Panchayati Raj now functions as a system of governance in which gram panchayats are the basic unit of local administration. The system has three levels: gram panchayat (village level), mandal parishad or block samiti or panchayat samiti (block level) and zila parishad (district level).It was formalized in 1992 by the 73rd amendment to the Indian Constitution.
The panchayats receive funds from three sources:
- Local body grants, as recommended by the Central Finance Commission
- Funds for implementation of centrally sponsored schemes
- Funds released by the state governments on the recommendations of the State Finance Commissions
Panchayati Raj consists of:
- Village-level Panchayats
- Block-level Panchayats
- District-level Panchayats.
On August 27, 2009, The Union Cabinet of the Government of India approved 50% reservation for women in PRIs (Panchayati Raj Institutions).
