Key Points

Local government is government at the village and district level, closest to the common people, which deals with their day-to-day life and problems.

The initiative for creating elected local government bodies in modern times was taken by Lord Rippon, the Viceroy of India, in 1882. These bodies were called local boards.

Mahatma Gandhi was a strong advocate for decentralisation of power. He believed that strengthening village panchayats was a means of achieving effective economic and political decentralisation.

Before the 73rd amendment, local government was a State subject and was included in the Directive Principles of State Policy, making it non-justiciable and primarily advisory.

In 1989, the P.K. Thungon Committee was a key body that recommended granting constitutional recognition to local government institutions to ensure their regular functioning and funding.

In 1992, Parliament passed the landmark 73rd and 74th Constitutional Amendments, which came into force in 1993, to strengthen local governments and ensure uniformity in their structure.

The 73rd Amendment focuses on rural local governments, also known as Panchayati Raj Institutions (PRIs), and provides a constitutional framework for their structure and operation.

The 74th Amendment deals with urban local bodies, or Nagarpalikas. It includes similar provisions for direct elections, reservations, and institutional commissions as the 73rd Amendment, but for urban areas.

The 73rd Amendment mandated a uniform three-tier structure: Gram Panchayat at the village level, Mandal or Block Panchayat at the intermediate level, and Zilla Panchayat at the district level.

The amendments made the creation of a Gram Sabha mandatory. The Gram Sabha comprises all adult members registered as voters in the panchayat area and is the foundation of the Panchayati Raj system.

Members at all three levels of Panchayati Raj are elected directly by the people for a five-year term. If a panchayat is dissolved, fresh elections must be held within six months.

A key provision is the reservation of one-third of all seats for women. Reservations are also provided for Scheduled Castes and Scheduled Tribes in proportion to their population, including for chairperson positions.

The Eleventh Schedule of the Constitution lists 29 subjects, such as agriculture, drinking water, and rural housing, that are to be transferred to Panchayati Raj Institutions by the state governments.

Each state is required to appoint an independent State Election Commissioner who is responsible for conducting free and fair elections to all local government bodies.

States must appoint a State Finance Commission every five years to review the financial position of local governments and recommend the distribution of revenues between the state and local bodies.

The amendments have dramatically increased the number of elected representatives, with over 32 lakh members elected every five years, including at least 13 lakh women, making local bodies more representative.

Despite constitutional status, local governments face challenges as many states have not transferred significant powers and subjects to them, limiting their autonomy and effectiveness.

Local bodies have very few revenue sources of their own and are heavily dependent on grants from state and central governments, which greatly erodes their capacity to operate effectively.