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Source: Mint
Context:
The Centre is set to launch SAMARTH Panchayat, a dedicated digital platform to track and manage tax and non-tax revenues of Panchayats, aiming to bring transparency, efficiency, and self-reliance to local governance.
Key Highlights:
- Purpose of SAMARTH Panchayat:
- Digitizes Own Source of Revenue (OSR) collection of Panchayats.
- Facilitates generation of tax and non-tax demands, maintenance of tax registers, online tracking of revenue, and asset management.
- Provides online payment facility for citizens.
- Pilot States:
- Successfully tested in Himachal Pradesh and Chhattisgarh.
- Current Challenges in Panchayat Financing:
- 42% of Gram Panchayats collect less than ₹1 lakh annually.
- 11 states/UTs still lack OSR rules (including Uttar Pradesh, Bihar, Jharkhand, Arunachal Pradesh, Nagaland, Sikkim, Manipur, and UTs like Ladakh, Lakshadweep).
- No centralized database currently exists for granular Panchayat revenue data.
- Expected Benefits:
- Creation of first-ever comprehensive database on Panchayat revenues.
- Improved policy framing for state and central governments.
- Encouragement to states to formulate OSR rules.
- Enhances financial self-reliance of Panchayats and supports Sustainable Development Goals (SDGs).
- Concerns Raised:
- Transparency may lead to greater monitoring, potentially delaying project execution at the grassroots level.
- Significance of OSR:
- Panchayats levy local taxes, duties, tolls, and fees but heavily depend on grants from Centre and states. OSR (local taxes, fees, user charges) reduces dependence on grants from Centre and States.
- Empowers Panchayats to plan and execute development projects as per local needs.
