Question

The source of maximum income for the Panchayati Raj institution is?
A. Local taxes
B. Regional funds
C. Government grants
D. Share in Union Govt. revenue

Answer 1

Hint Rural Local Bodies have the duties of providing basic amenities to the rustic populace. They are empowered to collect taxes to raise their own resources to perform their duties. The assets gathered through their own incomes do not meet their needs and vital standards.

Complete step-by-step solutionIn India, the Panchayati Raj was introduced in the year 1992 through a constitutional amendment and it referred to the local self-government of villages in rural India as opposed to urban and suburban municipalities. The grants provided by the government are the major source of income for the Panchayati Raj. The other sources of funds of the Panchayat include the collection of taxes on houses, market places, transport, etc., and taking donations for community work.

Thus, option (C) is correct

Additional Information Panchayat receives funds from three sources i.e. funds for implementation of centrally sponsored schemes. Funds released by the state governments on the recommendation of the state finance commission and local body grants as recommended by Central Finance Commission. The Assigned revenues are one which is collected by the State Government but shared with local bodies.

NotePresently, one of the main wellsprings of assets for Gram panchayats are awards from the Central Finance Commission. The ear checked assets are to the tune of INR $2.12$ Lakh crores for the period 2015–2020, for around $2.28$ Lakh Gram Panchayats in the nation. Past this, there are awards from state account commissions. Own wellsprings of income (charges, taxes, and expenses) are to a great extent undiscovered in most Gram Panchayats.