Introduction to the 73rd CAA
The 73rd Constitutional Amendment Act of 1992 (73rd CAA) is a landmark legislation in India's democratic history. It granted constitutional status to Panchayati Raj Institutions (PRIs), moving them from the realm of Directive Principles to a mandatory constitutional obligation. This act aimed to strengthen democracy at the grassroots level by ensuring uniformity, regularity, and greater autonomy for local self-government bodies in rural areas. It mandated the establishment of a three-tier Panchayati Raj system, specified their composition, duration, reservations, powers, and finances, thereby institutionalizing democratic decentralization.
Commencement: The Act came into force on April 24, 1993, which is now celebrated annually as National Panchayati Raj Day.
Significance of the 73rd Amendment Act
The 73rd Amendment Act, 1992, represents a paradigm shift in Indian governance, institutionalizing democracy at the local level.
Constitutional Status
Granted constitutional recognition and protection to Panchayati Raj Institutions, making their establishment and functioning mandatory for all states.
Mandatory Self-Government
Article 243G mandates Panchayats to function as "institutions of self-government," implying a transfer of powers and responsibilities for economic development and social justice.
Added Part IX & Eleventh Schedule
Inserted a new Part IX, "The Panchayats," and introduced the Eleventh Schedule listing 29 functional items within their purview.
Salient Features of the 73rd Amendment Act
The Act contains both compulsory (obligatory) and voluntary (discretionary) provisions. The compulsory provisions are binding on all states, while voluntary provisions provide flexibility to state legislatures. Here's a breakdown of its key features:
Gram Sabha (Art. 243A)
The foundation of the Panchayati Raj system, representing direct democracy at the village level. Consists of all registered voters in a village.
Three-Tier System (Art. 243B)
Mandates Panchayats at Village, Intermediate, and District levels. Exemption for intermediate level if population is below 20 lakhs.
Composition (Art. 243C)
All seats filled by direct election. Chairpersons of intermediate and district levels elected indirectly by elected members.
Reservation of Seats (Art. 243D)
Mandatory reservations for SCs, STs (proportionate to population), and women (not less than 1/3rd) at all levels and for chairpersons. Discretionary for Backward Classes.
Duration (Art. 243E)
Fixed tenure of five years. Elections must be completed before expiry or within six months of dissolution.
Disqualifications (Art. 243F)
Disqualification rules similar to State Legislature elections. Minimum age for contesting is 21 years.
Powers & Responsibilities (Art. 243G)
Panchayats empowered to prepare plans for economic development and social justice, including 29 items in the Eleventh Schedule.
Finances (Art. 243H)
State Legislatures may authorize Panchayats to levy taxes, assign state taxes, and provide grants-in-aid.
State Finance Commission (Art. 243-I)
Governor constitutes a SFC every five years to review financial position and recommend resource distribution.
Audit of Accounts (Art. 243J)
State Legislature may make provisions for maintenance and auditing of Panchayat accounts.
State Election Commission (Art. 243K)
Constituted for superintendence, direction, and control of electoral rolls and conduct of Panchayat elections.
Exempted Areas (Art. 243M)
Provisions do not apply to Scheduled Areas, Tribal Areas, Nagaland, Meghalaya, Mizoram, etc., leading to PESA Act, 1996.
The Eleventh Schedule: 29 Functional Items
The Eleventh Schedule lists 29 functional items over which Panchayats have jurisdiction. The list is indicative, and states are expected to devolve powers and responsibilities related to these subjects to PRIs.
- Agriculture, including agricultural extension.
- Land improvement, land reforms, land consolidation and soil conservation.
- Minor irrigation, water management and watershed development.
- Animal husbandry, dairying and poultry.
- Fisheries.
- Social forestry and farm forestry.
- Minor forest produce.
- Small scale industries, including food processing industries.
- Khadi, village and cottage industries.
- Rural housing.
- Drinking water.
- Fuel and fodder.
- Roads, culverts, bridges, ferries, waterways and other means of communication.
- Rural electrification, including distribution of electricity.
- Non-conventional energy sources.
- Poverty alleviation programme.
- 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 centres and dispensaries.
- Family welfare.
- Women and child development.
- Social welfare, including welfare of the handicapped and mentally retarded.
- Welfare of the weaker sections, and in particular, of the Scheduled Castes and the Scheduled Tribes.
- Public distribution system.
- Maintenance of community assets.
Compulsory vs. Voluntary Provisions
The 73rd Amendment includes certain provisions that are mandatory for all states to incorporate, while others are discretionary, allowing states flexibility based on their unique circumstances.
| Compulsory Provisions (Obligatory) | Voluntary Provisions (Discretionary for State Legislatures) |
|---|---|
| Gram Sabha establishment. | Giving representation to MPs/MLAs in Panchayats. |
| Three-tier system (Village, Intermediate, District) with population exemption for Intermediate. | Endowing Panchayats with powers and authority for economic development and social justice. |
| Direct election to all seats in Panchayats. | Granting financial powers to Panchayats (levy taxes, duties, tolls, fees). |
| Reservation of seats for SCs/STs (proportionate to population) at all levels. | Assigning specific taxes, duties, tolls, fees to Panchayats. |
| Reservation of 1/3rd seats for women at all levels (members and chairpersons). | Making provisions for grants-in-aid to Panchayats. |
| Fixed tenure of 5 years for Panchayats. | Providing for reservation of seats and offices of chairpersons for Backward Classes. |
| Mandatory re-election within 6 months of dissolution. | Entrusting Panchayats with powers and responsibilities concerning the 29 items in the Eleventh Schedule. |
| Constitution of a State Election Commission. | |
| Constitution of a State Finance Commission every 5 years. |
PESA Act, 1996: Tribal Self-Governance
The 73rd Amendment Act did not automatically apply to Scheduled Areas and Tribal Areas due to their unique socio-cultural context and traditional governance systems. The Parliament enacted the Provisions of the Panchayats (Extension to Scheduled Areas) Act, 1996 (PESA Act) to extend Part IX with certain modifications, empowering tribal self-rule.
Applicable in 10 states with Fifth Schedule Areas: Andhra Pradesh, Telangana, Bihar, Gujarat, Himachal Pradesh, Jharkhand, Madhya Pradesh, Maharashtra, Odisha, Rajasthan.
Key Features (Spirit of Self-Governance)
The Gram Sabha is the central and most powerful institution under PESA, empowered to safeguard and preserve the traditions, customs, cultural identity, community resources, and the customary mode of dispute resolution of tribal communities.
Prior consultation with the Gram Sabha is mandatory for land acquisition for development projects, resettlement or rehabilitation of displaced persons, and granting of prospecting licenses or mining leases for minor minerals.
The Gram Sabha or the Panchayats at the appropriate level are endowed with the ownership of minor forest produce (MFP).
Gram Sabha has the power to prevent alienation of land and restore unlawfully alienated land. It also controls money lending to Scheduled Tribes.
Panchayats/Gram Sabhas have control over institutions and functionaries in all social sectors, and over local plans, resources, expenditures for tribal sub-plans, and village markets.
Challenges in PESA Implementation
Partial Implementation
Many states have not fully enacted or appropriately amended their Panchayat laws to align with the spirit and letter of PESA, indicating a lack of political will.
Gram Sabha Weakness
Despite constitutional backing, Gram Sabhas often remain weak due to lack of awareness, capacity, bureaucratic hurdles, and political interference.
Resource Centralization
Powers related to mining, forest, and water resources often remain with state departments, undermining Gram Sabha's control as intended by PESA.
Financial Constraints
Lack of dedicated funds and financial autonomy for PESA-mandated activities severely limits the operational capacity of tribal Panchayats.
Issues and Challenges in Functioning of PRIs
Despite the 73rd Amendment, PRIs continue to face significant hurdles that impede their optimal functioning as institutions of self-government. This is often summarized by the "3 Fs" – Funds, Functions, and Functionaries.
Funds: Financial Dependency
Limited own revenue generation, heavy reliance on state/central grants, delayed fund transfers, and inadequate State Finance Commission implementation.
Functions: Incomplete Devolution
State governments' reluctance to devolve real powers, incomplete activity mapping, and creation of parallel bodies bypassing PRIs.
Functionaries: Capacity & Staffing
Inadequate capacity building, lack of proper training for elected representatives, insufficient and poorly trained staff, and poor infrastructure.
Elite Capture & Proxy Representation
Traditional power structures and local elites sometimes dominate, leading to proxy representation (e.g., 'Sarpanch Pati') undermining reservations.
Weak Gram Sabha & Participation
Irregular meetings, low participation, especially from women and marginalized groups, hindering transparency and accountability.
Parallel Bodies & Political Interference
Creation of parallel agencies for schemes bypasses PRIs. MPs/MLAs sometimes interfere, viewing PRIs as competitors.
Measures to Strengthen PRIs
Various measures have been proposed and implemented to address the challenges faced by PRIs and empower them as effective institutions of self-government.
Effective Devolution of 3 Fs
Enhance own-source revenue, timely devolution of funds, clear 'activity mapping' for functions, and creation of dedicated Panchayat cadre for functionaries.
Capacity Building & Training
Initiatives like Rashtriya Gram Swaraj Abhiyan (RGSA) to train elected representatives and functionaries, focusing on L-SDGs, planning, and budgeting.
Technology for Transparency
Utilizing e-Panchayat, eGramSwaraj, AuditOnline, and Gram Manchitra for improved planning, accounting, auditing, and digital governance.
Social Audit Mechanisms
Making social audits mandatory, especially for schemes like MGNREGA, to enhance transparency and accountability through community verification.
Strengthening Gram Sabhas
Ensuring regular, well-attended, and inclusive Gram Sabha meetings to empower them for effective oversight and participatory decision-making.
Convergence of Schemes
Channeling funds and implementation responsibilities of rural development schemes directly through Panchayats to improve efficiency and reduce fragmentation.
Prelims-ready Notes
Key Facts & Dates:
- 73rd CAA: Came into force April 24, 1993 (National Panchayati Raj Day).
- Part IX: Added to Constitution, Articles 243 to 243-O.
- Eleventh Schedule: Added, lists 29 functional items.
- PESA Act, 1996: Extended Part IX to V Schedule areas.
Core Provisions Snapshot:
- Gram Sabha (Art. 243A): All registered voters; foundation of PR.
- Three-Tier System (Art. 243B): Village, Intermediate, District. Not mandatory for intermediate if population < 20 lakhs.
- Reservation (Art. 243D): SCs/STs (proportionate), Women (1/3rd). BCs (discretionary).
- Duration (Art. 243E): 5 years. Elections within 6 months of dissolution.
- Min. Age (Art. 243F): 21 years.
- State Finance Commission (Art. 243-I): Governor constitutes every 5 years.
- State Election Commission (Art. 243K): Conducts Panchayat elections. SEC removed like HC Judge.
- Bar to Courts (Art. 243-O): Electoral matters generally not challenged in court.
Table: Key Constitutional Articles and their Provisions
| Article | Provision |
|---|---|
| 243 | Definition of terms |
| 243A | Gram Sabha |
| 243B | Constitution of Panchayats (3-tier system) |
| 243C | Composition of Panchayats |
| 243D | Reservation of seats (SC, ST, Women, BCs) |
| 243E | Duration of Panchayats, etc. |
| 243F | Disqualifications for membership |
| 243G | Powers, authority and responsibilities of Panchayats (Eleventh Schedule) |
| 243H | Powers to impose taxes by, and Funds of, the Panchayats |
| 243I | Constitution of Finance Commission to review financial position |
| 243J | Audit of accounts of Panchayats |
| 243K | Elections to the Panchayats (State Election Commission) |
| 243L | Application to Union Territories |
| 243M | Part not to apply to certain areas (Exempted Areas - leads to PESA) |
| 243N | Continuance of existing laws and Panchayats |
| 243O | Bar to interference by courts in electoral matters |
Mains-ready Analytical Notes
Major Debates/Discussions
- Devolution vs. Delegation: Is it genuine transfer of power or just tasks? Critics argue it's often delegation.
- Centralization vs. Decentralization: State governments sometimes act as bottlenecks, limiting PRI autonomy despite constitutional status.
- Effectiveness of Gram Sabha: Often ineffective due to low attendance, elite capture, and lack of awareness.
- Financial Autonomy vs. State Dependence: Inability to generate significant own-source revenue and reliance on tied state grants limits autonomy.
Historical Trends & Changes
- Pre-1992: PRIs weak, ad-hoc, subject to political whims (irregular elections, limited powers).
- Post-1992 (73rd CAA): Major change with constitutional backing, ensuring regularity, uniformity, and mandatory reservations. Shift from administrative units to potential self-governing institutions.
- Evolution of Role: Theoretically empowered for planning and executing economic development and social justice, moving beyond mere implementation.
Contemporary Relevance & Impact
- Deepening Democracy & Inclusive Governance: Brought democracy to grassroots. Mandatory reservations for women (over 1.4 million elected women representatives) and SC/STs revolutionized empowerment.
- Bottom-up Planning & Service Delivery: Crucial for understanding local needs (GPDPs), leading to responsive service in health, education, water, sanitation.
- Accountability: Gram Sabhas and social audits provide platforms, though effectiveness varies.
- Capacity Building: Ongoing efforts through schemes like RGSA.
- Digital Governance: e-Gram Swaraj, AuditOnline enhancing transparency and efficiency.
Real-world/Data-backed Recent Examples:
- 15th Finance Commission Recommendations: Grants of Rs. 4,36,361 crore for 2021-26 to local governments, linking grants to performance.
- SVAMITVA Scheme (2020): PRIs play key role in mapping rural residential land using drones, improving land records.
- Jal Jeevan Mission (JJM): Panchayats central to planning, implementation, and management of village water supply.
- Localization of Sustainable Development Goals (L-SDGs): MoPR conceptualized L-SDGs into nine themes for PRIs to achieve locally.
- Women's Leadership: Studies show increased participation in Gram Sabhas and decision-making on local issues.
Current Affairs and Recent Developments (Last One Year)
Continuous Digital Push
MoPR continues promoting e-Gram Swaraj (online planning, budgeting, accounting) and AuditOnline (mandatory audit) for 2.69 lakh Panchayats, enhancing probity.
Capacity Building under RGSA
Reoriented Rashtriya Gram Swaraj Abhiyan focuses on training Panchayat members on the 9 themes of L-SDGs, with specialized modules for women, youth, and marginalized groups.
Convergence for Rural Development
Policy directives emphasize channeling flagship schemes (MGNREGS, SBM-G, JJM) through Panchayats for central planning and implementation, improving efficiency.
Aspirational Blocks Programme
Launched in Jan 2023, identifying 500 blocks for improved governance and development, with Panchayats playing a pivotal role in data-driven planning.
Plastic Waste Management via PRIs
Increasing emphasis on empowering Panchayats for effective plastic waste management, central to 'Swachhata Hi Seva' and 'ODF Plus' village initiatives.
UPSC Previous Year Questions (PYQs)
Prelims MCQs
UPSC CSE 2017: Local Self-Government can be best explained as an exercise in:
- (a) Federalism
- (b) Democratic decentralization
- (c) Administrative delegation
- (d) Direct Democracy
Answer: (b)
Hint/Explanation: The 73rd Amendment Act is fundamentally about 'democratic decentralization' – transferring power and responsibility to local elected bodies.
UPSC CSE 2013: The provisions in Fifth Schedule and Sixth Schedule in the Constitution of India are made in order to
- (a) protect the interests of Scheduled Tribes
- (b) determine the boundaries of States
- (c) determine the powers, authority and responsibilities of Panchayats
- (d) protect the interests of all the border States
Answer: (a)
Hint/Explanation: These schedules deal with administration and control of Scheduled/Tribal Areas for the protection and advancement of Scheduled Tribes. Art 243M exempts these areas, leading to PESA 1996.
UPSC CSE 2016: Which of the following statements regarding the 73rd Constitutional Amendment Act is NOT correct?
- (a) It makes it mandatory for all states to constitute Panchayats at the village, intermediate, and district levels.
- (b) It provides for the reservation of one-third of seats for women in Panchayats.
- (c) It mandates the constitution of a State Election Commission to conduct Panchayat elections.
- (d) It makes the Gram Sabha a mandatory body in every village.
Answer: (a)
Hint/Explanation: Article 243B exempts states with population < 20 lakhs from intermediate level Panchayats.
Mains Descriptive Questions
UPSC CSE 2019, GS Paper II: "The local self-government system in India has not proved to be an effective instrument of governance". Critically examine the statement and give your views to improve the situation. (250 words)
Direction/Value Points:
- Critical Examination (Not Effective): "3 Fs" (lack of funds, functions, functionaries), political interference, bureaucratic hurdles, elite capture/proxy representation, irregular Gram Sabha, parallel bodies, lack of capacity.
- Counter-arguments (Effective Instrument): Democratic deepening, empowerment of women/marginalized, governance closer to people, local leadership, improved service delivery, bottom-up planning.
- Measures to Improve: Comprehensive devolution of 3 Fs, enhanced financial autonomy, professional Panchayat cadre, strengthening Gram Sabha, leveraging technology, social audit, reducing interference.
UPSC CSE 2022, GS Paper II: Discuss the role of the State Election Commission in the conduct of Panchayat elections. What are the challenges faced by it? (250 words)
Direction/Value Points:
- Role of SEC (Art 243K): Constitutional mandate for superintendence, direction, control of electoral rolls & conduct of elections. Independence (removal like HC judge). Functions: delimitation, voter registration, notification, conduct of polls, results, dispute resolution.
- Challenges Faced: Lack of financial autonomy, functional autonomy (state delays elections), staffing issues (reliance on deputation), political interference, law and order management, capacity building needs, technology adoption.
Original Questions for Practice
Original MCQs for Prelims
Consider the following statements regarding the State Finance Commission (SFC) under the 73rd Constitutional Amendment Act:
- The SFC is constituted by the Governor every five years to review the financial position of Panchayats.
- It recommends the principles governing the distribution of net proceeds of State taxes between the State and the Panchayats.
- Its recommendations are binding on the State Government.
Which of the statements given above is/are correct?
- (a) 1 only
- (b) 1 and 2 only
- (c) 2 and 3 only
- (d) 1, 2 and 3
Answer: (b)
Explanation: Statement 1 and 2 are correct (Article 243-I). Statement 3 is incorrect; SFC recommendations are advisory, not binding.
Which of the following provisions of the 73rd Constitutional Amendment Act is/are voluntary (discretionary) for State Legislatures?
- Reservation of seats for Backward Classes.
- Endowing Panchayats with powers related to the 29 items in the Eleventh Schedule.
- Constitution of a State Election Commission.
- Providing for representation of MPs and MLAs in Panchayats.
Select the correct answer using the code given below:
- (a) 1, 2 and 3 only
- (b) 1, 2 and 4 only
- (c) 3 and 4 only
- (d) 1, 2, 3 and 4
Answer: (b)
Explanation: Statements 1, 2, and 4 are voluntary. Statement 3 (Constitution of SEC) is a compulsory provision.
Original Descriptive Questions for Mains
"The 73rd Constitutional Amendment Act marked a crucial shift towards democratic decentralization but its full potential remains untapped due to structural bottlenecks and lack of genuine political will." Discuss. (250 words)
Key points for answering:
- Introduction: Acknowledge transformative nature of 73rd CAA for democratic decentralization.
- Tapped Potential (Achievements): Deepening democracy, empowering marginalized groups, regular elections, bottom-up planning.
- Untapped Potential/Bottlenecks: '3 Fs' – inadequate funds, incomplete devolution of functions, lack of capable functionaries.
- Lack of Genuine Political Will: State governments' reluctance, political interference, bureaucratic resistance.
- Conclusion/Way Forward: Emphasize need for full devolution, strengthening Gram Sabhas, technology, sustained political commitment.
Examine how the Provisions of the Panchayats (Extension to Scheduled Areas) Act (PESA), 1996, attempts to reconcile the constitutional mandate of Panchayati Raj with the unique socio-cultural context of tribal areas. What are the key challenges hindering its effective implementation? (250 words)
Key points for answering:
- Introduction: Rationale for PESA's enactment for Scheduled/Tribal Areas.
- Reconciliation (How PESA works): Gram Sabha as empowered core (traditional governance, resources, customs), respect for customary laws, ownership of Minor Forest Produce, prevention of land alienation.
- Challenges in Implementation: Partial/varied implementation by states, weak Gram Sabhas, continued land alienation, non-clarity on MFP, limited financial autonomy, resistance from state bureaucracy and vested interests.
- Conclusion/Way Forward: Call for greater political will, awareness, capacity building, and effective monitoring for genuine tribal self-rule.