A challenge faced by Panchayat Raj Institutions in Karnataka:

Lack of funds
Limited powers
Political interference
All of the above

The correct answer is D) All of the above.

Panchayat Raj Institutions (PRIs) are local self-government institutions in India. They are responsible for a wide range of functions, including rural development, education, health, and sanitation. However, PRIs face a number of challenges, including lack of funds, limited powers, and political interference.

Lack of funds is a major challenge faced by PRIs. The central and state governments provide some funding to PRIs, but this funding is often inadequate. As a result, PRIs have to rely on user fees and other sources of revenue, which can be difficult to collect. This lack of funds can limit the ability of PRIs to provide essential services to their communities.

Limited powers is another challenge faced by PRIs. PRIs have limited powers to make decisions and implement programs. This is because they are subject to the control of the state government. The state government can overrule decisions made by PRIs and can also withhold funding from PRIs. This lack of power can make it difficult for PRIs to be effective in their work.

Political interference is another challenge faced by PRIs. Political parties often interfere in the functioning of PRIs. They can do this by appointing their own people to key positions in PRIs or by using their influence to get PRIs to make decisions that benefit their party. This political interference can undermine the effectiveness of PRIs and can make it difficult for them to serve the interests of their communities.

In conclusion, PRIs face a number of challenges, including lack of funds, limited powers, and political interference. These challenges can make it difficult for PRIs to be effective in their work.