Budget Report 2025 - 26
Kootickal Grama Panchayat Budget 2025–26: Analytical Report
1. General Overview
The budget for the financial year 2025–26 identifies the Panchayat’s major sources of revenue as:
- Tax Revenue
- Non-Tax Revenue
- Fees and User Charges
- Rental Income from Panchayat Assets
- Deposits and Refunds
2. Revenue Income – Taxes
| Item | 2023–24 Actual | 2024–25 Budget | 2025–26 Budget |
|---|---|---|---|
| Property Tax | ₹33.89 lakh | ₹42.00 lakh | ₹45.00 lakh |
| Profession Tax | ₹10.49 lakh | ₹11.00 lakh | ₹11.50 lakh |
| Total | ₹44.38 lakh | ₹53.00 lakh | ₹56.50 lakh |
Assessment
- The Panchayat aims for an approximately 6–7% increase in tax revenue.
- Property tax continues to be the Panchayat’s primary and most stable source of income.
3. Rental Income from Panchayat Assets
| Item | 2023–24 | 2025–26 |
|---|---|---|
| Land/Building Rent | ₹80,760 | ₹1.20 lakh |
| Auditorium/Hall Rent | ₹29,000 | ₹50,000 |
| Total | ₹1.10 lakh | ₹1.70 lakh |
Assessment
- The budget reflects efforts to increase revenue by making better use of Panchayat-owned assets.
- A revenue growth target of approximately 55% has been set in this category.
4. Fees and User Charges
Major Components
| Item | 2025–26 Budget |
|---|---|
| License Fees | ₹1.75 lakh |
| Permit Fees | ₹9.00 lakh |
| Penalties and Fines | ₹1.30 lakh |
| Various Fees | ₹1.00 lakh |
| Administrative Charges | ₹1.00 lakh |
| Total | ₹14.23 lakh |
Assessment
- Permit fees constitute the largest share of this revenue category.
- The Panchayat is attempting to strengthen service-based revenue generation.
5. Sales and Hire Charges
| Item | 2025–26 Budget |
|---|---|
| Product Sales | ₹2.00 lakh |
| Form Sales | ₹15,000 |
Assessment
- Revenue estimates appear more realistic compared to previous years.
- This reflects a practical approach to forecasting income from sales-related activities.
6. Deposits and Refunds
| Item | 2025–26 Budget |
|---|---|
| Earnest Money Deposit | ₹2.00 lakh |
| Security Deposit | ₹1.50 lakh |
| Retention Amount | ₹50,000 |
| Recoveries Payable | ₹2.00 lakh |
| Total | ₹6.00 lakh |
Assessment
- These figures indicate the continued flow of contract- and project-related deposit transactions.
- The budget assumes a stable level of such financial activities.
Key Findings
Strengths
✅ Steady growth in tax revenue.
✅ Efforts to generate additional income through better utilization of Panchayat assets.
✅ Increasing self-generated revenue through permits, licenses, and service fees.
Challenges
⚠️ Some revenue targets are significantly higher than previous years’ actual collections, making collection efficiency crucial.
⚠️ The Panchayat continues to rely heavily on tax revenue as its primary source of income.
Recommendations
- Strengthen the collection of arrears and outstanding taxes.
- Maximize the utilization of Panchayat halls, buildings, and other public assets.
- Improve revenue collection through digital payment systems and online licensing services.
- Attract more external funding, grants, and development assistance for infrastructure and welfare projects.
Conclusion
The 2025–26 Budget of Kootickal Grama Panchayat appears to be a relatively realistic and growth-oriented budget that seeks to increase self-generated revenue and improve the utilization of Panchayat assets. Tax revenue and fee-based income are expected to remain the primary pillars of the Panchayat’s financial stability, while efforts to diversify revenue sources could strengthen its long-term fiscal sustainability.