In teh villages, all issues related to land and property are looked after by the Gaon Jana Samitis (GJS) (Village People's Organisations). It approves transactions only after the buyer and the seller have come to an agreement. The cost involved is a two percent registration fee and Rs 5 for obtaining a form. People in villages are very pleased with this system. They no longer have to spend large sums of money to bribe officials at the Land Revenue office or bother with government bureaucracy. The GJS has stopped a lot of money from going to the government's coffers-land is an important source of government revenue.

The judiciary of the People's Government is simple and practical. All cases are dealt with locally. Crime has been divided into three categories, the "very serious", the "serious" and the "ordinary". After a case has been filed at the people's court, a verdict is passed only after it has been thoroughly investigated. Those found guilty might be sentenced to death, labour camps or be fined, but they can also appeal the verdict. In all cases dealt with by the People's Courts, the participation of villagers is the overriding principle, and they do participate. The villagers provide practical rather than technical solutions, unlike those handed out by the courts of the reactionary forces (the government).

Major changes are also taking place on the economic front. A new people's economy is being formed, with an emphasis on communes. In a war situation like now, the economy must be made self-sufficient. All production systems are being transformed into collectives or communes, whether for farming, cattle rearing or manufacturing. Financial institutions are also being established in many villages. This process is being hastened because most banks have pulled out from villages. The new financial institutions have been teaching villagers about the working of the proposed economy and how to be involved. They also provide loans to the needy. The prices of commodities are being regulated and guidelines concerning them are being formed.

Plots of land are being pooled and these are being cultivated to provide employment to families of martyrs, and to feed the people's army and volunteers. Cottage industries are also being promoted. Weaving is a major component of such industries and training is being provided to those who need it. In winter the weaving and textile set-ups provide the woollen garments needed by the people's army and villagers. Collectives for cattle farming are also being encouraged, particularly in the higher Himalaya. This is being extended to the tarai and hill regions too. Community forests are another important issue the people's government is looking into. Forests that were cut down in the last 10 to 15 years are now full of trees. Massive reforestation is being carried out. Community forests are being developed in all villages, and committees are being formed to deal with the issue appropriately. The forests are an important source of revenue of the people's government.

Alcohol has been banned. Decadent lifestyles are not allowed, although people can enjoy themselves within limits. All music and songs under a people's government are based on the philosophy of the party, and about the working class and a progressive society. The people's government is taking strong corrective measures against the present educational system. Education is free of cost until standard ten. Sanskrit is no longer taught and the singing of the national anthem has been stopped. Teachers are being asked to be more careful and regular, and school management is being strengthened. There is Education for the elderly in all villages, to enable them to at least read simple letters and notices.

All health centres are being put in order and irregularities in the distribution of medication are being rectified. Action is being taken against corrupt officials. Awareness programs are being conducted and health officials are always on the move to check on health centres. Roads, bridges, waiting rooms, martyrs' memorials, drinking water systems and other infrastructure is being built. Villagers are no longer dependent on others, but are carrying out development work themselves. The people's government formulates programmes and the villagers implement the plans.