Objectives: (1) Compare and contrast the status of Self Economic Dependency Ratio (SEDR) in between two ideologically different political set up of fifteen select GPs in the district of Bankura in West Bengal. (2) Panel data regression analysis was carried out to unravel and explain, if possible, the variations of Self Economic Dependency Ratio ( SEDR) by the select Politico- Socio-Economic factors of the select village Panchayats, (2) and also to understand the relationship , if any, between the Grants-in-aid and the Self Economic Dependency Ratio (SEDR) of the Village Panchayats under study for verifying the existing literatures about the relationship between Grants-in-aid and Own Source Revenue (OSR) / economic development albeit with an alternative indicator namely, Self-Economic Dependency Ratio(SEDR) and finally (4) prescribing ways and means especially to the Government of West Bengal for bringing about more participatory and inclusive in nature traits into the system of Panchayat financing.
Methodology: In addition of conventional Desk research, field survey, Interview and Focus Group Discussions use of Panel data regression analysis with suitably chosen models using both STATA and SPSS software were meticulously used to arrive at important observations at the end.
Findings: In majority sample Panchayats (53.33%) growth rates in Total expenditure during the TMC ruled government became negative which was one of the important reasons for higher self-economic dependency ratio during the TMC ruled government in comparison to the Left front led government. On the issue of self-economic dependency ratio as an important indicator for strengthening own source revenue generation capacity to meet their own basic needs or as a signal of improvement in gram Panchayat finance has been witnessing marginal improvement over time and the change in political set up could only alter the situation marginally.Our panel data regression analysis found that SEDRs were negatively influenced by the percentage of Below Poverty Line Households and positively by the Political regimes. Thus a sign of improvement in terms of own source revenue generation capacity of the select village Panchayats was at least ushered in during the TMC ruled government. The relation between SEDR and Grants-in-aid was found to be negative and significant. Thus result (significant negative relation between SEDR and Grants-in-aid) did not support the earlier findings in the literature of Panchayat financing.
Application/Improvement: Using Panel data regression analysis to explain the variations of Self Economic Dependency Ratio (SEDR) by the select Politico- Socio-Economic Indicators, if any, of the select village Panchayats was undoubtedly a significant departure from the earlier studies. Elaborative study on the nature and pattern of own resource mobilization, Total expenditure and finally via an alternative and more effective indicator namely, Self-Economic Dependency Ratio (SEDR) under ideologically different political dispensations was also another distinctive feature of the study.