The Minister of Panchayati Raj Shri V. Kishore Chandra Deo has said that as per 73^rd Amendment to the Constitution, Part IX of the Constitution mandates (a) Constitution of Panchayats at Village, Intermediate and District levels except for States having a population of less than 20 lakhs which may not constitute a Panchayat at the Intermediate level; (b) Regular elections to the Panchayats every five years; (c) Reservation of seats and offices of chairpersons for Scheduled Castes, Scheduled Tribes and women at each level of Panchayats and (d) Constitution of State Finance Commission and State Election Commission. Similarly as per the 74^th Amendment to the Constitution, Part IX A of the Constitution mandates (a) Constitution of Municipalities, Ward Committees etc. (b) Regular elections to Municipalities (c) Reservation of seats and offices of chairpersons for Scheduled Castes, Scheduled Tribes and women and (d) Constitution of District Planning Committee at the District level to consolidate the plans prepared by the Panchayats and the Municipalities in the District and to prepare a draft development plan for the district as a whole. These mandatory provisions have ensured the existence of democratic local bodies.

Under Articles 243G of Part IX and Article 243W of Part IX A of the Constitution, State Legislatures are to endow respectively to the Panchayats and Municipalities with powers and authority to enable them to function as institutes of self governance. Since Articles 243G and 243W allow discretion to the States in the matter of devolution of powers respectively to Panchayats and Municipalities, States vary in the extent to which they have devolved powers to the Panchayats and Municipalities to plan, implement and monitor schemes for economic development and social justice. The present status of devolution of Functions, Funds and Functionaries (3 Fs) to Panchayats by various States/UTs is given at Annexure.

Within the Constitutional framework, ‘Local government’ is a State subject and it is up to the States to pass legislations. Ministry of Panchayati Raj (MoPR) and Ministry of Urban Development have continuously urged States/UTs to devolve powers to the Panchayats and Municipalities respectively in accordance with the Constitutional stipulation.  The Ministry of Panchayati Raj has no proposal to bring in amendment in legislation in this respect. Replying to a written question in Rajya Sabha today, he said,

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PKM/DB