BharatNotes Why this chapter matters for UPSC: Panchayati Raj is where Indian democracy reaches the village, and it is one of the most examined GS2 topics: the Gram Sabha, the three tiers, the 73rd Amendment (Part IX and the Eleventh Schedule), reservation for women, PESA and Panchayat finances. In the rationalised 2023-24 edition this chapter is Chapter 4, "Panchayati Raj", with the same content (old Chapter 4 was dropped).
Contemporary hook: On 16 April 2026 the Central Government brought the Constitution (106th Amendment) Act, 2023 into force (S.O. 1922(E)). That Act reserves one-third of seats for women in the Lok Sabha and the Assemblies, extending to them a principle the 73rd Amendment applied to Panchayats in 1993. The reservation itself still waits for a fresh census and delimitation: a bill to bring it forward failed in the Lok Sabha on 17 April 2026 (see 5b).
🧠 First Principles — Read This First
NCERT tells the story of Hardas village. The Gram Sabha meets for the first time after the new Gram Panchayat is elected. The Sarpanch (Panchayat President) and the Panchs (ward members) present a plan to repair the road to the highway; then Tijia raises the water shortage. The handpumps have run dry and women walk 3 km to the Suru river. Deepening handpumps is a stop-gap; Anwar suggests watershed development, which he has seen in a Maharashtra village. Next, the Gram Sabha must approve the below-poverty-line (BPL) list. People whisper that Natwar and Birju, friends of the powerful former zamindar Amirchand, are on it, while the landless labourer Om Prakash is not; Saroj speaks up, and the Sarpanch orders Om Prakash's income to be checked.
The story carries the chapter's lessons:
- The Gram Sabha is a meeting of all adults (18 or older, with the right to vote) in the area of a Panchayat. It is where the Panchayat's plans are placed before the people, and it keeps the Panchayat from misusing money or favouring certain people.
- The Gram Panchayat (Sarpanch and Panchs, elected for five years) does the work, and its work has to be approved by the Gram Sabha. A Secretary, appointed by the government and not elected, calls meetings and keeps records.
- Above the village are the Janpad Panchayat or Panchayat Samiti (block) and the Zila Parishad (district): three levels through which people take part in their own government.
- Speaking up is not equal: Soorajmal stays silent while Amirchand watches. Participation needs more than a meeting.
PART 1 — Quick Reference
The Three Levels (NCERT)
| Level | NCERT's name | What it does |
|---|---|---|
| Village | Gram Panchayat, answerable to the Gram Sabha | Implements development programmes; builds and maintains water sources, roads, drainage, school buildings; levies local taxes; runs employment schemes |
| Block | Janpad Panchayat or Panchayat Samiti | Has many Gram Panchayats under it |
| District | Zila Parishad (District Panchayat) | Makes development plans for the district and, with the Panchayat Samitis, regulates the distribution of money among Gram Panchayats |
Sources of funds (NCERT): taxes on houses, market places and so on; government scheme funds through the Janpad and Zila Panchayats; donations for community works.
The 73rd Amendment: What the Constitution Says
The Constitution (Seventy-third Amendment) Act, 1992 inserted Part IX (Articles 243 to 243-O) and the Eleventh Schedule, in force from 24 April 1993.
| Article | Provision | "Shall" or "may"? |
|---|---|---|
| 243A | Gram Sabha may exercise the powers and functions that State law provides | May (State law decides) |
| 243B | Panchayats shall be constituted at village, intermediate and district levels; the intermediate level may be skipped in a State with population not exceeding 20 lakh | Shall (three tiers) |
| 243C | All seats filled by direct election; the village chairperson is elected as State law provides; intermediate and district chairpersons are elected by and from among the elected members | Shall |
| 243D | Seats for SCs and STs in proportion to their population; not less than one-third of seats (and of chairpersons' offices) for women; reservation for backward classes left to the State | Shall (SC/ST, women); may (backward classes) |
| 243E | Five-year term; elections before the term ends, or within six months of a dissolution | Shall |
| 243F | Disqualifications follow State-legislature rules, but a person aged 21 is not disqualified for being under 25 | Shall |
| 243G | State law may give Panchayats powers to plan and implement schemes, including on the Eleventh Schedule's 29 subjects | May |
| 243H | State law may let Panchayats levy taxes and receive grants | May |
| 243-I | State Finance Commission every five years to review Panchayat finances | Shall |
| 243K | State Election Commission conducts Panchayat elections | Shall |
| 243M | Part IX does not apply to Scheduled Areas and certain other areas unless Parliament extends it (it did, by PESA, 1996) |
The Eleventh Schedule: 29 Subjects (Article 243G)
- Agriculture, including agricultural extension · 2. Land improvement, land reforms, land consolidation and soil conservation · 3. Minor irrigation, water management and watershed development · 4. Animal husbandry, dairying and poultry · 5. Fisheries · 6. Social forestry and farm forestry · 7. Minor forest produce · 8. Small scale industries, including food processing · 9. Khadi, village and cottage industries · 10. Rural housing · 11. Drinking water · 12. Fuel and fodder · 13. Roads, culverts, bridges, ferries, waterways and other means of communication · 14. Rural electrification, including distribution of electricity · 15. Non-conventional energy sources · 16. Poverty alleviation programme · 17. Education, including primary and secondary schools · 18. Technical training and vocational education · 19. Adult and non-formal education · 20. Libraries · 21. Cultural activities · 22. Markets and fairs · 23. Health and sanitation, including hospitals, primary health centres and dispensaries · 24. Family welfare · 25. Women and child development · 26. Social welfare, including welfare of the handicapped and mentally retarded · 27. Welfare of the weaker sections, in particular the Scheduled Castes and Scheduled Tribes · 28. Public distribution system · 29. Maintenance of community assets.
PART 2 — Concepts & Narrative
The Gram Sabha: Keeping the Panchayat Responsible
Gram Sabha (NCERT): a meeting of all adults who live in the area covered by a Panchayat, which may be one village or a few villages. Anyone aged 18 or more with the right to vote is a member.
Why it matters: "The Gram Sabha is a key factor in making the Gram Panchayat play its role and be responsible." All plans for the Panchayat's work are placed before it; it can stop the Panchayat from misusing money or favouring certain people, and it keeps an eye on the elected representatives.
Gram Sabha vs Gram Panchayat: the Gram Sabha is all the voters (direct participation); the Gram Panchayat is the body they elect (representation). In some states the Gram Sabha forms committees, such as construction and development committees, with members from both.
Constitution: Article 243 defines the Gram Sabha as the body of persons on the electoral rolls of a village; Article 243A leaves its powers to State law, so what a Gram Sabha can do differs from state to state.
The Gram Panchayat at Work
The village Panchayat is divided into wards; each ward elects a Panch, and the members of the Gram Sabha also elect a Sarpanch (NCERT; Article 243C leaves the method of electing the village chairperson to each State). The Gram Panchayat is elected for five years and has an appointed Secretary.
Hardas, continued: the Gram Panchayat (Sarpanch, Panchs and Secretary) decides to use money already received for handpump maintenance to deepen two handpumps and clean a well, and to approach the Block Development Officer about the watershed scheme, knowing the Gram Sabha will ask questions at its next meeting. NCERT shows two Panchs from Maharashtra who won the Nirmal Gram Puraskar in 2005, and a hillside "transformed ... to a green meadow in just two years" by watershed work.
Each state has its own Panchayat law "within the guidelines given in the Constitution", NCERT notes, "to provide more and more space for people to participate and raise their voices".
How Panchayati Raj Grew
NCERT's Class 11 book Indian Constitution at Work (ch. 8) traces the history:
- After 1882: elected local boards created at the initiative of the Viceroy, Lord Ripon; village panchayats were set up in several provinces after the Government of India Act, 1919, a trend that continued after the 1935 Act.
- Gandhiji pleaded for decentralisation: "every village will be a republic". The Constitution, however, left local government to the States and put village panchayats in the Directive Principles, which cannot be enforced in court.
- 1952: the Community Development Programme began. A study team chaired by Balwant Rai Mehta, appointed in 1957, recommended a three-tier Panchayati Raj based on "democratic decentralisation", and the National Development Council accepted it in 1959 (as recorded by the Rajasthan High Court, Suratram v. Additional District Development Officer, 20 February 1979). Gujarat and Maharashtra had elected local bodies around 1960 (NCERT).
- Many States later let local bodies lapse or postponed their elections. In 1989 the P.K. Thungon Committee recommended constitutional recognition (NCERT).
- 1992: Parliament passed the 73rd (rural) and 74th (urban) Amendments, which came into force in 1993 (24 April and 1 June).
PESA, 1996: Panchayats in Scheduled Areas
UPSC GS2: The Provisions of the Panchayats (Extension to the Scheduled Areas) Act, 1996 (PESA)
Article 243M kept Part IX out of the Scheduled Areas (Fifth Schedule). PESA (Act 40 of 1996, in force 24 December 1996) extended Part IX to these areas with changes that give the Gram Sabha more say. NCERT Class 11's summary: the Act "protects the rights of these communities to manage their resources in ways acceptable to them", and elected panchayats "have to get the consent of the Gram Sabha in many respects".
What the Act says (s.4):
- Every Gram Sabha "shall be competent to safeguard and preserve the traditions and customs of the people, their cultural identity, community resources and the customary mode of dispute resolution".
- The Gram Sabha or Panchayat must be consulted before land is acquired in Scheduled Areas for development projects, and before resettling people displaced by them.
- Its recommendation is mandatory before licences or leases for minor minerals are granted.
- Panchayats and Gram Sabhas get powers over the sale of intoxicants, ownership of minor forest produce, preventing land alienation and restoring unlawfully alienated tribal land, village markets, and money lending to Scheduled Tribes.
Women in Panchayats
UPSC GS2: Reservation for Women in PRIs
Article 243D requires that not less than one-third of seats, and of chairpersons' offices, at every level be reserved for women, including one-third of the seats reserved for SCs and STs. "Not less than" lets States go further. A Ministry of Panchayati Raj table (as on 8 September 2021) lists 22 States and UTs whose Panchayat laws reserve 50% of seats for women, among them Bihar, Madhya Pradesh, Rajasthan, Odisha, Maharashtra, Kerala, Karnataka, Andhra Pradesh, Telangana, Tamil Nadu, West Bengal, Gujarat, Himachal Pradesh and Uttarakhand; Uttar Pradesh and several others keep one-third.
The challenge: reservation puts women in office; it does not by itself give them power. The Hardas story already shows how hard it is to speak in front of the powerful, and proxy rule by male relatives of elected women is a common criticism.
National Panchayati Raj Day is observed on 24 April, the day the 73rd Amendment came into force in 1993. The SVAMITVA scheme was launched on that day in 2020 (PIB). In the National Panchayat Awards presented on 3 June 2026, the categories included the Deen Dayal Upadhyay Panchayat Satat Vikas Puraskar and the Nanaji Deshmukh Sarvottam Panchayat Satat Vikas Puraskar (AIR News, 3-Jun-2026).
[Additional] 5a. Finance Commission Grants to Panchayats
NCERT lists three sources of Panchayat money; a large share now comes as Finance Commission grants. Article 280(3)(bb) asks the Union Finance Commission to recommend measures to augment a State's Consolidated Fund to supplement Panchayat resources (Municipalities are clause (c)).
Key Terms: Grants to Rural Local Bodies (RLBs)
| Term | Meaning |
|---|---|
| Rural Local Bodies | Panchayats at all three tiers (plus traditional local bodies and Sixth Schedule areas, for these grants) |
| Basic (untied) grant | Can be used for felt needs under the 29 subjects of the Eleventh Schedule, except salaries |
| Tied grant | Earmarked for named services (sanitation, solid waste and water under the XVI FC) |
| Grant Transfer Certificate (GTC) | A State's certificate that it has passed on the last instalment; needed before the next one is released |
[Additional] XV and XVI Finance Commission Grants (GS2: Local Government, Fiscal Federalism)
| XV Finance Commission (2021-26) | XVI Finance Commission (2026-31) | |
|---|---|---|
| Rural Local Bodies | Rs 2,36,805 crore (plus Rs 60,750 crore for 2020-21) | Rs 4,35,236 crore (28 States), about 84% more than the comparable XV FC allocation |
| Urban Local Bodies | Rs 1,21,055 crore | (in the total below) |
| Health grants through local governments | Rs 70,051 crore | — |
| Total to local governments | Rs 4,36,361 crore (the three heads above plus Rs 8,000 crore for new cities and Rs 450 crore for shared municipal services) | Rs 7,91,493 crore for RLBs and ULBs |
| Structure of RLB grant | Tied and basic (untied) grants, released in two instalments a year | Basic Rs 3,48,188 crore, split equally: tied Rs 1,74,094 crore, untied Rs 1,74,094 crore; plus RLB performance grant Rs 43,524 crore and State performance grant Rs 43,524 crore, all untied |
Who releases what: the Ministry of Panchayati Raj recommends release of untied grants and the Department of Drinking Water and Sanitation of tied grants; the Ministry of Finance releases them to the States on receipt of the GTC (PIB, 24-Mar-2026). The XVI FC report was submitted to the President on 17 November 2025 and laid in Parliament with the Explanatory Memorandum on action taken in February 2026.
[Additional] 5b. Reservation for Women in Parliament: The 106th Amendment
Key Terms: The 106th Amendment
| Term | Meaning |
|---|---|
| Constitution (106th Amendment) Act, 2023 | Popularly the Nari Shakti Vandan Adhiniyam; introduced as the Constitution (128th Amendment) Bill, 2023 |
| Article 330A | Reserves seats for women in the Lok Sabha: one-third of directly elected seats, including one-third of the SC and ST seats |
| Article 332A | The same for the State Legislative Assemblies (Delhi is covered through an amendment to Article 239AA) |
| Article 334A | The reservation takes effect only after a delimitation based on the first census taken after the Act's commencement; it ceases after fifteen years, though Parliament may by law continue the reserved seats (334A(1)-(2)); reserved seats rotate after each delimitation |
[Additional] From Bill to Commencement (GS2: Parliament, Social Justice)
| Step | Date | Record |
|---|---|---|
| Lok Sabha passes the Bill | 20 September 2023 | 454 for, 2 against (PIB, Ministry of Parliamentary Affairs) |
| Rajya Sabha passes it | 21 September 2023 | 214 for, none against (Rajya Sabha Debates) |
| Presidential assent | 28 September 2023 | Gazette of India |
| Act brought into force | 16 April 2026 | S.O. 1922(E), Ministry of Law and Justice |
Why women's seats are still not reserved: commencement does not reserve a single seat. Article 334A ties the reservation to a delimitation based on the first census taken after commencement. On 16 April 2026 the Government introduced the Constitution (131st Amendment) Bill, 2026 (Bill No. 107 of 2026). It would have raised the Lok Sabha's ceiling to 815 members from the States and 35 from the Union territories and, in the words of its Statement of Objects and Reasons, operationalised the reservation through a delimitation "on the basis of the population figures of the latest published census". On 17 April 2026 the Lok Sabha did not pass it: 298 voted for and 230 against, short of the two-thirds majority a constitutional amendment needs (LiveLaw, 17-Apr-2026); the Home Minister's reply that day said the opposition "did not allow it to be passed" (PIB, 17-Apr-2026).
| Panchayats (73rd Amendment) | Lok Sabha and Assemblies (106th Amendment) | |
|---|---|---|
| Article | 243D | 330A, 332A, 334A |
| Share | Not less than one-third; States may give more | One-third |
| In operation | Since 1993 | In force since 16-Apr-2026, but seats reserved only after the next delimitation |
| Rajya Sabha and Legislative Councils | — | Not covered |
PART 3 — UPSC Integration
The chapter's Gram Sabha is the Constitution's Article 243A, and Hardas is the 73rd Amendment at work. Three GS2 debates follow from it. Devolution: Part IX makes elections, terms, reservation, the State Election Commission and the State Finance Commission compulsory ("shall"), but leaves powers, functions and taxes to State law ("may"), so how much Panchayats can actually do differs widely between states. Finance: with few taxes of their own, Panchayats depend on grants, which is why the Finance Commission's tied and untied shares matter. Representation: one-third (often half) of Panchayat seats are held by women; the 106th Amendment extends the idea to Parliament and the Assemblies but makes it wait for delimitation. PESA adds a fourth theme, tribal self-rule, linking this chapter to the Fifth Schedule and to forest and mineral rights (GS1, GS3).
Exam Strategy
Prelims traps:
- Part IX = Articles 243 to 243-O + Eleventh Schedule (29 subjects); the 73rd Amendment came into force on 24 April 1993. Part IXA, the Twelfth Schedule and the 74th Amendment are urban.
- The intermediate tier may be left out only in a State with population not exceeding 20 lakh.
- Minimum age for Panchayat membership is 21 (Article 243F proviso).
- Women: not less than one-third of seats and chairpersons' offices (243D); OBC reservation is left to States (243D(6)).
- Elections are conducted by the State Election Commission (243K), not the Election Commission of India.
- Gram Sabha's powers come from State law (243A), not directly from the Constitution.
- Finance Commission: 280(3)(bb) for Panchayats, 280(3)(c) for Municipalities.
- PESA applies to Fifth Schedule areas (not the Sixth Schedule) and came into force on 24 December 1996.
- 106th Amendment: Lok Sabha vote 454 to 2 (not unanimous); Rajya Sabha 214 to 0; in force 16 April 2026; reservation still awaits delimitation.
Mains frameworks:
- On why Panchayats remain weak: funds (own revenue vs grants), functions (243G is enabling, not mandatory), functionaries (staff controlled by the State) → examples from the Hardas story → reforms.
- On women's reservation: numbers in office → the gap between office and power → what the 106th Amendment adds and why it waits.
Practice Questions
Practice (UPSC-pattern, not past papers). Real UPSC questions on this chapter are listed in the PYQ box above.
Prelims:
Which of the following is mandatory under Part IX of the Constitution?
(a) Devolution of all 29 subjects of the Eleventh Schedule to Panchayats
(b) Constitution of a State Finance Commission every five years
(c) Reservation of seats in Panchayats for backward classes
(d) Power of Panchayats to levy taxesPanchayats at the intermediate level need not be constituted in a State whose population does not exceed:
(a) 10 lakh
(b) 20 lakh
(c) 25 lakh
(d) 50 lakhUnder PESA, 1996, which of the following requires the prior recommendation of the Gram Sabha or Panchayat?
(a) Grant of a prospecting licence or mining lease for minor minerals in Scheduled Areas
(b) Appointment of the District Collector
(c) Notification of a Scheduled Area by the President
(d) Conduct of Lok Sabha elections in the areaConsider the following about the Constitution (106th Amendment) Act, 2023:
- It reserves seats for women in the Rajya Sabha.
- The reservation takes effect after a delimitation based on the first census taken after its commencement.
Which is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
- It reserves seats for women in the Rajya Sabha.
Mains:
"The Gram Sabha is the soul of Panchayati Raj, but State laws decide how much it can do." Discuss with reference to Article 243A and PESA. (GS2, 15 marks)
Examine how far Finance Commission grants have made Panchayats financially capable, comparing the XV and XVI Finance Commissions. (GS2, 10 marks)
📦 Revision Capsule
Hard Facts
- Gram Sabha = all adult voters of a Panchayat area; Gram Panchayat = Sarpanch + Panchs, elected for 5 years; appointed Secretary
- Three levels: Gram Panchayat → Janpad Panchayat/Panchayat Samiti → Zila Parishad
- 73rd Amendment: Part IX (243-243O) + Eleventh Schedule (29 subjects), in force 24-Apr-1993; women ≥ one-third; SEC (243K); SFC (243-I); age 21
- Balwant Rai Mehta study team (1957) → three tiers; P.K. Thungon Committee (1989) → constitutional status
- PESA (Act 40 of 1996), in force 24-Dec-1996
- XV FC RLBs Rs 2,36,805 cr (2021-26); XVI FC RLBs Rs 4,35,236 cr (2026-31), tied:untied basic 50:50
- 106th Amendment in force 16-Apr-2026 (S.O. 1922(E)); 131st Amendment Bill failed 17-Apr-2026 (298-230)
Core Concepts
- The Gram Sabha makes the Panchayat answerable
- Part IX: structure is mandatory ("shall"), devolution is left to States ("may")
- Representation in office is not the same as power
Confused Pairs
- Gram Sabha (all voters) vs Gram Panchayat (elected body)
- 73rd (rural, Part IX, 11th Schedule) vs 74th (urban, Part IXA, 12th Schedule)
- Article 243D (Panchayats, since 1993) vs Articles 330A/332A (Parliament and Assemblies, after delimitation)
- Fifth Schedule (PESA) vs Sixth Schedule (autonomous district councils)
PYQ Pattern
- Mains GS2 asks about Panchayats repeatedly: their effectiveness as institutions of governance, sources of finance, women's reservation and the shift from "functions, functionaries and funds" (see the PYQ box).
Sources
Sources
- NCERT, Social and Political Life – I (Class VI), ch. 5 "Panchayati Raj" (2020-21 print), and the Rationalised 2023-24 edition, ch. 4: NCERT's book archives as captured by the Wayback Machine, 2020 copy and 2023-24 copy. NCERT, Indian Constitution at Work (Class XI), ch. 8 "Local Governments": book archive.
- The Constitution of India, as on 11 November 2025: Part IX, the Eleventh Schedule, Articles 280, 330A, 332A, 334A: legislative.gov.in.
- The Provisions of the Panchayats (Extension to the Scheduled Areas) Act, 1996: Indian Kanoon. Rajasthan High Court, Suratram v. Addl. District Development Officer, 20-Feb-1979: Indian Kanoon.
- Ministry of Panchayati Raj, Status of reservation for women in PRIs (as on 08.09.2021): panchayat.gov.in.
- PIB: Report of the Fifteenth Finance Commission, 1-Feb-2021; MoPR on FC grants, 24-Mar-2026; MoPR on XVI FC grants, 12-Aug-2026. Ministry of Finance, Explanatory Memorandum on the Sixteenth Finance Commission: indiabudget.gov.in. AIR News, XVI FC workshop, 3-Jul-2026 and National Panchayat Awards, 3-Jun-2026.
- 106th Amendment: Act, Gazette, 28-Sep-2023; commencement, S.O. 1922(E), 16-Apr-2026; PIB Year-End Review 2023, Parliamentary Affairs; Rajya Sabha Debates, 21-Sep-2023. 131st Amendment Bill: Gazette, 16-Apr-2026; PIB, 17-Apr-2026; LiveLaw, 17-Apr-2026.
