(Indian Polity) Local Government - Compulsory and Voluntary Provision of Acts

Local Government


Compulsory Provision of the Act

  • Organisation of Gram Sabha ;
  • Creation of a three-tier Panchayati Raj Structure at he district, block and Village levels;
  • All the Seats in a Panchayat shall be filled by persons Chosen by direct elections from territorial Constituencies in the Panchayat area;
  • The minimum age for contesting elections to Panchayats to be 21 years.
  • Reservation for Women in Panchayats up to 33%
  • Reservation of Seats for SC/ST, in Panchayats, in proportion to their population;
  • Creation of a State Election Commission to conduct elections.
  • Fixed 5 years tenure of Panchayats.
  • Each State is to Constitute a State Finance Commission every five years to review the financial position of the Panchayat.

Voluntary Provision of the Act


1. Giving Voting rights to members of the Union and State Legislatures in these bodies;
2. Providing reservation for backward Classes.
3. Giving the Panchayats financial autonomy and thereunder the power to levy taxes, fees, etc.
4. Devolution of Powers to the Panchayat bodies to perform functions as provided in the XI Schedule.

Features of the Act


Gram Sabha (243A): The Gram Sabha is the body Consisting of persons registered in the electrical rolls relating to a village Comprised within the area of a Panchayat. This meets twice a year and it Shall exercise such Powers and perform Such functions as the legislature of a State determines. Clause 243A provides that Gram Sabha may exercise such powers and perform such functions at the Village level as the Legislature of a State may, by law, Provide.

Three Tier Systems (243B): The Act envisages a three tier Structure of the Panchayat Government. The Structure envisaged is panchayat at 1) the Village level, 2) the intermediate level, and 3) the district levels. But, in States with a Population not exceeding 20 lakhs, it is not mandatory to have the intermediate level.

Composition of Panchayats (243C): All the members of Panchayats at all levels Shall be elected directly by the people from the territorial constituencies. At the Village level Chairperson of the Panchayat is to be elected in Such manner as the State legislature may determine by the law. But, the Chairperson of Panchayats at the intermediate and district levels shall be elected indirectly by and from amongst the elected members thereof. In addition, the Chairperson of the Village Panchayat (Sarpanch) Can be made member of the Panchayat Samiti, and Some of those the Chairpersons of Panchayat Samitis will be made member of Zila Parishad. The MP, MLA, MLC, Could also be member of Panchayat at the intermediate and the district level.

Reservation of Seats (243D):-

  • SCs and STs: Article 243(D) provides for reservation of Seats at all tiers of Panchayats for SCs and STs in Proportion of their Population to the total Population in the Panchayat area. Further, the State Legislatures Shall Provide for the Reservation of offices of Chairpersons in the Panchayat at the Village or any other level for these Communities.
  • Women: Not less than 1/3rd of the total number of Seats to be filled by direct elections in every Panchayat area Shall be reserved for Women. This Shall include the Seats reserved for the Scheduled Caste and Scheduled Tribe Women. The 110th Constitution Amendment Bill, 2009 Seeks to enhance the limits of above reservations for women, in the Posts of members and Chairpersons, in Panchayats from 33% to 50%.
  • Chairperson: The number of Seats and the number of offices of Chairpersons such reserved, for women, SCs and STs, under this Clause Shall be allotted by rotation to different Panchayats at each level.
  • Backward Classes: The Legislature of a State is also allowed to Make any Provision for reservation of Seats in any Panchayat or Offices of Chairpersons in the Panchayats at any level in favour of backward class of citizens.

Duration of Panchayat (243E): Every Panchayat shall continue for five years from the date of its first meeting. It Can be dissolved earlier in accordance with the procedure prescribed by the State Legislature. In Case it is dissolved earlier then the elections must take place within 6 months of its dissolution.

Qualification (243F): The Qualification is the same as is required for being Chosen as a member of State Legislature. The Only difference is that whereas the minimum age for Contesting election here is 21 years (25 years in Case of State Legislature). If a question arises as to whether a member has become subject to any disqualification, it shall be referred to such authority as the State Legislature may provide by law.

Powers and Functions (243G): The State Legislature have been Conferred the Power to determine as to what powers are to be assigned to the Panchayats to enable them to function as an institution of Self-government. These powers may be with respect to –
a. Preparation and implementation of plans for economic development and Social justice, and
b. matters included in the XI Schedule.

Powers to impose taxes by, and funds of the Panchayats (243H)
The Sources of finance for Panchayats are provided for by the State legislatures, as it may:-
1. Authorize a Panchayat to impose tax, duties, tolls, etc. as may be permitted by the State Act:
2. Assign of taxes, duties, tolls, etc. levied and Collected by the State Government ;
3. Provide grants-in-aid by the State Government;
4. Allocate funds for developmental activity by the Central or State Government.

State Finance Commission (243I): The Act provides that within one year of coming into force of this Act, and thereafter every five years the State Government Shall appoint a State Finance Commission to review the financial position of the Panchayats and suggest different means to augment the Same.

It will make recommendations to the Governor as to:

  1. The Principles governing:-
    • The distribution of the net proceeds of the taxes, duties, tolls and fees leviable by the State, between the State and the Panchayat and among the tiers of Panchayats;
    • the determination of the taxes, duties, tolls and fees which may be assigned to, or appropriated by, the Panchayat;
    • the grants-in-aid to the Panchayats from the Consolidated Fund of the State;
  2. The measures needed to improve the financial position of the Panchayats;
  3. Any other matter referred to the Finance Commission by the Governor in the interests of Sound finance of the Panchayats.

Further, Governor Shall Cause the report of the Commission along with a memorandum of action taken on it, to be laid before the Legislature of the State.
Article (243J)
Provides for audit of accounts of Panchayats.

State Election Commission (243K): The provision has been made to ensure free and fair elections to the Panchayats. It requires the Constitution of a State Election Commission Consisting of a State Election Commissioner to be appointed by the Governor. He can be removed on the same grounds as a Judge of a High Court. Powers of Superintendence, direction and Control of elections to the Panchayats, including preparation of electoral rolls shall est in the State Election Commission.

Bar on interference by Courts (243O): The act bars the interference by Courts in the electoral matters of Panchayats. It declares that the Validity of any law relating to the delimitation of Constituencies or the allotment of seats to such Constituencies Cannot be questioned in any except by an election petition presented to such authority and is such manner as provided by the State legislature.


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