The Role of State Legislation in Empowering Panchayats: A Comparative Analysis

The 73rd Constitutional Amendment Act, 1992 is often celebrated as the foundation of grassroots democracy in India. It added Part IX to the Constitution, created a three-tier Panchayati Raj structure, and listed 29 subjects in the Eleventh Schedule that could be devolved to Panchayats. But here is the crucial detail that often goes unnoticed: the Amendment did not automatically transfer any of these powers. It only created a constitutional framework. The real work – deciding what powers Panchayats actually receive – was left entirely to state legislatures. This is what makes state legislation the true engine of Panchayat empowerment in India, and why the approaches taken by states like Karnataka, West Bengal, and Orissa (now Odisha) reveal so much about how decentralisation works in practice.

The constitutional framework: What the 73rd Amendment actually does 🔗

Before analysing individual state laws, it is important to understand the nature of the constitutional provision itself. Article 243G states that state legislatures may endow Panchayats with powers and authority to function as institutions of self-government. The word “may” is not accidental – it is permissive, not mandatory. This means the Constitution set an enabling framework but left devolution of actual functions, finances, and functionaries entirely at the discretion of each state.

The Eleventh Schedule lists 29 subjects spanning agriculture, minor irrigation, animal husbandry, fisheries, social forestry, rural housing, drinking water, primary and secondary education, health and sanitation, poverty alleviation programmes, public distribution systems, and maintenance of community assets, among others. States can transfer any or all of these subjects to Panchayats, distribute them across the three tiers (Gram Panchayat, Panchayat Samiti, Zilla Parishad), and decide how much financial and administrative power accompanies that transfer. Since “local government” falls under the State List in the Seventh Schedule, this discretion is constitutionally protected. The result, predictably, is enormous variation across the country.

According to the Ministry of Panchayati Raj, the authority relating to transfer of powers and funds to Panchayati Raj Institutions vests entirely with state governments, and the Ministry has repeatedly had to urge states to adopt deliberate plans of action for devolving functions, finances, and functionaries to PRIs.

Karnataka: A pioneer in legislative devolution 🔗

Karnataka has consistently stood out as one of India’s most progressive states in terms of Panchayat empowerment. Even before the 73rd Amendment, the state had enacted significant legislation – going back to the Mysore Village Panchayats and Local Boards Act, 1959, and the more ambitious Karnataka Zilla Parishads, Taluk Panchayat Samithis, Mandal Panchayats and Nyaya Panchayats Act, 1983, which was considered radical in the sweep of powers it devolved to local bodies.

Following the 73rd Amendment, Karnataka enacted the Karnataka Gram Swaraj and Panchayat Raj Act, 1993. The very name – “Gram Swaraj,” meaning village self-rule – signals its intent. The Act formally established elected bodies at the Grama Panchayat, Taluk Panchayat, and Zilla Panchayat levels and significantly increased women’s reservation from 25% to 33.33% in local bodies. More substantively, the state government transferred all 29 functions listed in the Eleventh Schedule to PRIs, though the detailed activity map distributing these functions among Grama Panchayats, Taluk Panchayats, and Zilla Panchayats was fully operationalised only in November 2016.

Financial devolution and governance innovations 🔗

Karnataka’s approach to devolving funds and functions to PRIs became a model for other states to emulate. The Act contained provisions for mandatory Gram Sabhas, transparent budget discussions, and – through subsequent amendments – social audit mechanisms. A Social Audit Directorate was registered in May 2012 under the Societies Registration Act, with Social Audit Rules notified in January 2012, giving the Gram Sabha a formal role in accountability. In the Panchayat Devolution Index 2024 released by the Ministry of Panchayati Raj, Karnataka ranked second overall with an index value of 57.62 (behind Tamil Nadu’s 60.24), reflecting the depth of its devolution framework in law and practice.

West Bengal: Early mover with a distinctive model 🔗

West Bengal’s relationship with Panchayati Raj predates the 73rd Amendment by nearly two decades. The three-tier Panchayat system was inaugurated in West Bengal through the West Bengal Panchayat Act passed in June 1973 – the same structure that the 73rd Amendment later constitutionalised for the entire country. West Bengal began conducting regular Panchayat elections from 1978 onwards, well ahead of most other states.

The West Bengal Panchayat Act, 1973, which was amended extensively post-1993 to align with constitutional requirements, is structured around three distinct levels: the Gram Panchayat at the village level, the Panchayat Samiti at the block level, and the Zilla Parishad at the district level. The Act assigns both obligatory duties (functions a Gram Panchayat must perform) and discretionary duties (functions it may perform if directed by the state government) – a design that gives Panchayats a functional core while allowing the state to expand their mandate progressively.

Parallel bodies and rural development implementation 🔗

One distinctive feature of West Bengal’s model, noted in NITI Aayog’s empirical assessment of Panchayat resources, is the presence of parallel bodies at all three tiers for implementing rural development activities. This means that alongside elected Panchayat bodies, separate implementation structures co-exist – a design intended to improve efficiency but one that sometimes creates ambiguity about which body is the primary delivery mechanism. Despite this complexity, West Bengal has maintained consistent electoral cycles and strong political participation at the local level. The state’s commitment to political decentralisation is reflected in its relatively comprehensive devolution of powers, particularly in rural development schemes which are largely implemented through Panchayats with genuine community participation in decision-making.

The West Bengal Panchayat Act also empowers Panchayat Samitis to grant licences for hats (weekly markets) and markets – a commercially significant power that gives intermediate-level Panchayats tangible economic authority over local trade. Zilla Parishads, in turn, exercise supervisory power over Panchayat Samitis, creating a structured accountability chain within the three-tier system.

Orissa: Adapting to tribal and geographic complexity 🔗

Orissa (now officially Odisha) presents a different legislative context. The state operates under the Orissa Grama Panchayats Act, 1964, amended significantly in 1994 to conform with the 73rd Amendment. Orissa also falls under the ambit of the PESA Act (Provisions of the Panchayats Extension to Scheduled Areas Act), 1996, which extended the 73rd Amendment’s principles to tribal areas in the state – a significant legislative development given Odisha’s large Scheduled Tribe population concentrated in areas like Koraput, Malkangiri, Rayagada, and Kandhamal.

The Orissa Grama Panchayat Act recognises the Grama Sasan (the village assembly equivalent to the Gram Sabha) as a core democratic institution, mandating at least two meetings per year – one in February and one in June. This institutionalisation of village-level deliberation was a meaningful step toward participatory governance. The 1994 amendments introduced provisions aligned with constitutional requirements, including the State Election Commission for conducting free and fair elections and seat reservations for SCs, STs, and women.

Odisha’s performance on the devolution index 🔗

Odisha’s standing in comparative assessments reflects both its efforts and its challenges. In the Panchayat Devolution Index 2024, Odisha ranked third overall with a score of 57.46, placing it among the top-performing states. Notably, based on how actively Panchayats are involved in identifying beneficiaries and implementing schemes, Odisha ranked among the top three states, alongside Tamil Nadu and Rajasthan. However, the state still faces infrastructure gaps – it appears among the states that need to focus on developing physical infrastructure and internet connectivity for Panchayats to function efficiently.

The constitutional relationship: Article 243G and state discretion 🔗

What emerges from comparing these three states is a clear picture of how Article 243G operates in practice. The Constitution provides the ceiling – up to 29 subjects can be devolved – but each state legislature determines the floor. Some states devolve functions with accompanying finances and staff (the “3 Fs”: functions, funds, functionaries); others transfer functions on paper without the resources to execute them, leaving Panchayats nominally empowered but practically constrained.

As legal scholars and policy analysts note, it is the state legislature – through its conformity acts and subsequent amendments – that empowers Panchayats in any real sense. The 73rd Amendment created the constitutional architecture; state legislation is what breathes life into it. Where states have enacted detailed, well-resourced devolution frameworks (as Karnataka did with all 29 Eleventh Schedule subjects formally transferred), Panchayats have been able to function as genuine institutions of self-government. Where legislative transfer has remained symbolic or incomplete, Panchayats continue to depend on state bureaucracies for both funds and direction.

The broader legislative lesson is also this: state Panchayat acts are not static documents. Karnataka’s act has been amended over a dozen times; West Bengal’s act has seen amendments through 2017; Orissa’s was substantially revised in 1994 and through subsequent notifications. This iterative legislative process reflects an ongoing negotiation between the constitutional ideal of decentralisation and the political economy of how much power state governments are willing to actually surrender to local bodies.

Why this variation matters for governance 🔗

The variation in state legislation has direct consequences for rural communities. In areas where Panchayats have been given control over primary health centres, local schools, and the public distribution system – as envisaged under the Eleventh Schedule – villages can tailor service delivery to local needs. Where these functions remain with state departments, decision-making is slower, less responsive, and harder for citizens to hold accountable.

The Ministry of Panchayati Raj’s Devolution Index, introduced in 2006-07 under the Panchayat Empowerment and Accountability Incentive Scheme (PEAIS), was specifically designed to push states toward genuine devolution by measuring and publishing how well each state was transferring functions, finances, and functionaries. States like Karnataka and West Bengal, which had invested in strong legislative frameworks early, consistently performed better on this index. The index itself – and the incentive scheme attached to it – represents the central government’s attempt to use competitive federalism to pressure states toward more meaningful implementation of the constitutional vision.

Ultimately, the story of state legislation vis-à-vis constitutional provisions is a story about the limits of constitutional mandates alone. A constitution can guarantee the right to local self-government; only a well-designed, adequately resourced state law can make it real.

What do you think? Given that the Constitution leaves devolution of powers to the discretion of state legislatures, should Article 243G be made more mandatory – requiring states to transfer a minimum set of Eleventh Schedule functions to Panchayats within a fixed timeframe? And do you think the wide variation in state approaches to Panchayat empowerment ultimately strengthens or weakens India’s federal democratic structure?

References

1. https://secforuts.mha.gov.in/73rd-amendment-of-panchayati-raj-in-india/
2. https://www.gktoday.in/article-243g/
3. https://en.wikipedia.org/wiki/Panchayati_raj_in_India
4. https://www.pib.gov.in/newsite/PrintRelease.aspx?relid=11575
5. https://prsindia.org/files/bills_acts/acts_states/karnataka/1993/ActNo14of1993Karnataka.pdf
6. https://cag.gov.in/uploads/download_audit_report/2022/9%20Chapter%20I%20ATIR%202019%20&%202020-converted%20(1)%20(1)-062341ee6614079.74275962.pdf
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8. https://idronline.org/article/advocacy-government/the-state-of-indias-panchayati-raj-system/
9. https://www.wbja.nic.in/wbja_adm/files/The%20West%20Bengal%20Panchayat%20Act,%201973.pdf
10. https://www.niti.gov.in/sites/default/files/2023-03/Measures%20to%20Augment%20the%20Resources%20of%20Panchayats%20Empirical%20Assessment%202018-19.pdf
11. https://wbxpress.com/west-bengal-panchayat-act-1973/
12. https://www.indiacode.nic.in/bitstream/123456789/13736/1/orissa_grama_panchayats.pdf
13. https://byjus.com/free-ias-prep/panchayati-raj/
14. https://india.mongabay.com/2022/05/commentary-tracing-panchayati-rajs-role-in-deepening-democracy-and-decolonising-governance-over-30-years/