UPSC GS Paper II Local Government Devolution of Powers Issues in Practice

Must‑Know

• 73rd and 74th Constitutional Amendments (1992) – introduced Part IX (Panchayats) and Part IXA (Municipalities); mandated regular elections, reservation for SCs/STs, and women (one-third), and established State Finance Commissions.
• Article 243G – empowers state legislatures to devolve powers to panchayats on matters in the Eleventh Schedule (29 subjects like agriculture, minor irrigation, rural housing).
• Eleventh Schedule – lists 29 subjects for panchayat jurisdiction; includes poverty alleviation, primary education, health, and minor water bodies.
• Twelfth Schedule – contains 18 subjects for municipalities (urban planning, roads, water supply, slum improvement).
• Article 243ZD – mandates constitution of District Planning Committees (DPCs) to consolidate plans from panchayats and municipalities for district development.
• 74th Amendment – introduced three types of municipalities: Nagar Panchayat (transitional areas), Municipal Council (small urban areas), Municipal Corporation (larger urban areas).
• 11th Finance Commission (2000) – recommended devolution of 29.5% of central tax proceeds to states, and emphasized need for performance-based grants to local bodies.
• State Election Commissions – established under Article 243K to conduct panchayat and municipal elections; independent of Election Commission of India.
• 97th Constitutional Amendment (2011) – inserted Part IXB (cooperative societies) into Constitution; upheld in Union of India v. Rajendra N. Shah (2021) with partial invalidation of state-level provisions.
• S.R. Bommai v. Union of India (1994) – reinforced federalism; indirectly strengthened local government by affirming state autonomy, which includes power over local bodies.
• Balwantrai Mehta Committee (1957) – recommended three-tier Panchayati Raj system (village, block, district) with real devolution of power and resources.
• Ashok Mehta Committee (1978) – recommended two-tier system (Zila Parishad at district level, Mandal Panchayat for groups of villages) and political leadership at district level.
• G.V.K. Rao Committee (1985) – emphasized role of Panchayati Raj Institutions (PRIs) as agents of development administration; recommended regular funding and planning powers.
• L.M. Singhvi Committee (1986) – advocated constitutional recognition for PRIs, judicial protection, and establishment of Gram Nyayalayas.
• 73rd Amendment – mandates reservation of one-third seats for women in panchayats; many states (e.g., Bihar, Madhya Pradesh) increased it to 50%.
• 74th Amendment – does not mandate reservation for women in municipalities; left to state legislatures, though many states have adopted 33–50%.
• State Finance Commissions (SFCs) – constituted every five years under Article 243I to review financial position of panchayats and municipalities and recommend devolution of funds.
• Four-fold devolution – functional (functions), financial (funds), administrative (staff), and political (elections); incomplete in most states.
• Kerala v. N.M. Thomas (1976) – not directly on local government, but established that affirmative action can apply across administrative tiers, influencing reservation policies in local bodies.
• Nagraj v. Union of India (2006) – laid down conditions for constitutional amendments affecting federal balance, relevant to state autonomy in local governance.
• Urban Local Bodies (ULBs) – collect property tax, water charges, and octroi (abolished in 2017 with GST); rely heavily on state grants.
• Panchayats – major sources of revenue: state finance commission grants, own revenue (e.g., land tax, user charges), and centrally sponsored schemes.
• M.C. Mehta v. Union of India (1987) – led to creation of Environmental Courts and empowered local bodies in environmental regulation (e.g., municipal action in Delhi pollution control).
• Jawaharlal Nehru Urban Renewal Mission (2005) – first major central scheme to strengthen urban infrastructure and municipal capacity; succeeded by AMRUT and Smart Cities.
• 73rd Amendment does not apply to scheduled and tribal areas – exceptions under Article 243M(4) and Fifth/Sixth Schedule areas; PESA Act (1996) applies in Fifth Schedule areas.

Difficulty Level

Intermediate – requires understanding of constitutional provisions, committee recommendations, and intergovernmental fiscal relations; questions often combine static and dynamic aspects.

Common UPSC Traps

Trap: 73rd and 74th Amendments granted automatic devolution of powers to local bodies – Fact: Amendments mandated constitutional status and elections, but devolution of functions, funds, and functionaries (3Fs) is subject to state legislation (Articles 243G, 243W).

Trap: Panchayats have judicial powers – Fact: Panchayats are administrative bodies; Gram Nyayalayas established under Gram Nyayalayas Act (2008) are judicial, not part of panchayats.

Trap: 50% women reservation in panchayats is constitutional – Fact: Constitution mandates 33%; 50% is adopted by state laws (e.g., Maharashtra, Rajasthan), not by the Constitution.

Trap: Municipalities are under the Union List – Fact: Urban local bodies are in State List (Entry 5), subject to state control; 74th Amendment sets framework but does not override state authority.

Practice MCQs

Question: Which of the following is NOT a constitutional requirement under the 73rd Amendment Act?
A) Reservation of seats for Scheduled Castes and Scheduled Tribes in panchayats
B) Direct election of the Chairperson of the Zila Parishad
C) Constitution of a State Finance Commission every five years
D) Establishment of a District Planning Committee
Answer: D
Explanation: DPCs are mandated under 74th Amendment (Article 243ZD) for urban-rural planning, not under 73rd Amendment.
Why others fail: Option C is correct under Article 243I; many confuse DPCs as universal, but they are for districts under 74th Amendment.

Question: The Panchayats (Extension to the Scheduled Areas) Act, 1996 (PESA) is applicable to:
A) All states with Scheduled Tribes
B) Only states under the Fifth Schedule
C) Both Fifth and Sixth Schedule areas
D) Only tribal areas in North-Eastern states
Answer: B
Explanation: PESA applies to areas under the Fifth Schedule (e.g., Odisha, Jharkhand), not Sixth Schedule (e.g., Assam, Meghalaya), which have autonomous councils.
Why others fail: Option C is tempting due to overlap in tribal governance, but Sixth Schedule areas have separate constitutional provisions.

Question: Which committee recommended constitutional status for Panchayati Raj Institutions?
A) Balwantrai Mehta Committee
B) Ashok Mehta Committee
C) G.V.K. Rao Committee
D) L.M. Singhvi Committee
Answer: D
Explanation: L.M. Singhvi Committee (1986) recommended constitutional recognition, leading to 73rd Amendment.
Why others fail: Balwantrai Mehta (1957) recommended three-tier system but not constitutional status.

Question: Under the 74th Constitutional Amendment, which of the following is a mandatory function of Municipalities?
A) Urban poverty alleviation
B) Regulation of land use and construction
C) Primary health care
D) Fire services
Answer: B
Explanation: Urban planning, regulation of land use and construction are in Twelfth Schedule and made mandatory under state laws post-Amendment.
Why others fail: Poverty alleviation and health are optional; fire services are often outsourced.

Question: The role of the State Finance Commission includes:
A) Allocating funds between state and central governments
B) Reviewing financial position of urban and rural local bodies
C) Recommending tax devolution to states from the Centre
D) Monitoring implementation of centrally sponsored schemes
Answer: B
Explanation: Article 243I mandates SFCs to review financial position of panchayats and municipalities and recommend devolution of funds.
Why others fail: Option C refers to Finance Commission of India (Article 280).

Question: Which of the following is a subject in the Twelfth Schedule but NOT in the Eleventh Schedule?
A) Public health
B) Urban planning
C) Agriculture
D) Social forestry
Answer: B
Explanation: Urban planning is in Twelfth Schedule (municipalities); agriculture and social forestry are in Eleventh Schedule (panchayats).
Why others fail: Public health appears in both, making it a common confusion.

Question: The 97th Constitutional Amendment Act (2011) is related to:
A) Cooperative societies
B) Municipal governance
C) Panchayat elections
D) District planning
Answer: A
Explanation: 97th Amendment inserted Part IXB (Articles 243ZH–243ZT) on cooperative societies; partially struck down in Rajendra N. Shah (2021).
Why others fail: The amendment is often confused with 73rd/74th, but it specifically targets cooperatives.

Last‑Minute Revision

• ⚠️ 73rd Amendment – 1992, effective 1993.
• ⚠️ 74th Amendment – 1992, effective 1993.
• ⚠️ Article 243G – Panchayats and Eleventh Schedule.
• ⚠️ Article 243W – Municipalities and Twelfth Schedule.
• ⚠️ PESA Act – 1996, Fifth Schedule areas.
• ⚠️ Balwantrai Mehta Committee – 1957, three-tier system.
• ⚠️ Ashok Mehta Committee – 1978, two-tier system.
• ⚠️ G.V.K. Rao Committee – 1985, PRIs as development agents.
• ⚠️ L.M. Singhvi Committee – 1986, constitutional status.
• ⚠️ 11th Finance Commission – 2000, 29.5% tax devolution.
• ⚠️ State Election Commission – Article 243K.
• ⚠️ District Planning Committee – Article 243ZD.
• ⚠️ 97th Amendment – 2011, cooperative societies.
• ⚠️ Rajendra N. Shah case – 2021, partial invalidation of 97th Amendment.
• ⚠️ SFCs – constituted every 5 years, Article 243I.
• ⚠️ Women reservation in panchayats – constitutional (33%), not 50%.
• ⚠️ 50% women reservation – state legislative action (e.g., Bihar, 2006).
• ⚠️ Twelfth Schedule – 18 subjects.
• ⚠️ Eleventh Schedule – 29 subjects.
• ⚠️ Urban Local Bodies – State List, Entry 5.
• ⚠️ S.R. Bommai – 1994, federalism.
• ⚠️ Nagraj case – 2006, constitutional amendment doctrine.
• ⚠️ AMRUT – launched 2015, successor to JnNURM.
• ⚠️ Smart Cities Mission – 2015, 100 cities.
• ⚠️ Gram Nyayalayas Act – 2008, not part of panchayats.