In terms of Article 243-N of the Constitution of India, every State was required to amend the laws relating to PRIs within one year of the 73rd Constitutional Amendment. Therefore, to comply with the said mandatory provision of the Constitution and as the assembly was not in session, the State of Goa promulgating an Ordinance namely, The Goa Panchayat Raj Ordinance, 1994 on 20.04.1994. The Ordinance namely, The Goa Panchayat Raj Ordinance, 1994 on 20.04.1994. The Ordinance was converted into Bill, namely the Goa Panchayat Raj Bill, 1994 and the same was introduced in the Goa Legislative Assembly on 25.05.1994.

The Goa Panchayat Raj Act, 1994 was assented to by the Governor of Goa on 09.07.1994. The Act repealed the Ordinance of 1994 as well as the Regulation of 1962. Some of the provisions of the Act were brought into force w.e.f. 20.08.1994. However, Section 245 was given retrospective effect i.e. from 20.04.1994. The remaining provisions of the Act were brought into force w.e.f. 26.10.1995. Thus, the entire Act came into force from 26.10.1995.

“An Enactment to establish a two-tier Panchayati Raj System in the State with elected bodies at Village and Districe levels , in keeping with the Constitutional Amendment relating to Panchayats for greater participation of the people and more effective implementation of rural development programmes”.