# Panchayati Raj & Municipalities ā€” the 73rd & 74th Amendments (Art 243ā€“243ZG) Source: https://tracknation.in/story/panchayati-raj-municipalities-the-73rd-74th-amendments-art-243-243zg (TrackNation ā€” free UPSC notes with PYQs) > UPSC notes on India's local government: the committee lineage from Balwantrai Mehta to Gadgil, the 73rd Amendment's Part IX structure/reservation/finance rules and the Eleventh Schedule, the PESA Act 1996 for Scheduled Areas, the 74th Amendment's Part IX-A municipal structure and the Twelfth Schedule, District/Metropolitan Planning Committees, the eight types of urban local bodies including Cantonment Boards, and the Central Council of Local Government ā€” every Article number and named committee/ ## Evolution & Constitutionalisation of Panchayati Raj šŸŽÆ **Exam priority: Important.** *Local Government is a State List subject, so its constitutional status came late ā€” only via the 73rd and 74th Amendments in 1992. Learn the committee lineage (who recommended what, and in which order) and the compulsory-vs-voluntary provision split precisely; Mains has repeatedly asked about the 3Fs (funds, functions, functionaries) devolution gap.* "Local Government" sits in the **State List** (Seventh Schedule, Entry 5) ā€” so, unlike Parliament or the judiciary, rural and urban self-government bodies had **no constitutional status at all** until 1992. Two Amendments changed that: the **73rd (1992)** for rural Panchayati Raj, and the **74th (1992)** for urban Municipalities ā€” both drafted, debated and passed together. ## Evolution of Panchayati Raj ā€” the Committee Lineage - The **Balwantrai Mehta Committee (1957)** ā€” examining the Community Development Programme (1952) ā€” coined the idea of **"democratic decentralisation"**, recommending a **three-tier structure** (Gram Panchayat ā†’ Panchayat Samiti ā†’ Zila Parishad) with directly-elected village panchayats and indirectly-elected higher tiers. **Rajasthan** adopted it first (Nagaur, 2 October 1959), but states diverged wildly ā€” Tamil Nadu ran a two-tier system, West Bengal a four-tier one ā€” since there was no constitutional uniformity to enforce a common pattern. - Later committees pushed for constitutional status: the **Ashok Mehta Committee (1977)** proposed a two-tier system and, notably, **constitutional recognition**; the **G.V.K. Rao Committee (1985)** found Panchayati Raj had become bureaucratised and "divorced" from real development work ā€” memorably calling it **"grass without roots"** ā€” and pushed the Zila Parishad back to the centre of district planning; the **L.M. Singhvi Committee (1986)** was the first to explicitly suggest adding a **new chapter to the Constitution** itself, and called the Gram Sabha "the embodiment of direct democracy"; the **Gadgil Committee (1988)** then drafted the concrete recommendations ā€” constitutional status, a fixed 5-year term, direct elections at all tiers, an Eleventh-Schedule-style subject list, and dedicated State Finance/Election Commissions ā€” that became the direct template for the actual amendment bill. - An earlier attempt ā€” the **64th Amendment Bill (1989)**, under Rajiv Gandhi ā€” passed the Lok Sabha but was **rejected by the Rajya Sabha**, criticised as over-centralising. A revised V.P. Singh-era bill (1990) lapsed with that government's fall. The **Narasimha Rao** government's version finally succeeded, becoming the **73rd Constitutional Amendment Act, 1992**, in force from **24 April 1993**. ## 73rd Amendment ā€” Structure, Elections & Reservations The 73rd Amendment inserted a new **Part IX ("The Panchayats"), Articles 243 to 243-O** ā€” giving practical effect to **Article 40** (a Directive Principle directing the state to organise village panchayats) ā€” plus a new **Eleventh Schedule** of 29 subjects panchayats may handle. ## Structure, Elections & Reservations - **Gram Sabha (Art 243A):** every village's full body of registered voters ā€” the foundational assembly, with powers left to state law. **Three-tier structure (Art 243B):** village, intermediate and district panchayats in every state ā€” except a state with population under **20 lakh**, which may skip the intermediate tier. - **Elections:** all panchayat *members*, at all three levels, are **directly elected**; *chairpersons* of the intermediate and district panchayats are elected **indirectly** by their own members, while a village panchayat's chairperson is elected however the state legislature decides. Minimum age to contest is **21 years** (a person cannot be disqualified merely for being under 25 if they've crossed 21). - **Reservation (Art 243D):** SC/ST seats (members *and* chairperson posts) in proportion to their population at every tier; **at least one-third** of all seats and chairperson posts reserved for **women** (within that, a further share for SC/ST women); states may additionally reserve for backward classes. SC/ST reservation lapses when the Article 334 window closes ā€” currently extended to **2030**. Uniquely, this SC reservation doesn't apply in **Arunachal Pradesh** (no Scheduled Castes live there), a carve-out added by the **83rd Amendment, 2000**. - **Duration (Art 243E):** a fixed **5-year** term from first sitting; if dissolved early, fresh elections must complete within **6 months** of dissolution (skipped only if under 6 months remained anyway) ā€” and a panchayat re-constituted this way serves only the leftover time, not a fresh full term. - **State Election Commission (Art 243K):** a state election commissioner, appointed by the **Governor**, runs panchayat (and municipal) elections. Removal follows the **same process as a High Court judge** ā€” so, despite being Governor-appointed, the Governor alone cannot remove them; only Parliament's process can. ## 73rd Amendment ā€” Powers, Finances & PESA Powers, money, and the special regime that extends Panchayati Raj into tribal India. ## Powers, Finances & the Compulsory-Voluntary Split - **Powers (Art 243G):** state legislatures MAY devolve responsibility for the **29 Eleventh Schedule** subjects ā€” agriculture, minor irrigation, rural housing, drinking water, primary education, health/sanitation, poverty alleviation and social welfare among them ā€” but this devolution itself is discretionary, which is the single biggest reason PRI empowerment varies so much by state. - **Finances (Art 243H):** states may let panchayats levy/collect their own taxes, assign them a share of state taxes, or grant aid from the state's Consolidated Fund. **State Finance Commission (Art 243-I):** the **Governor** constitutes one every **5 years** to recommend how state-collected taxes/duties should be shared with panchayats ā€” a distinct body from the *Central* Finance Commission (Article 280), which separately recommends how the Centre can help states supplement panchayat funding. - Only a handful of provisions are truly **compulsory** for every state: the Gram Sabha, the three-tier structure itself, direct elections to all member seats, SC/ST/women reservation, the 5-year term with a 6-month re-election rule, and setting up both the State Election Commission and a 5-yearly State Finance Commission. Everything else ā€” how much power and money panchayats actually get (Art 243G/H), representation for MPs/MLAs, backward-class reservation ā€” is **voluntary**, left to each state's own law. This split is exactly why PRI strength differs so sharply across India even though every state technically complies with the Amendment. - **Exempted:** Part IX doesn't apply to **Nagaland, Meghalaya, Mizoram**, scheduled/tribal areas, the hill areas of Manipur, or Darjeeling district ā€” though Parliament may extend it with modifications, which is exactly what it did for Fifth Schedule tribal areas via the **PESA Act, 1996** ("Provisions of the Panchayats Extension to the Scheduled Areas"). PESA adapts Panchayati Raj to tribal custom: the Gram Sabha must **approve development plans** and identify welfare beneficiaries; ST reservation must be **at least half** of all seats, with **every chairperson post** reserved for STs; and Gram Sabha/Panchayat consent is **mandatory** before land acquisition or granting a minor-mineral mining lease in a Scheduled Area. ## Evolution & Constitutionalisation of Municipalities Urban local government followed a strikingly similar path ā€” decades of British-era origins, one failed amendment attempt, then success alongside the rural reform. ## Evolution & Constitutionalisation of Municipalities - India's first municipal corporation was set up at **Madras (1688)**, followed by Bombay and Calcutta (1726). **Lord Ripon's Resolution (1882)** is called the **"Magna Carta" of local self-government**, earning Ripon the title "father of local self-government in India." Urban bodies stayed purely statutory ā€” no constitutional status ā€” right through independence. - Like the panchayats, an earlier attempt failed first: the **65th Amendment Bill, 1989** (the "Nagarpalika Bill," also under Rajiv Gandhi) passed the Lok Sabha but was **defeated in the Rajya Sabha**. The Narasimha Rao government's version succeeded as the **74th Constitutional Amendment Act, 1992**, in force from **1 June 1993** ā€” inserting a new **Part IX-A ("The Municipalities"), Articles 243-P to 243-ZG**, and a new **Twelfth Schedule** listing 18 municipal subjects (urban planning, water supply, public health/sanitation, fire services, slum improvement and urban poverty alleviation among them). - **Three types of municipalities (Art 243Q)** ā€” the Governor classifies each urban area (by population, density, non-agricultural employment share, and revenue potential) as a **Nagar Panchayat** (a transitional, rural-to-urban area), a **Municipal Council** (a smaller urban area), or a **Municipal Corporation** (a larger urban area, e.g. Delhi, Mumbai, Kolkata). If an industrial establishment already provides all civic services in an area, the Governor may instead declare it an **industrial township** ā€” skipping a municipality altogether. Altogether, India runs **eight kinds** of urban local bodies: the three above, plus Notified Area Committees, Town Area Committees, Cantonment Boards, Townships and Port Trusts. ## 74th Amendment ā€” Structure, Planning Committees & the Mayor-vs-President Contrast Composition and reservation for municipalities mirror the panchayat rules almost exactly ā€” but the internal authority structure, and a few standalone urban bodies, hold some of this topic's sharpest contrasts. ## Structure, Planning Committees & the Mayor-vs-President Contrast - **Composition & reservation** track the panchayat rules closely: members directly elected from wards, SC/ST/women reservation (at least one-third) on the same terms, a 5-year term with the same 6-month re-election rule. A **Wards Committee** is compulsory for any municipal area of **3 lakh or more** people. - **District Planning Committee (Art 243ZD):** every district consolidates the plans of its panchayats and municipalities through one DPC, on which **four-fifths of members** must be elected, from among themselves, by the district's elected panchayat and municipal members. **Metropolitan Planning Committee (Art 243ZE):** required for every metropolitan area (population **10 lakh or more**, spanning multiple municipalities/panchayats); here **two-thirds of members** must be similarly elected. Both fractions are a recurring "match the committee to its elected-member share" trap. - Both a Municipal Corporation and an ordinary Municipality run on the same three-authority model ā€” a **Council** (elected, deliberative/legislative), **Standing Committees**, and a **chief executive** ā€” but the top office means opposite things in each: a Corporation's **Mayor** is a largely **ornamental**, one-year-renewable ceremonial head, with real day-to-day executive power resting in the **Municipal Commissioner** (state-appointed, usually an IAS officer). In an ordinary Municipality, by contrast, the **President/Chairman** genuinely **exercises executive power** and is the real "pivot" of administration, while the **Chief Executive Officer** only runs day-to-day affairs under them. ## The Odd One Out ā€” Cantonment Boards, and Other Special-Purpose Bodies - Every other urban body above is created and run by a **state** government ā€” except the **Cantonment Board**, set up under the **Cantonments Act, 2006** (replacing a 1924 Act) and run by the **Union Defence Ministry**. India's **62 cantonment boards** are graded into four categories by civilian population (Category I: above 50,000, down to Category IV: below 2,500); a partly-elected, partly-nominated body, chaired *ex officio* by the local military station commander, with a Presidentially-appointed Executive Officer running daily affairs. - A **Notified Area Committee** (for a fast-industrialising or almost-qualifying town) is entirely **nominated** ā€” neither elected nor even a statutory body in the usual sense. A **Township** serves a public-sector enterprise's own colony with an appointed administrator and no elected members at all. **Port Trusts** and various **special-purpose agencies** (development authorities, water/sewerage boards, pollution control boards) handle one function each, independent of the general-purpose municipal bodies around them. ## Municipal Revenue & Why UPSC Asks This Money and one further, easily-forgotten Article 263 body round out the picture. ## Municipal Revenue & the Central Council of Local Government - Urban bodies draw on **tax revenue** (property tax is the single biggest source), **non-tax revenue** (fees, fines, user charges), **grants** from the Centre/state, **devolution** via the State Finance Commission (the very same body that reviews panchayat finances also reviews municipal finances every 5 years), and **loans** (state-approved). - The **Central Council of Local Government** ā€” set up in **1954** under **Article 263** (the same Article behind the Inter-State Council) ā€” is a purely **advisory** body chaired by the Union Housing & Urban Affairs Minister, with state local-government ministers as members. It handled both rural and urban local government until 1958, and only urban matters since ā€” recommending policy, proposing legislation, and reviewing Centrally-funded local-government schemes. ## Further Reading - Standard NCERT-level texts and reference books on the Indian Constitution and Polity (any UPSC reading list). - The Constitution of India (Bare Act) ā€” Articles 243ā€“243O (Panchayats) and 243Pā€“243ZG (Municipalities); the PESA Act, 1996. ## Why UPSC Asks This - The 73rd/74th Amendments are a rare case where the Constitution names exact **fractions** (one-third women, four-fifths DPC, two-thirds MPC) ā€” memorise them precisely, they're the most repeated trap. - The committee lineage (Balwantrai Mehta ā†’ Ashok Mehta ā†’ G.V.K. Rao ā†’ L.M. Singhvi ā†’ Gadgil) is a classic "who recommended what first" sequencing question. - Mayor (ornamental) vs Municipal President (executive) vs Municipal Commissioner (real Corporation executive) is a three-way contrast worth drilling until automatic. ## Test Yourself: Practice Questions & PYQs Panchayati Raj and Municipalities practice ā€” the committee lineage, 73rd/74th Amendment structure and reservation rules, PESA, planning committees, and the urban local body types. Then Prelims-pattern PYQs. ## Practice Questions **Q1.** The Balwantrai Mehta Committee (1957) is credited with recommending: - (a) The three-tier 'democratic decentralisation' Panchayati Raj system - (b) Reservation of one-third seats for women - (c) A two-tier Panchayati Raj system - (d) Direct constitutional status for panchayats **Answer: (a)** ā€” Balwantrai Mehta first proposed the three-tier structure and the term 'democratic decentralisation' in 1957. **Q2.** Which committee described the state of Panchayati Raj as 'grass without roots'? - (a) G.V.K. Rao Committee - (b) Gadgil Committee - (c) Ashok Mehta Committee - (d) L.M. Singhvi Committee **Answer: (a)** ā€” The G.V.K. Rao Committee (1985) used this phrase to describe the bureaucratisation of rural development divorced from Panchayati Raj. **Q3.** The 73rd Constitutional Amendment Act, 1992 came into force on: - (a) 26 January 1993 - (b) 24 April 1993 - (c) 1 June 1993 - (d) 2 October 1993 **Answer: (b)** ā€” The 73rd Amendment (Panchayats) took effect on 24 April 1993; the 74th Amendment (Municipalities) followed on 1 June 1993. **Q4.** A state with a population not exceeding how many may skip the intermediate tier of Panchayati Raj? - (a) 20 lakh - (b) 15 lakh - (c) 10 lakh - (d) 25 lakh **Answer: (a)** ā€” Article 243B allows a state with population up to 20 lakh to have only village and district panchayats. **Q5.** Under the 73rd Amendment, what fraction of total panchayat seats must be reserved for women? - (a) One-fifth - (b) Exactly one-half - (c) Not less than one-third - (d) One-fourth **Answer: (c)** ā€” Article 243D reserves not less than one-third of seats and chairperson posts for women at every tier. **Q6.** SC reservation of panchayat seats does not apply in which state, and why? - (a) Sikkim, due to special Article 371F provisions - (b) Mizoram, since it is fully exempted - (c) Nagaland, since Part IX does not apply there at all - (d) Arunachal Pradesh, since it has no Scheduled Caste population **Answer: (d)** ā€” The 83rd Amendment (2000) exempted Arunachal Pradesh from SC reservation specifically, since it has no SC population. **Q7.** A State Election Commissioner, though appointed by the Governor, can be removed: - (a) By the State Election Commission itself - (b) By the Governor at will - (c) Only in the manner and on grounds prescribed for removing a High Court judge - (d) By the Chief Minister's recommendation **Answer: (c)** ā€” Removal mirrors a High Court judge's process ā€” meaning the Governor who appoints them cannot unilaterally remove them. **Q8.** The State Finance Commission constituted under Article 243-I: - (a) Is constituted by the President, not the Governor - (b) Recommends grants only to the Union government - (c) Reviews the financial position of panchayats and municipalities in that state - (d) Reviews the financial position of the Union and the states **Answer: (c)** ā€” It is a Governor-constituted, 5-yearly body reviewing panchayat/municipal finances ā€” distinct from the Central Finance Commission under Article 280. **Q9.** Under the PESA Act, 1996, the minimum share of seats reserved for Scheduled Tribes in a Panchayat within a Scheduled Area is: - (a) Not less than one-half - (b) One-third - (c) One-fourth - (d) Two-thirds **Answer: (a)** ā€” PESA mandates ST reservation of at least half the seats, higher than Part IX's general proportional standard, plus all chairperson posts reserved for STs. **Q10.** The 74th Constitutional Amendment Act, 1992 added which new Schedule to the Constitution? - (a) Eleventh Schedule - (b) Ninth Schedule - (c) Tenth Schedule - (d) Twelfth Schedule **Answer: (d)** ā€” The Twelfth Schedule (18 items) came with the 74th Amendment; the Eleventh Schedule (29 items) came with the 73rd. **Q11.** In a District Planning Committee, what fraction of members must be elected by district panchayat and municipal members from amongst themselves? - (a) Three-fourths - (b) Two-thirds - (c) All members - (d) Four-fifths **Answer: (d)** ā€” Four-fifths of DPC members must be so elected; the Metropolitan Planning Committee's equivalent fraction is two-thirds. **Q12.** Which statement correctly distinguishes a Municipal Corporation's Mayor from an ordinary Municipality's President? - (a) Neither has any presiding function - (b) The Mayor is largely ornamental while the President genuinely exercises executive power - (c) The Mayor holds real executive power while the President is purely ceremonial - (d) Both hold identical executive powers **Answer: (b)** ā€” A Corporation's real executive is the state-appointed Commissioner; in an ordinary Municipality, the President/Chairman itself wields executive power. **Q13.** A Cantonment Board is distinct from all other Indian urban local bodies because it is: - (a) Exempt from any Central legislation - (b) Entirely nominated, with no elected members - (c) The only urban body with no chief executive officer - (d) Created and administered by the Union (Defence Ministry), not the state **Answer: (d)** ā€” Cantonment Boards, under the Cantonments Act 2006, are the only urban local body created AND run by the Central government. ### UPSC Previous Year Questions (PYQs) *Pattern: committee-to-recommendation matching; exempted areas under Part IX/IX-A; Eleventh/Twelfth Schedule item counts; State Finance Commission procedure; PESA's Gram Sabha consultation requirement; DPC/MPC elected-member fractions; urban local body types.* **Q14.** Consider the following statements: (1) 'Local Government' is a subject placed in the State List of the Seventh Schedule. (2) The 73rd and 74th Constitutional Amendments made Panchayats and Municipalities constitutionally mandatory in every state without exception. Which of the statements given above is/are correct? - (a) Both 1 and 2 - (b) 2 only - (c) 1 only - (d) Neither 1 nor 2 **Answer: (c)** ā€” Statement 1 is correct. Statement 2 is wrong ā€” several states/areas (Nagaland, Meghalaya, Mizoram, scheduled/tribal areas, etc.) are expressly exempted from Part IX/IX-A. **Q15.** With reference to the Eleventh and Twelfth Schedules of the Constitution, consider the following statements: (1) The Eleventh Schedule, added by the 73rd Amendment, lists 29 functional items for panchayats. (2) The Twelfth Schedule, added by the 74th Amendment, lists 18 functional items for municipalities. Which of the statements given above is/are correct? - (a) Both 1 and 2 - (b) Neither 1 nor 2 - (c) 2 only - (d) 1 only **Answer: (a)** ā€” Both are correct ā€” 29 items under Article 243G (Eleventh Schedule) and 18 items under Article 243W (Twelfth Schedule). **Q16.** The recommendations of the State Finance Commission are placed by the Governor before: - (a) The President directly - (b) The Central Finance Commission - (c) The state legislature, along with an action-taken report - (d) The Parliament **Answer: (c)** ā€” Article 243-I requires the Governor to lay the Commission's recommendations, with an action-taken report, before the state legislature. **Q17.** Which of the following bodies, under the PESA Act 1996, must be consulted before land acquisition for a development project in a Scheduled Area? - (a) The State Finance Commission - (b) The Gram Sabha or the appropriate-level Panchayat - (c) The District Collector alone - (d) The Governor alone, without further consultation **Answer: (b)** ā€” PESA makes Gram Sabha/Panchayat consultation mandatory before land acquisition or resettlement in Scheduled Areas. **Q18.** Consider the following statements about Metropolitan Planning Committees: (1) They are required for every metropolitan area with a population of 10 lakh or more. (2) Two-thirds of their members must be elected by municipal and panchayat representatives from amongst themselves. Which of the statements given above is/are correct? - (a) Neither 1 nor 2 - (b) 1 only - (c) 2 only - (d) Both 1 and 2 **Answer: (d)** ā€” Both are correct per Article 243ZE ā€” the 10-lakh population threshold and the two-thirds elected-member requirement. **Q19.** The Central Council of Local Government was constituted in 1954 under which Article of the Constitution? - (a) Article 243 - (b) Article 40 - (c) Article 280 - (d) Article 263 **Answer: (d)** ā€” Article 263 (the same Article underlying the Inter-State Council) is the constitutional basis for this advisory body. **Q20.** Which of the following urban local bodies is entirely a nominated body, with no elected members at all? - (a) Cantonment Board - (b) Notified Area Committee - (c) Municipality - (d) Municipal Corporation **Answer: (b)** ā€” A Notified Area Committee, including its chairman, is wholly nominated by the state government ā€” neither elected nor a conventional statutory body. ### Mains Practice Questions Use these to frame full-length answers. You don't have to answer one exactly ā€” they show the angles UPSC tests, so let them guide which points you cover. - Trace the committee-level evolution of Panchayati Raj from the Balwantrai Mehta Committee to the 73rd Amendment. - Distinguish the compulsory and voluntary provisions of the 73rd Constitutional Amendment Act. - How does the PESA Act, 1996 adapt the standard Panchayati Raj framework for Scheduled Areas? - Compare the composition and elected-member fractions of the District Planning Committee and the Metropolitan Planning Committee. - Examine why, despite constitutional status since 1992, Panchayati Raj Institutions remain financially weak (the '3Fs' problem). - Distinguish the role of a Municipal Corporation's Mayor from that of an ordinary Municipality's President/Chairman.