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What did the 73rd Amendment make every state do?

Since 24 April 1993 every state has had to hold panchayat elections on a fixed clock, reserve seats for women and set up two commissions. What panchayats may actually do, Part IX left to each state. The difference is in two words: shall and may.

Short answer

It made every state set up panchayats in three tiers (two in states of 20 lakh people or fewer), elect them directly every five years and within six months of any dissolution, reserve at least a third of seats and chairpersons' posts for women and seats for Scheduled Castes and Tribes, and set up a State Election Commission and a State Finance Commission. What powers, taxes and functions panchayats get it left to each state's law: the Constitution says a state “may, by law, endow” them.

Contents
  1. Why do two words matter?
  2. What must every state do?
  3. What is left to the states?
  4. Where does Part IX not apply?
  5. What has happened since?
  6. Using this in PSIR
Terms used in this essay
Panchayat
An elected body of rural self-government. Part IX provides for three: at the village, the intermediate (block) and the district level.
Gram Sabha
Every person on the electoral roll of a village panchayat area: the village assembly.
Part IX
The part of the Constitution, articles 243 to 243-O, inserted by the 73rd Amendment, that deals with panchayats.
Eleventh Schedule
A list of 29 matters, from agriculture to public distribution, that a state may hand over to panchayats.
State Finance Commission
A body each state must set up every five years to review panchayats' finances and recommend what they should get.
State Election Commission
The body that runs panchayat elections in a state, independent of the state government.
PESA
The Panchayats (Extension to the Scheduled Areas) Act, 1996, which extends Part IX, with changes, to Fifth Schedule areas.

The Constitution (Seventy-third Amendment) Act came into force on 24 April 1993, the day now marked as National Panchayati Raj Day. It added Part IX to the Constitution, articles 243 to 243-O, and the Eleventh Schedule. Read article by article, it does two different things, and the words tell you which is which: some clauses say a state shall, others that it may.

On the syllabusPSIR Paper I, Grassroots Democracy: Panchayati Raj and the 73rd and 74th Amendments. GS Paper II: devolution of powers and finances up to local levels.

Why do two words matter?

Because they divide what the Constitution decided from what it handed back. Where Part IX uses shall, every state must comply. Where it says a state's legislature may, by law, do something, the choice is the state's. The structure of panchayats is mostly shall. Their powers are mostly may.

What must every state do?

Set up panchayats on one pattern, and elect them on a fixed clock. Article 243B requires panchayats at the village, intermediate and district levels, with one exception: “Panchayats at the intermediate level may not be constituted in a State having a population not exceeding twenty lakhs.”

Under article 243E every panchayat “shall continue for five years from the date appointed for its first meeting and no longer”, and a new one must be elected before that term ends or, after an early dissolution, “before the expiration of a period of six months from the date of its dissolution.” Article 243D reserves seats for Scheduled Castes and Scheduled Tribes in proportion to their population, and not less than one-third of the directly elected seats, and of the offices of chairpersons at each level, for women.

Two institutions are compulsory. Article 243K gives a State Election Commission the superintendence, direction and control of panchayat elections, and its Commissioner can be removed only in the manner and on the grounds of a High Court judge. Article 243I requires a State Finance Commission within one year of the amendment's commencement, and again at the end of every fifth year, to review panchayats' finances.

What Part IX makes compulsory, and what it leaves to the states Two columns. What Part IX of the Constitution makes every state do: Three tiers, (no middle tier under 20 lakh people) (243B); Direct elections, every five years (243C, 243E); Re-election, within six months of a dissolution (243E); Women, at least a third of seats and chairs (243D); SC and ST seats, in proportion to population (243D); State Election Commission, to run the elections (243K); State Finance Commission, every five years (243I). What it leaves to each state's law: Powers and functions, the 29 subjects are a list to consider (243G); Taxes and funds, what a panchayat may levy (243H); The Gram Sabha, what it may do (243A); Women beyond a third, Karnataka: half (243D). Every state must Three tiers (no middle tier under 20 lakh people) 243B Direct elections every five years 243C, 243E Re-election within six months of a dissolution 243E Women at least a third of seats and chairs 243D SC and ST seats in proportion to population 243D State Election Commission to run the elections 243K State Finance Commission every five years 243I Left to each state's law Powers and functions the 29 subjects are a list to consider 243G Taxes and funds what a panchayat may levy 243H The Gram Sabha what it may do 243A Women beyond a third Karnataka: half 243D What Part IX makes compulsory, and what it leaves to the states Two columns. What Part IX of the Constitution makes every state do: Three tiers, (no middle tier under 20 lakh people) (243B); Direct elections, every five years (243C, 243E); Re-election, within six months of a dissolution (243E); Women, at least a third of seats and chairs (243D); SC and ST seats, in proportion to population (243D); State Election Commission, to run the elections (243K); State Finance Commission, every five years (243I). What it leaves to each state's law: Powers and functions, the 29 subjects are a list to consider (243G); Taxes and funds, what a panchayat may levy (243H); The Gram Sabha, what it may do (243A); Women beyond a third, Karnataka: half (243D). Every state must Three tiers (no middle tier under 20 lakh people) 243B Direct elections every five years 243C, 243E Re-election within six months of a dissolution 243E Women at least a third of seats and chairs 243D SC and ST seats in proportion to population 243D State Election Commission to run the elections 243K State Finance Commission every five years 243I Left to each state's law Powers and functions the 29 subjects are a list to consider 243G Taxes and funds what a panchayat may levy 243H The Gram Sabha what it may do 243A Women beyond a third Karnataka: half 243D
Shall and may. What Part IX makes every state do, and what it leaves to each state's law, with the article for each.

What is left to the states?

What panchayats actually do. Article 243G is the centre of it: “the Legislature of a State may, by law, endow the Panchayats with such powers and authority as may be necessary to enable them to function as institutions of self-government”, including for the matters in the Eleventh Schedule. Those 29 matters, from agriculture to the public distribution system, are a list to consider; the Ministry of Panchayati Raj calls them illustrative.

The same holds for money and for the village assembly. Under article 243H the legislature “may, by law” authorise a panchayat to levy, collect and appropriate taxes, duties, tolls and fees. Under article 243A, “A Gram Sabha may exercise such powers and perform such functions at the village level as the Legislature of a State may, by law, provide.”

Article 243G“may, by law, endow”: the structure is compulsory; the powers are each state's choice.

A state may also go further than the floor. Karnataka's Panchayat Raj Act of 1993 reserves half of the seats and offices in all three tiers for women.

Where does Part IX not apply?

In the Scheduled Areas and tribal areas of article 244, and in Nagaland, Meghalaya and Mizoram, by article 243M, unless extended by law. Parliament extended it to the Fifth Schedule areas, with changes, through the Panchayats (Extension to the Scheduled Areas) Act, which came into force on 24 December 1996.

What has happened since?

On the compulsory side, one number stands out. By the Ministry of Panchayati Raj's count in April 2026, there are more than 2.5 lakh panchayats and 24.04 lakh elected representatives, 49.75% of them women: well above the one-third the Constitution requires. On money, an expert committee on panchayats' own revenue found that, despite the many taxes and fees open to them, panchayats in most states “have not been able to tap them”, and a study of devolution for the Ministry found it highly uneven across states.

The unevenness follows from the design: the amendment guaranteed elected panchayats everywhere and left what they govern to each state. Whether that was the right balance is the question the exam asks you to judge.

Using this in PSIR and GS Paper II

Quote the article numbers. Try these:

  1. PSIR Paper I, 15 marks. “The 73rd Amendment made panchayats constitutional but left them dependent on the states.” Examine with reference to Part IX.
  2. GS Paper II, 250 words. Why has devolution to panchayats been uneven across states? Discuss with reference to articles 243G and 243H.
  3. Prelims-style. Under article 243B, a state need not constitute panchayats at the intermediate level if its population does not exceed what? (Twenty lakh.)

An outline for the first.

  1. The commencement (24 April 1993) and what Part IX added.
  2. What is compulsory: tiers (243B), terms and elections (243E), reservation (243D), the two commissions (243K, 243I).
  3. What is left to the states: powers (243G, “may, by law, endow”), taxes (243H), the Gram Sabha (243A).
  4. The record since: 49.75% women among 24.04 lakh representatives; own revenue largely untapped.
  5. Close on the balance between a national floor and state choice.

Practise: GS Paper II mock tests · Read: Polity study notes · Exam: UPSC Civil Services

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