Revisiting State PRI Acts: A Necessity for Making PRIs More Effective

  • The 73rd Constitutional Amendment Act (1992) envisioned Panchayati Raj Institutions (PRIs) as local self-governing bodies with financial autonomy.
  • Despite being empowered to levy taxes and user charges, GPs show poor fiscal performance.
  • As per the Ministry of Panchayati Raj (MoPR) 2024 Report, the average share of Own Source Revenue (OSR) in total GP receipts across 30 states/UTs was just 6% in 2021-22.
  • RBI data shows this trend continuing, with OSR at just 6.31% in 2022-23.
  • Nearly 95% of GP revenues come from grants, primarily from the Central Government.
  • Per capita OSR was a mere INR 59 on average between 2017-18 and 2021-22.
  • District and block-level Panchayats ....
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