Uttar Pradesh
Revenue Receipts of Panchayats Highest in UP
- 09 Feb 2024
- 2 min read
Why in News?
The recently released report titled 'Finances of Panchayati Raj Institutions' by the Reserve Bank of India (RBI) for the fiscal year 2022-23 sheds light on the financial dynamics of Panchayati Raj Institutions (PRIs) in India.
Key Points
- State Revenue Share and Inter-State Disparities:
- Panchayats' share in their respective State's own revenue remains minimal.
- For example, in Andhra Pradesh, revenue receipts of panchayats form just 0.1% of the State’s own revenue, while in Uttar Pradesh, it forms 2.5%, the highest among states.
- There are wide variations among states regarding average revenue earned per panchayat.
- Kerala and West Bengal lead with average revenues of over Rs 60 lakh and Rs 57 lakh per panchayat, respectively.
- The revenue was over Rs 30 lakh per panchayat in Assam, Bihar, Karnataka, Odisha, Sikkim, and Tamil Nadu.
- States like Andhra Pradesh, Haryana, Mizoram, Punjab, and Uttarakhand have significantly lower average revenues, less than Rs 6 lakh per panchayat.
- Panchayats' share in their respective State's own revenue remains minimal.
- Recommendations of RBI:
- The RBI suggests promoting greater decentralization and empowering local leaders and officials. It advocates for measures to enhance financial autonomy and sustainability of Panchayati Raj.
Panchayati Raj Institution
- The 73rd Constitutional Amendment Act, 1992 gave constitutional status to the Panchayati Raj Institutions (PRIs) and established a system of uniform structure (three tiers of PRIs), elections, reservation of seats for Scheduled Caste, Scheduled Tribes and women and devolution of fund, functions and functionaries to PRIs.
- Panchayats act on three levels: gram sabhas (village or group of small villages), panchayat samithis (block council), and zila parishads (district).
- The Ministry of Panchayati Raj looks into all matters relating to the Panchayati Raj and Panchayati Raj Institutions. It was created in May 2004.
- Number of Panchayats in UP: 59, 062
- Number of Blocks in UP: 826
- Number of Districts in UP: 75
