Anuel Finance Statement- 2024-25
elukavu Grama Panchayat – Annual Financial Analysis Report (FY 2024–25)
1. Financial Performance Summary
During the financial year from 1 April 2024 to 31 March 2025, Melukavu Grama Panchayat demonstrated a stable financial performance.
| Item | Amount |
|---|---|
| Total Income | ₹8,09,06,058 |
| Total Expenditure | ₹8,05,01,528 |
| Gross Surplus | ₹4,04,530 |
| Net Surplus | ₹5,72,628 |
Assessment
- Since total income exceeded total expenditure, the Panchayat ended the financial year with a budget surplus.
- The net surplus of ₹5.73 lakh indicates sound financial management and expenditure control.
- The Panchayat was able to implement development projects and welfare activities without significant financial stress.
2. Revenue Structure Analysis
Major Sources of Revenue
| Revenue Head | Amount |
|---|---|
| Grants and Contributions | ₹7,56,71,162 |
| Tax Revenue | ₹39,54,656 |
| Fees and User Charges | ₹10,28,140 |
| Interest Income | ₹1,46,530 |
| Other Income | ₹1,04,570 |
Key Findings
1. Heavy Dependence on Grants
- Approximately 93.5% of total income comes from government grants and contributions.
- This reflects a financial structure that is highly dependent on state and central government funding.
2. Limited Own-Source Revenue
Breakdown of tax revenue:
| Tax Category | Amount |
|---|---|
| Residential Property Tax | ₹17,00,776 |
| Non-Residential Property Tax | ₹12,71,750 |
| Profession Tax | ₹9,82,130 |
Recommendation: The Panchayat should strengthen tax collection mechanisms and explore additional revenue-generating sources.
3. Expenditure Analysis
Development Expenditure
| Sector | Expenditure |
|---|---|
| Service Sector | ₹2,22,89,368 |
| Infrastructure Development | ₹96,94,680 |
| Poverty Alleviation | ₹94,65,454 |
| Productive Sector | ₹40,51,725 |
Sector-wise Assessment
Service Sector – Highest Investment
- The LIFE Mission Housing Scheme alone accounted for ₹1.09 crore.
- Significant investments were also made in:
- Anganwadi nutrition programmes
- Drinking water projects
- Sanitation initiatives
- Waste management systems
Infrastructure Development
- Road tarring: ₹43.5 lakh
- Road concreting: ₹28.3 lakh
- Street lighting and other public infrastructure improvements received substantial funding.
Productive Sector
- Financial support was provided for:
- Agriculture development
- Dairy farming
- Poultry distribution programmes
Increasing investment in this sector could contribute to employment generation and local economic growth.
4. Social Security and Welfare Expenditure
Welfare Pensions
| Item | Amount |
|---|---|
| Total Welfare Pensions | ₹2,19,31,000 |
This includes:
- Old-age pension: ₹1.45 crore
- Widow pension: ₹39.5 lakh
- Disability pension
- Agricultural labour pension
Assessment
A significant portion of expenditure was allocated to social security schemes, reflecting the Panchayat’s strong commitment to public welfare and vulnerable populations.
5. Administrative and Establishment Expenditure
| Item | Amount |
|---|---|
| Establishment Expenses | ₹1,04,23,568 |
| Administrative Expenses | ₹6,17,791 |
| Depreciation | ₹10,23,880 |
Observations
- Establishment expenses constitute approximately 13% of total expenditure.
- This level is generally considered reasonable for a local self-government institution.
- Administrative expenses remain relatively low compared to development spending.
6. Balance Sheet Analysis
Major Liabilities
| Liability | Amount |
|---|---|
| Reserves | ₹6,79,27,496 |
| Grants for Specific Purposes | ₹95,20,380 |
| KURDFC Loans | ₹1,11,77,520 |
| Panchayat General Fund | ₹(-1,83,91,348) |
Major Assets
| Asset | Amount |
|---|---|
| Fixed Assets | ₹16,50,939 |
| Service Sector Capital Assets | ₹3,06,54,668 |
| Infrastructure Capital Assets | ₹3,47,16,964 |
| Cash and Bank Balances | ₹1,14,93,220 |
Key Findings
Strengths
- Cash and bank balance of ₹1.14 crore.
- Significant investments in development-related assets.
- Strong reserve position.
Areas Requiring Attention
- The Panchayat General Fund remains negative at ₹1.84 crore.
- This may be attributable to accumulated expenditures and capital investments from previous years.
- Enhancing own-source revenue will be important for improving long-term fiscal sustainability.
7. Cash Flow Analysis
| Item | Amount |
|---|---|
| Opening Cash Balance | ₹91,54,257 |
| Closing Cash Balance | ₹1,14,93,220 |
| Net Increase in Cash | ₹23,38,963 |
Assessment
- Cash availability increased by ₹23.39 lakh during the year.
- The Panchayat maintains adequate liquidity to support ongoing operations and development activities.
- Improved cash reserves strengthen its ability to manage unforeseen expenditures.
Overall Assessment
Strengths
✔ Ended the year with a budget surplus
✔ Maintained a cash and bank balance of ₹1.14 crore
✔ Prioritized service-sector development, housing, and poverty alleviation programmes
✔ Successfully implemented welfare pension schemes
✔ Demonstrated improved liquidity and sound financial discipline
Challenges
⚠ Heavy dependence on government grants (93.5% of total income)
⚠ Limited own-source revenue generation
⚠ Negative balance in the Panchayat General Fund
⚠ Outstanding KURDFC loan liabilities
Recommendations
- Strengthen collection of property tax, profession tax, and license fees.
- Expand and improve digital tax collection systems.
- Invest in revenue-generating assets and local economic initiatives.
- Develop a structured strategy to gradually reduce loan liabilities.
- Increase investment in productive sectors such as agriculture, dairy development, and local entrepreneurship.
Conclusion
Overall, Melukavu Grama Panchayat maintained a stable financial position during FY 2024–25 while prioritizing public welfare and development initiatives. The Panchayat demonstrated prudent financial management, improved liquidity, and effective implementation of social welfare programmes. However, enhancing own-source revenue and reducing dependence on government grants will be crucial for achieving greater financial self-reliance and long-term fiscal sustainability.