Constitutional Framework (73rd Amendment Act, 1992)

• Inserted Part IX (Articles 243–243O) into the Constitution.
• Established a three-tier system of rural local self-governance:
  • Gram Panchayat (village level)
  • Panchayat Samiti (block/intermediate level)
  • Zila Parishad (district level)
• As per Article 243B, the intermediate-level Panchayat is not mandatory in states with population ≤ 20 lakh.
• Elections are to be conducted every 5 years; if dissolved, re-election within 6 months.
• Minimum age to contest: 21 years, applicable at all three levels.
• Applicable in all states except:
  • Nagaland, Meghalaya, Mizoram,
  • Tribal areas under Sixth Schedule,
  • Certain hill/tribal regions through state-specific laws.

Composition, Elections & Reservation

• All members of Panchayats at all levels are elected directly.
• Provisions for reservation:
  • Seats and chairperson posts reserved for SCs and STs proportionate to their population.
  • At least one-third reservation for women, including chairpersons.
  • States may increase women’s quota beyond one-third (many have 50%).
• Panchayats may be dissolved or members removed/suspended according to state laws, subject to constitutional safeguards.
• State Election Commission (SEC) conducts Panchayat elections independently.

Powers, Functions & Finances

• Panchayats prepare plans for economic development and social justice.
• Responsible for implementing schemes related to:
  • Agriculture, minor irrigation, animal husbandry
  • Rural housing, drinking water, roads
  • Education, health, sanitation
  • Poverty alleviation, women and child development
• Eleventh Schedule lists 29 subjects that may be devolved to PRIs.
• State Finance Commission (SFC)—constituted every 5 years by the Governor—recommends:
  • Tax sharing between state and Panchayats
  • Grants-in-aid
  • Measures to strengthen PRI finances
• Panchayats can levy, collect and appropriate taxes, duties, tolls and fees as empowered by state law.

Challenges Faced by PRIs

• Insufficient financial resources and dependence on state/central grants.
• Incomplete devolution of the “3Fs”: Functions, Funds, and Functionaries.
• Weak technical and administrative capacity at Panchayat level.
• Limited participation of women, SCs, STs and marginalised groups despite reservations.
• Political interference in functioning, fund allocation and appointments.
• Poor coordination with district administration and line departments.
• Weak access to information, data, technology, affecting planning and implementation.
• Poor quality of Gram Sabha functioning in many states.

Strengthening PRIs – Key Recommendations

Second Administrative Reforms Commission (2nd ARC)

• Increase financial autonomy through higher devolution and predictable transfers.
• Clear functional devolution with activity mapping and accountability.
• Establish a National Institute for Panchayat Leadership and Training for capacity building.
• Improve representation and leadership of women and disadvantaged groups through training and support systems.
• Protect PRIs from arbitrary political interference; ensure stability and autonomy.
• Strengthen coordination between PRIs, district administration and state departments.

Additional Reforms

• Expand untied funds; allow Panchayats to generate own revenue.
• Enhance transparency and accountability through social audits, public disclosure, and e-governance.
• Promote women’s leadership through mentoring, safety, mobility support and leadership training.
• Address caste/religion/poverty-based barriers to meaningful participation.
• Improve technical support, digital tools, planning systems, and professional staff availability.