Panchayati Raj system is a constitutional establishment.

The Panchayati Raj system is a system of local self-government in India. It is a constitutional establishment that aims to decentralize power and ensure grassroots democracy. The term "Panchayati Raj" literally translates to "rule by the village council."

Establishment and Purpose:
The Panchayati Raj system was established through the 73rd Amendment Act of 1992, which added a new Part IX to the Indian Constitution. This amendment aimed to provide constitutional status to the Panchayati Raj institutions and ensure their effective functioning. It has three-tiered structures at the village, intermediate (block), and district levels.

Key Features:
1. Decentralized Governance: The Panchayati Raj system aims to decentralize power and decision-making, bringing governance closer to the people at the grassroots level. This helps in addressing local issues effectively.

2. Democratic Representation: It provides for the direct election of representatives at each level, ensuring democratic representation. The representatives are elected by the people in their respective constituencies.

3. Powers and Functions: Panchayats have been entrusted with various powers and functions, including the preparation and implementation of plans for economic development and social justice, the implementation of government schemes, and the collection of taxes and fees.

4. Financial Autonomy: The Panchayati Raj institutions have been given financial autonomy, with provisions for devolution of funds from the state government. This enables them to plan and implement local development projects and schemes.

5. Reservation of Seats: The system also ensures reservation of seats for Scheduled Castes, Scheduled Tribes, and women in Panchayati Raj institutions. This promotes inclusivity and ensures the representation of marginalized sections of society.

6. State Election Commission: Each state has a State Election Commission responsible for conducting elections to the Panchayati Raj institutions in a free and fair manner.

7. Empowerment of Women: The Panchayati Raj system has played a crucial role in empowering women by providing them with reservation in local governance bodies. This has led to increased participation of women in decision-making processes.

Importance:
The Panchayati Raj system is important as it helps in promoting participatory democracy, ensuring effective governance, and addressing local issues. It empowers local communities and encourages their active involvement in decision-making. It also serves as a platform for social and economic development at the grassroots level.

In conclusion, the Panchayati Raj system is a constitutional establishment that aims to decentralize power and ensure grassroots democracy. It provides for democratic representation, financial autonomy, and empowerment of marginalized sections of society. It plays a crucial role in promoting participatory democracy and local development.