Decentralization In India:-

Decentralization is the transfer of political, administrative, and fiscal responsibilities

to locally elected bodies in urban and rural areas, and the empowerment of
communities to exert control over these bodies. In rural India, locally elected bodies
are the Panchayati Raj Institution (PRIs) at the district, block and village levels. The
decentralization process in distinct for urban and rural areas. The 73rd amendment
governs rural decentralization, where as the 74th amendment mandates urban
decentralization.

Introduction to Panchayati Raj:- Rural development is one of the main objectives

of Panchayati Raj and this has been established in all states of India except
Nagaland, Meghalaya and Mizoram, in all Union Territories except Delhi. and
certain other areas. These areas include:

 The scheduled areas and the tribal areas in the states

 The hill area of Manipur for which a district council
exists and
 Darjeeling district of West Bengal for which Darjeeling Gorkha
Hill Council exists.

What is Panchayati Raj System?

Panchayati Raj System is the oldest system of local government in the Indian subcontinent.
Panchayati Raj Institutions as units of local government have been in existence in India for a
long time, in different permutations and combinations. However, it was only in 1992 that it
was officially established by the India Constitution as the third level of India’s federal
democracy through the 73rd amendment act.

→ The Panchayati Raj Institution (PRIs) consists of three levels:-

→ 73rd Amendment Act,1992:-
The 73rd Amendment Act 1992 added a new part IX to the constitution titled “The
Panchayats “ covering provisions from Article 243 to 243(O) ana a new Eleventh Schedule
covering 29 subjects within the functions of panchayats.
Salient features:
1. Gram Sabha(Article 243A) : 
The 73th Amendment envisages the Gram Sabha as the foundation of the Panchayat Raj
System to perform functions and powers entrusted to it by the State Legislatures.Gram
Sabha is a body consisting of all the people registered in the electoral rolls relating to  a
village comprised within the area of the panchayat at the village level. People use the forum
of the Gram Sabha to discuss local governance and development, and make need- based
plans for the village.

The Panchayat implements development programs under the overarching mandate,

supervision and monitoring of the Gram Sabha.

2. Three Tiers of Panchayati Raj(Article 243- B) :

 Gram Panchayat:-
In the structure of the Panchayati Raj, the Village Panchayat is the lowest unit.
There is a Panchayat for each village or a group of villages in case the population
of these villages happens to be too small. The Panchayat chiefly consists of
representatives elected by the people of the village. Only the people who are
registered as voters and do not hold any office of profit under the government
are eligible for election to the Panchayat. The ones convicted by the court for
criminal offences are disqualified from being elected.

 Panchayati Samiti:-
The Panchayat Samiti is the second  tier of the Panchayati Raj System. The Balwant
Rao Mehta Committee report has envisaged the Samiti as a single representative and
vigorous democratic institution to take charge of all aspects of development in rural
areas. Usually a Panchayat Samiti consists of 20 to 60 villages depending on area and
population. The average population under a Samiti is about 80,000 but the range is
from 35,000 to 1, 00,000.

 Zilla Parishad:-

The Zilla Parishad stands at the apex of the three-tier structure of the Panchayati Raj
system. Generally, the Zilla Parishad consists of representatives of the Panchayat
Samiti; all the members of the State Legislature and the Parliament representing a
part or whole of the district; all district level officers of the Medical, Public Health,
 Public Works, Engineering, Agriculture, Veterinary, Education and other
development departments. The Collector is also a member of the Zilla Parishad.

Every district under State Government divided into sub-divisions. Every subdivision has rural
as well as urban areas. In rural areas several villages are under control of a block (or
Panchayat Samiti). Each village has a “Panchayat”, means an institution of government
constitutedunder article 243B, for the rural areas. The Block Development Officer (B.D.O.) is
the chief executive officer of block development programs as well as coordinator of zilla
Parishad and Gram Panchayat.

Features of Administrative and Fiscal Decentralization as follows:

The Legislature of State, by Law

 Enough devolution of power, authority and responsibility for preparation and

implementation of plans for economic development and social justice.
  Assign a Panchayat such taxes, duties, tolls and fees levied and collected by
the State Government for such purposes and subject to such conditions and
limits.
 provide for making such grants-in-aid to the Panchayats from the
Consolidated Fund of the State.

3 . Reservations in Panchayats(Article 243D) : 

Seats shall be reserved for-(a) the Scheduled Castes; and (b) the Scheduled Tribes, 

(i) There is a provision of reservation of seats for SCs and STs at every level of  the
Panchayat. The seats are to be reserved for SCs and STs in proportion to their 
population at each level. 

(ii) Not less than one-third of the total number of seats shall be reserved for women 
belonging to the Scheduled Castes or the Scheduled Tribes. 

(iii) Not less than one-third (including the number of seats reserved for women  belonging
to the Scheduled Castes and the Scheduled Tribes) of the total number of  seats to be
filled by direct election in every Panchayat shall be reserved for women  and such seats
may be allotted by rotation to different constituencies in a  Panchayat. 

(iv) The offices of the Chairpersons in the Panchayats at the village or any other level  shall
be reserved for the Scheduled Castes, the Scheduled Tribes and women in such 
manner as the Legislature of a State. 

(v) The reservation of seats under clauses (1) and (2) and the reservation of offices of 
Chairpersons (other than the reservation for women) under clause (4) shall cease to 
have effect on the expiration of the period specified in article 334. 

4. State Election Commission(Article 243K): 

Article 243K enshrines the provisions with respect to elections of the Panchayats. This
article provides for constitution of a State Election Commission in respect of the
Panchayats. All members of the Panchayat whether or not directly elected shall have the
right to vote in  the meetings of the Panchayats. The chairperson of a Panchayat at the
intermediate and  district level shall be elected from among the directly elected members
representing the  territorial constituencies. This State Election Commission would have the
power to  supervise, direct and control the elections to the Panchayats and also prepare
the electoral  rolls. 
The article maintains the independence of the election commission by making provisions
that the election commissioner  would be removed only by manner and  on same grounds
as a Judge of the High Court. 

→ Duration of Panchayats (5 years term of election;-

A fixed tenure of five years for Panchayats from the data appointed for its first meeting and
the tenure cannot be extended. However, if a Panchayat is dissolved before the expiry of its
term, election is to conducted within a period of six months of the dissolution to
reconstitute the Panchayat for the remainder of the terms of the term provided the
remainder of the period is not less than six months. The Panchayats shall be constituted
before the expiry of its tenure of five years, Amendment of law to dissolve the Panchayats
at any level is also prohibited. A person who has attained 21 years of age is eligible for a
membership of a Panchayat.

5. State Finance Commission(Article 243-I) :

After the expiration of every fifth year,The Governor of aState shall constitute a Finance
Commissionto review the financial position of as well as measure provided funds use by the
Panchayats, and to make recommendations to the Governor as to

 The distribution between the State and the Panchayats of the net proceeds of
the taxes, duties,tolls and fees leviable by the State, which may be divided
between them under this Part and theallocation between the Panchayats at all
levels of their respective shares of such proceeds.
 The determination of the taxes, duties, tolls and fees which may be assigned
to, orappropriated by, the Panchayats.
 The grants-in-aid to the Panchayats from the Consolidated Fund of the State.

6. Functions (11thSchedule, Article 243G) :

The state legislatures are needed to enact laws, to endow powers and authority to
thePanchayats to enable them to function as units of local government. The 11th schedule
enshrines thedistribution of powers between the State legislature and the Panchayats.
These 29 subjectsare listed below:-

1. Agriculture, including agricultural extension.

2. Land improvement, implementation of land reforms, land consolidation and soil conservation.

3. Minor irrigation, water management and watershed development.

4. Animal husbandry, dairying and poultry.

5. Fisheries.

6. Social forestry and farm forestry.

7. Minor forest produce.

8. Small scale industries, including food processing industries.

9. Khadi, village and cottage industries.

10. Rural housing.

11. Drinking water.

12. Fuel and fodder.

13. Roads, culverts, bridges, ferries, waterways and other means of communication.

14. Rural electrification, including distribution of electricity.

15. Non-conventional energy sources.

16. Poverty alleviation programme.

17. Education, including primary and secondary schools.

18. Technical training and vocational education.

19. Adult and non-formal education.

20. Libraries.

21. Cultural activities.

22. Markets and fairs.

23. Health and sanitation, including hospitals, primary health centres and dispensaries.

24. Family welfare.

25. Women and child development.

26. Social welfare, including welfare of the handicapped and mentally retarded.

27. Welfare of the weaker sections, and in particular, of the Scheduled Castes and the Scheduled
Tribes.

28. Public distribution system.

29. Maintenance of community assets