When power is taken away from the central and state government it is known as decentralization this process was practiced in India in 1992 to make the third tier of government that is Panchayat and Municipal corporations
When power is taken away from central nd state government and given to the local government is called decentralization.• The constitution was amended in 1992, to make third tire of the government more powerful and effective. In this way, rural local self government raj came into existence.• The new gram panchayats are grouped together to form a panchayat samiti or block or mandal. They together in a municipal corporation is called the Mayor.The report of the states recognisation or November 1, 1956.
When power is taken away from Central and State governments and given to local government, it is called decentralisation.\tDecentralisation helps in solving a large number of problems and issues at the local level.\tPeople have better knowledge of problems in their localities and hence they are the best resources to solve problems.\tThey also have better ideas on where to spend money and how to manage things more efficiently\tBesides, at the local level it is possible for the people to directly participate in decision making.\xa0This helps to inculcate a habit of democratic participation\tLocal government is the best way to realise one important principle of democracy, namely local self-government.