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Correct (D): In practice 80-95% of panchayat funds come as central/state scheme funds and Finance Commission grants; own-source revenue is tiny (~5-6% nationally) — the core of the 'fiscal dependency' critique. Why others wrong: (A) own taxes exist but yield little; (C) donations are marginal; (B) panchayats cannot borrow from the RBI.
FAQ
Common questions and clear answers for this topic.
Panchayati Raj is a rural local self-government system that enables democratic decentralization and local administration at village, block, and district levels.
The Balwant Rai Mehta Committee recommended the Panchayati Raj System in 1957.
The 73rd Constitutional Amendment Act, 1992 gave constitutional status to Panchayats.
The three levels are: Gram Panchayat (Village Level) Panchayat Samiti (Block Level) Zila Parishad (District Level)
Gram Sabha is the basic unit of Panchayati Raj where village voters participate in local governance, planning, and decision-making.
