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?

Updated 11 Apr 2026 · From UPSC Prelims GS Paper I 2025, Q51

Contents13
UPSC Prelims GS2025Indian Polity
  1. AI and II only
  2. BII and III only
  3. CI and III only
  4. DI, II and III
Show answer

Answer: (D) I, II and III

The question asks which statements are NOT CORRECT.

Let's check each:

(I) 'Panchayats at the intermediate level exist in all States' — NOT CORRECT.

Article 243B(2) of the Constitution says that panchayats at the intermediate level need NOT be constituted in states with a population not exceeding 20 lakhs.

So small states are exempt, meaning intermediate panchayats don't exist everywhere.

(II) 'Minimum age for intermediate panchayat membership is 30 years' — NOT CORRECT.

Article 243F(1) states that a person must have attained the age of 21 years (not 30) to be eligible for membership of a panchayat at any level.

The 30-year age requirement applies to the Rajya Sabha, not panchayats.

(III) 'Chief Minister constitutes the finance commission for panchayats' — NOT CORRECT.

Under Article 243I, the GOVERNOR of the State (not the Chief Minister) constitutes a Finance Commission every five years to review the financial position of panchayats and recommend the distribution of taxes and grants.

The Finance Commission is a constitutional body appointed by the Governor.

All three statements are incorrect.

Answer is (d).

Why this was asked

Article 243B exempts states with population under 20 lakhs from creating intermediate panchayats, so they don't exist everywhere.

The question tests constitutional provisions that students often confuse - age limits for different bodies, and whether Governor or Chief Minister appoints finance commissions.

UPSC is checking if students can distinguish between similar constitutional requirements across different institutions like panchayats, Parliament, and state finance commissions.

Intermediate Panchayats - Constitutional Framework

Indian Polity Panchayats at the intermediate level intermediate level all States

Intermediate Panchayats: When Required & Constitutional Provisions

Must know

Intermediate panchayats are NOT mandatory in states with population ≤ 20 lakh

Article 243B(2) provides exemption for small states from intermediate tier

Three-tier system: Village → Intermediate → District panchayats

Good to know

Intermediate level is called Panchayat Samiti or Block Panchayat in most states

Constitutional Mandate

Article 243B establishes the three-tier panchayati raj structure but includes a crucial exemption. States with populations not exceeding 20 lakh are not required to constitute intermediate panchayats, making this tier optional rather than universal.

Panchayati Raj Tiers

Level

Official Name

Mandatory Status

Constitutional Provision

Village

Gram Panchayat

Mandatory for all states

Article 243B(1)

Intermediate

Panchayat Samiti/Block Panchayat

Optional if population ≤ 20 lakh

Article 243B(2)

District

Zilla Panchayat

Mandatory for all states

Article 243B(1)

States Without Intermediate Panchayats

Goa, Mizoram, Sikkim - population below 20 lakh threshold

Delhi, Chandigarh - Union Territories with different local governance structure

Some states may choose not to establish intermediate tier even if population exceeds threshold

Exam traps

Trap: Statement says intermediate panchayats exist in 'all states' - this ignores the 20 lakh population exemption

Confusion: Students often assume three-tier system is universal - Article 243B(2) provides clear exemption

Memory aid: Remember 20 lakh threshold - smaller states can skip intermediate level

Panchayat Membership - Age Requirements

Indian Polity age of thirty years Member of a Panchayat intermediate level

Panchayat Membership Eligibility: Age & Other Requirements

Must know

Minimum age for any panchayat membership is 21 years under Article 243F

No different age requirement for intermediate vs village vs district panchayats

30 years is minimum age for Rajya Sabha, not panchayats

Good to know

Other eligibility criteria: voter registration, mental soundness, non-disqualification

Constitutional Provision

Article 243F(1) sets uniform eligibility criteria for all panchayat levels. The age requirement is 21 years - same as voting age and Lok Sabha/Assembly membership. There is no higher age bar for intermediate or district panchayats.

Age Requirements Comparison

Office/Institution

Minimum Age

Constitutional Article

Panchayat Member (any level)

21 years

Article 243F(1)

Municipality Member

21 years

Article 243T(1)

Lok Sabha/Assembly

25 years

Articles 84(b), 173(b)

Rajya Sabha/Council

30 years

Articles 84(b), 173(b)

President

35 years

Article 58(a)

Complete Eligibility Criteria

Age: Must have attained 21 years

Citizenship: Must be a citizen of India

Electoral roll: Name must be included in electoral roll for the panchayat area

Disqualifications: Must not be disqualified under any law for the time being in force

Exam traps

Major Trap: Confusing panchayat age requirement (21 years) with Rajya Sabha (30 years)

UPSC Confusion: Same 21-year age applies to village, intermediate, AND district panchayats

Memory Hook: Panchayats = 21 (voting age), Rajya Sabha = 30, President = 35

State Finance Commission for Panchayats

Indian Polity Chief Minister commission to review financial position of Panchayats distribution of net proceeds

State Finance Commission: Constitutional Role & Appointment

Must know

Governor (not Chief Minister) constitutes State Finance Commission under Article 243I

Commission reviews financial position of panchayats and municipalities every 5 years

Makes recommendations on tax devolution and grants-in-aid to local bodies

Good to know

State government must place commission's report before legislature

Constitutional Framework

Article 243I mandates that the Governor of each state shall constitute a Finance Commission within one year of the commencement of the Constitution (Seventy-third Amendment) Act, and thereafter every five years. This is a constitutional requirement, not an executive discretion of the Chief Minister.

State Finance Commission vs Union Finance Commission

Aspect

State Finance Commission

Union Finance Commission

Appointing Authority

Governor

President

Constitutional Provision

Article 243I

Article 280

Frequency

Every 5 years

Every 5 years

Scope

State-Panchayat/Municipality devolution

Union-State devolution

Beneficiaries

Panchayats & Municipalities

State governments

SFC Process Flow

%%{init: {"flowchart": {"wrappingWidth": 460}}}%%
flowchart TD
  s1["`****Governor** constitutes SFC**
Constitutional mandate every 5 years`"]
  s2["`**SFC reviews financial position**
Studies panchayat/municipality finances`"]
  s3["`**Commission makes recommendations**
Tax devolution, grants-in-aid, revenue sources`"]
  s4["`**Report submitted to Governor**
Within specified timeframe`"]
  s5["`**Report placed before legislature**
Along with action taken report`"]
  s1 --> s2
  s2 --> s3
  s3 --> s4
  s4 --> s5

SFC Mandate & Recommendations

Tax Devolution: Distribution of net proceeds of state taxes between state and local bodies

Grants-in-Aid: Determination of grants from state consolidated fund

Revenue Sources: Measures to improve financial position of panchayats/municipalities

Fiscal Discipline: Principles for sound financial management at local level

Exam traps

Critical Trap: Statement attributes SFC constitution to Chief Minister - it's the Governor's constitutional duty

Authority Confusion: Governor (constitutional head) vs Chief Minister (political executive) - Article 243I is clear

Frequency: Remember every 5 years - not ad hoc or annual

Scope Mix-up: SFC deals with state-local devolution, not union-state (that's Union Finance Commission)