Introduction
Local self-government institutions — rural (Panchayats) and urban (Municipalities) — were given
constitutional status by the 73rd and 74th Constitutional Amendment Acts, 1992, effective
from 24 April 1993. Before this, local bodies existed only as statutory creations of state
governments, with no constitutional guarantee of elections or funds.
73rd Amendment — Panchayati Raj (Part IX, Articles 243-243O)
- Added the Eleventh Schedule (29 subjects that may be devolved to Panchayats).
- Establishes a three-tier system of Panchayats in every state (with a population above 20 lakh, states may skip the intermediate tier).
- Gram Sabha — a body of all registered voters in a village — is the foundation of the system.
- Reservation: Seats reserved for SCs/STs in proportion to their population; not less than 1/3rd of seats (and of chairperson posts) reserved for women.
- Term: 5 years; elections must be held before the expiry of the term (through the State Election Commission).
- A State Finance Commission is constituted every 5 years to recommend the distribution of funds between the state and Panchayats.
Flowchart — Three-Tier Panchayati Raj Structure
Gram Panchayat (Village level)
↑
Panchayat Samiti / Block/Mandal/Taluka Panchayat (Intermediate level)
↑
Zila Parishad (District level)
Directly elected members at all three levels; states with population below 20 lakh may not constitute the intermediate level.
74th Amendment — Municipalities (Part IXA, Articles 243P-243ZG)
- Added the Twelfth Schedule (18 subjects for Municipalities).
| Type | Applicable Area |
|---|
| Nagar Panchayat | Area transitioning from rural to urban |
| Municipal Council | Smaller urban area |
| Municipal Corporation | Larger urban area |
- Same reservation pattern as Panchayats (SC/ST proportional, women not less than 1/3rd).
- Wards Committees for areas with population of 3 lakh or more.
- District Planning Committee to consolidate rural and urban development plans; Metropolitan Planning Committee for areas with population above 10 lakh.
73rd vs 74th Amendment — Comparison
| Feature | 73rd Amendment | 74th Amendment |
|---|
| Body covered | Panchayati Raj Institutions (rural) | Municipalities (urban) |
| Part added | Part IX | Part IXA |
| Schedule added | Eleventh Schedule (29 subjects) | Twelfth Schedule (18 subjects) |
| Foundational unit | Gram Sabha | Wards Committee |
📌 Not Fully Mandatory: Devolution of the subjects listed in the Eleventh/Twelfth Schedules is left to state legislatures — the Constitution enables but does not compel transfer of specific functions, which is why implementation varies widely across states.
✅ UPSC Focus: Difference between 73rd and 74th amendments · Eleventh vs Twelfth Schedule subject count · Reservation formula (1/3rd for women) · Role of State Election Commission and State Finance Commission · District/Metropolitan Planning Committees.