Gram Panchayats In AP Set National Benchmark By Collecting 80% Revenue
27 April 2026 1:37 AM IST27 April 2026 1:37 AM IST
This has enabled them to establish a national benchmark in rural fiscal management.
VIJAYAWADA: In a remarkable effort towards financial self-reliance and strengthening grassroots governance, over 13,000 gram panchayats in Andhra Pradesh have collectively achieved a record by collecting nearly 80 per cent of their own source revenue (OSR) during the 2025–26 financial year.
This has enabled them to establish a national benchmark in rural fiscal management.
According to official data, panchayats across the 26 districts of AP generated a total demand of about ₹1,285 crore. They collected over ₹1,000 crore, registering an impressive 78.91 per cent collection efficiency. This performance places Andhra Pradesh among the leading states in empowering local bodies to mobilise internal resources effectively.
The revenue includes both tax and non-tax components, such as property tax, water tax, drainage, and lighting cess, along with income from trade licences, cell tower renewals, and auctions. Officials attribute AP’s achievement to a combination of administrative reforms, digital interventions, and sustained capacity-building initiatives.
The good performance is being credited to the leadership of Deputy Chief Minister K. Pawan Kalyan, who heads the Panchayat Raj and Rural Development department. His focused efforts have transformed gram panchayats into self-sustaining institutions. His emphasis on transparency, accountability, and decentralised governance have played a key role in achieving these results within a short span.
Digital initiatives, such as the “Samarth” portal, have significantly improved revenue collection by enabling seamless online payments and real-time monitoring. Structured training programmes and improved oversight mechanisms have enhanced operational efficiency at the grassroots level.
AP’s performance is reflected in its top national ranking under the Rashtriya Gram Swaraj Abhiyan (RGSA). Further, the state has secured leading positions in Good Governance and Women-Friendly Panchayat categories, highlighting its inclusive administrative approach.
These achievements have come after the 13,326 panchayats spent over ₹4,500 crore on development works through participatory planning. Infrastructure development has complemented fiscal reforms, with ₹3,853 crore invested in constructing 6,000 km of CC roads and 1,331 km of BT roads, besides improving connectivity in tribal areas.
Administrative efficiency has been strengthened through the promotion of over 10,000 officials, injecting renewed momentum into rural governance.
Sanitation initiatives, such as “Magic Drains” and “Swachh Rathas” have enhanced cleanliness and awareness, while livelihood programmes under VB – G RAM G have supported farmers through the creation of durable assets, including farm ponds and livestock sheds.
Analysts say the state’s progress aligns with the Finance Commission’s recommendations emphasising the need for local bodies to augment their own resources.
Incentive schemes, like the Atma Nirbhar Panchayat Special Award, have further motivated panchayats to maximise revenue generation.
Top Performing Districts in Revenue Collection (₹ Crore)
District demand / collection
East Godavari 128.46 / 91.35
Kakinada 102.26 / 65.48
Krishna 90.93 / 77.60
Tirupati 78.00 / 69.64
West Godavari 67.98 / 62.84
Revenue Performance:
Total Panchayats: 13,000+
Total Demand: ₹1,285 crore
Total Collection: ₹1,000+ crore
Collection Efficiency: 79%
Revenue Sources:
Taxes (Property, Water, Drainage): 60%
Non-Taxes (Licences, Fees, Auctions): 40%
According to official data, panchayats across the 26 districts of AP generated a total demand of about ₹1,285 crore. They collected over ₹1,000 crore, registering an impressive 78.91 per cent collection efficiency. This performance places Andhra Pradesh among the leading states in empowering local bodies to mobilise internal resources effectively.
The revenue includes both tax and non-tax components, such as property tax, water tax, drainage, and lighting cess, along with income from trade licences, cell tower renewals, and auctions. Officials attribute AP’s achievement to a combination of administrative reforms, digital interventions, and sustained capacity-building initiatives.
The good performance is being credited to the leadership of Deputy Chief Minister K. Pawan Kalyan, who heads the Panchayat Raj and Rural Development department. His focused efforts have transformed gram panchayats into self-sustaining institutions. His emphasis on transparency, accountability, and decentralised governance have played a key role in achieving these results within a short span.
Digital initiatives, such as the “Samarth” portal, have significantly improved revenue collection by enabling seamless online payments and real-time monitoring. Structured training programmes and improved oversight mechanisms have enhanced operational efficiency at the grassroots level.
AP’s performance is reflected in its top national ranking under the Rashtriya Gram Swaraj Abhiyan (RGSA). Further, the state has secured leading positions in Good Governance and Women-Friendly Panchayat categories, highlighting its inclusive administrative approach.
These achievements have come after the 13,326 panchayats spent over ₹4,500 crore on development works through participatory planning. Infrastructure development has complemented fiscal reforms, with ₹3,853 crore invested in constructing 6,000 km of CC roads and 1,331 km of BT roads, besides improving connectivity in tribal areas.
Administrative efficiency has been strengthened through the promotion of over 10,000 officials, injecting renewed momentum into rural governance.
Sanitation initiatives, such as “Magic Drains” and “Swachh Rathas” have enhanced cleanliness and awareness, while livelihood programmes under VB – G RAM G have supported farmers through the creation of durable assets, including farm ponds and livestock sheds.
Analysts say the state’s progress aligns with the Finance Commission’s recommendations emphasising the need for local bodies to augment their own resources.
Incentive schemes, like the Atma Nirbhar Panchayat Special Award, have further motivated panchayats to maximise revenue generation.
Top Performing Districts in Revenue Collection (₹ Crore)
District demand / collection
East Godavari 128.46 / 91.35
Kakinada 102.26 / 65.48
Krishna 90.93 / 77.60
Tirupati 78.00 / 69.64
West Godavari 67.98 / 62.84
Revenue Performance:
Total Panchayats: 13,000+
Total Demand: ₹1,285 crore
Total Collection: ₹1,000+ crore
Collection Efficiency: 79%
Revenue Sources:
Taxes (Property, Water, Drainage): 60%
Non-Taxes (Licences, Fees, Auctions): 40%
( Source : Deccan Chronicle )
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