Panchayati Raj & Municipalities

The 73rd and 74th Constitutional Amendments of 1992 created a third tier of government in India — Panchayati Raj Institutions (PRIs) for rural areas and Urban Local Bodies (ULBs) for urban areas. These landmark amendments constitutionalised local self-governance, mandated reservations for SC/ST and women, and established independent State Election Commissions and State Finance Commissions. A high-frequency topic for both Prelims and Mains GS-II.

UPSC Prelims · Mains GS-II Laxmikanth Ch. 35–36 ~22 min read Arts 243–243ZG 73rd & 74th Amendments 1992 11th & 12th Schedules

Conceptual Clarity
Historical Background
73rd Amendment — Arts 243–243O
Three-Tier PRI Structure
Gram Sabha
11th Schedule — 29 Subjects
State EC & State FC
74th Amendment — Arts 243P–243ZG
Types of Urban Bodies
12th Schedule — 18 Subjects
DPC & MPC
73rd vs 74th — Comparison
Issues with PRIs & ULBs
Current Affairs
Prelims PYQs
Mains PYQs
Revision Box

Conceptual Clarity — Third Tier of Government

India's governance structure has three tiers: Union, State, and Local (PRIs/ULBs). While the first two were constitutional from 1950, local bodies existed only in state statutes until 1992. The 73rd and 74th Amendments gave constitutional status to these institutions — but they are enabling legislation, not mandatory devolution. States retain full power to decide how much functions, funds, and functionaries (3Fs) to actually devolve.

73rd Amendment: Panchayati Raj Institutions (rural) — Art. 243 to 243O — Part IX of Constitution
74th Amendment: Urban Local Bodies (urban) — Art. 243P to 243ZG — Part IX-A of Constitution
Key insight: The Constitution provides the framework; actual devolution depends on state legislation.

1. Historical Background — Road to 73rd Amendment

1.1 Key Committees

Committee / Year	Key Recommendation	Outcome
Balwantray Mehta Committee, 1957	Recommended 3-tier Panchayati Raj structure: village, block, district level; democratic decentralisation	Rajasthan first to implement (Oct 2, 1959); most states adopted 3-tier by 1960s
Ashok Mehta Committee, 1978	Recommended 2-tier structure — Mandal Panchayat (group of villages) + Zila Parishad (district level); political parties should be allowed to participate	Report not implemented; government changed before action
G.V.K. Rao Committee, 1985	PRIs had become "grass without roots" — recommended strengthening with regular elections, finance devolution, district as basic unit of planning	Partial reforms; still no constitutional status
L.M. Singhvi Committee, 1986	Recommended constitutional status for PRIs; Gram Sabha should be constitutionally recognised; Nyaya Panchayats for dispute resolution	Led directly to constitutional amendment efforts
64th Constitutional Amendment Bill, 1989	Rajiv Gandhi government introduced Nagar Palika Bill + PRI Bill; Nagar Palika Bill passed LS but rejected by RS	Failed; government fell before re-introduction
73rd Amendment, 1992	P.V. Narasimha Rao government; passed by Parliament Dec 1992; effective April 24, 1993	Added Part IX (Arts 243–243O) and 11th Schedule to Constitution

Memory Aid: BM (1957) → AM (1978) → GVK (1985) → LMS (1986) → 64th failed (1989) → 73rd passed (1992). The mnemonic BAGLe-73 helps remember the sequence.

1.2 Why 73rd Amendment was Needed

PRIs were dependent on state governments — states held elections irregularly or not at all
No mandatory reservation for women or weaker sections
No independent election authority — state governments controlled election timing
No constitutional guarantee of funds or functions to PRIs
Parallel bodies (block development offices, district rural development agencies) bypassed PRIs

2. 73rd Amendment — Constitutional Provisions (Arts 243–243O)

2.1 Article-by-Article Overview

Article	Provision	Key Detail
Art. 243	Definitions	Village, intermediate level, district level, Gram Sabha, panchayat, population defined
Art. 243A	Gram Sabha	Body of all registered voters in a village; may exercise powers/functions as state legislature may provide
Art. 243B	Three-tier structure	Panchayats at village, intermediate, and district levels; intermediate level not needed if state population < 20 lakh
Art. 243C	Composition of Panchayats	Direct election from territorial constituencies; representation may be given to MPs, MLAs, members of intermediate/district panchayats
Art. 243D	Reservation of seats	SC/ST — proportional to their population; women — not less than 1/3 (can be increased by states); OBC reservation optional for states
Art. 243E	Duration of Panchayats	5-year term; if dissolved, fresh elections within 6 months; reconstituted panchayat serves only remainder of 5-year period
Art. 243F	Disqualifications	Person disqualified under state law for election to state legislature; minimum age 21 years (state may prescribe)
Art. 243G	Powers, authority, responsibilities	Legislature may endow panchayats with powers related to 29 subjects in 11th Schedule
Art. 243H	Powers to impose taxes	Legislature may authorise panchayats to levy, collect and appropriate taxes, duties, tolls, fees
Art. 243I	State Finance Commission	Governor constitutes SFC every 5 years; recommends distribution of taxes between state and panchayats
Art. 243J	Audit of accounts	Legislature may make provisions for maintenance and auditing of panchayat accounts
Art. 243K	Elections to panchayats	State Election Commission — superintendence, direction and control; SEC appointed by Governor; removed only like HC judge
Art. 243L	Application to Union Territories	President may apply provisions to any UT with or without modifications
Art. 243M	Exemptions	Does NOT apply to: Nagaland, Meghalaya, Mizoram; Hill areas of Manipur; Darjeeling district (West Bengal); Scheduled and Tribal Areas (5th/6th Schedule); J&K (now modified)
Art. 243N	Continuance of existing laws	Existing state laws on panchayats continue to operate for 1 year from commencement of amendment
Art. 243O	Bar on interference by courts	Courts cannot interfere in electoral matters of panchayats; validity of laws relating to delimitation/election cannot be questioned in courts (except Supreme Court under Art. 136)

UPSC Trap — Art. 243M Exceptions: The 73rd Amendment does NOT apply to Nagaland, Meghalaya, Mizoram, hill areas of Manipur, and scheduled/tribal areas. For tribal areas, PESA Act 1996 provides a separate framework. The exception is because these areas have traditional self-governance systems that need protection.

2.2 Compulsory vs Voluntary Provisions

Compulsory (Binding on all states)

Three-tier structure (Art. 243B)
Reservation for SC/ST and women ≥ 1/3 (Art. 243D)
5-year term; elections within 6 months of dissolution (Art. 243E)
State Election Commission (Art. 243K)
State Finance Commission every 5 years (Art. 243I)

Voluntary (Enabling — states may do)

Devolution of 29 subjects (Art. 243G)
Taxation powers to panchayats (Art. 243H)
OBC reservation (Art. 243D)
Women reservation beyond 1/3 — e.g., many states have 50%
Representation to MPs/MLAs on panchayats (Art. 243C)

3. Three-Tier Panchayati Raj Structure

Diagram A — Three-Tier Panchayati Raj Structure with approximate numbers across India (Art. 243B)

3.1 Level-wise Details

Level	Body	Head (varies by state)	Approximate Numbers
Village (Gram)	Gram Panchayat	Sarpanch / Pradhan / Mukhiya	~2.55 lakh
Intermediate (Block)	Panchayat Samiti / Block Panchayat / Mandal Panchayat	Pramukh / Block Pramukh / Adhyaksha	~6,000
District (Zila)	Zila Parishad / Zila Panchayat	Adhyaksha / President; CEO (IAS officer)	~600

Important: The intermediate tier (Panchayat Samiti) is NOT mandatory for states with population less than 20 lakh — e.g., Goa operates a two-tier system. All states with population above 20 lakh must have all three tiers.

3.2 Reservation in PRIs (Art. 243D)

SC/ST seats: Reserved in proportion to their population in each panchayat area — applies to both seats and offices of chairpersons
Women: Not less than 1/3 of total seats reserved; offices of chairpersons at all three levels also — not less than 1/3 for women
Women reservation extension: Several states have increased to 50% — Rajasthan, Madhya Pradesh, Uttarakhand, Himachal Pradesh, Bihar, Sikkim, Andhra Pradesh, Telangana, etc.
OBC reservation: Optional — state legislature may provide; Supreme Court in K. Krishna Murthy v. Union of India (2010) laid down triple test for OBC reservation in local bodies
Seats are rotated among constituencies after each election to ensure wide coverage

4. Gram Sabha — The Foundation of Democracy (Art. 243A)

The Gram Sabha is the primary democratic institution at the grassroots level. It consists of all registered voters in a village (or group of villages forming one panchayat). It is NOT an elected body — it is the entire electorate assembled.

4.1 Constitutional Position

Art. 243A: "A Gram Sabha may exercise such powers and perform such functions at the village level as the Legislature of a State may, by law, provide."
The Gram Sabha is the foundation — it is below the Gram Panchayat in the administrative hierarchy but above it in democratic legitimacy
The elected Gram Panchayat is accountable to the Gram Sabha

4.2 Key Functions of Gram Sabha

Approve annual budget and accounts of Gram Panchayat
Review development plans and programmes
Identify beneficiaries for government schemes (MGNREGA, housing, etc.)
Social audit of government schemes
Certificate of utilisation of funds
Under PESA Act 1996 — in Scheduled (tribal) areas, Gram Sabha has additional powers: consent for land acquisition, manage minor forest produce, natural resources, prevent alienation of land

UPSC Mains Angle: The Gram Sabha is described as the "parliament of the village." Despite its constitutional recognition, Gram Sabhas remain underutilised in most states — poor attendance, dominated by elites, irregular meetings. Strengthening Gram Sabha is key to genuine democratic decentralisation.

5. 11th Schedule — 29 Subjects (Art. 243G)

Diagram B — 11th Schedule (29 subjects, Panchayati Raj) vs 12th Schedule (18 subjects, Urban Local Bodies). Both are enabling — actual devolution by state legislature.

5.1 All 29 Subjects of 11th Schedule

Agriculture including agricultural extension
Land improvement, implementation of land reforms, land consolidation, soil conservation
Minor irrigation, water management, watershed development
Animal husbandry, dairying and poultry
Fisheries
Social forestry and farm forestry
Minor forest produce
Small scale industries including food processing industries
Khadi, village and cottage industries
Rural housing
Drinking water
Fuel and fodder
Roads, culverts, bridges, ferries, waterways, and other means of communication
Rural electrification including distribution of electricity
Non-conventional energy sources

Poverty alleviation programme
Education including primary and secondary schools
Technical training and vocational education
Adult and non-formal education
Libraries
Cultural activities
Markets and fairs
Health and sanitation including hospitals, primary health centres and dispensaries
Family welfare
Women and child development
Social welfare including welfare of the handicapped and mentally retarded
Welfare of the weaker sections, in particular, of the Scheduled Castes and Scheduled Tribes
Public distribution system
Maintenance of community assets

Key Point: The 11th Schedule lists subjects that may be entrusted to panchayats — states are not obligated to devolve all 29. Studies show that average devolution across India remains low: MoPR's Devolution Index (2024) shows significant variation across states. Kerala and Karnataka are typically ranked highest in devolution.

6. State Election Commission & State Finance Commission

6.1 State Election Commission (Art. 243K)

Constitutional basis: Art. 243K (PRIs) and Art. 243ZA (ULBs) — same SEC for both
Composition: State Election Commissioner — appointed by Governor
Removal: Only in the same manner and on the same grounds as a High Court judge — i.e., by President on an address of State Legislature (for proven misbehaviour or incapacity)
Functions: Superintendence, direction and control of preparation of electoral rolls, and conduct of elections to panchayats and municipalities
Service conditions: Cannot be varied to his disadvantage after appointment
Independence: Not subject to control of ECI (Election Commission of India) — completely independent state body

UPSC Distinction: The State Election Commission (Art. 243K) is DIFFERENT from the Election Commission of India (Art. 324). ECI handles elections to Parliament and State Legislatures; SEC handles elections to panchayats and municipalities. They are independent of each other.

6.2 State Finance Commission (Art. 243I)

Constitutional basis: Art. 243I (PRIs) and Art. 243Y (ULBs) — same SFC for both
Frequency: Constituted by Governor every 5 years
Functions — Recommends:
- Distribution of net proceeds of taxes, duties, tolls, fees leviable by state between state and panchayats/municipalities
- Determination of taxes, duties, tolls, fees to be assigned to panchayats/municipalities
- Grants-in-aid to panchayats/municipalities
- Measures to improve financial position of panchayats and municipalities
Relationship with Central Finance Commission: The Central FC (Art. 280) recommends devolution to states, and since 11th FC, it also separately recommends grants to local bodies. 15th FC (2021–26) recommended Rs. 4.36 lakh crore for local bodies over 5 years — tied and untied grants

7. 74th Amendment — Municipalities (Arts 243P–243ZG)

7.1 Background

Nagar Palika Bill 1989 — passed LS, rejected by RS during Rajiv Gandhi government
74th Amendment 1992 — passed with 73rd Amendment simultaneously; effective June 1, 1993 (note: different from 73rd's April 24, 1993)
Added Part IX-A (Arts 243P to 243ZG) and 12th Schedule to the Constitution

7.2 Article-by-Article Overview

Article	Provision	Key Detail
Art. 243P	Definitions	Committee, district, metropolitan area, municipal area, municipality, panchayat area, population, ward
Art. 243Q	Three types of municipalities	Nagar Panchayat, Municipal Council, Municipal Corporation — based on population/urban character
Art. 243R	Composition	Direct election + persons with special knowledge (no vote) + MPs/MLAs/MLCs + chairpersons of ward committees
Art. 243S	Ward Committees	Mandatory for municipalities with population 3 lakh or more; composition and territorial area to be specified by state
Art. 243T	Reservation	SC/ST — proportional to population; women — not less than 1/3; OBC — optional; offices of chairpersons also reserved
Art. 243U	Duration	5-year term; fresh elections within 6 months of dissolution
Art. 243V	Disqualifications	Similar to PRIs; as per state law for state legislature membership
Art. 243W	Powers, functions	Legislature may endow with powers relating to 18 subjects in 12th Schedule
Art. 243X	Taxation	State legislature may authorise municipalities to levy taxes, duties, tolls, fees
Art. 243Y	State Finance Commission	Same SFC as for panchayats (Art. 243I) — recommends distribution for both
Art. 243Z	Audit of accounts	State legislature may provide for maintenance and audit of municipality accounts
Art. 243ZA	State Election Commission	Same SEC as for panchayats (Art. 243K) — conducts elections for both
Art. 243ZB	Application to UTs	President may apply to UTs with or without modifications
Art. 243ZC	Exemptions	Does NOT apply to scheduled areas and tribal areas; certain hill areas; industrial townships
Art. 243ZD	District Planning Committee (DPC)	State shall constitute DPC in each district to consolidate plans of panchayats and municipalities; prepare a draft development plan for the district
Art. 243ZE	Metropolitan Planning Committee (MPC)	Metropolitan areas with 10 lakh or more population; not less than 2/3 elected members from ULBs and panchayats in proportion to their population
Art. 243ZF	Continuance of existing laws	Existing state laws on municipalities continue for 1 year
Art. 243ZG	Bar on court interference	No court shall interfere in electoral matters of municipalities

DPC vs MPC: District Planning Committee (Art. 243ZD) — for district-level plans consolidating rural and urban plans. Metropolitan Planning Committee (Art. 243ZE) — for cities with 10 lakh+ population. Both are mandatory under the Constitution, but most states have been slow to constitute them effectively. DPCs have been constituted in most states; MPCs remain largely dysfunctional.

8. Types of Urban Local Bodies

8.1 Constitutional Types (Art. 243Q)

Type	Applicable to	Examples
Nagar Panchayat	Areas in transition from rural to urban; small population	Emerging urban centres
Municipal Council	Smaller urban areas (medium towns)	District headquarters towns
Municipal Corporation	Larger urban areas (metro cities)	Delhi, Mumbai, Chennai, Bengaluru, Kolkata

8.2 Other Urban Bodies (Not Constitutionally Mandated)

Body	Nature	Governing Authority
Town Area Committee	Semi-municipal; smaller towns; limited civic functions	State government
Notified Area Committee	Fast-growing towns that don't yet meet municipal council criteria; all members nominated (not elected)	State government
Cantonment Board	Governs civilian population in military cantonment areas	Ministry of Defence; Cantonment Act 2006
Township	Established by large public sector undertakings (SAIL, BHEL, Hindustan Copper) for employees in remote areas	Concerned PSU
Port Trust	Provides civic amenities in port areas	Port authorities (central)
Special Purpose Vehicle (SPV)	Created for Smart Cities Mission — special limited companies for project implementation	Central + State + ULB joint
Development Authority	Urban development, planning (e.g., DDA, BMDA, CMDA)	State government; not elected

UPSC Note: The proliferation of para-statal bodies (Development Authorities, Housing Boards, Water Supply Boards, SPVs) outside the elected municipality structure is a major critique — they handle key urban functions but are not democratically accountable. This "bypassing" of ULBs is a central issue in Indian urban governance.

9. 12th Schedule — 18 Subjects (Art. 243W)

9.1 All 18 Subjects

Urban planning including town planning
Regulation of land use and construction of buildings
Planning for economic and social development
Roads and bridges
Water supply for domestic, industrial and commercial purposes
Public health, sanitation, conservancy and solid waste management
Fire services
Urban forestry, protection of environment and promotion of ecological aspects
Safeguarding the interests of weaker sections including the handicapped and mentally retarded

Slum improvement and upgradation
Urban poverty alleviation
Provision of urban amenities and facilities: parks, gardens, playgrounds
Promotion of cultural, educational and aesthetic aspects
Burials and burial grounds; cremations, cremation grounds and electric crematoria
Cattle pounds; prevention of cruelty to animals
Vital statistics including registration of births and deaths
Public amenities including street lighting, parking lots, bus stops, public conveniences
Regulation of slaughterhouses and tanneries

Comparison: 11th Schedule has 29 subjects (predominantly rural — agriculture, animal husbandry, rural housing, etc.). 12th Schedule has 18 subjects (predominantly urban — town planning, water supply, fire services, slum improvement). Both are enabling — actual devolution is the state's prerogative.

10. District Planning Committee (DPC) & Metropolitan Planning Committee (MPC)

10.1 District Planning Committee (Art. 243ZD)

Mandate: Every state shall constitute a DPC in each district to consolidate plans prepared by panchayats and municipalities
Composition: Not less than 4/5 of members elected from among elected members of Zila Parishad and municipalities in the district in proportion to rural/urban population
Functions: Prepare draft development plan for the district as a whole; integrate rural and urban planning
Chairperson: Designated by state government; forwards the plan to state government
Status in practice: Constituted in most states but largely dysfunctional; overshadowed by state planning departments and District Collectors

10.2 Metropolitan Planning Committee (Art. 243ZE)

Trigger: Metropolitan area = an area with population of 10 lakh or more (as defined under Art. 243P)
Composition: Not less than 2/3 members elected from elected members of municipalities and chairpersons of panchayats in the metropolitan area, in proportion to population
Functions: Prepare draft development plan for the metropolitan area
Status in practice: Most cities with large populations (Delhi, Mumbai, Chennai, Bengaluru) lack functional MPCs; planning is done by Development Authorities (DDA, MMRDA, CMDA) which are not democratically accountable

Constitutional Obligation: Art. 243ZD says states "shall" constitute DPCs — making it mandatory. Art. 243ZE is also mandatory for metro areas. The Supreme Court has noted the failure to constitute these bodies. This is a critical Mains GS-II issue — "constitutionalised but not operationalised."

11. 73rd vs 74th Amendment — Comprehensive Comparison

Diagram C — 73rd vs 74th Amendment: Side-by-side comparison of key provisions

11.1 Detailed Comparison Table

Feature	73rd Amendment (PRIs)	74th Amendment (ULBs)
Year effective	April 24, 1993	June 1, 1993
Applicable area	Rural	Urban
Part of Constitution	Part IX	Part IX-A
Article range	243 to 243O (16 articles)	243P to 243ZG (22 articles)
Schedule added	11th Schedule (29 subjects)	12th Schedule (18 subjects)
Structure	3-tier: Village, Block, District	3 types: Nagar Panchayat, Municipal Council, Municipal Corporation
Base democratic unit	Gram Sabha (Art. 243A) — all voters	Ward Committee (Art. 243S) — for 3 lakh+ bodies
Women reservation	≥ 1/3 (Art. 243D)	≥ 1/3 (Art. 243T)
SC/ST reservation	Proportional to population	Proportional to population
OBC reservation	Optional (state may provide)	Optional (state may provide)
Duration	5 years; elections in 6 months if dissolved	5 years; elections in 6 months if dissolved
State Election Commission	Art. 243K — same body for both	Art. 243ZA — same SEC
State Finance Commission	Art. 243I — same body for both	Art. 243Y — same SFC
Higher planning body	DPC (Art. 243ZD)	MPC for metro areas (Art. 243ZE)
Bar on court interference	Art. 243O	Art. 243ZG
Exemptions	Art. 243M — Nagaland, Meghalaya, Mizoram, Hill areas, Tribal areas	Art. 243ZC — Scheduled & tribal areas, hill areas, industrial townships

12. Issues with PRIs & ULBs

12.1 The 3Fs Problem — Funds, Functions, Functionaries

Funds (Finance)

Most PRIs/ULBs have weak own-source revenue
Dependent on state grants — discretionary and irregular
Property tax collection in ULBs is poor
SFC recommendations often not implemented
Tied grants restrict local spending autonomy

Functions (Devolution)

State legislatures have NOT devolved all 29/18 subjects
Even devolved subjects often handled by state departments
Para-statal bodies (DDA, CMDA, Water Boards) handle key functions
DPC and MPC largely dysfunctional
Devolution Index (MoPR) shows huge variation

Functionaries (Staff)

No dedicated cadre for panchayats in most states
Staff deputed from state — loyalty to state, not local body
Technical staff (engineers, accountants) lacking
District Collector/BDO exercises real power
Capacity deficits at GP level especially acute

12.2 Other Critical Issues

Parallel bodies: MGNREGA Gram Rozgar Sahayaks, SHG-bank linkage, NRLM structures bypass elected PRIs; Centrally Sponsored Schemes often have implementation agencies outside PRIs
Women's reservation — proxy representation: Sarpanch Pati/Mukhiya Pati phenomenon — husbands and male relatives exercising power on behalf of elected women; real participation vs. formal representation
Political interference: State governments use supersession of PRIs as political tool; delay in elections (Art. 243E mandates elections within 6 months of dissolution but states often delay)
Urban governance fragmentation: Multiple agencies for water (water boards), transport (DSTC, BEST), planning (Development Authorities), health (state departments) — ULBs coordinate none of them
Smart Cities vs elected cities: SPVs under Smart Cities Mission bypass elected municipal corporations — technocratic governance vs democratic governance tension
OBC reservation controversy: Supreme Court in Vikas Kishanrao Gawali v. State of Maharashtra (2021) — triple test mandatory before OBC reservation in local bodies: dedicated commission, empirical data, overall 50% cap maintained

13. Current Affairs & Policy Developments

13.1 Government Initiatives for PRIs

Initiative	Details
e-Gram Swaraj Portal	Launched 2020; single interface for planning, accounting, reporting of all gram panchayats; geo-tagging of assets; transparency in fund utilisation
Gram Swaraj Abhiyan / Sabki Yojana Sabka Vikas	Saturation of key schemes in every village; GP development plans; convergence of 29 schemes
Devolution Index	Ministry of Panchayati Raj; measures actual devolution of 3Fs by states; Kerala, Karnataka, Tamil Nadu, Gujarat typically top-ranked
Panchayat Development Index (PDI)	Based on 9 localised SDG themes; ranking of panchayats on SDG performance
Rashtriya Gram Swaraj Abhiyan (RGSA)	Capacity building scheme for PRIs; training of elected representatives; strengthening institutional infrastructure

13.2 Government Initiatives for ULBs

Scheme	Details
Smart Cities Mission (SCM)	100 cities selected; Rs. 2.05 lakh crore investment; area-based development + pan-city initiatives; SPV model — raises democratic accountability questions
AMRUT 2.0 (2021–26)	Atal Mission for Rejuvenation and Urban Transformation; 500 cities; focus on water supply, sewerage, urban greenery; Rs. 2.99 lakh crore
PM Awas Yojana-Urban (PMAY-U)	Housing for all in urban areas; implemented through ULBs
Swachh Bharat Mission-Urban 2.0	Garbage-free cities; ODF++; waste-to-energy; implemented through ULBs
National Urban Learning Platform (NULP)	Capacity building for urban local body functionaries and elected representatives

13.3 Finance Commission & Local Bodies

15th Finance Commission (2021–26): Allocated Rs. 4,36,361 crore to local bodies — Rs. 2,36,805 crore for rural LBs (PRIs) and Rs. 1,21,055 crore for urban LBs; introduced performance-based grants; tied grants for sanitation and drinking water
Conditions for grants: State must have published audited accounts, constitute SFC and implement recommendations; a reform-linked condition
16th Finance Commission: Constituted in December 2023; recommendations will be for 2026–31; likely to continue focus on local bodies

13.4 PESA Act 1996 — Cross-reference

Panchayats (Extension to Scheduled Areas) Act, 1996 — extends PRI provisions to 5th Schedule areas with modifications. Key provisions: Gram Sabha is supreme; consent mandatory for land acquisition, mining; management of minor forest produce; prevention of alienation of tribal land. Covered comprehensively in Topic 18: UTs & Scheduled Areas.

14. Prelims PYQs

Prelims 2024

With reference to the Gram Sabha under the Constitution of India, consider the following statements: (1) It consists of all persons whose names appear in the electoral rolls for a village. (2) It may exercise such powers as the State Legislature by law provides.
Answer: Both (1) and (2) are correct — Art. 243A: Gram Sabha = all registered voters; its powers defined by state legislature

Prelims 2023

Which of the following is NOT included in the Eleventh Schedule of the Constitution of India?
Answer: Fire services — Fire services is in the 12th Schedule (urban bodies), NOT in the 11th Schedule (panchayats). The 11th Schedule deals with rural subjects like agriculture, fisheries, rural housing, etc.

Prelims 2022

Under Article 243D of the Constitution, which of the following reservations in Panchayats is mandatory?
Answer: SC/ST (proportional to population) AND Women (not less than 1/3) are mandatory. OBC reservation is optional — states may or may not provide it.

Prelims 2021

The State Election Commissioner is appointed by the Governor and can be removed only in the same manner and on the same grounds as a:
Answer: Judge of a High Court (NOT a District Court, NOT a Supreme Court judge, NOT like a Governor). Art. 243K specifies removal like HC judge.

Prelims 2020

With reference to the State Finance Commission, consider the following: (1) It is constituted every 5 years. (2) One SFC serves both panchayats and municipalities. (3) Its recommendations are binding on the state government.
Answer: (1) and (2) are correct. (3) is WRONG — SFC recommendations are NOT binding; state government may or may not implement them.

Prelims 2019

Under Article 243M of the Constitution, the 73rd Amendment does NOT apply to which of the following?
Answer: Nagaland, Meghalaya, Mizoram and Hill areas of Manipur are exempt. Note: Delhi is NOT exempt from 73rd Amendment (no panchayats in Delhi as it is fully urban, but the exemption under 243M is specifically for the states mentioned).

Prelims 2018

Under the 74th Constitutional Amendment, Ward Committees are mandatory for municipalities with population of:
Answer: 3 lakh or more — Art. 243S mandates Ward Committees only for municipalities whose population is 3 lakh or more. Below 3 lakh, states may or may not constitute them.

Prelims 2017

Which of the following bodies is NOT an Urban Local Body?
Answer: Zila Parishad is a rural body (panchayat), not an urban local body. Urban bodies include Nagar Panchayat, Municipal Council, Municipal Corporation, Notified Area Committee, Town Area Committee, Cantonment Board.

15. Mains PYQs

Mains GS-II 2023

"Despite constitutional guarantees, local self-government in India has not evolved into effective units of self-government." Critically examine. (250 words)

Hint: Three-tier structure mandated, elections held — so constitutional minimum met. But: 3Fs not devolved; parallel bodies (DRDA, MGNREGA implementing agencies) bypass PRIs; SFC recommendations not implemented; District Collector retains administrative dominance; women's proxy representation; OBC reservation delayed by Supreme Court requirements; comparison with Kerala model of decentralisation as best practice; fiscal federalism needs vertical devolution to third tier.

Mains GS-II 2022

Discuss the significance of Gram Sabha in strengthening grassroots democracy. What are the challenges in making it functional? (150 words)

Hint: Constitutional basis Art. 243A; parliament of village; accountability mechanism for Gram Panchayat; social audit; beneficiary identification; PESA strengthens Gram Sabha in tribal areas. Challenges: poor attendance; elite capture; women excluded in practice; irregular meetings; lack of agenda items; Sarpanch controls proceedings; administrative apathy; compare with active Gram Sabhas in Kerala (People's Plan Campaign).

Mains GS-II 2021

What are the structural and functional problems of metropolitan governance in India? How can the 74th Amendment provisions help address them? (250 words)

Hint: Multiple agencies — CMDA/BDA for planning; BWSSB/CMWSSB for water; TNSTC/BMTC for transport; no coordination; not democratically accountable. Art. 243ZE MPC constituted in name only; SPVs under Smart Cities bypass elected ULBs; dysfunctional DPCs. Solutions: Operationalise MPCs; integrate para-statals under ULBs; strengthen ULB finances via property tax reform; ring-fenced urban cadre; use of municipal bonds.

Mains GS-II 2020

The reservation of seats for women in Panchayati Raj Institutions has increased their numerical representation but not their substantive participation. Comment. (150 words)

Hint: 1/3 reservation since 1993; many states at 50%; 14 lakh+ elected women representatives. But: Sarpanch Pati phenomenon; women pressured by family/community; lack of financial and administrative power; low attendance at meetings; lack of education/training; contrast with Kerala and Rajasthan where women have exercised real power; solutions: RGSA training, direct bank transfers to elected women reps, awareness campaigns, strong SEC enforcement.

Mains GS-II Expected 2026

Examine the role of the District Planning Committee (DPC) and Metropolitan Planning Committee (MPC) in integrating rural-urban planning. Why have these constitutional bodies remained largely ineffective? (250 words)

Hint: Constitutional mandate — Art. 243ZD (DPC) and Art. 243ZE (MPC); 4/5 elected members from ZP and ULBs; integrate rural (panchayat) and urban (municipality) plans into district/metro plan. Reality: DPCs constituted but meetings irregular; MPCs barely functional even in major metros; District Collector dominates planning; state governments jealous of power; Development Authorities (DDA, CMDA, MMRDA) handle real planning. Reforms: Regular DPC/MPC meetings mandated; dedicated secretariat; link Central grants to DPC/MPC functioning; integration with GIS-based planning; AMRUT and Smart Cities should route through DPC/MPC.

16. Revision Box — Panchayati Raj & Municipalities

Must-Remember — Committees, Numbers, Articles

Key Committees (Historical):

Balwantray Mehta (1957): 3-tier system; democratic decentralisation; Rajasthan first (1959)
Ashok Mehta (1978): 2-tier (Mandal + Zila); party participation; not implemented
G.V.K. Rao (1985): "Grass without roots" — strengthen PRIs; district as planning unit
L.M. Singhvi (1986): Constitutional status for PRIs; Gram Sabha recognition; led to 73rd Amendment
64th Amendment Bill (1989): Failed — RS rejected Nagar Palika Bill

Key Numbers:

Gram Panchayats: ~2.55 lakh
Block/Panchayat Samiti: ~6,000
Zila Parishad: ~600
Women elected reps in PRIs: ~14 lakh+
11th Schedule: 29 subjects
12th Schedule: 18 subjects
Ward Committees: mandatory for 3 lakh+ population municipalities
MPC: mandatory for 10 lakh+ metro areas

Key Articles — Must Know:

Art. 243A — Gram Sabha
Art. 243B — Three-tier structure
Art. 243D — Reservation (SC/ST + ≥1/3 women)
Art. 243E — 5-year term; elections in 6 months
Art. 243G — Powers (11th Schedule, 29 subjects)
Art. 243I — State Finance Commission (5 yearly)
Art. 243K — State Election Commission
Art. 243M — Exemptions (Nagaland, Meghalaya, Mizoram...)
Art. 243Q — Three types of municipalities
Art. 243S — Ward Committees (3 lakh+)
Art. 243W — Powers (12th Schedule, 18 subjects)
Art. 243ZD — District Planning Committee
Art. 243ZE — Metropolitan Planning Committee (10 lakh+)

Effective Dates:

73rd Amendment: April 24, 1993
74th Amendment: June 1, 1993

5 UPSC Traps: (1) OBC reservation in PRIs is OPTIONAL — not mandatory like SC/ST and women. (2) State Election Commission ≠ Election Commission of India — separate bodies under different articles. (3) 11th Schedule has 29 subjects (PRIs/rural); 12th Schedule has 18 subjects (ULBs/urban) — not the other way. (4) Ward Committees mandatory only for municipalities with 3 lakh+ population. (5) Art. 243M exempts Nagaland, Meghalaya, Mizoram, hill areas of Manipur — NOT Delhi (Delhi has ULBs but no panchayats as it is urban).

Item	Detail
73rd effective	April 24, 1993
74th effective	June 1, 1993
PRI articles	243 to 243O (Part IX)
ULB articles	243P to 243ZG (Part IX-A)
11th Schedule	29 subjects (PRIs)
12th Schedule	18 subjects (ULBs)
Women reservation	≥ 1/3 (mandatory)
Ward Committees	3 lakh+ population
MPC trigger	10 lakh+ population
SFC frequency	Every 5 years
Gram Panchayats	~2.55 lakh
Zila Parishads	~600

Level	Body
District	Zila Parishad
Block	Panchayat Samiti
Village	Gram Panchayat
Foundation	Gram Sabha (Art. 243A)

Type	Area
Nagar Panchayat	Transitional (rural→urban)
Municipal Council	Smaller urban areas
Municipal Corp.	Larger urban areas

Panchayati Raj & Municipalities

On this page

Conceptual Clarity — Third Tier of Government

1. Historical Background — Road to 73rd Amendment

1.1 Key Committees

1.2 Why 73rd Amendment was Needed

2. 73rd Amendment — Constitutional Provisions (Arts 243–243O)

2.1 Article-by-Article Overview

2.2 Compulsory vs Voluntary Provisions

Compulsory (Binding on all states)

Voluntary (Enabling — states may do)

3. Three-Tier Panchayati Raj Structure

3.1 Level-wise Details

3.2 Reservation in PRIs (Art. 243D)

4. Gram Sabha — The Foundation of Democracy (Art. 243A)

4.1 Constitutional Position

4.2 Key Functions of Gram Sabha

5. 11th Schedule — 29 Subjects (Art. 243G)

5.1 All 29 Subjects of 11th Schedule

6. State Election Commission & State Finance Commission

6.1 State Election Commission (Art. 243K)

6.2 State Finance Commission (Art. 243I)

7. 74th Amendment — Municipalities (Arts 243P–243ZG)

7.1 Background

7.2 Article-by-Article Overview

8. Types of Urban Local Bodies

8.1 Constitutional Types (Art. 243Q)

8.2 Other Urban Bodies (Not Constitutionally Mandated)

9. 12th Schedule — 18 Subjects (Art. 243W)

9.1 All 18 Subjects

10. District Planning Committee (DPC) & Metropolitan Planning Committee (MPC)

10.1 District Planning Committee (Art. 243ZD)

10.2 Metropolitan Planning Committee (Art. 243ZE)

11. 73rd vs 74th Amendment — Comprehensive Comparison

11.1 Detailed Comparison Table

12. Issues with PRIs & ULBs

12.1 The 3Fs Problem — Funds, Functions, Functionaries

Funds (Finance)

Functions (Devolution)

Functionaries (Staff)

12.2 Other Critical Issues

13. Current Affairs & Policy Developments

13.1 Government Initiatives for PRIs

13.2 Government Initiatives for ULBs

13.3 Finance Commission & Local Bodies

13.4 PESA Act 1996 — Cross-reference

14. Prelims PYQs

15. Mains PYQs

16. Revision Box — Panchayati Raj & Municipalities

Must-Remember — Committees, Numbers, Articles