Budget 2025-26

Arpookara Grama Panchayat

Revised Budget Analysis Report (2025–26)

Executive Summary

The Revised Budget for FY 2025–26 reflects a significant increase in both revenue and expenditure, demonstrating the Panchayat’s commitment to social welfare, housing, agriculture, sanitation, and infrastructure development. The budget emphasizes inclusive growth through welfare pensions, housing assistance, public health initiatives, and employment generation programs.

ParticularsAmount (₹)
Opening Balance5.09 Crore
Total Revenue25.61 Crore
Total Expenditure25.53 Crore
Closing Balance5.18 Crore

The projected year-end surplus of ₹5.18 crore indicates sound fiscal management and adequate financial stability.


1. Revenue Analysis

Own Source Revenue

The Panchayat continues to generate revenue from taxation, rentals, licenses, and service charges.

SourceAmount (₹)
Property Tax60 Lakh
Profession Tax (Employees)76 Lakh
Profession Tax (Institutions)3 Lakh
Total Tax Revenue1.39 Crore

Rental Income

Rental receipts contribute significantly to Panchayat revenue.

SourceAmount (₹)
Building Rent90 Lakh

Fees and License Income

SourceAmount (₹)
Building Permit Fees5.50 Lakh
IFTEOS License Fees2.95 Lakh
Bus Stand Fees2.25 Lakh
Hospital Kiosk User Charges0.75 Lakh
Public Toilet Revenue1.00 Lakh

Observation: Building rent and profession tax remain the strongest own-revenue sources. However, own-source revenue forms only a limited share of total income, indicating dependence on external grants.


2. Government Grants and Development Funds

Government grants constitute the largest share of Panchayat income.

FundAmount (₹)
General Purpose Fund1.67 Crore
Development Fund (General)2.77 Crore
SCP Fund53.42 Lakh
Road Maintenance Fund1.51 Crore
Non-Road Maintenance Fund41.97 Lakh
Finance Commission Grant (Tied)69.23 Lakh
Finance Commission Grant (Untied)44.20 Lakh

Employment Guarantee Scheme

SchemeAmount (₹)
MGNREGS2.50 Crore

Observation: Development activities are heavily supported by state and central government transfers, particularly through development funds and MGNREGS allocations.


3. Social Security and Welfare Programmes

Social security pensions account for the largest expenditure component in the budget.

SchemeAmount (₹)
Old Age Pension3.59 Crore
Agricultural Workers Pension1.89 Crore
Widow Pension1.32 Crore
Disability Pension43.77 Lakh
Women Protection Scheme34.69 Lakh

Observation: The Panchayat has prioritized social protection, ensuring financial support to vulnerable groups including senior citizens, widows, agricultural workers, and persons with disabilities.


4. Administrative Expenditure

Establishment Expenses

ComponentAmount (₹)
Permanent Staff Salary1.10 Crore
Contract Staff Salary30 Lakh
Labour Charges35 Lakh
Elected Representatives’ Allowances22 Lakh
Total Establishment Cost2.30 Crore

Office Administration

Office expenses including electricity, internet, telephone, stationery, legal expenses, and maintenance amount to approximately ₹49.35 lakh.

Observation: Administrative expenditure remains within reasonable limits considering the scale of operations and service delivery responsibilities.


5. Agriculture and Productive Sector Development

The Panchayat has allocated substantial resources to agriculture and allied sectors.

ProgrammeAmount (₹)
Paddy Cultivation60 Lakh
Dairy Development14 Lakh
Fisheries Development7.20 Lakh
Livestock Development19 Lakh
Total Productive Sector1.11 Crore

Observation: Agriculture continues to receive strong support, reflecting the Panchayat’s focus on local economic development and livelihood enhancement.


6. Service Sector Development

SectorAmount (₹)
Housing Schemes3.25 Crore
Health Programmes42 Lakh+
Drinking Water Projects21.85 Lakh
Women Welfare Programmes6.80 Lakh
Disability Welfare Programmes19.70 Lakh
Anganwadi Nutrition Programme21 Lakh

Observation: Housing receives the highest allocation among development sectors, indicating a strong commitment to improving living standards.


7. Sanitation and Waste Management

Sanitation remains a key development priority.

ProgrammeAmount (₹)
General Waste Management8.00 Lakh
Public Sanitation Activities15.71 Lakh
Solid Waste Collection and Processing24.48 Lakh
Liquid Waste Management1.60 Lakh

Observation: Continued investment in waste management aligns with public health objectives and sustainable environmental practices.


8. Infrastructure Development

Major investments are planned in:

  • Roads and pathways
  • Drainage systems
  • Street lighting
  • Public buildings
  • Bus stand improvements

Total Infrastructure Allocation: ₹46.44 Lakh

Observation: Infrastructure spending focuses on maintaining and upgrading essential public assets.


Key Strengths

  • Strong emphasis on social security and welfare pensions.
  • Significant investment in housing, healthcare, and drinking water.
  • ₹2.50 crore allocation under MGNREGS for employment generation.
  • Dedicated funding for sanitation and waste management.
  • More than ₹1 crore allocated for agriculture and allied sectors.
  • Healthy year-end surplus indicating fiscal stability.

Key Challenges

  • Own-source revenue remains relatively low compared to total revenue.
  • Heavy dependence on government grants and external funding.
  • Greater efficiency is required in tax collection, licensing, and rental income management.
  • Long-term financial sustainability depends on strengthening local revenue generation.

Conclusion

The Revised Budget 2025–26 presents a welfare-oriented and development-focused financial plan for Arpookara Grama Panchayat. The budget prioritizes social security pensions, housing assistance, public health, agriculture, employment generation, sanitation, and infrastructure development. While the Panchayat maintains a stable financial position with a projected surplus, strengthening local revenue sources and improving resource mobilization will be essential for achieving long-term fiscal sustainability and reducing dependence on government grants.