Following are the defects regarding the concerned headlines in the working of local self-government institutions:
(a) Role of Money in Elections: In the heat of the election- campaign, the rich farmers and traders squander a lot of money, usually in a wasteful way. This tendency gives a severe set-back blow to the electoral prospects of the capable candidates who are not in a position to spend much on elections.
(b) Paucity of Funds: The most serious confronting the rural and the urban bodies is the shortage of funds. These institutions have been entrusted with the responsibility of preparing plans for economic and social development, rural electrification, poverty alleviation slum improvement, and urban forestry. To undertake such onerous tasks, the local bodies are yet to (start functioning with independence and sufficient resources. Panchayats and urban bodies can become responsive to the local needs through effective participation of the people and sufficient funds at their command.
