Finances of panchayats in West Bengal - New areas of resource mobilisation
- 2004
- p.777-791.
- Jul-Sep
The 73rd Constitutional Amendment Act has entrusted Panchayati Raj Institutions (PRIs) with wide-ranging responsibilities. Discharging these responsibilities requires an adequate resource base. But even prior to this amendment, financial resources of the panchayat bodies were not strong enough to implement the functions they were expected to perform. They are heavily dependent on the grants from state governments. The taxation powers given to PRIs are wide but doubts have been raised whether they fully utilise these powers in an effective manner. Panchayats at all the three levels are found to be reluctant to impsoe taxes due to various reasons. Before the 73rd Constitutional amendment Act, panchayats survived mostly on government grants and they have performed agency functions only. This article makes an attempt to review the lacuna in the existing system of collection of revenues by PRIs in West Bengal and suggests measures to rectify the loopholes. Further, it focuses on some newer sources of revenue, which could possibly be utilised by the PRIs with political will. - Reproduced.