2022-223 Budget Report
Kodikkulam Grama Panchayat
2022–23 Budget Analysis Report
1. General Financial Position
According to the 2022–23 budget, the total revenue of the panchayat is ₹7,21,36,100. Including the opening balance, the total available amount is estimated at ₹7,43,74,914.
The total expenditure is ₹7,35,31,800. After all expenditures, an ending balance of ₹8,43,114 is expected to remain.
Item
2022–23 Budget
Opening Balance
₹22,38,814
Total Revenue
₹7,21,36,100
Revenue + Opening Balance
₹7,43,74,914
Total Expenditure
₹7,35,31,800
Expected Ending Balance
₹8,43,114
2. Revenue Analysis
Own Fund
The panchayat's own revenue, including tax, non-tax revenue and the General Purpose Fund, is ₹1,05,65,500.
Tax Revenue – ₹32,50,000
Non-tax Revenue – ₹8,32,500
General Purpose Fund – ₹64,83,000
Tax Revenue
The major tax revenues in 2022–23 are:
Property Tax – ₹23,00,000
Profession Tax – ₹9,50,000
Total tax revenue is ₹32.50 lakh.
Non-tax Revenue
Non-tax revenue is ₹8.325 lakh. The major items are:
Permit Fees – ₹1.35 lakh
Form Sales – ₹1.65 lakh
Interest from Investments – ₹1.80 lakh
License Fees – ₹0.62 lakh
Fines and Penalties – ₹0.75 lakh
Rental Income – ₹0.55 lakh
3. Grants and Financial Assistance
In 2022–23, the major sources of revenue for the panchayat are various grants.
Plan Revenue Grant – ₹3,10,02,850
Non-plan Grant – ₹1,45,50,600
General Purpose Fund – ₹64,83,000
Government grants play a major role in the financial activities of the panchayat. Therefore, taking measures to increase own revenue would help achieve financial self-reliance.
4. Analysis of Plan Expenditure
The plan revenue expenditure for 2022–23 is ₹3,10,05,000.
Sector-wise Plan Allocation
Sector
Allocation
Production Sector
₹27,50,000
Service Sector
₹2,39,05,000
Infrastructure Sector
₹30,00,000
Projects not included under sectoral classification
₹13,50,000
Total
₹3,10,05,000
The service sector has the highest allocation — approximately 77.1%.
Production Sector
Major allocations:
Paddy Cultivation – ₹10 lakh
Dairy Development – ₹5 lakh
Cattle Rearing – ₹5 lakh
Goat Rearing – ₹2.50 lakh
Poultry/Duck Rearing – ₹2.50 lakh
Fish Farming – ₹1.50 lakh
Revolving Fund for Kudumbashree Employment Enterprises – ₹1 lakh
This indicates that importance has been given to livelihood sectors such as agriculture, animal husbandry, dairy development and Kudumbashree.
5. Service Sector
₹2.3905 crore has been allocated for the service sector.
Major items:
Poverty Alleviation Programmes – ₹1.50 crore
Housing Construction – ₹20 lakh
Drinking Water – ₹12 lakh
Sanitation – ₹12.58 lakh
Anganwadi Nutrition – ₹11 lakh
Medicines – ₹8 lakh
Public Health Programmes – ₹5 lakh
SC Welfare – ₹4.62 lakh
Repayment of Housing/Housing Electrification Loans – ₹5.60 lakh
Anganwadi Infrastructure – ₹3 lakh
The allocation of ₹1.50 crore for the poverty alleviation programme is the most significant component of the service sector.
6. Infrastructure Development
₹30 lakh has been allocated to the infrastructure sector.
Roads – ₹20 lakh
Bylanes – ₹2.50 lakh
Footbridges – ₹2.50 lakh
PMGSY – ₹5 lakh
Attention has been given to improving transportation facilities and road infrastructure in the grama panchayat.
7. Essential Revenue Expenditure
Essential/Statutory Revenue Expenditure is ₹1,19,32,200.
The largest component of this is employee-related expenditure.
Salary – ₹70 lakh
Honorarium of Elected Representatives – ₹15 lakh
Pension Contribution – ₹8.20 lakh
Wages – ₹1.45 lakh
Other expenses including travel allowance and other benefits
Employee-related expenses alone amount to ₹1.008 crore. Therefore, a large portion of essential expenditure is spent on institutional/staff expenses.
8. Capital Expenditure
₹1,60,44,000 has been allocated for capital expenditure excluding loan repayment.
Major items:
Capital Item
Allocation
Culverts, Bridges and Related Constructions
₹78.50 lakh
Roads
₹57.94 lakh
Buildings
₹12.50 lakh
Bylanes
₹5 lakh
Drinking Water Sources
₹1.50 lakh
Waste Management
₹1.50 lakh
Movable Assets
₹1.50 lakh
Other Fixed Assets
₹2 lakh
Culverts, bridges and related constructions and roads receive the main priority in capital expenditure.
A notable feature of the budget is that there is no revenue from taking loans and no expenditure for loan repayment in 2022–23.
9. Comparison with the Previous Year
Compared with the 2021–22 revised budget, in 2022–23:
Total revenue decreased from ₹8.26 crore to ₹7.21 crore.
Plan grant decreased from ₹4.86 crore to ₹3.10 crore.
Non-plan grant increased from ₹1.25 crore to ₹1.46 crore.
Capital revenue increased from ₹1.04 crore to ₹1.60 crore.
Capital expenditure increased from ₹1.0455 crore to ₹1.6044 crore.
The ending balance decreased from ₹22.39 lakh to ₹8.43 lakh.
This shows that although greater importance was given to capital development activities in 2022–23, the total available revenue has decreased compared with the previous year.
10. Investment/Deposit Receipts
In 2022–23, deposit receipts and repayments have each been budgeted at ₹6 lakh.
Major items:
Earnest Money Deposit – ₹2 lakh
Security Deposit – ₹1.50 lakh
Other Deposits – ₹2 lakh
Recovery from Work Bills – ₹0.50 lakh
11. Major Findings
Total budget size: Approximately ₹7.44 crore (including opening balance).
Total expenditure: Approximately ₹7.35 crore.
Expected ending balance: ₹8.43 lakh.
The service sector is the major sector in plan expenditure.
There is a large allocation of ₹1.50 crore for poverty alleviation.
There is significant capital investment in infrastructure development such as roads, bridges and culverts.
Since own tax revenue is only ₹32.50 lakh, dependence on government grants is high.
Employee salaries and other institutional expenses play a major role in essential expenditure.
No new loan revenue has been included in the budget for 2022–23.
As revenue has decreased compared with the previous year, expenditure control and increasing own revenue are important.
Conclusion
The 2022–23 budget of Kodikkulam Grama Panchayat is a budget that prioritizes social welfare, poverty alleviation, drinking water, sanitation, housing, health services, and infrastructure development including roads and bridges. In particular, the allocation of ₹2.39 crore to the service sector and ₹1.50 crore for poverty alleviation are noteworthy.
At the same time, since own tax/non-tax revenue is comparatively low, improving tax collection efficiency, increasing non-tax revenue sources, and ensuring the effective utilization of government grants are necessary to enhance the financial stability of the panchayat.
