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Option 2 : 73rd Amendment Act 

  • 73rd Amendment Act 1992 mandates that the state government will appoint a finance commission every five years to review the finances of the Panchayats working in the country. A new Part IX was added in the constitution by this Amendment with the title 'The Panchayats', covering article from Article 243 to Article 243(O).
  • A new 11th schedule was also added which covered 29 subjects.
  • The 74th Amendment Act 1992 provided constitutional sanctity to the municipalities in the country. 
  • The 77th Amendment Act 1995 inserted a provision in Article 16 to reserve seats in public employment for SC/STs. 
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