95% Panchayat's revenue from grants, should cut dependence: RBI

The Reserve Bank of India (RBI) on Wednesday said around 95% of Panchayat's revenue is taken from government grants. "It would be prudent for the Panchayats to reduce their heavy dependence on grants by deploying the tax and non-tax instruments available to them to raise resources," it said in its report titled 'Finances of Panchayati Raj Institutions'.