👉 Panchayati Raj Institutions in India: Achievements, Challenges & the Way Forward for Local Governance

The Panchayati Raj Institutions (PRIs) represent the bedrock of local self-governance in rural India, embodying the nation's commitment to grassroots democracy and decentralization. Constitutionally recognized through the 73rd Amendment Act of 1992, these institutions empower rural communities by providing them with the authority and resources to manage their local affairs, foster economic development, and strengthen social justice.

This comprehensive set of notes delves into the multifaceted aspects of PRIs, covering their historical evolution, constitutional framework, achievements, persistent challenges, and the path forward for enhancing their effectiveness in India's governance landscape. Designed for UPSC aspirants, State PCS candidates, law and political science students, and academic researchers, it aims to provide conceptual clarity, constitutional accuracy, and analytical depth.

1. Introduction: Understanding Panchayati Raj Institutions (PRIs)

Panchayati Raj literally translates to 'rule of five officials' and historically refers to a system of rural administration in India. In contemporary India, Panchayati Raj Institutions (PRIs) are the constitutionally mandated local self-government bodies operating in rural areas. They form the third tier of India's democratic structure, aiming to bring governance closer to the people and ensure their direct participation in local development and decision-making processes.

The primary objective of PRIs is to promote rural development, strengthen social justice, and facilitate the implementation of various Central and State Government schemes, including those related to the 29 subjects listed in the Eleventh Schedule of the Constitution.

2. Historical and Constitutional Background

The concept of local self-governance in India is deeply rooted in its ancient past, evolving through various historical periods before being formalized in independent India.

2.1. Ancient Period

Village councils, often known as 'Panchayats' (council of five), have been a dominant political institution in rural India for centuries, serving as self-governing units. Ancient texts like the Rigveda, Arthashastra by Chanakya (Kautilya), Manu-smriti, Ramayana, and Mahabharata make references to village assemblies (sabhas and samitis) and village elders (gramins or gramiks) responsible for local administration and dispute resolution. During the Mauryan, Gupta, and Chola dynasties (especially in Southern India from the 9th–13th centuries), villages functioned as largely autonomous self-governing units, managing local affairs, resources, and justice.

2.2. Medieval Period

Under the Mughals, village panchayats continued to exist, though their autonomy was somewhat weakened by the centralized administrative structure. They functioned as self-sufficient councils of local elders headed by a 'muqaddam' (leader) with a 'patwari' (accountant) and 'chowkidar' (watchman).

2.3. British Period

The advent of British rule led to a decline in the autonomy and importance of traditional panchayat systems due to the introduction of centralized administration. However, some efforts were made to revive local self-governance:

• Mayo's Resolution (1870): Lord Mayo's resolution on financial decentralization aimed to shift select subjects to provincial control and allowed local taxation for services like education and sanitation. It also permitted district magistrates to set up nominated village panchayats.
• Ripon's Resolution (1882): Often hailed as the "Father of Local Self-Government in India," Lord Ripon's resolution proposed reforms to strengthen local bodies, including village councils. However, these reforms were largely restricted to urban areas.
• Government of India Acts (1919 & 1935): The 1919 Act provided a framework for rural self-governance but had limited impact. The 1935 Act gave more autonomy to provinces to structure local governments, leading to the enactment of Panchayat Acts in several provinces.

2.4. Post-Independence Era and Constitutional Vision

During the drafting of the Indian Constitution (1948–1950), there were significant debates on the inclusion of Panchayati Raj. Mahatma Gandhi was a strong advocate for 'Gram Swaraj' (village self-governance) and envisioned a decentralized political system where each village would manage its own affairs through a five-member panchayat. Despite these ideals, India initially adopted a more centralized government. However, Article 40, a Directive Principle of State Policy (DPSP), was included, stating that "The State shall take steps to organise village panchayats and endow them with such powers and authority as may be necessary to enable them to function as units of self-government." Being a DPSP, this provision was non-justiciable and its implementation varied across states.

2.5. Evolution through Committees

Several committees were appointed by the Government of India to review and recommend measures for strengthening rural self-government, leading to the eventual constitutional recognition of PRIs:

| Committee (Year) | Objective | Key Recommendations

This framework, adopted in 1959 with Rajasthan being the first state to implement it, was significantly modified and strengthened by the 73rd Constitutional Amendment Act of 1992.

3. Key Provisions & Articles: The 73rd Constitutional Amendment Act, 1992

The 73rd Amendment Act, which came into force on April 24, 1993, marked a watershed moment for democratic decentralization in India. It gave constitutional status to Panchayati Raj Institutions, making their establishment and functioning mandatory for all states.

3.1. Constitutional Addition

The Act added a new Part IX to the Constitution, titled "The Panchayats," covering Articles 243 to 243O. It also introduced the Eleventh Schedule, which lists 29 functional items falling within the purview of Panchayats.

3.2. Salient Features of the 73rd Amendment Act

• Gram Sabha (Article 243A): The Gram Sabha is the foundational unit of the Panchayati Raj system. It is a village assembly comprising all persons registered in the electoral rolls relating to a village within the Panchayat area. It is a permanent body and acts as the bedrock of direct democracy, exercising powers and performing functions as determined by the state legislature.

  Diagram: Structure of Gram Sabha

  +-----------------------+
  |       Village         |
  +-----------------------+
          |
          |
  +-----------------------+
  | All Registered Voters |
  |  (18+ years of age)   |
  +-----------------------+
          |
          |
  +-----------------------+
  |      Gram Sabha       |
  |  (Village Assembly)   |
  +-----------------------+
          |
          |
  +-----------------------+
  | Oversees and Approves |
  |  Gram Panchayat's     |
  |  Plans & Budget       |
  +-----------------------+
  

  Explanation: The Gram Sabha is the legislative body at the village level, ensuring direct citizen participation. It is responsible for overseeing the Gram Panchayat and holding it accountable.

• Three-Tier System (Article 243B): The Act provides for a uniform three-tier structure of Panchayati Raj in every state (except those with a population less than 20 lakhs, which may not have the intermediate level).

  • Village Level: Gram Panchayat (for a village or group of villages)
  • Intermediate Level: Panchayat Samiti (Block/Mandal Parishad)
  • District Level: Zila Parishad (District Council)

• Elections of Members and Chairpersons (Article 243C):

  • All members at all three levels are to be directly elected by the people from territorial constituencies in the Panchayat area.
  • The chairperson of Panchayats at the village level (Sarpanch/Pradhan) is elected directly by the Gram Sabha.
  • The chairpersons of Panchayats at the intermediate and district levels are to be indirectly elected from amongst the elected members.

• Reservation of Seats (Article 243D):

  • Scheduled Castes (SCs) and Scheduled Tribes (STs): Seats are reserved for SCs and STs at all three levels in proportion to their population in the Panchayat area.
  • Women: Not less than one-third (33%) of the total seats for members and chairpersons at all levels are reserved for women. Many states have increased this reservation to 50%.
  • Rotation: Reserved seats are allotted by rotation to different constituencies within a Panchayat.
  • Other Backward Classes (OBCs): State legislatures may also provide for reservation of seats and chairperson posts for OBCs.

• Duration of Panchayats (Article 243E): Panchayats have a fixed term of five years. Elections must be completed before the expiry of this term. If a Panchayat is dissolved prematurely, fresh elections must be held within six months.

• Disqualification (Article 243F): A person is disqualified from being a member if they are disqualified under any law for elections to the state legislature, or under any law made by the state legislature. The minimum age for contesting Panchayat elections is 21 years.

• Powers and Functions (Article 243G & Eleventh Schedule): State legislatures are empowered to endow Panchayats with such powers and authority as may be necessary to enable them to function as institutions of self-government. This includes powers to:

  • Prepare plans for economic development and social justice.
  • Implement schemes for economic development and social justice, including those related to the 29 matters listed in the Eleventh Schedule.
  • The 29 subjects cover a wide range of rural development aspects, such as agriculture, land improvement, minor irrigation, animal husbandry, fisheries, social forestry, minor forest produce, small scale industries, khadi, village and cottage industries, rural housing, drinking water, fuel and fodder, roads, culverts, bridges, ferries, waterways, rural electrification, non-conventional energy sources, poverty alleviation programs, 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 centers and dispensaries), family welfare, women and child development, social welfare (including welfare of the handicapped and mentally retarded), welfare of the weaker sections (particularly SCs and STs), public distribution system, and maintenance of community assets.

• Finances (Article 243H & 243I):

  • State legislatures may authorize Panchayats to levy, collect, and appropriate taxes, duties, tolls, and fees.
  • They can also assign to Panchayats taxes, duties, tolls, and fees levied and collected by the state government.
  • Provision for grants-in-aid to Panchayats from the Consolidated Fund of the State.
  • State Finance Commission (SFC): Every five years, the Governor of a state must constitute a State Finance Commission to review the financial position of Panchayats and recommend principles for adequate financial resources.

• Audit of Accounts (Article 243J): State legislatures can make provisions for the audit of accounts of Panchayats.

• State Election Commission (Article 243K): An independent State Election Commission (SEC) is to be constituted in each state to superintend, direct, and control the preparation of electoral rolls and the conduct of all elections to the Panchayats.

• Application to Union Territories (Article 243L): The President can direct that the provisions of Part IX apply to any Union Territory, with modifications if necessary.

• Exempted Areas (Article 243M): The Act does not apply to certain areas, including the states of Nagaland, Meghalaya, Mizoram, Scheduled Areas, Tribal Areas, and certain specific hill areas.

• Continuance of Existing Laws (Article 243N): All state laws relating to Panchayats were to continue for one year from the commencement of the Act, giving states time to adopt the new system.

• Bar to Interference by Courts in Electoral Matters (Article 243O): The validity of any law relating to the delimitation of constituencies or the allotment of seats cannot be questioned in any court.

4. Institutional Framework & Functions

The three-tier structure of Panchayati Raj is designed to ensure local self-governance from the village up to the district level.

4.1. Gram Panchayat (Village Level)

• Composition: Consists of elected members (Panchas/Ward Members) from various wards and a Sarpanch/Pradhan (head) elected directly by the Gram Sabha. There is also a government-appointed Secretary who keeps records and calls meetings.
• Functions: The Gram Panchayat is responsible for a wide range of functions aimed at improving the standard of living in rural areas. These include:
  • Preparation of annual development plans and budgets for the village.
  • Implementation of government schemes related to agriculture, rural housing, drinking water, roads, sanitation, health, and education.
  • Levying and collecting local taxes (e.g., property tax, professional tax).
  • Maintenance of public property like roads, bridges, wells, schools, and hospitals.
  • Identifying beneficiaries for various welfare programs.
  • Organizing social events and disaster management.

4.2. Panchayat Samiti (Intermediate/Block Level)

• Composition: Members are indirectly elected from the Gram Panchayats within the block. It is headed by a Chairperson and includes the Block Development Officer (BDO) as the executive head.
• Functions: The Panchayat Samiti acts as a link between the Gram Panchayats and the Zila Parishad. Its primary role is to coordinate development activities and implement schemes across the block. It reviews the budgets of Gram Panchayats and prepares block-level development plans.

4.3. Zila Parishad (District Level)

• Composition: The apex rural body at the district level, consisting of directly elected district members, members of state and national legislatures whose constituencies fall within the district, and a percentage of Gram Panchayat heads. It is headed by a President/Chairperson.
• Functions: The Zila Parishad prepares and approves district-level plans and budgets for rural sectors, implements central and state government schemes at the district level, ensures effective execution of major works across blocks, and monitors the performance of lower tiers. It plays a crucial role in overall district-level planning and coordination.

Organogram: Three-Tier Panchayati Raj System

+-----------------------------------+
|          Zila Parishad            |
|        (District Level)           |
|  (Apex Body, Elected Chairperson) |
+-----------------------------------+
             |
             |
             V
+-----------------------------------+
|         Panchayat Samiti          |
|        (Block/Intermediate Level) |
|   (Link Body, Indirectly Elected) |
+-----------------------------------+
             |
             |
             V
+-----------------------------------+
|          Gram Panchayat           |
|        (Village Level)            |
| (Basic Unit, Directly Elected Sarpanch & Members) |
+-----------------------------------+
             |
             |
             V
+-----------------------------------+
|          Gram Sabha               |
|  (All Registered Voters of Village)|
|  (Foundational Body of Direct Democracy) |
+-----------------------------------+

Explanation: This organogram illustrates the hierarchical structure of PRIs, emphasizing the foundational role of the Gram Sabha and the linkage between the three tiers.

5. Judicial Interpretations and Landmark Cases

While the 73rd Amendment Act provides a robust constitutional framework, judicial interpretations have played a crucial role in clarifying and strengthening the position of PRIs.

• Kishansing Tomar vs. State of Gujarat (2007): The Supreme Court held that the State Election Commission is an independent constitutional authority, and its directions for conducting elections to local bodies must be followed by the state government. This reinforced the autonomy of the SEC, crucial for fair and timely elections.

• Bhanumati vs. State of Uttar Pradesh (2010): The Supreme Court upheld the constitutional validity of provisions allowing indirect elections for the chairpersons of Panchayat Samitis and Zila Parishads, stating that the constitution provides flexibility to states.

• Union of India vs. Rakesh Kumar (2010): The Court emphasized that while states have the discretion to determine the powers and functions of Panchayats, they must ensure that PRIs function as institutions of self-government, implying a meaningful devolution of powers.

• P. Venkatramana vs. State of Andhra Pradesh (2011): The Supreme Court underscored the importance of timely elections to PRIs and stated that the State Election Commission has the power to fix the election schedule even without the explicit concurrence of the state government.

• State of Goa vs. A.N. Mahesh Kumar (2017): This case highlighted the importance of adequate financial devolution, observing that without sufficient funds, PRIs cannot effectively discharge their constitutional duties. The court emphasized the critical role of State Finance Commissions in ensuring financial viability.

6. Achievements, Challenges, and Current Relevance

The journey of PRIs post-73rd Amendment has been marked by significant achievements, yet persistent challenges hinder their full potential.

6.1. Achievements of Panchayati Raj Institutions

• Democratic Decentralization and Grassroots Democracy: PRIs have successfully decentralized power, bringing governance closer to the people and fostering democratic participation at the village level. They have created a third tier of government, fulfilling the vision of Article 40.
• Increased Political Participation: Panchayat elections are now keenly contested, leading to massive political participation, particularly from marginalized sections. There are approximately 2.5 lakh panchayats in India, represented by about 32 lakh elected individuals.
• Empowerment of Women: The reservation of one-third (and in many states, 50%) of seats for women has been a transformative impact, elevating over 1.4 million women to leadership positions. India is now a top-performing country globally in women's political empowerment at the local level.
  • Impact: Elected Women Representatives (EWRs) are less likely to be associated with corruption, demonstrate efficient leadership, and invest more in public goods valued by women (like water and roads). They actively participate in decision-making, raise voices against injustice, and contribute to reducing domestic violence and caste-based discrimination.
• Representation of SCs and STs: Proportional reservation has ensured the inclusion of Scheduled Castes and Scheduled Tribes in local governance, promoting social justice and inclusive development.
• Improved Service Delivery and Local Development: PRIs have contributed to local infrastructure development (roads, schools, health centers), poverty alleviation programs, and better management of local resources like water and land.
• Enhanced Transparency and Accountability: The Gram Sabha, by reviewing plans and budgets, ensures a degree of transparency and makes local officials more accountable to the community.
• Creation of Future Leaders: PRIs serve as a training ground for political leaders, especially women and youth, preparing them for higher levels of politics.

6.2. Challenges Faced by Panchayati Raj Institutions

Despite their constitutional backing, PRIs continue to grapple with several structural and functional challenges:

• Insufficient Devolution of Functions, Funds, and Functionaries (3Fs): This remains the most significant challenge.
  • Functions: States have not fully transferred all 29 subjects listed in the Eleventh Schedule to PRIs, limiting their scope of work and effectiveness. Parallel bodies and parastatals often encroach upon functions assigned to panchayats.
  • Funds: PRIs face severe financial constraints, relying heavily on grants from central (around 80%) and state (around 15%) governments, with only about 1% generated through their own tax revenue. This dependence compromises their financial autonomy. Inefficient collection mechanisms for local taxes further weaken their financial position.
  • Functionaries: Lack of adequate and trained supporting staff, capacity building, and leadership skills among elected representatives hinder effective functioning.
• Proxy Representation / "Sarpanch-Pati" Syndrome: Despite reservations, particularly for women, instances of male relatives (husbands or fathers-in-law) effectively wielding power on behalf of elected women representatives (EWRs) persist. This undermines the spirit of women's empowerment.
• Political Interference and Bureaucratic Resistance: Political interference from state-level politicians and bureaucratic resistance often undermine the independence and decision-making processes of PRIs. Bureaucratic channels can also lead to exploitation of funds.
• Lack of Infrastructure and Resources: Many PRIs lack basic infrastructure like office buildings, equipment, and human resources, hindering their effective operation.
• Weak Gram Sabha Functionality: The Gram Sabha, envisioned as the core of participatory democracy, often has low attendance and limited meaningful engagement, diminishing its role in accountability and planning.
• Multiplicity of Agencies and Lack of Coordination: The presence of multiple agencies involved in rural development programs leads to duplication of efforts and inefficient implementation, with poor coordination with other levels of government.
• Corruption: The influx of funds at the grassroots level, coupled with weak oversight mechanisms, can sometimes lead to corruption and misuse of resources.
• Digital Divide: Limited access to information and digital literacy can impede the adoption of e-governance initiatives and transparency.

6.3. Current Relevance and Evolving Interpretations

PRIs remain crucial for India's inclusive growth agenda. They are vital for the effective implementation of national flagship programs (e.g., MGNREGA, Swachh Bharat Abhiyan) and for achieving Sustainable Development Goals (SDGs) at the local level. Their role in disaster management, public health, and basic education has been increasingly recognized, especially during crises.

7. Comparative Analysis with Global Models

Comparing India's Panchayati Raj with local governance models globally highlights unique features and areas for learning.

• India vs. Switzerland (Local Governance in Diverse Countries):

  • India: Employs a reservation system (for SCs, STs, and women) and a three-tier Panchayati Raj structure to ensure broad participation of various ethnic and linguistic groups in the governance process. This is a top-down constitutional mandate for decentralization.
  • Switzerland: Relies on a unique model of cantonal federalism and direct democracy. Swiss cantons have significant autonomy, allowing them to effectively respond to local and ethnic needs without a central mandate for reservations based on ethnicity.
  • Key Difference: India's model explicitly mandates representation through reservations in a diverse society, while Switzerland achieves similar outcomes through deeply entrenched federalism and direct democratic traditions.

• India (Parliamentary System) vs. Other Decentralized Systems:

  • Many countries with parliamentary systems (e.g., UK, Canada) also have devolved local governments, but the constitutional embedding and mandatory nature of specific features like reservations, fixed terms, and independent election/finance commissions in India (post-73rd Amendment) are quite distinct. This gives PRIs a stronger constitutional footing than many comparable local bodies elsewhere.
  • The degree of financial and administrative autonomy can vary significantly. Some advanced democracies have highly autonomous local bodies with strong tax bases, which is an area where Indian PRIs still face challenges.

8. Conclusion & Path Forward

Panchayati Raj Institutions are indispensable for strengthening grassroots democracy and achieving inclusive, sustainable rural development in India. The 73rd Amendment Act was a landmark reform, but the full realization of its potential requires continuous effort and systemic improvements.

8.1. Key Takeaways

• PRIs are the constitutional third tier of government in rural India.
• The 73rd Amendment provided PRIs with constitutional status, a three-tier structure, regular elections, reservations for marginalized groups, and State Election and Finance Commissions.
• Achievements include enhanced political participation, significant women's empowerment, and improved local service delivery.
• Major challenges revolve around the inadequate devolution of 3Fs (Functions, Funds, Functionaries), political interference, and issues related to Gram Sabha functionality.

8.2. Path Forward for Local Governance in India

To overcome the existing challenges and enable PRIs to function as true institutions of self-government, a multi-pronged approach is necessary:

1. Strengthening the "3 Fs" (Functions, Funds, Functionaries):

   • Functional Devolution: States must genuinely devolve all 29 subjects listed in the Eleventh Schedule to PRIs, along with the necessary administrative control. Activity mapping to clearly delineate roles and responsibilities is essential.
   • Financial Autonomy: Empower PRIs to generate more "Own Source Revenue" (OSR) by revising property taxes, professional taxes, and other local levies, and improving collection mechanisms. The State Finance Commissions must be strengthened and their recommendations for resource transfer rigorously implemented. Untied grants should be increased to provide greater flexibility to local bodies.
   • Capacity Building: Regular and comprehensive training programs for elected representatives and officials on governance, financial management, planning, and use of technology are crucial. Addressing the lack of supporting staff is also vital.

2. Revitalizing Gram Sabhas: Enhance the authority and functionality of Gram Sabhas by ensuring regular meetings with high attendance and active participation. Promote social audits to increase transparency and accountability at the village level.

3. Curbing Political and Bureaucratic Interference: Foster an environment where PRIs can function independently without undue interference from state-level politicians or the bureaucracy. This requires strong political will and institutional reforms.

4. Promoting E-governance and Transparency: Leverage technology for better planning, monitoring, and service delivery (e.g., e-Panchayat, online grievance redressal). Improve data quality and accessibility to enhance transparency.

5. Strengthening District Planning Committees (DPCs): Ensure effective functioning of DPCs (mandated by the 74th Amendment for municipalities but crucial for consolidating plans from both PRIs and municipalities) to facilitate integrated district development planning.

6. Addressing "Sarpanch-Pati" Syndrome: Implement measures to empower elected women representatives, including targeted training, awareness campaigns, and strict action against those who undermine their authority.

7. Convergence of Schemes: Ensure better coordination and convergence of various government schemes at the local level to avoid duplication and maximize impact.

By focusing on these reforms, India can truly realize Mahatma Gandhi's vision of 'Gram Swaraj' and establish a robust, responsive, and accountable system of local self-governance.

9. Practice Questions & Answers

To reinforce learning and test comprehension, here are some practice questions.

9.1. Multiple-Choice Questions (MCQs)

Q1: Which Part of the Indian Constitution deals with Panchayats? A) Part VIII B) Part IX C) Part X D) Part XI

Correct Answer: B Explanation: Part IX of the Constitution, titled "The Panchayats," was inserted by the 73rd Constitutional Amendment Act, 1992.

Q2: The Eleventh Schedule of the Indian Constitution lists how many functional items for Panchayats? A) 18 B) 29 C) 21 D) 32

Correct Answer: B Explanation: The Eleventh Schedule, added by the 73rd Amendment, contains 29 subjects over which Panchayats have functional jurisdiction.

Q3: The minimum age prescribed for any person to be a member of a Panchayat is: A) 18 years B) 21 years C) 25 years D) 30 years

Correct Answer: B Explanation: Article 243F specifies that a person must be not less than 21 years of age to be qualified for election as a member of a Panchayat.

Q4: Which committee recommended the establishment of a two-tier Panchayati Raj system, eliminating the intermediate Panchayat Samiti? A) Balwant Rai Mehta Committee B) Ashok Mehta Committee C) G.V.K. Rao Committee D) L.M. Singhvi Committee

Correct Answer: B Explanation: The Ashok Mehta Committee (1977) recommended a two-tier system consisting of Zila Parishad at the district level and Mandal Panchayat (a group of villages) at the village level.

Q5: What percentage of seats are reserved for women in Panchayati Raj Institutions, as per the 73rd Amendment Act? A) Not less than 25% B) Not less than 33% C) Not less than 40% D) Not less than 50%

Correct Answer: B Explanation: The 73rd Amendment mandates reservation of not less than one-third (33%) of the total seats for women at all three levels of PRIs, including chairperson posts. Many states have increased this to 50%.

9.2. Scenario-Based Questions

Q1: A state government decides to defer Panchayat elections indefinitely, citing administrative difficulties. What constitutional provision would this action violate, and what recourse is available to ensure timely elections?

Answer Explanation: This action would directly violate Article 243E of the Indian Constitution, which mandates a fixed five-year term for Panchayats and stipulates that elections to constitute a new Panchayat must be completed before the expiry of its term. If a Panchayat is dissolved prematurely, elections must be held within six months.

The recourse available is primarily through the State Election Commission (SEC), constituted under Article 243K. The SEC is an independent constitutional authority with the power to superintend, direct, and control the preparation of electoral rolls and the conduct of all elections to the Panchayats. The Supreme Court, in cases like Kishansing Tomar vs. State of Gujarat (2007) and P. Venkatramana vs. State of Andhra Pradesh (2011), has reinforced the autonomy of the SEC, stating that its directions for conducting elections must be followed and it can fix the election schedule even without the explicit concurrence of the state government. Therefore, the SEC could move the High Court or the Supreme Court to ensure that elections are held as mandated by the Constitution.

Q2: A newly elected Gram Panchayat finds itself unable to undertake any significant development work due to a severe lack of funds, despite having a comprehensive plan for village development. What are the potential reasons for this financial crunch, and what constitutional mechanisms are in place to address it?

Answer Explanation: The financial crunch faced by the Gram Panchayat could stem from several reasons, primarily related to the "Funds" aspect of the 3Fs challenge:

1. Limited Own Source Revenue (OSR): Panchayats often generate very little revenue internally (around 1%) due to non-revision of local taxes, inefficient collection mechanisms, or lack of political will to levy taxes on property, professions, etc.
2. Inadequate Devolution of State Funds: State governments may not be transferring sufficient funds to Panchayats, or the shared revenue from state taxes might be meager.
3. Tied Nature of Grants: A significant portion of funds received from central and state governments might be "tied grants," meaning they are earmarked for specific schemes, reducing the Panchayat's flexibility to address local priorities identified in their own plans.
4. Delay in Fund Release: Funds may be released late or intermittently, disrupting planning and implementation cycles.
5. Weak Recommendations of State Finance Commissions (SFCs): While SFCs are mandated, their recommendations might not be robust enough, or the state government might not fully implement them.

The constitutional mechanisms in place to address the financial position of Panchayats are primarily under Article 243I and Article 243H:

• State Finance Commission (Article 243I): The Governor of a state is mandated to constitute a State Finance Commission every five years. This commission reviews the financial position of Panchayats and makes recommendations regarding:
  • The distribution between the state and Panchayats of the net proceeds of taxes, duties, tolls, and fees leviable by the state.
  • The determination of the taxes, duties, tolls, and fees that may be assigned to, or appropriated by, the Panchayats.
  • The grants-in-aid to Panchayats from the Consolidated Fund of the State.
• Powers to Impose Taxes and Funds (Article 243H): This article empowers the state legislature to:
  • Authorize Panchayats to levy, collect, and appropriate taxes, duties, tolls, and fees.
  • Provide for making grants-in-aid to the Panchayats from the Consolidated Fund of the State.
  • Constitute Funds for crediting all moneys of the Panchayats.

For the Gram Panchayat, the path forward involves actively engaging with the State Finance Commission, lobbying the state government for greater devolution and untied grants, exploring and optimizing its own tax and non-tax revenue sources, and ensuring transparent and efficient utilization of existing funds to build public trust and advocate for more resources.

9.3. Match-the-following / Chronology exercises

Q1: Match the following committees with their key recommendations regarding the Panchayati Raj system:

Options: A) 1-b, 2-c, 3-a, 4-d B) 1-a, 2-b, 3-c, 4-d C) 1-b, 2-a, 3-d, 4-c D) 1-c, 2-b, 3-a, 4-d

Correct Answer: A Explanation:

• Balwant Rai Mehta Committee (1957): Recommended a three-tier Panchayati Raj system with democratic decentralization.
• Ashok Mehta Committee (1977): Advocated for a two-tier system (Zila Parishad and Mandal Panchayat).
• L.M. Singhvi Committee (1986): Emphasized the need for constitutional recognition of Panchayati Raj institutions.
• G.V.K. Rao Committee (1985): Recommended making the "district" the basic unit of planning and holding regular elections.

Q2: Arrange the following events in chronological order:

1. 73rd Constitutional Amendment Act comes into force.
2. Lord Ripon's Resolution on Local Self-Government.
3. Balwant Rai Mehta Committee submits its report.
4. Panchayati Raj system inaugurated in Nagaur, Rajasthan.

Options: A) 2, 3, 4, 1 B) 3, 2, 4, 1 C) 2, 4, 3, 1 D) 4, 3, 2, 1

Correct Answer: A Explanation:

1. Lord Ripon's Resolution on Local Self-Government: 1882.
2. Balwant Rai Mehta Committee submits its report: 1957.
3. Panchayati Raj system inaugurated in Nagaur, Rajasthan: October 2, 1959.
4. 73rd Constitutional Amendment Act comes into force: April 24, 1993.

9.4. Diagram-based/Case-based reasoning

Scenario: A Gram Panchayat in a Scheduled Area is facing difficulties in implementing local development programs and resolving land-related disputes due to cultural specificities and traditional governance structures not fully aligned with the general PRI framework.

Question: What specific constitutional provision or act aims to address the unique governance needs of Panchayats in Scheduled Areas, and what are its key objectives?

Answer Explanation: The specific act that aims to address the unique governance needs of Panchayats in Scheduled Areas is The Provisions of the Panchayats (Extension to the Scheduled Areas) Act, 1996, commonly known as PESA Act 1996.

Key Objectives of PESA Act 1996:

• To extend the provisions of Part IX of the Constitution relating to Panchayats to the Scheduled Areas, with certain modifications and exceptions.
• To ensure the self-rule of the tribal population through Gram Sabhas (village assemblies).
• To recognize the traditional rights of tribal communities over natural resources.
• To empower Gram Sabhas to play a significant role in approving development plans, managing minor water bodies, approving projects, controlling social institutions, local plans, and resources for tribal welfare and development.
• Specifically, the Gram Sabha or Panchayats at the appropriate level are endowed with the power to:
  • Safeguard and preserve the traditions and customs of the people, their cultural identity, community resources, and the customary mode of dispute resolution.
  • Approve plans, programs, and projects for social and economic development before they are implemented by Panchayats at the village level.
  • Identify beneficiaries under poverty alleviation and other programs.
  • Control over institutions and functionaries in all social sectors.
  • Control over minor forest produce, minor minerals, and water bodies.
  • Control over money lending to Scheduled Tribes.
  • Power to enforce prohibition or regulate consumption of intoxicants.

The PESA Act thus aims to devolve greater power to the Gram Sabhas in Scheduled Areas, respecting their traditional practices and customs, and providing a framework for participatory governance that is more sensitive to tribal cultural identities and resource management.

Recommended Books

You can explore these highly recommended resources for a deeper understanding.

• Indian Polity (English) by M Laxmikanth for UPSC CSE 2025 | 7th edition (latest) | Civil Services Exam - Prelims, Mains and Interview | State PSCs exams/ PCS exams - by M Laxmikanth
• Oswaal NCERT One For All Book for UPSC & State PSCs | Indian Polity Classes 6-12 - by Oswaal Editorial Board
• Bharat Ki Rajvyavastha (भारत की राजव्यवस्था) - M Laxmikanth for UPSC CSE