Three-Tier Government Under the 73rd and 74th Amendments
Indian Polity › Salient Features of the Constitution · Topic 3.15
The 73rd and 74th Amendments (1992) added a third tier of government: Part IX for panchayats (Articles 243 to 243-O, Eleventh Schedule) and Part IX-A for municipalities (Articles 243-P to 243-ZG, Twelfth Schedule), in force in 1993.
7 min read · UPSC Prelims · Polity · Salient Features
At a Glance
- What it is The 73rd and 74th Amendment Acts of 1992 made a three-tier government by adding a third tier, the local government, to the Centre and the states
- Uniqueness A third tier of government constitutionally recognised in this form is not found in any other Constitution of the world
- 73rd Amendment Panchayats: Part IX (Articles 243 to 243-O) and the Eleventh Schedule (29 items); in force from 24 April 1993
- 74th Amendment Municipalities: Part IX-A (Articles 243-P to 243-ZG) and the Twelfth Schedule (18 items); in force from 1 June 1993
- Exam link UPSC Prelims, Polity: Salient Features
Where Does It Fit?
This is the last of the salient features of the Constitution. The first features showed a federal Constitution with two levels of government. This feature shows how the Constitution was later extended to a third level. The history of local government and the detailed working of panchayats and municipalities belong to the category on local government.
How Did the Third Tier Arise?
Originally the Indian Constitution, like any other federal Constitution, provided for a dual polity and contained provisions on the organisation and powers of the Centre and the states. Later the 73rd and 74th Constitutional Amendment Acts (1992) added a third tier of government, the local government, which is not found in any other Constitution of the world.
In the scheme of division of powers, “local government” is an item of the State List of the Seventh Schedule. The state legislatures established panchayati raj by their own Acts, and the 73rd Amendment constitutionalised it. The system of urban government was constitutionalised through the 74th Amendment.
What Did the 73rd Amendment Do?
The 73rd Amendment Act, 1992 gave constitutional recognition to the panchayats, the rural local governments. It added a new Part IX, titled “The Panchayats”, with provisions from Articles 243 to 243-O, and a new Eleventh Schedule containing 29 functional items of the panchayats (Article 243-G). The Act came into force on 24 April 1993. It gave a practical shape to Article 40, a Directive Principle that directs the State to organise village panchayats and endow them with the powers needed to function as units of self-government.
The Act brought the panchayati raj institutions under the justiciable part of the Constitution. The state governments are under a constitutional obligation to adopt the new system, and neither the formation of panchayats nor the holding of elections at regular intervals depends on the will of the state government any more.
- Gram Sabha: The foundation of the system, a village assembly of all registered voters in the area of a panchayat.
- Three-tier system: Panchayats at the village, intermediate and district levels in every state. A state with a population not exceeding 20 lakh may not constitute panchayats at the intermediate level.
- Elections: All members of panchayats at all three levels are directly elected. The chairpersons at the intermediate and district levels are elected indirectly.
- Reservation: Seats for the Scheduled Castes and Scheduled Tribes in proportion to their population, and not less than one-third of the seats, and of the offices of chairpersons, for women.
- Term: Five years at every level, with fresh elections within six months of any dissolution.
- State Election Commission: Conducts the panchayat elections and prepares the electoral rolls.
- State Finance Commission: Constituted by the Governor every five years to review the financial position of the panchayats.
- Exempted areas: The Act does not apply to Nagaland, Meghalaya, Mizoram and certain other areas.
What Did the 74th Amendment Do?
The 74th Amendment Act, 1992 gave constitutional status to the municipalities, the urban local governments. It added a new Part IX-A, titled “The Municipalities”, with provisions from Articles 243-P to 243-ZG, and a new Twelfth Schedule containing eighteen functional items of the municipalities (Article 243-W). The Act came into force on 1 June 1993. It also brought the municipalities under the justiciable part of the Constitution, and aims at revitalising and strengthening urban governments so that they function effectively as units of local government.
- Three types of municipalities: A nagar panchayat for a transitional area, a municipal council for a smaller urban area and a municipal corporation for a larger urban area.
- Composition: All members are elected directly by the people of the municipal area, which is divided into wards.
- Wards committees: Constituted in a municipality with a population of three lakh or more.
- Term: Five years, with fresh elections within six months of any dissolution, and a reasonable opportunity of being heard before dissolution.
- State Election Commission: Conducts elections to the municipalities.
- Finance Commission: The Finance Commission constituted for the panchayats also reviews the financial position of the municipalities.
- District Planning Committee: Every state constitutes one at the district level to consolidate the plans prepared by the panchayats and municipalities.
How Do the Two Amendments Compare?
| 73rd Amendment | 74th Amendment | |
|---|---|---|
| Local government | Panchayats (rural) | Municipalities (urban) |
| Part and Articles | Part IX; Articles 243 to 243-O | Part IX-A; Articles 243-P to 243-ZG |
| Schedule | Eleventh Schedule: 29 items | Twelfth Schedule: 18 items |
| Came into force | 24 April 1993 | 1 June 1993 |
| Tiers or types | Village, intermediate and district panchayats | Nagar panchayat, municipal council and municipal corporation |
| Directive Principle | Gives effect to Article 40 | — |
What Is Compulsory and What Is Voluntary?
The provisions of the 73rd Amendment are of two kinds. The compulsory provisions have to be included in the state laws creating the new system, such as the Gram Sabha, three-tier panchayats, direct elections, reservation for SCs, STs and women, a five-year term, a State Election Commission and a State Finance Commission. The voluntary provisions may be included at the discretion of the states, such as representation of Members of Parliament and state legislators in the panchayats, reservation for backward classes and the devolution of the functions in the Eleventh Schedule. The voluntary provisions allow the states to take local factors into consideration.
Why Is This Topic Important?
- Direct Prelims material: The Parts, Articles, Schedules, dates and item counts can be asked directly.
- Link to democracy: It moves democracy from representative to participatory, bringing it to the grassroots.
What Came Next?
This topic closes the salient features of the Constitution. The next category of the Indian Polity series takes up the Preamble of the Constitution.
Key People and Terms
- Gram Sabha A village assembly of all registered voters in the panchayat area
- Eleventh Schedule 29 functions of panchayats
- Twelfth Schedule 18 functions of municipalities
- State Election Commission Conducts local body elections
- Article 40 Directive Principle on village panchayats
- District Planning Committee Consolidates the plans of panchayats and municipalities in a district
Exam Corner
Points to Remember
- 73rd: Part IX, Articles 243 to 243-O, Eleventh Schedule (29), in force 24 April 1993.
- 74th: Part IX-A, Articles 243-P to 243-ZG, Twelfth Schedule (18), in force 1 June 1993.
- Not less than one-third of seats for women; SC/ST seats in proportion to population.
- Five-year term; fresh elections within six months of dissolution.
- Three municipality types: nagar panchayat, municipal council, municipal corporation.
- Minimum age to contest: 21 years.
Do Not Confuse With
- Part IX and Part IX-A: Part IX is for panchayats; Part IX-A is for municipalities. (Part IX-B is for co-operative societies, added by the 97th Amendment.)
- Eleventh and Twelfth Schedules: The Eleventh has 29 items for panchayats; the Twelfth has 18 items for municipalities.
- Compulsory and voluntary provisions: Compulsory provisions must be in state laws; voluntary ones are at the states’ discretion.
Memory Hook
73 panchayats, 11th Schedule, 29 items. 74 municipalities, 12th Schedule, 18 items. Both in 1992, in force in 1993.
Mains Angle
Questions ask about the significance of the third tier and its limits. Use these points to add depth.
- From representative to participatory democracy: The Act is a landmark in the evolution of grassroots democratic institutions.
- Constitutional obligation: Regular elections and the formation of local bodies no longer depend on the state government’s will.
- Inclusion: Reservation for SCs, STs and women, with one-third of seats and offices for women.
- Federal flexibility: Local government remains a State List subject, and the voluntary provisions allow states to adapt the system.
- Finance: State Finance Commissions and the Central Finance Commission support the finances of local bodies.
A Question You May Face
An original practice question, not a past paper question.
“The 73rd and 74th Amendments created a third tier of government.” Explain their main provisions.
How to Answer
- Introduction: Dual polity originally; the third tier added in 1992.
- 73rd Amendment: Part IX, the Eleventh Schedule, the Gram Sabha, three tiers, elections, reservation.
- 74th Amendment: Part IX-A, the Twelfth Schedule, three types of municipalities.
- Conclusion: Common features include State Election Commissions, State Finance Commissions and the five-year term.
GS Relevance
Frequently Asked Questions
What is the three-tier government under the Constitution?
The Constitution originally provided for the Centre and the states. The 73rd and 74th Amendment Acts of 1992 added a third tier, the local government, consisting of panchayats in rural areas and municipalities in urban areas. This third tier is not found in any other Constitution in the world.
What did the 73rd Amendment Act add?
The 73rd Amendment Act, 1992 added Part IX, titled The Panchayats, with Articles 243 to 243-O, and the Eleventh Schedule with 29 functional items. It came into force on 24 April 1993 and gave constitutional status to the panchayati raj institutions.
What did the 74th Amendment Act add?
The 74th Amendment Act, 1992 added Part IX-A, titled The Municipalities, with Articles 243-P to 243-ZG, and the Twelfth Schedule with eighteen functional items. It came into force on 1 June 1993 and gave constitutional status to the municipalities.
What are the three levels of panchayats?
The 73rd Amendment provides for a three-tier system of panchayats in every state: at the village, intermediate and district levels. A state with a population not exceeding 20 lakh may not constitute panchayats at the intermediate level. The Gram Sabha is the foundation.
What are the three types of municipalities?
The 74th Amendment provides for three types of municipalities in every state: a nagar panchayat for a transitional area, a municipal council for a smaller urban area and a municipal corporation for a larger urban area. An industrial township may have no municipality.
What reservation does the 73rd Amendment provide?
It provides for reservation of seats for Scheduled Castes and Scheduled Tribes at all three levels in proportion to their population, and not less than one-third of the seats and of the offices of chairpersons for women, including women of the SCs and STs.
Which Directive Principle does the 73rd Amendment give effect to?
The 73rd Amendment gave a practical shape to Article 40, a Directive Principle that says the State shall take steps to organise village panchayats and endow them with the powers and authority necessary to function as units of self-government.
What are the compulsory and voluntary provisions of the 73rd Amendment?
Compulsory provisions, such as the Gram Sabha, three-tier panchayats, direct elections, reservation, a five-year term, a State Election Commission and a State Finance Commission, must be included in state laws. Voluntary provisions are left to the states' discretion.
PYQ Practice — Statement Analysis
1 The 73rd Amendment Act added Part IX-A to the Constitution.
The 73rd Amendment added Part IX (The Panchayats). The 74th Amendment added Part IX-A (The Municipalities).
2 The Eleventh Schedule contains 29 functional items of the panchayats.
The Twelfth Schedule contains eighteen functional items of the municipalities.
3 A state with a population not exceeding 20 lakh may not constitute panchayats at the intermediate level.
Panchayats at the village and district levels are still constituted.
4 Under the 73rd Amendment, not less than one-third of the seats in panchayats are reserved for women.
The same share applies to the offices of chairpersons at each level.
5 The 74th Amendment Act came into force on 24 April 1993.
It came into force on 1 June 1993. The 73rd Amendment came into force on 24 April 1993.
Related Topics
Browse the full Indian Polity index