Panchayati Raj and Local Government Notes for UPSC

India is a vast country with more than 2.5 lakh Panchayats and thousands of urban local bodies. Democracy cannot be complete if power is limited to Delhi and the State capitals; it has to reach the village and the ward. This is the idea behind local self-government, which got constitutional status through the 73rd and 74th Constitutional Amendment Acts of 1992. For the UPSC Civil Services Examination, this is a high-scoring topic in polity: Prelims asks about the committees, Articles, Schedules and features, and Mains asks about decentralisation, the problems of local bodies and reforms. This note explains Panchayati Raj and urban local government in simple language, with tables.

Evolution of Panchayati Raj

The Panchayat has an old tradition in India as a village-level body of elders. In the Constituent Assembly, Gandhi's ideal of gram swaraj (village self-rule) was supported by some members, and Article 40 of the Directive Principles directs the State to organise village panchayats and give them the powers to function as units of self-government. After independence, the Community Development Programme (1952) and the National Extension Service (1953) failed to involve people, which led to the Balwant Rai Mehta Committee (1957).

Rajasthan was the first state to adopt the three-tier Panchayati Raj, when Prime Minister Nehru inaugurated it at Nagaur on 2 October 1959, followed by Andhra Pradesh. In 1989, the 64th Amendment Bill for constitutional status was passed by the Lok Sabha but defeated in the Rajya Sabha. Finally, the 73rd Amendment Act, 1992 was passed and came into force on 24 April 1993, which is now celebrated as the National Panchayati Raj Day.

The 73rd Amendment: Part IX of the Constitution

The Act added Part IX (Articles 243 to 243-O) and the Eleventh Schedule (29 subjects, such as agriculture, minor irrigation, fisheries, primary education, health, rural housing, drinking water, roads and poverty alleviation). The main features are as follows.

• Gram Sabha: the body of all registered voters in the village, the foundation of the Panchayati Raj system, with the powers given by the State legislature.
• Three-tier structure: village, intermediate (block) and district levels. States with a population below 20 lakh need not have the intermediate tier.
• Direct elections to all seats at all levels; the chairperson of the village panchayat is elected as the State law provides, and the heads of the higher tiers are indirectly elected.
• Reservation: seats for Scheduled Castes and Scheduled Tribes in proportion to their population, and not less than one-third of the total seats (including those of SC/ST) for women. Many states have raised the women's reservation to 50 percent. Reservation for backward classes is left to the State.
• Fixed term of five years; fresh elections must be held within six months if a Panchayat is dissolved.
• State Election Commission (Article 243K) to conduct elections, headed by the State Election Commissioner appointed by the Governor.
• State Finance Commission (Article 243I), appointed every five years, to review the financial position and recommend the sharing of taxes and grants.
• District Planning Committee (Article 243ZD) to prepare the draft development plan for the whole district.

The provisions are of two types: compulsory (such as the three-tier structure, reservations, the term and the Commissions) and voluntary (such as giving powers and functions to the Panchayats, which depends on the State). The Act does not apply to the Fifth and Sixth Schedule areas, and to a few states and areas such as Nagaland, Meghalaya, Mizoram, the hill areas of Manipur and the Darjeeling district of West Bengal. The PESA Act, 1996 extended the system to the Fifth Schedule areas with special powers for the Gram Sabhas.

The 74th Amendment: Urban Local Government

The 74th Amendment Act, 1992 came into force on 1 June 1993 and added Part IX-A (Articles 243-P to 243-ZG) and the Twelfth Schedule (18 functional items such as urban planning, regulation of land use, water supply, public health, sanitation, solid waste management, slum improvement, fire services and urban poverty alleviation). It provides for three types of municipalities: a Nagar Panchayat for a transitional area (changing from rural to urban), a Municipal Council for a smaller urban area and a Municipal Corporation for a larger urban area. Like Panchayats, they have direct elections, reservation for SC, ST and women (one-third), a five-year term, State Election Commission and State Finance Commission. In addition, it provides for Ward Committees in municipalities with a population of three lakh or more, a District Planning Committee and a Metropolitan Planning Committee (Article 243ZE) for metropolitan areas with a population of ten lakh or more.

Besides these, India has other urban bodies such as the Cantonment Board (under the Ministry of Defence), the Township, the Port Trust, the Special Purpose Agencies and the Notified Area Committee and Town Area Committee, which are not covered by the 74th Amendment.

Sources of Income

Local bodies get funds from their own taxes and fees (house tax, property tax, water charges, market fees), grants from the State and the Centre (on the recommendations of the Union and State Finance Commissions), shares in State taxes and the money from central schemes like MGNREGA. In reality, most Panchayats depend heavily on grants and have little power to raise their own revenue.

Role of Gram Sabha and Recent Initiatives

The Gram Sabha discusses the budget, selects beneficiaries, conducts social audits and approves plans. Many programmes depend on it. Recent initiatives include the Gram Panchayat Development Plan (GPDP) for participatory planning, the e-Gram Swaraj portal for planning and accounting, the Rashtriya Gram Swaraj Abhiyan for capacity building, the SVAMITVA scheme (2020) to give property cards using drone mapping, the Mission Antyodaya for convergence of schemes and the Panchayat Devolution Index to assess progress. The Government also works on the Sabki Yojana Sabka Vikas campaign for people's planning.

Problems of Panchayati Raj and Local Bodies

The main problems are the poor devolution of the "three Fs" (functions, funds and functionaries) by the States; dependence on grants and a weak tax base; the interference of the bureaucracy and MLAs; irregular elections and weak State Election Commissions in some states; low capacity and awareness of elected members; proxy representation of women (the "sarpanch-pati" problem); poor functioning of Gram Sabhas; weak accountability and audit; corruption; and the parallel bodies created by the State for specific schemes. Urban bodies face additional problems of fast urbanisation, poor finances, overlapping roles with parastatal agencies and the lack of strong mayors.

Way Forward

Suggestions made by the Second Administrative Reforms Commission and others include real devolution with activity mapping, strengthening the taxation powers and the finances of local bodies, empowering the State Finance Commissions, training of elected members, active Gram Sabhas, use of technology for transparency, effective social audit, protecting women's leadership, and ending the dual control of the bureaucracy. A good Mains answer will link local government with the principle of subsidiarity, grassroots democracy and the Sustainable Development Goals, and give examples such as Kerala's People's Plan Campaign.

Panchayati Raj vs Urban Local Bodies: A Quick Comparison

Although the two amendments follow a similar design, there are some differences that the examiner may test. The Panchayats have a three-tier structure and are mentioned in Part IX, with 29 subjects, while municipalities are of three types, are in Part IX-A and have 18 subjects. Panchayats work under the State's Rural Development or Panchayati Raj Department, while municipalities work under the Urban Development or Municipal Administration Department. A Panchayat has a Gram Sabha as its base, whereas in cities there is only the provision for ward committees in larger municipalities. The District Planning Committee consolidates the plans of both rural and urban bodies. In both cases, the State Election Commission conducts the elections, and the State Finance Commission reviews the finances. The Panchayats are meant for a largely agrarian economy and the municipalities for rapid urban growth, so their challenges are different, though weak finances and limited devolution are common to both. Preparing a short comparison chart saves time during revision.

Quick Revision

• Balwant Rai Mehta (1957): three-tier; Ashok Mehta (1977): two-tier; Nagaur, Rajasthan was first (1959).
• 73rd Amendment: Part IX, Articles 243-243O, Eleventh Schedule (29 subjects); 74th: Part IX-A, Twelfth Schedule (18 subjects).
• Not less than one-third reservation for women; five-year term; State Election Commission and State Finance Commission.
• National Panchayati Raj Day: 24 April; PESA Act: 1996.

Local self-government is the base of Indian democracy. Learn the committees and Articles in tables, remember the exemptions, and prepare the problems and reforms for a balanced Mains answer.

Related Notes to Read Next

Continue your preparation with these related notes from the same subject:

• Constitutional Bodies Notes for UPSC
• Union Executive: President, Vice-President
• State Government: Governor, Chief Minister and State Legislature
• All Indian Polity and Governance notes

Frequently Asked Questions (FAQ)

What is Panchayati Raj?

Panchayati Raj is a system of rural local self-government in India with elected bodies at the village, block and district levels.

Which committee recommended the three-tier Panchayati Raj?

The Balwant Rai Mehta Committee of 1957 recommended the three-tier system of Panchayati Raj.

Which state first introduced Panchayati Raj?

Rajasthan was the first state to introduce Panchayati Raj, inaugurated at Nagaur on 2 October 1959.

Which amendment gave constitutional status to Panchayati Raj?

The 73rd Constitutional Amendment Act, 1992 gave constitutional status to Panchayati Raj institutions and added Part IX and the Eleventh Schedule.

How many subjects are there in the Eleventh Schedule?

The Eleventh Schedule contains 29 subjects for the Panchayats, such as agriculture, minor irrigation, rural housing and primary education.

What is the Gram Sabha?

The Gram Sabha is the body of all registered voters of a village, which is the foundation of the Panchayati Raj system.

What is the reservation for women in Panchayats?

Not less than one-third of the seats and offices of chairpersons are reserved for women in Panchayats, and many states have increased it to 50 percent.

What is the term of a Panchayat?

A Panchayat has a fixed term of five years, and elections must be held within six months of its dissolution.

Which amendment is related to urban local bodies?

The 74th Constitutional Amendment Act, 1992 gave constitutional status to urban local bodies and added Part IX-A and the Twelfth Schedule.

How many subjects are in the Twelfth Schedule?

The Twelfth Schedule contains 18 functional items for municipalities, such as urban planning, water supply and sanitation.

What is the role of the State Finance Commission?

The State Finance Commission, appointed every five years, reviews the financial condition of local bodies and recommends the sharing of taxes and grants.

What is PESA?

The Panchayats (Extension to Scheduled Areas) Act, 1996 extends Panchayati Raj to the Fifth Schedule tribal areas with special powers for the Gram Sabha.