Solution:
Challenges faced by the local government are all of the above mentioned option.In 1992 the 73rd and 74th constitutional amendments gave local bodies constitutional status; it was a major step towards decentralization. The states created local bodies but there were still many challenges to local bodies such as panchayats in rural areas and municipal corporations in urban areas. Many states did not transfer subjects and powers to the local bodies, local institutions face resource crunch, gram sabhas are not held regularly, etc. Local governments are important institutions in a democracy. They help reach governance to the grassroots level, empower people to participate in decision-making and policy formulation, and help realize the principle of local self government. These issues need to be resolved to make the local bodies effective and to strengthen democracy at the bottom.
