(i) The basic idea behind decentralisation is that there are a large no. of problems and issues which are best settled at the local level.
(ii) People have better knowledge of the problems in their own localities.
(iii) Regular elections are held for the local government bodies at the level of village, block, district, towns and cities.
(iv) Seats are reserved for Scheduled castes, scheduled tribes and other backward classes to ensure their participation. One third of the seats are reserved for women.
(v) These local bodies generate their own revenue. Besides, the state governments are required to share some powers and revenues with local government bodies.