Question

In India, Panchayats have been given power to decide and spend funds granted to them by Govt. for the welfare of villages. Identify the principle applicable in this situation.

Options

• Discipline

• Centralisation

• Remuneration of employees

• Unity of direction

Answer 1

Centralisation

Explanation:

In this case, Panchayats have been given the power to make decisions and spend funds for the development of their villages.

This is an example of Decentralisation, which is the opposite of Centralisation.

• Centralisation means decision-making power is held at the top level.
• Decentralisation means decision-making power is shared with lower levels like Panchayats.