Panchayati Raj (73rd Constitutional Amendment Act) | Indian Polity for UPSC CSE PDF Download

Introduction to Panchayati Raj

Rural development is one of the main objectives of Panchayati Raj and this has been established in all states of India except Nagaland, Meghalaya and Mizoram, in all Union Territories except Delhi. and certain other areas. These areas include:

• The scheduled areas and the tribal areas in the states
• The hill area of Manipur for which a district council exists and
• Darjeeling district of West Bengal for which Darjeeling Gorkha Hill Council exists

Evolution of Panchayati Raj

The Panchayati system in India has deep historical roots, predating independence.Village panchayats have been central to rural governance for centuries, with ancient panchayats wielding significant executive and judicial powers. However, foreign rule, particularly under the Mughal and British empires, along with various socio-economic changes, diminished the panchayats' role. During the pre-independence era, panchayats often reinforced upper caste dominance, exacerbating socio-economic and caste-based divisions.

After India gained independence, the Panchayati Raj System received a significant boost, particularly following the establishment of the Constitution. Article 40 of the Indian Constitution mandates the state to organize and empower village panchayats as units of self-government.

Panchayati Raj System in India

Balwant Rai Mehta Committee:

• In 1957, the Balwant Rai Mehta Committee was established to enhance the Community Development Programme and the National Extension Service.
• The committee recommended a three-tier Panchayati Raj system comprising Gram Panchayat, Panchayat Samiti, and Zila Parishad.
• It emphasized direct elections for Gram Panchayat members and indirect elections for Panchayat Samiti and Zila Parishad members.
• The committee aimed to promote planning and development through local governance.
• It suggested that the Panchayat Samiti should act as the executive body, while the Zila Parishad would serve in an advisory and supervisory capacity.
• The District Collector was proposed to chair the Zila Parishad.
• The committee also stressed the need for adequate resources to enable Panchayati Raj institutions to fulfill their responsibilities.
• Through these recommendations, the committee aimed to strengthen the role of Panchayati Raj institutions in community development and democratic decentralization.
• Even Prime Minister Jawaharlal Nehru supported the panchayat system, advocating for local empowerment.

Ashok Mehta Committee:

• Formed in 1977, the Ashok Mehta Committee aimed to rejuvenate the waning Panchayati Raj system.
• It proposed a two-tier system comprising Zila Parishad (district level) and Mandal Panchayat (group of villages).
• It emphasized the Zila Parishad as the executive body responsible for district-level planning.
• The committee also recommended taxation powers for these institutions to ensure financial autonomy.

G V K Rao Committee:

• In 1985, the G V K Rao Committee, appointed by the Planning Commission, highlighted the bureaucratization of grassroots development, labeling Panchayat Raj institutions as ‘grass without roots’.
• It recommended the Zila Parishad as the central body for democratic decentralization and emphasized its role in managing district-level developmental programs.
• Specific planning, implementation, and monitoring tasks were assigned to district and lower levels of the Panchayati Raj system.
• The committee proposed the creation of a District Development Commissioner post, serving as the chief executive officer of the Zila Parishad.
• Regular elections for all levels of the Panchayati Raj system were also advocated.

L M Singhvi Committee:

• Established in 1986, the L M Singhvi Committee aimed to revitalize Panchayati Raj systems for democracy and development.
• It advocated for constitutional recognition of Panchayati Raj systems and free elections within these systems.
• Reorganization of villages was recommended to enhance the viability of gram panchayats, along with increased financial resources for village panchayats.
• The establishment of judicial tribunals in each state to address election-related issues and other matters concerning Panchayati Raj institutions was also suggested.
• In 1959, Rajasthan and Andhra Pradesh were the pioneers in adopting the Panchayati Raj system, with other states following suit.
• Despite state-level variations, most adopted a three-tier structure of village, block, and district-level panchayats.
• Due to persistent efforts by civil society, intellectuals, and progressive leaders, the 73rd and 74th Constitutional Amendments were passed, establishing panchayats and municipalities as institutions of self-government.
• Subsequently, all states enacted their own laws aligning with these constitutional provisions.

73rd Constitutional Amendment Act of 1992

Significance of the Act:

• The Act introduced Part IX to the Constitution, titled "The Panchayats," and included the Eleventh Schedule, which outlines 29 functional items for panchayats.
• Part IX spans Article 243 to Article 243 O.
• It gives concrete form to Article 40 of the Constitution, which directs states to organize village panchayats with the necessary powers and authority for effective self-governance.
• The Act brings the Panchayati Raj system under the justiciable part of the Constitution, requiring states to adopt it. It also ensures that elections for Panchayati Raj institutions are conducted independently of state government control.
• The Act comprises compulsory and voluntary parts. Compulsory provisions, such as establishing new Panchayati Raj systems, must be incorporated into state laws. Voluntary provisions are at the discretion of state governments.
• This Act represents a significant stride towards establishing democratic institutions at the grassroots level, transforming representative democracy into participatory democracy.

Salient Features of the Act:

• Gram Sabha: The Gram Sabha is the foundational body of the Panchayati Raj system, comprising all registered voters within the panchayat area. It exercises powers and performs functions as determined by the state legislature.
• Three-tier system: The Act mandates a three-tier Panchayati Raj system at the village, intermediate, and district levels. States with populations below 20 lakhs may skip the intermediate level.
• Election of members and chairperson: Members at all levels of the Panchayati Raj are elected directly. Chairpersons for the intermediate and district levels are elected indirectly from among the elected members, while the village chairperson is elected according to state government regulations.
• Reservation of seats: Seats are reserved for Scheduled Castes (SC) and Scheduled Tribes (ST) at all levels based on their population percentages. Additionally, not less than one-third of the total seats and chairperson offices at all levels must be reserved for women. State legislatures can also reserve seats for backward classes.
• Duration of Panchayat: Panchayats are given a five-year term, but they can be dissolved earlier. Fresh elections must be held either before the end of the five-year term or within six months of dissolution.
• Disqualification: A person may be disqualified from being a panchayat member if they meet disqualification criteria set by state law. However, individuals under 25 years of age are not disqualified if they are at least 21 years old. Disqualification matters are referred to an authority designated by the state legislature.
• State election commission: The commission oversees the preparation of electoral rolls and conducts panchayat elections. The state legislature can regulate all matters related to panchayat elections.
• Powers and Functions: The state legislature can grant panchayats the necessary powers and authority for self-governance. This includes responsibilities related to economic development and social justice, as outlined in the Eleventh Schedule.
• Finances: State legislatures can authorize panchayats to levy and collect taxes, duties, tolls, and fees, and can assign state-collected taxes, duties, tolls, and fees to panchayats. They can also provide grants-in-aid and establish funds for panchayat finances.
• Finance Commission: The state finance commission reviews panchayat finances and recommends actions to supplement panchayat resources.
• Audit of Accounts: State legislatures can establish provisions for maintaining and auditing panchayat accounts.
• Application to Union Territories: The President can apply the Act's provisions to Union Territories with specified exceptions and modifications.
• Exempted states and areas: The Act does not apply to Nagaland, Meghalaya, Mizoram, certain scheduled and tribal areas, the hill area of Manipur with a district council, and the Darjeeling district of West Bengal with the Darjeeling Gorkha Hill Council. However, Parliament can extend the Act to these areas with modifications.
• Continuance of existing law: State laws related to panchayats remain in force for one year from the Act's commencement, after which states must adopt the new system. Existing panchayats continue until their terms expire, unless dissolved earlier by the state legislature.
• Bar to interference by courts: The Act prevents courts from interfering in panchayat electoral matters. It establishes that the validity of laws concerning constituency delimitation or seat allotment cannot be challenged in court, and panchayat elections can only be questioned through election petitions as specified by state legislation.

PESA Act of 1996

The provisions of Part IX are not applicable to the Fifth Schedule areas. The Parliament can extend this Part to such areas with modifications and exceptions as it may specify. Under these provisions, Parliament enacted Provisions of the Panchayats (Extension to the Scheduled Areas) Act, popularly known as PESA Act or the extension act.

Objectives of the PESA Act:

• Extend the provisions of Part IX to scheduled areas.
• Provide self-rule for the tribal population.
• Establish village governance with participatory democracy.
• Evolve participatory governance aligned with traditional practices.
• Preserve and safeguard the traditions and customs of the tribal population.
• Empower panchayats with powers conducive to tribal requirements.
• Prevent higher-level panchayats from assuming the powers and authority of lower-level panchayats.

Multi-Level Federalism:

• The constitutional steps taken by the union and state governments have led India towards multi-level federalism and widened the democratic base of the Indian polity.
• Before the amendments, the Indian democratic structure was limited to elected representatives in Parliament, state assemblies, and certain union territories.
• The system has brought governance and issue redressal to grassroots levels, but there are ongoing issues that need to be addressed to respect basic human rights.

Impact on Human Rights:

• The functioning of the new generation of panchayats has revealed several issues impacting human rights.
• The nature of Indian society, characterized by inequality,social hierarchy, and the divide between the rich and poor, plays a crucial role in shaping the human rights situation.
• The caste system, unique to India, contributes to social hierarchy, making caste and class significant factors in this context.

Challenges to Traditional Practices:

• The local governance system has challenged long-standing practices of hierarchy related to caste,religion, and discrimination against women in rural areas.

Issues in Panchayat Functioning:

• Lack of Adequate Funds: There is a need to expand the domain of panchayats to enable them to raise their own funds.
• Interference by MPs and MLAs: The interference of area MPs and MLAs in the functioning of panchayats negatively impacts their performance.
• Delegation of Powers: The 73rd amendment mandated the creation of local self-governing bodies but left the decision to delegate powers, functions, and finances to state legislatures, contributing to the failure of PRIs.
• Devolution of Functions: The transfer of governance functions such as education, health, sanitation, and water was not mandated. Instead, the amendment listed functions that could be transferred, leaving it to state legislatures to devolve functions.
• Limited Devolution of Authority: There has been minimal devolution of authority and functions over the past 26 years.
• State Executive Authorities: The lack of devolution led to the proliferation of state executive authorities to carry out functions, such as state water boards.
• Lack of Finances: The major failure of the Amendment is the lack of finances for PRIs. Local governments can raise their own revenue through local taxes or receive intergovernmental transfers.
• Power to Tax: The power to tax, even for subjects within PRIs' purview, must be authorized by state legislatures. The 73rd Amendment left this choice to state legislatures, which most states have not exercised.
• Intergovernmental Transfers: State governments can devolve a percentage of their revenue to PRIs. The constitutional amendment created provisions for State Finance Commissions to recommend revenue shares between state and local governments, but these are merely recommendations.
• Inaction by States: Despite recommendations from finance commissions for greater fund devolution, states have taken little action to devolve funds.
• Reluctance of PRIs: PRIs are hesitant to undertake projects requiring significant financial outlay and struggle to address basic local governance needs.
• Structural Deficiencies: PRIs lack secretarial support and sufficient technical knowledge, hindering bottom-up planning.
• Adhocism: There is a lack of clear agenda setting in gram sabha and gram samiti meetings, leading to a lack of proper structure.
• Panch-Pati and Proxy Representation: Although women and SC/STs have representation in PRIs through reservations mandated by the 73rd amendment, instances of panch-pati and proxy representation persist.
• Weak Accountability Arrangements: Accountability arrangements remain weak even after 26 years of PRIs' constitutional arrangement.
• Ambiguity in Functions and Funds: The ambiguity in the division of functions and funds has concentrated power with the states, restraining elected representatives who are more attuned to ground-level issues.