Rural local government is popularly known as the Panchayati Raj System in India. It was introduced by a constitutional amendment in 1992, although it is based upon the traditional panchayat system of South Asia. It was established to practice a more decentralised form of governance.

The structure of Panchayati Raj varies from state to state. Some states have three-tier structure (Gram Panchayat at the village level, Panchayat Samiti at block level and Zilla Parishad at district level), whereas some have two-tier structure (Gram Panchayat at village level and Panchayat Samiti at block level). A few states have only single-tier structure at the village level. Two main achievements of the Panchayati Raj System are as follows –

a) Panchayats can best carry out the development programmes, such as mending roads, terrace, and embank the fields, building bunds, digging drains, provide fresh drinking water, etc. They are best constituted to organize voluntary labour for social upliftment and economic amelioration. Since they are directly involving the local people, resource distribution for the various development works is more appropriate and involves less risk.

b) Panchayati Raj system ensures effective coordination between Government programmes and those of voluntary agencies. It acts as a potential school for political training of the masses and can also serve as schools of social service, health care, popular education and social progress.

Despite the various benefits of the Panchayati Raj System, it still suffers from various problems two of which have been stated below.

a) The local Government bodies like village panchayats, municipalities and municipal corporations are under the direct control of state Governments. The official hierarchy failed to inspire confidence among the village people. Bureaucrats were unwilling to transfer power to elected representatives. They did not release funds in time. The Panchayati Raj system often is not functioning owing to the lack of political will, lack of proper evaluation and feedback, and indifference to corrective measures.

b) The competitive elections have politicized the environment of all villages. It is alleged that panchayat elections have given birth to caste politics (casteism), communal politics (communalism) and groupism and factionalism in the villages. It is also alleged that due to panchayat elections, a ‘cold war’ atmosphere prevails among various sections of the village people.

It is hoped that the Panchayati Raj System will be able to harness and develop the better characteristics of the average villagers in spite of their illiteracy and restricted range of experience. It is also expected that this system will bring new aspiration and fresh stimulus to national self-respect.