CDS (II) 2023 General Knowledge · Question 90 of 120

Correct — A, 1 only. Part IX of the Constitution, inserted by the Seventy-third Amendment in 1992, does provide for reservation. Article 243D reserves seats for the Scheduled Castes and the Scheduled Tribes in every Panchayat, in proportion to their share of the population in that Panchayat area, and reserves not less than one-third of all seats, and of the offices of chairperson, for women. So statement 1 stands. Statement 2 fails on Article 243H, which is headed powers to impose taxes by, and funds of, the Panchayats and lets the State legislature by law 'authorise a Panchayat to levy, collect and appropriate such taxes, duties, tolls and fees' subject to the procedure and limits the law lays down. The same Article allows the State to assign its own collections to Panchayats, to give grants-in-aid from the Consolidated Fund of the State, and to create Panchayat funds. Panchayats are therefore not barred from taxation; their taxing power simply flows from a State law rather than directly from the Constitution.

• (b)2 only — Keeps the false claim about taxation and drops the true one about reservation. Article 243H exists precisely so that Panchayats can be given taxing powers.
• (c)Both 1 and 2 — Fails on statement 2 alone. It is easy to slip into if 'authorised by State law' is read as 'not authorised at all'.
• (d)Neither 1 nor 2 — Article 243D provides reservation for the Scheduled Castes and the Scheduled Tribes in Panchayats, so statement 1 cannot be rejected.

Part IX of the Constitution, Articles 243 to 243-O, gives Panchayats their constitutional footing. It fixes a three-tier structure in States above twenty lakh population, a five-year term with elections before expiry, reservation of seats and chairperson offices, a State Election Commission to run Panchayat elections, and a State Finance Commission every five years to review Panchayat finances. The Eleventh Schedule lists twenty-nine subjects that States may devolve to them.

The question is testing whether a candidate confuses 'has no power of its own' with 'has power conferred by State law'. Local bodies in India are creatures of State legislation within a constitutional frame: the Constitution guarantees their existence, their term and their elections, while the content of their powers, including taxation, is left to each State legislature. Article 243H is the hinge, and Article 243-I completes the picture by requiring the Governor to constitute a State Finance Commission every five years to recommend how taxes should be shared with, or assigned to, the Panchayats. In practice the taxes Panchayats levy are small and local — property tax, market and vehicle fees, water rates — which is why the finance-commission transfers matter so much.

• Article 243D reserves seats in every Panchayat for the Scheduled Castes and Scheduled Tribes in proportion to population, and not less than one-third of seats and chairperson offices for women.
• Article 243H allows the State legislature to authorise a Panchayat to levy, collect and appropriate taxes, duties, tolls and fees.
• The same Article provides for assigning State taxes to Panchayats and for grants-in-aid from the Consolidated Fund of the State.
• Article 243-I requires the Governor to constitute a State Finance Commission every five years to review Panchayat finances.
• Part IX was inserted by the Constitution (Seventy-third Amendment) Act, 1992, and the Eleventh Schedule lists twenty-nine subjects for devolution.

• Reading 'the State legislature may authorise' as a denial of taxing power.
• Confusing the State Finance Commission under Article 243-I with the Union Finance Commission under Article 280.
• Assuming the three-tier structure applies everywhere; States with a population below twenty lakh may skip the intermediate tier.

As a two-statement item pairing a true reservation provision with a false claim about powers or finances.

• practice — not a real PYQ

  Under which Article may a State legislature authorise a Panchayat to levy, collect and appropriate taxes, duties, tolls and fees?

  • (a)Article 243D
  • (b)Article 243G
  • (c)Article 243H
  • (d)Article 243K

  Answer(c) Article 243H — the provision on powers to impose taxes by, and funds of, the Panchayats.

• practice — not a real PYQ

  The Eleventh Schedule of the Constitution of India contains how many subjects?

  • (a)18
  • (b)22
  • (c)29
  • (d)31

  Answer(c) 29 — the subjects that may be devolved to Panchayats, added by the Seventy-third Amendment. The Twelfth Schedule has 18 municipal subjects.