According to the Constitution, Panchayats should be given powers and authority to function as institutions of self-government. The following powers and responsibility were delegated to the Panchayats:
(i)  To prepare plans and schemes for economic development.
(ii) To promote schemes that will enhance social justice.
(iii) To levy, collect and appropriate taxes, duties, tolls and fees.
(iv) To help in the devolution of governmental responsibilities, especially that of finances to local authorities.
(v) Social welfare responsibilities of the Panchayats include the maintenance of burning and burial grounds, recording statistics of births and deaths, establishment of child welfare and maternitycentres, control of cattle pounds, propagation of family planning and promotion of agricultural activities.