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UPSC Prelims 2025Question 91Polity

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?

Options

  1. (a)I and II only
  2. (b)II and III only
  3. (c)I and III only
  4. (d)I, II and III
Correct answer: d
Decision rule

Constitutional bodies in a State are constituted by the Governor, never the Chief Minister; and the minimum age for any Panchayat seat is twenty-one.

Explanation

Correct Answer:

(d) I, II and III

Explanation of the Correct Answer

Let's analyze each statement regarding Panchayats at the intermediate level:

Statement-wise Analysis

I. Panchayats at the intermediate level exist in all States.

  • Incorrect
  • According to the 73rd Constitutional Amendment Act, 1992, Panchayats are established at three levels: village, intermediate (block), and district.
  • However, Panchayats at the intermediate level do not exist in all States.
  • Some smaller States with population less than 20 lakhs (e.g., Himachal Pradesh, Mizoram, Meghalaya, Nagaland, Sikkim, and Arunachal Pradesh) have only two-tier Panchayats (village and district levels), skipping the intermediate level.

II. To be eligible to be a Member of a Panchayat at the intermediate level, a person should attain the age of thirty years.

  • Incorrect
  • As per Article 243(b) of the Constitution, the minimum age to be a member of any Panchayat (at any level) is 21 years, not 30.

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.

  • Incorrect
  • The Constitution (Article 243-I) provides for the State Finance Commission (SFC) to be constituted every five years by the Governor (not the Chief Minister) to review the financial position of Panchayats (at all levels) and make recommendations on the distribution of financial resources.
  • The Chief Minister does not constitute this commission.

Why Other Options Are Incorrect

  • (a) I and II only – Incorrect: Statement III is also incorrect.
  • (b) II and III only – Incorrect: Statement I is also incorrect.
  • (c) I and III only – Incorrect: Statement II is also incorrect.
  • (d) I, II and III – Correct: All three statements are incorrect.

Relevant Supplementary Information

AspectDetails
Intermediate PanchayatExists only in States with population over 20 lakhs; otherwise, skipped.
Minimum Age for Membership21 years as per Article 243(b).
State Finance CommissionConstituted by the Governor every five years as per Article 243-I for financial review and recommendations.
Role of Chief MinisterDoes not constitute the Finance Commission; role limited to executive functions.

Related Concepts or Facts

TermExplanation
73rd Amendment Act, 1992Constitutional amendment providing for Panchayati Raj Institutions and their powers.
Panchayati Raj SystemThree-tier system of local self-government at village, intermediate, and district levels.
State Finance Commission (SFC)Independent body to recommend devolution of financial resources to Panchayats and Municipalities.
Population Criteria for Panchayat LevelsDetermines whether three-tier or two-tier Panchayati Raj system is implemented in a State.

Current Relevance

  • Many States continue to implement the Panchayati Raj system in line with constitutional provisions and population criteria.
  • The role of SFCs is critical for fiscal decentralization and empowerment of local bodies.

Table: Related Concepts and Terms – Panchayats and Financial Commissions

Concept / TermExplanation / Relevance
Intermediate PanchayatsThe second tier in the three-tier Panchayati Raj system, usually at the block or taluka level; exist only in States with population over 20 lakhs.
Two-tier vs Three-tier Panchayati RajStates with population under 20 lakhs have only two tiers (village and district); others have all three tiers including intermediate.
Eligibility Age for Panchayat MembersMinimum age to contest elections to any Panchayat is 21 years (Article 243(b)), not 30 years.
State Finance Commission (SFC)A constitutional body constituted by the Governor every five years to recommend financial devolution to Panchayats and Municipalities (Article 243-I).
Role of Chief MinisterThe Chief Minister does not constitute the Finance Commission; this power lies with the Governor.
Article 243-IConstitutional provision mandating the creation of State Finance Commissions.
Panchayati Raj Institutions (PRIs)Local self-government bodies established under the 73rd Amendment Act, consisting of village, intermediate, and district levels.
Distribution of Net ProceedsSFC recommends the share of taxes and duties between the State and Panchayats.
Governor’s RoleConstitutionally responsible for appointing the State Finance Commission.
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