The 73rd Amendment Act 1992 was introduced in Parliament in September 1991 and finally passed in 1992 to decentralize the governance and transfer of powers to Panchayats as the philosophy of “Power to the People”.   By virtue of this Act, no one will be able to take away the powers, responsibilities and finances given to the Panchayats.  It is also expected that every citizen of India will be able to take part in governance.  The special features of the Constitution (73 rd Amendment) Act, 1992 are:

a)  This act enables the Gram Sabha constituted in each village to look after all the development activities based on the local need. State Election Commission conducts elections for the Gram Sabha in each 5 years and as and when required as per the Act.  Gram Sabha is headed by Gram Pradhan, elected by direct election. 

b) Duration of every Panchayat in office is five years normally. If it is dissolved for any reasons before this period is over, elections are held within six months after dissolution. The reconstituted Panchayat functions for the remaining period of the total of five years.

c) In all the states of Union of India have three tier Panchayat system, i.e. at village level, an intermediate   (at block level) and at district level. Only the states with a population less than twenty lakhs would not need to establish a Panchayat at the intermediate level.  The chairperson at the intermediate and district levels are elected by and from amongst the elected members.

d) This act also empowers to Scheduled Castes, Scheduled Tribes and women as it provide proportionate reservation in  Panchayat levels, election of chairperson and election of Panchayat members. One third seats in reserved categories as well as a whole are reserved for women. 

 e) This act has been constituted a Finance Commission in each states. This commission is responsible for reviewing the financial conditions of the Panchayats and make suitable recommendations to the respective Governors.

f) The Act gives powers and responsibilities to the Panchayats to plan and execute development and welfare programmes in area of agriculture, land improvement, minor irrigation, animal husbandry, fishery, social forestry, minor forest produce, small scale and cottage industry, fuel and fodder, Primary and secondary schools, non-formal education, libraries, technical training, cultural activities, health, sanitation, family welfare, social welfare, welfare of weaker sections, public distribution system, welfare of women, child development, roads, housing, drinking water, markets, electrification, maintenance of community assets, etc.