According to Clause 243H of the Constitution of India, who authorizes the Panchayat to levy, collect and levy duties, tolls and dues under any procedure according to law?

Key Points

• Clause 243H of the Constitution of India pertains to the financial powers of Panchayats.
• It authorizes the State Legislature to empower Panchayats to levy, collect, and appropriate taxes, duties, tolls, and fees.
• The State Legislature may also assign to a Panchayat such taxes, duties, tolls, and fees levied and collected by the State Government.
• This provision helps in the decentralization of financial powers and promotes local self-governance.

Additional Information

• Panchayat
  • A Panchayat is a form of local self-government in rural India.
  • It is an institution of democratic decentralization which ensures people's participation in local governance.
  • The Panchayat system is a three-tier system consisting of the village, intermediate, and district levels.
• State Legislature
  • The State Legislature in India consists of two houses: the Legislative Assembly (Vidhan Sabha) and the Legislative Council (Vidhan Parishad) in some states.
  • The Legislative Assembly is the lower house and is directly elected by the people.
  • The Legislative Council is the upper house and its members are elected by various bodies including the Legislative Assembly, graduates, teachers, and local authority members.
  • The primary function of the State Legislature is to make laws on subjects enumerated in the State List and Concurrent List of the Constitution.
• Decentralization
  • Decentralization is the process of distributing or delegating powers from a central authority to regional and local authorities.
  • In the context of governance, it aims to bring government closer to the people and allows for more local participation and decision-making.
  • Decentralization in India is carried out through constitutional amendments such as the 73rd and 74th amendments which established Panchayati Raj Institutions and Urban Local Bodies respectively.
• Financial Powers of Panchayats
  • Financial powers of Panchayats include the authority to levy and collect taxes, duties, tolls, and fees.
  • This is crucial for the financial autonomy and sustainability of Panchayats.
  • These powers are granted by the State Legislature as per the provisions of the Constitution.