CBSE Class 10 · Federalism

Decentralisation in India Class 10: The Third Tier of Government

Updated 14 October 2026 · Fact-checked

Decentralisation means taking power from Central and State governments and giving it to local government. India's 1992 constitutional amendment made the third tier stronger: regular elections, reserved seats for SCs, STs and OBCs, at least one-third seats for women, State Election Commissions and sharing of powers and revenue. Panchayati raj and municipalities form this tier.

Notice the third tier, Local Government, and the five changes in 1992 that made it stronger and more independent.

Illustration drawn for QuestionBuddy.

Understand Decentralisation in India

Why a third tier. India is vast and the States themselves are as big as independent countries of Europe, with internal diversity, so federal power-sharing needs another tier below the State governments. This is the rationale for decentralisation, which created the third tier: local government.

What decentralisation is and why it helps. When power is taken away from Central and State governments and given to local government, it is called decentralisation. The basic ideas:

many problems and issues are best settled at the local level;
people know their local problems better and have better ideas on where to spend money and how to manage things efficiently;
at the local level people can participate directly in decision-making, which builds a habit of democratic participation;
local government is the best way to realise local self-government, an important principle of democracy.

Before 1992. The Constitution recognised the need, and panchayats and municipalities were set up in all States. But they were directly under State control, elections were not held regularly, and they had no powers or resources of their own, so there was very little real decentralisation.

The 1992 constitutional amendment made the third tier more powerful and effective:
1. Regular elections to local bodies became constitutionally mandatory.
2. Seats reserved in elected bodies and executive heads for Scheduled Castes, Scheduled Tribes and Other Backward Classes.
3. At least one-third of all positions reserved for women.
4. An independent State Election Commission in each State conducts panchayat and municipal elections.
5. State governments must share some powers and revenue with local bodies; the nature of sharing varies from State to State.

Rural local government: panchayati raj.

Gram panchayat: for each village (or group of villages); a council of ward members (panch) and a president (sarpanch), directly elected by all adults of the ward or village. It is the decision-making body for the village.
Gram sabha: all the voters of the village; the panchayat works under its overall supervision. It must meet at least twice or thrice a year to approve the annual budget and review the panchayat's performance.
Panchayat samiti (block or mandal): a group of gram panchayats; members elected by all panchayat members in the area.
Zilla (district) parishad: all panchayat samitis of a district; most members elected, plus Lok Sabha members and MLAs of the district and some officials; its chairperson is the political head.

Urban local government. Municipalities in towns and municipal corporations in big cities, controlled by elected bodies. The political head of a municipality is the municipal chairperson; of a municipal corporation, the mayor.

Achievements and limits. This is the largest experiment in democracy anywhere: about 36 lakh elected representatives in panchayats and municipalities, more than the population of many countries. Constitutional status has deepened democracy and increased women's representation and voice. But gram sabhas are not held regularly, most States have not transferred significant powers or adequate resources, so India is still a long way from the ideal of self-government.

Other experiments. In Porto Alegre, Brazil, a parallel organisation lets nearly 13 lakh residents take part in making the city budget through ward and city meetings; about 20,000 people take part each year, so money is not spent only on rich colonies, buses run to poor colonies, and slum-dwellers cannot be evicted without resettlement. A similar effort took place in parts of Kerala, where people helped plan their locality's development.

Decentralisation in India: key facts

Decentralisation (definition): Power taken from Central and State governments and given to local government; Third tier.
Why decentralise: Local problems settled locally; people know needs and spending priorities; direct participation; local self-government; Four-point answer.
1992 amendment: Regular elections mandatory; reservation for SC, ST, OBC; 1/3 seats for women; State Election Commission; sharing of powers and revenue; Five changes.
Panchayati raj structure: Gram panchayat (panch, sarpanch) under gram sabha -> panchayat samiti (block/mandal) -> zilla parishad (chairperson); Gram sabha meets at least 2-3 times a year.
Urban bodies: Municipality (chairperson) in towns; municipal corporation (mayor) in big cities
Results: About 36 lakh elected representatives; deeper democracy; more women's voice; but irregular gram sabhas, few powers and resources; Balanced evaluation.

How to answer Decentralisation in India questions

Questions ask what decentralisation is and why it is needed, the provisions of the 1992 amendment, the structure of panchayati raj, the differences before and after 1992, and an evaluation of local government.

1Define decentralisation in one line, then give reasons.
2For the 1992 amendment, list the five provisions in order.
3For structure, go bottom-up: gram sabha and gram panchayat, panchayat samiti, zilla parishad; then urban bodies.
4For 'before and after 1992', contrast State control, irregular elections and no resources with mandatory elections, reservations and an Election Commission.
5For evaluation, give two achievements (36 lakh representatives, women's voice) and two limits (gram sabhas, powers and resources).

Decentralisation in India in real life

The idea, met in an everyday situation. Answer the question in your own words, then compare with the model answer. The one-line hook is what to remember.

Why local decisions work better

Suppose the State government decides to build a community hall in a village, but the villagers say what they really need is a culvert so that children can reach school during the rains.

Explain how decentralisation could have led to a better decision.

Try it first, then show the solutionSolution

Local people know their problems better.
They have better ideas on where to spend money.
A gram sabha, where all voters meet, could approve the budget and set priorities.
This also builds a habit of democratic participation.

Answer: With real decentralisation, the gram panchayat, supervised by the gram sabha of all village voters, would decide local spending. Villagers know their problems best and would have chosen the culvert children need. Direct participation in such decisions also builds the habit of democracy, which is why local self-government is valued.

Memory hook: Those who live the problem know the fix.

Tricks to remember Decentralisation in India

Short memory aids. Say each one aloud once, then use it on a question the same day.

1992's E-R-W-C-S
Elections regular, Reservation (SC/ST/OBC), Women one-third, Commission (State Election), Sharing of powers and revenue.
Use it when: Provisions of the 1992 amendment.
Village ladder
Sabha supervises Panchayat; Panchayats make Samiti; Samitis make Zilla Parishad: 'S-P-S-Z'.
Use it when: Panchayati raj structure.
Town vs city head
Municipality: chairperson; Corporation: mayor.
Use it when: Matching questions.

Decentralisation in India: solved examples

Ordered from board level to HOTS. Try each one before you open the solution.

Example 1: Women's reservation · 1 mark · MCQBoard level

Under the 1992 amendment, the minimum share of positions in local bodies reserved for women is:
(a) one-fourth
(b) one-third
(c) one-half
(d) two-thirds

Try it first, then show the solutionSolution

NCERT: at least one-third of all positions are reserved for women (1 mark).

Answer: (b) one-third

Example 2: Why decentralisation (2 marks) · 2 marks · Very short answerBoard level

What is the basic idea behind decentralisation? (2 marks)

Try it first, then show the solutionSolution

Many problems are best settled locally, as people know their problems and spending priorities better (1 mark).
People can participate directly in decisions, building a habit of democratic participation and local self-government (1 mark).

Answer: Many problems are best settled locally, because people know their own problems and where money should be spent. Local government also lets people take part directly in decisions, building a habit of democratic participation.

Example 3: Before and after 1992 (3 marks) · 3 marks · Short answerHarder board level

State the differences between local government in India before and after the constitutional amendment of 1992. (3 marks)

Try it first, then show the solutionSolution

Before: local bodies were directly under State control; after: they have constitutional status and States must share some powers and revenue (1 mark).
Before: elections were irregular; after: regular elections are mandatory, conducted by an independent State Election Commission (1 mark).
Before: no reservations; after: seats reserved for SCs, STs and OBCs and at least one-third for women (1 mark).

Answer: Before 1992, local bodies were directly controlled by State governments and had no powers or resources of their own; afterwards States must share some powers and revenue with them. Earlier, elections were irregular; now regular elections are mandatory and conducted by an independent State Election Commission. Now seats are also reserved for SCs, STs, OBCs and at least one-third for women.

Example 4: Assertion-reason: gram sabha · 1 mark · Assertion-reasonHarder board level

Assertion (A): The gram panchayat works under the overall supervision of the gram sabha.
Reason (R): All the voters of the village are members of the gram sabha, which approves the budget and reviews the panchayat's performance.
(a) Both A and R are true, and R is the correct explanation of A.
(b) Both A and R are true, but R is not the correct explanation of A.
(c) A is true, but R is false.
(d) A is false, but R is true.

Try it first, then show the solutionSolution

The gram sabha's role of approving the budget and reviewing performance is what makes it the supervisor; R explains A (1 mark).

Answer: (a) Both A and R are true, and R is the correct explanation of A.

Example 5: Evaluate local government (5 marks) · 5 marks · Long answerHOTS / competency

'Constitutional status for local government has helped to deepen democracy in India, yet we are a long way from self-government.' Examine the statement. (5 marks)

Try it first, then show the solutionSolution

The 1992 amendment made regular elections mandatory, set up State Election Commissions and required sharing of powers and revenue (1 mark).
It is the largest experiment in democracy anywhere: about 36 lakh elected representatives (1 mark).
Reservation of at least one-third seats for women increased women's representation and voice; SCs, STs and OBCs also gained seats (1 mark).
But gram sabhas are not held regularly, weakening people's direct supervision (1 mark).
Most States have not transferred significant powers or adequate resources, so the ideal of self-government is still far (1 mark).

Answer: The 1992 amendment gave local government constitutional status: regular elections became mandatory, State Election Commissions conduct them, and States must share some powers and revenue. With about 36 lakh elected representatives, it is the largest experiment in democracy anywhere. Reservations of at least one-third of seats for women, and seats for SCs, STs and OBCs, have widened participation and increased women's voice. Yet problems remain. Elections are held regularly and enthusiastically, but gram sabhas, which should supervise panchayats, are not held regularly. Most State governments have not transferred significant powers or adequate resources to local bodies. So democracy has deepened, but real self-government is still some way off.

Example 6: Case: Porto Alegre · 4 marks · Case-basedHOTS / competency

Read the case and answer the questions.

NCERT describes Porto Alegre, a city in Brazil, which set up a parallel organisation alongside its municipal council so that residents can take real decisions about the city. The city is divided into sectors, each holding a meeting like a gram sabha, and there are city-wide meetings too. Nearly 13 lakh residents can take part in discussing the budget, and about 20,000 actually participate each year. The municipality takes the final decision on the proposals.

(i) Which Indian institution do the sector meetings resemble? (1)
(ii) How many people take part in the exercise every year? (1)
(iii) What benefits did this participatory budgeting bring for poorer residents, and which Indian state has tried something similar? (2)

Try it first, then show the solutionSolution

(i) The gram sabha (1 mark).
(ii) About 20,000 people (1 mark).
(iii) Money is not spent only for rich colonies; buses run to poor colonies; builders cannot evict slum-dwellers without resettling them (1 mark).
(iii) Kerala, where ordinary people took part in planning the development of their locality (1 mark).

Answer: (i) The gram sabha. (ii) About 20,000 people each year. (iii) Because residents help decide the budget, money is not spent only on rich colonies: buses now run to poor colonies and builders cannot evict slum-dwellers without resettling them. In India, a similar experiment took place in parts of Kerala, where ordinary people helped plan their locality's development.

Where students lose marks in Decentralisation in India

The slips examiners see most often, and what to write instead.

Mistake: Confusing gram sabha and gram panchayat
Similar names.
Wrong working
The gram sabha is the elected council of panchs.
Right working
Gram sabha: all village voters; gram panchayat: elected panchs and sarpanch.
Do this: Sabha = all voters; panchayat = elected body.
Usually costs: 1 mark.
Mistake: Wrong share for women
Confused with other figures.
Wrong working
Half of the seats are reserved for women.
Right working
At least one-third.
Do this: One-third.
Usually costs: 1 mark.
Mistake: Only praising local government
Limits forgotten.
Wrong working
Local government has achieved complete self-government.
Right working
Gram sabhas irregular; few powers and resources transferred.
Do this: Add two limits.
Usually costs: 1-2 marks.
Mistake: Missing the definition
Jumping to panchayats.
Wrong working
Decentralisation means panchayats.
Right working
Power taken from Centre and State and given to local government.
Do this: Define first.
Usually costs: 1 mark.

Exam tips

Learn the five provisions of the 1992 amendment: they make a full 5-mark answer with one more point.
Use the 36 lakh figure and women's representation as achievements.
Remember heads: sarpanch (gram panchayat), chairperson (zilla parishad, municipality), mayor (corporation).
Political Science word limits: 40 (2 marks), 60 (3 marks), 120 (5 marks).

Practice questions on Decentralisation in India

Write each answer on paper first. Open the hint only if you are stuck, and the answer only when you have finished.

Q1 · 1 mark · MCQBoard level
The political head of a municipal corporation is called the:
(a) Sarpanch
(b) Mayor
(c) Collector
(d) Governor
Hint
Big cities.
Answer
(b) Mayor
Q2 · 2 marks · Very short answerBoard level
What is the role of the State Election Commission? (2 marks)
Hint
Created by the 1992 amendment.
Answer
It is an independent institution created in each State by the 1992 amendment to conduct panchayat and municipal elections, so that local elections are held regularly and fairly.
Q3 · 3 marks · Short answerHarder board level
Describe the structure of panchayati raj from the village to the district. (3 marks)
Hint
Gram panchayat, samiti, zilla parishad.
Answer
Each village or group of villages has a gram panchayat of ward members (panch) and a sarpanch, directly elected and supervised by the gram sabha of all voters. Several gram panchayats form a panchayat samiti (block or mandal), elected by panchayat members. All samitis of a district form the zilla parishad, mostly elected, with the district's Lok Sabha members and MLAs also members.
Q4 · 2 marks · Very short answerHOTS / competency
Suppose a village's gram sabha has not met for two years. Explain why this weakens local democracy. (2 marks)
Hint
Budget and review.
Answer
The gram sabha of all village voters should meet two or three times a year to approve the panchayat's budget and review its work. If it does not meet, people lose their direct check on the panchayat, which NCERT notes as a key weakness.
Q5 · 1 mark · Assertion-reasonHarder board level
Assertion (A): Before 1992, there was very little effective decentralisation in India.
Reason (R): Local governments were under State control, elections were irregular and they lacked powers and resources.
(a) Both A and R are true, and R is the correct explanation of A.
(b) Both A and R are true, but R is not the correct explanation of A.
(c) A is true, but R is false.
(d) A is false, but R is true.
Hint
NCERT's explanation.
Answer
(a) Both A and R are true, and R is the correct explanation of A.
Q6 · 5 marks · Long answerHOTS / competency
Analyse why local government is described as the best way to realise the principle of local self-government, and suggest two steps to make it more effective. (5 marks)
Hint
Reasons for decentralisation; limits NCERT names; remedies.
Answer
Local government brings decisions close to people. Many problems are best solved locally, since residents know their needs and where money should be spent, and they can manage things more efficiently. People can participate directly, for example through the gram sabha, which builds a habit of democratic participation. That is why it best realises local self-government. Its working can improve in two ways suggested by NCERT's criticism: gram sabhas must meet regularly so that voters approve budgets and review performance, and State governments should transfer significant powers and adequate resources to local bodies. Experiments like participatory budgeting in Porto Alegre and Kerala show how people's participation can be deepened.

Test your recall

Answer in your head or on paper first, then open the card. Pulling an answer out of memory makes it stick far better than re-reading.

1.What is the third tier of government?Show answer
Local government: panchayats and municipalities.
2.Who are members of the gram sabha?Show answer
All the voters in the village.
3.What is a panchayat samiti also called?Show answer
Block or mandal.
4.About how many elected representatives are in local bodies?Show answer
About 36 lakh.
5.Which Brazilian city practises participatory budgeting?Show answer
Porto Alegre.

Decentralisation in India: frequently asked questions

What is decentralisation in Class 10?

Taking power away from Central and State governments and giving it to local government, the third tier.

What changes did the 1992 amendment bring?

Mandatory regular elections, reservations for SCs, STs and OBCs, at least one-third seats for women, State Election Commissions, and sharing of powers and revenue. (Students often search it as the 73rd and 74th Amendments; NCERT calls it the 1992 amendment.)

What is the gram sabha?

The body of all voters of a village, which supervises the gram panchayat, approves its budget and reviews its performance.

What are the problems of local government in India?

Gram sabhas are not held regularly, and most States have not transferred significant powers or adequate resources to local bodies.