QUE. Highlight the transfer of powers under the 73rd and 14th Constitutional Amendment Acts. Do you think that the process of transfer has not been satisfactory yet?
June 27, 2026
The 73rd and 74th Constitutional Amendment Acts were passed in 1993 to give constitutional status to local government bodies. It has provided for a system of decentralized governance by empowering Panchayati Raj institutions and Urban Local Bodies.
- Three-tier structure: It was made mandatory to have Panchayats at the rural, intermediate and district levels and Municipalities in urban areas in all states. In addition, it was made mandatory to form Gram Sabhas comprising all the voters registered in the Panchayats.
- Devolution of functions: The 11th and 12th Schedules list 29 and 18 subjects for Panchayats and urban local bodies respectively.
- Separate body for conducting elections: A new autonomous body, the State Election Commission, was formed to conduct elections to Panchayats every five years.
- Devolution of financial powers:
- A State Finance Commission (SFC) was formed every five years to examine the financial condition of local bodies.
- Panchayati Raj institutions were authorized to levy, collect and appropriate taxes, duties and fees as per the procedure.
- There is a provision for grants from the Consolidated Fund of the State.
- District Planning Committee (DPC): To consolidate the plans prepared by the local bodies and prepare a draft development plan for the entire district.
- Despite these provisions for devolution, actual devolution is a distant dream:
- Ambiguity over functional jurisdiction: In the absence of a properly defined jurisdiction, devolution of functions is left to the discretion of the State Legislatures.
- Bureaucratic control: The village head has to approach the taluka office for technical and financial approvals.
- Lack of administrative autonomy: Local bodies have insufficient control over the people working to implement the programmes.
- For example, even when responsibilities have been transferred to the health sector, local self-government bodies have no control over the staffing and budget of these departments.
- Insufficient participation of local bodies: Local bodies are rarely involved in deciding and selecting welfare programmes.
- Dependence on States and Centre for Funding: Due to insufficient powers to raise their own resources, local bodies are dependent on funds received from the State and Centre to meet their financial needs.
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