The Constitution originally had a directive principle supporting the establishment and strengthening of local government units like village panchayats. However, since this was a directive principle, it was not legally binding. Therefore, to make local government effective, Parliament passed the 74th Amendment to the Constitution in 1992 to make local government institutions mandatory at the village, town and district level. Under this amendment, village panchayats, municipalities and zila parishads have been given substantial political and financial powers to manage local affairs.