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RBI Report: Panchayats’ Own Revenues Only 1.1% of Total Revenue.

Banking & Finance | Dated: 04 Feb 2026

A Reserve Bank of India (RBI) report titled "Finances of Panchayati Raj Institutions" reveals that Panchayats earn only 1.1% of their total revenue through their own sources (taxes and fees). They are heavily dependent on grants from the Central and State governments.

🎯 Key Highlights:

  • 95% of their revenue comes from grants.
  • The report analyzes data for the fiscal year 2022-23.
  • It suggests that greater autonomy is needed for effective local governance.

💡 Other Important Facts:

  • Report: Panchayat Finances.
  • Publisher: RBI.
  • Own Revenue: 1.1%.

📚 Test Your Knowledge:

According to the RBI report on Panchayati Raj Institutions, what percentage of their total revenue comes from their own sources?

Correct Answer: 1.1%

🚀 Quick Recap:

About Panchayati Raj

  • Amendment – 73rd (1992)
  • Schedule – 11