Polity & Governance Local Government GS Paper II

Panchayats and Municipalities: The 73rd and 74th Amendments

Panchayati Raj and urban local bodies for UPSC: Parts IX and IXA, compulsory and voluntary provisions, Eleventh and Twelfth Schedules, PESA 1996 and devolution challenges.

SyllabusGS II · Devolution of powers and finances up to local levels and challenges therein

By 11 min read Updated Oct 2026 #polity#local-government#panchayati-raj

Prerequisites: Directive Principles (Article 40) · State Government · Federalism and Centre-State Relations

The Hook: Why Did Local Elections Stall Over an OBC Quota?

Connect: In the News → Concept

In March 2021, the Supreme Court (Vikas Kishanrao Gawali v. State of Maharashtra) struck down OBC reservation in certain local bodies in Maharashtra. It held that States may reserve local-body seats for backward classes only after satisfying a “triple test”: (1) a dedicated commission to study the nature of backwardness in local bodies, (2) fixing the proportion of reservation local body-wise on that basis, and (3) keeping total reservation for SCs, STs and OBCs within 50%. Several States then had to delay or reschedule local polls until such commissions reported.

The episode raises the question at the heart of this chapter: local bodies are constitutional institutions — so who controls their composition, their elections and their money?

The Core Concept

Article 40 (a Directive Principle) asked the State to organise village panchayats as units of self-government. For four decades this depended on State goodwill: elections were postponed, bodies were superseded, and funds were thin. The 73rd and 74th Constitutional Amendment Acts, 1992 made local government a constitutional requirement.

Feature73rd Amendment (rural)74th Amendment (urban)
Part of ConstitutionPart IX (“The Panchayats”)Part IXA (“The Municipalities”)
Articles243 to 243O243P to 243ZG
ScheduleEleventh — 29 subjectsTwelfth — 18 subjects
In force24 April 1993 (National Panchayati Raj Day)1 June 1993
Basic unitGram Sabha (Article 243A)Wards Committees for population of 3 lakh or more (Article 243S)
Planning bodyDistrict Planning Committee (Article 243ZD — in Part IXA but covers both)Metropolitan Planning Committee (Article 243ZE)

The road to 1992

YearCommittee / eventKey recommendation or outcome
1957Balwant Rai Mehta Committee (review of Community Development Programme)Three-tier “democratic decentralisation” — village, block, district
1959Rajasthan (Nagaur, 2 October)First State to establish Panchayati Raj; Andhra Pradesh followed the same year
1977–78Ashok Mehta CommitteeTwo-tier system (Zila Parishad and Mandal Panchayat); open participation of political parties
1985G.V.K. Rao CommitteeDistrict as the basic unit of planning
1986L.M. Singhvi CommitteeConstitutional recognition of local self-government
198964th Amendment BillPassed by the Lok Sabha but defeated in the Rajya Sabha
199273rd and 74th Amendment ActsConstitutional status for panchayats and municipalities

Compulsory vs voluntary provisions (Part IX)

UPSC loves this split: some provisions must be followed by every State; others are left to State legislatures.

CompulsoryVoluntary (State’s choice)
Gram Sabha in every village or group of villagesPowers and functions to be devolved (Eleventh Schedule is a guide, not a mandate)
Three-tier system (intermediate tier optional for States with population not exceeding 20 lakh)Financial powers — authorising panchayats to levy taxes, fees, tolls
Direct election of members at all levelsRepresentation of MPs, MLAs and chairpersons of lower tiers in higher panchayats
Indirect election of chairpersons at intermediate and district levelsManner of electing the village-level chairperson
Minimum age of 21 to contestReservation for backward classes (Article 243D(6))
Reservation for SCs and STs in proportion to population — in seats and chairpersons’ offices—
Not less than one-third of seats (and chairpersons’ offices) for women, including within SC/ST quotas—
Five-year term; fresh elections before expiry or within six months of dissolution—
State Election Commission (Article 243K)—
State Finance Commission every five years (Article 243-I)—

The two commissions every State must have

  • State Election Commission (Articles 243K and 243ZA): superintends electoral rolls and elections to panchayats and municipalities. The State Election Commissioner is appointed by the Governor, but can be removed only in the manner and on the grounds of a High Court judge. Its conditions of service cannot be varied to his disadvantage after appointment.
  • State Finance Commission (Articles 243-I and 243Y): constituted by the Governor every five years to recommend the sharing of State taxes with local bodies, the taxes they may levy, and grants-in-aid. The Union Finance Commission must also recommend measures to augment a State’s Consolidated Fund for its local bodies (Article 280(3)(bb) and (c)).

The urban side (Part IXA)

Article 243Q requires three kinds of municipalities, chosen by the Governor on the basis of population, density, revenue and other factors:

graph TD
    A[Article 243Q: Municipalities] --> B[Nagar Panchayat - area in transition from rural to urban]
    A --> C[Municipal Council - smaller urban area]
    A --> D[Municipal Corporation - larger urban area]
    E[Not covered by Part IXA] --> F[Cantonment Boards - Cantonments Act, 2006]
    E --> G[Industrial townships - Article 243Q proviso]

The Twelfth Schedule’s 18 subjects include urban planning, regulation of land use, water supply, public health and sanitation, fire services, slum improvement, urban poverty alleviation, and registration of births and deaths. A Metropolitan Planning Committee is required for every metropolitan area (population of 10 lakh or more).

Scheduled Areas: PESA, 1996

Article 243M keeps Part IX out of Scheduled Areas and tribal areas, and out of Nagaland, Meghalaya and Mizoram, unless Parliament extends it. Parliament did so for Fifth Schedule areas through the Provisions of the Panchayats (Extension to the Scheduled Areas) Act, 1996 (PESA), based on the Dilip Singh Bhuria Committee.

  • Gram Sabha is the centre: it approves plans, identifies beneficiaries, and must be consulted before land acquisition for development projects and before resettlement.
  • Gram Sabhas or panchayats get ownership of minor forest produce, powers to prevent land alienation, manage village markets and control money-lending.
  • At least one-half of seats at every level are reserved for STs, and all chairpersons’ posts are reserved for STs.
  • Applies to the ten States with Fifth Schedule areas: Andhra Pradesh, Chhattisgarh, Gujarat, Himachal Pradesh, Jharkhand, Madhya Pradesh, Maharashtra, Odisha, Rajasthan and Telangana.

Memory Anchors

Schedule numbers: “Eleven players in a village cricket team, twelve lanes in a city” → Eleventh Schedule = panchayats (29 subjects); Twelfth Schedule = municipalities (18 subjects).

Dates: “73 comes before 74, and April comes before June” → 73rd in force 24 April 1993; 74th in force 1 June 1993.

The “3Fs” of devolution: Funds, Functions, Functionaries — every Mains answer on local government should test all three.

Numbers that recur: 21 (minimum age) · one-third (women) · 20 lakh (no intermediate tier) · 3 lakh (Wards Committees) · 10 lakh (Metropolitan Planning Committee) · six months (election after dissolution).

For Prelims

Facts worth a mark
  • The Governor appoints the State Election Commissioner and constitutes the State Finance Commission — not the President, not the Election Commission of India.
  • The State Election Commissioner is removable only like a High Court judge.
  • Reservation for backward classes in panchayats is optional (Article 243D(6)); for SCs/STs and women it is compulsory.
  • Chairpersons of intermediate and district panchayats are elected indirectly; the village chairperson’s mode of election is left to the State.
  • Part IX does not apply to Nagaland, Meghalaya and Mizoram; PESA extends it, with modifications, to Fifth Schedule areas — not to Sixth Schedule areas.
  • Cantonment Boards are created by Union law (Cantonments Act, 2006) and administered by the Ministry of Defence.

For Mains

  • Dimensions: constitutional (Articles 40, 243G, 243W — devolution is “may”, not “shall”); fiscal (weak own revenues, irregular State Finance Commissions, dependence on tied grants); administrative (shortage of staff, parallel bodies and schemes bypassing panchayats); political (proxy representation of elected women, dominance of MLAs and officials); social (Gram Sabha attendance, caste and gender barriers).
  • Keywords: democratic decentralisation, subsidiarity, activity mapping, 3Fs, parallel bodies, sarpanch pati or proxy representation, social audit, convergence, participatory planning (Gram Panchayat Development Plans).
  • Value-addition: the 2nd Administrative Reforms Commission’s 6th Report, Local Governance (2007), on activity mapping and clear devolution; K. Krishna Murthy v. Union of India (2010) — political backwardness is distinct from social and educational backwardness, and local-body reservation must have an empirical basis; Kishansing Tomar v. Municipal Corporation of Ahmedabad (2006) — State Election Commissions must hold elections on time; Vikas Kishanrao Gawali (2021) — the triple test.

Common Traps

Trap #1: 'The Eleventh Schedule transfers 29 subjects to panchayats'
It does not transfer anything. Article 243G says the State legislature may endow panchayats with powers over these matters. The Schedule is an illustrative list; actual devolution varies from State to State.
Trap #2: State Election Commission vs Election Commission of India
The Election Commission of India (Article 324) conducts elections to Parliament, State legislatures, and the offices of President and Vice-President. Panchayat and municipal elections are conducted by the State Election Commission (Articles 243K and 243ZA), which is fully independent of the ECI.
Trap #3: 'The District Planning Committee is only for panchayats'
Article 243ZD sits in Part IXA (municipalities) but the District Planning Committee consolidates plans of both panchayats and municipalities in the district. At least four-fifths of its members are elected from among the elected members of the district panchayat and municipalities, in proportion to the rural and urban population.

In the News

  • March 2021 — Vikas Kishanrao Gawali v. State of Maharashtra lays down the triple test for OBC reservation in local bodies.
  • April 2020 — the SVAMITVA scheme for drone-based mapping of rural inhabited land and issue of property cards was launched on National Panchayati Raj Day.

Practice

Prelims

UPSC Practice · Prelims GS I Qlg-t1

Under Part IX of the Constitution of India, which of the following provisions are compulsory for every State?

  1. Reservation of not less than one-third of seats for women
  2. Constitution of a State Finance Commission every five years
  3. Reservation of seats for backward classes in panchayats

Select the correct answer using the code given below.

  1. A 1 and 2 only
  2. B 2 and 3 only
  3. C 1 and 3 only
  4. D 1, 2 and 3
Solution

Women’s reservation (Article 243D(3)) and the State Finance Commission (Article 243-I) are compulsory. Reservation for backward classes is an enabling provision under Article 243D(6) — States may provide it.

Answer: A

UPSC-pattern practice question
UPSC Practice · Prelims GS I Qlg-t2

The State Election Commissioner, who conducts elections to panchayats and municipalities, is appointed by:

  1. A The President of India
  2. B The Chief Election Commissioner of India
  3. C The Governor of the State
  4. D The Chief Justice of the High Court
Solution

Under Article 243K, the State Election Commissioner is appointed by the Governor. However, he can be removed only in the manner and on the grounds prescribed for a judge of a High Court — a safeguard for independence. The ECI has no role in local elections.

Answer: C

UPSC-pattern practice question
UPSC Practice · Prelims GS I Qlg-t3

With reference to the Panchayats (Extension to the Scheduled Areas) Act, 1996, how many of the following statements are correct?

  1. It extends Part IX of the Constitution, with modifications, to Fifth Schedule areas.
  2. It extends Part IX to Sixth Schedule areas in Assam, Meghalaya, Tripura and Mizoram.
  3. It gives the Gram Sabha a role in consultation before land acquisition for development projects.
  4. It reserves not more than one-fourth of seats in each panchayat for Scheduled Tribes.
  1. A Only one
  2. B Only two
  3. C Only three
  4. D All four
Solution

Statements 1 and 3 are correct. Statement 2 is wrong — PESA covers Fifth Schedule areas; Sixth Schedule areas have Autonomous District Councils. Statement 4 is wrong — PESA reserves not less than one-half of seats for STs, and all chairpersons’ posts.

Answer: B

UPSC-pattern practice question

Mains

UPSC Practice · Mains GS II 15 marks · 250 words Qlg-tm1

Three decades after the 73rd and 74th Amendments, local bodies in India remain “institutions of self-government” more in law than in practice. Critically examine.

Solution

Introduction: The 73rd and 74th Amendments (1992) gave panchayats and municipalities constitutional status, regular elections, reservation and dedicated election and finance commissions. Yet Article 243G and 243W leave the substance of devolution to State legislatures.

Body:

  • Achievements: regular elections in most States; large-scale representation of women, SCs and STs; Gram Sabha as a forum of direct democracy; PESA for tribal self-rule; Gram Panchayat Development Plans.
  • Funds: weak own-source revenue; irregular or unimplemented State Finance Commission reports; dependence on tied grants.
  • Functions: the Eleventh and Twelfth Schedules are only indicative; parallel bodies and centrally sponsored schemes bypass elected bodies; urban parastatals control water, planning and transport.
  • Functionaries: staff remain under State departments; limited technical capacity.
  • Political issues: proxy representation of elected women; delayed elections (Kishansing Tomar, 2006, insisted on timely polls); supersession of bodies.

Way forward: activity mapping (2nd ARC, Local Governance, 2007); timely State Finance Commissions; property-tax reform; cadres for local bodies; strengthening Gram and Ward Sabhas.

Conclusion: The constitutional skeleton is in place; the flesh of real power — the 3Fs — still depends on State political will.

UPSC-pattern practice question

Quick Revision

PointOne-liner
Article 40DPSP: organise village panchayats
73rd AmendmentPart IX, Articles 243–243O, Eleventh Schedule (29), in force 24 April 1993
74th AmendmentPart IXA, Articles 243P–243ZG, Twelfth Schedule (18), in force 1 June 1993
Gram SabhaArticle 243A
WomenNot less than one-third of seats and chairpersons
OBC reservationOptional; triple test (Gawali, 2021)
State Election CommissionAppointed by Governor; removal like a HC judge
State Finance CommissionEvery five years, by the Governor
Metropolitan Planning CommitteePopulation of 10 lakh or more
PESA, 1996Fifth Schedule areas; Gram Sabha central; ST reservation at least one-half

Key Takeaways

Key Takeaways
  1. The 73rd and 74th Amendments made local self-government constitutional, but devolution of actual powers remains discretionary for States.
  2. Know the compulsory vs voluntary split — it is the most-tested Prelims theme in this chapter.
  3. Elections and finances of local bodies rest on State institutions (SEC and SFC) appointed by the Governor.
  4. PESA turns the Gram Sabha into the guardian of tribal land, forests and resources in Fifth Schedule areas.
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