Subject to the provisions of the constitution, the legislature of state may, by law endow the Panchayats with such powers and authority as may be necessary to enable them to function as institution of self government and such law may contain provisions for the devolution of powers and responsibilities upon Panchayats at the appropriate level, subject to such conditions as may be specified therein, with respect to:

1. the preparation of plans for economic development and social justice; and
2. The implementation of schemes for economic development and social justice as may be entrusted to them including those in relation to the matters listed in the Eleventh (XI) Schedule.

Eleventh schedule article 243 G

1. agriculture, including agricultural extension
2. land improvement, implementation of land reforms, land consolidation and soil conservation
3. minor irrigation, water management and watershed development
4. animal husbandry, dairying and poultry
5. fisheries
6. social forestry and farm forestry
7. minor forest produce
8. small scale industries, including food processing industries
9. khadi, village and cottage industries
10. rural housing
11. drinking water
12. fuel and fodder
13. roads, culverts bridges, ferries waterways and other means of communication
14. rural electrification including distribution of electricity
15. non-conventional energy sources
16. poverty alleviation programme
17. education, including primary and secondary schools
18. technical training and vocational education
19. adult and non- formal education
20. libraries
21. cultural activities
22. markets and fairs
23. health and sanitation, including hospitals, primary health centres (PHC) and dispensaries
24. family welfare
25. women and child development
26. social welfare, including welfare of the handicapped and mentally retarded
27. welfare of the weaker sections, and in particular, of the Scheduled Castes and Scheduled Tribes
28. Public Distribution System (PDS)
29. Maintenance of community assets.

The inherent potential of democratization in the decentralized federal system is the proper empowerment of people at the grassroots level. The 73rd amendment is a legal recognition to the three-tier system of governance with Panchayat Raj Institutions (PRIs) at the district, intermediary, and village levels and a three tier structure of the Panchayats, except in those states whose population is less than 20 lakhs. For them a two-tier system is prescribed. Most of the states modified their acts and went for Panchayat elections following the Seventy Third Amendment. The Eleventh Schedule does not clearly describe the powers and function of different tiers of a Panchayat. In accordance to the amendment all states have amended their respective Panchayati Raj Acts and enlisted the functions assigned to different levels of the respective PRIs.

Some of the states have identified specific functions for their different tiers at village, block and district level as below:

STATE WISE RESPONSIBILITIES OF PANCHAYAT