India’s local government comprises two parallel systems – Rural Panchayati Raj Institutions and Urban Local Bodies – each with defined tiers and functions under the Constitution. Both are mandated by law and structured similarly (see table below): In short, both PRIs and ULBs are constitutionally empowered third-tier local governments. PRIs cover rural areas (panchayats at village/block/district), while ULBs cover urban areas (municipalities for cities and towns). Together they ensure local planning and implementation of development schemes, bringing governance closer to the people.

Panchayati Raj Institutions (Rural LSG)

Panchayati Raj Institutions (PRIs) form the rural arm of local self-government. Established nationwide by the 73rd Constitutional Amendment (1992), PRIs are a system of rural local self-governance through elected representatives. They exist in every state and consist of three tiers:

• Gram Panchayat (Village Level): Governs a village or group of villages; responsible for local civic administration (water, street lights, minor roads, etc.) and village development. It is headed by a Sarpanch elected by village voters.

• Panchayat Samiti/Block Panchayat (Intermediate Level): Administers a block (group of villages); coordinates development projects across Gram Panchayats.

• Zilla Parishad (District Level): Oversees all Panchayat Samitis in a district; works with state and central schemes at the district level.

A unique feature is the Gram Sabha – the village assembly of all adult residents. The Gram Sabha is the embodiment of direct democracy: it approves plans, budgets and even lists of beneficiaries for local schemes. All executive committees of PRIs must report to the Gram Sabha, ensuring people’s direct oversight.

PRIs have specified functions (29 items in the 11th Schedule, including agriculture, primary education, health, sanitation, and local infrastructure). For example, they plan and implement local economic development and social justice programs. The State legislature can confer additional responsibilities and empower panchayats to levy certain taxes (like water or property tax).

Crucial constitutional provisions for PRIs include:

• Authority (Art. 243G): Panchayats have power to function as institutions of self-government.

• Direct Elections & Tenure: All members (at village, block, district) are directly elected, and each term is fixed for five years. Elections are conducted by independent State Election Commissions (Art.243K).

• Reservations: Seats (and Sarpanchships at village/block levels) are reserved for SC/STs based on population, and for women (at least 1/3 of seats and chair positions).

• Finance: The State Finance Commission (Art.243I, appointed every 5 years) reviews panchayat finances and recommends the distribution of grants and taxes to PRIs. Panchayats may levy local taxes if authorized by the state.

• PESA (1996): For tribal areas (Fifth Schedule), the Panchayats (Extension to Scheduled Areas) Act grants PRIs special powers respecting traditional practices, land, and resources.

Urban Local Bodies (Urban LSG)

Urban Local Bodies (ULBs) – also called Municipalities – are the urban counterparts of PRIs. The 74th Amendment (1992) provided ULBs with constitutional status, mandating local democracy in cities and towns. ULBs exist in three main categories:

• Nagar Panchayat: For areas in transition from rural to urban (typically towns). It has an elected chairperson.

• Municipal Council: For smaller cities (population usually under 1 million). Led by a president or mayor and councilors.

• Municipal Corporation: For large metropolitan cities (population above 1 million). Headed by a mayor and comprising councilors and administrative officials.

(States may have other bodies like Cantonment Boards, Port Trusts, etc., but they broadly fall under municipal laws.)

ULBs perform urban planning, regulation of land use, water supply, sanitation, urban forestry, slum improvement, infrastructure (roads, street lighting), and more. These subjects (18 items in the 12th Schedule, including public health, education, urban transport) can be devolved to municipalities by state governments.

Key points about Urban Local Bodies(ULBs):

• Elections: Members (councilors) are directly elected from city wards, and mayor/president positions are also filled (directly or indirectly) as per state law. One-third of seats are reserved for women and for SC/STs, similar to PRIs.

• Governance: Municipal Corporations typically have a Mayor-in-Council system and an appointed Municipal Commissioner; Municipal Councils have President-in-Council. Many cities also establish Ward Committees (in cities with population >300,000) to involve residents in local issues.

• Finances: ULBs raise revenue via property taxes, user charges, fees (birth, trade licenses), and receive grants from state/central governments. The Finance Commission (State and Union) provides grants: notably, the 15th Finance Commission allocated about ₹4.36 lakh crore to local governments (rural+urban) for 2021–26.