Difference Between the 73rd and 74th Constitutional Amendments

The concept of local self-governance is essential for empowering citizens at the grassroots level, ensuring better delivery of public services, and promoting inclusive democracy. In India, the 73rd and 74th Constitutional Amendments, both passed in 1992, were landmark reforms aimed at strengthening local bodies and decentralising power. 

While both amendments focus on local governance, they address different spheres of governance: the 73rd Amendment pertains to rural areas and Panchayati Raj institutions, while the 74th Amendment focuses on urban local bodies, such as municipalities. This article will explore the differences between the two amendments in detail, examining their objectives, provisions, structures, powers, functions, and impact on local governance.

Why 73rd and 74th Constitutional Amendments Were Needed?

Before the 73rd and 74th Amendments, local governance in India was largely dependent on State laws and not backed by the Constitution. Local bodies, whether urban or rural, often lacked regular elections, defined functions, financial autonomy, and the necessary legal framework to ensure their effective functioning. The Constitution of India, under Article 40 of the Directive Principles of State Policy, had called for the establishment of Panchayats to ensure decentralised governance. However, until 1992, these bodies existed mostly as administrative units without full constitutional recognition.

The 73rd Amendment aimed to empower rural local bodies (Panchayati Raj institutions) by bringing them under constitutional protection, while the 74th Amendment sought to provide the same constitutional status to urban local bodies, particularly municipalities. Both amendments were a step towards deepening democracy by ensuring that power and resources are distributed to the grassroots level.

Scope and Applicability of 73rd and 74th Constitutional Amendments

The 73rd Amendment (Rural Governance)

The 73rd Amendment introduced Part IX of the Constitution, which deals specifically with Panchayats. It came into force on 24th April 1993. This amendment applies to rural local governance across India, with a few exceptions.

Exceptions:

• The States of Nagaland, Meghalaya, Mizoram are exempt from the provisions of this amendment.
  
• It does not apply to Scheduled Areas and Tribal Areas unless extended by Parliament. Similarly, certain hill areas like Darjeeling and Manipur’s district councils are also excluded from the provisions of this amendment.
  

The 74th Amendment (Urban Governance)

The 74th Amendment introduced Part IX-A of the Constitution, which deals with Municipalities. This came into force on 1st June 1993. It is focused on urban local governance and applies to all urban areas in India, with some exclusions similar to the 73rd Amendment.

Exceptions:

• Like the 73rd Amendment, it does not apply to Scheduled Areas as defined under Article 244 of the Constitution.
  
• The Darjeeling Gorkha Hill Council and certain other specific areas are also exempt from the application of this amendment.

Structural Differences Between 73rd and 74th Constitutional Amendments

The 73rd and 74th Amendments bring two different models of governance, with varying structures and administrative frameworks. The rural and urban local bodies cater to different administrative needs, hence the structures differ.

Structure Under the 73rd Amendment

The 73rd Amendment mandates the establishment of a three-tier Panchayati Raj system in every state:

1. Gram Panchayat: At the village level, directly elected by the people.
   
2. Panchayat Samiti: At the intermediate (block/taluka) level, also elected by the people.
   
3. Zila Parishad: At the district level, with members indirectly elected by the members of the lower-tier Panchayats.

Additionally, the Gram Sabha (village assembly of all registered electors) plays a vital role in the decision-making process at the village level.

Structure Under the 74th Amendment

The 74th Amendment, in contrast, defines three types of municipal bodies based on the size and population of urban areas:

1. Nagar Panchayat: For transitional areas (rural to urban).
   
2. Municipal Council: For smaller urban areas.
   
3. Municipal Corporation: For larger cities, with greater powers and responsibilities.

Furthermore, the amendment allows for the creation of Ward Committees in larger municipalities, enhancing local participation in decision-making processes.

Electoral Provisions and Reservation

Both amendments provide for the direct election of representatives, but they differ in the way elections and reservations are structured for rural and urban local bodies.

Elections and Reservation under the 73rd Amendment

• Direct Elections: Members of all three tiers of Panchayats are elected directly by the people.
  
• Indirect Elections: Chairpersons of Panchayat Samiti and Zila Parishad are elected indirectly by the members of the respective Panchayats.
  
• Reservation:
  
  • One-third of the seats in all Panchayat bodies are reserved for women.
    
  • Seats for Scheduled Castes and Scheduled Tribes are reserved in proportion to their population in the respective areas.

Elections and Reservation under the 74th Amendment

• Direct Elections: All members of Municipalities are directly elected by the people from territorial constituencies known as wards.
  
• Mayor/Chairperson: In some cases, the Mayor or Chairperson of a Municipality is also directly elected, while in others, they are indirectly elected by the Municipal Council.
  
• Reservation:
  
  • One-third of the seats in all Municipalities are reserved for women.
    
  • Seats for Scheduled Castes and Scheduled Tribes are reserved in proportion to their population.
    
  • States may reserve seats for Backward Classes at different levels, a provision not explicitly available under the 73rd Amendment.

Powers and Functions

Both Amendments empower local bodies with various functions and responsibilities, although the scope and areas of operation differ.

Powers and Functions under the 73rd Amendment

The Panchayats, as per the 73rd Amendment, are entrusted with several powers and responsibilities related to:

• Economic Development: Panchayats are tasked with preparing plans for economic development and social justice, which are then implemented at the grassroots level.
  
• Implementation of Central and State Schemes: Panchayats act as implementers of various schemes aimed at rural development, such as education, sanitation, health, and rural infrastructure.
  
• Local Governance: Panchayats are empowered to make decisions related to local issues such as water supply, agriculture, and minor irrigation.

The 11th Schedule to the Constitution enumerates 29 subjects within the jurisdiction of Panchayats.

Powers and Functions under the 74th Amendment

The Municipalities, under the 74th Amendment, have a slightly different mandate. Their powers include:

• Urban Planning: Municipalities are responsible for planning the development of cities and towns, including infrastructure development like roads, drainage, water supply, and waste management.
  
• Public Health and Sanitation: Urban bodies oversee health services, sanitation, solid waste management, and fire services.
  
• Regulation of Land Use: Municipalities have a major role in land use regulation, building permissions, and zoning regulations.
  
• Local Taxation: Municipalities have the authority to levy taxes for funding local development.

The 12th Schedule lists 18 functions assigned to Municipalities.

Financial Provisions and Transfers

Both Amendments include provisions for financial empowerment of local bodies, but the scope of financial autonomy differs between rural and urban areas.

Financial Provisions under the 73rd Amendment

• The State Finance Commission is tasked with reviewing the financial position of Panchayats and recommending the distribution of state resources.
  
• Panchayats are empowered to raise revenue through taxes, fees, and fines as allowed by the State legislature.
  

Financial Provisions under the 74th Amendment

• The State Finance Commission also applies to Municipalities, advising on the allocation of state resources and grants.
  
• Municipalities have broader powers to impose taxes (e.g., property tax, water tax, etc.) and manage their finances.

Conclusion: Key Differences Between the 73rd and 74th Amendments

Both the 73rd and 74th Amendments are crucial for the development of local governance in India. While the 73rd Amendment revolutionised rural governance by introducing the three-tier Panchayati Raj system, the 74th Amendment created a similar framework for urban local bodies. The implementation of these Amendments ensures that the foundations of Indian democracy are strengthened at the grassroots level, fostering inclusivity, representation, and accountability in both rural and urban areas.