| Financial management is the oxygen of all self–government, at every level. The constitution (73rd Amendment) Act 1993 has aroused great expectations with Panchayats becoming a constitutional entity. In this euphoria, a certain amount of skeptician skill lingers on regarding their powers and functions and the meager resources that they had been bestowed with, in the past. It is true that ‘Panchayat Finance’ was among the major reasons attributed to the failure of the PRI system during the 60s and 70s. Dependence of Panchayats on states for almost everything, coupled with inadequacy of powers and functions rendered the Panchayats ineffective. |