Budget 2025-26
A Grama Panchayat budget can mainly be divided into two parts: Receipts/Income and Expenditure. Understanding these components accurately helps in assessing whether the budget is financially sound and successful.
1. Receipts / Income
These are the sources from which money is received by the Panchayat:
Own Revenue
This includes profession tax, property tax, advertisement tax, various licence fees, and other sources of own revenue.
Government Grants
These include Development Fund, Maintenance Fund, General Purpose Grant, and other grants provided by the Government.
Centrally/State Sponsored Schemes
Funds received for schemes such as LIFE Mission, Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), and other Centrally/State Sponsored Schemes.
2. Expenditure
The major areas where the Panchayat spends its funds include:
Productive Sector
Allocations for agriculture, animal husbandry, small-scale industries, and related productive activities.
Service Sector
Expenditure on education, healthcare, drinking water, housing, and the development and welfare of women and children.
Infrastructure Development
Construction and maintenance of roads, bridges, public buildings, and other infrastructure facilities.
Administrative Expenses
Expenses related to salaries, sitting fees/honorarium, office expenses, and other administrative requirements.
Important Points to Consider While Analysing a Budget
Efficiency of Tax Collection
Assess how effectively the Panchayat has succeeded in mobilising its own funds and collecting taxes.
Sector-wise Allocation
Check whether adequate amounts have been specifically allocated for agriculture, women’s welfare, Scheduled Caste/Scheduled Tribe welfare, and other priority sectors, including the prescribed allocations for women-related programmes.
Deficit / Surplus Budget
Assess whether the Panchayat expects expenditure to exceed income (deficit) or whether there is an anticipated surplus/closing balance after meeting the estimated expenditure.