The philosophy of Panchayat Raj is deeply steeped in the tradition and culture of rural India. It provides for a system of self-governance at the village level, however, it did not have a constitutional status till 1992.

April 23, 1993 was a landmark day in the history of Panchayati Raj in India as on this day, the institution of Panchayati Raj was accorded constitutional status through the Constitution (73rd Amendment) Act, 1992, thereby seeking to transform Mahatma Gandhi's dream of Gram Swaraj into reality.

The 73rd Amendment Act, 1992 mandates provisions for:

• Establishment of a three-tier structure (Village Panchayat, Panchayat Samiti or intermediate level Panchayat and Zilla Parishad or district level Panchayat).
• Establishment of Gram Sabhas at the village level.
• Regular elections to Panchayats every five years.
• Proportionate seat reservation for SCs/STs.
• Reservation of not less than 1/3rd seats for women.
• Constitution of State Finance Commissions to recommend measures to improve the finances of Panchayats.

Constitution of State Election Commission.

The 73rd Amendment Act vests power in the State Government to endow Panchayats with such powers and authority as may be necessary to enable them to function as institutions of self-government such as:

• Preparation of plans and their execution for economic development and social justice in relation to 29 subjects listed in the XI schedule of the Constitution.
• Authority to Panchayats to levy, collect and appropriate taxes, duties, tolls and fees.
• Transfer of taxes, duties, tolls and fees collected by the States to Panchayats.

Gram Sabha

Gram Sabha is a body consisting of persons registered in the electoral rolls of a village or a group of villages which elect a Panchayat.

A vibrant and enlightened Gram Sabha is central to the success of the Panchayati Raj system. State Governments have been urged :

• To vest in the Gram Sabha, powers on the lines envisaged in the Provisions of the Panchayats (Extension to the Scheduled Areas) Act, 1996.
• To make a mandatory provision in the Panchayati Raj Act for holding Gram Sabha meetings throughout the country on the occasion of the Republic Day, Labour Day, Independence Day and Gandhi Jayanti.
• To make a mandatory provision in the Panchayati Raj Act specifying separately, the quorum for Gram Sabha meetings, for ordinary meetings, meetings convened for special purposes and re-convened meetings due to cancellation of and earlier meeting for want of quorum.
• To make members of the Gram Sabhas aware of their powers and responsibilities with a view to ensuring mass participation, particularly of the hitherto marginalised, groups, such as women and SCs/STs.
• To lay down procedures for the Gram Sabha to effectively carry out social audit of beneficiary oriented development programmes of the Ministry of Rural Development, particularly the legal powers of the Gram Sabha to order recovery or punishment for financial mismanagement.
• To evolve a plan of action for generating wide publicity for Gram Sabha meetings.
• To evolve guidelines/procedures for holding Gram Sabha meetings and a model list of business for such meetings.
• To generate awareness as to the rights of the Gram Sabha with respect to control over natural resources, land records and conflict resolution. 

The 73rd Amendment Act envisages empowered Panchayats as institutions of self-government at the village level capable of:

• Planning and executing village level public works and their maintenance.
• Ensuring welfare of the people at the village level including health, education, communal harmony, social justice particularly with regard to gender and caste based discrimination, dispute resolution, welfare of children, especially the girl child.

The 73rd Amendment Act also envisages empowered Gram Sabhas as the Parliament of the People at the grassroots level to whom the Gram Panchayats are solely accountable.