2023-24 Annual Financial Statement
Annual Financial Statement (2023–24)
1. Introduction
This report analyzes the Annual Financial Statement (AFS) of Kodikulam Grama Panchayat for the financial year 2023–24. The objective is to assess the efficiency of administration by evaluating the Panchayat's revenue, expenditure, asset-liability position, development activities, and financial stability.
2. Financial Position
According to the Balance Sheet as of March 31, 2024, the Panchayat's total assets and liabilities amount to ₹5.57 crore. The Panchayat has ₹61.33 lakh in General Fund and ₹3.30 crore in Reserve Fund. Grants and funds for various specific purposes amount to ₹63.49 lakh and secured loans amount to ₹88.41 lakh.
The largest share of assets consists of capital investments in the infrastructure development sector. Capital assets worth approximately ₹2.96 crore have been created in infrastructure sectors such as roads, buildings, and electrification. The Panchayat also has a balance of ₹1.29 crore in bank accounts and cash.
3. Revenue Analysis
The Panchayat's total revenue for 2023–24 is ₹7.82 crore. The largest share of this, ₹7.28 crore, comes from government grants, welfare scheme funds, MGNREGS, and pension schemes. This means that more than 93 percent of the Panchayat's revenue depends on government assistance.
Revenue from its own sources is comparatively low. Tax revenue, including property tax and professional tax, amounts to ₹33.60 lakh, while service fees such as building permit fees and license fees amount to ₹16.55 lakh. Revenue from building construction permits alone is ₹11.96 lakh.
4. Expenditure Analysis
The total expenditure for the year is ₹8.05 crore. The highest expenditure was on development projects and the service sector. ₹1.96 crore was spent on service sector projects, ₹42.36 lakh on production sector projects, and ₹58.51 lakh on infrastructure development projects.
Establishment expenses, including employee salaries, allowances, and pension contributions, amount to ₹88.64 lakh. Administrative expenses amount to ₹10.50 lakh and operation and maintenance expenses amount to ₹7.29 lakh.
5. Evaluation of Development Activities
The Panchayat has made significant investments in agriculture, animal husbandry, education, healthcare, drinking water, sanitation, housing, and social security.
Major projects:
₹83.47 lakh for the LIFE Housing Scheme.
₹6.47 lakh for palliative care.
₹13.30 lakh for Ayurvedic hospitals.
₹10.53 lakh for milk production promotion.
₹7.25 lakh for the heifer rearing scheme.
₹15.94 lakh for Anganwadi nutrition schemes.
This indicates that the Panchayat's development activities are mainly focused on social welfare and basic services.
6. Financial Performance
As revenue was ₹7.82 crore while expenditure was ₹8.05 crore, the Panchayat recorded an operating deficit of ₹23.38 lakh. After including prior-period income-expenditure adjustments, the final deficit was ₹23.54 lakh. This shows that the Panchayat's expenditure exceeds its revenue.
7. Key Findings
Strengths
Strong bank balance of ₹1.29 crore.
Significant investment in development activities.
Good spending in housing, healthcare, and social security sectors.
Effective utilization of government funds on a large scale.
Areas of concern
The Panchayat's own revenue is low.
Loan liability of ₹88.41 lakh remains.
An annual deficit of ₹23.54 lakh was recorded.
Revenue collection from property tax, rent, license fees, and other sources needs to be further strengthened.
8. Conclusion
During 2023–24, Kodikulam Grama Panchayat has demonstrated notable performance in development and welfare activities. However, the Panchayat's financial stability is highly dependent on government grants. Increasing its own revenue sources, recovering arrears, and reducing the loan burden can help achieve greater financial self-reliance in the future. Although the current financial position is generally satisfactory, increasing revenue and controlling expenditure should be the key priorities for the future.
