The act is a significant landmark in the evolution of grass root democratic institutions in the country. It transfers the representative democracy into participatory democracy.
- Changes in Constitution
- The act added Part-IX to the Constitution of India, with the title 'The Panchayats', (Articles 243 to 243 O)
- The act added Eleventh Schedule to the Constitution. This schedule contains 29 functional items of the panchayats. It deals with Article 243-G.
- Constitutionalisation of Panchayati Raj Institutions
- Gave a practical shape to the Directive Principle in Article 40.
- state governments got under constitutional obligation to adopt the new Panchayati Raj system in accordance with the provisions of the act. It no longer depended on the state's will.
- Two kinds of provisions
- Compulsary (must be included in the state laws creating the new panchayati raj system)
- Voluntary (to ensures the right of the states to take local factors like geographical, politico–administrative and others, into consideration while adopting the new Panchayati Raj system)
- Salient Features of the Panchayati Raj implemented by 73rd Amendment
- Gram Sabha
- Three Tier System
- Direct Elections for the Members of Panchayat, Indirect Elections for chairpersons of Panchayat,
- Reservation of seats for SC-ST and women
- Five year term
- State Election Commission
- Finance Commission
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