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What is Panchayati Raj? What is its significance?

Answer
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Hint: Panchayati Raj is mainly in countries like India, Pakistan, and Nepal. The word ‘Panchayat raj’ is relatively new and has evolved from British administration.

Complete Step by Step Answer: The word ‘Panchayat’ means an assembly of five. ‘Yat’ means assembly and ‘Panch’ means five. In simple terms, an assembly of five wise and respected elders are chosen and are further accepted by the village community.
Gram panchayats are the basic units of administration of the Panchayati system. The village, block, and district are the three-levels of the Panchayati system. It was adopted during the 1950s and 60 by the state government as laws were passed to establish Panchayats in various states and are backed by the Indian Constitution by the 73rd amendment in 1992 to accommodate the idea. The funds received by the Panchayats are through these three sources, that is, from the local body grants, from the centrally-sponsored schemes and from the funds released by the state governments on the advice of the State Finance Commissions.
This system of governance exists in all states except Nagaland, Meghalaya and Meghalaya and also in all union territories except Delhi. The significance of such a system is that:
1. The Panchayati Raj is considered to be the best school for the success of democracy.
2. It creates self-confidence and self-awareness among the people.
3. Local disputes between the individual and the village are easily solved.
4. It gives political education to the people and creates a new consciousness among them.

Note: Students often get confused between Panchayati raj and municipal corporation. You should always keep this in mind that the municipal corporation is an urban local government that deals with the development of a city.