73rd Constitutional Amendment Act

The 73rd Constitutional Amendment Act, 1992 represents a landmark reform in India’s governance structure, providing constitutional status to the Panchayati Raj System—a three-tier mechanism for rural local self-government. Enforced on 24 April 1993, it institutionalised democracy at the grassroots level by empowering citizens to participate directly in governance and development. The amendment transformed local bodies from mere administrative agencies into constitutional entities, thereby realising the Gandhian vision of Gram Swaraj or village self-rule.

Historical Background and Evolution

The roots of the Panchayati Raj system can be traced to India’s ancient socio-political fabric, where self-sufficient villages were administered by councils of elders or panchas. These traditional institutions served judicial, administrative, and developmental roles in rural life.
In modern India, the importance of village-level democracy was reaffirmed by Mahatma Gandhi, who advocated that India’s real strength lay in its villages. He envisioned self-sustaining village republics capable of making decisions independently for their development.
The Constitution of India (1950) included a directive in Article 40, which instructed the State to “take steps to organise village panchayats and endow them with such powers and authority as may be necessary to enable them to function as units of self-government.” However, this remained largely unimplemented in the initial decades after Independence.
A series of committees were subsequently formed to strengthen local governance:

• Balwantrai Mehta Committee (1957): Recommended the establishment of a three-tier Panchayati Raj structure—Gram Panchayat at the village level, Panchayat Samiti at the block level, and Zila Parishad at the district level. Rajasthan became the first state to implement this model in 1959.
• Ashok Mehta Committee (1977): Suggested a two-tier structure with district-level Zila Parishads as pivotal institutions, direct elections, and representation of political parties.
• G.V.K. Rao Committee (1985): Emphasised administrative integration and empowering local bodies to plan and implement rural development schemes.
• L.M. Singhvi Committee (1986): Advocated giving constitutional recognition to Panchayati Raj institutions to ensure stability and uniformity across the nation.

The absence of constitutional backing, irregular elections, and financial dependency led to the decline of the system in many states. Recognising these shortcomings, the Government of India enacted the 73rd Constitutional Amendment Act in 1992, which granted Panchayati Raj Institutions (PRIs) constitutional status.

Constitutional Framework and Provisions

The 73rd Amendment added a new Part IX (Articles 243–243O) to the Constitution and introduced the Eleventh Schedule, detailing 29 functional subjects for Panchayati Raj bodies. These provisions made Panchayati Raj a permanent feature of Indian democracy.
1. Gram Sabha (Article 243A):The Gram Sabha, comprising all registered voters of a village, acts as the foundation of the Panchayati Raj system. It functions as a deliberative and decision-making body responsible for approving development plans, scrutinising budgets, and holding elected representatives accountable.
2. Three-Tier Structure (Article 243B):A uniform three-tier structure was mandated across all states:

• Gram Panchayat – Village Level
• Panchayat Samiti – Intermediate or Block Level
• Zila Parishad – District Level

States with populations below 20 lakh may choose not to establish the intermediate level.
3. Composition and Election (Article 243C):Members of each Panchayat are directly elected by the people through adult suffrage. The chairpersons of intermediate and district levels are elected indirectly by members from the lower tiers.
4. Duration (Article 243E):Panchayats have a tenure of five years. In case of dissolution, elections must be held within six months to reconstitute the body.
5. Reservation of Seats (Article 243D):

• Seats are reserved for Scheduled Castes (SCs) and Scheduled Tribes (STs) in proportion to their population in the area.
• At least one-third of all seats and chairperson posts are reserved for women.
• States may also provide reservation for Backward Classes.

This provision has significantly enhanced women’s participation in politics, with several states (like Bihar, Rajasthan, and Odisha) increasing reservation for women to 50%.
6. Powers, Authority, and Responsibilities (Article 243G):State legislatures are empowered to endow Panchayats with authority to prepare and implement plans for economic development and social justice. PRIs are responsible for schemes listed in the Eleventh Schedule, which includes:

• Agriculture and irrigation
• Rural housing and sanitation
• Health and family welfare
• Education, especially primary and adult education
• Roads, rural electrification, and poverty alleviation
• Women and child development

7. State Election Commission (Article 243K):A State Election Commission (SEC) is established in each state to direct, control, and prepare electoral rolls for Panchayat elections. The SEC ensures regular, free, and fair elections.
8. State Finance Commission (Article 243I):Every five years, states must constitute a Finance Commission to recommend:

• The distribution of revenues between the state and Panchayats.
• Criteria for grants-in-aid.
• Measures to improve the financial position of Panchayats.

9. Eleventh Schedule:Inserted by the amendment, it lists 29 functional areas devolved to Panchayati Raj Institutions, reflecting a shift from centralised to decentralised planning.

Implementation and Institutional Development

The 73rd Amendment was implemented on 24 April 1993, which is now celebrated as National Panchayati Raj Day. The Ministry of Panchayati Raj was created in 2004 to coordinate national efforts and strengthen local governance frameworks.
Since implementation:

• Over 2.6 lakh Gram Panchayats, 6,000 Block Panchayats, and 600 Zila Parishads have been constituted across India.
• Approximately 32 lakh representatives are elected, of whom nearly 46% are women—the largest number of elected women representatives globally.
• Kerala became a model state for decentralised planning through its People’s Plan Campaign, where 35–40% of the state’s plan budget was devolved to local bodies.

Digital initiatives such as e-Gram Swaraj, AuditOnline, and Panchayat Enterprise Suite (PES) have enhanced transparency and accountability in governance.

Financial Devolution and Fiscal Challenges

While the amendment empowered Panchayats constitutionally, their financial autonomy remains limited. PRIs rely heavily on:

• State transfers recommended by State Finance Commissions.
• Centrally Sponsored Schemes (CSS) such as MGNREGA, PMGSY, and SBM.
• Own-source revenues from property tax, markets, or user fees—though these are minimal in most rural areas.

The Fifteenth Finance Commission (2020–25) allocated substantial grants to strengthen local governance, including ₹2.36 lakh crore for rural local bodies. However, challenges persist due to irregular fund flows and capacity constraints in financial management.

Achievements and Socio-political Impact

The 73rd Amendment has significantly transformed rural governance in India through:

• Democratic Deepening: Empowered citizens to participate directly in governance and decision-making.
• Women’s Empowerment: Enhanced women’s representation in political institutions, contributing to gender equality and leadership development.
• Rural Development: Facilitated local planning in infrastructure, education, and welfare programmes.
• Transparency: Gram Sabhas have become forums for participatory budgeting and social audits.
• Inclusion: Improved representation of marginalised groups such as SCs, STs, and OBCs.

States like Karnataka, Kerala, and West Bengal have demonstrated successful devolution models where Panchayats actively manage development projects.

Limitations and Criticisms

Despite constitutional backing, several structural and operational challenges limit the effectiveness of PRIs:

• Incomplete Devolution: Many states have not transferred the full range of powers and subjects from the Eleventh Schedule.
• Financial Dependence: Panchayats lack sufficient revenue-generating authority, relying heavily on state and central funding.
• Administrative Weakness: Shortage of trained personnel and inadequate technical capacity hinder effective local planning.
• Political Interference: State governments occasionally supersede Panchayats, delay elections, or withhold funds.
• Socio-cultural Barriers: Patriarchal norms and caste hierarchies sometimes reduce the autonomy of elected representatives, particularly women.

The effectiveness of Panchayati Raj is therefore uneven across states, depending largely on political will, administrative capacity, and fiscal decentralisation.

Significance and Contemporary Relevance

The 73rd Constitutional Amendment is widely regarded as a foundation of participatory democracy in India. It institutionalised the principle of subsidiarity—that governance and decision-making should occur at the lowest effective level.
The system has been instrumental in:

• Decentralising administration and development.
• Strengthening social accountability and grassroots participation.
• Fostering leadership among marginalised communities.
• Enhancing coordination between government departments and citizens.

In recent years, initiatives such as Gram Panchayat Development Plans (GPDPs), Mission Antyodaya, and the Digital India programme have further strengthened Panchayati Raj institutions as engines of rural transformation.

Legacy and Long-term Impact

Three decades after its implementation, the 73rd Amendment remains one of the most transformative constitutional reforms in India’s democratic history. It has:

• Brought over 60% of India’s population under direct democratic governance.
• Contributed to inclusive development, women’s empowerment, and social justice.
• Reinforced the constitutional vision of India as a sovereign, socialist, secular, democratic republic—not merely at the national and state levels but in every village.

The 73rd Amendment, together with the 74th Constitutional Amendment Act, 1992, which established Urban Local Bodies, forms the backbone of India’s decentralised governance framework, ensuring that democracy truly begins at the grassroots.