The study “Preparation of a Viable Financial Model for Generation of Own Source Revenue (OSR)” is an attempt to address the issue of limited revenue generation (tax and non-tax) at the Gram Panchayat level. Ministry of Panchayat Raj (MoPR) commissioned this study to study the landscape of finances of Panchayats in the context of Panchayati Raj Acts, activity mapping at the District-, Block- and Gram Panchayat level and capacity at institutional level in raising own source revenue at Gram Panchayat level and prepare a viable financial model for the generation of own source revenue. 

The study synthesises the varying empowerment of Panchayats across the states, improper activity mapping and influence of line departments in not transferring the common property resources as one of the reasons for low revenue generation at Gram panchayat level. Lack of clarity in empowerment of Taxes and User charges both to assess the tax base and rates is another reason for low revenue generation. The study suggest certain measures in making some changes in PRI act and also on man power. The study suggest a viable financial model for revenue generation at PRI level. 

Link

Comments -  (The Chapter List of contents attached) The focus of the study is broadly two-fold: (i) a public expenditure review (PER) incorporating fiscal marksmanship and PEFA (public expenditure and financial accountability) analysis; and (ii) quantitative and qualitative evaluation (OECD DAC) and econometric modelling of fiscal interventions to analyse their impact on child protection outcomes. The study also provides field level Public Expenditure Tracking, Accountability and Institutional Review of Child Care Institutions across selected districts in Odisha. (March 2023)

This study attempts to construct a consistent macroeconomic framework for India to review the macro-fiscal linkages over the 14th Finance Commission period of 2015-19.  The existing NIPFP model has been reworked to add a full-fledged real sector block comprising of agriculture, industry, services and infrastructure, with the overall economy comprising of real sector block, external block, monetary block, fiscal block and macroeconomic block. The estimated model was used for policy simulations for the 14th Finance Commission period. The various scenarios include (a) shock due to 7th Pay Commission award, (b) targeting deficit and debt (c) targeting higher growth and (d) the external shocks.  The results suggest that while Pay Commission award would result in slightly higher growth compared to the base case, this also results in higher inflation, fiscal-revenue deficits, current account deficit as well as higher government liability.  Further simulation results suggest that expenditure switching policy, which is the core of expansionary fiscal consolidation mechanism, by increasing higher government capital expenditure and reducing the government transfers could result in higher growth with a manageable fiscal deficit of 6 per cent that also brings down the government liability to its present level of 65 per cent.  

This study examines the impact of tax on enterprise development on three specific themes: (a) Impact of Tax Exemptions and Concessions on Enterprise Development; (b) The Impact of the Value-Added-Tax (VAT) on Enterprise Development; and (c) The Impact of Property Tax on Enterprise Development.

This was an IDRC funded project covering five countries – India, Pakistan, Nepal, Bangladesh and Sri Lanka. It was coordinated by Governance Institutes Network International (GINI), Pakistan.

The targeted outcomes include five Country Study Reports as well as a regional report based on meta -analysis, which can be found on GINI website.