In the works, a centralized portal on gram panchayats' financials

Upcoming Centralized Portal to Streamline Gram Panchayat Financial Insights

Priya Nair
5 Min Read
Panchayats get grants from the Centre, state governments, as well as raise their own revenue in a limited way through internal sources like local-tax revenues and user charges. (AFP)

New Delhi: The Indian government is gearing up to launch an innovative digital platform called SAMARTH Panchayat, designed to streamline financial processes for rural local bodies across the country. This initiative aims to enhance transparency and efficiency in managing both tax and non-tax revenues, which is crucial for targeted policy making at the grassroots level.

The Secretary of the Panchayati Raj Ministry, Vivek Bharadwaj, emphasized the importance of this initiative: “To digitize the OSR (own source of revenue) collection of the panchayats, we have developed the SAMARTH Panchayat portal, a dedicated digital platform that facilitates the generation of tax and non-tax demands, maintenance of tax registers, and online tracking of revenue.” This platform not only supports online payments but also advances asset management, paving the way for increased financial self-sufficiency within the panchayats.

Addressing the Revenue Gap in Rural Areas

Statistics reveal a pressing need for this digital solution: approximately 42% of India’s gram panchayats collect less than ₹1 lakh annually, while 11 states have yet to formulate their own OSR rules. With these figures in mind, SAMARTH is set to become the first comprehensive database on panchayat revenues, essential for state and central governments to develop targeted policies aimed at grassroots development.

The portal has already shown promising results during its pilot programs in Himachal Pradesh and Chhattisgarh, offering a glimpse into how digitization can radically transform local finance management. Given that panchayats play a critical role in implementing government schemes and achieving sustainable development goals, this platform is a much-needed step toward modernizing financial oversight at the local level.

Streamlining Data Collection for Better Governance

Currently, the lack of a centralized, publicly accessible database for granular panchayat revenue data leads to significant inconsistencies in data collection across states. This disparity can hinder effective planning and implementation of developmental projects. Bharadwaj noted, “once the revenue data is in place, it will bring transparency in the system and assist the state and central government for better planning of developmental projects.” However, some experts, like Jitendra Meena, a professor of History at Delhi University, caution that increased transparency might come with stricter monitoring, which could impede panchayats’ ability to execute projects seamlessly.

Furthermore, the SAMARTH platform aims to encourage states that have not yet established their own OSR rules to do so. There are currently 11 states and Union territories, including Arunachal Pradesh, Bihar, and Uttar Pradesh, that have yet to initiate this framework. By digitizing the revenue collection process, these states may be motivated to set up their regulations and thereby enhance their financial governance.

The Bigger Picture: Strengthening the Indian Economy

The launch of the SAMARTH Panchayat portal is more than just an administrative upgrade; it’s an essential part of the larger strategy to fortify the Indian economy. By enabling local bodies to better manage their financial resources, the government aims to empower rural communities, leading to more sustainable and resilient economic growth. Improved financial management at the panchayat level can directly impact the quality of services provided to citizens, ranging from education to infrastructure development.

These advancements in rural finance management underscore the government’s commitment to nurturing a more inclusive economic environment, where every individual has access to the necessary resources and support to thrive. As digitization continues to take root, citizens can expect more accountable and efficient governance that aligns with their needs and aspirations.

In conclusion, the SAMARTH Panchayat portal represents a significant leap toward modernizing the financial landscape of rural India. By offering a centralized, user-friendly platform, the government is set to ensure that panchayats can effectively track their revenues, thereby laying the groundwork for sustained economic growth and social development.

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Original source: www.livemint.com

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