TITLE OF THE RESEARCH PAPER

Role of local Governments – origin and Development

By

Name of the Student: M.PHILIP CAREY

Roll No.: 21BALLB072

Semester: 1

Name of the Program: 5 Year B.A., LL.B.(Hons.)

Name of the Faculty Member

PROFESSOR T.Y. NIRMALA DEVI

Date of Submission:30-01-2022

DAMODARAM SANJIVAYYA NATIONAL LAW UNIVERSITY

NYAYAPRASTHA “, SABBAVARAM,
VISAKHAPATNAM – 531035, ANDHRA PRADESH”
 “Table of contents”

Cover page
Table of contents
ACKNOWLEDGEMENT
Abstract
Aims of the Study
Scope of the Study
Survey and Review of Literature
the research paper Content
Chapter 1 Introduction

Chapter 2 Historical Background of the Topic

Chapter-3 INDIA'S GROWTH OF LOCAL GOVERNMENT

Chapter-4 73RD AND 74TH AMENDMENTS

Outcomes of the paper conclusion and suggestions

 “ACKNOWLEDGEMENT”
PROFESSOR T.Y. NIRMALA DEVI, my Political Science professor, deserves special thanks for
her help and direction during the development of this study. Without her foresight and
thoughtfulness, none of this would have been possible.
 “ Abstract”

Panchayats, as a form of village-level self-government, have its origins in Ancient India.

Panchayats or Gram Sangha, a type of village council or an organization of local people made up
of village elders, exercised administrative and judicial tasks. It is not enough to have an elected
administration at the federal and state levels in a democracy. It is also vital to have an elected
government to oversee local concerns, even at the municipal level. Local government refers to the
administration of a village or a district. Local government refers to governance that is closest to
the people. Local government is concerned with the day-to-day activities and issues of regular
residents. Local government considers local knowledge and interest to be critical components of
democratic decision-making. They're also required for effective, user-friendly management. Local
government has the advantage of being so close to the people. People find it convenient to
approach the local government to solve their concerns swiftly and at a low cost. The reader will
learn about the organization of local government in our nation in this Paper.
 SYNOPSIS

OBJECTIVE

1. To understand what are local governments ?

2. To analyze whether certain laws brought positive or negative change
3. To understand what constitution, say on local governments
4. To understand the history and origin of local governments

LITERATURE REVIEW

This researcher has used various books and articles published in journals.

RESEARCH METHODOLOGY

This researcher has used the primary and secondary sources of data. This is a doctrinal and
analytical study where different terms have been defined and a hypothesis has been formed.

SCOPE OF STUDY

This study has been limited to voting and government formation. There has been specific focus
on Indian and Israeli ways of parliament. Documents that explain the mentioned topics have
been used i.e., articles, books, essays and dictionaries..

SIGNIFICANCE OF STUDY

This study shall help readers understand how Multi party system began and developed across
time and due to changing aspirations of citizens what is the actual worth of each vote. The
reader will understand how government formation in India and Israel happens

. RESEARCH QUESTIONS

1. Whether local governments perfect?

2. Is there a need for local governments ?
MODE OF CITATION

Oxford style of citation has been used.

RESEARCH DESIGN

Title-

“Role of local Governments – origin and

Development”
 Chapter 1
Introduction

It is not enough to have an elected administration at the federal and state levels in our type of
government It is also vital to have a democratically elected government to oversee local concerns,
even at the municipal level. Local government refers to the administration of a village or a district.
Local government refers to governance that is closest to the people. Local government is concerned
with the regular activities along with issues of regular residents. Local governments regard local
knowledge and interest as essential components of democratic decision-making. They're also
required for effective, user-friendly management. Local government has the advantage of being so
close to the people. People find it convenient to approach the local government to solve their
concerns swiftly and at a low cost. Gram Panchayat is a local government unit in India. Because
to the tireless work of its Gram Panchayat President and members, Vengaivasal village has been
able to keep its land and the ability to determine what to do with it. As a result, municipal
governments may be quite effective in safeguarding people's local interests.
Meaningful involvement is at the heart of democracy. It's also about taking responsibility. Local
governments that are strong and dynamic provide both active involvement and intentional
responsibility. Ordinary residents may participate in decisions affecting their life, their needs, and,
most importantly, their local government growth
Tasks that can be completed locally should be left in the hands of local people and their
representatives in a democracy. Ordinary citizens are more acquainted with their local government
than with the Central or state government. In addition, they are more worried about what the local
government is responsible for or does not do since it has a direct influence on their daily lives. As
a result, bolstering local governance is akin to bolstering democratic procedures.
 Chapter 2
History

Ancient History:
Panchayats, as a form of self-government at village-level, have its origins from Ancient India.
Gram Sangha or Panchayats, a type of village govrt or an organisation for local people made up
of village elders, exercised judicial tasks and administrative. Gram Sanghas or Panchayats were
sometimes formed by peasants who governed their own lives through these groups. “The
Manusmiriti, Kautilaya's Arthashastra (400 B.C.) and the Mahabharata all mention Gram Sanghas.
The Mahabharata's Shanti Parva also mentions a Sabha called 'Sansad.' This was known as the 'Jan
Sansad' since it was made up of ordinary people.” 1The Ganapada, according to Valmiki's
Ramayana, was a combination of village republics. Only those with the general good of the people
in their hearts might become members (Kashyap, 2003).

Invasion from the north-west threw local self-government organisations into disarray. During the
mediaeval period, little attempt was made to reinstate the same. The Mughal government was
extremely centralised. Villages were only attacked for the purpose of collecting taxes; they were
never invaded for administrative reasons.. While the King was in charge, his staff of zamindars
and jagirdars, who made up the Mughal elite, engaged with the peasantry for exploitation. Agrarian
interactions in the rural became more difficult as a result of this. A highly bureaucratized hierarchy
of officials existed in the pre-British Mughal administration. The British made full use of this
administrative infrastructure while making essential alterations to meet their own needs.
Commercial interests led much of the administrative and political transformation throughout the
British period. To expand trade and private property, the rule of law was required, as well as a
governmental apparatus to enforce contractual responsibilities. As a result, political and
administrative changes were implemented on a regular basis, including the creation of local self-
governing organisations based on British thought and practise. They lacked the native flavour, yet
they were present.

The 'feudalization' in India is mostly credited to the Gupta dynasty, when the preceding Mauryan
era's centralised rule paved the way for a decentralised system to emerge in which the aristocracy

1
'Prehistoric Age In India - Paleolithic, Mesolithic, Neolithic, Chalcolithic (UPSC GS-I)& Iron Ages' (BYJUS)
Prehistoric Age in India - Paleolithic, Mesolithic, Neolithic, Chalcolithic (UPSC GS-I)& Iron Ages (byjus.com) 20
January 2022.
gained property rights and, as a result, influence over people. The oligarchs wielded significant
power over the king, who was reliant on them for military supplies and assistance during battle.
During Harsha's rule, the pattern persisted, and it deteriorated subsequently. India had ceased to
be a unified government on the eve of the twelfth century, and presented a diverse image of
different tribes and endless wars for 'paramountcy.' The British, on the other hand, did not achieve
monarchy until much later. They combied the 'nation state,' but clearly for one’s own advantage,
previously indicated, and established contemporary government structures. Only in 1882, when
the Government of Rippon issued a resolution advocating measures toward local self-government,
did the British overlords consider reversing the tendency of centralization. The resolution urged
provincial governments to create a nationwide network of Local Boards with specific funding
responsibilities.

As a result, Lord Mayo's Resolution (1870) and Lord Rippon's Resolution (1870) are responsible
for the current concept of democratic decentralisation (rural local government) (1882). The Royal
Commission on Decentralisation Report (1909), as well as the Government of India Acts of 1919
and 1935, have all contributed to this goal.

To maintain and stabilise its political power, the British government implemented a number of
initiatives, including the recognition of local panchayats. In 1909, a special commission on local
self-government was established, which recommended that village Panchayats be revitalised to
handle local matters. The Decentralization Commission, which issued its findings in 1909, offered
some far-reaching recommendations to fix some of the problems with the Local Boards'
operations. The Commission's recommendations were supported by a government decision in
1915. The provincial governments, on the other hand, took no action on the problem. succeeding
the Montague Declaration of 1917, which called for the gradual introduction of responsible
government, beginning with local bodies, the Government of India issued a Resolution in 1918,
and by 1919, rural self-government was placed under the control of Indian ministries under the
scheme of provincial dyarchy. There has been some improvement. Aside from the Municipal and
Local Boards Acts, practically all provinces have approved legislation to establish Panchayats in
villages

Following that, several Acts were passed, including the Bengal village self-government Act of
1919, the Madras, Bombay, and United Provinces Village Panchayats Acts of 1920, the Bihar and
Orissa Village Administration Act, the Assam Rural Self-government Act of 1926, and the Punjab
Village Panchayats Act of 1935, among others, to look after village affairs and certain matters
relating to their development. Provincial autonomy was established in the provinces in April 1937
under the Government of India Act of 1935. In eight of the eleven provinces, Congress
governments were elected. During the Congress' tenure, significant progress in the direction of
Panchayati Raj was accomplished. Each village Panchayat will form a working party with an
elected head, according to Gandhiji's January 1948 Plan. Above the village Panchayat was a
hierarchy of indirectly elected organisations called taluka and district panchayats, each of which
included the sarpanchas of the panchayats below. The provincial Panchayat will be made up of
members from the district and municipal panchayats. Defense, currency, customs, the management
of vital national industries, and the coordination of province economic development plans would
all fall within the purview of the national Panchayat (N.V, Raj. 1948).

However, because the government generally nominated its members, the Panchayats established
under these statutes were not democratic entities. Their authority was restricted, and their financial
resources were likewise constrained.

Post-independence
With the arrival of Mahatma Gandhi on the national scene and his advocacy of the doctrine of
national development through autonomous rural organizations, which he aimed to model after the
Panchayat system that existed in Ancient India, the call for greater autonomy for rural bodies
gained conceptual strength. Panchayats, Taluka Panchayats, District Panchayats, Provincial
Panchayats, and All-India Panchayats were proposed as a five-tier system. He envisioned an
administrative organization in the form of a pyramid, with a broad base that would include many
of the country's local communities.

In 1946, Mahatma Gandhi correctly said that "Indian freedom must begin at the bottom," and that
"every village should be a Republic of Panchayats with powers." It is a positive development that
numerous economists have begun to see a new value in the notion of political decentralisation as
a means of ensuring people's engagement at the grassroots level so that development benefits may
reach them. As a result, it was only inevitable that calls for the resurrection of the Panchayat form
of local administration were raised in the Constituent Assembly. Some provinces approved
Panchyati Raj Acts and took real efforts to organize village panchayats as units of rural self-
government and empower them with some administrative functions and authority soon after
independence.
S.N. Agarwal's Gandhian Constitution for Free India envisioned self-sufficient, self-governing
village communities. Gandhiji was a staunch supporter and follower of rural swaraj (self-rule).
The word encompasses local autonomy and self-sufficiency for him. Thus, Gandhiji envisioned
each village functioning as a small republic in which residents not only solve their own problems
but also formulate policy and development (Prior to the 73rd and 74th Amendments, a clause
regarding PRIs was inserted in the Indian constitution in Article 40 under the chapter on Directive
Principles of State Policy on Gandhiji's insistence.) All adults in the community were to elect
members of the village panchayats). The village intended to serve as the fundamental unit of
development planning. Later on, the Sarvodaya movement drew on this distributed democracy and
decentralization doctrine. As a result, "the movement for Panchayati Raj achieved both intellectual
respectability and sentimental appeal, emphasizing that in such a state, the best servants of the
village should form the Panchayat, which should be elected unanimously, and there should be
indirect election to sub-districts, provincial, and central administration from the village level".

Jawaharlal Nehru also mentioned the existence of democratic institutions at the village level in
ancient India, claiming that "her vast system of village republics or self-governing Panchayats"
was India's true strength. These Panchayats were "chosen by the people of the village, and hence
there existed a democratic foundation in this system." Nehru was shocked to learn that these
Panchayats had both executive and judicial powers, and that "the King's officers regarded its
members with the highest reverence.". On March 16, 1963, Nehru stated that community
development and Panchayati Raj were among the most beneficial developments in the country,
combining to form a revolutionary movement that had proven to be an amazing success,
strengthening India at its very roots and preparing millions of men and women to shoulder
responsibility and be self-reliant, even if it had only yielded a fourth of the expected results. "I
have entire trust in its success because I have full confidence in Indian people," Nehru declared
subsequently, on June 22, 1963.

The Planning Commission was established in March 1950, and we began to prepare for large-scale
economic and social improvement. As a result, the Planning Commission focused its attention on
the development of rural regions for two years. As a result, the Planning Commission considered
developing village development programs to combat the five giants of hunger, poverty, disease,
and ignorance through a self-help Community Development program. "Community development
is a movement aimed at improving the quality of life for the entire community via active
community engagement and initiative2." At the Ashridge Conference on Social Development in
1954, the word was defined in this way. The local Panchayats gained even greater traction with
the introduction of the First Five-Year Plan in 1951. Some states launched community

2
'Chapter 1: What Is Community Engagement? | Principles Of Community Engagement | ATSDR' (Atsdr.cdc.gov,
2015) Chapter 1: What Is Community Engagement? | Principles of Community Engagement | ATSDR (cdc.gov)
accessed 19 January 2022.
development and rural development initiatives in 1952 with the help of the local Five Year Plan,
which was executed in 1956.

From a simple reference in the constitution in the form of Directive Principles, India's Panchayat
Raj Institutions (PRIs) have come a long way to gaining constitutional stature (Article 40). "The
state shall take efforts to organise Village Panchayats and invest them with such powers and
authority as may be required to allow them to operate as units of self-government," says Article
40 of the Indian Constitution. The article languished as a dead letter for many years until being
resurrected in 1959 as part of the Balwantrai Mehta Study Team Report. The team had envisioned,
among other things, directly elected Panchayats for a village or a group of villages, a block-level
executive body called Panchayat Samiti with directly elected and co-opted members, and a district-
level advisory body called Zilla Parishad with an ex-officio member from the lower tier and others,
as well as the Collector as Chairman .

The 73rd and 74th Constitution Amendment Acts gave local governments a boost. However,
certain attempts in the direction of building local government entities had already been made prior
to then. The Community Development Programme, launched in 1952, was the first of its kind,
with the goal of encouraging people to participate in local development via a variety of activities.
In light of this, a three-tier Panchayati Raj local government structure was proposed for rural
regions. Around 1960, several states (such as Gujarat and Maharashtra) embraced the elected local
government system. However, in many states, such local authorities lacked the necessary authority
and functions to oversee local growth. They were heavily reliant on state and federal governments
for financial support. Many states did not believe it was essential to create elected municipal
governments. Local bodies were disbanded in many cases, and local authority was turned over to
government officials. Most municipal bodies in several states were elected indirectly. Elections to
local governments were postponed on a regular basis in various states.

After 1987, a detailed examination of the operation of local government entities began. The
P.K.Thungon Committee proposed that local government entities be granted constitutional
legitimacy in 1989. It was suggested that the constitution be amended to allow for periodic
elections to local government institutions, as well as the recruitment of adequate functions and
finances for them.
 Chapter-3

INDIA'S GROWTH OF LOCAL GOVERNMENT

Let's take a look at the growth of Indian local government and what our Constitution says about it.
From ancient times, India is considered to have had self-governing village communities called
as'sabhas' (village assemblies). Over time, these village bodies developed into Panchayats (five-
person assemblies), which resolved local disputes. Their roles and responsibilities altered at
different points throughout time.

Local government bodies with elected members were founded after 1882. Lord Rippon, the
Viceroy of India at the time, was in charge of forming these organisations. Their term was "local
boards." However, as a consequence of the poor growth in this region, the Indian National
Congress has requested that the government take the necessary measures to make all local
governments more efficient. After the Government of India Act 1919, village panchayats were
established in a number of provinces. This trend continued with the Government of India Act in
1935.

Throughout India's independence fight, Mahatma Gandhi pushed for the decentralisation of
economic and political authority. Strengthening rural panchayats, he believed, was an excellent
method to decentralise. All development programmes must entail engagement from the local
community in order to be effective. As a consequence, panchayats have come to be seen as vehicles
for decentralisation and participatory democracy. Our national movement was alarmed by the
massive concentration of power in the Governor General's hands in Delhi. As a consequence, our
leaders saw independence as assuring decentralisation of decision-making, executive, and
administrative powers.

When the Constitution was written, the question of local government was assigned to the states.
Because it was listed in the Directive Principles as one of the policy instructions to all governments
in the nation, this article of the Constitution was non-justiciable and largely advisory. This
constitutional clause was cited as one of the policy instructions to all administrations in the nation
as part of the Directive Principles of State Policy.
The Constitution is believed to have given inadequate emphasis to local government, notably
panchayats. What went wrong? This might be due to a variety of factors. To begin with, Partition's
constitutional turmoil led in a strong unitary inclination. Extreme localism was a danger to the
nation's unity and integration, according to Nehru. Second, a powerful voice in the Constituent
Assembly, headed by Dr. B.R. Ambedkar, thought that rural society's factionalism and casteism
would undermine the noble purpose of rural local government.

Nobody can dispute the importance of public participation in development planning, however.
Many members of the Constituent Assembly wanted Village Panchayats to be the bedrock of
Indian democracy, but many were concerned about factionalism and other issues in the villages.
 Chapter-4
73RD AND 74TH AMENDMENTS

Two constitutional changes were proposed by the federal government in 1989. These reforms
attempted to strengthen local governments and ensure that their structure and operation were
consistent throughout the nation.
The 74rd and 73th constitutional amendments were ratified by Parliament later in 1992. “Rural
local governments (also known as Panchayati Raj Institutions)”3 are covered by the 73rd
Amendment, whereas urban local governments are covered by the 74th Amendment
(Nagarpalikas). In 1993, the 73rd and 74th Amendments were ratified.
Local governance is a 'State topic,' as we said previously. States are allowed to enact their own
legislation in this area. However, after the Constitution was revised, the states were required to
update their local government legislation to bring them into compliance with the new Constitution.
They were given a year to make the required revisions to their respective state legislation in light
of the amendments.

73rd Amendment

The 73rd Constitution Amendment Act was signed into law in 1992, and it went into force on
April 24, 1993. The Act empowered state governments to take the steps required to legalise Gram
Panchayats and allow them to act as self-governing entities. The Indian Constitution received a
new Part-IX as a result of this measure. 'The Panchayats' is the title of this section, which comprises
provisions from Articles 243 to 243 O. A new Eleventh Schedule was also created to the
Constitution as a result of the measure. There are 29 panchayat functional items in this schedule.
Article 243-G is the subject of this discussion.

73rd Amendment Act of 1992 – Goal and roll

1. The 73rd Amendment's principal goal was to democratically decentralise authority and
resources from the centre to elected representatives at lower levels, allowing everyone to
engage more directly in governance.

3
Sastry CBSE, 'Social Science Class 10 Important Questions Political Science Chapter 2 Federalism' (Learn CBSE,
2022) Social Science Class 10 Important Questions Political Science Chapter 2 Federalism - Learn CBSEaccessed 15
January 2022.
 2. The 73rd Amendment seeks to amend Article 40 of the constitution, which mandates that
the state create village panchayats and offer them the essential rights and authority to allow
them to function as self-governing bodies.

3. This article is based on the DPSP's Gandhian Principle, which advocated for grassroots
politics, or individuals making their own decisions.
4. Gandhiji argued for a third level of governance that could comprehend the issues of the
people at the grassroots level.

the 73rd Amendment Act of 1992 Constitutional Provisions

1. 73rd Amendment Act of 1992, which went into effect on April 24, 1993, gave local
governments constitutional backing.

2. This amendment added the 11th schedule to the constitution, which comprised 29
Panchayat-related subjects.

3. Part IX of the Constitution was also introduced by this legislation, which includes
provisions from Articles 243 to 243O.

4. This amendment imposed a constitutional requirement on state governments to implement

the new Panchayati Raj system in conformity with the act's terms.

Salient Features of the 73rd Amendment Act:

Gram Sabha: The Panchayati Raj System was founded on the Gram Sabha, which comprised of
persons who were enrolled on the electoral lists of the village within the Panchayat's jurisdiction.

A three-tiered structure:Every state had a three-tier panchayat system, with panchayats at the
village, intermediate, and district levels, bringing uniformity to the organisation of Panchayati Raj
institutions across the country.

chairpersons and Members are elected. :Members of Panchayats at the village, intermediate,
and district levels are directly elected by the people, whereas the chairman of the Panchayat at the
intermediate and district levels is indirectly elected from among the elected members.
Seat reservations :Every panchayat provides seats for SC and ST in proportion to their population.
There is also a provision for women to be allocated 1/3 of the total number of seats. The state
legislature has the authority to create any provision for backward class reservation in Panchayats
at any level.
Panchayat's duration :At every level, panchayats have been given a five-year term of office. It
can, however, be disbanded before its tenure expires. If a panchayat is elected after a panchayat
has been dissolved, it will serve for the remainder of the term for which the State Election
Commission dissolved the panchayat would have served if it had not been dissolved.

Election Commission of the State:The state election commission was established and given
numerous responsibilities, including supervising, directing, and controlling the production of
electoral registers. The state electoral commission would also be in charge of conducting
Panchayat elections.

Finance Commission: The governor appoints a finance panel to examine the Panchayats' financial
situation. The governor should select the principles that should regulate the division of revenues
between the state and the Panchayats, according to this commission's recommendations. It also
defines what taxes, charges, tolls, and fees Panchayats can be charged.
The state legislature establishes the legislation governing the management of accounts by
Panchayats and the auditing of such accounts..

Panchayats' Powers and Functions :The state legislature bestows authorities and functions to
the Panchayats. For the people of the Panchayats, the Panchayats design a strategy for economic
growth and social justice. It carries out the Central and State governments' plans for the welfare of
the people on the ground. Panchayats have the authority to improve job opportunities and carry
out development projects in their areas.

Finances: Authorize a panchayat to levy and collect taxes, duties, duties, and fees; assign to the
Panchayat taxes, duties, duties, and fees levied and collected by the state government; provide
grants-in-aid to the Panchayats from the state's consolidated fund; and provide for the
establishment of funds to credit all money of the Panchayats.

Accounts Audit :The keeping and auditing of panchayat accounts can be regulated by state
legislatures.
Application to Union Territories :The requirements of this Part apply to all Union territory. The
president, on the other hand, has the authority to identify and direct any exception or change that
is necessary.
Subjects are transferred.
Transfer of Subjects:The Eleventh Schedule of the Constitution identifies and lists twenty-nine
issues that were previously on the State list of subjects. The Panchayati Raj institutions will take
up these subjects. The majority of these topics were related to local development and welfare
functions. The exact transfer of these powers is determined by state law. Each state selects how
many of these twenty-nine issues will be delegated to local governments. In several Indian states,
the provisions of the 73rd amendment were not made applicable to territories inhabited by Adivasi
people. A new statute was introduced in 1996 that extended the Panchayat system's provisions to
these territories. Traditional Adivasi norms for managing communal resources such as forests and
tiny water reservoirs, for example, exist in many Adivasi communities. As a result, the new law
safeguards these communities' rights to manage their resources in ways that are acceptable to them.
More powers are provided to the Gram Sabhas in certain regions for this reason, and elected village
panchayats must obtain the Gram Sabha's agreement in many cases. The aim behind this legislation
is that local self-government traditions should be preserved as contemporary elected entities are
introduced. This is entirely compatible with the idea of decentralisation and variety.

States and Territories Exempted: Nagaland, Meghalaya, and Mizoram, as well as a few other
states, are exempt from the legislation. The states' scheduled areas and tribal territories; Manipur's
hill areas with district councils; and West Bengal's Darjeeling district with the Darjeeling Gorkha
Hill Council are among these locations. The requirements of this Part may, however, be extended
to scheduled areas and tribal regions, subject to the exclusions and changes prescribed by
Parliament. Under this clause, the Parliament passed the "Provisions of the Panchayats Extension
to Scheduled Areas Act," popularly known as the PESA Act or the Extension Act, in 1996.

Maintaining Current Laws and Panchayats: All state legislation relating to panchayats will
continue in effect for one year after this act takes effect. In other words, within one year after the
legislation's implementation on April 24, 1993, states must adopt the new Panchayati Raj System
based on the statute. All panchayats that existed before to the implementation of the legislation,
however, will remain until the end of their tenure, unless the state legislature dissolves them
sooner. As a result of the 73rd Constitutional Amendment Act of 1992, the majority of states
approved Panchayati Raj Acts in 1993 and 1994.
Court Interference in Electoral Matters is Prohibited :The statute makes it illegal for judges to
intervene in panchayat elections. It proclaims that no court can rule on the legality of any statute
pertaining to the delimitation of constituencies or the distribution of seats to such constituencies.
It further stipulates that no panchayat election may be disputed unless it is supported by an election
petition filed with the relevant authorities and in the manner authorised by the state legislature.

Compulsory and Voluntary Provisions of the 73rd Amendment Act of 1992

The act's mandatory clauses

1. The chairman and other members of a panchayat elected directly or indirectly have voting
powers.
2. The term of the Panchayats has been set at five years, with new elections to be held within
six months if any panchayat is superseded.
3. All Panchayat seats are decided by direct election.
4. The minimum age to run in a Panchayat election has been set at 21.
5. Chairmanships are elected indirectly at the intermediate and district levels.
6. Village, Intermediate, and District Panchayats are the three tiers of government.
7. Reservation of seats for SC-STs (based on population) and women (one-third of the
population)
8. Fromatition of Gram Sabha in villages
9. At all three levels, seats are reserved for SC & ST (based on population) and women (1/3rd
seats).
10. The Panchayats will serve for a period of five years.
11. Every five years, a State Finance Commission is established to assess the financial situation
of Panchayats.
12. Establishment of a State Election Commission to oversee panchayat elections.

The act's voluntary clauses

1. To give MPs and MLAs representation in Panchayats at various levels within their
constituency.
2. To give Backward classes reservation in Panchayats at all levels.
3. To give Panchayats power and jurisdiction so that they can act as self-governing
entities.
4. To give Panchayats financial authority and are authorised to charge, collect, and
allocate taxes, duties, and other fees.
5. Giving the Gram Sabha authority and functions at the local level.
 6. Choosing the process for choosing the chairperson of the village panchayat.
7. Giving village panchayat chairpersons participation in intermediate panchayats or
district panchayats in the absence of intermediate panchayats in a state.
8. To give representing for chairpersons of district panchayats in intermediate
panchayats
9. Members of Parliament (both Houses) and state legislatures (both Houses) are
represented at various levels in panchayats that fall within their constituency.
10. Reservation of seats (both members and chairpersons) for backward classes in
panchayats at all levels.
11. Giving panchayats with the necessary capabilities and authority to act as self-
governing organisations (in brief, making them autonomous bodies).
12. To give Panchayats more powers and duties to establish plans for economic growth
and social justice, as well as to undertake some or all of the 29 activities stated in the
Constitution's Eleventh Schedule.
13. Providing financial powers to panchayats, such as the ability to charge, collect, and
appropriate taxes, levies, tolls, and fees.
14. The state government assigns a panchayat to collect taxes, charges, tolls, and fees.
15. Using the state's consolidated revenue to make grants-in-aid to panchayats.
16. Providing for the creation of a fund to credit all panchayat finances.

Eleventh Schedule:
Following 29 functional items are placed within the purview of panchayats as defined by the
amendment:

1. “Agriculture, including agricultural extension

2. Land improvement, implementation of land reforms, land consolidation, and soil
conservation
3. Minor irrigation, water management, and watershed development
4. Animal husbandry, dairying, and poultry
5. Fisheries
6. Social forestry and farm forestry
7. Minor forest produce
8. Small-scale industries, including food processing industries
9. Khadi, village, and cottage industries
10. Rural housing
11. Drinking water
 12. Fuel and fodder
13. Roads, culverts, bridges, ferries, waterways, and other means of communication
14. Rural electrification, including distribution of electricity
15. Non-conventional energy sources
16. Poverty alleviation program
17. Education, including primary and secondary schools
18. Technical training and vocational education
19. Adult and non-formal education
20. Libraries
21. Cultural activities
22. Markets and fairs
23. Health and sanitation including hospitals, primary health centers, and dispensaries
24. Family welfare
25. Women and child development
26. Social welfare, including the welfare of the handicapped and mentally retarded
27. The welfare of the weaker sections, and in particular, of the scheduled castes and the
scheduled tribes
28. Public distribution system
29. Maintenance of community assets”4

Issues with the 73rd Amendment Act's Implementation

• The Amendment's most serious problem is the lack of funding for PRIs.
• Local governments may pay their activities with either local taxes or
intergovernmental transfers.
• The performance of the Panchayat was further damaged by the involvement of local
MPs and MLAs in its operations.
• The 73rd Amendment only mandated the creation of local self-governing
organisations, leaving state legislatures with the authority to distribute powers, duties, and
funds; this is where PRIs failed.

4
Constitutional (73rd Amendment) act of 1992,art 243
 • The state government must clearly grant the ability to tax even for matters that are
not covered by PRIs. The 73rd Amendment left this up to state legislatures to decide—a
choice that most have yet to make.
• PRIs also have structural weaknesses that impede the aggregation of bottom-up
planning, such as a lack of secretarial assistance and technical skills.
• Despite the fact that women and SC/STs have received representation in PRIs as a
result of the 73rd amendment's reservation requirement, PanchPati and proxy
representation are present in the cases of women and SC/STs representatives, respectively.

4.1
74th Constitutional Amendment Act of 1992
Introduction

The 74th Amendment Act of 1992 establishes a foundation for decentralising rights and
authority to municipal organisations at various levels. The States, on the other hand, are in
charge of giving it a realistic form.

In India, the phrase 'Urban Local Government' refers to the people's government of an
urban region via their elected representatives. An urban local government's authority is
confined to a certain urban region that is delineated for this purpose by the state
government.
• The 74th Amendment Act created a new Part IX-A of the Indian Constitution.
• 'The Municipalities' is the title of this section, which contains provisions from
Articles 243-P to 243-ZG.
• A new Twelfth Schedule was also created to the Constitution as a result of the
legislation. This schedule covers 18 municipal functional items.
• Municipalities are now covered by the justiciable section of the Constitution as a
result of the Act.
• In other words, state governments are required by the Constitution to implement
the new municipal system in line with the act's requirements [Article 243 Q].
• The legislation intends to revitalise and enhance city governments so that they can
serve as effective local government institutions.

History
The 65th Constitutional Amendment Bill (Nagarpalika bill) was tabled in the Lok Sabha by the
Rajiv Gandhi administration in 1989. By providing constitutional standing on municipal
authorities, the law attempted to strengthen and modernise them.
Despite being approved by the Lok Sabha, the bill was rejected in the Rajya Sabha in October
1989 and therefore expired. In September 1990, the National Front government, led by V P Singh,
reintroduced the updated Nagarpalika Bill in the Lok Sabha. The bill, however, did not pass and
expired as a result of the Lok Sabha's dissolution. In September 1991, P V Narasimha Rao's
government proposed the amended Municipalities Bill in the Lok Sabha. It was ultimately enacted
as the 74th Constitutional Amendment Act of 1992 on June 1, 1993.

The Development of Urban Bodies

During the British reign in contemporary India, the institutions of urban local government
arose and evolved. The following are the important events in this context:

• The first municipal corporation in India was established at Madras in 1687-88.

• Municipal corporations were established in Bombay and Calcutta in 1726.
• The emergence of local self-government organisations was visualised in Lord
Mayo's Resolution on financial decentralisation from 1870.
• The 1882 Resolution of Lord Ripon has been dubbed the "Magna Carta" of
municipal self-government. In India, he is known as the "Father of Local Self
Government."
• In 1907, the Royal Commission on Decentralization was established, and its report
was delivered in 1909. Hobhouse served as the organization's chairman.

• Local self-government became a transferred topic under the supervision of a

responsible Indian minister under the dyarchical arrangement created in Provinces by the
Government of India Act, 1919.
• The Central Assembly established the Cantonments Act in 1924.
• Local self-government was deemed a provincial issue by the Government of India
Act, 1935, which established the provincial autonomy plan.

The 74th Amendment Act of 1992 features.

The following were the principal provisions adopted by the aforementioned Act:-
Constitution of Municipalities
The Act establishes three different kinds of municipalities, based on the size and territory of each
state.
• Municipal Corporation for a bigger urban area;
• Municipal Council for a smaller urban area;
• Nagar Panchayat (for an area in transition from rural to urban);

Municipalities' composition
1. Direct elections will be used to fill the seats. Each municipal region will be split into
territorial constituencies known as wards for this purpose.
2. The way in which a municipality's chairman is elected may be determined by the state
legislature.
3. It may also ensure that the following individuals are represented in a municipality.
1. Persons with unique expertise and experience in municipal administration who do
not have the right to vote at municipal meetings.
2. Members of the Lok Sabha and state legislatures that represent seats that include
the municipal area in whole or in part.
3. Within the municipal area, members of the Rajya Sabha and the State Legislative
Council registered as voters.
4. Committee chairpersons are someone who are in charge of a group of people (other
than ward committees).

Wards Committees.
Ward Committees must be formed in all municipalities having a population of 3 lakhs or more,
according to this law.

Seat reservations
The Act mandates that seats be reserved for scheduled castes and scheduled tribes in every
municipality based on their population percentage to the overall population of the municipality.
It also stipulates that at least one-third of the total number of seats be designated for women
(including the number of seats reserved for women belonging to the SCs and the STs). The state
legislature may establish a method for reserving chairpersonships in municipalities for SCs, STs,
and women.It may also create any provision for the reservation of seats or chairpersonships in
municipalities for members of the backward classes.

Duration of Municipalities
From the date of its first meeting, the municipality has a set term of 5 years. Elections to form a
municipality must be performed before the municipality's term expires.If the municipality is
dissolved before the 5-year term has expired, the elections to form a new municipality must be
conducted within 6 months of the date of dissolution.Municipalities'

Powers and Functions

Powers and Functions All municipalities would be given the authorities and duties they need to
operate as efficient self-government organisations.The State Legislature may establish by law what
authorities and obligations the municipalities will have in developing plans for economic growth
and social justice, as well as implementing schemes entrusted to them. The Twelfth Schedule of
the Constitution contains an example list of duties that may be given to municipalities.

Municipalities' Finances
It is the responsibility of a state's legislature to establish by law topics connected to the levy of
taxes. Such law may specify::
1. Taxes, duties, fees, and other charges that may be imposed and collected by municipalities
in accordance with state legislation.
2. Taxes, charges, fees, and other levies that the state government would levy and collect,
with a portion of the proceeds going to the municipalities.
3. The state would provide a grant-in-aid to the municipalities. Constitution of funds for the
Municipality's crediting and withdrawal of cash.

Finance Commission
The Finance Commission, which was constituted under Article 243-I to look into the finances of
Panchayati Raj Institutions, will now look into the finances of municipalities and make
recommendations to the Governor. The following are some of the ideas made by the Finance
Commission:
1. Allotment of a portion of the earnings to municipalities at all levels of government in the
state.
2. Municipalities determine the taxes, charges, tolls, and fees that will be apportioned or
appropriated.
 3. The net earnings of the state's taxes, charges, etc are to be distributed between the state
government and municipalities.
4. Grants-in-aid from the State's Consolidated Fund to municipalities.Municipalities must
take steps to improve their financial situation.
The governor must provide the commission's recommendations, as well as the action taken report,
to the state legislature.

Elections to Municipalities
The State Election Commissions are in charge of supervising, directing, and controlling the
production of electoral rolls for, and the conduct of, all elections to panchayats and municipalities.

Accounts and Audit :Municipal accounting must be kept up to date, and additional audits must
be performed in compliance with state legislation. State legislatures shall be allowed to establish
suitable laws in this respect, based on local requirements and available institutional structure.

District Planning Committee:

Every state must establish a district planning committee at the district level to aggregate the plans
developed by panchayats and municipalities in the district and to generate a district-wide
development plan. The Zila Parishad is in charge of planning and allocating resources for
Panchayati Raj institutions at the district level.

Metropolitan Planning Committees: A metropolitan planning committee is required in every

metropolitan region to create a draught development plan.

Existing Laws and Municipalities to be Continued:

All state legislation related to municipalities must remain in effect for one year from the date of
enactment of this act.
In other words, states must implement the new municipal system based on this legislation within
one year of the date of its enactment, which is June 1, 1993.
All municipalities that existed before to the passage of this act will continue to exist until their
terms expire, unless the state legislature dissolves them sooner.

Interference by Courts in Electoral Matters is Prohibited

The statute prohibits judges from interfering in municipal election affairs.
It declares that no court can rule on the validity of any act relating to the delimitation of
constituencies or the distribution of seats to such constituencies.
 It goes on to say that no election to any municipality may be disputed unless an election
petition is filed with the proper authorities and in the manner authorised by the state
legislature.

Urban Governments
For the management of urban regions, India has formed the following eight categories of urban
local bodies:

Municipal government
Notified Area Committee of the Municipality
1. Town Area Committee
2. Port Trust
3. Township
4. Cantonment Board
5. Municipal corporation
6. Notified Area Committee
7. Municipality
8. Special Purpose Agency

municipal personnel systems:

In India, there are 3 kinds of municipal personnel systems. Personnel employed by city
administrations may fall into one of three categories. These are the following:

1. Integrated Personnel System

2. Separate Personnel System
3. Unified Personnel System

Municipal Revenue : The urban municipal governments have five sources of revenue. The
following are some of them:
1. Loans
2. Non-Tax Revenue Grants
3. Non-Tax Revenue
4. Tax Revenue
5. Devolution

These basic urban functions are as defined by the ammemendent:

“(1) Urban planning including town planning
(2) Regulation of land use and construction of buildings
(3) Planning for economic and social development
(4) Roads and bridges
(5) Water supply for domestic, industrial and commercial purposes
(6) Public health, sanitation, conservancy and solid waste management
(7) Fire services
(8) Urban forestry protection of the environment and promotion of ecological aspects
(9) Safeguarding the interests of weaker sections of society including the handicapped and
mentally retarded
(10) Slum improvement and up gradation
(11) Urban poverty alleviation
(12) Provision of urban amenities and facilities such as parks, gardens, playgrounds
(13) Promotion of cultural, educational and aesthetic aspects
(14) Burials and burial grounds, cremations grounds and electric crematoriums
(15) Cattle ponds, prevention of cruelty to animals
(16) Vital statistics including registration of births and deaths
(17) Public amenities including street lighting, parking lots, bus stops and public conveniences
(18) Regulation of slaughter houses and tanneries.”5

5
THE CONSTITUTION (SEVENTY-FOURTH AMENDMENT) ACT, 1992 ,Art 243 W
 Conclusion
This indicates that local governments will continue to be entities that carry out the national and
state governments' welfare and development plans. At the end of the day, democracy implies that
power should be shared among the people; people in rural and metropolitan areas should be able
to choose the policies and programs they wish to implement. Democracy, as you may recall, entails
the decentralization of authority and the transfer of increasing amounts of power to citizens. Local
government legislation is a significant step towards democratization. The actual measure of
democracy, however, is not in the law provisions themselves, but in how they are implemented.

Suggestions:

1. Capacity building and mobilization to ensure proper operation.

2. Establishing a separate personnel department at the local government level.

3. Autonomy in making quick decisions.

4. Authorization of development plans as soon as possible.

5. Giving grama Sabha additional authority.

6. Providing financial independence.

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'Municipalities (Article 243P- 243ZG) - 74Th CAA | UPSC Polity Notes' (BYJUS) Municipalities (Article 243P-

243ZG) - 74th CAA | UPSC Polity Notes (byjus.com) accessed 25 January 2022
NCERT, Indian Constitution At Work (1st edn, National Council of Educational Research and Training 2018)
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Polity notes (prepp.in)accessed 25 January 2022