Panchayati Raj

The term signifies the system of rural local self government. 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. Its major focus is on the rural development and people participation in governing themselves. The system was constitutionalised through the 73rd Constitutional Amendment Act of 1992.

Evolution of Panchayati Raj System

Constitutionalisation

• Rajiv Gandhi Government: Initially, 64th Constitutional Amendment Bill in the Lok Sabha in July 1989 to constitutionalise panchayati raj institutions, couldn’t passed by Rajya Sabha.
• P.V. Narasimha Rao Government: Eventually, 64th Constitutional Amendment Bill emerged as the 73rd Constitutional Amendment Act, 1992 and came into force on 24 April, 1993 .

73rd Amendment Act of 1992

Articles related to Panchayats

Significance:

• New part IX to the constitution, eleventh schedule consisting 29 functional items of the panchayats.
• Part IX – Article 243 To Article 243 O.
• Inclusion of vast pool of women’s in democratic decision making process – led to political empowerment of women in rural areas.
• Democratic shape to Article 40 (DPSP)- “state to organise the village panchayats and provide them powers and authority so they can function as self-government.”
• Panchayati Raj systems come under the purview of justiciable part of the constitution and mandates states to adopt the system.
• Further, the election process in the Panchayati Raj institutions will be held independent of state governments will.
• The act has two parts: compulsory and voluntary. Compulsory provisions must be added to state laws, which includes the creation of the new Panchayati Raj systems. Voluntary provisions, on the other hand, is the discretion of the state government.
• The act is milestone step in creating democratic institutions at the grassroots level in the country. The act has transformed the representative democracy to participatory democracy.

Features of the Act

• Gram Sabha 243A: Village assembly consisting of all the registered voters within the area of the panchayat.
• Three-tier system: At village, intermediate and district level. States with a population less than 20 lakhs may not constitute the intermediate level.
• Election of members and chairperson (243K): The members to all the levels of the Panchayati Raj is elected directly and chairperson to the intermediate and the district level is elected indirectly from the elected members and at the village level the Chairperson is elected as determined by the state government.

Reservation of Seats

• SC and ST – in proportionate to their population.
• Women– Not less than one-third of the total number of seats to be reserved for women, further not less than one-third of the total number of offices for chairperson at all levels of the panchayat to be reserved for women.
• The state legislatures are also given the provision to decide on the reservation of seats in any level of panchayat or office of chairperson in favour of backward classes.
• Provision relating to the reservation of seats in panchayats (both members and chairpersons) for the scheduled castes is not applicable to the state of Arunachal Pradesh. This is because the state is inhabited fully by indigenous tribal people and there are no scheduled castes.

Duration of Panchayat 243 E:

• five-year term of office to all the levels of the panchayat. Panchayat can be dissolved before the completion of its term. fresh elections to constitute the new panchayat shall be completed before the expiry of its five-year duration.

Disqualification 243 F: 

• 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 the purpose of elections to the legislature of the state concerned.
• Under any law made by the state legislature.
• Further, all questions relating to disqualification shall be referred to an authority determined by the state legislatures.
• 21 years to be the minimum age for contesting elections to panchayats.

State election commission for each state

• The state legislature may make provision with respect to all matters relating to elections to the panchayats. SEC conducts elections for Panchayats and Municipalities.

Powers and Functions 243 G:

• The state legislature may endow the Panchayats with such powers and authority as may be necessary to enable them to function as institutions of self-government.
• The preparation of plans for economic development and social justice.
• The implementation of schemes for economic development and social justice as may be entrusted to them, including those in relation to the 29 matters listed in the Eleventh Schedule.

Finances 243 H:

The state legislature may,

• Authorise a panchayat to levy, collect and appropriate taxes, duties, tolls and fees.
• Assign to a panchayat taxes, duties, tolls and fees levied and collected by the state government
• Provide for making grants-in-aid to the panchayats from the consolidated fund of the state.
• Provide for the constitution of funds for crediting all money of the panchayats.

Finance Commission 243 I :

• Governor of a state shall, after every five years, constitute a finance commission to review the financial position of the panchayats and make recommendations thereof.

Audit of Accounts 243 J:

• State legislature may make provisions for the maintenance and audit of panchayat accounts.

Application to Union Territories 243 L:

• The president may direct the provisions of the act be applied on any union territory subject to exceptions and modifications he specifies.

Exempted states and areas:

• The act does not apply to the states of Nagaland, Meghalaya and Mizoram and certain other areas. These areas include-
• • The scheduled areas and the tribal areas in the states
  • The hill area of Manipur for which a district council exists and
  • Darjeeling district of West Bengal for which Darjeeling Gorkha Hill Council exists.

Bar to interference by courts 243 O :

• It further lays down that no election to any panchayat is to be questioned except by an election petition presented to such authority and in such manner as provided by the state legislature.

PESA Act of 1996

Panchayats (Extension to Scheduled Areas) Act, 1996 is a law enacted by Government of India to cover the “Scheduled Areas”, which are not covered in the 73rd Constitutional amendment. This particular act extends the provisions of Part IX to the Scheduled Areas of the country. PESA brought powers further down to the Gram Sabha level. The Gram Sabha in the Panchayat Act were entrusted with wide ranging powers starting from consultation on land acquisition to that of ownership over minor forest produces and leasing of minor minerals.

Objectives of the PESA Act:

• To include the scheduled areas in the application of Part IX’s provisions.
• To provide the indigenous populace self-government.
• To establish democratic participation in village governance.
• To develop participatory governance in accordance with established procedures.
• To protect and preserve indigenous populations’ traditions and customs.
• Giving panchayats authority in accordance with tribal needs.
• To stop panchayats at higher levels from absorbing the authority and powers of panchayats at lower levels.

Finances of Panchayati Raj

• Grants from the Union Government based on recommendations of the Central Finance Commission as Article 280 of the Constitution.
• Devolution from the State Government based on recommendations of the State Finance Commission as per Article 243-I.
• Loans or grants from the State Government.
• Programme-specific allocation under Centrally Sponsored Schemes and Additional Central Assistance.
• Internal Resource Generation (tax and non-tax).