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The basic idea of decentralization is ___
A. to divide powers between Central and state
B. to give powers to local self-government
C. to shared powers between two state governments
D. to share powers between different organs of the government.

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Answer
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Hint:
The word ‘decentralization’ can be divided into parts ‘de- centralization’, which denotes the idea of division of power.
The word is often confused with the political term ‘federalism’, which is more of a political term. Decentralization has political, fiscal and administrative aspects.

Complete answer:
Decentralization, in the most general context, refers to the transition of power from a central government to a sub-national body. But beyond that general description, the decentralization process is a dynamic undertaking, assuming various definitions in different ways and in compliance with the wishes and plans of those responsible for planning and executing it. There are several ways in which a state can transfer authority to the sub-national level.

Option a. to divide powers between central and state government, the government is divided at different levels for smooth and easy functioning (federalism) Example: state and central government of India. . It is the incorrect answer.

Option b. to give powers to local self- government, the state government is further divided at lower levels for better representation

Option c. to share powers between two state governments, this comes under the concept of federalism. . Therefore, it is the incorrect answer.

Options d. to share powers between different organs of the government, this is horizontal division of powers whereas; decentralization refers to the vertical division of power. Therefore, it is the incorrect answer

Therefore the correct answer is Option B.

Note:
In India, the Panchayati Raj now acts as a governance structure in which the basic units of local government are gram panchayats.
There are three tiers in the system:
Gram Panchayat (level of village),
Mandal Parishad or Block Samiti of Panchayat Samiti (level of block), and
Zila Parishad (district level).
Currently, states like Nagaland, Meghalaya, and Mizoram, and in all Union Territories except Delhi, the Panchayati Raj system does not exist.