Financial Crisis Hits Tribal Panchayat in Kerala Due to Grant Cuts
What happened
The tribal panchayat in Edamalakkudy, Kerala, is facing a financial crisis because its reliance on the State government’s General Purpose Grant (GPG) has been severely cut. The panchayat, which serves 2,236 people across 26 settlements, previously received ₹10 lakh to ₹12 lakh monthly but now receives only ₹87,500 per month. This reduction has resulted in 14 staff members and 14 panchayat members going without salaries or honorariums for six months.
From thehindu.com
Why it matters
The local body generates almost no internal revenue because tribal homes are exempt from property tax, making it dependent on the GPG for daily operations. The drastic reduction in funding is crippling the local body's ability to maintain essential administrative functions.
From thehindu.com