PANCHAYAT RAJ FINANCES IN ANDHRA PRADESH: A MACRO VIEW.

In all the three tiers of Panchayat Raj Institutions (PRIs), salaries and wages constitute a major share of current expenditure, while construction is under the category of capital expenditure. PRIs are not in a position to provide even basic minimum facilities, leave alone carrying out the developmental activities. Though the State Government has appointed the State Finance Commission, following the 73rd Constitutional Amendment, its attitude in not even giving the hint of progress towards the full-fledged fiscal decentralisation is abhorred. On the other hand, the Gram Panchayats (GPs) are not taxing even the available revenue sources to augment their own resources, thus depriving the Mandal Parishads (MPs) and Zilla Parishads (ZPs) of the facility to impose surcharge on the taxes levied by the GPs. Employment-oriented activities, which in turn generate tax-paying capacity in the rural people and tax-levying opportunity in the GPs subsequently to MPs and ZPs, can be thought of by the GPs to improve their financial position. [ABSTRACT FROM AUTHOR]