(a) It strengthens the village panchayat as the gram sabha can take decision independently for the welfare of the village people.
(b) It strengthens the village panchayat as it makes more resources available at their disposal. It allows them to spend according to their local needs.
(c) It weakens the village panchayat as it does not have enough funds to maintain and carry out welfare projects in the village. It has to depend on the government officials for funds.
(d) It strengthens the panchayat as it creates new unit of self government and allows more power in the hands of people.
(e) It strengthens the self governance of the village as it shows the ability of the village panchayat to mobilise the village to utilise their own resources without any help from the state government.