Financial Management of Grama Panchayats in India

73^rd Constitutional amendment and conformity acts in States provided constitutional provisions to have adequate functions, functionaries and funds to panchayatiraj institutions to convert into as Local Self Governments. Revenues and expenditures of Grama Panchayats have increased many fold. Own sources of revenue of the Grama Panchayats is very low and dependence on Central Government and State Governments is high. The important items of expenditure the panchayats are on management, education, social welfare, public works, lighting, panchayat properties, plan expenditure etc. Existing administrative machinery is not at all capable to spend fully the available resources at Grama Panchayat level. Low resources generation efforts, inadequate data sources, inadequate training, over dependence on higher levels of government are some of the financial problems facing Grama Panchayats in India.