• UGI USER
  • Feb 06, 2024
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PANCHAYAT

Focus: 

  • Panchayat Revenue Sources

About Panchayat Revenue Sources:

  • Only 1% of panchayats’ revenue was generated internally, with the majority sourced from grants by the Central and State governments.
  • Central government grants contributed 80% of the revenue, while State government grants accounted for 15%.
Source: TH

About Panchayats

The 73rd Constitutional Amendment Act, 1992, known as the Panchayati Raj Act introduced the system of panchayats in India. 

  • Three-tier System: Establishes a three-tier system of panchayats in rural areas: gram panchayat, panchayat samiti, and Zilla parishad.
  • Population Criteria: Requires the formation of a village-level panchayat for every village with a population of at least 500 persons.
  • Elections: Mandates regular elections to panchayats, ensuring democratic processes in line with the Act’s provisions.
  • Reservation:
  • Specifies reserved seats for scheduled castes, scheduled tribes, and women at all panchayat levels.
  • Reserves the office of chairpersons for Scheduled Castes, Scheduled Tribes, and women at the village and intermediate levels.
  • State Finance Commission: Constitutes finance commissions to review panchayats’ financial positions and recommend fund devolution, grants-in-aid, and taxes.
  • Powers and Functions: Defines powers, authority, and responsibilities of panchayats, empowering them in economic development, social justice, and sector-specific schemes.
  • State Election Commission: Establishes a State Election Commission to conduct elections for local governments across the three tiers.