Read the source given below and answer the question that follows:

When power is taken away from Central and State governments and given to local governments, it is called decentralisation. There are a large number of problems and issues which are best settled at the local level. People have better knowledge of problems in their localities. They also have better ideas on where to spend money and how to manage things more efficiently. Besides, at the local level, it is possible for people to participate directly in decision-making. This helps to inculcate a habit of democratic participation. Local government is the best way to realise one important principle of democracy, namely local self-government. The need for decentralisation was recognised in the Indian Constitution. Since then, there have been several attempts to decentralise power to the level of villages and towns. Panchayats in villages and municipalities in urban areas were set up in all the States. But these were directly under the control of the state government. Elections to these local governments were not held regularly. Local governments did not have any powers or resources of their own. Thus, there was very little decentralisation in effective terms.

Consider the following statements on the practice of federalism in India. Identify those which hold true for decentralisation after 1992.