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Q91 (IAS/2025) Polity & Governance › Local Government › Panchayati Raj system Answer Verified

Consider the following statements : I. Panchayats at the intermediate level exist in all States. II. To be eligible to be a Member of a Panchayat at the intermediate level, a person should attain the age of thirty years. III. The Chief Minister of a State constitutes a commission to review the financial position of Panchayats at the intermediate levels and to make recommendations regarding the distribution of net proceeds of taxes and duties, leviable by the State, between the State and Panchayats at the intermediate level. Which of the statements given above are not correct?

Result
Your answer: —  ·  Correct: D
Explanation

All three statements are incorrect, making option D the correct answer.

**Statement I is incorrect:** A state having a population not exceeding 20 lakh may not constitute panchayats at the intermediate level.[1] Therefore, panchayats at the intermediate level do not exist in all states.

**Statement II is incorrect:** A person who has attained the age of 21 years will be eligible to be a member[2] of a Panchayat, not 30 years as stated. The age requirement is 21 years for panchayat membership at all levels.

**Statement III is incorrect:** The governor of a state shall, after every five years, constitute a finance commission to review the financial position of the panchayats.[4] It is the Governor who constitutes the State Finance Commission, not the Chief Minister. Additionally, the commission reviews the distribution between the state and the panchayats of the net proceeds of taxes and allocation of shares amongst the panchayats at all levels[3], not just at the intermediate level.

Sources
  1. [1] Indian Polity, M. Laxmikanth(7th ed.) > Chapter 39: Panchayati Raj > Salient Features > p. 389
  2. [2] Introduction to the Constitution of India, D. D. Basu (26th ed.). > Chapter 18: PANCHAYATS > Qualification for membership. > p. 320
  3. [3] Indian Polity, M. Laxmikanth(7th ed.) > Chapter 39: Panchayati Raj > Salient Features > p. 390
  4. [4] Indian Polity, M. Laxmikanth(7th ed.) > Chapter 39: Panchayati Raj > Salient Features > p. 390
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Don’t just practise – reverse-engineer the question. This panel shows where this PYQ came from (books / web), how the examiner broke it into hidden statements, and which nearby micro-concepts you were supposed to learn from it. Treat it like an autopsy of the question: what might have triggered it, which exact lines in the book matter, and what linked ideas you should carry forward to future questions.
Q. Consider the following statements : I. Panchayats at the intermediate level exist in all States. II. To be eligible to be a Member of a…
At a glance
Origin: From standard books Fairness: High fairness Books / CA: 10/10 · 0/10

This is a 'Gatekeeper Question'—getting this wrong disqualifies you from the race. It relies entirely on the foundational text of the 73rd Amendment found in Laxmikanth and NCERT. The traps (Age 30 vs 21, CM vs Governor) are standard UPSC inversions that require zero current affairs, just precise static memory.

How this question is built

This question can be broken into the following sub-statements. Tap a statement sentence to jump into its detailed analysis.

Statement 1
Do panchayats at the intermediate level exist in all Indian states under the Constitution (Panchayati Raj system)?
Origin: Direct from books Fairness: Straightforward Book-answerable
From standard books
Indian Polity, M. Laxmikanth(7th ed.) > Chapter 39: Panchayati Raj > Salient Features > p. 389
Presence: 5/5
“Panchayati Raj '!1 389 about uniformity in the structure of panchayati raj throughout the country. However, a state having a population not exceeding 20 lakh may not constitute panchayats at the intermediate level. Election of Members and Chairpersons 1. The members of panchayats at the village, intermediate and district levels shall be elected directly by the people. Further, the chairperson of panchayats at the intermediate and district levels shall be elected indirectly—by and from amongst the elected members thereof. However, the chairperson of a panchayat at the village level shall be elected in such manner as the state legislature determines.”
Why this source?
  • Explicitly states a state having population not exceeding 20 lakh may not constitute panchayats at the intermediate level.
  • Frames this as an exception to uniformity in the three-tier structure, directly answering whether intermediates exist in all states.
Introduction to the Constitution of India, D. D. Basu (26th ed.). > Chapter 18: PANCHAYATS > PANCHAYATS > p. 319
Presence: 5/5
“PART IX of the Constitution envisages a three-tier 3-tier system. of Panchayats, namely, (a) The village level; (b) The District Panchayat at the district level; (c) The Intermediate Panchayat which stands between the village and district Panchayats in the States where the population is above 20 lakhs. All the seats in a Panchayat shall be filled by persons Composition. chosen by direct election from territorial constituencies in the Panchayat area. The electorate has been named 'Gram Sabha' consisting of persons registered in the electoral rolls relating to a village comprised within the area of a Panchayat. In this way, representative democracy will be introduced at the grass roots.”
Why this source?
  • Specifies the intermediate panchayat exists only in States where the population is above 20 lakhs.
  • Links the existence of the intermediate tier directly to a population threshold, making the rule and its exception clear.
Indian Constitution at Work, Political Science Class XI (NCERT 2025 ed.) > Chapter 8: LOCAL GOVERNMENTS > Three Tier Structure > p. 183
Presence: 5/5
“All States now have a uniform three tier Panchayati Raj structure. At the base is the 'Gram Panchayat'. A Gram Panchayat covers a village or group of villages. The intermediary level is the Mandal (also referred to as Block or Taluka). These bodies are called Mandal or Taluka Panchayats. The intermediary level body need not be constituted in smaller States. At the apex is the Zilla Panchayat covering the entire rural area of the District. The amendment also made a provision for the mandatory creation of the Gram Sabha. The Gram Sabha would comprise all the adult members registered as voters in the Panchayat area.”
Why this source?
  • Says the intermediary level need not be constituted in smaller States, confirming the exception in simpler terms.
  • Reinforces that the three-tier model is not mandatory for states below the size threshold.
Statement 2
What is the minimum age requirement to be a member of a panchayat at the intermediate level in India?
Origin: Direct from books Fairness: Straightforward Book-answerable
From standard books
Introduction to the Constitution of India, D. D. Basu (26th ed.). > Chapter 18: PANCHAYATS > Qualification for membership. > p. 320
Presence: 5/5
“State Legislature shall be qualified to be chosen as a member of a Panchayat. The only difference is that a person who has attained the age of 21 years will be eligible to be a member (in case of State Legislature the prescribed age is 25 years-Anicle 173). If a question arises as to whether a member has become subject to any disqualification, the question shall be referred to such authority as the State Legislature may provide by law.”
Why this source?
  • Directly states the eligibility age for membership as 21 years.
  • Contrasts Panchayat eligibility with State Legislature (25 years), clarifying the 21-year rule applies to Panchayat membership.
  • Found in a constitutional commentary section specifically on Panchayats and qualification for membership, giving topical authority.
Statement 3
Which authority constitutionally constitutes the State Finance Commission to review the financial position of panchayats in India?
Origin: Direct from books Fairness: Straightforward Book-answerable
From standard books
Indian Polity, M. Laxmikanth(7th ed.) > Chapter 39: Panchayati Raj > Salient Features > p. 390
Presence: 5/5
“Finance Commission The governor of a state shall, after every five years, constitute a finance commission to review the financial position of the panchayats. It shall make the following recommendations to the Governor: • 1. The principles that should govern: • (a) The distribution between the state and the panchayats of the net proceeds of the taxes, duties, tolls and fees levied by the state and allocation of shares amongst the panchayats at all levels. • (b) The determination of taxes, duties, tolls and fees that may be assigned to the panchayats. (c) The grants-in-aid to the panchayats from the consolidated fund of the state.”
Why this source?
  • Explicit wording: states 'The governor of a state shall, after every five years, constitute a finance commission to review the financial position of the panchayats.'
  • Directly links the Governor as the constitutional authority responsible for constituting the State Finance Commission.
Laxmikanth, M. Indian Polity. 7th ed., McGraw Hill. > Chapter 39: Panchayati Raj > Salient Features > p. 390
Presence: 5/5
“Finance Commission: The governor of a state shall, after every five years, constitute a Finance Commission to review the financial position of the Panchayats. It shall make the following recommendations to the Governor: • 1. The principles that should govern: • (a) The distribution between the state and the panchayats of the net proceeds of the taxes, duties, tolls and fees levied by the state and allocation of shares amongst the panchayats at all levels.• (b) The determination of taxes, duties, tolls and fees that may be assigned to the panchayats. • (c) The grants-in-aid to the panchayats from the consolidated fund of the state_ • 2.”
Why this source?
  • Repeats the same clear formulation: 'The governor of a state shall, after every five years, constitute a Finance Commission to review the financial position of the Panchayats.'
  • Provides corroborating textual statement reinforcing the Governor's role.
Statement 4
Does the State Finance Commission for panchayats in India recommend the distribution of the net proceeds of state taxes and duties between the State and panchayats and the allocation among panchayats at all levels?
Origin: Direct from books Fairness: Straightforward Book-answerable
From standard books
Indian Polity, M. Laxmikanth(7th ed.) > Chapter 39: Panchayati Raj > Salient Features > p. 390
Presence: 5/5
“Finance Commission The governor of a state shall, after every five years, constitute a finance commission to review the financial position of the panchayats. It shall make the following recommendations to the Governor: • 1. The principles that should govern: • (a) The distribution between the state and the panchayats of the net proceeds of the taxes, duties, tolls and fees levied by the state and allocation of shares amongst the panchayats at all levels. • (b) The determination of taxes, duties, tolls and fees that may be assigned to the panchayats. (c) The grants-in-aid to the panchayats from the consolidated fund of the state.”
Why this source?
  • Explicitly states the Governor shall constitute a Finance Commission to review Panchayats' finances every five years.
  • Specifies the Commission must recommend the distribution between the State and the Panchayats of net proceeds of taxes, duties, tolls and fees levied by the State and the allocation of shares among panchayats at all levels.
Introduction to the Constitution of India, D. D. Basu (26th ed.). > Chapter 18: PANCHAYATS > Panchayat Finance Commissions. > p. 320
Presence: 5/5
“73rd Amendment came into force and thereafter every five years the State Government shall appoint a Finance Commission to review the financial position of the Panchayats and to make recommendations as to-- (a) the distribution between the State and the Panchyats of the net proceeds of taxes, duties, tolls and fees leviable by the State which may be divided between them and how allocation would be made among various levels of Panchayals; (b) what taxes, duties, tolls and fees may be assigned to the Panchayats; (c) grant-in-aid to the Panchayats.”
Why this source?
  • Directly repeats the five-year appointment and review mandate for the State Finance Commission.
  • Specifies recommendations include distribution of net proceeds of State-levied taxes, and how allocation is to be made among various levels of Panchayats.
Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 15: Regional Development and Planning > 5. The Panchayat-Level Planning > p. 59
Presence: 4/5
“It has also been directed to constitute a State Finance Commission (SFC) to review every five years, the financial position of Panchayats, to make recommendations about the principle governing the distribution of revenue between the state and the Panchayats, and determination of the grants-in-aid to the Panchayats from the Consolidated Funds of the State. The implementation of the plan at the Panchayat-level is the responsibility of the Village Development Officer (VDO) and the secretary, and is supervised by the Gram Sabha which is headed by the Gram Pradhan. Under the existing provisions, funds for the Gram-Sabha (Village Panchayat) are directly being allocated from the centre to execute rural development programmes like Integrated Rural Development (IRDP) and Jawahar Rojgar Yojna (JRY).”
Why this source?
  • Indicates a State Finance Commission is directed to review Panchayat finances every five years and make recommendations on revenue distribution between the State and Panchayats.
  • Includes determination of grants-in-aid, linking resource distribution and fiscal support for Panchayats.
Pattern takeaway: UPSC consistently creates traps by swapping 'Constitutional Heads' (Governor/President) with 'Political Heads' (CM/PM). Whenever you see a constitutional duty assigned to a CM or PM in a prelims statement, be hyper-skeptical. Additionally, they love testing the *exceptions* to general rules (e.g., the 20 lakh population threshold).
How you should have studied
  1. [THE VERDICT]: Absolute Sitter. Direct hits from Laxmikanth (Ch: Panchayati Raj) and NCERT Class XI (Local Governments).
  2. [THE CONCEPTUAL TRIGGER]: The 73rd Constitutional Amendment Act > Structural Mandates (3-tier) & Constitutional Authorities (SFC/SEC).
  3. [THE HORIZONTAL EXPANSION]: Memorize the 'Polity Number Game': Age 21 (Panchayat), 25 (Lok Sabha), 30 (Rajya Sabha), 35 (President). Memorize the 'Authority Matrix': Governor appoints SFC & SEC; President appoints UPSC/EC. Memorize the 'Exceptions': 20 Lakh population limit for intermediate tier; PESA areas; 5th/6th Schedule exemptions.
  4. [THE STRATEGIC METACOGNITION]: When reading a constitutional provision, always play 'Devil's Advocate': Is this rule absolute? (No, <20L exception). Who signs the paper? (Governor, not CM). UPSC creates statements by swapping the 'Authority' (CM for Governor) and the 'Number' (30 for 21).
Concept hooks from this question
📌 Adjacent topic to master
S1
👉 20 lakh population threshold for intermediate panchayats
💡 The insight

Intermediate panchayats are mandatory only in states with population above 20 lakh; smaller states may omit the intermediate tier.

High-yield for questions on the structure of Panchayati Raj and constitutional exceptions; connects to decentralisation and administrative design. Mastering this helps answer questions about mandatory vs. optional local-government tiers and related amendment effects.

📚 Reading List :
  • Indian Polity, M. Laxmikanth(7th ed.) > Chapter 39: Panchayati Raj > Salient Features > p. 389
  • Introduction to the Constitution of India, D. D. Basu (26th ed.). > Chapter 18: PANCHAYATS > PANCHAYATS > p. 319
  • Indian Constitution at Work, Political Science Class XI (NCERT 2025 ed.) > Chapter 8: LOCAL GOVERNMENTS > Three Tier Structure > p. 183
🔗 Anchor: "Do panchayats at the intermediate level exist in all Indian states under the Con..."
📌 Adjacent topic to master
S1
👉 73rd Amendment & three-tier Panchayati Raj
💡 The insight

The 73rd Amendment constitutionalised panchayats and envisaged a three-tier system: village, intermediate, and district.

Core to constitutional governance and local self-government topics; links to schedules/parts of the Constitution, decentralisation, and subsequent state enactments. Knowing this enables tackling questions on constitutional reforms and tiered governance.

📚 Reading List :
  • Indian Polity, M. Laxmikanth(7th ed.) > Chapter 4: Salient Features of the Constitution > III I Three-tier Government > p. 33
  • Indian Polity, M. Laxmikanth(7th ed.) > Chapter 39: Panchayati Raj > Panchayati Raj > p. 383
🔗 Anchor: "Do panchayats at the intermediate level exist in all Indian states under the Con..."
📌 Adjacent topic to master
S1
👉 State discretion under Part IX (voluntary provisions)
💡 The insight

Part IX allows certain matters (e.g., manner of electing village chairpersons, representation rules) to be determined by state legislatures, showing implementation flexibility.

Important for questions on centre–state relations, devolution of powers, and the operational autonomy of local bodies; it links constitutional provisions to practical variability across states and aids in evaluating policy implementation questions.

📚 Reading List :
  • Laxmikanth, M. Indian Polity. 7th ed., McGraw Hill. > Chapter 39: Panchayati Raj > III I Voluntary Provisions > p. 392
  • Indian Polity, M. Laxmikanth(7th ed.) > Chapter 39: Panchayati Raj > Panchayati Raj > p. 383
🔗 Anchor: "Do panchayats at the intermediate level exist in all Indian states under the Con..."
📌 Adjacent topic to master
S2
👉 Minimum age for Panchayat membership (21 years)
💡 The insight

Panchayat members must have attained 21 years of age to be eligible for election.

High-yield for questions on local governance eligibility and constitutional provisions; connects to broader topics of electoral qualifications and comparisons with legislative age requirements, enabling elimination-style answers in MCQs.

📚 Reading List :
  • Introduction to the Constitution of India, D. D. Basu (26th ed.). > Chapter 18: PANCHAYATS > Qualification for membership. > p. 320
🔗 Anchor: "What is the minimum age requirement to be a member of a panchayat at the interme..."
📌 Adjacent topic to master
S2
👉 Three-tier Panchayat structure and 20 lakh threshold
💡 The insight

Panchayats operate at village, intermediate and district levels, with the intermediate tier required only where state population exceeds 20 lakh.

Important for questions on Panchayati Raj architecture and federal variations; links to administrative geography, decentralisation debates, and constitutional amendments affecting local bodies.

📚 Reading List :
  • Introduction to the Constitution of India, D. D. Basu (26th ed.). > Chapter 18: PANCHAYATS > PANCHAYATS > p. 319
  • Indian Polity, M. Laxmikanth(7th ed.) > Chapter 39: Panchayati Raj > Salient Features > p. 389
🔗 Anchor: "What is the minimum age requirement to be a member of a panchayat at the interme..."
📌 Adjacent topic to master
S2
👉 Election method: direct members, indirect chairpersons at higher tiers
💡 The insight

Members at village, intermediate and district levels are elected directly; chairpersons at intermediate and district levels are elected indirectly from among elected members.

Frequently tested in governance and polity sections; helps in understanding democratic processes at the grassroots and in answering questions on electoral procedures and reservation/representation mechanisms.

📚 Reading List :
  • Indian Polity, M. Laxmikanth(7th ed.) > Chapter 39: Panchayati Raj > Salient Features > p. 389
  • Indian Polity, M. Laxmikanth(7th ed.) > Chapter 39: Panchayati Raj > II ICompulsory Provisions > p. 392
🔗 Anchor: "What is the minimum age requirement to be a member of a panchayat at the interme..."
📌 Adjacent topic to master
S3
👉 Appointing authority: Governor of the State
💡 The insight

The Governor of a state is the constitutional authority who constitutes the State Finance Commission for Panchayats.

High-yield for polity questions: knowing which constitutional office appoints bodies is frequently tested and connects to studies of Centre–State relations, state executive powers, and constitutional provisions under Part IX. Enables answering questions on constitutional appointments and institutional design.

📚 Reading List :
  • Indian Polity, M. Laxmikanth(7th ed.) > Chapter 39: Panchayati Raj > Salient Features > p. 390
  • Laxmikanth, M. Indian Polity. 7th ed., McGraw Hill. > Chapter 39: Panchayati Raj > Salient Features > p. 390
🔗 Anchor: "Which authority constitutionally constitutes the State Finance Commission to rev..."
🌑 The Hidden Trap

The State Election Commissioner (SEC) is appointed by the Governor, but can ONLY be removed in the like manner and on the like grounds as a Judge of a High Court. UPSC will likely trap you by saying 'removed by the Governor at his pleasure'.

⚡ Elimination Cheat Code

The 'Constitutional Dignity' Hack: Constitutional bodies (like Finance Commissions) are almost always constituted by the Head of State (President/Governor), not the Head of Government (PM/CM). Statement III says 'Chief Minister constitutes...'—this is constitutionally inappropriate language. Mark it wrong immediately.

🔗 Mains Connection

Mains GS-2 (Devolution of Powers): The failure of states to constitute State Finance Commissions (SFCs) regularly is a major bottleneck for fiscal federalism. Link this to the 15th Finance Commission's mandate that local bodies must have audited accounts to receive performance grants.

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SIMILAR QUESTIONS

IAS · 2016 · Q100 Relevance score: 2.94

Consider the following statements : 1. The minimum age prescribed for any person to be a member of Panchayat is 25 years. 2. A Panchayat reconstituted after premature dissolution continues only for the remainder period. Which of the statements given above is/are correct?

CDS-I · 2020 · Q99 Relevance score: 2.86

Which of the following statements with regard to the functioning of the Panchayats is not correct?

NDA-II · 2012 · Q57 Relevance score: 2.22

Consider the following statements: The State government shall appoint a fincance commission to review the financial position of the Panchayats and to make recommendations as to 1. the distribution between the State and Panchayats of the net proceeds of taxes, tolls and fees leviable by the states. 2. the determinates of the taxes duteis, tolls and fees which may be assigned to the panchayats. 3. the principles that will determine grant-in- aid to the Panchayats. Which of the statement(s) given above is/are correct?

CAPF · 2014 · Q18 Relevance score: 2.04

Which of the following statements is true ?