Democratic Politics (NTSE/Olympiad)  

2. Federalism

Attempts to Decentralise Power In India

(a) Attempts to decentralise power :
Panchayats in villages and municipalities in Urban areas were setup in all the states.
A major steps towards decentralisation was taken in 1992.
73rd Amendment Act :
In 1992, 73rd Amendment Act, gave constitutional status to the Panchayati Raj institutions. It created the third tier of federalism in India, below the Central government level and the State government level. The objective of this Amendment was to make democracy more powerful and effective by giving power to the grassroots units of self-government.
The salient features of the Act -
(i) To provide a 3-tier system of Panchayati Raj for all the States having a population of over 20 Lakhs.
(ii) To hold Panchayat elections regularly every 5 years.
(iii) To provide reservation of seats for Scheduled Castes, Scheduled Tribes and Women (not less than 33 %)
(iv) To appoint State Finance Commission, to make recommendations as regards the financial powers of the Panchayats.
(v) The constitute District Planning Committee to prepare draft development plan for the district as a whole.
(vi) An independent institution called state Election Commission has been created in each state to conduct Panchayat and municipal election.
(vii) The state governments are required to share some powers and revenue with local government bodies.

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