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. It consists of three levels – Gram Panchayats at the village level, Panchayat Samiti at the Block level, and the Zila Parishad at the district level. This system exists in all states and union territories except for Nagaland, Meghalaya, Mizoram and Delhi. The funding for the panchayats is received from the Central and State Finance Commissions as well as centrally sponsored schemes. The system provides for the essential services and facilities to the rural population.
