When power is taken away from Central and State governments and given to local government, it is called decentralisation.
Before 1992, the local bodies were directly under the state governments.
→ Regular elections were not held.
→ The local bodies did not have any resources or powers of their own.
Decentralization in India was primarily institutionalized through the 73rd and 74th Constitutional Amendments of 1992, which came into force in 1993
After 1992, the Constitution was amended to make the third-tier of democracy more powerful and effective. The steps taken are :
→ Mandatory to hold regular elections to local government bodies.
→ Seats are reserved for the Scheduled Castes, Scheduled Tribes and Other Backward Classes.
At least one-third of all positions are reserved for women.
An independent institution called the State Election Commission has been created in each State.
The State governments are required to share some powers and revenue with local government bodies.