Own source revenue of local bodies
Also called: Own source revenue of panchayats · Topic: Panchayati Raj: Rural Local Government · NCERT: Class 11, Ch 8 "Local Governments"
Meaning
Own-source revenue is money that panchayats and municipalities raise themselves. Examples are property tax, market fees and water charges. Under Art. 243H, a state may allow panchayats to levy such taxes and fees. This money matters because it gives a local body freedom to act on its own priorities. In practice the amount is very small, so local bodies depend heavily on grants from the state and the Centre.
Example
Class 11 NCERT gives an older figure: local bodies raised only 0.24% of total revenue but made 4% of all public spending. An RBI study (2024) put panchayats' own revenue at about 1% of their receipts. The SVAMITVA scheme's property cards could widen the property-tax base of gram panchayats.
Don't confuse with
- Grants: money given by the state, or recommended by the Finance Commission, from higher levels of government. Own-source revenue is raised locally.
Related concepts
- Eleventh Schedule
- Devolution of powers to panchayats
- Activity mapping
- State Finance Commission
- Tied and untied grants to local bodies