Consider the following statements:

In the post-73rd Amendment era, there has to be decentralization of

1. decision-making powers

2. system as a whole

3. judicial powers

4. administrative powers

Which of the above statements are correct?

The correct answer is 1, 2 and 4 only.

Key Points

73rd Constitutional Amendment:

• Panchayati Raj Institution (PRI) is a system of rural local self-government in India.
• Local Self Government is the management of local affairs by such local bodies that have been elected by the local people.
• PRI was constitutionalized through the 73rd Constitutional Amendment Act, of 1992 to build democracy at the grassroots level and was entrusted with the task of rural development in the country.
• Through this amendment, there has to be decentralization of-
  • decision-making powers: Panchayats 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 the Eleventh Schedule (Article 243G). Hence, statement 1 is correct.
  • administrative powers: An officer of the rank of the Deputy Commissioner shall be the Chief Executive Officer of the Zilla Parishad who shall be appointed by the Government. Hence, statement 4 is correct.
  • financial powers: 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).
  • system as a whole: This created the third unit of the executive after central and state government. Hence, statement 2 is correct.
• ​There has to be decentralization of the judiciary in India since independence. The three levels of judiciary in India are divided as follows; - District, that is, District and Sessions Courts, State, that is, High Courts, and the Supreme Court at the top. Hence, statement 3 is not correct.