Limited financial resources can be a challenge for the effective functioning of Panchayats in Sikkim, especially in:

Remote areas
Hilly regions
Border districts
Areas with low population density

The correct answer is: a) Remote areas.

Panchayats are local self-government institutions in India. They are responsible for a wide range of functions, including development planning, implementation of government schemes, and maintenance of local infrastructure. However, limited financial resources can be a challenge for the effective functioning of Panchayats, especially in remote areas.

Remote areas are often characterized by difficult terrain, poor infrastructure, and low population density. This makes it difficult for Panchayats to collect taxes and generate revenue. In addition, remote areas are often neglected by the government, which means that Panchayats may not receive the support they need to function effectively.

As a result of these challenges, Panchayats in remote areas may not be able to provide basic services to their people. They may also have difficulty implementing development projects. This can have a negative impact on the lives of people living in remote areas.

There are a number of things that can be done to address the challenges faced by Panchayats in remote areas. One is to increase the financial resources available to Panchayats. This could be done by increasing the share of taxes that Panchayats are allowed to collect, or by providing them with grants from the government.

Another is to improve the infrastructure in remote areas. This would make it easier for Panchayats to collect taxes and generate revenue. It would also make it easier for the government to provide support to Panchayats.

Finally, it is important to raise awareness of the challenges faced by Panchayats in remote areas. This would help to ensure that they receive the attention and support they need to function effectively.