Karnataka gram panchayats achieve 89% of target tax collection

As many as 5,943 gram panchayats across Karnataka have achieved a higher tax collection and revenue realisation in 2025–26 compared to the previous financial year.

The Department of Rural Development and Panchayat Raj reported a total tax collection of ₹1,382.57 crore in 2025–26, marking an increase of ₹110.04 crore over the ₹1,272.54 crore collected in 2024–25. This turns out to a record 89% realisation of the current demand, the highest in recent years.

Rural Development and Panchayat Raj Minister Priyank Kharge said Karnataka had previously secured the top position at the national level in tax collection and revenue mobilisation with respect to village panchayats, and the continued upward trend highlights the impact of “efficient administration, strict enforcement of regulations, and strengthened tax collection mechanisms.”

In 2024–25, gram panchayats, for the first time in the department’s history, collected ₹1,272.54 crore, achieving 80% of the demand.

Building on this momentum, the State has further improved performance in 2025–26, reaching a record 89%, stated an official release.

Referring to performance by different districts, the Minister noted that Raichur district recorded an exceptional 129% tax collection, while 11 districts achieved over 100% collection.

This achievement has been driven by extensive awareness campaigns, targeted tax collection drives, and the sustained efforts of officials at all levels — from gram panchayat bill collectors to senior administrators, Mr. Kharge said.

“Our focus over the past few years has been on improving systems, ensuring accountability, and empowering local bodies to enhance their own revenue capabilities. It is encouraging to see that every rupee collected is being reinvested into village infrastructure, public services, and local development. This is laying a strong foundation for inclusive and sustainable rural growth,” the Minister said.