Anand Classes presents detailed Panchayats and Municipalities NDA Polity Notes covering the 73rd and 74th Constitutional Amendments. These notes explain the constitutional provisions related to Panchayati Raj Institutions (PRIs) and Urban Local Bodies (ULBs), their structure, powers, reservations, elections, and functions under Articles 243–243O and 243P–243ZG. Designed for NDA GAT Polity preparation, the content includes theory, FAQs, and MCQs. Click the print button to download study material and notes.

Panchayats (73rd Constitutional Amendment)

The Panchayati Raj System reflects the Gandhian philosophy of self-governance, where village councils act as units of local government. It was introduced through the 73rd Constitutional Amendment Act, 1992, which added Part IX to the Constitution (Articles 243 to 243-O) and the Eleventh Schedule.

Key Features of Panchayats

• Three-Tier Structure:
  • Gram Panchayat (village level)
  • Panchayat Samiti (block/intermediate level)
  • Zila Parishad (district level)
• Duration:
  • The term of every Panchayat is five years from the date of its first meeting.
• Elections:
  • Elections must be held:
    • Before the expiry of five years.
    • Within six months from the date of dissolution.
  • Exception: If the remaining term of a dissolved Panchayat is less than six months, no election is required for the remainder of that period.
• Reservation of Seats:
  • Seats are reserved for Scheduled Castes (SCs) and Scheduled Tribes (STs) in every Panchayat.
  • One-third of the total seats are reserved for women, including those from SCs and STs.
  • Reservation for Backward Classes (OBCs) is left to the discretion of the State Government.

Significance

Panchayats are the foundation of rural democracy, empowering villages to plan and implement their own development programs.

State Finance Commission

The 73rd Amendment also provides for the State Finance Commission to ensure proper financial support for Panchayats.

Functions and Recommendations

The State Finance Commission, appointed by the Governor of the State every five years, reviews the financial position of Panchayats and recommends:

1. Distribution of taxes, tolls, and fees between the State and Panchayats.
2. Assignment of specific taxes or duties to Panchayats.
3. Principles to determine grant-in-aid to Panchayats.
4. Measures to improve the financial health of local bodies.

This ensures fiscal decentralization, enabling Panchayats to function effectively.

Municipalities (74th Constitutional Amendment)

The Municipalities are the urban counterpart of Panchayats, introduced through the 74th Constitutional Amendment Act, 1992, which added Part IX-A (Articles 243-P to 243-ZG) and the Twelfth Schedule.

Key Features of Municipalities

• Historical Background:
  • The first Municipal Corporation in India was established in Madras Presidency (now Chennai) in 1687 during British rule.
• Types of Urban Local Bodies:
  1. Municipal Corporation – For large urban areas.
  2. Municipal Council (Municipality) – For smaller urban areas.
  3. Nagar Panchayat – For areas in transition from rural to urban.
• Duration:
  • Every Municipality has a term of five years from the date of its first meeting.
• Elections:
  • Elections must be held:
    • Before the expiry of the five-year term.
    • Within six months of dissolution.
  • Exception: No election is required if the remaining period is less than six months.

Key Takeaways for NDA Exam

• 73rd Amendment: Panchayati Raj Institutions (Part IX, Eleventh Schedule).
• 74th Amendment: Urban Local Bodies/Municipalities (Part IX-A, Twelfth Schedule).
• Term of Office: Panchayats and Municipalities – 5 years.
• State Finance Commission: Reviews financial position of Panchayats every 5 years and advises the Governor.

NDA Frequently Asked Questions (FAQs) on Panchayats, State Finance Commission, and Municipalities

FAQ 1: What is the Panchayati Raj System and why was it introduced in India?

Answer:
The Panchayati Raj System is a three-tier structure of local self-government introduced through the 73rd Constitutional Amendment Act, 1992 to strengthen democracy at the grassroots level. It is based on Gandhian philosophy, which emphasized village self-governance. Panchayats are responsible for planning and implementing development activities in rural areas, thus empowering people to participate in decision-making.
This topic is an important part of the Indian Polity syllabus for UPSC NDA, and candidates should focus on constitutional details for better preparation using resources like Anand Classes download UPSC NDA notes, download UPSC NDA study material pdf, UPSC NDA polity notes preparation.

FAQ 2: What is the duration of a Panchayat and how are elections conducted?

Answer:
Every Panchayat has a fixed duration of five years from the date of its first meeting. Elections must be held before the expiry of five years or within six months of its dissolution. However, if the remainder of the dissolved Panchayat’s term is less than six months, it is not necessary to hold elections for that short period. This ensures continuity in local governance.
These election-related provisions are frequently tested in the UPSC NDA polity section, making it essential to revise using materials like Anand Classes download UPSC NDA notes, download UPSC NDA study material pdf, UPSC NDA polity notes preparation.

FAQ 3: What are the provisions for reservation of seats in Panchayats?

Answer:
The Constitution provides for compulsory reservation of seats in Panchayats for Scheduled Castes (SCs) and Scheduled Tribes (STs) in proportion to their population. Additionally, one-third of the total seats are reserved for women, including seats for SCs and STs. The reservation of seats for Other Backward Classes (OBCs) is left to the discretion of the State Government.
Reservation policies are a crucial part of UPSC NDA Indian Polity questions, so aspirants should study these carefully with the help of Anand Classes download UPSC NDA notes, download UPSC NDA study material pdf, UPSC NDA polity notes preparation.

FAQ 4: What is the role of the State Finance Commission in strengthening Panchayati Raj Institutions?

Answer:
The State Finance Commission, constituted every five years by the Governor, reviews the financial position of Panchayats and makes recommendations on:

1. Distribution of taxes, tolls, and fees between the State and Panchayats.
2. Assignment of taxes, duties, or fees to Panchayats.
3. Principles for granting financial aid to Panchayats.
   These recommendations help ensure that Panchayats have adequate resources to function effectively and promote rural development.
   For UPSC NDA exam preparation, understanding the functions of the State Finance Commission is vital. Candidates can enhance their preparation with Anand Classes download UPSC NDA notes, download UPSC NDA study material pdf, UPSC NDA polity notes preparation.

FAQ 5: What are the key features of the 73rd Constitutional Amendment Act?

Answer:
The 73rd Amendment Act (1992) introduced Part IX to the Constitution (Articles 243 to 243-O) and the Eleventh Schedule. It established:

• A three-tier structure of Panchayats at the village, block, and district levels.
• A five-year term for every Panchayat.
• Reservation of seats for SCs, STs, and women.
• Creation of the State Finance Commission to review financial arrangements.
  This Act forms the backbone of local self-government in rural India and is a frequently asked topic in the UPSC NDA polity syllabus. For focused study, aspirants can refer to Anand Classes download UPSC NDA notes, download UPSC NDA study material pdf, UPSC NDA polity notes preparation.

FAQ 6: What is the difference between Panchayats and Municipalities?

Answer:
While Panchayats operate in rural areas under the 73rd Amendment, Municipalities function in urban areas under the 74th Constitutional Amendment Act, 1992. Municipalities include Municipal Corporations, Municipal Councils, and Nagar Panchayats depending on the size and population of the urban area. Both bodies are designed to ensure local self-governance, but their scope and jurisdiction differ based on rural and urban needs.
Understanding these differences is crucial for scoring well in UPSC NDA Indian Polity questions. Candidates should revise using Anand Classes download UPSC NDA notes, download UPSC NDA study material pdf, UPSC NDA polity notes preparation.

FAQ 7: What is the duration of Municipalities and how are elections conducted?

Answer:
Every Municipality has a five-year term from the date of its first meeting. Elections must be held before the expiry of five years or within six months of dissolution, except when the remainder of the dissolved term is less than six months. The first Municipal Corporation in India was established in Madras (now Chennai) in 1687, setting the foundation for modern urban governance.
This historical and constitutional fact is a favourite in the UPSC NDA polity exam, and candidates can strengthen their knowledge through Anand Classes download UPSC NDA notes, download UPSC NDA study material pdf, UPSC NDA polity notes preparation.

NDA MCQs on Panchayats, State Finance Commission, and Municipalities

MCQ 1. The 73rd Constitutional Amendment Act of 1992 relates to which of the following?

A) Urban Local Bodies
B) Rural Local Bodies
C) Interstate Trade and Commerce
D) Fundamental Rights

Answer: ✅ B) Rural Local Bodies

Explanation:
The 73rd Amendment Act, 1992 introduced Part IX to the Constitution, dealing with Panchayati Raj Institutions (PRIs) in rural areas. It provides a three-tier structure—Gram Panchayat (village), Panchayat Samiti (block), and Zila Parishad (district)—for local self-governance in rural India.
(Important for UPSC NDA Polity preparation, refer to Anand Classes download UPSC NDA notes, UPSC NDA study material pdf.)

MCQ 2. The maximum duration of a Panchayat is:

A) 4 years from the date of election
B) 5 years from the date of first meeting
C) 6 years from the date of election
D) 5 years from the date of election

Answer: ✅ B) 5 years from the date of first meeting

Explanation:
As per Article 243E, the term of every Panchayat is five years from the date appointed for its first meeting. Elections must be conducted before expiry of the term or within six months of dissolution.
(This question is repeatedly asked in NDA polity exams; revise using Anand Classes UPSC NDA polity notes preparation.)

MCQ 3. Which body recommends the distribution of taxes between the State and the Panchayats?

A) Election Commission of India
B) Finance Commission of India
C) State Finance Commission
D) Planning Commission

Answer: ✅ C) State Finance Commission

Explanation:
The State Finance Commission, constituted every five years by the Governor, reviews the financial position of Panchayats and recommends:

• Distribution of taxes, duties, tolls, and fees between the State and Panchayats.
• Principles for grant-in-aid to Panchayats.
  (For NDA exam, remember that the Central Finance Commission deals with Union–State finances, while the State Finance Commission focuses on State–Panchayat relations.)

MCQ 4. Which of the following statements is correct regarding reservation in Panchayats?

A) Only SC seats are reserved.
B) One-third of the seats are reserved for women.
C) Only OBC reservation is mandatory.
D) There is no reservation for STs.

Answer: ✅ B) One-third of the seats are reserved for women.

Explanation:
The 73rd Amendment mandates:

• Reservation of seats for SCs and STs in proportion to their population.
• One-third of all seats (including SC/ST seats) reserved for women, ensuring their participation in governance.
• Reservation for OBCs is left to the discretion of the State Government.
  (Such reservation-related facts are frequent NDA polity questions. Practice with UPSC NDA study material pdf for accuracy.)

MCQ 5. The first Municipal Corporation in India was established in:

A) Bombay (Mumbai) in 1726
B) Calcutta (Kolkata) in 1850
C) Madras (Chennai) in 1687
D) Delhi in 1862

Answer: ✅ C) Madras (Chennai) in 1687

Explanation:
The first Municipal Corporation in India was set up in Madras (now Chennai) in 1687 during the British rule. It laid the foundation for urban local governance.
(Important historical fact often included in NDA polity MCQs—remember this for Anand Classes UPSC NDA polity notes preparation.)

MCQ 6. The 74th Constitutional Amendment Act deals with which of the following?

A) Panchayati Raj in rural areas
B) Finance Commission
C) Urban Local Bodies
D) Inter-State Council

Answer: ✅ C) Urban Local Bodies

Explanation:
The 74th Amendment Act, 1992 added Part IX-A to the Constitution, dealing with Municipalities (urban local bodies) like Municipal Corporations, Municipal Councils, and Nagar Panchayats. It provides for urban self-governance similar to Panchayats in rural areas.
(A common NDA exam question; revise using UPSC NDA polity notes preparation and Anand Classes study material.)

MCQ 7. If a Panchayat is dissolved before completing its term, elections must be held within:

A) 3 months from the date of dissolution
B) 4 months from the date of dissolution
C) 6 months from the date of dissolution
D) 1 year from the date of dissolution

Answer: ✅ C) 6 months from the date of dissolution

Explanation:
As per Article 243E, elections for a dissolved Panchayat must be conducted within six months. However, if the remaining term is less than six months, elections are not mandatory for that period.
(Important NDA polity concept for quick recall during MCQ practice.)

MCQ 8. Which of the following Schedules was added to the Constitution by the 73rd Amendment Act?

A) Tenth Schedule
B) Eleventh Schedule
C) Ninth Schedule
D) Twelfth Schedule

Answer: ✅ B) Eleventh Schedule

Explanation:
The Eleventh Schedule lists 29 subjects on which Panchayats have the authority to function, such as agriculture, rural development, drinking water, and health.
(NDA aspirants should also remember that the Twelfth Schedule relates to Municipalities as per the 74th Amendment.)

✅ Key Takeaways for NDA Preparation:

• 73rd Amendment → Panchayats → Eleventh Schedule.
• 74th Amendment → Municipalities → Twelfth Schedule.
• State Finance Commission → Reviews Panchayat finances every 5 years.
• Term of Office → Panchayats/Municipalities → 5 years.

For in-depth practice, candidates can use resources like Anand Classes download UPSC NDA notes, UPSC NDA study material pdf, UPSC NDA polity notes preparation to strengthen conceptual clarity and accuracy in NDA exam-style MCQs.

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