73rd Amendment Act - II (1)

Panchayats in our country receive funds in the following ways:

State Election Commission

• The State Election Commission is responsible for the superintendence, direction, and control of electoral rolls and the conduct of all elections to panchayats.

• The commission consists of a State Election Commissioner appointed by the governor.

• The conditions of service and tenure of office of the State Election Commissioner are determined by the governor.

• The State Election Commissioner can only be removed from office in the manner and on the grounds prescribed for the removal of a state high court judge.

• The State Election Commissioner’s conditions of service cannot be changed to their disadvantage after appointment.

• The state legislature can make provisions regarding elections to panchayats.

Powers and Functions

• The state legislature can grant panchayats powers and authority necessary for them to function as institutions of self-government.

• Panchayats can be entrusted with the preparation of plans for economic development and social justice and the implementation of related schemes, including those related to the 29 subjects listed in the Eleventh Schedule of the Constitution.

Finances

• The state legislature can authorize panchayats to levy, collect, and appropriate taxes, duties, tolls, and fees.

• It can also assign taxes, duties, tolls, and fees collected by the state government to panchayats.

• Additionally, the legislature can provide grants-in-aid from the consolidated fund of the state to panchayats.

• Provisions can be made for the constitution of funds to credit all moneys belonging to the panchayats.

Finance Commission

• The governor must constitute a finance commission every five years to review the financial position of the panchayats.

Audit of Accounts

• The state legislature can make provisions regarding the maintenance of accounts by panchayats and the auditing of these accounts.

Application to Union Territories

• The provisions of this part of the Constitution apply to Union territories.

• However, the President may direct modifications to the application of these provisions to specific Union territories as needed.

Exempted States and Areas

• The act does not apply to the states of Nagaland, Meghalaya, and Mizoram, as well as certain other areas such as the scheduled areas and tribal areas in some states.

• It also does not apply to the hill areas of Manipur, which have district councils, or to the Darjeeling district of West Bengal, which has the Darjeeling Gorkha Hill Council.

• The Parliament can extend the provisions to scheduled and tribal areas with specific exceptions and modifications as needed.

Bar to Interference by Courts in Electoral Matters

• Courts are barred from interfering in electoral matters related to panchayats.

• The act declares that the validity of any law regarding the delimitation of constituencies or the allotment of seats to constituencies cannot be challenged in any court.

• Additionally, no election to any panchayat can be challenged except through an election petition presented to an authority and in a manner specified by the state legislature.