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GOVERNMENT OF INDIA
MINISTRYOF PANCHAYATI RAJ
RAJYASABHA
UNSTARRED QUESTIONNO.4232
ANSWEREDON 01.04.2026
OWN SOURCE REVENUE MOBILISATIONIN MAHARASHTRA
4232DR. FAUZIAKHAN:
Will the Minister of PANCHAYATIRAJ be pleased to state:
(a) whether Ministry monitors the district-wise status of Own Source Revenue (OSR)
mobilization by Gram Panchayats (GP) in Maharashtra under studies or reports supported by
Ministry;
(b) if so, district-wise OSR collections of GP in Maharashtra during last three years and total
GPs in the State with very low or nil OSR collections, as identified in National Institute of
PublicFinance andPolicy(NIPFP)WorkingPaperNo. 427 of 2025; and
(c) whether Ministry proposes specific measures to strengthen OSR mobilization in
Maharashtra through property tax, user charges and monetization of common property
resources andif so, detailsthereof?
ANSWER
THE MINISTER OF PANCHAYATI RAJ
(SHRIRAJIVRANJAN SINGH ALIAS LALAN SINGH)
(a): “Panchayat”, being a “Local Government”, is a State subject and part of the State List
of the Seventh Schedule of the Constitution of India. Panchayats are set up and operate
through the respective StatePanchayati Raj Acts, which may varyfrom StatetoState, subject
to the provisions of the Constitution. As per Article 243H of the Constitution of India,
legislature of the State may, by law, authorize a Panchayat to levy, collect and appropriate
such taxes, duties, tolls andfees inaccordance with such procedure andsubject tosuch limits
and assign to the Panchayats such taxes, duties, tolls and fees levied and collected by the
State Government for such purposes and subject to such conditions and limits as may be
specified in the law. As such, this Ministry does not maintain or monitor the district-wise
status of Own Source Revenue (OSR) mobilization by Gram Panchayats (GPs) in States,
includingMaharashtra.
(b): The National Institute of Public Finance and Policy (NIPFP) Working Paper No. 427 of
2025 is an internal paper of NIPFP. Further, in this Working Paper there is no mention of
district-wise OSR collections of GPs in Maharashtra during last three years and total GPs in
the Statewith very low or nil OSRcollections.
(c): However, the Government has taken steps to enhance the revenue-generating capabilities
of Panchayats in all States, including Maharashtra, enabling them to become self-sufficient
1and less dependent on external funding. The 73rdConstitutional Amendment Act, 1992,
mandates the devolution of powers and responsibilities to Panchayats. The Ministry of
Panchayati Raj has been actively advocating for states to fully implement these provisions,
emphasising the need for states to empower Panchayats with adequate functions, finances,
and functionaries, including strengthening OSR mobilizationby enforcing the provisions of
Article 243H of the Constitution of India.
In collaborationwith the IndianInstitute of Management-Ahmedabad(IIM-A),
Ministryhasdevelopedspecialised modulesonthe generationof OwnSourceRevenue (OSR)
by the Panchayats to provide training to State Level Master Trainers (SLMTs) of 31
States/UTs byIIMA.
The Ministry of Panchayati Raj has also undertaken a significant step to digitise the
OSR collection of the Panchayats by developing the “SAMARTH Panchayat portal”, a
dedicated digital platform that facilitates the generation of tax & non-tax demands and
collection thereof, maintenance of tax registers, and online tracking of revenue. This digital
empowerment is designed to bring transparency, efficiency, and scalability to local financial
administration. The State of Maharashtrais onboarded on the SAMARTH portal and the first
phase of trainingfor the officials of thisStatewas completed inthe first week of March 2026.
In 2025, the Ministry of Panchayati Raj has launched the Atma Nirbhar Panchayat
Special Award(ANPSA) topromote Atmanirbharta through the augmentation of Own Source
Revenue (OSR)byPanchayats.
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