This Act was inserted in part IX of the Constitution, added Articles 243 to 243 (ZG) (along with 74th constitutional Amendment Act) and schedule XI to the Constitution. Following are the important features of the Act:
Basic units of democratic system-Gram Sabhas (villages) and Ward Committees (Municipalities) comprising all the adult members registered as voters.
Three-tier system of panchayats at village, intermediate block/taluka/mandal and district levels except in States with population below 20 lakhs (Article 243B)
Seats at all levels to be filled by direct elections [Article 243C (2)].
Seats reserved for Scheduled Castes (SCs) and Scheduled Tribes (STs) and chairpersons of the Panchayats at all levels also shall be reserved for SCs and STs in proportion to their population.
One-third of the total number of seats to be reserved for women. One third of the seats reserved for SCs and STs also reserved for women. One-third offices of chairpersons at all levels reserved for women (Article 243D).
Uniform five year term and elections to constitute new bodies to be completed before the expiry of the term. In the event of dissolution, elections compulsorily within six months (Article 243E).
Independent Election Commission in each Statistics for superintendence, direction and control of the preparation of electoral rolls and conduct of elections of the Panchayats, (Article 243K).
Panchayats to prepare plans for economic development and social justice in respect of subjects as devolved by law to the various levels of Panchayats including the subjects as illustrated in Eleventh Schedule (Article 243G).
74th Amendment provides for a District Planning Committee to consolidate the plans prepared by Panchayats and Municipalities (Article 243ZD).
Funds: Budgetary allocation from State Governments, share of revenue of certain taxes, collection and retention of the revenue it raises, Central Government programmes and grants, Union Finance Commission grants (Article 243H).
Establish a Finance Commission in each State to determine the principles on the basis of which adequate financial resources would be ensured for panchayats and municipalities (Article 243I).
