The 73rd and 74th Constitutional Amendments of India decentralized power by granting constitutional status to Panchayati Raj and urban local bodies. They established regular elections, reserved seats for marginalized groups, and promoted grassroots democracy, ensuring citizen participation in governance at village and city levels.

When the Constitution of India came into force in 1950, it established India as a sovereign, socialist, secular, and democratic republic. The dream was of an India where power flowed from the people. Yet, despite this high vision, real power remained concentrated at the Centre and the states for many decades. The village councils and municipal bodies existed, but mostly as ceremonial institutions without real teeth.

It wasn’t until the early 1990s that India embarked upon a radical journey to empower its grassroots. This journey culminated in the historic 73rd and 74th Constitutional Amendments, passed in 1992 and enforced in 1993. These amendments didn’t merely tweak governance structures; they redefined India’s democracy, bringing governance closer to the common citizen.

History of 73rd and 74th Amendments

The notion of local self-government in India is not new. Even ancient Indian society had the sabhas and samitis, functioning as proto-democratic institutions. During colonial rule, Lord Ripon’s resolution of 1882 is often hailed as the “Magna Carta” of local self-governance.

Post-Independence, Mahatma Gandhi envisioned village republics as the backbone of Indian democracy. In his words, “India lives in her villages.” Yet, somehow, the architects of the Constitution, although sympathetic, treated Panchayati Raj and municipal governance as subjects for the states rather than constitutional mandates.

This resulted in vast inconsistencies: some states had vibrant Panchayats; others had dormant ones. Municipal governance often became a tool of political patronage rather than efficient administration.

Repeated committees, including the Balwantrai Mehta Committee (1957), the Ashok Mehta Committee (1978), and the G.V.K. Rao Committee (1985), diagnosed the problem. Their prescription was clear: constitutionally empower local bodies.

Finally, under the leadership of Prime Minister P.V. Narasimha Rao, India took the decisive plunge.

The 73rd Amendment

The enactment of the 73rd Constitutional Amendment Act, 1992, stands as a landmark moment in the political history of India. For the first time, Panchayati Raj Institutions (PRIs) were not merely administrative conveniences but became constitutional entities with clearly defined powers, functions, and structures.

This amendment introduced Part IX into the Constitution, encompassing Articles 243 to 243-O, and inserted the Eleventh Schedule, listing the subjects that could be entrusted to the Panchayats.

• Effective Date: 24th April 1993, a date now commemorated annually as National Panchayati Raj Day in India.
• Primary Objective: To provide constitutional legitimacy to PRIs, ensuring their stability, continuity, and uniform structure across the diverse states of India, while simultaneously promoting decentralized governance and people’s participation in decision-making at the grassroots level.

Features of the 73rd Amendment

1. Gram Sabha: The Pillar of Direct Democracy

At the heart of rural decentralization lies the Gram Sabha, the general body comprising all registered voters within a village or a group of villages.

Unlike elected bodies like the Panchayats, the Gram Sabha represents a direct form of democracy, allowing every adult citizen to have a direct say in decision-making.

Powers and Functions:

• Approving the annual plans and budgets prepared by the Panchayats.
• Screening the beneficiaries of welfare schemes.
• Monitoring the implementation of development programs.
• Discussing and auditing reports on Panchayat performance.

The exact scope of the Gram Sabha’s powers varies from state to state, but its presence universally aims to foster transparency, accountability, and people’s ownership of governance processes.

2. Three-Tier Structure of Panchayati Raj

The 73rd Amendment envisaged a uniform three-tier structure for Panchayati Raj Institutions across India, comprising:

• Gram Panchayat at the village level.
• Panchayat Samiti at the intermediate (block or taluka) level.
• Zilla Parishad at the district level.

However, states with populations below two million (20 lakhs) have been given the discretion to omit the intermediate level, creating flexibility for smaller states or union territories.

Rationale Behind the Structure:

• Village level (Gram Panchayat): For hyper-local issues like water supply, sanitation, primary education, and roads.
• Block level (Panchayat Samiti): For coordination among villages and management of shared resources.
• District level (Zilla Parishad): For integrated district-level planning, ensuring synergy between multiple blocks.

Each tier functions autonomously yet harmoniously, ensuring effective decentralization without fragmentation.

3. Regular Elections

The amendment mandates that elections must be held every five years for all levels of Panchayati Raj.

If a Panchayat is prematurely dissolved, elections must be conducted within six months of dissolution to ensure that the democratic process is not interrupted.

Significance:

• Eliminates arbitrary extensions or suspensions of Panchayats by state governments.
• Institutionalizes grassroots democracy and prevents vacuum of governance.
• Keeps representatives continually accountable to the people.

Notably, these elections are non-party based in some states and party-based in others, depending on the prevailing state legislation.

4. Reservation of Seats: Deepening Inclusive Democracy

The 73rd Amendment mandates reservations in Panchayat elections to ensure representation from marginalized sections of society:

• Scheduled Castes (SCs) and Scheduled Tribes (STs): Seats reserved in proportion to their population in the Panchayat area.
• Women: Minimum one-third reservation of total seats, including the seats reserved for SCs and STs.

State Initiatives Beyond the Constitutional Mandate:

Several progressive states such as Rajasthan, Madhya Pradesh, Bihar, and Odisha have legislated 50% reservation for women, significantly empowering women’s leadership at the grassroots.

Impact:

• Enabled millions of women and members of marginalized communities to assume leadership roles.
• Challenged deep-rooted social hierarchies and stereotypes.
• Fostered a new political consciousness among historically excluded groups.

5. State Election Commission

Each state must constitute an independent State Election Commission to direct, control, and prepare for Panchayat elections.

The Commission is vested with powers akin to those of the Election Commission of India but is restricted to local bodies.

Key Roles:

• Preparation of electoral rolls.
• Scheduling and conducting Panchayat elections.
• Resolving election disputes.

The independence of the State Election Commission ensures that elections are not subject to the whims of ruling political parties at the state level.

6. State Finance Commission: Strengthening Financial Decentralization

To ensure that Panchayats are not mere administrative bodies without resources, the 73rd Amendment mandates the constitution of a State Finance Commission (SFC) every five years.

Responsibilities of the SFC:

• Evaluate the financial position of the Panchayats.
• Recommend the distribution of taxes, duties, tolls, and fees between the state and Panchayats.
• Suggest measures to improve Panchayat finances.

Why SFCs Matter: Without financial autonomy, political and administrative decentralization would be hollow. SFCs play a crucial role in bridging this gap by advising states on empowering Panchayats financially.

7. The Eleventh Schedule

One of the most transformative aspects of the 73rd Amendment is the Eleventh Schedule. It lists 29 functional areas that states can devolve to Panchayats, encompassing:

• Agriculture, including agricultural extension.
• Land improvement and soil conservation.
• Minor irrigation, water management, and watershed development.
• Animal husbandry, dairying, and poultry.
• Fisheries.
• Social forestry and farm forestry.
• Rural housing.
• Drinking water.
• Roads, culverts, bridges, ferries, waterways, and other means of communication.
• Rural electrification, including distribution of electricity.
• Non-conventional energy sources.
• Poverty alleviation programs.
• Education, including primary and secondary schools.
• Technical training and vocational education.
• Adult and non-formal education.
• Libraries.
• Cultural activities.
• Markets and fairs.
• Health and sanitation, including hospitals, primary health centers, and dispensaries.
• Family welfare.
• Women and child development.
• Social welfare, including the welfare of handicapped and mentally retarded individuals.
• Welfare of weaker sections, and in particular, of Scheduled Castes and Scheduled Tribes.
• Public distribution system.
• Maintenance of community assets.

However, the amendment only empowers states to devolve these functions — it does not make it mandatory. As a result, the actual devolution of these subjects remains uneven across states.

The 74th Amendment

Parallel to the rural transformation through the 73rd Amendment, the Indian government recognized the urgent need to revitalize urban governance. India’s cities were growing rapidly in population, complexity, and economic significance, but the urban local bodies (ULBs) that were supposed to manage this growth remained weak, underfunded, and politically marginalized.

Thus, the 74th Constitutional Amendment Act, 1992 was passed to grant constitutional status to ULBs, ensuring their stability, accountability, and empowerment.

• Effective Date: 1st June 1993
• Primary Objective: To provide a constitutional framework for the creation, structure, composition, and functions of municipal governance in urban areas, thereby ensuring greater autonomy, democratic legitimacy, and efficiency in urban management.

Features of the 74th Amendment

1. Three Categories of Urban Local Bodies

Recognizing the diverse nature of urban settlements in India, the amendment classifies ULBs into three broad categories based on size and complexity:

• Municipal Corporation (Nagar Nigam): For larger urban areas with considerable populations, economic activities, and infrastructure needs (e.g., Mumbai, Delhi, Bangalore).
• Municipal Council (Nagar Palika): For smaller urban areas. Typically, in district headquarters or mid-sized towns.
• Nagar Panchayat: For areas in transition from rural to urban character, newly emerging towns that require tailored governance structures.

Why Categorize?

Urban areas differ vastly in their needs and challenges. A one-size-fits-all governance model would fail to address the unique issues of a metropolitan city versus a semi-urban town.

2. Composition of Municipalities

Each municipality comprises elected representatives. Seats are to be filled by direct elections based on adult suffrage.

In addition to elected members, some states allow the inclusion of:

• MLAs and MPs representing the area (without voting rights).
• Experts or nominated members, especially those with specialized knowledge.

However, nominated members cannot exceed one-fifth of the total strength of the municipality and have no right to vote.

3. Wards Committees

In cities with populations exceeding three lakh (300,000), the creation of Ward Committees is mandatory.

Each Ward Committee comprises:

• One or more wards grouped together.
• Elected members of the municipality representing these wards.
• Representatives of Resident Welfare Associations (RWAs) and civil society organizations (depending on state legislation).

Purpose of Wards Committees:

• Bring decision-making closer to neighborhoods.
• Address local issues promptly (sanitation, local roads, parks, street lighting).
• Enhance citizen participation and feedback loops.

In essence, Ward Committees act as micro-municipalities within larger cities.

4. Reservation of Seats

The amendment mandates the reservation of seats in ULBs to reflect India’s social diversity:

• Scheduled Castes (SCs) and Scheduled Tribes (STs): Reservation in proportion to their population in the municipality.
• Women: One-third of total seats reserved, including seats reserved for SCs and STs.

States are also empowered to reserve seats for Other Backward Classes (OBCs), although this was left optional.

Impact:

• Increased political participation of marginalized communities in urban governance.
• Emergence of women leaders in municipal politics.
• Improved focus on issues such as sanitation, housing, and women’s welfare.

5. Regular Elections

Urban local bodies must hold elections every five years.

If a municipality is dissolved earlier, fresh elections must be conducted within six months.

This ensures that governance continuity is maintained and that urban bodies remain accountable to their electorate.

The amendment restricts arbitrary dissolution and the appointment of administrators beyond a brief interim period.

6. State Election Commission

Just like in rural governance, the State Election Commission is entrusted with conducting free and fair elections for municipalities.

Powers Include:

• Preparing and updating electoral rolls.
• Scheduling and supervising elections.
• Adjudicating election-related disputes.

An independent State Election Commission guarantees that the urban electoral process remains impartial and transparent.

7. State Finance Commission

Each state must establish a State Finance Commission (SFC) every five years to recommend:

• Distribution of financial resources between the state government and municipalities.
• Grants-in-aid to municipalities.
• Measures for improving the financial viability of ULBs.

Without financial devolution, municipal bodies would remain dependent and ineffective. The SFC thus plays a pivotal role in ensuring fiscal autonomy.

8. Functions and Powers: The Twelfth Schedule

The 74th Amendment inserted the Twelfth Schedule into the Constitution, listing 18 functions that municipalities may be assigned:

• Urban planning, including town planning.
• Regulation of land-use and construction of buildings.
• Planning for economic and social development.
• Roads and bridges.
• Water supply for domestic, industrial, and commercial purposes.
• Public health, sanitation, conservancy, and solid waste management.
• Fire services.
• Urban forestry, protection of the environment, and promotion of ecological aspects.
• Safeguarding the interests of weaker sections of society, including the handicapped and mentally retarded.
• Slum improvement and upgradation.
• Urban poverty alleviation.
• Provision of urban amenities and facilities such as parks, gardens, playgrounds.
• Promotion of cultural, educational, and aesthetic aspects.
• Burials and burial grounds; cremations and cremation grounds.
• Cattle pounds; prevention of cruelty to animals.
• Vital statistics including registration of births and deaths.
• Public amenities including street lighting, parking lots, bus stops, and public conveniences.
• Regulation of slaughterhouses and tanneries.

Significance: This exhaustive list provides a roadmap for comprehensive urban governance, aiming to make cities more livable, inclusive, and sustainable.

Why the 74th Amendment Matters

India is urbanizing at an unprecedented pace. By 2030, over 40% of Indians are expected to live in urban areas. Cities are engines of economic growth but are also hotspots for poverty, congestion, pollution, and inequality.

The 74th Amendment recognizes:

• Local problems require local solutions.
• Cities must have financial, functional, and political autonomy.
• Citizens must have a voice in urban decision-making.
• Urban development must be sustainable and inclusive.

Without empowered municipalities, the dream of building “smart cities,” ensuring affordable housing, and providing decent urban living conditions would remain elusive.

Challenges in the Implementation of the 74th Amendment

Despite its lofty ideals, the realization of the 74th Amendment’s vision faces several hurdles:

1. Limited Devolution of Powers

Many states have been reluctant to fully devolve the 18 functions listed in the Twelfth Schedule. ULBs remain dependent on state departments for approvals and funding.

2. Financial Weakness

Most municipalities suffer from:

• Inadequate own-source revenues (property taxes, user fees, etc.).
• Dependence on erratic state grants.
• Weak financial management and low capacity to raise capital.

3. Political Marginalization

Mayors in most Indian cities have limited executive powers. Real authority often lies with municipal commissioners (appointed bureaucrats), diluting democratic accountability.

4. Administrative Capacity

Urban local bodies often lack skilled manpower, modern planning tools, and technical expertise needed for effective governance.

5. Citizen Engagement

Public participation in urban governance is weak. Ward Committees and Resident Welfare Associations (RWAs) often lack real influence over municipal decisions.

Similarities Between the 73rd and 74th Amendments

• Democratic Deepening: Both amendments seek to extend democratic practices beyond the national and state levels to grassroots and urban governance.
• Three-Tier Structure: They introduce structured tiers, village/block/district for rural and Nagar Panchayat/Municipal Council/Corporation for urban bodies.
• Reservation Policies: Both ensure representation for Scheduled Castes, Scheduled Tribes, and women, making Indian democracy more inclusive.
• Financial and Electoral Mechanisms: The establishment of State Election Commissions and State Finance Commissions is common to both, aiming to standardize elections and strengthen financial autonomy.
• Regular Elections Mandate: Each level must undergo elections every five years, ensuring continued legitimacy and citizen participation.
• Schedules for Functional Devolution: The Eleventh and Twelfth Schedules define the subjects over which these institutions can have authority.

Differences Between the 73rd and 74th Amendments