One of the main suggestions was to change the existing three-tier system of panchayati raj to a simpler two-tier system. In this new structure, there would be a zila parishad at the district level, and below it, a mandal panchayat, which would include a group of villages with a total population between 15,000 to 20,000. This change was aimed at making the system more manageable and effective.

The report emphasized that districts should serve as the first point of local governance and should operate with active public oversight. Furthermore, the zila parishad would take on the executive role, carrying the responsibility for planning and decision-making at the district level.

Another key recommendation was to allow political parties to participate officially in elections for the panchayati raj institutions. This would ensure greater political engagement and accountability. Additionally, it suggested that these local bodies should have the authority to collect taxes, enabling them to manage their finances independently.

Social accountability was also an essential focus. The committee recommended that regular social audits should be conducted by a district-level agency and a committee of elected members to ensure that funds meant for underprivileged communities are being utilized effectively. The report also suggested that state governments should not have the power to replace panchayati raj institutions unless absolutely necessary, and in such cases, elections should be called within six months of the takeover.

Another important point addressed in the report was the separation of nyaya panchayats, which handle legal matters, from development panchayats. The nyaya panchayats should be led by a judge with the appropriate qualifications. Moreover, it was recommended that the chief electoral officer of each state, in coordination with the chief election commissioner, should oversee the elections for panchayati raj institutions.

The Ashok Mehta Committee also proposed transferring various development responsibilities to the zila parishad, ensuring that all development staff operated under its jurisdiction. The committee recognized the significant role voluntary organizations could play in garnering public support for panchayati raj systems and suggested that each state should appoint a dedicated minister for panchayati raj functions within the state cabinet.

Additionally, it was recommended that reserved seats for Scheduled Castes (SCs) and Scheduled Tribes (STs) in panchayati raj bodies should be based on their population percentages. One of the most impactful suggestions was to give constitutional recognition to panchayati raj institutions. This recognition would enhance their status and ensure their continued operation.

Unfortunately, due to the fall of the Janata Government before these recommendations could be acted upon at the national level, very little progress was made. However, three states—Karnataka, West Bengal, and Andhra Pradesh—took initiatives inspired by the Ashok Mehta Committee's recommendations to revitalize their panchayati raj institutions.

In terms of constitutional backing, Article 40 of the Indian Constitution encourages the organization of village panchayats, emphasizing the need for the state to take steps toward establishing a system of local governance. Further enhancements and details about local governance structures can be found in the 73rd Amendment to the Constitution, enacted in 1992, which provides constitutional status to panchayati raj institutions in India. This amendment has been pivotal in shaping the framework for local self-governance and aims to enhance democratic participation at the grassroots level.

The work of the Ashok Mehta Committee remains a significant milestone in the ongoing journey towards strengthening democratic institutions at the local level in India.

The G.V.K. Rao Committee was established in 1985 by the Planning Commission to review how the Indian government was managing rural development and poverty alleviation programs. The committee was led by G.V.K. Rao and found that the processes for developing rural areas had become overly complicated and disconnected from local governance bodies known as the Panchayati Raj institutions, which are designed to promote democracy at the grassroots level. This disconnection made it challenging for local communities to benefit from development efforts, leading to a condition that was described as "grass without roots." This means that, while there were many programs in place, they did not effectively reach or serve the local populations they were meant to help.

To address these challenges, the committee made several important recommendations aimed at strengthening the Panchayati Raj system. One of the main points was that the Zila Parishad, or district council, should play a crucial role in planning and managing development at the district level. The committee suggested that the district is the most appropriate unit for development planning, and the Zila Parishad should be the main body responsible for managing all development programs within that district.

The committee also indicated that Panchayati Raj institutions, at both the district and local levels, should have a significant role in planning, implementing, and monitoring rural development programs. This would enable better targeting of resources and efforts towards actual community needs. Furthermore, it suggested that some responsibilities for planning that were handled by the state government should be transferred to district-level units to enhance decentralized planning. This decentralization would enable local leaders to make decisions that directly impact their communities.

Additionally, the committee proposed the creation of a position called the District Development Commissioner, who would act as the chief executive officer for the Zila Parishad. This individual would be responsible for coordinating all development activities at the district level. Another important recommendation was to ensure that elections for Panchayati Raj institutions were held regularly to maintain democratic processes and representation, as the committee found delays in elections across several states.

In terms of its significance, the G.V.K. Rao Committee's recommendations emphasized a shift towards decentralized planning in contrast to earlier reports such as those from the Dantwala and Hanumantha Rao Committees, which also focused on district-level planning but placed more emphasis on the role of the District Collector. The Hanumantha Rao Committee suggested that district planning bodies could be headed by either the District Collector or a minister, with the Collector taking a central role in coordinating planning and development activities.

The framework laid out by the G.V.K. Rao Committee aligns with various Articles of the Indian Constitution that promote the establishment of Panchayati Raj institutions. For example, Article 40 directs the State to organize village panchayats and empower them to function as units of self-government. Furthermore, the 73rd Amendment to the Constitution, enacted in 1992, reinforced the role and structure of Panchayati Raj at three levels: the Gram Panchayat (village level), the Mandal or Block level, and the Zila Parishad (district level).

The recommendations of the G.V.K. Rao Committee mark a significant step towards the empowerment of local governance in India, fostering a system where local voices are heard in the planning and execution of development goals. This is crucial for ensuring that programs effectively address the specific needs of rural communities, ultimately reducing poverty and enhancing the quality of life for many people across the country.

In 1986, during the government of Prime Minister Rajiv Gandhi, a committee was set up to improve the Panchayati Raj system in India. This committee was chaired by L.M. Singhvi and was tasked with creating a detailed proposal on how to boost democracy and development at the local level through the Panchayati Raj institutions. The recommendations made by this committee were significant and aimed at strengthening local governance in rural areas.

One of the most important suggestions was that Panchayati Raj institutions should be recognized in the Constitution of India. The committee argued for adding a new chapter that would formally acknowledge these institutions, thereby ensuring their protection and independence. This recognition would help maintain the identity and integrity of these bodies, preventing any unwarranted interference or challenges to their authority.

The committee also highlighted the need for regular, free, and fair elections for the Panchayati Raj institutions to ensure that local governance remains democratic and accountable. To achieve this, it proposed specific constitutional provisions to outline how elections should be conducted.

Additionally, the Singhvi Committee recommended the establishment of Nyaya Panchayats, or justice committees, for groups of villages. This would make it easier for villagers to resolve disputes locally and strengthen the justice system in rural areas. They also suggested reorganizing villages to improve the effectiveness of Gram Panchayats, which are the smallest units of local self-government in the Panchayati Raj system.

The importance of the Gram Sabha, which consists of all eligible voters in a village, was also emphasized. The committee referred to the Gram Sabha as a representation of direct democracy, where people can participate actively in decision-making processes regarding local governance.

Moreover, the committee recognized that in order to function effectively, Gram Panchayats should have more financial resources. This would enable them to undertake development projects and provide essential services to the community. To handle disputes related to the Panchayati Raj system, such as election issues or conflicts regarding the functioning of these bodies, the committee suggested that judicial tribunals be set up in each state. These tribunals would have the authority to adjudicate controversies, thereby ensuring that the Panchayati Raj institutions can operate smoothly and fairly.

In the broader context of Indian constitution, these recommendations align with Articles 40 and 243 to 243P of the Indian Constitution. Article 40 directs the state to organize village Panchayats, and Articles 243 to 243P specifically define the structure, composition, and powers of the Panchayati Raj institutions at different levels, promoting grassroots democracy. Overall, the L.M. Singhvi Committee's recommendations were aimed at making local governance stronger and more participatory, essential for leading effective development in rural India.

In 1988, the government created a special committee called the Thungon Committee, named after its leader, P.K. Thungon. This committee was formed as part of the Consultative Committee of Parliament to take a closer look at how political and administrative functions were organized at the district level, especially when it came to planning for development in those areas.

The main focus of the Thungon Committee was to make the Panchayati Raj system stronger. This system is a form of local self-government in rural India, which allows villagers to participate actively in decision-making related to their own development and administration. The committee made several important suggestions to enhance this system.

Firstly, the Thungon Committee recommended that Panchayati Raj bodies should be recognized in the Constitution of India. This is crucial because it would give them a legal status and ensure that they have the authority to operate effectively. Secondly, it suggested that there should be a three-tier structure for Panchayati Raj, which means that there should be elected bodies at three levels: the village level (Gram Panchayat), the block level (Panchayat Samiti), and the district level (Zilla Parishad). The Zilla Parishad would play a central role in this system, acting as the main body responsible for planning and development in the district.

Another significant recommendation was that the term of the Panchayati Raj bodies should be set for five years. This means that once elected, the members would serve for five years before new elections are held. The committee suggested that, in case a Panchayati Raj body needs to be temporarily suspended, this should not last more than six months.

To further enhance planning and coordination, the committee proposed the creation of a planning and coordination committee at the state level, headed by the minister in charge of planning. This committee would include presidents of Zilla Parishads, ensuring that local voices are heard in state-level decisions.

The Thungon Committee also emphasized the need for a clear list of responsibilities and subjects for the Panchayati Raj system, which should be added to the Constitution. This would provide clarity on what functions the local bodies could perform. Furthermore, the committee highlighted the importance of reserving seats for different communities in the Panchayati Raj bodies. This reservation should align with the population ratios, ensuring representation for various social groups, including women, to promote gender equality.

Additionally, the committee recommended establishing a state finance commission in each state. This commission would set the rules and guidelines on how finances could be shared with the Panchayati Raj institutions, ensuring they have the necessary funds to operate effectively. Lastly, it was stated that the district collector should be the chief executive officer of the Zilla Parishad, which would help in maintaining an efficient administration within the district.

These recommendations from the Thungon Committee were instrumental in shaping the future of local self-governance in India. They laid a foundation for various articles in the Indian Constitution, particularly Article 40, which directs the state to organize village panchayats and make them units of self-government. The provisions regarding the structure and powers of the Panchayati Raj institutions were further detailed in the 73rd Amendment to the Constitution, passed in 1992, which incorporates many of the Thungon Committee's suggestions.

Gadgil Committee and Its Recommendations for Panchayati Raj

In 1988, the Congress Party set up a committee to improve local self-governance in India. This committee, known as the Gadgil Committee, was led by V.N. Gadgil. Its main goal was to find ways to make Panchayati Raj institutions more effective. Panchayati Raj refers to the system of local self-governance in rural areas of India, where local governments, or "panchayats," function at various levels: village, block, and district.

The Gadgil Committee made several important recommendations to strengthen these institutions. One of its key proposals was to give the Panchayati Raj institutions a constitutional status. This means that these local bodies would be recognized by the Constitution of India, ensuring their functioning is backed by law and giving them more authority to operate effectively.

Another recommendation was to establish a three-tier system of Panchayati Raj. This system includes panchayats at three levels: at the village level, block level, and district level. Each level plays a role in governance and development, making it easier to address local issues.

The committee also suggested that the term for Panchayati Raj institutions should be fixed at five years. This means that every five years, local elections would be held, allowing citizens to choose their representatives. To ensure democratic practices, the committee recommended that members of the Panchayats at all three levels should be directly elected by the people.

In addition, the Gadgil Committee emphasized the importance of representation. It proposed reservations for Scheduled Castes (SCs), Scheduled Tribes (STs), and women in the Panchayati Raj institutions. This step was essential to promote inclusivity and ensure that marginalized voices are heard in local governance.

Furthermore, the committee recommended that the Panchayati Raj bodies should be responsible for creating and carrying out plans for the socio-economic development of their areas. To facilitate this, a clear list of subjects that fall under their authority should be specified in the constitution. This would enable local governments to take charge of their development without excessive interference from state or central governments.

Another significant suggestion was to empower the Panchayati Raj institutions to levy and collect taxes and duties. This financial autonomy would provide them with the necessary funds to implement their plans effectively.

To ensure better financial management, the Gadgil Committee advised the establishment of a State Finance Commission. This commission would allocate finances to the panchayats and help maintain their financial health. Additionally, the committee recommended creating a State Election Commission to oversee local elections for the Panchayati Raj, ensuring that they are conducted fairly and transparently.

These recommendations laid the groundwork for drafting an amendment bill aimed at providing constitutional status and protection to the Panchayati Raj institutions. This led to the introduction of the 73rd Amendment to the Constitution of India in 1992, which incorporated many of these ideas. Articles 243 to 243-O were added to the Constitution, providing a clear legal structure for Panchayati Raj institutions and mandating their establishment across all states.

Overall, the work of the Gadgil Committee plays a crucial role in emphasizing the importance of local governance in India, enabling communities to participate in their development and ensuring that they have a voice in the democratic process.

Constitutionalization of Panchayati Raj: Evolution of Governance in India

The Rajiv Gandhi Government, which served from 1984 to 1989, took a significant step towards enhancing local governance by introducing the 64th Constitutional Amendment Bill in July 1989. This bill aimed to establish panchayati raj institutions, which are local self-governments in rural areas, into the Constitution. The goal was to empower these institutions and broaden their reach so that they could function more effectively in the democratic framework of India.

The bill passed in the Lok Sabha, the lower house of Parliament, in August 1989. However, it faced strong opposition in the Rajya Sabha, the upper house, where it was not approved. Critics of the bill argued that it would lead to increased centralization of power, undermining the federal structure of governance in India. In India, the balance of power between the central government and state governments is defined by the Constitution, specifically Articles 245 to 254, which deal with the distribution of legislative powers between the Centre and the states.

After Rajiv Gandhi's tenure, the National Front Government, led by Prime Minister V.P. Singh, took office in November 1989. This government also recognized the importance of panchayati raj institutions and announced plans to strengthen them. To facilitate this, a two-day conference was convened in June 1990. This conference, which included state chief ministers, aimed to discuss and finalize proposals to reinforce local governance. Following these discussions, a new constitutional amendment bill was introduced in the Lok Sabha in September 1990. Unfortunately, the government fell, leading to the lapse of the bill.

Then came the Congress Government under Prime Minister P.V. Narasimha Rao. This government revisited the proposal for constitutionalizing panchayati raj institutions and made several modifications to address the concerns raised earlier. In September 1991, they introduced a fresh constitutional amendment bill in the Lok Sabha.

This process ultimately led to the establishment of the 73rd Constitutional Amendment Act in 1992, which was enacted to bolster the role and authority of panchayati raj institutions across India. The Act stipulates regular elections for these institutions every five years, ensures reservation of seats for Scheduled Castes, Scheduled Tribes, and women, and provides for the establishment of a three-tier system of panchayati raj, consisting of the village level (Gram Panchayat), block level (Panchayat Samiti), and district level (Zila Parishad).

The 73rd Amendment came into effect on April 24, 1993, and marked a significant turning point in enhancing grassroots democracy in India. It is enshrined in Article 243 to Article 243-O of the Indian Constitution, which outlines the framework for the governance of rural areas. This constitutional backing has significantly empowered local self-governments to take charge of their development, making them instrumental in implementing government schemes at the grassroots level.

In summary, the journey to constitutionalize panchayati raj institutions reflects a series of political will, reforms, and legislative efforts aimed at decentralizing power and promoting effective local governance in India. The amendments not only institutionalize local self-governance but also represent a commitment to enhancing democratic participation at every level of governance in the country.

The 73rd Amendment Act of 1992 is an important law in India that strengthened local self-governance by establishing a system of Panchayati Raj, which refers to the governance at the village level through elected bodies. This Act introduced a new part to the Indian Constitution, specifically Part-IX, which is focused on "The Panchayats." It includes provisions from Articles 243 to 243-O, outlining how local governance should function across the country. The Act also introduced an Eleventh Schedule containing 29 functions that Panchayats are responsible for managing.

One of the key principles behind this amendment is based on Article 40 of the Constitution, which encourages the state to create village Panchayats and empower them to function effectively. This article is part of the Directive Principles of State Policy, which guides the state to promote social and economic welfare. The 73rd Amendment provides a constitutional guarantee for the establishment and functioning of Panchayati Raj institutions, ensuring that state governments must follow the new system.

The Act sets forth both mandatory and optional provisions for states. Mandatory provisions must be included in state laws creating Panchayat systems, while optional provisions allow states to tailor their approach based on local needs, like geographical and administrative factors. This duality reflects an effort to create a grassroots level democracy where communities can directly participate in governance, thereby shifting from a representative democracy to a participatory one.

A fundamental component of the 73rd Amendment is the establishment of the Gram Sabha, which is an assembly of all registered voters in a village Panchayat area. This body serves as the foundation of the Panchayati Raj system, giving local people a voice and allowing them to contribute to decision-making at the village level.

The Act also stipulated a three-tier structure of Panchayati Raj across states, which includes levels of governance at the village, intermediate, and district levels. This uniformity helps in ensuring that governance is effective and accountable at various administrative levels. States with populations under 20 lakh (2 million) do not have to form intermediate Panchayats.

Elections to these Panchayati Raj institutions are conducted directly by the people. Members of Panchayats at all levels are elected through a direct vote, while the chairpersons of intermediate and district Panchayats are elected indirectly by their peers. This ensures that representatives are chosen democratically and are accountable to the local population. The act further ensures representation for marginalized communities, such as Scheduled Castes (SC) and Scheduled Tribes (ST), by reserving seats for them proportional to their population.

In terms of gender representation, the 73rd Amendment mandates that at least one-third of the seats in Panchayati Raj institutions are reserved for women. This step aims to empower women and promote their participation in local governance.

The Act establishes a five-year term for Panchayats, with provisions for elections to be conducted either when this duration ends or within six months if a Panchayat is dissolved prematurely. However, if the remaining term is less than six months, elections are not necessary.

The Act lays down disqualifications for members of Panchayats, similar to those for state legislature elections. For instance, individuals disqualified under laws governing state elections may not serve in Panchayati Raj institutions. However, those who are at least 21 years old can stand for election, even if they are under 25.

To ensure free and fair elections at the Panchayat level, the superintendence of these elections is entrusted to the State Election Commission, which operates independently. This commission is composed of a State Election Commissioner appointed by the governor, who ensures that elections are conducted according to the law.

The powers and functions of the Panchayati Raj institutions are outlined in the act, allowing the state legislature to assign authority to ensure that these bodies can make decisions on economic development and social justice. Moreover, the financing of Panchayati Raj institutions is outlined, allowing for taxes to be collected at the local level and providing for grants from the state government.

There is also a provision for the creation of a Finance Commission every five years to review and recommend financial parameters for the Panchayats, ensuring that they have the necessary funds to carry out their functions.

While these provisions generally cover all states and Union Territories, there are exceptions. For example, regions like Nagaland, Meghalaya, Mizoram, and certain tribal areas are exempt from the 73rd Amendment, although Parliament may extend it to these areas as well.

The act also discourages court interference in electoral matters related to Panchayats, ensuring that the electoral processes remain free from legal challenges unless prescribed by law.

Lastly, the Eleventh Schedule outlines 29 specific functions that are allocated to Panchayati Raj institutions, including agriculture, rural housing, education, health care, and social welfare, among others. This allocation empowers local bodies to address issues directly impacting their communities.

Through the 73rd Amendment Act of 1992, India has made significant strides toward enhancing democratic governance at the grassroots level. Comparing the responsibilities and powers now afforded to local governance structures reveals the progress in India's commitment to self-governance and decentralized administration.

Compulsory and Voluntary Provisions of the 73rd Constitutional Amendment Act

The 73rd Constitutional Amendment Act, enacted in 1992, is a significant milestone in strengthening local self-governance in India. This amendment addresses the framework for Panchayati Raj, which involves the administration of rural areas through local governing bodies. It is important to understand the mandatory (compulsory) and optional (voluntary) provisions introduced by this Amendment to grasp the structure and powers of these local bodies.

Compulsory Provisions

The compulsory provisions outlined in the 73rd Amendment form the backbone of the Panchayati Raj system. They include:

  1. Establishment of the Gram Sabha: The Act mandates the formation of a Gram Sabha, which consists of all the registered voters in a village or a group of villages. This body plays a crucial role in local governance.

  2. Panchayat Levels: The Act establishes three levels of Panchayati Raj institutions—at the village, intermediate (block), and district levels. This hierarchical structure ensures representation at different local levels.

  3. Elections to the Panchayats: All seats in the Panchayats at the three levels are filled through direct elections. This means that people have the right to elect their representatives directly.

  4. Chairperson Elections: While members are elected directly, the chairpersons at the intermediate and district levels are elected indirectly by the elected members of the Panchayats.

  5. Voting Rights: Elected chairpersons and members have voting rights, enabling them to participate fully in the decision-making process.

  6. Age Requirement for Contesting Elections: Individuals must be at least 21 years old to contest for elections to the Panchayati Raj institutions, ensuring that candidates are mature enough to handle governance responsibilities.

  7. Reservation of Seats: The Act mandates the reservation of seats for Scheduled Castes (SCs) and Scheduled Tribes (STs) in all levels of Panchayati Raj institutions, ensuring representation for marginalized communities.

  8. Women’s Reservation: One-third of the seats for both members and chairpersons are reserved for women across all three levels. This provision promotes gender equality in local governance.

  9. Tenure of Panchayats: The Panchayati Raj institutions have a fixed tenure of five years. If any Panchayat is dissolved or superseded, fresh elections must be held within six months to maintain continuity.

  10. State Election Commission: The amendment requires the establishment of a State Election Commission for conducting free and fair elections to the Panchayati Raj institutions.

  11. State Finance Commission: A State Finance Commission is to be constituted every five years to review and recommend measures for maintaining the financial health of the Panchayati Raj institutions.

Voluntary Provisions

In addition to mandatory provisions, the 73rd Amendment contains several voluntary provisions, which allow states to adapt the framework to meet local needs by enabling further autonomy and functionality at the village level. These include:

  1. Powers of the Gram Sabha: States can empower the Gram Sabha with specific functions and responsibilities, thereby encouraging local participation in governance.

  2. Election of Chairpersons: States have the discretion to decide how the chairperson of the village Panchayat will be elected.

  3. Representation in Higher Panchayats: Chairpersons from lower levels can be granted representation in the intermediate and district panchayats, ensuring their voices are heard at higher levels.

  4. Representation of Legislators: Members of Parliament and state legislature can be allowed to participate in the Panchayati Raj institutions that fall within their constituency.

  5. Reservation for Backward Classes: States can choose to reserve seats for backward classes in the Panchayati Raj institutions, promoting inclusivity.

  6. Devolution of Powers: The Act allows for the devolution of powers, functions, and responsibilities to Panchayats, enabling them to act as institutions of self-government.

  7. Financial Authority: Panchayati Raj institutions can be granted the authority to levy and collect taxes, tolls, and fees, thereby increasing their financial independence.

  8. Grants-in-Aid: The state government can provide grants to the Panchayats from the consolidated fund, supporting their operation and development projects.

  9. Constitution of Funds: States can establish specific funds where all financial resources of the Panchayats will be credited, ensuring better management of funds.

Conclusion

The 73rd Constitutional Amendment does not just organize local governance in rural India; it also aims to empower these bodies to function independently and effectively. Understanding the compulsory and voluntary provisions is essential as they lay the foundation for decentralized governance, ensuring that local communities have a say in their development and administration. Articles related to this act are primarily found in Part IX of the Indian Constitution, which helps emphasizes the importance of strengthening democracy at the grassroots level and provides a structured approach to local governance that aims to be inclusive, participatory, and empowering.

PESA Act of 1996 (Extension Act)

The PESA Act, short for the "Provisions of the Panchayats (Extension to the Scheduled Areas) Act," was enacted in 1996 to extend certain provisions related to local self-governance to the Scheduled Areas of India. These areas are specified in the Fifth Schedule of the Indian Constitution, which deals with the rights and governance of tribal populations. While the rules in Part IX of the Constitution about Panchayati Raj (the system of local self-governance) do not automatically apply to these regions, the Parliament can extend them with necessary modifications.

As of now, ten states in India have areas classified under the Fifth Schedule: Andhra Pradesh, Telangana, Chhattisgarh, Gujarat, Himachal Pradesh, Jharkhand, Madhya Pradesh, Maharashtra, Odisha, and Rajasthan. Each of these states has made changes to their own Panchayati Raj Acts to comply with the PESA Act.

Objectives of the PESA Act

The PESA Act serves several important purposes:

First, it aims to extend the provisions of local governance found in Part IX of the Constitution to the Scheduled Areas, with some adjustments to fit the local contexts.

Secondly, it seeks to empower the substantial tribal population by ensuring self-rule, allowing these communities to manage their own affairs more effectively.

Thirdly, the Act intends to foster participatory democracy in villages, making the Gram Sabha (village assembly) the central point for decision-making and administration.

Another key aim is to develop an administrative framework that aligns with the traditional practices of the tribal communities, thereby respecting their customs and ways of life.

The Act also places importance on preserving the traditions and cultural identities of tribal communities. It empowers Panchayats at various levels with the authority necessary to meet the unique needs of the tribal populations.

Finally, the Act is designed to prevent higher-level Panchayats from overpowering local Panchayats, ensuring that governance remains rooted in local communities.

Features of the PESA Act

The PESA Act has several notable features that detail how it should be implemented:

State regulations governing Panchayats in Scheduled Areas must respect local customs, social norms, and traditional resource management practices. Villages are defined as groups of individuals or communities that manage their affairs in accordance with these traditions. Each village is required to have a Gram Sabha composed of voters registered in that area.

Every Gram Sabha holds vital responsibilities, including preserving community customs, cultural identities, and conflict resolution practices. Moreover, the Gram Sabha must approve any plans for social or economic development before they are executed by the village Panchayat, and it plays a major role in identifying beneficiaries for various welfare schemes.

Panchayats at the village level must secure a certification of fund utilization from the Gram Sabha for any development activities. The Act mandates that the reservation of seats in Panchayats should reflect the population demographics, ensuring that Scheduled Tribes have at least half of the total seats. Additionally, all chairperson positions at every Panchayat level are reserved for Scheduled Tribes.

The state government can also nominate members from the Scheduled Tribes without representation in the Panchayats, but the total nominations cannot exceed one-tenth of the total members elected.

When it comes to land acquisition for development projects or relocating individuals affected by these projects, both the Gram Sabha and the appropriate Panchayats must be consulted. However, the planning and execution of such projects will be managed at the state level.

Moreover, management responsibilities for local water bodies are transferred to the Panchayats, and recommendations from the Gram Sabha are necessary for granting mining leases for minor minerals.

The PESA Act endows Panchayats with various powers, such as regulating alcohol sales, managing forest produce, preventing land alienation, and overseeing local markets and money lending practices. The Act reinforces local governance, ensuring that higher-level Panchayats cannot interfere with the lower-level Panchayats or Gram Sabhas.

Lastly, the PESA Act includes a provision that any existing laws inconsistent with it will be nullified one year after the Act's presidential approval, although incumbent Panchayats can continue until their term ends unless dissolved sooner.

In summary, the PESA Act is a significant piece of legislation aimed at promoting local self-governance in tribal areas. It seeks to empower tribal communities, safeguard their traditions, and ensure that development aligns with their needs and practices, thus fostering a more inclusive approach to governance in India.

Finances of Panchayati Raj in India

The Second Administrative Reforms Commission of India, which functioned from 2005 to 2009, has provided a clear overview of how Panchayati Raj Institutions (PRIs) are funded and the financial challenges they face. Understanding the financial aspects of PRIs is crucial because their autonomy and effectiveness depend significantly on their financial health, including their ability to raise and manage their own funds.

According to Part IX of the Indian Constitution, the Panchayati Raj system is designed to empower local self-governments in rural areas. However, these institutions primarily rely on various sources of funding. The primary sources of revenue for Panchayati Raj Institutions include:

  1. Grants from the Union Government: These funds are allocated based on the recommendations of the Central Finance Commission, as mentioned in Article 280 of the Constitution. This article outlines the responsibilities of the Central Finance Commission in distributing financial resources to various levels of government.

  2. Devolution from State Government: According to Article 243-1, states are expected to share financial resources with the Panchayati Raj Institutions based on the recommendations of the State Finance Commission. This promotes fiscal federalism and autonomy for local bodies.

  3. Loans and Grants from State Governments: Panchayati Raj Institutions can also receive financial assistance in the form of loans or grants directly from their respective State Governments.

  4. Special Allocations for Specific Programs: The government often provides funds through Centrally Sponsored Schemes and Additional Central Assistance, which are designated for specific projects and initiatives.

  5. Internal Revenue Generation: This includes both tax and non-tax sources that Panchayati Raj Institutions can generate themselves. However, many Panchayats struggle with this aspect.

Despite these mechanisms for funding, many states have not given enough importance to financially empowering Panchayati Raj Institutions. This has led to a situation where the revenue generated by the Panchayats themselves is often very low. States like Kerala, Karnataka, and Tamil Nadu have made efforts towards empowering PRIs, but they still primarily depend on grants from the government.

From this scenario, several observations can be made:

Even though the Union and State Governments provide substantial funds to Panchayati Raj Institutions, the real value lies in their ability to generate their own resources. A local taxation system is not only crucial for resource generation but also fosters community involvement and accountability.

Among the three tiers of Panchayati Raj, the Gram Panchayats (the lowest tier) are in a better position regarding tax generation, as they have defined taxation powers. Meanwhile, the Intermediate and District Panchayats have a limited scope for generating revenue, primarily restricted to secondary areas such as services related to transportation, markets, and municipal services.

State legislation has typically granted most tax powers to Village Panchayats, allowing them to impose various taxes, such as property tax, profession tax, land cess, entertainment tax, and others. This system highlights the need for strong local governance and financial independence to meet the demands of rural development effectively.

Overall, while financial stability for Panchayati Raj Institutions in India is essential for their functioning and effectiveness, it is equally important to encourage local revenue generation and ensure that these bodies have the autonomy to manage their resources effectively. Addressing these financial challenges can enhance the overall empowerment of local self-governments in rural India, contributing to better governance and community development.

Reasons for Ineffective Performance of Panchayati Raj Institutions

Despite being given constitutional recognition through the 73rd Amendment Act in 1992, which aimed to empower local self-governments in rural areas called Panchayati Raj Institutions (PRIs), their performance has not been as good as expected. Several issues hinder these institutions from operating effectively and fulfilling their roles.

One major problem is the lack of adequate devolution. This means that many states have not transferred the necessary powers, funds, and personnel, often referred to as the three "Fs" (functions, funds, and functionaries) to the PRIs. For the PRIs to effectively serve their communities, they need appropriate resources that match the responsibilities assigned to them. Although State Finance Commissions (SFCs) provide recommendations on fund distribution, many states have failed to implement these suggestions, which limits the financial independence and growth of the PRIs.

Another issue is the excessive control by bureaucracy. In some areas, local governing bodies, like Gram Panchayats, have limited authority and often find themselves subordinate to higher bureaucratic offices. This situation forces Gram Panchayat leaders (Sarpanches) to spend a lot of their time seeking approvals and funds from block offices. This undermines their role as elected representatives and impacts their ability to support community needs directly.

Furthermore, the tied nature of funds allocated to PRIs complicates matters. Funds are often earmarked for specific activities tied to certain government schemes, which might not always be suitable for all areas within a district. As a result, either inappropriate activities are funded, or funds are left unspent, which does not benefit the community effectively.

Additionally, there is a significant dependence on government funding. This reliance on external funding can discourage local Panchayats from raising their own revenue. When PRIs do not take steps to gather resources independently, the level of community oversight decreases, diminishing the likelihood of social audits where citizens check how funds are used.

The reluctance to utilize fiscal powers granted to Gram Panchayats signifies another challenge. Under the law, Gram Panchayats can levy taxes on properties, businesses, and even local services. However, only a few take advantage of this, often citing the difficulty in taxing constituents whom they live among. This leads to a cycle of dependency on government funds rather than fostering local revenue generation.

The status of the Gram Sabha, which is meant to empower local decision-making, also poses hurdles. Many state laws do not clearly define the powers, roles, or functions of the Gram Sabha, nor do they establish accountability procedures for officials. This lack of clarity prevents these bodies from serving as effective tools for community engagement, transparency, and accountability.

In addition, the creation of parallel bodies can complicate governance. These bodies are often established to enhance accountability and speed up project implementation but usually do not eliminate issues like political bias, corruption, or capture by elite interests. Such entities can lead to confusion and a disconnect with existing PRI structures, often overshadowing their roles and resources, consequently demoralizing those involved in the PRIs.

Moreover, poor infrastructure remains a recurring issue. Many Gram Panchayats lack basic facilities, including full-time officials or even proper office buildings which inhibits effective functioning. Additionally, the absence of up-to-date databases for planning and monitoring restricts the ability of PRIs to gather necessary information for informed decision-making. Many elected representatives in the PRIs are either semi-literate or illiterate and might not fully understand their roles and responsibilities, due to inadequate training and support. This lack of knowledge further reduces their effectiveness.

In conclusion, to enhance the performance of Panchayati Raj Institutions, it is critical to address these various challenges. The Constitution of India, particularly through articles related to local governance and the 73rd Amendment (Articles 243 to 243ZG), lays the groundwork for empowering local governance. However, practical measures need to be taken at the state level to ensure that PRIs can effectively fulfill their roles and contribute positively to rural development.