Local Governments
1. Chapter Overview
2. Why Do We Need Local Governments?
- Nearest to the people: People can approach local government quickly and with minimum cost to solve their problems.
- Meaningful participation: At the local level, common citizens can be directly involved in decisions about their lives, needs, and development.
- Accountability: Local representatives are more directly answerable to the people they serve.
- Decentralisation in practice: Tasks that can be performed locally should be left to local people and their representatives — this strengthens democratic processes.
- People are more familiar with local government than State or national government, and more concerned with what it does since it directly affects daily life.
3. Growth of Local Government in India
- Self-governing village communities existed in India from ancient times as ‘Sabhas’ (village assemblies), which evolved into Panchayats (assembly of five persons).
- 1882: Lord Rippon (Viceroy of India) created the first modern elected local bodies called Local Boards.
- Government of India Act 1919: Village Panchayats were established in several provinces. This continued with the Government of India Act 1935.
- Mahatma Gandhi strongly pleaded for decentralisation of economic and political power. He believed strengthening village panchayats was a means of effective decentralisation — “Independence must begin at the bottom. Every village will be a republic.”
- After independence, local government was assigned to States as a State subject. It was mentioned in the Directive Principles of State Policy — making it non-justiciable (advisory only).
❓ Why Local Government Was Ignored Initially
🔹 Nehru’s View
The turmoil due to Partition caused a strong unitary inclination in the Constitution. Nehru viewed extreme localism as a threat to national unity and integration.
🔹 Ambedkar’s View
Dr. Ambedkar felt that the faction and caste-ridden nature of rural society would defeat the noble purpose of local government at the village level.
📅 Pre-Amendment Efforts
- 1952: Community Development Programme launched — to promote people’s participation in local development.
- A three-tier Panchayati Raj system was recommended for rural areas. States like Gujarat and Maharashtra adopted elected local bodies around 1960.
- Problems before 1992: local bodies had insufficient powers and funds; many States didn’t hold elections regularly; local bodies were often dissolved and handed over to government officers.
- P.K. Thungon Committee (1989) recommended constitutional recognition for local bodies, periodic elections, appropriate functions, and funds.
4. The 73rd Amendment — Rural Local Government (1992)
🏗️ Three-Tier Structure
🔼 Zilla Panchayat (Top/Apex)
Covers the entire rural area of a District. Also called Zilla Parishad. This is the highest level of the three-tier structure.
🔷 Mandal/Block/Taluka Panchayat (Middle)
Intermediate level body covering a Block or Taluka. Need not be constituted in smaller States — optional for them.
🔽 Gram Panchayat (Base)
At the base — covers a village or group of villages. This is the most basic unit of local government, directly accessible to the rural population.
🗣️ Gram Sabha
Mandatory body comprising all adult members registered as voters in the Panchayat area. It is the democratic forum of the entire village. Role and functions decided by State legislation.
🗳️ Elections
- All three levels are directly elected by the people.
- Term of each Panchayat body is five years.
- If dissolved before five years, fresh elections must be held within six months — a key provision ensuring continuity of elected local bodies.
- A State Election Commissioner (autonomous, like the Election Commission of India) is appointed to conduct Panchayat elections — no longer under State government control.
🔒 Reservations — A Major Change
- One-third (1/3) of all positions reserved for women — at all three levels, including Chairperson/Adhyaksha positions. Many States have since increased this to 50%.
- Reservations for Scheduled Castes and Scheduled Tribes in proportion to their population at all three levels.
- States can also provide reservations for Other Backward Classes (OBCs).
- Important: Women’s reservation applies within SC/ST reserved seats too — a seat can be reserved simultaneously for a woman from SC/ST. Thus, a Sarpanch can be required to be a Dalit woman or an Adivasi woman.
📋 Transfer of 29 Subjects (Eleventh Schedule)
- 29 subjects from the State list are listed in the Eleventh Schedule to be transferred to Panchayati Raj institutions.
- These subjects are mostly linked to local development and welfare functions.
- Key subjects include: Agriculture, Minor irrigation, Small-scale industries, Rural housing, Drinking water, Roads, Rural electrification, Poverty alleviation, Education (primary and secondary), Health and sanitation, Women and child development, Public distribution system, Social welfare, etc.
- Actual transfer depends on State legislation — each State decides how many of the 29 subjects to transfer. This is a major limitation in practice.
- Article 243G: The State Legislature may endow Panchayats with powers and authority with respect to matters listed in the Eleventh Schedule.
💰 State Finance Commission
- State government must appoint a State Finance Commission every five years.
- It examines the financial position of local governments and reviews distribution of revenues between the State and local bodies.
- This ensures fund allocation to rural local governments is not a purely political matter.
5. The 74th Amendment — Urban Local Government (1992)
- The 74th Amendment is largely a repetition of the 73rd Amendment applied to urban areas — same provisions for direct elections, reservations, transfer of subjects, State Election Commission, and State Finance Commission.
- Functions to be transferred to urban bodies are listed in the Twelfth Schedule of the Constitution.
🏙️ Types of Urban Local Bodies
🏛️ Municipal Corporation
For large cities (metropolitan areas like Mumbai, Delhi, Chennai). Headed by a Mayor. Strongest urban body with wide powers and resources.
🏠 Municipal Council / Municipality
For medium-sized towns. Headed by a President/Adhyaksha. Handles civic functions like water supply, roads, sanitation.
🏘️ Nagar Panchayat
For areas transitioning from rural to urban — somewhere between a village and a town. Smallest of the three urban bodies.
📋 Twelfth Schedule (18 Functions)
Urban planning, regulation of land use, public health, sanitation, water supply, slum improvement, urban poverty alleviation, education, cultural activities, public amenities, etc. — these are to be transferred to urban local bodies.
6. Before vs After 73rd Amendment — Key Changes
| Feature | Before 73rd Amendment | After 73rd Amendment (1993) |
|---|---|---|
| Constitutional Status | No constitutional status — only in Directive Principles (non-justiciable) | Full constitutional status — Part IX added |
| Structure | Varied by State — no uniformity | Uniform three-tier structure across all States |
| Elections | Often indirect; postponed frequently; no set process | Direct elections; 5-year term; fresh polls within 6 months of dissolution |
| Women’s Representation | No mandatory reservation for women | Minimum 1/3 seats reserved for women (including Chairperson positions) |
| SC/ST Reservation | Not mandatory or uniform | Mandatory reservation in proportion to population at all three levels |
| Functions | Few and unclear powers | 29 subjects listed in Eleventh Schedule for transfer |
| Elections Authority | State government administration | Independent State Election Commissioner |
| Finance | Dependent on State’s discretion | State Finance Commission every 5 years to review revenue distribution |
7. Implementation & Impact of the Amendments
📊 Scale of Local Democracy in India
🏘️ Rural Bodies
- Over 600 Zilla Panchayats
- About 6,000 Block/Intermediary Panchayats
- Over 2,40,000 Gram Panchayats
🏙️ Urban Bodies
- Over 100 City Corporations
- About 1,400 Town Municipalities
- Over 2,000 Nagar Panchayats
👥 Elected Representatives
- More than 32 lakh members elected every 5 years
- At least 13 lakh are women
- State Assemblies + Parliament combined have less than 5,000 representatives!
👩 Women Leaders
- Over 200 women Adhyakshas in Zilla Panchayats
- Over 2,000 women Block Panchayat Presidents
- Over 80,000 women Sarpanchas in Gram Panchayats
- Over 30 women Mayors in Corporations
⚠️ Limitations — Gap Between Law and Practice
- Many States have not transferred most subjects to local bodies — local bodies cannot function effectively as a result.
- Local bodies have very little funds of their own. Rural local bodies raise only 0.24% of total revenues but account for 4% of total government expenditure — they earn much less than they spend.
- Local governments remain largely agencies implementing central and State welfare schemes rather than truly autonomous bodies.
- People at the local level do not have much power to choose welfare programmes or allocate resources independently.
- Women elected as representatives sometimes serve as proxies for male family members — though such instances are becoming fewer.
- Dominant social groups resist giving up power — leading to tensions in local bodies. However, some tension is natural when democracy is deepened and power is extended to those who didn’t enjoy it before.
8. Mind Map — Chapter 8 at a Glance
Participation
Accountability
3-tier structure
Gram Sabha
Urban bodies
12th Schedule
Mandal/Block
Zilla Panchayat
SC/ST proportional
OBC optional
State decides transfer
Article 243G
State Election Comm.
6 months if dissolved
Funds insufficient
0.24% revenue only
9. Summary — Quick Revision
Local government is government at the village and district level. It ensures meaningful participation and accountability. Strengthening local government = strengthening democratic processes.
Self-governing village communities (Sabhas → Panchayats) existed since ancient times. Modern elected local bodies were created by Lord Rippon in 1882. Gandhi strongly advocated village panchayats as the base of democracy.
Before 1992, local government was only a Directive Principle — non-justiciable and advisory. P.K. Thungon Committee (1989) recommended constitutional recognition.
The 73rd and 74th Amendments (1992) gave constitutional status to local bodies and came into force in 1993. 73rd = Rural (PRIs); 74th = Urban (Nagarpalikas).
Three-tier Panchayati Raj structure: Gram Panchayat (village level) → Mandal/Block/Taluka Panchayat (intermediate) → Zilla Panchayat (district level). Gram Sabha is mandatory — all adult voters in the panchayat area.
All three levels are directly elected for 5 years. If dissolved early, fresh elections must be held within 6 months. State Election Commissioner conducts elections independently.
Reservations: Minimum 1/3 seats for women at all three levels (including Chairperson positions). SC/ST reservation proportional to population. OBC reservation optional for States.
Eleventh Schedule (29 subjects) are to be transferred to PRIs — agriculture, education, health, roads, water, poverty alleviation, etc. State Finance Commission reviews finances every 5 years.
Impact: 32+ lakh elected representatives (vs. less than 5,000 in State + Parliament). At least 13 lakh women elected. Significant empowerment of SC/ST and women in governance.
Key limitation: Many States haven’t transferred subjects or funds. Rural local bodies earn only 0.24% of revenues but spend 4% — still dependent on State/Centre. Real decentralisation remains incomplete.
10. Important Terms to Remember
- Panchayati Raj Institutions (PRIs): Rural local government bodies established under the 73rd Amendment. Includes Gram Panchayat, Mandal/Block Panchayat, and Zilla Panchayat — a three-tier structure.
- Gram Sabha: Mandatory body comprising all adult registered voters in a Gram Panchayat area. It is the democratic forum of the entire village. Its specific roles are determined by State legislation.
- Nagarpalikas: Urban local government bodies established under the 74th Amendment. Includes Municipal Corporations (large cities), Municipal Councils (towns), and Nagar Panchayats (transitional areas).
- 73rd Amendment: Constitutional amendment (1992, in force 1993) that gave constitutional status to rural local governments. Added Part IX and Eleventh Schedule (29 subjects) to the Constitution.
- 74th Amendment: Constitutional amendment (1992, in force 1993) that gave constitutional status to urban local governments (Nagarpalikas). Added Part IX-A and Twelfth Schedule (18 subjects).
- State Election Commissioner: An autonomous officer appointed by the State government to conduct elections to Panchayati Raj and Nagarpalika institutions — independent of the State government, similar to the Election Commission of India.
- State Finance Commission: Appointed every five years by the State government to review the financial position of local bodies and recommend distribution of revenues between the State and local governments.
- Decentralisation: The process of transferring power, functions, and resources from central/State government to local governments — the core idea behind establishing strong local bodies.