Q. Consider the following statements:

  1. Panchayats at the intermediate level exist in all States.
  2. To be eligible to be a Member of a Panchayat at the intermediate level, a person should attain the age of thirty years.
  3. The Chief Minister of a State constitutes a commission to review the financial position of Panchayats at the intermediate level and to make recommendations regarding the distribution of net proceeds of taxes and duties, leviable by the State, between the State and Panchayats at the intermediate level.

Which of the statements given above are not correct?

  • 1 and 2 only
  • 2 and 3 only
  • 1 and 3 only
  • 1, 2 and 3

Answer: (d) 1, 2 and 3

Notes:
  • The three-tier Panchayati Raj system, established by the 73rd Amendment of the Indian Constitution, is a decentralized governance structure that empowers local communities.
  • Part IX of the Indian Constitution is the section of the Constitution relating to the Panchayats. It stipulates that in states or Union Territories with more than two million inhabitants there are three levels of PRIs:
    • Gram Panchayat at the village level,
    • Panchayat Samiti (or Block Samiti) at the intermediate level, and
    • Zila Parishad at the district level.
  • As per the Constitution of India, Panchayats at the intermediate level may not be constituted in a state having a population not exceeding twenty lakhs.
    • Article 243B of the Constitution of India deals with the constitution of Panchayats. It mandates that Panchayats at village, intermediate, and district levels must be established in every state.
      • However, the intermediate level may be omitted in states with a population not exceeding 20 lakhs.
  • This system brings uniformity to local governance, ensuring that all states have a structured framework for local self-government.
  • All members of these three levels are elected, and the chairpersons of the intermediate and district levels are indirectly elected by the members from among themselves.
    • But at the village level, the election of chairperson of Panchayat (Sarpanch) may be direct or indirect as provided by the state in its own Panchayati Raj Act.
  • Article 243F makes provisions for disqualifications from the membership. As per this article, any person who is qualified to become an MLA is qualified to become a member of the Panchayat, but for Panchayat the minimum age prescribed is 21 years.  Further, the disqualification criteria are to be decided by the state legislature by law.
  • Finance Commission:
    • The State Finance Commission (SFC) in India is formed by the Governor of the State. This is mandated by Article 243-I of the Indian Constitution.
      • The Governor appoints the SFC every five years, which reviews the financial position of Panchayati Raj Institutions and Urban Local Bodies, and makes recommendations to the Governor.
    • State Government needs to appoint a finance commission every five years, which shall review the financial position of the Panchayats and to make recommendation on the following:
      • The Distribution of the taxes, duties, tolls, fees etc. levied by the state which is to be divided between the Panchayats.
      • Allocation of proceeds between various tiers.
      • Taxes, tolls, fees assigned to Panchayats
      • Grant in aids.
    • This report of the Finance Commission would be laid on the table in the State legislature. Further, the Union Finance Commission also suggests the measures needed to augment the Consolidated Funds of States to supplement the resources of the panchayats in the states.
  • State Government can make provisions for audit of accounts of the Panchayats.
  • Exempted areas and states: The provisions of part IX are not applicable to the following:
    • Entire states of Nagaland, Meghalaya and Mizoram
    • Hill areas in the State of Manipur for which District Councils
    • Further, the district level provisions shall not apply to the hill areas of the District of Darjeeling in the State of West Bengal which affect the Darjeeling Gorkha Hill Council.
    • The reservation provisions are not applicable to Arunachal Pradesh.
Salient Features of the Constitution 73rd and 74th Amendments?
  • These amendments added two new parts to the Constitution, namely, added Part IX titled “The Panchayats” (added by 73rd Amendment) and Part IXA titled “The Municipalities” (added by 74th Amendment).
  • Basic units of democratic system-Gram Sabhas (villages) and Ward Committees (Municipalities) comprising all the adult members registered as voters.
  • Three-tier system of panchayats at village, intermediate block/taluk/mandal and district levels except in States with population is below 20 lakhs (Article 243B).
  • Seats at all levels to be filled by direct elections Article 243C (2).
  • Seats reserved for Scheduled Castes (SCs) and Scheduled Tribes (STs) and the chairpersons of the Panchayats at all levels also shall be reserved for SCs and STs in proportion to their population.
  • One-third of the total number of seats to be reserved for women.
  • One third of the seats reserved for SCs and STs also reserved for women.
  • One-third offices of chairpersons at all levels reserved for women (Article 243D).
  • Uniform five year term and elections to constitute new bodies to be completed before the expiry of the term.
  • In the event of dissolution, elections compulsorily within six months (Article 243E).
  • Independent Election Commission in each State for superintendence, direction and control of the electoral rolls (Article 243K).
  • Panchayats to prepare plans for economic development and social justice in respect of subjects as devolved by law to the various levels of Panchayats including the subjects as illustrated in Eleventh Schedule (Article 243G).
  • 74th Amendment provides for a District Planning Committee to consolidate the plans prepared by Panchayats and Municipalities (Article 243ZD).
  • Budgetary allocation from State Governments, share of revenue of certain taxes, collection and retention of the revenue it raises, Central Government programmes and grants, Union Finance Commission grants (Article 243H).
  • Establish a Finance Commission in each State to determine the principles on the basis of which adequate financial resources would be ensured for panchayats and municipalities (Article 243I).
  • The Eleventh Scheduled of the Constitution places as many as 29 functions within the purview of the Panchayati Raj bodies.