How does the state governments can exercise control over panchayats?

The provisions with respect to the organisation and functions of Panchayats are formulated by the State government through the acts of state legislatures. A substantial portion of Panchayat’s financial resources comes in the form of grants made by State governments.

Thus, GramPanchayats depend on State Governments for their financial resources. The District Collector is given power for monitoring the Gram Panchayats. In some States, District Panchayati Raj officers have been appointed for monitoring and supervision over Panchayats.

State Legislatures have the legislative power, to confer on the Panchayats such powers and authority as may be necessary to enable them to function as institutions of self- government. They may be entrusted with the responsibility of (a) preparing plans for economic development and social justice, (b) implementation of schemes for economic development and social justice, and (c) in regard to matters listed in the Eleventh Schedule (inserted by the 73rd Amendment).

Besides these Panchayat elections are conducted by State Election Commission in cooperation with the State Government. These are different ways through which the State Government exercises control over panchayats.