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45. The Panchayati Raj institutions existed since long. The West Bengal Panchayat Act was promulgated in 1973, but, it was observed that the institutions had not been able to acquire the status and dignity of viable and responsive public bodies, due to a number of reasons, including absence of regular elections, pronounced supersession, insufficient representation of the weaker section, inadequate devolution of powers and lack of financial resources. In the objects and reasons appended to the 72nd Amendment Bill 1991, which was enacted as the 73rd Amendment Act 1992, it had been categorically mentioned that, in the light of the experience which the legislature had in the preceding 40 years and in view of the shortcomings observed, there was an imperative need to enshrine certain basic and essential features of the Panchayati Raj institutions in the Constitution, not only to impart continuity to the institutions, but also to strengthen them. Accordingly, it was proposed that a new part should be added to the Constitution relating to Panchayats. The provisions of Article 40 of the Constitution of India relating to Directive Principle State Policy was sought to be implemented by promulgating the 73rd Amendment Act 1992 and to ensure people's participation in development and democratic decentralization.

46. Devolution of powers and responsibilities on the Panchayats, regarding preparation of plans for economic development, securing social justice and implementation of developmental schemes were the main objectives of such amendment. Accordingly, the Constitution of India was amended by introducing Part IX thereto. Article 243G deals with powers and responsibilities of the Panchayats, which is quoted below:-

243G. Powers, authority and responsibilities of Panchayats Subject to the provisions of this Constitution the Legislature of a State may, by law, endow the Panchayats with such powers and authority and may be necessary to enable them to function as institutions of self- government and such law may contain provisions for the devolution of powers and responsibilities upon Panchayats, at the appropriate level, subject to such conditions as may be specified therein, with respect to--