Describe the salient features of the Rural and Urban Local Governance under the 73rd and 74th Constitutional Amendment Act.
In short
The 73rd Amendment created a three-tier Panchayati Raj system with regular elections, reservation, 29 Eleventh Schedule subjects and State Finance Commissions, while the 74th created Nagar Panchayats, Municipal Councils and Corporations with 18 Twelfth Schedule functions. Both reserve at least one-third of seats for women.
Model answer
Ghissu Editorial · Verified 4 Oct 2026 · 253 words
Reservation and Devolution of Powers
It reserves one-third of seats for women and seats for SC/STs in proportion to population, and devolves 29 subjects such as agriculture, rural development, health, and sanitation to Panchayats. State Finance Commissions2 recommend financial resource distribution, while District Planning Committees consolidate local plans for integrated development.
Classification and Functions of Urban Bodies
The 74th Amendment classifies urban local bodies into Nagar Panchayats, Municipal Councils, and Corporations, with functions listed in the Twelfth Schedule including urban planning, land use regulation, water supply, and sanitation. This allows governance tailored to urban size and complexity.
Implementation Gaps
Urban local bodies face inadequate financial devolution and limited autonomy. Andhra Pradesh CAG 2025 audit reveals gaps4 in urban solid waste management across 123 ULBs, highlighting challenges in fulfilling constitutional mandates despite legal provisions.
Financial Autonomy and Capacity Building
States must fully implement State Finance Commission recommendations to enhance local bodies’ financial resources. Institutionalizing continuous training for elected representatives and officials is essential to improve governance quality and service delivery.
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Local governance (73rd/74th) and Constitutional Authorities13 questions
Asked in 6 of 8 sittings since 2008
Most tested: 73rd Amendment and the Finance Commission’s role in local body devolution/fiscal federalism
- 2025Discuss the significance of the 73rd Constitutional Amendment Act in strengthening grassroots democracy in India.
- 2025The Finance Commission is considered the backbone of fiscal federalism in India. Examine its role and significance in maintaining the financial balance between the Union and the States.
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Question from the official APPSC Group-I Mains 2020 paper. Answer written by Ghissu's engine and checked against our editorial standards. Found an error? Tell us and we correct it within 48 hours.