Panchayati Raj

• Panchayati Raj is a system of rural local self-government established in all Indian states to build democracy at the grassroot level.
• It was constitutionalised by the 73rd Constitutional Amendment Act of 1992.
• The item 'local Government' is in the State List of the Seventh Schedule of the Constitution.

Evolution of Panchayati Raj

Balwantrai Mehta Committee (1957)

• Appointed in January 1957 to examine the Community Development Programme (1952) and the National Extension Service (1953).
• Recommended a three-tier Panchayati Raj system:
  • Gram Panchayat (Village Level)
  • Panchayat Samiti (Block Level)
  • Zila Parishad (District Level)
• Village panchayat: Directly elected representatives.
• Panchayat samiti and zila parishad: Indirectly elected members.
• Entrusted all planning and development activities to these bodies.
• Panchayat samiti: Executive body.
• Zila Parishad: Advisory, coordinating and supervisory body.
• District Collector: Chairman of the Zila Parishad.
• Genuine transfer of power and resources to these bodies.

National Development Council (NDC)

• Accepted the recommendations of the Balwantrai Mehta Committee in January 1958.
• Rajasthan was the first state to establish Panchayati Raj (October 2, 1959, Nagaur district).
• Andhra Pradesh followed Rajasthan in 1959.

Variations Among States

• Differences in the number of tiers, the position of samiti and parishad, their tenure, composition, functions, and finances.
• Rajasthan: Three-tier system.
• Tamil Nadu: Two-tier system.
• West Bengal: Four-tier system.
• Rajasthan-Andhra Pradesh: Panchayat samiti was powerful (block as the unit).
• Maharashtra-Gujarat: Zila parishad was powerful (district as the unit).
• Some states established Nyaya Panchayats (judicial panchayats).

Study Teams and Committees

• Many study teams and committees have been appointed since 1960 to examine the functioning of the Panchayati Raj system.

Ashok Mehta Committee (1977)

• Appointed by the Janata Government under the chairmanship of Ashok Mehta.

• Submitted its report in August 1978 with 132 recommendations to revive and strengthen the Panchayati Raj system.

• Main Recommendations:

  1. Replace the three-tier system with a two-tier system:
     • Zila Parishad (district level)
     • Mandal Panchayat (group of villages with a total population of 15,000-20,000)
  2. A district should be the first point for decentralisation.
  3. Zila Parishad should be the executive body responsible for planning at the district level.
  4. Official participation of political parties at all levels of panchayat elections.
  5. Panchayati Raj Institutions should have compulsory taxation powers.
  6. Regular social audit by a district level agency and a committee of legislators.
  7. State government should not supersede Panchayati Raj Institutions; elections within six months if superseded.
  8. Nyaya Panchayats should be separate from development panchayats, presided over by a qualified judge.
  9. The chief electoral officer should organise panchayat elections.
  10. Development functions should be transferred to the Zila Parishad.
  11. Voluntary agencies should mobilise support for Panchayati Raj.
  12. A minister for Panchayati Raj should be appointed.
  13. Seats for SCs and STs should be reserved based on population.
  14. Constitutional recognition should be accorded to the Panchayati Raj Institutions.

• Due to the collapse of the Janata Government, no action was taken at the central level.

• Karnataka, West Bengal, and Andhra Pradesh took steps to revitalise Panchayati Raj.

G.V.K. Rao Committee (1985)

• Appointed by the Planning Commission to review administrative arrangements for rural development.
• Development process was bureaucratised and divorced from Panchayati Raj, resulting in "grass without roots".
• Recommendations to Strengthen Panchayati Raj:
  • The Zila Parishad should be of pivotal importance.
  • Panchayati Raj Institutions should have an important role in planning, implementation, and monitoring.
  • Some planning functions should be transferred to district level planning units.
  • Create a post of District Development Commissioner to act as chief executive officer of the Zila Parishad.
  • Elections to the Panchayati Raj Institutions should be held regularly.

L M Singhvi Committee (1986)

• Appointed to prepare a concept paper on 'Revitalisation of Panchayati Raj Institutions for Democracy and Development'.
• Recommendations:
  • Constitutional recognition, protection, and preservation of the Panchayati Raj Institutions.
  • Nyaya Panchayats should be established for a cluster of villages.
  • Villages should be reorganised to make Gram Panchayats more viable.
  • Emphasis on the importance of Gram Sabha.
  • Village Panchayats should have more financial resources.
  • Judicial tribunals should be established to adjudicate controversies related to Panchayati Raj Institutions.

Thungon Committee (1988)

• A sub-committee of the Consultative Committee of Parliament was constituted to examine the political and administrative structure in the district.
• Recommendations:
  1. The Panchayati Raj bodies should be constitutionally recognised.
  2. A three-tier system of Panchayati Raj.
  3. Zilla Parishad should be the pivot of the Panchayati Raj system.
  4. The Panchayati Raj bodies should have a fixed tenure of five years.
  5. The maximum period of supersession of a body should be six months.
  6. A planning and co-ordination committee should be set-up at the state level under the chairmanship of the minister for planning.
  7. A detailed list of subjects for Panchayati Raj should be prepared and incorporated in the Constitution.
  8. Reservation of seats in all the three-tiers should be on the basis of population.
  9. A state finance commission should be set-up in each state.
  10. The district collector should be the chief executive officer of the Zilla Parishad.

Gadgil Committee (1988)

• Constituted by the Congress party to consider how best Panchayati Raj Institutions could be made effective.
• Recommendations:
  1. A constitutional status should be bestowed on the Panchayati Raj Institutions.
  2. A three-tier system of Panchayati Raj.
  3. The term of Panchayati Raj institutions should be fixed at five years.
  4. The members of the Panchayats at all the three levels should be directly elected.
  5. Reservation for SCs, STs, and women.
  6. The Panchayati Raj bodies should have the responsibility for preparation and implementation of plans for socio-economic development.
  7. The Panchayat Raj bodies should be empowered to levy, collect, and appropriate taxes and duties.
  8. Establishment of a State Finance Commission.
  9. Establishment of a State Election Commission.

Constitutionalisation

Rajiv Gandhi Government

• Introduced the 64th Constitutional Amendment Bill in the Lok Sabha in July 1989 to constitutionalise Panchayati Raj Institutions.
• The Lok Sabha passed the bill, but it was not approved by the Rajya Sabha.

V.P. Singh Government

• Announced steps to strengthen Panchayati Raj Institutions.
• Held a two-day conference of state chief ministers in June 1990 to discuss strengthening Panchayati Raj bodies.

Narasimha Rao Government

• Considered the constitutionalisation of Panchayati Raj bodies and introduced a constitutional amendment bill in the Lok Sabha in September 1991.
• This bill finally emerged as the 73rd Constitutional Amendment Act, 1992, which came into force on 24 April, 1993.

73rd Amendment Act of 1992

Significance of the Act

• Added a new Part-IX to the Constitution of India, entitled 'The Panchayats', consisting of provisions from Articles 243 to 243-O.
• Added a new Eleventh Schedule to the Constitution, containing 29 functional items of the panchayats.
• Gave practical shape to Article 40 of the Constitution.
• Gives a constitutional status to the Panchayati Raj Institutions.
• State governments are under a constitutional obligation to adopt the new Panchayati Raj system.

Salient Features of the Act

Feature	Description
Gram Sabha	Body consisting of registered voters in the area of a Panchayat at the village level.
Three-Tier System	Panchayats at the village, intermediate, and district levels in every state. (Population > 20 Lakh)
Election of Members	All members of Panchayats at the village, intermediate and district levels shall be elected directly by the people.
Reservation of Seats	Reservation of seats for SCs and STs in proportion to their population. Not less than 1/3rd seats for women.
Duration of Panchayats	Five-year term of office. Fresh elections to be completed before the expiry of duration or within six months of dissolution.
Disqualifications	As per state legislature. Minimum age of 21 years.
State Election Commission	Superintendence, direction and control of elections to the Panchayats.
Powers and Functions	State legislature may endow Panchayats with powers and authority to function as institutions of self-government.
Finances	State legislature may authorise a Panchayat to levy, collect, and appropriate taxes, duties, tolls, and fees.
Finance Commission	Governor to constitute a Finance Commission every five years to review the financial position of the Panchayats.
Audit of Accounts	The state legislature may make provisions regarding the audit of accounts by the Panchayats

Application to Union Territories

• Provisions of this Part are applicable to the Union territories.

Exempted States and Areas

• The act does not apply to the states of Nagaland, Meghalaya and Mizoram and certain other areas.

Continuance of Existing Laws and Panchayats

• All state laws relating to panchayats shall continue to be in force until the expiry of one year from the commencement of this act.

Bar to Interference by Courts in Electoral Matters

• The act bars the interference by courts in the electoral matters of panchayats.

Eleventh Schedule

• Contains 29 functional items placed within the purview of panchayats.

Compulsory and Voluntary Provisions

Category	Provisions
Compulsory	Organisation of Gram Sabha; establishment of panchayats; direct elections; reservation of seats; tenure; State Election Commission; State Finance Commission
Voluntary	Endowing Gram Sabha with powers and functions; manner of election of chairperson; representation to members of Parliament and state legislature; reservation for backward classes; granting powers to function as institutions of self-government; assigning taxes, etc.

PESA Act of 1996 (Extension Act)

• The Parliament may extend these provisions to such areas, subject to such exceptions and modifications as it may specify.

Objectives of the Act

1. To extend the provisions of Part IX of the Constitution relating to the panchayats to the scheduled areas with certain modifications
2. To provide self-rule for the bulk of the tribal population
3. To have village governance with participatory democracy and to make the gram sabha a nucleus of all activities
4. To evolve a suitable administrative framework consistent with traditional practices
5. To safeguard and to preserve the traditions and customs of tribal communities
6. To empower panchayats at the appropriate levels with specific powers conducive to tribal requirements
7. To prevent panchayats at the higher level from assuming the powers and authority of panchayats at the lower level of the gram sabha

Features of the Act

1. A state legislation on the Panchayats in the Scheduled Areas shall be in consonance with the customary law, social and religious practices and traditional management practices of community resources.
2. A village shall ordinarily consist of a habitation or a group of habitations or a hamlet or a group of hamlets comprising a community and managing its affairs in accordance with traditions and customs.
3. Every village shall have a Gram Sabha consisting of persons whose names are included in the electoral rolls for the Panchayat at the village level.
4. Every Gram Sabha shall be competent to safeguard and preserve the traditions and customs of the people, their cultural identity, community resources and the customary mode of dispute resolution.
5. Every Gram Sabha shall
   • Approve of the plans, programmes and projects for social and economic development before they are taken up for implementation by the Panchayat at the village level; and
   • Be responsible for the identification of beneficiaries under the poverty alleviation and other programmes.
6. Every Panchayat at the village level shall be required to obtain from the Gram Sabha a certification of utilisation of funds for the above plans, programmes and projects.
7. The reservation of seats in the Scheduled Areas in every Panchayat shall be in proportion to the population of the communities for whom reservation is sought to be given under Part IX of the Constitution.

• The state government may nominate such Scheduled Tribes which have no representation in the Panchayat at the intermediate level or the Panchayat at the district level.

• The Gram Sabha or the Panchayats at the appropriate level shall be consulted before making the acquisition of land in the Scheduled Areas for development projects.

Finances of Panchayati Raj

Sources of Revenue

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

Problems in Finances

1. States have not given adequate attention to fiscal empowerment of the Panchayats.
2. The Panchayats own resources are meager.
3. Internal resource generation at the Panchayat level is weak.
4. Panchayats are heavily dependent on grants from Union and State Governments.
5. A major portion of the grants is scheme specific.

Taxes under the jurisdiction of the Village Panchayats:

1. Property/house tax
2. Profession tax
3. Land tax/cess
4. Taxes/tolls on vehicles
5. Entertainment tax/fees
6. License fees
7. Tax on non-agriculture land
8. Fee on registration of cattle, sanitation/drainage/conservancy tax
9. Water rate/tax, lighting rate/tax
10. Education cess and tax on fairs and festivals.

Reasons for Ineffective Performance

1. Lack of adequate devolution.
2. Excessive control by bureaucracy.
3. Tied nature of funds.
4. Overwhelming dependency on government funding.
5. Reluctance to use fiscal powers.
6. Status of the Gram Sabha.
7. Creation of Parallel Bodies.
8. Poor Infrastructure.