In our country, since Vedic era, Panchayati Raj system was in practice as a most effective governing process at grass root level.

The State government has made a budget provision of Rs. 414 crore for current financial year. In order to ensure smooth and effective execution of its day to day functioning besides bringing more transparency and responsiveness, all Panchayats in the Pradesh had been computerised, which is proving helpful in maintenance of accounts and records.

Modern software applications under Mission Mode Project of GoI, have been introduced in Panchayati Raj System.

To provide internet connectivity in all panchayats of tribal district Kinnaur each panchayat had been provided Rs. 31.40 lakh for V-Set during the year 2014-15.

A sum of Rs. 391.39 crore has been received for strengthening the PRIs under 13th finance commission during last two and half years which includes Rs. 86.14 crore during 2012-13, Rs. 153.47 during 2013-14 and Rs. 151.78 during 2014-15. The state government would release Rs. 109 crore from state budget during 2015-16. Besides, Rs. 195 crore would also be sanctioned for the panchayats as per the recommendations of 14th finance commission.

State Finance Commission had sanctioned Rs. 215.48 crore for the panchayats since December, 2012 which were spent on honourarium to representatives, officials of PRIs and their travelling & daily allowance besides maintenance & construction of panchayat ghars.

Rs. 3.75 crore were released for the construction of 50 new panchyat ghars during last fiscal whereas Rs. 1.25 crore were sanctioned during 2013-14 for State Panchayat Resource Centre to be set up at Mashobra. Rs 4.50 crore had been spent on training to the PRIs during last two and half years.

Rs. 69.95 crore had been received from Ministry of Panchayati Raj, GoI, under Backward Area Grant during the above period and 5588 works were sanctioned.

State government had taken a new initiative of organizing Mahila Gram Sabhas twice in a year to ensure active participation by women in Gram Panchayats besides listening to the issues related to the women and children.