73rd Amendment
Gave constitutional status to Panchayati Raj institutions.
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Added Part IX and the Eleventh Schedule.

Quick recall
- Which Part did the 73rd Amendment add?
- Part IX.
- How many subjects are in the Eleventh Schedule?
- 29.
- What share of seats is reserved for women?
- At least one-third.
- When did it come into force?
- 24 April 1993, now National Panchayati Raj Day.
- Which body conducts panchayat elections?
- The State Election Commission.
- Which committee recommended a three-tier system?
- The Balwantrai Mehta Committee (1957).
Asked before in UPSC
Recurring theme: Effectiveness of Panchayati Raj and democratic decentralisation
The 73rd Amendment is the constitutional basis of grassroots decentralisation whose impact the question asks you to assess.
Funds, functions and functionaries are the three devolution gaps left by the 73rd Amendment's reliance on State laws.
Panchayat finances rest on the 73rd Amendment's State Finance Commission and taxing provisions.
Assessing local self-government means evaluating how far the 73rd Amendment has delivered in practice.
Critiques of Panchayats as political rather than governance bodies test the gap between the 73rd Amendment's design and its working.
The basics
Why it matters
The 73rd Amendment (1992) gave constitutional status to panchayats, creating a third tier of government in rural India with regular elections, reserved seats and devolved functions.
The three-tier structure
Panchayats work at three levels.
- 1Gram panchayatVillage level
- 2Panchayat samitiBlock level
- 3Zila parishadDistrict level
- 4Gram sabhaAll voters of the village
You now know
- Came into force on 24 April 1993; added Part IX and the Eleventh Schedule.
- Three tiers, except in States under 20 lakh population.
- One-third seats reserved for women; SC/ST in proportion to population.
- State Election Commission and State Finance Commission required.
Go deeper
In one line: The 73rd Amendment made panchayats a constitutional level of government.
Why it matters for UPSC
Local governance is a core GS2 topic, and the facts are Prelims staples.
The core idea
It guaranteed elections and reservation, but left devolution of Funds, functions and functionaries to States, which is why many panchayats remain weak. The Gram sabha is its democratic base.
Where to go next
- Gram sabha: The village assembly
- Funds, functions and functionaries: What real devolution needs
In one line: Panchayats exist everywhere, but their power depends on State devolution.
Gains
Regular elections and a large number of elected women representatives.
Gaps
Weak Funds, functions and functionaries, 'sarpanch-pati' proxies, and limited own revenue.
PESA
The PESA Act, 1996 extends panchayats to Fifth Schedule areas with a strong Gram sabha.
Where to go next
- Gram sabha: The village assembly
- Funds, functions and functionaries: What real devolution needs
Gram sabha
The village assembly
In one line: The gram sabha is the body of all registered voters in a village panchayat area.
Role
Approves plans, selects beneficiaries and conducts social audits.
Under PESA
It has stronger powers over land, resources and customs.
Where to go next
- Funds, functions and functionaries: What real devolution needs
Funds, functions and functionaries
What real devolution needs
In one line: The '3Fs' are the funds, functions and staff that must be devolved for panchayats to work.
The problem
Many States have transferred functions on paper but not money or staff.
Tools
State Finance Commissions and Finance Commission grants.
Where to go next
- Gram sabha: The village assembly
Prelims-style quiz
The Eleventh Schedule contains:
- 52 subjects
- 18 subjects
- 22 subjects
- 29 subjects
Show answer
Answer: (d) 29 subjects. 29 subjects.
Consider the following:
1. The 73rd Amendment requires a State Finance Commission.
2. Panchayat elections are conducted by the Election Commission of India.
Which of the statements given above is/are correct?- 1 only
- 2 only
- Both 1 and 2
- Neither 1 nor 2
Show answer
Answer: (a) 1 only. State Election Commissions conduct them.
Panchayati Raj Day is observed on:
- 15 August
- 2 October
- 24 April
- 26 November
Show answer
Answer: (c) 24 April. 24 April.
The intermediate tier is not required in States with a population below:
- 20 lakh
- 1 crore
- 10 lakh
- 50 lakh
Show answer
Answer: (a) 20 lakh. 20 lakh.