It may be observed that the efforts for rejuvenating Panchayats were inadequate until recently. With the 73rd and 74th Constitutional Amendments, the democratic base of decentralized governance has widened and the scope for functional and f inancial devolution to Panchayats has been ensured through mandatory provisions. The re-emergence of the Panchayati Raj system is an organized response to the changed development paradigms and there is a strong case for people’s participation through Panchayati Raj in developmental activities. The Panchayats have been empowered to raise their resources in order to enable them to discharge the function assigned to them.