Three decades have passed since the Acts came into effect, which envisaged that local bodies in India would function as institutions of local self government. As a follow up, the Ministry of Panchayati Raj was constituted in 2004 to strengthen rural local governments.
The constitutional amendment has set forth specific details on fiscal devolution which includes the generation of own revenues. Emanating from the Central Act, various States Panchayati Raj Acts have made provisions for taxation and collection. Based on the provisions of these Acts, panchayats have made efforts to generate their own resources to the maximum extent.
What are the Salient Features of the 73rd and 74th Amendments?
- About:
- These amendments added two new parts to the Constitution, namely, Part IX titled “The Panchayats” (73rd Amendment) and Part IXA titled “The Municipalities” (74th Amendment).
- Basic units of democratic system-Gram Sabhas (villages) and Ward Committees (Municipalities) comprising all the adult members registered as voters.
- Three-tier system of panchayats at village, intermediate block/taluk/mandal and district levels except in States with population is below 20 lakhs (Article 243B).
- Seats at all levels to be filled by direct elections Article 243C (2).
- Reservation Provisions:
- 1/3rd of the total number of seats to be reserved for women.
- 1/3rd of the seats reserved for SCs and STs are also reserved for women.
- 1/3rd offices of chairpersons at all levels reserved for women (Article 243D).
- Tenure:
- Uniform five year term and elections to constitute new bodies to be completed before the expiry of the term.
- In the event of dissolution, elections compulsorily within six months (Article 243E).
- Independent Election Commission in each State for superintendence, direction and control of the electoral rolls (Article 243K).
- Developmental Planning:
- Panchayats to prepare plans for economic development and social justice in respect of subjects as devolved by law to the various levels of Panchayats including the subjects as illustrated in Eleventh Schedule (Article 243G).
- The 74th Amendment provides for a District Planning Committee to consolidate the plans prepared by Panchayats and Municipalities (Article 243ZD).
- The Eleventh Schedule of the Constitution places as many as 29 functions within the purview of the Panchayati Raj bodies.
- Revenue and Finances:
- Budgetary allocation from State Governments, share of revenue of certain taxes, collection and retention of the revenue it raises, Central Government programmes and grants, Union Finance Commission grants (Article 243H).
- Establish a in each State to determine the principles on the basis of which adequate financial resources would be ensured for panchayats and municipalities (Article 243I).