What is Local Self-Governance?
Historical Background
Key Points
12 points- 1.
The 73rd Amendment Act of 1992 deals with Panchayats in rural areas, while the 74th Amendment Act of 1992 deals with Municipalities in urban areas.
- 2.
Both amendments provide for a three-tier system of Panchayati Raj at the village, intermediate, and district levels, although states with a population of less than 20 lakh may not have the intermediate level.
- 3.
Regular elections to local bodies must be held every 5 years. If a local body is dissolved before its term, elections must be held within 6 months.
- 4.
Seats are reserved for Scheduled Castes (SCs) and Scheduled Tribes (STs) in proportion to their population in the local area. At least one-third of the total seats are reserved for women.
- 5.
The State Election Commission conducts elections to local bodies. This ensures independent and fair elections.
- 6.
The State Finance Commission recommends principles for the distribution of funds between the state and local bodies.
- 7.
Local bodies are responsible for preparing plans for economic development and social justice.
- 8.
States can devolve powers and responsibilities to local bodies with respect to 29 subjects listed in the Eleventh Schedule (for Panchayats) and 18 subjects listed in the Twelfth Schedule (for Municipalities).
- 9.
Gram Sabha, consisting of all registered voters in a village, is a key institution for direct democracy at the village level. It approves the village development plan and monitors its implementation.
- 10.
Municipalities are classified into three categories based on population: Nagar Panchayats (for areas transitioning from rural to urban), Municipal Councils (for smaller urban areas), and Municipal Corporations (for larger cities).
- 11.
The Governor of a state can exempt certain areas from the application of the Panchayati Raj Act, such as scheduled areas, which are governed by special provisions.
- 12.
The Constitution mandates the establishment of District Planning Committees (DPCs) to consolidate the plans prepared by Panchayats and Municipalities in the district.
Visual Insights
73rd and 74th Constitutional Amendments
Comparison of the key provisions of the 73rd and 74th Constitutional Amendments related to local self-governance.
| Feature | 73rd Amendment (Panchayats) | 74th Amendment (Municipalities) |
|---|---|---|
| Area | Rural | Urban |
| Level | Village, Intermediate, District | Nagar Panchayat, Municipal Council, Municipal Corporation |
| Subject List | Eleventh Schedule | Twelfth Schedule |
| Focus | Economic development and social justice in rural areas | Urban planning and development |
Recent Developments
6 developmentsThe Union Government has launched the Rashtriya Gram Swaraj Abhiyan (RGSA) to strengthen Panchayati Raj Institutions (PRIs) across the country. (Ongoing)
Many states are using e-governance initiatives to improve the functioning of local bodies and make them more transparent. (Ongoing)
There is an increasing focus on capacity building and training of elected representatives and officials of local bodies. (Ongoing)
The Fifteenth Finance Commission has recommended grants to local bodies to improve their financial resources. (2020-2021)
Some states are experimenting with innovative models of local governance, such as participatory budgeting and citizen charters. (Ongoing)
Debates continue regarding the actual devolution of funds, functions, and functionaries (3Fs) to local bodies, with many arguing that states need to do more in this regard. (Ongoing)
This Concept in News
2 topicsDelhi MCD Budget 2026-27 Focuses on Sanitation, Education, Health
14 Feb 2026The news about the Delhi MCD budget highlights the practical application of local self-governance principles. It demonstrates how a municipal corporation, as a unit of local government, makes decisions about resource allocation and service delivery. The budget priorities – sanitation, education, and health – reflect the immediate needs and concerns of the local population. The introduction of property tax exemptions and rebates shows how local bodies can use fiscal policies to address social and economic inequalities. The focus on improving property tax collection underscores the challenge of ensuring financial sustainability for local governments. This news reveals the complexities of balancing local needs with financial constraints and the importance of effective governance at the local level. Understanding local self-governance is crucial for analyzing the MCD budget because it provides the framework for understanding the roles, responsibilities, and challenges faced by local governments in India.
Haryana's AI Portal Receives 11,000 Budget Suggestions from Citizens
12 Feb 2026The Haryana news highlights the aspect of citizen participation in local governance, specifically in budget allocation. This news demonstrates how technology can be used to enhance citizen engagement and make governance more responsive to local needs. The AI-powered portal allows for a more efficient and comprehensive collection and analysis of citizen feedback, potentially leading to a more informed and representative budget. This challenges the traditional top-down approach to budgeting and promotes a more bottom-up, participatory model. The implications of this news are that other states may adopt similar technologies to improve citizen engagement in local governance. Understanding local self-governance is crucial for analyzing this news because it provides the context for understanding the importance of citizen participation and the role of technology in promoting decentralization and good governance at the local level. It allows us to assess whether this initiative truly empowers local communities or is merely a symbolic gesture.
Frequently Asked Questions
121. What is Local Self-Governance and what is its constitutional basis?
Local Self-Governance means that people at the local level manage their own affairs, like in villages and cities. It aims to promote grassroots democracy. Article 40 of the Constitution directs the State to organize village panchayats. Part IX and Part IXA of the Constitution deal with Panchayats and Municipalities, respectively.
Exam Tip
Remember Article 40, Part IX, and Part IXA are related to Local Self-Governance.
2. What are the key provisions of the 73rd and 74th Constitutional Amendments related to Local Self-Governance?
The 73rd Amendment deals with Panchayats, and the 74th Amendment deals with Municipalities. Both provide for regular elections every 5 years, reservation of seats for SCs/STs and women (at least one-third), and establishment of a State Election Commission to conduct elections.
Exam Tip
Focus on the election frequency, reservation of seats, and the role of the State Election Commission.
3. How does Local Self-Governance work in practice?
In practice, local bodies like Panchayats and Municipalities are responsible for managing local affairs such as roads, water, sanitation, and schools. They are expected to tailor development to the specific needs of each community. The Rashtriya Gram Swaraj Abhiyan (RGSA) aims to strengthen these institutions.
Exam Tip
Understand the practical responsibilities of local bodies and the initiatives to strengthen them.
4. What are the different types of local self-government institutions in India?
There are two main types: Panchayats in rural areas and Municipalities in urban areas. Panchayats have a three-tier system (village, intermediate, and district levels), although states with a population of less than 20 lakh may not have the intermediate level.
Exam Tip
Remember the two main types and the three-tier structure of Panchayats.
5. What is the significance of Local Self-Governance in Indian democracy?
Local Self-Governance promotes grassroots democracy by giving power to the people at the local level. It ensures that development is tailored to the specific needs of each community and fosters greater participation in governance.
Exam Tip
Understand how Local Self-Governance strengthens democracy at the grassroots level.
6. What are the challenges in the implementation of Local Self-Governance?
Challenges include inadequate funding, lack of capacity building and training for elected representatives and officials, and issues with transparency and accountability. Many states are using e-governance initiatives to address some of these challenges.
Exam Tip
Focus on the practical challenges and the measures being taken to address them.
7. What reforms have been suggested for Local Self-Governance?
Suggested reforms include increasing funding for local bodies, improving capacity building and training programs, promoting e-governance for transparency, and strengthening the role of Gram Sabhas in rural areas.
Exam Tip
Consider the various areas where reforms are needed to strengthen Local Self-Governance.
8. What are the important articles related to Panchayats as per the concept?
As per the concept, Article 40 directs the State to organize village panchayats. Part IX of the Constitution (Articles 243 to 243O) deals with Panchayats.
Exam Tip
Remember Article 40 and Part IX (Articles 243 to 243O) are directly related to Panchayats.
9. How has the idea of Local Self-Governance evolved over time in India?
The idea is very old, with ancient villages having their own councils. Lord Ripon's resolution in 1882 is considered a landmark. After independence, its importance was recognized, leading to the 73rd and 74th Amendments in 1992.
Exam Tip
Remember Lord Ripon's resolution and the 73rd and 74th Amendments as key milestones.
10. What are the limitations of Local Self-Governance in India?
Limitations include inadequate financial resources, dependence on state governments for funds, limited functional autonomy, and lack of effective participation by citizens in some areas. There is also the issue of capacity and awareness among elected representatives.
Exam Tip
Consider the factors that hinder the effective functioning of local bodies.
11. What are frequently asked aspects of Local Self-Governance in the UPSC exam?
Frequently asked aspects include the 73rd and 74th Amendments, the powers and functions of Panchayats and Municipalities, the role of the State Election Commission, and the challenges in implementation.
Exam Tip
Focus on the constitutional amendments, functions, and challenges.
12. What is the future of Local Self-Governance in India?
The future involves strengthening local bodies through increased funding, capacity building, and e-governance initiatives. Greater citizen participation and accountability are also crucial for its success.
Exam Tip
Consider the key areas for improvement and the role of technology and citizen participation.