Rural Local Government: Panchayats or Panehayati Raj is a system of governance in which gram panchayats are the basic units of administration. It has three levels: village, block and district. Mahatma Gandhi advocated Panchayati Raj, a decentralised form of Govemment where each village is responsible for its own affairs, as the foundation of India's political system. His term for such a vision was "Gram Swaraj" (Village Self - governance).
Panchayati Raj system was adopted by state governments during the 1950s and bos as laws were passed to establish Panchayats in various states. It also found backing in the Indian Constitution, with the 73 amendment in 1992 to accommodate the idea. The Amendment Act of 1992 contains provision for devolution of powers and resporaibilities to the panchayats to both for preparation of plans for economic development and social justice and for implementation in relation to twenty-nine subjects listed in the eleventh schedule of the Constitution.
The panchayats receive funds from three sources
(1) local body grants, as recommended by the Central Finance Commission,
(2) funds for implementation of centrally-sponsored schemes, and
(3) funds released by the state governments on the reccmmendations of the State Finance Commissions.
In the history of Panchayati Raj in India, on 24h April 1993, the Constitutional (73rd Amendment) Act, 1992 came into force to provide Constitutional status to the Panchayati Raj Institutions. This Act was extended to Panchayats in the tribal areas of eight States, namely Andhra Pradesh, Gujarat, Himachal Pradesh, Maharashtra, Madhya Pradesh, Odisha and Rajasthan from 24 December 1996. Now Panchayati Raj System exists in all the states except Nagaland, Meghalaya and Mizoram.
The Act aims to provide three-tier system of Panchayati Raj for all States having population of over 2 millicn, to hold Panchayat elections regularly every 5 years; to provide reservation of seats for Scheduled Castes, Scheduled Tribes and Women; to appoint State Finance Commission to make recommendations as regards the financial powers of the Panchayats; and to constitute District Planniug Committee to prepare draft development plan for the district. The three-tier system of Panchayati Raj consists of
a) village level panchayat
b) block level panchayat
c) district level panchayat.
Powers and Responsibilities are delegated to Panchayats at the appropriate level:
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