The word Panchayat is made up of two words – “Panch", meaning five, and “Ayat", meaning assembly. So, Panchayati Raj traditionally refers to a form of local governance in India by five, or more, elders of an area to usually settle disputes between individuals or villages. The leader of the group is called a Mukhiya, Sarpanch or a Pradhan.
In 1992, a legislation passed by the Parliament gave the constitutional backing to the system. With the Panchayati Raj Act (73rd Amendment) coming into force on April 24, 1993, states were allowed to take steps to organize village panchayats and give them necessary powers to function as units of self-government.
The first National Panchayati Raj Day was celebrated in 2010 on this day and since then, it is an annual affair. On this day, gram panchayats are awarded by the Union government on the basis of their performance on several parameters in the preceding year.
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