Panchayati Raj Institutions (PRIs)

politicalsciencesolution.com

24 August 2024

“The soul of India lives in its villages. If the village perishes, India will perish too.” _ Mahatma Gandhi

Introduction:

Panchayati Raj Institutions (PRIs) are a cornerstone of local governance in India, officially enshrined in Part IX of the Indian Constitution, spanning Articles 243 to 243O. This structural framework was established by the 73rd Constitutional Amendment Act of 1992, which came into effect on April 24, 1993. The amendment marked a significant shift in India’s approach to decentralized governance by providing constitutional recognition to these rural local self-government institutions.

This pivotal Act introduced the 11th Schedule to the Constitution, which outlines 29 functional items that Panchayats are entrusted with under Article 243 G. Additionally, it incorporated Article 40 of the Directive Principles of State Policy (DPSP), emphasizing the state’s obligation to organize Panchayats and endow them with sufficient powers and authority. This constitutional overhaul effectively granted PRIs a formal status as units of local governance in India.

Evolution of PRIs:

The evolution of Panchayati Raj Institutions has been influenced by several key committees prior to the 73rd Constitutional Amendment Act of 1992. Notable among these are:

Balwant Rai G Mehta Committee:

In January 1957, the Government of India established a committee chaired by Balwant Rai G Mehta to evaluate the Community Development Programme (1952) and the National Extension Service (1953). This committee proposed the concept of ‘democratic decentralization,’ which later evolved into the Panchayati Raj system.

Key recommendations included:

Establishing a three-tier Panchayati Raj system comprising the Gram Panchayat at the village level, the Panchayat Samiti at the block level, and the Zila Parishad at the district level.
The Gram Panchayat would consist of directly elected representatives, while the Panchayat Samiti and Zila Parishad would feature indirectly elected members.
Delegating all planning and development activities to these bodies, with the Panchayat Samiti serving as the executive body and the Zila Parishad acting as the advisory, coordinating, and supervisory body.
The district collector was proposed to chair the Zila Parishad.

The recommendations were endorsed by the National Development Council in 1958.

Rajasthan’s Nagaur district pioneered the establishment of PRIs in 1959, followed by Andhra Pradesh in the same year.

Ashok Mehta Committee:

In December 1977, the Janata Government set up another committee under Ashok Mehta to review the Panchayati Raj Institutions. The committee’s recommendations included:

Transitioning from a three-tier to a two-tier system, comprising the Zila Parishad at the district level and the Mandal Panchayat, which would consist of a group of villages with a total population of 15,000 to 20,000.
Positioning the district as the primary point for decentralization under popular supervision, with the Zila Parishad acting as the executive body responsible for district-level planning.

Following these recommendations, states like Karnataka, West Bengal, and Andhra Pradesh undertook efforts to revitalize Panchayati Raj Institutions.

GVK Rao Committee:

In 1985, the Planning Commission established a committee under the leadership of GVK Rao to assess the existing administrative arrangements for rural development and poverty alleviation programs. The committee highlighted significant issues with Panchayati Raj Institutions (PRIs), noting their gradual bureaucratization and the loss of their democratic essence, coining the term ‘grass without roots’ to describe the situation.

To address these concerns, the GVK Rao Committee proposed several key reforms:

Strengthening PRIs: The Zila Parishad should be central to the scheme of democratic decentralization and should be the primary body responsible for planning and development management.
Enhanced Role at District and Lower Levels: PRIs at various levels should play a crucial role in planning, implementing, and monitoring rural development programs.
Creation of a District Development Commissioner: This role should oversee all development departments at the district level and act as the chief executive officer of the Zila Parishad.
Regular Elections: Ensuring regular elections to Panchayati Raj Institutions to maintain their democratic integrity.

The recommendations of the GVK Rao Committee Report (1986) contrasted with those of the Dantwala Committee Report (1978) and the Hanumantha Rao Committee Report (1984). The latter two committees advocated for a more prominent role for the District Collector in decentralized planning, suggesting that separate district planning bodies be created either under the District Collector or a minister. In contrast, the GVK Rao Committee emphasized strengthening PRIs rather than increasing the role of the Collector.

L M Singhvi Committee:

In 1986, under the Rajiv Gandhi government, the L M Singhvi Committee was appointed to develop a concept paper on the ‘Revitalisation of Panchayati Raj Institutions for Democracy and Development.’ The committee, chaired by L M Singhvi, made several important recommendations:

Constitutional Recognition: PRIs should be constitutionally recognized, protected, and preserved by adding a new chapter to the Constitution of India.
Nyaya Panchayats: Establish Nyaya Panchayats for clusters of villages to handle judicial matters.
Increased Financial Resources: Village Panchayats should be provided with more financial resources to enhance their capabilities.

Thungon Committee:

In 1988, the Consultative Committee of Parliament formed a sub-committee under P.K. Thungon to review the politico-administrative structure in the district for district planning purposes. The Thungon Committee endorsed the following:

Constitutional Status for PRIs: Recognizing the need for PRIs to be granted constitutional status.
Three-Tier System: Recommending the establishment of a three-tier Panchayati Raj system.
Fixed Tenure: PRIs should have a fixed tenure of five years.
Central Role of Zila Parishad: The Zila Parishad should be the focal point in the PRIs system.

Gadgil Committee:

In 1988, the Congress party established the Committee on Policy and Programmes, chaired by V.N. Gadgil, to explore ways to enhance the effectiveness of Panchayati Raj Institutions (PRIs). This committee discussed “how best Panchayati Raj institutions could be made effective”.The committee’s primary focus was to identify strategies for strengthening these local governance bodies.

The Gadgil Committee made several significant recommendations:

Constitutional Status: Granting PRIs constitutional recognition to ensure their stability and legitimacy.
Fixed Tenure: Establishing a fixed tenure of five years for PRIs to ensure continuity and stability.
Direct Elections: Mandating that members at all levels of PRIs be directly elected by the people.
Reservations: Implementing reservations for Scheduled Castes (SCs), Scheduled Tribes (STs), and women to promote inclusivity and representation.
State Finance Commission: Setting up a State Finance Commission to allocate financial resources to PRIs, ensuring adequate funding for their functions.
State Election Commission: Establishing a State Election Commission responsible for conducting elections to PRIs.

The recommendations from the Gadgil Committee laid the groundwork for drafting a bill aimed at providing constitutional status and protection to PRIs.

Attempts to Provide Constitutional Status to PRIs:

Several efforts were made to enshrine the constitutional status of PRIs:

Rajiv Gandhi Government (1989): The first attempt was the 64th Constitutional Amendment Bill was introduced in the Lok Sabha in July 1989. Although it passed in the Lok Sabha, it did not clear the Rajya Sabha due to opposition concerns that it might centralize power and undermine the federal structure.
National Government under V.P. Singh (1990): Another attempt was made by introducing a constitutional amendment bill in the Lok Sabha. However, the bill lapsed due to the fall of the government.
Congress Government under P.V. Narasimha Rao (1992): Ultimately, the Congress government introduced the 73rd Constitutional Amendment Act, which successfully conferred constitutional status on the Panchayati Raj system.

Provisions of the 73rd Constitutional Amendment Act:

The 73rd Constitutional Amendment Act, enacted in 1992, institutionalized Panchayati Raj Institutions in India with the following key provisions:

Obligation on States: The Act required every state to establish rural local self-government within their territories, thereby formalizing the role of PRIs.
Compulsory and Voluntary Provisions: To balance the need for uniformity with state autonomy:
- Compulsory Provisions: These mandatory provisions had to be included in state laws that established the Panchayati Raj system.
- Voluntary Provisions: These allowed states to incorporate additional measures based on local factors such as geography, political dynamics, and administrative needs. This flexibility ensured that the implementation of PRIs could be tailored to suit diverse local contexts.

Features of the 73rd Constitutional Amendment Act

The 73rd Constitutional Amendment Act of 1992 revolutionized local governance in India by providing constitutional status to Panchayati Raj Institutions (PRIs). This Act introduced several significant features designed to empower rural local self-governance and ensure effective decentralization of power.

1. Gram Sabha (Article 243A): The Act establishes the Gram Sabha as the cornerstone of the Panchayati Raj system. The Gram Sabha consists of all individuals registered in the electoral rolls of a village within the Panchayat area. This body serves as a key component in ensuring local participation and decision-making.

2. Three-Tier System (Article 243B): The Act mandates a three-tier Panchayati Raj system at the village, intermediate, and district levels:

Village Panchayat: Operates at the village level.
Intermediate Panchayat: Functions at the block or taluka level.
District Panchayat: Operates at the district level. States with populations not exceeding 20 lakh may opt out of establishing the intermediate tier.

3. Election of Members and Chairpersons (Article 243C):

Members at all levels (village, intermediate, and district) are directly elected by the public.
Chairpersons of intermediate and district panchayats are elected indirectly from among the elected members.
Chairpersons at the village level are elected as per the state legislature’s provisions.

4. Reservation of Seats (Article 243D):

Seats are reserved for Scheduled Castes (SCs) and Scheduled Tribes (STs) in proportion to their population in each panchayat.
Offices of chairpersons are reserved for SCs and STs at various levels.
At least one-third of the total seats and chairperson positions in panchayats are reserved for women.
States can also reserve seats for backward classes.

5. Duration of Panchayats (Article 243E):

Panchayats have a five-year term but can be dissolved earlier.
Elections must be held either before the five-year term expires or within six months of dissolution.
Reconstituted panchayats after premature dissolution serve only for the remaining term.

6. Disqualifications (Article 243F):

Disqualifications for panchayat membership are determined by state laws.
Individuals under 25 years of age may not be disqualified if they are 21 or older.
Disqualification issues are referred to authorities designated by the state legislature.

7. Powers and Functions (Article 243G):

State legislatures may grant powers and responsibilities to Panchayats for planning and implementing economic development and social justice initiatives.
Panchayats handle tasks related to the 29 functional items listed in the Eleventh Schedule, including agriculture, rural housing, and water management.

8. Finances (Article 243H):

Panchayats are authorized to levy and collect taxes, duties, tolls, and fees.
They may also receive assigned taxes and grants from the state government.
Provisions are made for the constitution of funds for panchayat finances.

9. Finance Commission (Article 243I):

The Governor must establish a Finance Commission every five years to review and recommend financial distributions and measures to enhance panchayat finances.
Recommendations include principles for distributing state revenues, determining panchayat taxes, and improving financial positions.

10. Audit of Accounts (Article 243J):

State legislatures are responsible for establishing provisions for the maintenance and auditing of panchayat accounts.

11. State Election Commission (Article 243K):

The State Election Commission oversees the preparation of electoral rolls and the conduct of panchayat elections.
The State Election Commissioner is appointed by the Governor and is protected by conditions similar to those of a High Court judge.

12. Application to Union Territories (Article 243L):

The President may direct that the provisions of the Act apply to any Union Territory with specified exceptions and modifications.

13. Exempted States and Areas (Article 243M):

The Act does not apply to Nagaland, Meghalaya, Mizoram, and certain tribal areas.
Parliament may extend provisions to these areas with modifications.

14. Continuance of Existing Laws and Panchayats (Article 243N):

Existing state laws relating to panchayats remain in force until one year from the Act’s commencement.
States must adopt the new Panchayati Raj system within this period.

15. Bar to Interference by Courts in Electoral Matters (Article 243O):

Courts are barred from interfering in panchayat electoral matters except through specified election petitions.
District and subordinate courts are designated to handle these petitions.

16. Eleventh Schedule:

This schedule lists 29 functions within the purview of Panchayats, including agriculture, land improvement, minor irrigation, animal husbandry, and rural housing.

These features collectively aim to strengthen the Panchayati Raj system, ensuring effective local governance, participatory democracy, and balanced development across rural India.

Compulsory and Voluntary Provisions of the 73rd Constitutional Amendment Act

Compulsory Provisions:

Establishment of Gram Sabha: The Act mandates the creation of a Gram Sabha for each village or a group of villages. This body is fundamental to the Panchayati Raj system and includes all residents registered in the electoral rolls of the village.
Three-Tier Panchayat Structure: Panchayats must be organized at three levels: village, intermediate, and district. This hierarchical structure ensures local governance at multiple tiers.
Direct Elections: The Act requires that all members of panchayats at the village, intermediate, and district levels be elected directly by the electorate, ensuring democratic representation.
Indirect Election of Chairpersons: While members are directly elected, the chairpersons for the intermediate and district panchayats are elected indirectly by the members of those panchayats. For village-level panchayats, the election of the chairperson is determined by state legislation.
Minimum Age Requirement: Candidates must be at least 21 years old to contest elections for panchayats, establishing a minimum age criterion for participation in local governance.
Reservation of Seats for SCs and STs: The Act mandates the reservation of seats for Scheduled Castes (SCs) and Scheduled Tribes (STs) in panchayats at all levels, proportional to their population in the panchayat area.
Reservation of Seats for Women: At least one-third of the total seats and chairperson positions in panchayats are reserved for women. This provision applies to all three levels of panchayats.
Fixed Tenure: Panchayats are to serve a five-year term, with elections required within six months if a panchayat is dissolved before completing its term. This ensures continuity and regularity in local governance.
State Election Commission: A State Election Commission must be established to oversee and conduct elections for the panchayats, ensuring impartiality and regularity in electoral processes.
State Finance Commission: A State Finance Commission must be constituted every five years to review and recommend the financial position and distribution of resources for the panchayats.

Voluntary Provisions:

Representation for Parliament and State Legislature Members: States may choose to include members of Parliament and state legislatures in the panchayats within their constituencies, enhancing representation and coordination between various levels of government.
Reservation for Backward Classes: States have the option to reserve seats for backward classes in panchayats, beyond the mandatory reservations for SCs and STs.
Autonomy of Panchayats: States can grant additional powers and autonomy to panchayats, enabling them to function more effectively as self-governing bodies.
Devolution of Powers: States may devolve specific powers and responsibilities to panchayats, including planning and implementing development and social justice programs, and performing functions listed in the Eleventh Schedule.
Financial Powers: States have the option to provide panchayats with financial powers, allowing them to levy, collect, and manage taxes, duties, tolls, and fees.

PESA Act of 1996 (Extension Act):

Background:

Part IX of the Constitution, which deals with the Panchayati Raj system, does not automatically apply to areas covered under the Fifth Schedule. To address this, Parliament enacted the Provisions of the Panchayats (Extension to the Scheduled Areas) Act, 1996, commonly known as the PESA Act.

Objectives of the PESA Act:

Extension of Provisions: The Act aims to extend the Panchayati Raj provisions to Scheduled Areas with necessary modifications to suit local conditions.
Self-Rule for Tribes: It seeks to provide self-governance for tribal populations, enhancing their ability to manage their own affairs.
Village Governance: The Act promotes participatory democracy by making the Gram Sabha the central institution in village governance.
Administrative Framework: It aims to develop an administrative framework that aligns with traditional practices of tribal communities.
Preservation of Traditions: The Act seeks to protect and preserve the customs and traditions of tribal communities.
Empowerment of Panchayats: It empowers panchayats with specific powers tailored to the needs of tribal areas.
Prevent Overreach: The Act ensures that higher-level panchayats do not override the authority of lower-level panchayats, particularly the Gram Sabha.

Finances of Panchayati Raj Institutions (PRIs):

According to the Second Administrative Reforms Commission (2005-2009), PRIs face several financial challenges. Their revenue sources include:

Central Government Grants: Funds allocated based on recommendations from the Central Finance Commission under Article 280 of the Constitution.
State Government Devolution: Financial resources devolved from state governments according to the recommendations of the State Finance Commission under Article 243-I.
Loans and Grants: Financial assistance from the state government in the form of loans or grants.
Programme-Specific Allocations: Funds for specific programs under Centrally Sponsored Schemes and Additional Central Assistance.
Internal Resource Generation: Revenue generated through local taxes and non-tax sources.

Challenges: Despite these sources, states and the central government often show reluctance in granting full financial autonomy to PRIs. This reluctance hampers the effective implementation of democratic governance at the grassroots level.

Important Amendment: The 83rd Constitutional Amendment Act of 2000 amended Article 243-M to eliminate reservations for Scheduled Castes in Arunachal Pradesh. This change facilitated the conduct of panchayat elections in the state, which had previously not been held under the new system.

Conclusion

Panchayati Raj Institutions (PRIs) have emerged as crucial pillars of local governance in India, fostering grassroots democracy and enabling decentralized decision-making. The constitutional recognition granted by the 73rd Amendment Act of 1992 marked a transformative step in empowering these institutions, ensuring greater participation of marginalized communities, including women, in governance. However, the effectiveness of PRIs depends on continued financial support, capacity-building efforts, and genuine political commitment from both the central and state governments. As PRIs evolve, their role in enhancing rural development and promoting inclusive governance remains indispensable to India’s democratic fabric.