Which organization released the 'Finances of Panchayati Raj Institutions' report that was recently mentioned in the news?
RBI
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Key findings are highlighted in the RBI's report on the 'Finances of Panchayati Raj Institutions,' which examines data from 2.58 lakh Panchayats for the years 2020–2021 and 2022–2023. Because panchayats have limited internal revenue sources, such as property taxes, they rely largely (95%) on grants. Differences in devolution between states have an effect on socioeconomic results. One of the challenges in evaluating fiscal health is inconsistent data. Due to their narrow tax base, bureaucratic problems, and imprecise regulations, PRIs have difficulty raising local tax revenue. Grants from the federal and state governments are one source of income, and PRIs are able to impose taxes and fees.