Revenue mobilization by gram panchayats in Karnataka: An economic analysis

Abstract

Gram Panchayats have more responsibilities and less financial sources (Rajaraman, Bohra and Renganathan, 1996; Abdul, 2000). Therefore requiring them to mobilize "own" revenues is important both for reasons of efficiency and accountability. Therefore this paper explores firstly understanding relationship of own source revenue with other socio economic variables in GPs and the revenue mobilization of Gram Panchayats in four divisions of Karnataka through an analysis of secondary data. Its analysis of SC/ST population, Cultivators in the main workers and household industry these three components significantly influence to OSR but literacy components was negatively related to OSR collection. It was, observed that of all the factors of economic development was fundamental. Because of Bangalore and Mysore divisions were revenue mobilization and PCIOSR has been significant increases compare to Belagavi and Kalaburgi in study period. Therefore Kalaburgi division can’t possible higher increase the revenue mobilization and PCIOSR compare to other three divisions of Karnataka because of socio-economic backwardness. Therefore the State Government provide the infrastructure facility to rural people. Government fill the gap in the understanding of villagers as to why they should pay tax. GPs will do visible service delivery with OSR; campaigns to explain to people as to why it is necessary for the Panchayats to generate its own fund by exploiting its tax and non tax revenue sources. While communicating to the gram Panchayats, it needs to be emphasised that resource generation from own sources and utilising such resources for local development should be considered a priority task of all gram Panchayats in backward divisions.