The statement you provided indicates that Panchayats in the country have been given more powers to decide and spend funds granted to them by the government for the welfare of villages. This process is known as the decentralization of power.

So, the correct option related to the statement is:

(2) Decentralisation

Decentralization refers to the transfer of authority, responsibility, and resources from the central government to local governments or authorities. It is aimed at distributing power and decision-making to lower levels of government closer to the people they affect.

In the context of the statement you provided about Panchayats being given more powers to decide and spend funds for the welfare of villages, it clearly suggests that the central government is devolving power to the local level, thereby promoting local decision-making and governance. This transfer of power and decision-making from the central government to Panchayats exemplifies the concept of decentralization.