Panchayati Raj

Panchayati Raj refers to the system of rural local self-government in India. Established through Acts of state legislatures in every state, it was designed to push democratic participation down to the grassroots level and entrust local bodies with the responsibility for rural development. The system was constitutionalised by the 73rd Constitutional Amendment Act, 1992, which came into force on 24 April 1993.

The subject of Local Government falls under the State List (Seventh Schedule), meaning states have the primary legislative authority over it.

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1. Balwant Rai Mehta Committee (1957)

Appointed in January 1957 to review the Community Development Programme (1952) and National Extension Service (1953), the committee submitted its report in November 1957 and recommended the concept of 'democratic decentralisation' - which came to be known as Panchayati Raj.

Key recommendations:

• A three-tier structure: Gram Panchayat (village level), Panchayat Samiti (block level), Zila Parishad (district level), organically linked through indirect elections.
• Village panchayat members to be directly elected; panchayat samiti and zila parishad members to be indirectly elected.
• Panchayat Samiti to be the executive body; Zila Parishad to serve as advisory, coordinating and supervisory.
• District Collector to be the chairman of the Zila Parishad.
• Genuine transfer of power, resources and authority to these bodies.
• A mechanism for further devolution of authority in the future.

These recommendations were accepted by the National Development Council in January 1958. States were free to design patterns suited to local conditions, but broad fundamentals were to be uniform.

Rajasthan was the first state to launch Panchayati Raj - inaugurated by PM Nehru on 2 October 1959 in Nagaur district. Andhra Pradesh followed in the same year.

Exam Trap: Rajasthan adopted a three-tier system; Tamil Nadu adopted a two-tier system; West Bengal adopted a four-tier system. In the Rajasthan-Andhra Pradesh model, the Panchayat Samiti was powerful (block as unit); in Maharashtra-Gujarat, the Zila Parishad was more powerful (district as unit).

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2. Ashok Mehta Committee (1977-78)

Appointed by the Janata Government in December 1977, submitted report in August 1978 with 132 recommendations to revive the declining panchayati raj.

Key recommendations:

• Replace the three-tier system with a two-tier system: Zila Parishad (district) and Mandal Panchayat (group of villages, population 15,000-20,000).
• District to be the first point of decentralisation below the state level.
• Zila Parishad to be the executive body for district-level planning.
• Compulsory powers of taxation for panchayati raj institutions.
• Official participation of political parties at all levels of panchayat elections.
• Social audit by a district-level agency and committee of legislators.
• State government should not supersede PRIs; if unavoidable, elections within six months.
• Constitutional recognition for PRIs.
• SC/ST seat reservation based on population.
• Nyaya Panchayats to be separate from development panchayats, presided over by a qualified judge.
• A Minister for Panchayati Raj to be appointed in each state.

Note: The Janata Government collapsed before acting on these recommendations at the central level. However, Karnataka, West Bengal and Andhra Pradesh took steps to revitalise their systems based on some of these recommendations.

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3. G.V.K. Rao Committee (1985)

Appointed by the Planning Commission in 1985 to review administrative arrangements for rural development and poverty alleviation.

Core finding: The development process had become excessively bureaucratised and disconnected from Panchayati Raj - described as 'grass without roots'.

Key recommendations:

• Zila Parishad should be the pivotal body for planning and development at the district level.
• A District Development Commissioner should be created as the chief executive of the Zila Parishad.
• Some planning functions from the state level should be transferred to district-level planning units.
• Regular elections to PRIs must be enforced.

Distinction: Unlike the Hanumantha Rao Committee (1984) and Dantwala Committee (1978) - which both emphasised the District Collector's role in decentralised planning - the GVK Rao Committee (along with Balwant Rai Mehta, Ashok Mehta, and Administrative Reforms Commission) favoured reducing the Collector's developmental role and giving a major role to PRIs.

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4. L.M. Singhvi Committee (1986)

Appointed by the Rajiv Gandhi government to prepare a concept paper on 'Revitalisation of Panchayati Raj Institutions for Democracy and Development'.

Key recommendations:

• A new chapter in the Constitution to give PRIs constitutional recognition and protect their identity.
• Nyaya Panchayats for clusters of villages.
• Gram Sabha described as the embodiment of direct democracy.
• Reorganisation of villages to make Gram Panchayats more viable.
• More financial resources for Village Panchayats.
• Judicial tribunals in each state for disputes related to PRI elections and dissolution.

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5. Thungon Committee (1988)

A sub-committee of the Consultative Committee of Parliament under P.K. Thungon, set up to examine political and administrative structures at the district level.

Key recommendations:

• Constitutional recognition for PRIs.
• Three-tier system with panchayats at village, block and district levels.
• Zila Parishad as the pivot of the panchayati raj system.
• Fixed five-year tenure for panchayati raj bodies; maximum supersession period of six months.
• State Finance Commission in each state.
• District Collector as the chief executive officer of Zila Parishad.
• A detailed list of subjects for PRIs to be incorporated in the Constitution.
• Reservation for women along with SC/ST based on population.

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6. Gadgil Committee (1988)

Constituted by the Congress party to consider how to make PRIs effective.

Key recommendations:

• Constitutional status for PRIs.
• Three-tier structure with directly elected members at all levels.
• Five-year fixed term.
• Reservation for SCs, STs and women.
• PRIs to be responsible for preparation and implementation of socio-economic development plans.
• State Finance Commission and State Election Commission to be established.

The Gadgil Committee's recommendations became the direct basis for drafting the constitutional amendment bill that eventually became the 73rd Amendment.

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The Act was passed by Lok Sabha on 22 December 1992, by Rajya Sabha on 23 December 1992, received Presidential assent on 20 April 1993, and came into force on 24 April 1993.

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Constitutional Additions

• Added Part IX to the Constitution, titled 'The Panchayats', comprising Articles 243 to 243-O.
• Added the Eleventh Schedule with 29 functional items of panchayats (related to Article 243-G).
• Gave practical effect to Article 40 (Directive Principles), which directs the State to organise village panchayats as units of self-government.
• Brought PRIs under the justiciable part of the Constitution - states are now constitutionally obligated to constitute panchayats and hold regular elections.

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Salient Features

Gram Sabha

The Act establishes the Gram Sabha as the foundation of the panchayati raj system - a body of all persons registered as voters in a village-level panchayat area. Its powers and functions are determined by the state legislature.

Three-Tier Structure

Every state must have panchayats at the village, intermediate and district levels. Exception: states with a population not exceeding 20 lakh may skip the intermediate level.

Election of Members and Chairpersons

• All members at all three levels: directly elected by the people.
• Chairpersons at intermediate and district levels: indirectly elected (by and from among elected members).
• Chairperson at the village level: elected in the manner determined by the state legislature.

Reservation of Seats

• SC/ST reservation: Proportionate to their share of the panchayat area's total population; applies to both members and offices of chairpersons.
• Women: Not less than one-third of total seats (including seats reserved for SC/ST women) and not less than one-third of all chairperson offices at each level - compulsory.
• Backward classes: State legislature may provide reservation - discretionary (voluntary provision).

Duration of Panchayats

• Five-year term at every level.
• If dissolved before term, fresh elections must be completed within six months of dissolution.
• If the remaining term at the time of dissolution is less than six months, no fresh election is required.
• A panchayat reconstituted after premature dissolution serves only for the remainder of the original term, not a fresh five years.

Disqualifications

• A person is disqualified under laws applicable to state legislature elections, or under any law made by the state legislature.
• Minimum age for contesting: 21 years (not 25, unlike Parliament/state legislature elections).
• Questions of disqualification are referred to an authority determined by the state legislature.

State Election Commission

• Superintendence, direction and control of electoral rolls and panchayat elections vested in the State Election Commission.
• Headed by a State Election Commissioner appointed by the Governor.
• Can be removed only in the manner and on grounds prescribed for removal of a High Court judge (i.e., by the President on Parliament's recommendation - the Governor cannot remove them despite appointing them).
• Service conditions cannot be varied to the Commissioner's disadvantage after appointment.

Powers and Functions

• State legislature may endow panchayats with powers to function as institutions of self-government.
• This includes devolution of powers for (a) preparation of plans for economic development and social justice, and (b) implementation of schemes including the 29 matters in the Eleventh Schedule.

Finances

The state legislature may:

• Authorise panchayats to levy, collect and appropriate taxes, duties, tolls and fees.
• Assign state-collected taxes to panchayats.
• Provide grants-in-aid from the Consolidated Fund of the State.
• Provide for constitution of panchayat funds.

State Finance Commission

• Constituted by the Governor every five years to review the financial position of panchayats.
• Recommends: distribution of net proceeds of state taxes between state and panchayats; grants-in-aid; measures to improve financial position of PRIs.
• Governor places recommendations with an action taken report before the state legislature.
• The Central Finance Commission also suggests measures to augment the state's Consolidated Fund to supplement PRI resources.

Exempted States and Areas

The Act does not apply to:

• Jammu & Kashmir, Nagaland, Meghalaya and Mizoram.
• Scheduled areas and tribal areas (Fifth Schedule areas).
• Hill areas of Manipur (where district councils exist).
• Darjeeling district of West Bengal (Darjeeling Gorkha Hill Council).

However, Parliament may extend provisions to scheduled and tribal areas with modifications.

Bar on Court Interference

Validity of laws on delimitation of constituencies or seat allotment cannot be challenged in courts. Panchayat election disputes can only be raised through an election petition before the authority specified by the state legislature.

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Eleventh Schedule: 29 Functional Items

The Eleventh Schedule lists the subjects over which panchayats may be given responsibility:

1. Agriculture (including extension) | 2. Land improvement, land reforms, soil conservation | 3. Minor irrigation, water management, watershed development | 4. Animal husbandry, dairying, poultry | 5. Fisheries | 6. Social and farm forestry | 7. Minor forest produce | 8. Small-scale industries including food processing | 9. Khadi, village and cottage industries | 10. Rural housing | 11. Drinking water | 12. Fuel and fodder | 13. Roads, culverts, bridges, waterways | 14. Rural electrification | 15. Non-conventional energy | 16. Poverty alleviation | 17. Education (primary and secondary) | 18. Technical and vocational training | 19. Adult and non-formal education | 20. Libraries | 21. Cultural activities | 22. Markets and fairs | 23. Health and sanitation | 24. Family welfare | 25. Women and child development | 26. Social welfare (including disabled and mentally retarded) | 27. Welfare of weaker sections (SC/ST) | 28. Public distribution system | 29. Maintenance of community assets.

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Compulsory vs Voluntary Provisions

Compulsory (Mandatory) Provisions — States must include these:

1. Organisation of Gram Sabha.
2. Establishment of three-tier panchayat structure.
3. Direct elections to all seats at all three levels.
4. Indirect elections for chairpersons at intermediate and district levels.
5. Minimum age of 21 years for contesting panchayat elections.
6. Reservation of seats and chairperson offices for SC/ST at all three levels.
7. Reservation of one-third seats and chairperson offices for women at all three levels.
8. Five-year tenure; fresh elections within six months of dissolution.
9. Establishment of a State Election Commission.
10. Constitution of a State Finance Commission every five years.

Voluntary (Discretionary) Provisions — States may or may not include:

1. Representation of MPs and MLAs in panchayats.
2. Reservation of seats for backward classes.
3. Granting autonomous self-governance powers to panchayats.
4. Devolution of some or all 29 Eleventh Schedule functions.
5. Granting financial powers (taxing authority) to panchayats.

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Part IX of the Constitution does not automatically apply to Fifth Schedule (tribal) areas. Parliament enacted the Provisions of the Panchayats (Extension to the Scheduled Areas) Act, 1996 (PESA) to extend the 73rd Amendment to these areas with modifications. The Act received Presidential assent on 24 December 1996.

At present, ten states have Fifth Schedule Areas: Andhra Pradesh, Telangana, Chhattisgarh, Gujarat, Himachal Pradesh, Jharkhand, Madhya Pradesh, Maharashtra, Odisha and Rajasthan.

Objectives of PESA

• Extend panchayat provisions to scheduled areas with appropriate modifications.
• Enable self-rule for tribal populations through participatory village governance.
• Make the Gram Sabha the nucleus of all activities.
• Preserve tribal traditions, customs and community identity.
• Prevent higher-level panchayats from overriding lower-level bodies or Gram Sabhas.

Key Features of PESA

• State panchayat legislation for scheduled areas must be consistent with customary law, religious practices and traditional community resource management.
• Every village shall have a Gram Sabha comprising all voters in that village-level panchayat area.
• Gram Sabha must approve development plans before implementation and identify beneficiaries under poverty alleviation programmes.
• Village-level panchayats must obtain Gram Sabha certification for fund utilisation.
• ST reservation shall be not less than one-half of total panchayat seats in scheduled areas; all chairperson seats at all levels reserved for Scheduled Tribes.
• Nominaton of unrepresented STs at intermediate or district panchayat levels is permitted but shall not exceed one-tenth of total elected members.
• Gram Sabha or panchayat consultation mandatory before land acquisition or rehabilitation in scheduled areas.
• Minor water bodies in scheduled areas entrusted to panchayats.
• Gram Sabha/panchayat recommendation mandatory for: (a) prospecting licence or mining lease for minor minerals; (b) concessions for minor mineral exploitation by auction.
• Panchayats and Gram Sabhas in scheduled areas shall specifically be empowered with:
  • Power to enforce prohibition or regulate intoxicants.
  • Ownership of minor forest produce.
  • Prevention of land alienation and restoration of unlawfully alienated ST land.
  • Power to manage village markets.
  • Control over money-lending to STs.

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Sources of Revenue

Panchayats receive funds through five channels:

1. Central Finance Commission grants (Article 280).
2. State Finance Commission devolution (Article 243-I).
3. Loans/grants from the state government.
4. Centrally Sponsored Schemes and Additional Central Assistance.
5. Internal Resource Generation - tax and non-tax revenue.

Financial Challenges

• Own resource generation is weak - limited tax domain and reluctance to collect taxes.
• Heavy dependence on Union and State government grants.
• Most grants are scheme-specific - panchayats have limited discretion over expenditure.
• State governments, facing fiscal constraints, are reluctant to devolve funds.
• In critical Eleventh Schedule areas (primary education, healthcare, water supply, etc.), state governments directly implement programmes, not panchayats.
• Gram Panchayats are comparatively better placed for own revenue (they have a direct tax domain); intermediate and district panchayats depend mainly on tolls, fees and non-tax revenue.
• Village Panchayat taxes include: property/house tax, profession tax, land tax, vehicle tolls, entertainment tax, water tax, education cess, sanitation tax, etc.

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1. Inadequate devolution of 3Fs (Functions, Funds, Functionaries): Many states have not transferred these meaningfully to PRIs.
2. Excessive bureaucratic control: Sarpanches are often forced to seek approvals and funds from Block offices, distorting their role as elected representatives.
3. Tied/scheme-specific funds: Panchayats cannot redirect funds to local priorities; unsuitable activities get promoted.
4. Overwhelming dependence on government funding: Reduces accountability to citizens and discourages social audits.
5. Reluctance to use fiscal powers: Elected Panchayat heads find it politically difficult to levy taxes on their own communities.
6. Weak Gram Sabha status: Many state Acts have not defined Gram Sabha powers or procedures clearly, reducing accountability.
7. Parallel Bodies: Missions and parallel agencies usurp PRI functions, create duality and demoralise PRIs through superior resource endowments.
8. Poor infrastructure: Many Gram Panchayats lack full-time secretaries, office buildings, and computing facilities. Around 25% of Gram Panchayats have no basic office building.

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• Rajasthan was the first state to establish Panchayati Raj (2 October 1959, Nagaur).
• The 73rd Amendment added Part IX (Articles 243-243O) and the Eleventh Schedule (29 items).
• Compulsory vs. voluntary provisions is a high-frequency distinction.
• The State Election Commissioner is appointed by the Governor but can be removed only like a High Court judge - the Governor cannot remove them directly.
• PESA Act: ST reservation is at least one-half of seats; all chairperson offices reserved for STs in scheduled areas.
• The Gram Sabha is compulsory under the 73rd Amendment; its empowerment under PESA is especially important for tribal areas.
• Minimum age to contest panchayat elections: 21 years (not 25).
• A prematurely dissolved panchayat's successor serves only the remainder of the original term.
• Backward class reservation is a voluntary provision - states may or may not provide it.
• The GVK Rao Committee coined the phrase 'grass without roots' for bureaucratised PRIs.