The correct option is (c) 2 and 3 only.
Explanation
Under the 73rd Constitutional Amendment Act, 1992, the financial autonomy of Panchayati Raj Institutions is secured through Article 243H. This provision empowers State Legislatures to authorize Panchayats to levy taxes and receive grants-in-aid. The funding structure is a mix of internal revenue generation and external transfers.
Statement-wise Analysis:
- Statement 1 is Incorrect: The Gram Panchayat does not receive funds solely from local taxation. While it has the power to levy certain taxes (e.g., property tax, tax on fairs), a major portion of its resources comes from grants-in-aid from the State and Central Governments (based on Finance Commission recommendations) and loans.
- Statement 2 is Correct: Panchayats serve as the implementing agencies for various Central and State Government schemes (e.g., MGNREGA, PMAY-G). Consequently, they receive tied and untied funds routed through various government departments to execute these developmental projects.
- Statement 3 is Correct: Gram Panchayats are authorized to accept donations and voluntary contributions from the community, non-governmental organizations, or individuals for specific community works and developmental activities.
Key Takeaway:
The sources of funds for a Gram Panchayat include: (1) Own source revenue (taxes, duties, fees), (2) Grants from State and Central Finance Commissions, (3) Funds for implementation of schemes, and (4) Donations/contributions.