The term Panchayati Raj in India signifies the system of rural local self-government along with development. It has been established in all the states of India by the Acts of the state legislatures to build democracy at the grass-root level and was constitutionalized through the 73rd Constitutional Amendment Act of 1992. Rajasthan was the first state to establish Panchayati Raj in 1959 and was followed by Andhra Pradesh, which also adopted the system in 1959 itself. The UPSC Indian Polity and Governance Syllabus includes Panchayati Raj Institutions which is described in this article.

Panchayati Raj Institutions - Evolution

• The Panchayati Raj institutions have existed in India since ancient times.
• In ancient India, panchayats were usually elected councils with the executive as well as the judicial powers.
• Later, foreign administrations such as Mughal and British, and the natural and forced socio-economic changes undermined the importance of the village panchayats.
• After the attainment of Independence, the evolution of the Panchayati Raj System got a fillip.
• The Gandhian Principles were inculcated in the Constitution of India in Article 40 which stated that the State shall take steps to organize village panchayats and endow them with such powers and authority as may be necessary to enable them to function as units of self-government.
• Several committees were appointed by the Government of India to study the implementation of self-government at the rural level such as Balwant Rai Mehta Committee, Ashok Mehta Committee, G V K Rao Committee, L M Singhvi Committee, Thungon Committee, etc.

Panchayati Raj- Balwant Rai Mehta Committee

• It was appointed in 1957 to examine and suggest measures for better working of the Community Development Programme and the National Extension Service.Recommendations by the Committee were:
• There should be a three-tier Panchayati Raj system with Gram panchayat at the village level, Panchayat Samiti at the block level, and Zila Parishad at the district level with all planning and development activities should be entrusted to these bodies.
• The village panchayat shall be constituted with directly elected representatives, whereas the panchayat Samiti and Zila Parishad shall be constituted with indirectly elected members.
• The Panchayat Samiti should be the executive body while the Zila Parishad should be the advisory, coordinating, and supervisory body with the District Collector as the chairman.

Panchayati Raj- Ashok Mehta Committee

In 1977, the Government of India appointed the Ashok Mehta Committee to suggest measures to revive and strengthen the declining Panchayati Raj system in India.

The major recommendations were:

1. The three-tier system of Panchayati Raj shall be replaced by a two-tier system, with Zila Parishad at the district level and the Mandal panchayat below it, consisting of a group of villages with a total population of 15,000 to 20,000.
2. The district should be the first point for decentralization under popular supervision below the state level.
3. Planning at the district level shall be carried out by Zila Parishad as the executive body.
4. The Panchayati Raj institutions should have compulsory powers of taxation to mobilize their financial resources and there should be a regular social audit by a district-level agency.

Panchayati Raj- G V K Rao Committee

• It was appointed by the planning commission in 1985 to review the existing Administrative Arrangements for Rural Development and Poverty Alleviation Programmes.
• It recognized that the phenomena of bureaucratization of development administration as against the democratization weakened the Panchayati Raj institutions and termed it as ‘grass without roots’.

  Thus, it made some key recommendations such as:

1. Zila Parishad should be the pivotal body in the scheme of democratic decentralization and be the principal body to manage the developmental programs at the district level.
2. Each level of the Panchayati Raj system is to be assigned with specific planning, implementation, and monitoring of the rural developmental programs.
3. A post of District Development Commissioner to be created, who will be the chief executive officer of the Zila Parishad.
4. Elections to each level of Panchayati Raj systems should be held regularly.

Panchayati Raj- L M Singhvi Committee

• In 1986, the Government of India appointed the L M Singhvi Committee with the main objective of recommending steps to revitalize the Panchayati Raj systems for democracy and development.

The major recommendations by the committee were:

1. The Panchayati Raj systems should be constitutionally recognized with establishing provisions to recognize free and fair elections to the bodies.
2. It also recommended the reorganization of villages to make the gram panchayat more viable and stressed the importance of Gram Sabha.
3. It recommended that village panchayats should have more finances for their activities and also be directed towards establishing Nyaya Panchayats.
4. To adjudicate matters relating to the elections to the Panchayati Raj institutions and other matters relating to their functioning, Judicial tribunals are to be set up in each state.

Panchayati Raj- Thungon Committee

• In 1988, a sub-committee of the Consultative Committee of Parliament was constituted under the chairmanship of P.K. Thungon to examine the political and administrative structure in the district for the purpose of district planning.

It made the following recommendations:

1. The Panchayati Raj bodies should be constitutionally recognized with a three-tier system- panchayats at the village, block, and district levels.
2. Zilla Parishad should be the pivot of the Panchayati Raj system and it should act as the planning and development agency in the district.
3. The Panchayati Raj bodies should have a fixed tenure of five years with the maximum period of supersession of a body should be six months.
4. A detailed list of subjects for Panchayati Raj should be prepared and incorporated into the Constitution.
5. Reservation of seats in all the three-tiers should be based on population and there should also be reservation for women.
6. A state finance commission should be set up in each state which would lay down the criteria and guidelines for the devolution of finances to the Panchayati Raj institutions.
7. The district collector should be the chief executive officer of the Zilla Parishad.

Panchayati Raj- Gadgil Committee

It was constituted in 1988 as the Committee on Policy and Programmes.

The committee made the following recommendations:

• Panchayati Raj institutions should be given Constitutional status.
• A three-tier system of Panchayati Raj with panchayats at the village, block, and district levels.
• The term of Panchayati Raj institutions should be fixed at five years and the members of the Panchayats at all three levels should be directly elected. State Election Commission should be established for the conduction of elections.
• Reservation should be provided for SCs, STs, and women.
• The Panchayati Raj bodies should have the responsibility of preparing and implementing plans for socio-economic development and they should be empowered to levy, collect, and appropriate taxes and duties.
• State Finance Commission should be established for the allocation of finances to the Panchayats.
• The recommendations of the Gadgil Committee became the basis for drafting an amendment bill aimed at conferring constitutional status and protection to the Panchayati Raj institutions.

Constitutionalisation Of Panchayati Raj- 73rd Constitution Amendment Act Of 1992

Due to the sustained effort of the civil society organizations, intellectuals, etc, the Parliament passed two amendments to the Constitution – the 73rd Constitution Amendment for rural local bodies (panchayats) and the 74th Constitution Amendment for urban local bodies (municipalities) making them institutions of self-government.

Significance of the Act

• It added Part IX (Article 243 to Article 243 O)to the Constitution, “The Panchayats” and also added the Eleventh Schedule which consists of the 29 functional items of the panchayats.
• It provides shape to Article 40 of the Constitution which directs the state to organise the village panchayats and provide them powers and authority so that they can function as self-government.
• It gives constitutional status to the Panchayati Raj institutions and brought them under the purview of the justiciable part of the Constitution.
• The Act has two parts: compulsory and voluntary. The compulsory provisions must be added to state laws, which include the creation of the new Panchayati Raj systems. Voluntary provisions, on the other hand, maybe included at the discretion of the state government.
• It is a very landmark step in creating democratic institutions at the grassroots level in the country and has transformed representative democracy into participatory democracy.

Salient Features of the 73rd Constitution Amendment Act of 1992

Gram Sabha

• It is a village assembly consisting of all the registered voters within the area of the panchayat, deemed to be the primary body of the Panchayati Raj system.
• It exercises powers and performs such functions as determined by the state legislature.

Three-tier system

• The Act provides for a three-tier system of Panchayati Raj in the states (village, intermediate, and district level).
• However, States with a population of not more than 20 lakhs may not constitute the intermediate level.

Election of members and chairperson

• The members to all the levels of the Panchayati Raj are elected directly while the chairpersons to the intermediate and the district level are elected indirectly from the elected members.
• Also, the Chairperson at the village level is elected as determined by the state government.

Reservation of seats

• It states that reservation is to be provided for SC and ST at all three tiers by their population percentage.
• In the case of Women, not less than one-third of the total number of seats to be reserved for women. There is also a provision that not less than one-third of the total number of offices for chairpersons at all levels of the panchayat be reserved for women.
• The act also authorizes state legislatures to decide on the reservation of seats in any level of panchayat or office of chairperson in favor of backward classes.

Duration of Panchayat

• The Act provides for a five-year term of office to all the levels of the panchayat which can also be dissolved before the completion of its term.
• Further, fresh elections to constitute the new panchayat shall be completed:
• before the expiry of its five-year duration. in case of dissolution;
• before the expiry of a period of six months from the date of its dissolution.

Disqualification

• A person shall be disqualified for being chosen as or for being a member of panchayat if he is so disqualified:
• Under any law for the time being in force for elections to the legislature of the state concerned.
• Under any law made by the state legislature. However, no person shall be disqualified on the ground that he is less than 25 years of age if he has attained the age of 21 years.
• Also, all questions relating to disqualification shall be referred to an authority determined by the state legislatures.

State Election Commission

• It is responsible for superintendence, direction, and control of the preparation of electoral rolls and conducting elections for the panchayat.
• It consists of a state election commissioner appointed by the Governor. The Governor determines the conditions of service and tenure of office of the state election commissioner.
• The state legislature may make provisions concerning all matters relating to elections to the panchayats.

Powers and Functions

• The Panchayats may be endowed with such powers and authority as may be necessary to enable them to function as institutions of self-government by the state legislature.
• Such a scheme may contain provisions related to Gram Panchayat’s work concerning the preparation of plans for economic development and social justice and the implementation of the same.

Finances

The state legislature may:

1. authorize a panchayat to levy, collect, and appropriate taxes, duties, tolls, and fees.
2. assign to a panchayat, the taxes, duties, tolls, and fees levied and collected by the state government.
3. provide for making grants-in-aid to the panchayats from the consolidated fund of the state.

Finance Commission

• A Finance Commission shall be constituted by the Governor of the state after every five years to review the financial position of the panchayats.
• In that regard, it shall make the following recommendations to the Governor:
• The principles that should govern the distribution between the state and the panchayats of the net proceeds of the taxes, duties, etc and also fees levied by the state and allocation of shares amongst the panchayats at all levels, the determination of taxes, duties, tolls, and fees that may be assigned to the panchayats, the grants-in-aid to the panchayats from the consolidated fund of the state.
• The measures needed to improve the financial position of the panchayats and also any other matter referred by the Governor.
• The composition of the commission, the required qualifications of its members, and the manner of their selection may be provided by the State Legislature.
• The Governor is required to place the recommendations of the commission along with the actions taken on the report before the state legislature.
• Audit of Accounts:
• The state legislature may make provisions for the maintenance and audit of panchayat accounts.

Application to Union Territories

The provisions of Part IX apply to several Union territories. But, the President may direct that they would apply to a Union territory subject to such exceptions and modifications as he/she may specify.

Continuance of existing law

• The states have to adopt the new Panchayati raj system based on the Act within the maximum period of one year from 24 April 1993, which was the date of the commencement of the Act.
• It also has a provision that all the Panchayats existing immediately before the commencement of the Act shall continue till the expiry of their term, unless dissolved by the state legislature sooner.

Bar to interference by courts

• The Act bars the courts from interfering in the electoral matters of panchayats and declares that the validity of any law relating to the delimitation of constituencies or the allocation of seats to such constituencies cannot be questioned in any court.
• Also, no election to any panchayat is to be questioned except by an election petition presented to such authority and in such a manner as provided by the state legislature.

PESA Act of 1996

• The 73rd Amendment Act does not apply to the states of Nagaland, Meghalaya and Mizoram, and certain other areas. Certain other areas include the scheduled areas and the tribal areas in the states, hill areas of Manipur for which a district council exists, and the Darjeeling district of West Bengal for which Darjeeling Gorkha Hill Council exists.
• However, Parliament can extend Part IX to the above-mentioned areas subject to the exception and modification it specifies. Thus, the Provisions of the Panchayats (Extension to the Scheduled Areas (PESA) Act was enacted.
• Andhra Pradesh, Chhattisgarh, Gujarat, Himachal Pradesh, Jharkhand, Madhya Pradesh, Maharashtra, Odisha, Rajasthan, and Telangana are the States with Fifth Schedule Areas that are covered under PESA.

Panchayat Devolution Index

• The Ministry of Panchayati Raj has been conducting the annual study on The Panchayat Devolution Index (PDI) since 2006.
• It assesses where each State stands in the matter of devolution of powers to the Panchayati Raj Institution, the rural local bodies.
• It looks at where the States stand in the devolution of powers to the Panchayati Raj Institutions in terms of the 3Fs:

1. Functions – Effective transfer of functions as envisioned in the 73rd Amendment Act of the Indian Constitution.
2. Functionaries – Adequate number of functionaries to discharge the functions under the control of elected leadership.
3. Funds – Commensurate funds to discharge their functional responsibilities.

Recent Issues Raised with Panchayati Raj Institutions

• Allocation of lower amount of Grants by the Central Government: Recently, Telangana Government urged the Centre for a higher grant under 15th Finance Commission funds for rural local bodies, as it is much lesser than the 14th Finance Commission grant.
• Low tax collections: Panchayats received 95 percent of their revenues from the devolved funds from the center/state while generating only 5 percent from their several sources in 2017-18.
• Sarpanch-pati system: The practice of husbands of women sarpanches exercising undue influence is in contradiction with the objective of Women Empowerment.

Conclusion

As a result of the constitutional steps taken by the Union and State governments in bringing Panchayati Raj Institutions into the limelight, India has moved towards what has been described as multilevel federalism. It has also widened the democratic base of the Indian polity by bringing in governance and issue redressal to the grassroot levels in the country.

FAQs

Q1: What are Panchayati Raj Institutions (PRIs)?

Q2: Which Constitutional Amendment introduced PRIs in India?

Q3: What is the significance of the 73rd Constitutional Amendment?

Q4: What are the major challenges faced by Panchayati Raj Institutions?

Q5: How do PRIs contribute to rural development?

MCQs

1. Which level of Panchayati Raj functions at the village level?

A) Panchayat Samiti

B) Gram Panchayat

C) Zilla Parishad

D) Ward Committee

2. In which year was the 73rd Constitutional Amendment passed?

A) 1990

B) 1991

C) 1992

D) 1993

3. What is the primary function of the Zilla Parishad?

A) Village-level governance

B) District-level planning and development

C) Issuing building permits

D) Managing police and law enforcement

4. Which Article of the Constitution deals with Panchayati Raj Institutions?

A) Article 243

B) Article 40

C) Article 356

D) Article 370

5. What is the tenure of elected representatives in Panchayati Raj Institutions?

A) 2 years

B) 3 years

C) 5 years

D) 6 years

GS Mains Questions and Model Answers

Q1. Discuss the role of Panchayati Raj Institutions in enhancing participatory democracy in India.

Answer: Panchayati Raj Institutions (PRIs) play a pivotal role in enhancing participatory democracy by involving local citizens in governance and decision-making processes. Through direct elections and decentralization, PRIs enable citizens at the grassroots level to engage actively in the formulation and implementation of policies that affect their daily lives. They promote accountability, transparency, and responsiveness, fostering a sense of ownership among the people. PRIs are instrumental in addressing local issues such as water management, sanitation, education, and healthcare by empowering local leaders and ensuring community participation. However, their potential is often hindered by financial dependency on state governments, lack of administrative autonomy, and inadequate training for elected representatives. Strengthening PRIs with financial and administrative reforms can significantly enhance participatory democracy in India.

Q2. What are the key challenges faced by PRIs in India, and how can they be addressed?

Answer: The key challenges faced by Panchayati Raj Institutions (PRIs) include limited financial autonomy, inadequate administrative powers, political interference, and a lack of capacity among local representatives. PRIs often depend on state governments for funds, restricting their ability to implement development programs effectively. Political interference disrupts the independent functioning of local bodies, while capacity constraints hinder the formulation and execution of plans. To address these challenges, financial devolution is necessary to grant PRIs greater control over their resources. Additionally, training programs should be implemented to enhance the capacity of elected representatives. Reducing political interference and establishing clear guidelines for the functioning of PRIs can further strengthen their role in local governance.

Q3. Evaluate the impact of the 73rd Amendment Act on rural development in India.

Answer: The 73rd Amendment Act of 1992 has had a significant impact on rural development by decentralizing governance and empowering local bodies to address rural issues effectively. It provided a constitutional framework for the Panchayati Raj system, ensuring direct elections and greater accountability. PRIs have contributed to rural development through initiatives related to agriculture, infrastructure, education, healthcare, and sanitation. However, their impact has been limited by financial dependency and administrative constraints. The success of PRIs in promoting rural development also varies across states due to differences in the devolution of powers. While the 73rd Amendment has laid the foundation for grassroots democracy, further reforms are required to ensure that PRIs become more effective in driving sustainable rural development.

Previous Year Questions on  Panchayati Raj Institutions

1. UPSC CSE 2022

Question: Critically analyze the effectiveness of Panchayati Raj Institutions in promoting social inclusion.

Answer: Panchayati Raj Institutions (PRIs) have contributed significantly to promoting social inclusion by ensuring political representation and participation for marginalized communities, including Scheduled Castes, Scheduled Tribes, and women. The 73rd Amendment Act mandates reservation of seats for these groups, enabling them to participate in local governance. This has fostered a sense of empowerment among marginalized communities and enhanced their involvement in decision-making processes. However, challenges such as caste-based discrimination, political manipulation, and inadequate awareness among elected representatives continue to hinder the effectiveness of PRIs in achieving social inclusion. Strengthening the capacity of marginalized representatives, addressing social prejudices, and promoting civic education can enhance the role of PRIs in promoting social inclusion effectively.

2. UPSC CSE 2021

Question: Discuss the significance of financial autonomy for Panchayati Raj Institutions in achieving sustainable development.

Answer: Financial autonomy is crucial for the effective functioning of Panchayati Raj Institutions (PRIs) in achieving sustainable development. With greater financial autonomy, PRIs can plan and implement development projects based on local needs without depending on state governments for funds. This enables them to address critical areas such as water management, sanitation, healthcare, and education more efficiently. However, the limited financial powers of PRIs often constrain their ability to execute development programs effectively. Dependence on state governments for grants and lack of revenue-generating mechanisms limit their autonomy. Strengthening the financial capacity of PRIs through the devolution of funds, better fiscal management, and local resource mobilization is essential for achieving sustainable development at the grassroots level.