BUDGET

An Annual Budget is a financial plan prepared by estimating in advance the revenue expected to be received and the expenditure to be incurred by the Panchayat during a financial year, which generally runs from 1 April to 31 March.

The major components generally included in a budget are:

1. Sources of Revenue

  • Government grants
  • Taxes, such as building tax and profession tax
  • Licence fees
  • Project-related income
  • Other fees and penalties

2. Expenditure

  • Development activities such as roads, drinking water supply, sanitation, etc.
  • Salaries of employees
  • Welfare schemes
  • Electricity and maintenance expenses
  • Health and education-related activities

3. Plan Allocations

  • Women’s development
  • Welfare of Scheduled Castes/Scheduled Tribes
  • Agriculture
  • Infrastructure development

In Kerala, the budgets of Panchayats are generally prepared during the January–March period and approved by the elected governing body. Subsequently, the budget is generally made available to the public.