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Synopsis The process of strengthening of local governments is welcome step accepted by all sections of the society. The government has implemented the 73rd and 74th Constitutional Amendment Act (CAA) for strengthening the grassroots level of governments in rural as well as urban areas. But the functioning of the PRIs in India during the last one and a half decade shows that the state governments have not made serious or sincere attempts to endow the Panchayats with adequate functional responsibilities, powers and access to productive resources. Moreover, resource inadequacy coupled with lack of appropriate functional responsibilities and powers hade made these bodies extremely weak. With their meagre revenue base and unimpressive revenue administration, the PRIs are constrained to lead a miserable existence. Against this backdrop, this anthology, critical analysis of various aspects of the subject and makes valuable suggestions for revamping the finances of the PRIs in India.