RBI Report: Panchayats Need to Intensify Their Efforts to Increase Own Revenues

Current Context: The Reserve Bank of India (RBI) released the report titled ‘Finances of Panchayati Raj Institutions’ on January 25, 2024.

• According to this report, Panchayati Raj Institutions (PRIs) need to intensify their efforts to augment their own tax and non-tax revenue resources.
• The report highlights that PRIs face constraints as they have limited own revenues from property taxes, fees, and fines.
• Nearly all of their revenues are generated through grants from higher levels of government, underscoring their heavy reliance on the central and state governments.
• The report also noted that around 95% of the PRI revenues are in the form of grants from the Centre and states, restricting their spending ability that is already hampered by delays in the constitution of State Finance Commissions (SFCs).
• For sustainable growth, panchayats need to improve their governance, and bridge the gap between local and higher levels of government.

Question:

Q.1 Who released the report titled ‘Finances of Panchayati Raj Institutions’ on January 25, 2024?
a. The Government of India
b. The Reserve Bank of India (RBI)
c. The Finance Ministry of India
d. The State Bank of India