2025-26 Budget Report
Key Financial Statistics
Item
2023–24 Actual
2024–25 Revised Budget
2025–26 Budget
Opening Balance
₹1,26,47,126
₹59,15,520
₹73,33,642
Tax Revenue
₹48,00,000
₹33,60,203
₹58,00,000
Non-Tax Revenue
₹21,62,065
₹19,62,528
₹27,05,000
Own Fund
₹69,62,065
₹53,22,731
₹85,05,000
General Purpose Fund
₹90,08,400
₹56,53,500
₹90,48,000
Other Plan Grants
₹1,20,02,000
₹1,54,57,940
₹6,03,43,500
Other Non-Plan Grants
₹4,00,00,000
₹2,10,26,500
₹4,60,00,000
Total Revenue Income
₹6,79,72,465
₹4,74,60,671
₹12,38,96,500
Capital Income
₹74,28,000
₹3,46,885
₹2,07,97,871
Total Income
₹7,54,00,465
₹4,78,07,556
₹14,46,94,371
These figures are from the information provided in the Budget Statement in the PDF.
Expenditure
₹12,56,29,193 has been allocated for revenue expenditure in 2025–26. This includes:
Statutory/Mandatory Functions – ₹1,60,91,500
Plan Revenue Expenditure – ₹6,35,37,693
Non-Plan Revenue Expenditure – ₹4,60,00,000
These are the major categories.
₹1,25,45,000 has been allocated for establishment expenses in 2025–26.
Capital expenditure mainly includes:
Buildings – ₹50,00,000
Roads – ₹54,00,000
Culverts/Bridges/Other Constructions – ₹20,00,000
These are included.
General Assessment of the 2025–26 Budget
The 2025–26 budget anticipates a significant increase in revenue, particularly in plan grants, compared to previous years. While total income is estimated at around ₹14.47 crore, revenue expenditure is around ₹12.56 crore.
The plan grant estimated at ₹6.03 crore in 2025–26 represents a substantial increase compared to the amount exceeding ₹1.54 crore in the previous year.
At the same time, since a large share of the budget depends on grants related to state/central schemes, strengthening the panchayat's own revenue sources is an important issue that the panchayat should consider.
Malayalam Report – Draft
Kodikulam Grama Panchayat
Budget for the Financial Year 2025–26 – Analytical Report
1. Introduction
This report has been prepared based on an examination of the budget document of Kodikulam Grama Panchayat for the financial year 2025–26. The expected revenue, expenditure, grants, own fund, capital income, and development activities of the panchayat have been mainly assessed.
2. Revenue Position
The panchayat expects a total income of ₹14,46,94,371 in the financial year 2025–26. Of this, revenue income is ₹12,38,96,500 and capital income is ₹2,07,97,871.
₹85,05,000 is expected as own fund, including tax revenue and non-tax revenue. ₹90,48,000 has been included in the budget as the General Purpose Fund, along with a substantial amount as other grants.
3. Dependence on Grants
The 2025–26 budget allocates ₹6,03,43,500 as plan grants and ₹4,60,00,000 as non-plan grants.
This makes it clear that government grants have a major share in the panchayat's total financial resources. Therefore, the timely receipt and utilization of grants should be ensured.
4. Revenue Expenditure
The total revenue expenditure for 2025–26 is ₹12,56,29,193.
The major allocations include ₹1,60,91,500 for mandatory/statutory functions, ₹6,35,37,693 for plan expenditure, and ₹4,60,00,000 for non-plan expenditure.
5. Establishment Expenditure
₹1,25,45,000 has been allocated for establishment expenses. This category includes employees' salaries, pension contributions, leave salary contributions, administrative expenses, etc.
It is desirable to manage establishment expenses in a controlled manner and make maximum resources available for development/service activities.
6. Capital Development Activities
The budget allocates funds for infrastructure development activities such as road development, building construction, culverts/bridges, etc.
The major allocations are ₹54,00,000 for road development, ₹50,00,000 for buildings, and ₹20,00,000 for culverts/bridges and other construction activities.
7. Key Observations
There is a significant increase in the overall budget size of the panchayat in 2025–26.
A substantial increase in plan grants is expected compared to the previous year.
Measures to increase the panchayat's own revenue need to be strengthened further.
Since the level of dependence on government grants is high, the timely receipt and utilization of funds should be ensured.
Development funds should be converted into projects in a timely manner and physical and financial progress should be ensured.
It is appropriate to control establishment and administrative expenses and allocate more resources to public services and development activities.
Improving the collection of tax and non-tax revenues will help the panchayat achieve greater financial self-reliance.
8. Conclusion
The 2025–26 budget of Kodikulam Grama Panchayat appears to aim at allocating more financial resources for development activities. In particular, the increase in plan grants creates a favorable environment for development activities.
At the same time, strict monitoring is required to actually collect the revenue anticipated in the budget and to utilize the allocated funds in a timely manner. Strengthening own revenue sources and maintaining financial discipline in expenditure can further improve the financial position of the panchayat.
