Panchayati Raj is a system of local self-government in India that gives power to the gram panchayats, or village councils. This system exists in all states except Nagaland, Meghalaya, and Mizoram, and in all Union Territories except Delhi. The panchayats receive funds from three sources: local body grants, as recommended by the Central Finance Commission; funds for the implementation of centrally sponsored schemes; and their own revenues.
The Panchayati Raj system was first introduced in India in 1992. It was seen as a way to empower the rural population and give them a greater role in local governance. The system has been successful in many ways, but there are still some challenges. One of the biggest challenges is the lack of financial resources. Many panchayats are not able to raise enough funds to meet their basic needs.
Despite the challenges, the Panchayati Raj system is an important part of India’s democracy. It gives rural communities a voice in their own governance and helps to ensure that important decisions are made at the local level.
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