Ensures the direct participation of people at the grass root level.

In 1956, the National Development Council appointed a committee under Balwant Rai Mehta, which submitted its report in 1957 in which it recommended :

A 3 – tier structure consisting of Zila Parishad at the District Level, Panchayat Samiti at the Block Level and Gram Panchayat at the Village Level.
Genuine transfer of power & responsibility to these institutions.
Adequate resources to them.
All social & economic development programmes channelized through these.
The 3 – tier system of Panchayat Raj was 1st adopted by Rajasthan (Nagaur District) on Oct 2, 1959.
´ to devise an appropriate mechanism to provide
significant non-budgetary resources in the form
of loans with adequate maturities to PRIs,
specifically to be used for such developmental
projects as are planned and executed by PRIs
themselves.
´ to put in place an appropriate structure of
incentives to recognise and encourage the
Panchayats for outstanding performance,
especially in respect of improvements effected
in accepted Social Development Indicators.
´ to discuss the need for an appropriate new
Amendment to the Constitution to bring about
speedy and effective devolution of financial and
administrative powers to PRIs and to quickly
initiate the process of bringing in the much
needed new Constitution Amendment. The
Sammelan also urges all the Political Parties and
The provisions of the Panchayats
(Extension to the Scheduled Areas)
Act, 1996
This Act which came into force on 24th
December, 1996, extends Panchayats to the
Schedule-V areas of States such as Andhra Pradesh,
Chhattisgarh, Jharkhand, Gujarat, Himachal
Pradesh, Maharashtra, Madhya Pradesh, Orissa and
Rajasthan. It intends to enable tribal society to
assume control over their own destiny to preserve
and conserve their traditional rights over natural
resources. The State Governments were required to
enact their legislation in accordance with the
Provisions of Act before the expiry of one year i.e.
23rd December, 1997. All the States barring have
enacted State Legislation to give effect to the
provisions contained in The Provisions of the
Panchayats (Extension to the Scheduled Areas) Act,
1996.