The 73rd Amendment Act 1992 marks a new era in the federal democratic set-up of the country and provides constitutional status to the Panchayati Raj Institutions (PRIs). Following are the major changes in the structure and roles of the Panchayati Raj:
(1) Establishment of three-tier structure: Village Panchayat (Gram Panchayat); Intermediate Panchayat (Panchayat Samiti) and District Panchayat (Zila Parishad).
(2) Regular elections, every five years.
(3) Reservation of seats for the S.C. and ST in proportion to their population.
(4) Not less than one-third reservation of seats for women at three different levels of PRIS.
(5) Establishment of state Finance Commissions to recommend measures to improve the finance of panchayats.
(6) Establishment of State Commissions to conduct the PRIS.
(7) Establishment of District Planning Committees to prepare development plans for the districts.
(8) Preparation of plans for economic development and social justice and their execution concerning 29 subjects, listed in the 11th Schedule of the Constitution.
(9) Establishment of Gram Sabha (village assemblies) and their empowerment as decision making body at the village level.
(10) Rotation in accordance with the reservation of seats for women and the scheduled castes in the PRIS.
The 74th Constitutional Amendment Act 1992 brought about significant changes in the structure and functioning of urban government the following points are note worthy:
(1) Constitution of urban local bodies Municipal Corporation, Municipal Council, and Nagar Panchayat) in every Indian state.
(2) Regular and fair conduct of Municipal elections by the State Election Commission.
(3) Provision for supersession of municipal governments for not more than 6 months.
(4) Adequate representation of weaker sections of the society and women in municipal governments through reservation of seats.
(5) Specification by law, through the state legislatures, of the powers [including financial] and functional responsibilities to be entrusted to municipalities and wards committees.
(6) Constitution of State Finance Commissions, once in every 5 years, to review the financial position of Municipalities and to make recommendations on the measures needed to improve their financial positions.
(7) Constitution of a District Planning Committee at the district level and a Metropolitan Planning committee in metropolitan areas of every state, for the preparation and consolidation of development plans.
(8) Constitutions of wards committees within the territorial area of a Municipality, to ensure people's participation in civic affairs at the grass-root level.
