Source of Income of Gram Panchayat ( Village Panchayat)


The sources of income of the village Panchayat (gram Panchayat) may be divided into some broad headings. Each Gram Panchayat has its own fund. Money comes from different sources and is deposited in this fund.

The taxes imposed by the Village Panchayats are important source of income of Gram Panchayats, such as:

  • taxes on land and houses,
  • the custom duty,
  • the toll tax,
  • license fees on transport and communication etc.

Even taxes are collected from professions, trade and commerce, for lighting the streets, from schools, hospitals, dispensaries, markets, the resting places and like places used by the common people.

Money comes also as grants-in-aid from the Central or the State government or from the Zilla Parishad or Panchayat Samiti.

Another source of earning of the Panchayat is the loan collected from the Central government, the State government or other financial agencies. Money collected from gifts also sometimes becomes a source of earning for the Panchayat.

Moreover, if the State government enacts necessary laws then the Village Panchayat can impose additional stamp duties on the entry fee of different functions of entertainment and sub-taxes on transfer of unmovable property, or on gifts, mortgage or lease out of the same within its territorial jurisdiction. These will be the earning of the Village Panchayat.

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