Arpookara
Grama Panchayat

Arpookara Grama Panchayat – Annual Financial Statement (AFS) 2024-25: Analytical Report

1. Executive Summary

The Annual Financial Statement (AFS) 2024-25 indicates that Arpookara Grama Panchayat maintained a strong and stable financial position throughout the year. The Panchayat successfully implemented a wide range of development, welfare, infrastructure, housing, agricultural, and social security programmes while maintaining healthy cash reserves and a sound asset base.

Despite recording a revenue deficit of ₹52.82 lakh during the year, the Panchayat's overall financial health remains stable due to substantial reserves, strong liquidity, and significant government support.

2. Financial Position Analysis

As of 31 March 2025, the Panchayat reported total assets and liabilities of ₹16.71 crore, reflecting a financially balanced position.

Key Observations

• The Panchayat possesses a strong reserve base of over ₹6 crore.
• Cash and bank balances exceeding ₹5 crore indicate excellent liquidity.
• Fixed deposits provide additional financial security and interest income.
• Borrowings remain relatively low compared to total assets.

3. Revenue Analysis

The Panchayat generated ₹17.49 crore in total revenue during 2024-25.

Major Sources of Revenue

Revenue Structure

• Government grants account for approximately 84% of total revenue.
• Own-source revenue contributes around 16% of total income.
• Rental income is the largest own-source revenue stream.
• Professional Tax and Property Tax continue to be the primary tax revenues.

Significant Revenue Achievements

Assessment

The Panchayat demonstrates good performance in generating own revenue, particularly through rental income and professional tax collection. However, dependence on government grants remains high, indicating scope for strengthening local revenue mobilization.

4. Expenditure Analysis

Total expenditure during the year amounted to ₹18.00 crore.

Major Expenditure Heads

Expenditure Pattern

• Social security payments constitute the largest expenditure component.
• Significant investments were made in roads, housing, water supply, and welfare programmes.
• Employee expenditure remains moderate relative to total spending.
• Development-oriented expenditure forms a substantial portion of the budget.

5. Development Sector Performance

A. Productive Sector

Assessment:
The Panchayat continued supporting agriculture and allied sectors, with particular emphasis on paddy cultivation and dairy development.

B. Service Sector

Assessment:
The Panchayat prioritized housing, drinking water, social inclusion, health care, and nutrition programmes, reflecting a people-centered development approach.

C. Infrastructure Development

Assessment:
Road development received the highest allocation, demonstrating the Panchayat's commitment to improving transportation and public infrastructure.

6. Social Security Performance

The Panchayat distributed ₹5.76 crore through various social security pension schemes.

Assessment

The substantial expenditure on pensions reflects the Panchayat's effective implementation of welfare programmes and support for vulnerable sections of society.

7. Cash Flow and Liquidity Analysis

Assessment

• Cash balances increased during the year.
• The Panchayat maintained strong liquidity despite heavy development spending.
• Adequate cash reserves provide flexibility for future projects and emergencies.

8. Strengths Identified

1. Strong asset base and reserve position.
2. Healthy cash and bank balances.
3. Excellent rental income generation.
4. Effective collection of professional tax and property tax.
5. Significant investment in roads, housing, and public services.
6. Strong social security coverage.
7. Low debt burden relative to total assets.
8. Positive liquidity growth during the year.

9. Areas for Improvement

1. Dependence on government grants remains high.
2. Own-source revenue should be further enhanced.
3. User charges and service fees can be strengthened.
4. Greater investment in productive sectors may improve local economic development.
5. Measures to reduce recurring revenue deficits should be considered.

10. Conclusion

The Annual Financial Statement 2024-25 reveals that Arpookara Grama Panchayat is financially stable, administratively capable, and development-oriented. Major investments were made in road infrastructure, housing, drinking water, agriculture, social welfare, and pension distribution. The Panchayat maintained strong liquidity, substantial reserves, and a healthy asset position throughout the year.

Although a revenue deficit of ₹52.82 lakh was recorded, the Panchayat's overall financial condition remains sound due to its strong reserve funds, robust cash balances, and effective utilization of government grants. The AFS demonstrates that Arpookara Grama Panchayat continues to maintain a balanced approach towards development, welfare, and financial management.