Part IX: The Panchayats
Article 243J: Audit of Accounts of Panchayats
Original Article:
The Legislature of a State may, by law, make provisions with respect to the maintenance of accounts by the Panchayats and the auditing of such accounts.
Amendments:
This article is part of the 73rd Constitutional Amendment Act, 1992, which empowered Panchayats.
Explanation:
Article 243J reflects India’s commitment to ensuring financial accountability in local governance by empowering State Legislatures to create provisions for Panchayat accounts.
Clause-by-Clause Explanation:
- Power to Make Laws for Maintenance of Panchayat Accounts: This clause ensures states can regulate financial practices aligned with accountability principles.
- Auditing of Panchayat Accounts: Ensures public funds are used responsibly, strengthening public trust in local governance.
Legislative History:
Introduced through the 73rd Constitutional Amendment, this article institutionalized Panchayati Raj, ensuring financial accountability at the local level.
Real-life Examples:
- The Maharashtra Local Fund Audit Act mandates the annual audit of Panchayat accounts.
- Karnataka's Panchayat Raj Act includes detailed provisions for auditing and maintaining Panchayat accounts.
Frequently Asked Questions (FAQs):
It ensures Panchayats maintain financial accountability through state-legislated auditing practices.
Auditing identifies misuse of public funds and ensures responsible utilization of resources.
State legislatures enact laws specifying how Panchayat accounts are maintained and audited.
Debates and Deliberations:
During discussions on the 73rd Amendment, legislators highlighted the need for financial accountability in Panchayats.
- Mr. Shantaram Naik emphasized the importance of state autonomy in auditing Panchayat accounts.
- Dr. Madhavrao Scindia raised concerns about potential misuse of funds without strict auditing laws.
- Smt. Margaret Alva supported the provision, emphasizing its role in empowering grassroots governance.