Executive Summary:
This document presents the Ministry of Panchayati Raj's response to Lok Sabha Starred Question No. 124 regarding the Own Source Revenue (OSR) of Gram Panchayats. It provides data on OSR generated by Panchayats from 2017 to 2022, discusses challenges in OSR generation, and outlines government measures to enhance Panchayats' financial autonomy. The response refers to the report of an Expert Committee constituted in 2022, and includes state-wise OSR data in annexures.
Key Points / Main Content:
* **Constitutional Provisions and Data Maintenance:**
* Article 243H of the Constitution authorizes states to empower Panchayats to levy and collect taxes, duties, tolls, and fees.
* The Ministry of Panchayati Raj does not maintain OSR data, as Panchayats are a state subject. States and Panchayats often do not share OSR data.
* **OSR Data and Disparities (2017-2022):**
* Panchayats collected approximately Rs. 25595 Crores in OSR across 30 States/UTs from 2017-18 to 2021-22.
* The national per capita OSR was around Rs. 59 annually during this period, with significant variations across states (e.g., up to Rs. 1635 in Goa). State/UT-wise and average per capita OSR data are in Annexures I and II.
* **Challenges in OSR Generation:**
* Non-updated state rules and guidelines.
* Inadequate devolution of powers to Panchayats for levying taxes and fees.
* Lack of willingness by Panchayats to impose taxes and fees.
* Non-cooperation of citizens and lack of penalization for defaulters.
* Dependence on central and state funds.
* Lack of infrastructure and resources for OSR collection.
* Inadequate utilization of existing taxation powers.
* **Government Measures to Enhance Financial Autonomy:**
* Implementation of the Revamped Rashtriya Gram Swaraj Abhiyan (RGSA) to develop governance capabilities and enhance OSR generation.
* Development of specialized OSR modules in collaboration with IIM Ahmedabad, with training for State Level Master Trainers (SLMTs).
* Incentivization of Panchayats through the Atma Nirbhar Panchayat Special Award (ANPSA) launched in 2025.
* Digitization of OSR collection through the SAMARTH Panchayat portal.
* Constitution of a committee to formulate Model Rules for OSR of Panchayats.
Impact Analysis:
* **Panchayats:**
* *Impact:* Affected by state-level rules and guidelines, devolution of powers, and the need to improve OSR collection. They are incentivized through awards and supported by capacity-building initiatives and digitization efforts.
* *Action Required:* Implement strategies to improve OSR collection, utilize available training modules, participate in award schemes, and adopt the SAMARTH Panchayat portal for digital OSR management.
* **State Governments:**
* *Impact:* Responsible for devolving powers to Panchayats, updating rules and guidelines related to OSR, and potentially revising their OSR rules based on the Model Rules.
* *Action Required:* Review and update OSR-related rules and guidelines, ensure adequate devolution of powers to Panchayats, and consider adopting the Model Rules for OSR.
* **Citizens:**
* *Impact:* Affected by the imposition of taxes and fees by Panchayats and the potential for penalization for defaults.
* *Action Required:* Cooperate with Panchayats in paying taxes and fees to support local development.
* **Ministry of Panchayati Raj:**
* *Impact:* Oversees the implementation of RGSA, development of training modules, incentivization programs, and digitization efforts.
* *Action Required:* Continue to support Panchayats through RGSA, monitor the impact of capacity-building initiatives, and promote the adoption of the SAMARTH Panchayat portal.
Key Entities Referenced
Ministry of Panchayati Raj: The Indian government ministry responsible for Panchayati Raj institutions.
Gram Panchayats: Village level local self-government institutions in India.
Own Source Revenue: Revenue generated by Panchayati Raj Institutions through their own means, such as taxes, fees, and tolls.
Constitution of India: The supreme law of India, which includes provisions for Panchayats.
Expert Committee on Own Source Revenue of Rural Local Bodies: A committee constituted by the Ministry of Panchayati Raj in 2022 to review the status of Own Source Revenue of Panchayats.
Rashtriya Gram Swaraj Abhiyan: A centrally sponsored scheme implemented by the Ministry of Panchayati Raj to develop governance capabilities of Panchayati Raj Institutions.
Indian Institute of Management Ahmedabad: An Indian management institute collaborating with the Ministry of Panchayati Raj to develop modules on Own Source Revenue generation.
Atma Nirbhar Panchayat Special Award: An award launched by the Ministry of Panchayati Raj to incentivize and acknowledge exemplary efforts of Gram Panchayats in achieving self-reliance through Own Source Revenue augmentation.
GOVERNMENT OF INDIA
MINISTRYOF PANCHAYATI RAJ
LOK SABHA
STARREDQUESTION NO. 124
ANSWEREDON 29.07.2025
OWNSOURCE REVENUE OFGRAM PANCHAYATS
*124.SMT.KANIMOZHI KARUNANIDHI:
Will the Minister of PANCHAYATIRAJ be pleased to state:
(a) the total Own Source Revenue (OSR) generated byGram Panchayats in the country along
with the percapitaOSR between2017to2024, Stateandyear-wise;
(b) the State-wise OSR figures, highlighting the States with the highest and lowest per capita
OSR,andthe factorscontributing tothese disparities;
(c) whether the Government has identified challenges faced by Panchayats in generating
OSR,such aslackof OSRrulesor administrative hurdlesandif so, the detailsthereof;
(d) the measures taken by the Government to enhance the financial autonomy of Panchayats
through improved OSR generation, including any capacity-building initiatives or policy
reforms; and
(e) whether there has been any assessment of the impact of low OSR on the functioning and
service deliveryof Panchayats, if so, the detailsthereofandif not,the reasons therefor?
ANSWER
THE MINISTER OF PANCHAYATI RAJ
(SHRIRAJIVRANJAN SINGH ALIAS LALAN SINGH)
(a)to(e): Astatement islaidonthe Tableof the House.
1STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (e) OF THE LOK
SABHASTARRED QUESTION NO. 124 FOR AN ANSWER ON 29.07.2025
REGARDING ‘OWN SOURCE REVENUE OF GRAM PANCHAYATS'
(a) to (c) As per Article 243H of the Constitution of India, legislature of the State may, by
law, authorize a Panchayat to levy, collect andappropriate such taxes, duties, tolls andfees in
accordance with such procedure and subject to such limits and assign to the Panchayats such
taxes, duties, tolls and fees levied and collected by the State Government for such purposes
andsubject tosuch conditionsandlimits asmaybe specified inthe law.
The Ministry of Panchayati Raj does not maintain the data pertaining to OSR of Panchayats,
as Panchayat, being “Local Government”, is a State subject and part of the State list of the
Seventh Schedule of the Constitution of India. Furthermore, States as well as Panchayats
often do not share OSR data related to Panchayats. However, the Ministry of Panchayati Raj
constituted an “Expert Committee on Own Source Revenue of Rural Local Bodies” in 2022
toreviewthe status of OSRof Panchayats.As perthe report of the Expert Committee,around
Rs. 25595 Crores OSR have been collected by Panchayati Raj Institutions in the 30
States/UTs, during 2017-18 to 2021-22and per capita OSR at the national level was around
Rs. 59 annually, for the same period. The per capita OSR varies significantly across the
States, ranging up to Rs. 1635 per annum in Goa. As per the Expert Committee report, the
major factors contributing to these disparities and challenges faced by the Panchayats in
generatingOSRare :
i. Non-formation/updationof rules/guidelines at the Statelevel
ii. Inadequatedevolutionof powers byStates toPRItolevytaxes/fees/tolls, etc.,in letter
andspirit
iii. Lackof willingness of Panchayats toimpose taxes/fees, etc.
iv. Non-cooperationof citizensof PRIs andnon-penalisationof defaulters;
v. Dependence of PRIsonCentre andState Funds
vi. Lackof infrastructure & resources for the collectionof OSR
vii. Inadequateutilization of existing taxationpowers.
The State/UT-wise OSRof Panchayats(2017-18 to2021-22) isplaced asAnnexure-I.
The State/UT-wise Average Per Capita OSR by Panchayats (2017-18 to 2021-22) is
placedasAnnexure-II.
(d) & (e) The Ministry hasbeenimplementing the CentrallySponsoredScheme of Revamped
Rashtriya Gram Swaraj Abhiyan (RGSA) with the primary objective of developing
governance capabilities of Panchayati Raj Institutions to deliver on Sustainable Development
Goals. The scheme also aimstoenhancePanchayats' capabilities toraise their own sources of
revenue. It provides interventions relating to gap-filling support for economic development
andincome enhancement inthe Panchayat.
Ministry of Panchayati Raj, in collaboration with the Indian Institute of Management-
Ahmedabad (IIM-A), has developed specialised modules on the generation of Own Source
Revenue (OSR) by the Panchayats. Based on the specialised modules of OSR training of
State Level Master Trainers (SLMTs) of 31 States/UTs are being trained by the team of IIM-
A.
2The incentivization of Panchayats is also being carried out under the revamped Rashtriya
Gram Swaraj Abhiyan (RGSA) scheme. Under this scheme, in 2025, the Ministry of
Panchayati Raj has launched the Atma Nirbhar Panchayat Special Award (ANPSA) on
National Panchayati Raj Day (NPRD), and it is for the first time that the Ministry has
institutionalised dedicated Special Category Awards to incentivise and acknowledge
exemplary efforts of Gram Panchayats in Atmanirbharta (Self-Reliance) through
augmentation of Own Sources Revenue (OSR). Atma Nirbhar Panchayat Special Award
(ANPSA)isto promote Atmanirbharta through augmentationof Own Source Revenue (OSR)
byPanchayats.
The Ministry of Panchayati Raj (MoPR) 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,
maintenance of tax registers, and online tracking of revenue. This digital empowerment is
designed tobring transparency, efficiency,andscalability tolocalfinancialadministration.
The Ministry of PanchayatiRaj (MoPR) has also constituted a committee toformulate Model
Rules for the Own Sourcesof Revenue of the Panchayats, which would serve asa benchmark
for states informulatingor revising theirOSRrules.
***
3Annexure-I
(Annexure referred to in reply to parts (a) to (c) of the Lok Sabha Starred Question No. 124
answered on 29.07.2025)
State/UT-wise OSRof Panchayats (2017-18 to 2021-22)
(Rs inCrores)
Sl.No. State/UT 2017-18 2018-19 2019-20 2020-21 2021-22
1 Andaman& Nicobar Islands 2.12 1.6 2.5 2.84 3.02
2 Andhra Pradesh 688.74 739.77 685.08 876.95 969.09
3 Assam 25.98 25.63 15.25 21.22 26.65
4 Bihar 0 0 0 0 37.89
5 Chhattisgarh 166.51 144.8 159.69 132.57 141.5
6 Goa 225.49 61.08 220.54 85.62 218.52
7 Gujarat 864.1 778.3 881.46 795.14 0
8 Haryana 50.58 108.56 83.73 71.99 60.06
9 HimachalPradesh 0.04 0.41 0.42 0.53 1.45
10 Jammu & Kashmir 0 0 15.01 0 2.08
11 Jharkhand 0.16 0.42 1.78 23.64 1.86
12 Karnataka 385.94 552.86 671.37 715.41 812.21
13 Kerala 868.62 802.84 792.05 769.94 781.28
14 Ladakh 0.28 0.07 0.09 0.04 0.05
15 Lakshadweep 0.04 0.04 0.04 0.01 0.03
16 Madhya Pradesh 0 0 0 105.22 63.93
17 Manipur 0.61 1.06 0.18 0.2 0.41
18 Mizoram 0.04 0.04 0.06 0.09 0.04
19 Nagaland 0 0 0 0 0
20 Odisha 38.82 44.26 42.13 43.14 0
21 Puducherry 29.46 35.28 45.26 41.08 45.93
22 Punjab 126.45 172.28 170.93 164.17 157.98
23 Rajasthan 40.98 40.9 49.48 66.35 56.73
24 Sikkim 1.58 1.78 2.87 0 0
25 Tamil Nadu 731.93 795.24 433.49 209.3 411.55
26 Telangana 397.54 425.66 321.02 278.25 292.98
27 Tripura 3.02 3.94 3.8 0 0
28 Uttar Pradesh 192.89 204.27 0 229.08 246.34
29 Uttarakhand 14.17 15.41 14.4 13.26 16.21
30 West Bengal 522.63 502.88 487.23 198.43 464.66
5378.74 5459.38 5099.84 4844.47 4812.46
Source: Reportof theExpertCommittee onOSR of RuralLocal Bodies
4Annexure-II
(Annexure referred to in reply to parts (a) to (c) of the Lok Sabha Starred Question No. 124
answered on 29.07.2025)
State/UT-wiseAveragePerCapitaOSRbyPanchayats(2017-18to2021-22)
Sl.No. State/UT Average OSR(₹Crore)PerCapitaOSR(₹)
1 Goa 162.25 1,635
2 Puducherry 39.4 757
3 Kerala 802.95 286
4 Andhra Pradesh 791.93 209
5 Gujarat 829.75 199
6 Telangana 343.09 159
7 Karnataka 627.56 148
8 Tamil Nadu 516.3 109
Andaman& Nicobar
9 2.42 94
Islands
10 Punjab 158.36 87
11 Chhattisgarh 149.01 70
12 West Bengal 435.17 57
13 Haryana 74.99 41
14 Sikkim 1.25 25
15 Uttarakhand 14.69 20
16 Madhya Pradesh 84.58 15
17 Uttar Pradesh 218.14 13
18 Odisha 42.09 11
19 Rajasthan 50.89 9
20 Tripura 3.59 9
21 Assam 22.95 7
22 Lakshadweep 0.03 5
23 Bihar 37.89 4
24 Ladakh 0.1 4
25 Jammu & Kashmir 3.42 3
26 Jharkhand 5.57 2
27 Manipur 0.49 2
28 Himachal Pradesh 0.57 1
29 Mizoram 0.05 1
30 Nagaland 0 0
Total 5,118.98 59
Source:ReportoftheExpertCommitteeonOSRofRuralLocalBodies
***
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