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Revenues of P.R.Institutions of Andhra Pradesh. Profile of Panchayats in Andhra Pradesh District Panchayats (Z.P)- 22 Intermediate Panchayats (MP)- 1098.

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Presentation on theme: "Revenues of P.R.Institutions of Andhra Pradesh. Profile of Panchayats in Andhra Pradesh District Panchayats (Z.P)- 22 Intermediate Panchayats (MP)- 1098."— Presentation transcript:

1 Revenues of P.R.Institutions of Andhra Pradesh

2 Profile of Panchayats in Andhra Pradesh District Panchayats (Z.P)- 22 Intermediate Panchayats (MP) Village Panchayats (GP)-21807

3 Panchayat Finance in Andhra Pradesh Under the provisions of AP PR Act1994,Only the Gram Panchayats are empowered to levy & collect taxes. The ZP/MP have no taxation powers. However the ZP/MP get some revenue through Rents/ Leases etc.

4 Panchayat Fund All the money received by PRIs. is constituted into Panchayat fund. Panchayat fund consists of 1. Own Revenues (Taxes & Non.Taxes etc.,) 2. Assigned Revenues (Transfer duty, Entertainment Tax) 3. Grants (Central & State) i) Untied grants (General purpose grants) ii) Tied grants (Specific purpose grants)

5 Revenue Structure of PRIs Own Revenue: a) Mandatory Taxes 1. House tax 2. Tax on Advertisement 3. Special taxes on Houses i. Drainage tax ii. Lighting tax iii. Water tax

6 b)Optional Taxes 1.Vehicle tax 2.Tax on Agricultural land 3. vacant land tax

7 c)Non-Taxes – Fees and Fines 1.Licence fee (Trades & Business) 2.Encroachment fee 3.Layout fee 4.Permission fee for Buildings 5.Monthly fee on Tap connections 6.Fines 7.Fishery Rentals 8.Ferry Rents

8 House tax House tax is levied on the basis of Annual Rental value or capital value basis Prior to general revision of house tax was done once in 5 years. From onwards house tax is increased at a flat rate of 5% every year.

9 Special Tax on Houses Gram Panchayats levy special taxes on houses, in the shape of water, drainage & lighting tax In addition to this 8 Ps in every rupee is collected towards library cess Library cess amount collected is transferred to Department of Libraries

10 Rates of Special Taxes Government has issued orders in 2002 for collection of actual expenditure on lighting, water etc., as to cover O&M cost as user charges. Nature of taxMaximum rateMinimum rate a)Water supply--20% b)Lighting tax10%5% c)Drainage tax15%10%

11 Rates of House Tax Buildings exempted from House Tax: Cattle Pounds Cattle Sheds Poultry Sheds Dairy Sheds Buildings of Union Government NGOs home Basis of levy Minimum Rate PA Maximum Rate PA On capital value basis (CV)1/8 % of CV1% of CV On annual rental value basis (ARV)2% of ARV20% of ARV

12 Advertisement Tax The advertisement tax is collected by the Gram Panchayats on every advertisement which is erected, exhibited or displayed to public view. This tax is not collected on any advertisement or notice relating to Public meeting Business of railway administration Election related matters

13 Rates of Advertisement Tax Sl. No. Particulars Maximum amount per annum 1Non illuminated: a.Space upto 1 Sq. Mtr4.50 b.For a space over 1.00 Sq. Mtr9.25 c.For every additional 2.50 Sq. Mtr or part thereof Illuminated: a.For a space upto 5.00 Sq.Mtrs32.50 b.For every additional 5.00 Sq.Mtrs In Rupees

14 Vehicle Tax Vehicle tax is collected by the Gram Panchayats on any kind of carriage, car, bicycle, rickshaw, etc., other than motor vehicles. The rates are indicated below. Description of VehicleMaximum TaxMinimum Tax Four-wheeled vehicle drawn by animals Two-wheeled vehicle drawn by animals Bicycle This tax is more in the nature of regulatory measure, rather than a revenue yielding sources In Rupees

15 Assigned revenues The assigned revenues of Panchayats are (2) types Tax revenue or revenue assignments Profession tax Entertainment tax Tax supplement or revenue sharing Surcharge on stamp duty Seigniorage fees Water cess

16 Profession tax Upto 1987 profession tax was collected by Gram Panchayats From 1987 profession tax is collected by commercial tax department 95% of profession tax collected is passed on the local bodies by making provision in PR budget The amount is distributed to Gram Panchayats on Per capita basis

17 Entertainment Tax Entertainment tax is collected under AP Entertainment Tax Act, % of the proceeds of tax collection is adjusted to Gram Panchayat, Mandal Parishads in the ratio of 60:40 of the 10% balance, 3% is credited to film development corporation and 7% is retained by Government as Estt. Charges

18 Surcharge on stamp duty PRIs are allowed Transfer duty (Surcharge on stamp on the value of transaction over and above stamp duty of 7% and registration fee of 0.5%. This transfer duty assigned to Gram Panchayat, Mandal Parishad and Zilla Parishads in the ratio of 60:20:20

19 Seigniorage fee Seigniorage fee (Cess on Minor Minerals) is collected by Mines & Geology department Sand Auctions are however being conducted at District level Seigniorage fee collected by Mines department is adjusted to State funds Seigniorage fee is released to Panchayat Raj Institutions through budgetary provision

20 The Apportionment is Zilla Parishad25% Mandal Parishad50% Gram panchayat 25% Seignior age fee is released only to those Gram Panchayats from where actual Mining was done

21 General purpose grants (Untied grants) 1. Per Capita Grant a) Zilla Rs.4/- b) Mandal Rs.8- c) Gram Rs.4/- 2. Incentive Grants for Tax collection 3 Incentive Grants for Unanimous Election

22 Grants – in -aid a) Salary grant b) Honorarium & TA to non officials c) Per Capita grant d) BRGF e) Central /State Finance Commission grant f) Engineering grants i) Rural Water Supply ii) Rural Sanitation iii) Roads & Bridges iv) School buildings etc.,

23 The General funds of PRIs consist of : a) Taxes & Non-Taxes. b) Assigned Revenues. c) General Purpose grants (Untied funds). General funds of PRIs.

24 Utilisation of General Funds The Zilla Parishad / Mandal parishad general funds are utilized for 1. Maintenance of existing Assets34% 2. Development of SCs15% 3. Development of STs 6% 4. Development of Women & Children15% 5. Office Administration16% 6. Drinking Water in emergencies 9% 7. Contingencies 4% Total:100%

25 Under the provisions of AP.PR Act, 1994 all the funds received by the Panchayats are to be lodged in the Govt. Treasury only. The funds are kept in separate deposit accounts under the head 8448-Deposits of Local Fund MH(109)-Panchayat funds SH(01)-G.P. funds SH(02)-M.P. funds SH(03)-Z.P. funds 001-General funds 002-Education funds 005-Spl.Development funds Lodging of funds:

26 The Panchayat funds lodged in Treasury are categorized as Lapsable funds and Non-lapsable funds. The General funds of PRIs are Non-lapsable. The Salaries and TA grants are lapsed in the same financial year. The specific purpose grants released during a financial year are available for utilisation till the end of next financial year. The Treasury authorities will credited back to Government the unspent balances as on 31 st March which are lapsed out of Lapsable grants. Categorization of funds at Treasury:

27 With effect from the grants meant for works programme in respect of Zilla Parishads are released to Pay & Accounts Officer. The accounts are maintained by the P.A.O. and bills are paid after pre-audit. However, the Receipts and Expenditure of Engineering grants are incorporated in the Budget and the Annual Accounts of Zilla Parishads. Z.P. Engineering funds:

28 Financial Statements The Executive Officer place before the General Body quarterly a statement of Financial position. This contains a. Balance under each Account b. The amount of outstanding bills pending payment c. The demand collection & balance of own revenues d. The amount of estimated expenditure for the remaining months of the year e. This will help the Panchayats to know its financial position and plan its activities.

29 AUDIT The statutory Auditor of Panchayat Raj Institutions is the Director State Audit The Statutory Auditor has the power to surcharge the loss for irregular payments against the officer responsible The Director of State Audi works under the Technical supervision and control of C & AG In addition to statutory audit the Accountant General also conduct Test Audit


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