Panchayati Raj Institutions (PRIs) are the responsible organ of  local self-governance and agents of development at the grassroots. As per 73rd Constitution Amendment Act,  PRIs are responsible for plan and implement the schemes for economic development and social justice in their respective constituency. Gram Panchayats need to develop a five-year “Shelf of Projects” which involves identification of problems, prioritisation of problems and preparation of projects for solve the problems and strive for overall development. With a view to enable Panchayats to discharge their mandates as enshrined in the state Panchayat Acts, the Central Government has already instructed the states to make efforts to devolve 29 subjects to the PRIs. Based on the Constitution mandates, the Ministry of Panchayat Raj, Govt. of India has created an enormous opportunities for responsive local governance through the XIVth Finance Commission for the Gram Panchayats. It earmarked Rs. 200,292.2crores to  panchayats and encouraged the states  to do needful for empowerment of gram panchayats to make them to deliver basic services responsibly and efficiently. The fifteen Finance Commission also earmarked huge funds from the current financial year onwards and with significant contribution of allocating funds to the block panchayat and district panchayat with the ratio of 15% and 10% respectively from the funds allocated to the Gram Panchayats. This study made an attempt to understand the real picture on process of preparation Gram Panchayat Development Plan, status of people participation in the planning process and quality of plan. The study was conducted in five states namely Kerala, Maharashtra, Bihar, Sikkim and Punjab. The data based inferences are presented in this paper for wider understanding and better strengthening of the planning at the grassroot.