PolityGS2-Governance
Panchayats' Revenue Sources Analyzed
Panchayats earn only 1% of their revenue through taxes, with the majority coming from grants from the Centre and States.
February 5, 2024
Key Points
- 1Only 1% of panchayats' revenue comes from their own tax revenue.
- 280% of revenue comes from Central government grants and 15% from State government grants.
- 3Panchayats are responsible for tasks including agriculture, rural housing, and healthcare.
- 4In August last year, panchayat heads protested in Chennai, seeking independence of Panchayati Raj.
- 5Panchayats recorded a total revenue of ₹35,354 crore in 2022-23.
- 6Each panchayat earned about ₹17 lakh as grants from the Central government in 2022-23.
Important Terms
PanchayatsRevenueGrantsTax RevenueDecentralisation
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Last Updated: 7/16/2025