Panchayati Raj in India is based on the principle of:

Panchayati Raj is based on the principle of democratic decentralisation, which means transferring power, responsibility and resources from the higher levels of government to elected local bodies, so that people can govern themselves at the local level.

Meaning of democratic decentralisation:

• Decisions affecting the daily lives of people are taken closer to them.
• People participate directly in planning and implementing development programmes.
• Local needs and priorities are better understood and met.

Origin of the idea in India:

• Mahatma Gandhi's concept of "Gram Swaraj" (village self-rule) saw self-sufficient villages as the basic units of democracy.
• Article 40, a Directive Principle, directs the State to organise village panchayats and give them powers to function as units of self-government.
• The Balwant Rai Mehta Committee (1957) used the term "democratic decentralisation" and recommended Panchayati Raj.

Constitutional status:

• The 73rd Amendment Act, 1992 added Part IX and the Eleventh Schedule, giving constitutional status to panchayats.
• The Eleventh Schedule lists 29 subjects, such as agriculture, minor irrigation, drinking water, rural roads, primary education and health, that can be devolved to panchayats.

The "three Fs":

• Effective decentralisation requires the devolution of functions, funds and functionaries to local bodies.
• In practice, many states have not fully transferred these, which limits the powers of panchayats.

Gram Sabha:

The Gram Sabha, consisting of all registered voters of a village, is the foundation of Panchayati Raj and a forum for direct democracy.

Benefits of decentralisation:

• Greater participation of women, Scheduled Castes and Scheduled Tribes through reservation.
• Better accountability and transparency at the local level.
• Training of local leaders.

Challenges:

• Lack of financial resources and dependence on state grants.
• Interference by state bureaucracies and politicians.

Why not the other options?

• ✗Centralisation of power is the opposite of Panchayati Raj.
• ✗Separation of powers and judicial review are principles related to other parts of the Constitution.