According to a RBI report on ‘Finances of Panchayati Raj Institutions’, Panchayats need to intensify their efforts to augment their own tax and non-tax revenue resources and improve their governance for sustainable growth.

Banking & Finance

According to a RBI report on ‘Finances of Panchayati Raj Institutions’, Panchayats need to intensify their efforts to augment their own tax and non-tax revenue resources and improve their governance for sustainable growth. The report noted that with 68.8 percent of India’s population residing in rural areas (as per the 2011 Census), local governments at the panchayat level assume a significant role in translating the vision and developmental policies of both the Central and State governments into action. The report underscored that the prompt establishment of State Finance Commissions (SFCs), eschewing the sizeable delays that occur currently, assumes importance.


      In 1992, the 73rd Amendment to the Indian Constitution institutionalised the PRIs at three levels in rural India: Gram Panchayats at the village level, Mandal Panchayats at the intermediate/block level, and Zila Parishad at the district level.

      There are a total of 2.62 lakh PRIs in India, with 2.55 lakh Gram Panchayats, 6,707 Mandal Panchayats, and 665 Zila Parishads as of October 2023.

     

 

     


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