Skip to main content

How Panchayati Raj System manages its Finances

How Panchayati Raj System in India manages its Finances.




Only giving constitutional status is not enough for Panchayati Raj System but need to ensure finance for its autonomous and democratic operation.


Every administration has its cost , so the Panchayati Raj System also need smooth inflow of fund for its independent and democratic way of functioning. Here we will discuss the sources of revenue for Panchayati Raj Institutions.The autonomy and efficiency of these Panchayati Raj Institutions depends upon their financial position.

1) Grants from the Union Government on recommendations of the Central Finance Commission( art 280).

2) As per art 243-I of the Indian Constitution the devolution from the State Government on recommendations of the State Finance Commission.

3) Programme/Scheme specific allocation under centrally sponsored schemes.

4) Loans and grants from the State Government.

5) From its own resources - tax and non- tax. In tax it includes house tax, professional tax, fair and festival tax ect. And in non tax it includes tolls on vehicles, octroi, fees and rent from non- agri land and shop owned by Panchyat. 

6) Voluntary Donation -  Panchyat also collect voluntary donation from villagers for construction and repair of temple and ponds.

All the above mentioned points are the ways to generate revenue for PRIs for their autonomous and democratic functioning.

Comments

Popular posts from this blog

Alternatives to China's Belt and Road Initiative

Alternatives to china's belt and road initiative China's BRI is not sustainable project as it doesn't uphold the principles of international standards such as sovereignty, transperancy and multilateralism. So the like minded countries have come up with the following alternatives: The Indo-Pacific Strategy : Initiated by United States, the Indo-Pacific Strategy aims to enhance infrastructure development, connectivity, and economic cooperation among countries in the Indo-Pacific region. It emphasizes principles such as transparency, rule of law, and respect for sovereignty. Japan's Partnership for Quality Infrastructure (PQI) : Japan's PQI aimed at promoting high-quality infrastructure projects that comply with  principles such as transparency, economic efficiency, and debt sustainability. Build Back Better World (B3W)  : This initiative is undertaken by the G7 countries. It was launched in 2021, it would provide an alternative to China's Belt and Road Initiative ...

India's Historic and Cultural Ties Vs China's Economic Power.

  India's Historic and Cultural Ties Vs China's Economic Power. How China's economic power is winning over India's historic and cultural relations in its neighbourhood. In today's Geopolitical world relations are changing as fast as technology. Very recently we have observed that china is advancing in India's neighbourhood very rapidly, especially in Indian Ocean. Here we are going to analyse how and why China advancing in India's neighbourhood. There are two important aspects of this. One is India's historic and cultural ties with the neighbours and second is China's economic advantage over India.  India always talk about its strong historic and cultural relations with the neighbours. But, is this enough or is it always a positive point? In today's world where economy rules the world, historic and cultural ties has less significance. See, India's relations with Nepal are said like 'Roti- Beti relations'. If this is so then,why Nepal ...

The Real Geopolitics Behind China's Belt And Road Initiative

What is the Real Geopolitics Behind China's belt and road initiative ? China's Belt and Road Initiative (BRI) remains an important point in recent geopolitics. The initiative was launched in 2013. It's announced aims are to enhance connectivity and infrastructure development across Asia, Africa, and Europe, through trade routes, infrastructure projects, and economic partnerships. But here we will analyse the real nature of the initiative. Let's first understand what is the meaning of Belt and Road in BRI: Belt is short for the "Silk Road Economic Belt", referring to the proposed overland routes for road and rail transportation through landlocked Central Asia along the historical trade routes. whereas "road" is short for the "21st Century Maritime Silk Road", referring to the maritime trade route as Indo-Pacific sea routes through Southeast Asia to Indian Ocean to reach middle East and Africa. Now, let's understand the hidden motive of C...