Q10. Critically analyse the efficacy of the 73rd and 74th Constitutional Amendment Acts as the third tier of Government. Support with examples from different States.

“Real democracy begins at the village level.”

- Mahatma Gandhi

The 73rd and 74th Constitutional Amendments (1992) institutionalized Panchayati Raj and Urban Local Bodies (ULBs), creating a third tier of governance. Their goal was decentralized democracy, participatory planning, and local accountability.

Key Features

• 73rd Amendment (Rural): Three-tier Panchayati Raj system, Gram Sabha, reservation for women and SC/STs.
• 74th Amendment (Urban): Establishment of municipal bodies Nagar Panchayats, Municipal Councils, and Corporations.
• State Finance Commissions (SFCs): Recommended financial devolution to local bodies.

Achievements

a) Grassroots Empowerment:

• Over 31 lakh elected representatives, including 14 lakh women (46%), strengthening gender inclusivity.
• States like Kerala (People’s Planning Programme) and Karnataka achieved effective devolution of powers.
• Haryana: 50% reservation for women in Panchayats; digital portals like e-Panchayat ensure transparency.

b) Decentralized Development:

• Local bodies plan and execute schemes like PM Awas Yojana, Swachh Bharat Mission, and MGNREGA.
• Urban local bodies in Indore and Pune set benchmarks for waste management and e-governance.

Shortcomings

a) Fiscal Dependence:

• Local bodies depend heavily on state transfers; only 5–7% of total plan expenditure is controlled by them.
• Delay in constituting SFCs and District Planning Committees.

b) Bureaucratic and Political Control:

• States often override local autonomy through bureaucratic dominance.
• Haryana’s Panchayats face delays in fund release from state treasury.

c) Capacity Gaps:

• Lack of training, data systems, and professional staff hinders efficient planning.

Reforms Needed

• Strengthen financial autonomy through direct tax-sharing mechanisms.
• Encourage digital governance tools (e-GramSwaraj, Urban e-portal).
• Regular performance-based grants as per 15th Finance Commission recommendations.

The 73rd and 74th Amendments laid the foundation for grassroots democracy, but their success depends on true devolution of power, funds, and functionaries.

As Haryana’s Panchayati e-governance and Kerala’s local planning show, when empowered, local bodies can make governance participatory, transparent, and people-centric.