Panchayati Raj in India and Bihar: 73rd Amendment, PESA

Panchayati Raj Institutions (PRIs) are the foundation of rural local self-government in India. They bring governance closer to citizens, encourage public participation in decision-making and help address local problems through decentralised administration.

The idea of Panchayati Raj is based on the principle that people should participate directly in decisions affecting their villages. These institutions play an important role in rural development, social justice, public service delivery and the empowerment of women and marginalised communities.

The 73rd Constitutional Amendment Act, 1992, gave Panchayati Raj Institutions constitutional status and established a framework for democratic decentralisation. In Bihar, the Bihar Panchayati Raj Act, 2006, strengthened grassroots representation by providing 50% reservation for women in Panchayati Raj Institutions.

Meaning and Concept of Local Self-Government

Local self-government refers to the administration of local affairs by elected representatives of a particular area. In rural India, Panchayati Raj Institutions perform this role at the village, intermediate and district levels.

The concept is based on four important principles:

Decentralisation: Transferring administrative responsibilities and decision-making closer to the people.
Public participation: Enabling citizens to participate in local planning and governance.
Local problem-solving: Addressing issues according to the needs and priorities of individual communities.
Accountability: Making elected representatives answerable to the people they serve.

Local self-government can improve administrative efficiency because local representatives are more familiar with the problems, resources and priorities of their communities.

Evolution of Panchayati Raj in India

The institution of village self-government has a long history in India. Its structure and functions have changed over time.

Ancient and Medieval Period

During the ancient period, village assemblies and local bodies played a role in managing community affairs. Their functions varied across regions and historical periods.

During the medieval period, centralised administration expanded in many areas, although village communities continued to perform several local functions.

British Period

Several developments during British rule influenced the evolution of local self-government:

Lord Ripon’s Resolution, 1882: Encouraged local self-government and is widely regarded as a landmark in its development in India.
Royal Commission on Decentralisation, 1907: Examined the role of local institutions and recommended greater decentralisation.
Montagu–Chelmsford Reforms, 1919: Expanded provincial responsibility for local government.

Despite these developments, local institutions generally lacked adequate autonomy and resources.

Post-Independence Period

After independence, the Constitution recognised the importance of village-level governance. Article 40, a Directive Principle of State Policy, directs the State to organise village panchayats and endow them with the powers necessary to function as units of self-government.

Several committees subsequently recommended reforms to strengthen Panchayati Raj.

Important Committees on Panchayati Raj

1. Balwant Rai Mehta Committee, 1957

The committee examined the National Extension Service and Community Development Programme. It recommended democratic decentralisation through a three-tier Panchayati Raj system consisting of village, block and district institutions.

Rajasthan became the first state to introduce the Panchayati Raj system, at Nagaur on 2 October 1959, followed by Andhra Pradesh.

2. Ashok Mehta Committee, 1977

The committee recommended replacing the three-tier structure with a two-tier system comprising the Zila Parishad and Mandal Panchayat. It also emphasised the need to strengthen political participation and local governance.

3. G.V.K. Rao Committee, 1985

The committee recommended strengthening Panchayati Raj Institutions in rural development and reducing the excessive concentration of developmental responsibilities in the district administration. It also proposed the creation of a District Development Commissioner.

4. L.M. Singhvi Committee, 1986

The committee recommended constitutional recognition for Panchayati Raj Institutions and emphasised the importance of Gram Sabhas and village-level democracy. Its recommendations contributed to the broader movement for constitutional status for local self-government.

The 73rd Constitutional Amendment Act, 1992

The 73rd Constitutional Amendment Act, 1992, was a landmark in the evolution of rural local governance. It came into force on 24 April 1993, which is why 24 April is observed as National Panchayati Raj Day.

The amendment added Part IX, titled “The Panchayats,” to the Constitution, covering Articles 243 to 243-O. It also added the Eleventh Schedule, which lists 29 subjects that may be entrusted to Panchayats.

Major Provisions

1. Constitutional status: Panchayati Raj Institutions received constitutional recognition.

2. Three-tier structure: A system of village, intermediate and district Panchayats was envisaged, subject to the constitutional exception for states with a population not exceeding 20 lakh, which need not establish the intermediate tier.

3. Gram Sabha: The Gram Sabha was recognised as the foundation of village-level democratic participation.

4. Regular elections: Panchayats were given a five-year term, with elections to be held before the expiry of the term or, in the case of dissolution, generally within six months, subject to the constitutional exception for the remainder of a term being less than six months.

5. Reservation: Seats are reserved for Scheduled Castes and Scheduled Tribes in proportion to their population. At least one-third of directly elected seats and at least one-third of chairperson positions are reserved for women under the constitutional framework.

6. State Election Commission: The State Election Commission supervises, directs and controls Panchayat elections.

7. State Finance Commission: A State Finance Commission is constituted every five years to review the financial position of Panchayats and recommend measures to improve their finances.

8. Eleventh Schedule: The schedule identifies 29 subjects, including agriculture, minor irrigation, rural housing, drinking water, roads, health, education and poverty alleviation, which may be devolved to Panchayats.

Institutional Structure of Panchayati Raj

India’s Panchayati Raj system generally operates through three levels.

1. Gram Sabha

The Gram Sabha consists of all persons registered in the electoral rolls relating to a village within the Gram Panchayat area.

Its important functions include:

Discussing local development needs.
Participating in village planning.
Reviewing the implementation of development programmes.
Promoting transparency and accountability.
Providing a platform for citizens to raise local concerns.

A strong Gram Sabha can make local governance more participatory and reduce the risk of decisions being controlled by a small group of individuals.

2. Gram Panchayat

The Gram Panchayat is the village-level elected body responsible for local administration and development.

Its functions may include sanitation, drinking water, village roads, street lighting, public health and the implementation of rural development programmes, depending on the powers devolved by the state.

3. Panchayat Samiti or Intermediate Panchayat

The intermediate-level Panchayat coordinates development activities across Gram Panchayats within its jurisdiction. Its precise name and structure vary across states.

4. Zila Parishad

The Zila Parishad operates at the district level. It supports district-level planning, coordinates development programmes and works with other local institutions and government departments.

The actual responsibilities of these institutions depend significantly on the extent of functional, financial and administrative devolution by state governments.

Elections, Representation and Tenure

The Constitution establishes a framework to ensure regular elections and representative local government.

Direct elections: Seats in Panchayats are filled through direct elections.
Reservation for SCs and STs: Seats are reserved in proportion to their population in the relevant area.
Women’s representation: At least one-third of directly elected seats and chairperson positions are reserved for women under the constitutional minimum, with several states providing a higher percentage.
Five-year tenure: Panchayats normally have a five-year term.
Minimum age: A person must have attained 21 years of age to be eligible to contest a Panchayat election.
Disqualification: Eligibility and disqualification are governed by constitutional provisions and applicable state laws.

Regular elections are essential for maintaining democratic legitimacy and ensuring that local representatives remain accountable to citizens.

Significance of Panchayati Raj Institutions

1. Strengthening Grassroots Democracy

Panchayats allow citizens to participate in governance beyond state and national elections. They encourage political awareness, develop local leadership and provide opportunities for communities to influence public decisions.

2. Participatory Development Planning

Local bodies can identify community-specific priorities and contribute to planning for roads, drinking water, sanitation, education and other essential services.

3. Women’s Empowerment

Reservation has created opportunities for women to enter public life, develop leadership skills and influence local development priorities.

4. Social Justice

Panchayati Raj Institutions provide representation to Scheduled Castes, Scheduled Tribes, women and other eligible groups under the relevant constitutional and legal provisions.

5. Improved Public Service Delivery

Local bodies can help identify gaps in public services and monitor the implementation of welfare schemes.

6. Better Use of Local Resources

Local participation can improve the identification, planning and management of community resources, including water bodies, village infrastructure and common facilities.

7. Development of Political Leadership

Panchayats provide a platform for people to gain experience in public administration and democratic decision-making.

Challenges Facing Panchayati Raj Institutions

Despite constitutional recognition, several problems limit the effectiveness of Panchayati Raj Institutions.

1. Incomplete Devolution of Powers

Many Panchayats lack sufficient administrative and fiscal authority. State governments and their departments continue to control important decisions, limiting local autonomy.

2. Inadequate Financial Resources

Panchayats often depend heavily on grants from higher levels of government. Their own revenue sources, including local taxes and fees, remain underdeveloped.

3. Weak State Finance Commissions

The recommendations of State Finance Commissions are not always implemented adequately or on time. This can create uncertainty in the transfer of resources to local bodies.

4. Shortage of Staff

Many Panchayats lack sufficient personnel to perform their responsibilities. They may also have limited authority to recruit staff, determine salaries or manage employees.

5. Weak Gram Sabha Participation

Low public awareness, limited participation and inadequate transparency can weaken community oversight. This reduces the ability of citizens to hold elected representatives accountable.

6. Political and Administrative Interference

State authorities and officials may exercise excessive control over local decisions. Such interference can reduce the independence of elected Panchayats.

7. Capacity and Infrastructure Gaps

Limited training, inadequate office infrastructure and insufficient digital facilities make it difficult for Panchayats to manage finances, prepare plans and monitor programmes effectively.

8. Irregular Elections and Administrative Delays

Delays in electoral processes, ward delimitation and other administrative arrangements can disrupt democratic continuity.

9. Limited Control over Development Functions

Although the Eleventh Schedule identifies 29 subjects, the actual transfer of responsibilities varies among states. Some Panchayats continue to have limited authority over important development functions.

Panchayats (Extension to Scheduled Areas) Act, 1996: PESA

The Panchayats (Extension to Scheduled Areas) Act, 1996, extends the relevant provisions of Part IX of the Constitution to Fifth Schedule areas, subject to the modifications and safeguards specified in the Act. It applies to the Fifth Schedule areas of ten states: Andhra Pradesh, Chhattisgarh, Gujarat, Himachal Pradesh, Jharkhand, Madhya Pradesh, Maharashtra, Odisha, Rajasthan and Telangana. Bihar has no Fifth Schedule areas, so PESA does not apply there; neighbouring Jharkhand notified its PESA rules only in January 2026.

PESA seeks to strengthen tribal self-governance by recognising the role of Gram Sabhas and traditional community institutions in Scheduled Areas.

Major Features of PESA

Consultation on land acquisition: Gram Sabhas or appropriate Panchayats must be consulted in the prescribed circumstances concerning land acquisition and resettlement in Scheduled Areas.
Minor forest produce: The law recognises important community rights relating to ownership of minor forest produce.
Management of village resources: Gram Sabhas have a role in safeguarding community resources and local traditions.
Minor minerals: Powers relating to recommendations and approvals for minor mineral licences or leases are provided under the Act.
Social and economic development: Gram Sabhas have responsibilities in approving plans and safeguarding the interests of Scheduled Tribe communities under the applicable framework.

PESA is significant because it seeks to ensure that development in tribal areas respects local traditions, community participation and the rights of tribal populations.

Second Administrative Reforms Commission Recommendations

The Second Administrative Reforms Commission made several recommendations to improve rural governance.

Appropriate Panchayat size: Gram Panchayats should be structured in a way that enables effective administration and public participation.
Personnel powers: Panchayats should receive greater authority to recruit and regulate staff.
Financial autonomy: Local bodies should have greater control over their budgets and adequate revenue sources.
Reduced interference: State governments should avoid unnecessary interference in the decisions of elected Panchayats.
Activity mapping: States should clearly identify and transfer responsibilities relating to the 29 subjects in the Eleventh Schedule.
Stronger local finances: Panchayats should be able to mobilise and manage their own funds more effectively.

These reforms would help transform Panchayats from implementing agencies into genuine institutions of local self-government.

Financial Position of Panchayati Raj Institutions

Finance is central to the effective functioning of Panchayats. The constitutional framework allows them to receive grants and, subject to state law, levy and collect specified taxes, duties, tolls and fees.

Sources of Finance

1. Own-source revenue: Property-related taxes where authorised, market fees, service charges and other locally permitted taxes and fees.

2. Central Finance Commission grants: Grants recommended for rural local bodies under the applicable Finance Commission framework.

3. State Finance Commission transfers: Resources allocated by state governments in accordance with SFC recommendations and state policy.

4. Scheme-based funding: Funds linked to rural development programmes, housing, employment, sanitation and other public services.

5. Tied grants: Funds earmarked for specified purposes, such as drinking water and sanitation.

6. Untied grants: Flexible funding that allows local bodies to address eligible local priorities.

Challenges in Panchayat Finances

Panchayats often have a narrow tax base, inadequate staff and weak accounting systems. Heavy dependence on grants limits their financial independence, while delayed transfers can disrupt development work.

Panchayats also suffer from gaps in financial data, accounting and auditing; the Fifteenth Finance Commission made the online availability of audited accounts a condition for local-body grants. Strengthening financial transparency and local revenue mobilisation is therefore essential.

Government Initiatives to Strengthen Panchayati Raj

1. e-Gram Swaraj

e-Gram Swaraj is a digital platform intended to improve Panchayat planning, accounting, monitoring and transparency.

2. Gram Panchayat Development Plan

The Gram Panchayat Development Plan (GPDP) promotes participatory annual planning. It helps local bodies identify priorities and align development activities with community needs.

3. Rashtriya Gram Swaraj Abhiyan

The Rashtriya Gram Swaraj Abhiyan aims to strengthen Panchayati Raj Institutions through capacity building, training and improvements in local governance.

4. Panchayat Sashaktikaran and Capacity Building

Training programmes can help elected representatives and officials improve their understanding of public finance, administration, digital systems and development planning.

5. Finance Commission Grants

Finance Commission grants provide an important source of funding for rural local bodies. Tied and untied grants can support essential services and location-specific development needs, subject to the applicable guidelines.

Importance of Women’s Participation in Panchayati Raj

Women’s representation in Panchayats has expanded opportunities for political participation and grassroots leadership.

1. Greater Attention to Women’s Needs

Women representatives may be more responsive to issues involving maternal healthcare, sanitation, drinking water, education and safety, although outcomes depend on their actual authority and participation.

2. Community Development

Women-led local bodies can influence the prioritisation of public services and infrastructure according to local needs.

3. Political Empowerment

Grassroots political experience can help women develop leadership, negotiation and administrative skills and create pathways to participation at higher levels of government.

4. Challenges of Proxy Representation

In some areas, elected women representatives face interference from male relatives, sometimes described through the term “sarpanch pati.” Such practices undermine the purpose of reservation by limiting the independent exercise of elected authority.

Measures to Strengthen Women’s Leadership

Provide leadership and administrative training.
Ensure access to information, budgets and official records.
Strengthen complaint mechanisms against interference.
Promote women’s federations and peer-support networks.
Improve digital and legal literacy.
Encourage Gram Sabha participation and public accountability.

Reservation is an important starting point, but genuine empowerment requires women representatives to exercise their authority independently.

Status of Panchayati Raj in Bihar

Bihar’s experience illustrates both the importance of constitutional decentralisation and the difficulties involved in establishing effective local governance.

Bihar Panchayati Raj Act, 1993

Following the 73rd Constitutional Amendment, Bihar enacted the Bihar Panchayati Raj Act, 1993. The legislation provided a framework for Panchayat elections, representation and rural local governance.

However, implementation faced delays and legal challenges concerning reservation and elections.

Panchayat Elections After 2000

Bihar had held no panchayat elections since 1978. The first polls under the new law took place only in 2001, a gap of 23 years, after prolonged litigation over reservation.

These events highlight the importance of clear legal frameworks and timely elections for democratic decentralisation.

Bihar Panchayati Raj Act, 2006

The Bihar Panchayati Raj Act, 2006, replaced the 1993 framework and strengthened representation for marginalised communities. Besides reservation for women, it reserved seats for the Extremely Backward Classes (EBCs) along with Scheduled Castes and Scheduled Tribes.

A significant feature was the provision of 50% reservation for women in Panchayati Raj Institutions, including seats and chairperson positions across the three tiers, subject to the state law.

This measure made Bihar an important example of expanded women’s representation in grassroots governance.

Panchayat elections in 2026

Bihar’s panchayats were last elected in 2021, in 11 phases between September and December, so their five-year term ends around December 2026. As of 21 October 2026 the State Election Commission had not announced a schedule; the state government has said the polls will follow the delimitation of panchayats. The next elections are expected to use multi-post EVMs for all six posts (mukhiya, ward member, sarpanch, panch, panchayat samiti member and zila parishad member) for the first time, with a fresh rotation of reserved seats.

Major Panchayati Raj Institutions in Bihar

1. Gram Panchayat

The Gram Panchayat performs village-level administrative and development functions. The Mukhiya is the elected head of the Gram Panchayat under Bihar’s framework.

2. Panchayat Samiti

The Panchayat Samiti operates at the block level and helps coordinate development activities among Gram Panchayats.

3. Zila Parishad

The Zila Parishad operates at the district level and contributes to district-level development planning and coordination.

4. Gram Kachahari

The Gram Kachahari is a village-level judicial institution established under Bihar’s Panchayati Raj framework. It is headed by an elected Sarpanch, assisted by elected Panchs. It deals with specified minor civil and criminal matters within the jurisdiction granted by law.

It is distinct from the Gram Panchayat: the Gram Kachahari focuses on local dispute resolution, whereas the Gram Panchayat handles administration and development.

Digital and Institutional Initiatives in Bihar

e-Panchayat Bihar

The e-Panchayat initiative seeks to digitise the workflows and services of Gram Panchayats, block-level Panchayats and Zila Parishads. It aims to improve transparency, accountability and administrative efficiency.

PRD Nischay Soft

PRD Nischay Soft supports digital monitoring and reporting for the Saat Nischay programme in rural areas. It is intended to improve implementation tracking and financial transparency.

Bihar State Panchayat Resource Institute

The Bihar State Panchayat Resource Institute (BSPRI) supports capacity building among elected representatives and Panchayat officials. Its work includes training, promoting local self-government and facilitating rural socio-economic development.

These initiatives can strengthen local institutions when accompanied by adequate staffing, digital access, regular training and transparent financial systems.

Challenges Facing Panchayati Raj in Bihar

1. Limited Financial Autonomy

Panchayats need stronger local revenue sources and predictable transfers to fulfil their responsibilities effectively.

2. Administrative and Staffing Constraints

Shortages of trained personnel can affect planning, programme implementation and financial management.

3. Capacity-Building Requirements

Elected representatives need training in budgeting, public administration, digital tools and the implementation of development schemes.

4. Ensuring Genuine Women’s Empowerment

Although Bihar provides 50% reservation for women, their effective participation must be protected against proxy control and informal interference.

5. Transparency and Accountability

Public awareness, Gram Sabha participation, social audits and transparent reporting need to be strengthened to reduce corruption and improve service delivery.

6. Effective Devolution of Functions

Panchayats need clearly defined responsibilities, adequate funds and appropriate personnel to carry out the functions assigned to them.

Way Forward: Strengthening Panchayati Raj Institutions

1. Ensure the Three Fs

Effective decentralisation requires the transfer of functions, funds and functionaries to local governments. Without all three, Panchayats cannot operate as genuine institutions of self-government.

2. Strengthen State Finance Commissions

State Finance Commissions should be constituted regularly, their reports should be presented to state legislatures, and their recommendations should receive serious consideration.

3. Improve Own-Source Revenue

Panchayats should improve the assessment and collection of authorised taxes and fees, while ensuring that local revenue measures are fair and practical.

4. Build Administrative Capacity

Regular training, adequate staffing and access to technical support can improve planning, budgeting, implementation and monitoring.

5. Strengthen Gram Sabhas

Gram Sabha meetings should be accessible, inclusive and transparent. Citizens should receive information about budgets, works, beneficiaries and development plans.

6. Promote Digital Governance

Digital platforms can improve record-keeping, financial monitoring, public disclosure and service delivery. They should be accompanied by digital literacy and reliable infrastructure.

7. Ensure Independent Women’s Participation

Women representatives should have direct access to official information, administrative support and grievance mechanisms to enable them to exercise their elected responsibilities independently.

8. Strengthen Auditing and Accountability

Regular audits, social audits, transparent reporting and appropriate use of digital financial systems can reduce misuse of public funds.

9. Improve Coordination Between Government Levels

Clear allocation of responsibilities can reduce overlap between Panchayats, state departments and parallel agencies. Local bodies should have a meaningful role in planning and implementing rural development programmes.

10. Focus on Inclusive Local Development

Panchayat plans should address the needs of women, Scheduled Castes, Scheduled Tribes, persons with disabilities and other vulnerable groups, while prioritising essential services and sustainable resource management.

Conclusion

Panchayati Raj Institutions are essential for strengthening democracy, promoting participatory development and ensuring that governance responds to local needs. The 73rd Constitutional Amendment created a strong constitutional foundation for rural self-government, while PESA recognises the importance of community-based governance in Scheduled Areas.

However, constitutional recognition alone is insufficient. Panchayats require meaningful powers, adequate financial resources, trained personnel, strong Gram Sabhas and effective accountability mechanisms.

Bihar has taken important steps through its Panchayati Raj legislation, 50% reservation for women, Gram Kachaharis and digital governance initiatives. The next priority is to ensure that these institutions possess the authority and capacity to deliver results.

Strengthening Panchayati Raj through genuine decentralisation, financial autonomy, inclusive participation and transparent administration can deepen grassroots democracy and accelerate rural development in India.

Frequently asked questions

When did the 73rd Constitutional Amendment come into force?

On 24 April 1993. That is why 24 April is celebrated as National Panchayati Raj Day.

Which state first gave 50% reservation to women in panchayats?

Bihar, under the Bihar Panchayat Raj Act, 2006. The Constitution itself requires at least one-third reservation for women (Article 243D).

What is a Gram Kachahari?

A village court under Bihar’s panchayat law. It is headed by an elected Sarpanch with elected Panchs and settles minor civil disputes and petty criminal cases locally.

When are the next panchayat elections in Bihar?

They are due by around December 2026, when the term of the panchayats elected in 2021 ends. As of 21 October 2026 the schedule had not been announced; the state says the polls will follow delimitation.

More BPSC Polity notes

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