2024-25
The Annual Financial Statement is an accurate and comprehensive financial record of all income received and expenditure incurred by a Grama Panchayat during a financial year (from April 1 to March 31). According to the Kerala Panchayat Raj Act, every Panchayat is legally mandated to prepare this statement at the close of each financial year.
Key Objectives
- Transparency and Accountability: It clearly demonstrates to the general public how government grants and the Panchayat's own funds have been utilized.
- Assessing Financial Stability: It helps to accurately evaluate the overall financial position, assets, and liabilities of the Panchayat.
- Future Planning: This document serves as the baseline for preparing the budget for the upcoming year and planning new developmental activities.
Main Components of the Statement
- Receipts and Payments Account: Contains complete details of the actual cash receipts received and cash payments made during the respective financial year.
- Income and Expenditure Account: A document reflecting the income and expenditure of that year, clearly indicating whether the Panchayat is running at a surplus or a deficit.
- Balance Sheet : A statement describing the Panchayat's assets (e.g., buildings, vehicles, bank balance) and liabilities (e.g., loans to be repaid, earmarked funds) at the end of the financial year (as of March 31).