Panchayats in India earn only 1% of their revenue through taxes | Data
Panchayat leaders protesting excessive interference from State and Central governments in Chennai
| Photo Credit: B. Jothi Ramalingam
Only 1% of the revenue of panchayats was earned by them, with the rest being raised as grants from the State and the Centre, show data. Specifically, 80% of the revenue was from Central government grants; only 15% was from State government grants. Consequently, the revenue raised by panchayats formed a minuscule share of the States’ own revenue.Panchayats act on three levels — gram sabhas, panchayat samithis, and zila parishads. They are responsible for a variety of tasks including agriculture, rural housing, water management, rural electrification, healthcare, and sanitation. In some cases, zila parishads are also responsible for maintaining schools, ho...