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.