UPSC Prelims 2025 Q91: Intermediate Panchayats & 73rd Amendment
Consider the following statements:
I. Panchayats at the intermediate level exist in all States.
II. To be eligible to be a Member of a Panchayat at the intermediate level, a person should attain the age of thirty years.
III. The Chief Minister of a State constitutes a commission to review the financial position of Panchayats at the intermediate levels and to make recommendations regarding the distribution of net proceeds of taxes and duties, leviable by the State, between the State and Panchayats at the intermediate level.
Which of the statements given above are not correct?
- I and II only
- II and III only
- I and III only
- I, II and III
Answer: (d) I, II and III
Statement-wise explanation
- I: incorrect — Article 243B(1) asks every State to set up Panchayats at the village, intermediate and district levels. Article 243B(2) then adds an exception: a State with a population not exceeding 20 lakh need not set up the intermediate level. Because of this exception, intermediate Panchayats do not have to exist in every State, so 'all States' is wrong.
- II: incorrect — Article 243F(1)(a) disqualifies a person from Panchayat membership on the same grounds as for the State Legislature, with one change: no one can be disqualified for being under 25 if they have reached 21. So the minimum age to be a Panchayat member at any level is 21, not 30. The Constitution has no separate, higher age for the intermediate tier.
- III: incorrect — Under Article 243I, the commission is set up by the Governor, not the Chief Minister. It is the State Finance Commission, formed within one year of the 73rd Amendment and then every fifth year. It reviews the finances of all Panchayats, not just the intermediate tier, and recommends how State taxes, duties, tolls and fees are shared between the State and the Panchayats. Its report goes to the Governor, who places it before the State Legislature.
How to eliminate
Two statements can be ruled out with basic knowledge. Statement I uses the absolute word 'all'. Part IX is known for exceptions, such as the population cut-off for the middle tier and the exempted areas, so 'all States' should make you suspicious. In Statement III, the Chief Minister forms the commission. Constitutional bodies at State level, such as the State Finance Commission and the State Election Commission, are formed or appointed by the Governor. So I and III are both wrong, which leaves 'I and III only' or 'I, II and III'. For Statement II, compare with other minimum ages: 25 for the Legislative Assembly and 30 for the Legislative Council. A Panchayat seat cannot need a higher age than an Assembly seat. Article 243F actually sets the bar at 21. Once II is also wrong, all three are wrong. Facts to remember: 20 lakh (Art. 243B), 21 years (Art. 243F), Governor and every fifth year (Art. 243I).
Know more
Part IX of the Constitution (Articles 243 to 243O) was added by the 73rd Constitutional Amendment Act, 1992. It gave rural Panchayats constitutional status. Most of its rules are compulsory for States. A few are left to the State Legislature.
| Article | What it says | Key figure / authority |
|---|---|---|
| 243B | Three tiers: village, intermediate, district | States with population ≤ 20 lakh may skip the intermediate tier |
| 243C | Composition of Panchayats; how chairpersons are chosen | Mode fixed by State law |
| 243D | Reservation of seats | At least one-third for women |
| 243E | Duration | Five years |
| 243F | Disqualifications | Minimum age 21, not 25 |
| 243G–243H | Powers, functions, taxes | Left to the State Legislature |
| 243I | State Finance Commission | Set up by the Governor every fifth year |
| 243K | State Election Commission | Conducts Panchayat elections |
The intermediate tier is usually called the panchayat samiti, set up at the block level. It links the gram panchayat with the zila parishad. Article 243B(2) makes it optional only for States with a population of 20 lakh or less. Larger States must have it.
The State Finance Commission (Art. 243I) is the State-level version of the Union Finance Commission (Art. 280). It recommends:
- how the net proceeds of State taxes, duties, tolls and fees are shared between the State and Panchayats, and how that share is split among the tiers
- which taxes Panchayats may levy or keep
- grants-in-aid from the State's Consolidated Fund
- ways to improve Panchayat finances
The State Legislature decides who sits on the commission. Article 243Y does the same job for Municipalities.
Compulsory or voluntary: the three-tier structure (with its 20-lakh exception), the age of 21, reservation for women, the five-year term, the State Finance Commission and the State Election Commission are all compulsory. The list of powers in the Eleventh Schedule is voluntary.
NCERT Concepts to Revise
- Panchayat samiti: Statements I and II are about the intermediate tier, the block-level panchayat samiti, so first be clear what this tier is.
- Compulsory and voluntary provisions of the 73rd Amendment: Tells you which Part IX rules every State must follow, including the tier structure, member age and the finance commission.
- 73rd Constitutional Amendment Act 1992: All three statements test articles added by this amendment: 243B, 243F and 243I.