Local bodies turning self-sufficient through the improvement of their own revenue will go a long way in strengthening democratic decentralisation, 7th State Finance Commission chairman K.N. Harilal has said.
Dr. Harilal was addressing a workshop, ‘Resource Mobilisation in Grama Panchayats,’ organised by the Public Policy Research Institute (PPRI) as part of studies being conducted by it for the 7th State Finance Commission.
The share of non-tax revenue in the own funds of local governments has dipped from 41% in 1997-98 to 22% in 2021-22. Although there are 34 items in the non-tax revenue lists of grama panchayats, they receive only nominal income from many of these sources.
PPRI Director Mohanakumar S. said that per capita revenue for local bodies is higher in Kerala compared to the national average as the State’s decentralisation process transformed local bodies into strong institutions.
According to a report published by the Union Panchayat Raj Ministry in 2024, the per-head revenue of grama panchayats in Kerala is ₹286, while the national average is only ₹56, Dr. Mohanakumar said.
Josephine J., Chief, Decentralised Planning, State Planning Board presided.
Published – June 28, 2025 10:01 pm IST
