1. Under the Karnataka Panchayat Raj Act, “Panchayat property” includes —
A) All movable and immovable properties vested in or acquired by a Panchayat
B) Only buildings
C) Private land
D) MLA office
Answer: A
Explanation: Panchayat property refers to assets owned, acquired, or vested in the Panchayat, including roads, wells, and tanks.
2. Panchayat property vests in —
A) The respective Panchayat body
B) The State Government
C) The Chief Executive Officer
D) The MLA of the area
Answer: A
Explanation: Properties within Panchayat jurisdiction are vested in that local body for public use.
3. Public roads, markets, tanks, and burial grounds in a village are considered —
A) Panchayat properties
B) Private properties
C) Urban assets
D) State department land
Answer: A
Explanation: Such properties are maintained and regulated by Gram Panchayats.
4. Panchayat properties are used for —
A) Public welfare and community services
B) Private business
C) Political rallies
D) Commercial construction only
Answer: A
Explanation: All Panchayat assets must be used for public benefit.
5. Ownership of common village lands (gomala) lies with —
A) Gram Panchayat
B) Revenue Department
C) Taluk Magistrate
D) Cooperative Society
Answer: A
Explanation: Village common lands are managed by the Gram Panchayat for grazing and community use.
6. Panchayat buildings include —
A) Office, libraries, health centres, and community halls
B) Police stations
C) Private shops
D) Banks
Answer: A
Explanation: Gram Panchayat maintains civic buildings for local administrative and welfare functions.
7. The authority responsible for maintaining Panchayat property records is —
A) Panchayat Secretary
B) MLA
C) Deputy Commissioner
D) Zilla Panchayat Member
Answer: A
Explanation: The Secretary keeps an asset register and ensures regular updating.
8. Disposal or transfer of Panchayat property requires —
A) Prior approval of the State Government or prescribed authority
B) MLA permission
C) Gram Sabha majority vote
D) Political clearance
Answer: A
Explanation: Public assets cannot be alienated without higher-level approval.
9. Unauthorized occupation of Panchayat land is —
A) An offence under the Panchayat Raj Act
B) Legal if small
C) Ignored
D) Controlled by police only
Answer: A
Explanation: Encroachment attracts penalties or eviction under law.
10. Leasing of Panchayat property must be done —
A) Through public auction or open tender
B) By private negotiation
C) Through MLA’s order
D) By lottery
Answer: A
Explanation: Transparency is mandatory in leasing public assets.
11. The rent or fee from Panchayat property is credited to —
A) Panchayat Fund
B) MLA account
C) State revenue
D) Cooperative bank
Answer: A
Explanation: All income from property belongs to the Panchayat Fund.
12. Damage to Panchayat property is punishable under —
A) Karnataka Panchayat Raj Act provisions
B) IPC Section 420
C) Cooperative Act
D) Labour Law
Answer: A
Explanation: Misuse or damage of public property invites legal action.
13. Panchayat tanks, wells, and public ponds are maintained for —
A) Public use and irrigation
B) Private fisheries only
C) Political campaigns
D) Commercial purposes
Answer: A
Explanation: Such community assets serve both domestic and agricultural needs.
14. Gram Sabha can recommend the use of Panchayat property for —
A) Public purposes beneficial to the entire community
B) Private house construction
C) Industrial lease
D) Party offices
Answer: A
Explanation: Gram Sabha ensures community participation in decisions on public assets.
15. Responsibility for upkeep and safety of Panchayat assets rests with —
A) Panchayat Secretary and Adhyaksha
B) Taluk Magistrate
C) MLA
D) Village Accountant
Answer: A
Explanation: Both administrative and elected heads share this responsibility.
16. Gram Panchayat can construct new buildings on its land —
A) With approval and budget allocation
B) Without any plan
C) Using private loans
D) With MLA consent only
Answer: A
Explanation: All capital works require technical and financial sanction.
17. Panchayat land can be temporarily leased for —
A) Public fairs, festivals, or markets
B) Private residential colonies
C) Urban development
D) Political purposes
Answer: A
Explanation: Temporary use of public land is allowed for community events.
18. A register of immovable properties of the Panchayat must include —
A) Description, location, extent, value, and use
B) Political notes
C) Tax arrears
D) Election details
Answer: A
Explanation: Asset registers record all vital details for audit and accountability.
19. Panchayat properties are classified as —
A) Movable and immovable assets
B) Private and leased
C) Political and non-political
D) Revenue and expenditure
Answer: A
Explanation: Classification helps in record keeping and valuation.
20. Public markets and slaughterhouses under Panchayats are maintained for —
A) Sanitation, revenue, and regulation
B) Urban competition
C) MLA office
D) Private business
Answer: A
Explanation: They ensure clean and lawful trade within villages.
21. Encroachment on Panchayat land is removed by —
A) Executive Officer or authorized official
B) Police
C) MLA
D) Gram Sabha
Answer: A
Explanation: The EO can issue notices and enforce eviction.
22. Panchayat assets are inspected periodically by —
A) Zilla Panchayat or Taluk Panchayat officials
B) Election Commission
C) Urban department
D) Private firm
Answer: A
Explanation: Supervision ensures assets are not misused or encroached upon.
23. Panchayat may earn income from its properties by —
A) Leasing, renting, or collecting user fees
B) Selling without permission
C) Donations only
D) None
Answer: A
Explanation: Property income supplements the Panchayat Fund.
24. The term “vested property” means —
A) Property legally transferred to the Panchayat for management
B) Private donation
C) Temporary usage
D) Political grant
Answer: A
Explanation: Vested properties remain under Panchayat control for local benefit.
25. Control and supervision of Panchayat property ultimately rest with —
A) State Government through RDPR Department
B) Chief Minister
C) High Court
D) Private contractor
Answer: A
Explanation: The RDPR monitors lawful use of public assets by Panchayats.
26. The financial resources of a Panchayat are consolidated into —
A) Panchayat Fund
B) MLA Constituency Fund
C) Central Pool Fund
D) District Treasury only
Answer: A
Explanation: All receipts such as taxes, fees, grants, rents, and donations are credited to the Panchayat Fund.
27. The Panchayat Fund is maintained under the control of —
A) Adhyaksha and Panchayat Secretary
B) MLA
C) Deputy Commissioner
D) Gram Sabha directly
Answer: A
Explanation: The elected head and Secretary jointly manage the Panchayat Fund as per financial rules.
28. Section 205 of the Karnataka Panchayat Raj Act, 1993 relates to —
A) Constitution of the Panchayat Fund
B) Conduct of elections
C) Appointment of staff
D) Gram Sabha meetings
Answer: A
Explanation: Section 205 defines the sources and composition of the Panchayat Fund.
29. The Panchayat Fund includes —
A) Taxes, fees, fines, rents, and grants
B) Police collections
C) MLA allowances
D) Urban tolls
Answer: A
Explanation: It is a consolidated fund of all local receipts and government assistance.
30. The Panchayat Fund is kept in —
A) A scheduled or cooperative bank approved by the State Government
B) Private accounts
C) Cash box
D) MLA’s account
Answer: A
Explanation: To ensure accountability, all funds must be maintained in authorized bank accounts.
31. Withdrawals from the Panchayat Fund can be made only by —
A) Adhyaksha or Secretary as per financial sanction
B) MLA
C) Any member
D) Contractor
Answer: A
Explanation: Authorized officers can withdraw money following budget approval.
32. The Panchayat Fund is used for —
A) Public welfare and developmental expenditure
B) Private construction
C) Political expenses
D) Urban projects
Answer: A
Explanation: It supports local governance, rural infrastructure, and basic services.
33. Grants from the State and Central Governments form part of —
A) Panchayat Fund
B) Consolidated Fund of India
C) MLA Fund
D) Private donation
Answer: A
Explanation: Grants received by Panchayats are merged into the Panchayat Fund.
34. All receipts and payments of Panchayat are entered in —
A) Cash Book and Receipt Registers
B) MLA register
C) Court book
D) Treasury roll
Answer: A
Explanation: The Secretary maintains these accounts under the supervision of the Adhyaksha.
35. The financial year of the Panchayat is —
A) 1st April to 31st March
B) 1st January to 31st December
C) 1st June to 30th May
D) 1st October to 30th September
Answer: A
Explanation: Panchayats follow the same fiscal year as the Government.
36. Surplus funds of the Panchayat may be —
A) Deposited in savings or fixed deposit accounts in approved banks
B) Donated privately
C) Used for political campaigns
D) Kept in cash
Answer: A
Explanation: Idle balances may earn interest if safely invested.
37. The Custodian of Panchayat Fund records is —
A) Panchayat Secretary
B) MLA
C) Zilla Panchayat Member
D) Gram Sabha
Answer: A
Explanation: The Secretary maintains accounts and ensures entries are verified and audited.
38. The Adhyaksha is personally responsible for —
A) Proper financial administration of Panchayat
B) Political party management
C) Judicial work
D) Audit report writing
Answer: A
Explanation: Adhyaksha ensures that all expenditures conform to rules and budget allocations.
39. The Panchayat budget is prepared by —
A) Secretary in consultation with Adhyaksha
B) MLA
C) Taluk Panchayat
D) Police Department
Answer: A
Explanation: The Secretary drafts the annual budget for approval by the Panchayat and Gram Sabha.
40. The Panchayat budget becomes operative only after approval by —
A) Gram Sabha
B) MLA
C) District Collector
D) Chief Minister
Answer: A
Explanation: Gram Sabha’s approval ensures democratic participation and financial transparency.
41. Audit of Panchayat Fund is conducted by —
A) Local Fund Audit Department
B) Police
C) Election Commission
D) Urban Development Board
Answer: A
Explanation: The LFA Department verifies correctness and legality of accounts.
42. Unspent grants at the end of financial year must be —
A) Revalidated or refunded to the Government
B) Used for personal purpose
C) Cancelled
D) Written off
Answer: A
Explanation: Grants cannot be diverted or retained without approval.
43. The main sources of Panchayat Fund are —
A) Local taxes, fees, fines, rents, grants and loans
B) Police funds
C) Political collections
D) Judicial deposits
Answer: A
Explanation: These constitute the recurring and capital receipts of Panchayat.
44. Panchayat Fund expenditure must align with —
A) Approved budget and State financial rules
B) Political needs
C) MLA preferences
D) Private business interests
Answer: A
Explanation: All payments must have prior sanction and budget provision.
45. Utilization Certificates (UCs) for grants are sent to —
A) RDPR Department / Zilla Panchayat CEO
B) MLA
C) Police Station
D) State Bank
Answer: A
Explanation: UCs confirm lawful and efficient utilization of government grants.
46. Financial irregularities in Panchayat Fund may lead to —
A) Departmental enquiry and recovery
B) Dismissal of MLA
C) Political warning
D) No action
Answer: A
Explanation: Misuse of funds attracts strict disciplinary and legal action.
47. Panchayat Fund accounts must be —
A) Maintained under the Double-Entry System
B) Written in plain paper
C) Maintained orally
D) Not maintained at all
Answer: A
Explanation: Double-entry accounting improves accuracy and audit compliance.
48. Receipts and payments of Panchayat are classified as —
A) Revenue and Capital
B) Private and Political
C) Administrative and Judicial
D) Temporary and Permanent
Answer: A
Explanation: Revenue receipts are regular, capital receipts relate to development projects.
49. The State Government or Zilla Panchayat may inspect Panchayat accounts to —
A) Ensure legality and financial discipline
B) Interfere politically
C) Increase taxes
D) Halt projects
Answer: A
Explanation: Higher authorities supervise Panchayat finances for compliance and transparency.
50. The overall purpose of maintaining a Panchayat Fund is —
A) To ensure financial autonomy and accountability at the grassroots
B) To centralize revenue
C) To collect political funds
D) To finance urban industries
Answer: A
Explanation: Panchayat Funds form the foundation of decentralized democratic governance and rural development.
51. The primary objective of maintaining the Panchayat Fund is —
A) To ensure proper financial management for local development
B) To collect donations
C) To fund political campaigns
D) To run private businesses
Answer: A
Explanation: Panchayat Funds provide the financial base for decentralized governance and public welfare.
52. Expenditure from the Panchayat Fund requires —
A) Prior budget approval or administrative sanction
B) Verbal consent of Adhyaksha
C) MLA’s verbal direction
D) Informal discussion
Answer: A
Explanation: Every rupee spent must be pre-approved as per the budget or government order.
53. All Panchayat payments must be supported by —
A) Proper vouchers and receipts
B) Oral statements
C) Verbal approvals
D) Political certificates
Answer: A
Explanation: Proper documentation ensures audit compliance and transparency.
54. Grants-in-aid received from Government become part of —
A) Panchayat Fund
B) MLA Fund
C) Chief Minister’s Relief Fund
D) Police budget
Answer: A
Explanation: All receipts, including grants, are credited to the Panchayat Fund for utilization.
55. Financial assistance from the Government must be utilized —
A) Strictly for the purpose specified in the sanction order
B) For general expenses
C) At Adhyaksha’s discretion
D) To fund political offices
Answer: A
Explanation: Diversion of grant funds constitutes financial irregularity.
56. The authority responsible for preparing Utilization Certificates (UCs) is —
A) Panchayat Secretary
B) MLA
C) Police Officer
D) Contractor
Answer: A
Explanation: The Secretary compiles UCs and submits them to higher authorities via CEO/ZP.
57. Audit of Panchayat accounts is done —
A) Annually or as directed by the Local Fund Audit Department
B) Once every ten years
C) During elections only
D) Never
Answer: A
Explanation: Regular audits ensure accountability and detect misuse early.
58. The audit report of Panchayat accounts is submitted to —
A) Zilla Panchayat Chief Executive Officer (CEO)
B) MLA
C) Urban Development Department
D) Private firm
Answer: A
Explanation: The CEO ensures follow-up and rectification of audit objections.
59. The Local Fund Audit Department functions under —
A) State Government’s Finance Department
B) Panchayat Secretary
C) MLA Office
D) Private Consultants
Answer: A
Explanation: It audits all local bodies’ accounts including Panchayats.
60. Financial irregularities reported in audits must be —
A) Rectified or recovered within the prescribed time
B) Ignored
C) Politically discussed
D) Kept confidential
Answer: A
Explanation: Audit paras must be resolved promptly to maintain accountability.
61. Panchayat budgets must balance —
A) Income and expenditure
B) Revenue and losses
C) Tax and police costs
D) State and Union funds
Answer: A
Explanation: No Panchayat is permitted to plan a deficit budget.
62. Surplus funds in Panchayat accounts can be —
A) Reinvested for community development or kept as reserve
B) Distributed to members
C) Donated privately
D) Spent on non-public events
Answer: A
Explanation: Surplus must be used for long-term welfare projects.
63. Audit objections pending for more than one year must be —
A) Reported to the State Government through the CEO
B) Ignored
C) Handled by MLA
D) Transferred to next year’s accounts
Answer: A
Explanation: Escalation ensures higher-level intervention and correction.
64. Accountability in Panchayat finance is ensured through —
A) Audits, public disclosure, and Gram Sabha oversight
B) Political reviews
C) Private donations
D) Police supervision
Answer: A
Explanation: Democratic and institutional checks guarantee transparency.
65. Grants received under Central schemes like MGNREGA are —
A) Scheme-specific (tied) funds
B) General grants
C) MLA quota
D) Private investments
Answer: A
Explanation: These are conditional funds used only for targeted development programmes.
66. Panchayat expenditure exceeding budget allocation requires —
A) Supplementary grant approval from higher authority
B) Informal decision
C) Political consensus
D) Ignorance of rules
Answer: A
Explanation: Excess expenditure is allowed only after official approval.
67. Panchayats must maintain —
A) Books of accounts and property registers
B) Political pamphlets
C) Verbal reports
D) Private ledgers
Answer: A
Explanation: Accurate record keeping is vital for audits and grants management.
68. Transparency in Panchayat funds can be improved by —
A) Online accounting and public disclosure boards
B) Keeping records secret
C) Ignoring audits
D) Using private accounts
Answer: A
Explanation: E-governance strengthens financial transparency.
69. If misappropriation of funds is detected —
A) Recovery and disciplinary action must follow immediately
B) It is ignored after audit
C) It becomes MLA’s responsibility
D) It’s written off
Answer: A
Explanation: Strict recovery and penal action are mandatory for fund misuse.
70. Panchayats receive government grants through —
A) Zilla Panchayat and RDPR Department
B) Urban Development Board
C) Political parties
D) State Police
Answer: A
Explanation: Grants flow from State to District to Taluk and Gram Panchayats.
71. State Government may withhold grants if —
A) Accounts are not maintained properly or funds misused
B) Elections are postponed
C) MLA requests
D) Zilla Panchayat changes Adhyaksha
Answer: A
Explanation: Compliance with audit and accounts is a condition for grant release.
72. The Adhyaksha must present the Panchayat’s annual financial report to —
A) Gram Sabha
B) MLA
C) Deputy Commissioner
D) CEO only
Answer: A
Explanation: Gram Sabha discussions ensure transparency and citizen awareness.
73. The Gram Sabha has the power to —
A) Review and approve the annual statement of accounts
B) Enact tax laws
C) Conduct elections
D) Issue grants
Answer: A
Explanation: It is the ultimate forum of democratic accountability.
74. Financial assistance from the Government should be used for —
A) Public works and local development
B) Private gain
C) Political events
D) Industrial export
Answer: A
Explanation: The aim is to promote socio-economic welfare at grassroots.
75. Strong Panchayat financial systems lead to —
A) Efficient local governance and citizen trust
B) Centralization of power
C) Political corruption
D) Dependence on urban areas
Answer: A
Explanation: Sound financial management ensures sustainability and credibility of local governance.
76. The Panchayat Fund can be audited or inspected by —
A) State Government or any officer authorized by it
B) Private auditor chosen by Adhyaksha
C) Political committee
D) Only Gram Sabha
Answer: A
Explanation: The State Government has the ultimate authority to inspect or audit Panchayat accounts and properties.
77. The main purpose of the Panchayat Fund is —
A) To finance rural administration and local development works
B) To create profit
C) To support urban trade
D) To fund political events
Answer: A
Explanation: The Fund provides resources for essential services and community projects.
78. Panchayat properties such as tanks and wells are classified as —
A) Public properties under local self-government
B) Private assets
C) Judicial land
D) Industrial property
Answer: A
Explanation: They belong to the Panchayat and serve the community’s collective needs.
79. Which of the following forms part of the Panchayat’s immovable property?
A) Roads, drains, public buildings, grazing lands
B) Cash balance
C) Tools and vehicles
D) Office furniture only
Answer: A
Explanation: Immovable assets include all land and structures vested in the Panchayat.
80. Income from leasing Panchayat property is categorized as —
A) Non-tax revenue
B) Direct tax
C) Grant-in-aid
D) Judicial receipt
Answer: A
Explanation: Lease rents and service charges are non-tax sources of revenue.
81. State Government may assign Panchayats a share of —
A) Land revenue or other State taxes
B) Income tax
C) Customs duty
D) Union excise
Answer: A
Explanation: Assignment of local share of State taxes strengthens financial decentralization.
82. Any person damaging Panchayat property is liable to —
A) Pay compensation or face legal action
B) Pay voluntary donation
C) Report to MLA
D) Face suspension from Panchayat
Answer: A
Explanation: Damage or misuse of public property is punishable under the KPR Act.
83. Unused Panchayat property can be —
A) Leased temporarily for public benefit
B) Sold privately
C) Donated to political parties
D) Left idle indefinitely
Answer: A
Explanation: Temporary use is allowed if it benefits the public and earns revenue.
84. When a Panchayat property is misused or encroached upon —
A) Eviction proceedings are initiated by the Executive Officer
B) Adhyaksha sells it
C) MLA reassigns it
D) Police claim ownership
Answer: A
Explanation: The EO ensures legal eviction and restoration of Panchayat property.
85. Financial discipline in Panchayat administration means —
A) Proper budgeting, accounting, and auditing of all funds
B) Political control of expenditure
C) No audits
D) Random fund usage
Answer: A
Explanation: Discipline ensures efficient and transparent fund management.
86. The Adhyaksha is accountable for —
A) Correct utilization of all Panchayat resources
B) Judicial proceedings
C) Police actions
D) Urban projects
Answer: A
Explanation: The Adhyaksha ensures lawful use of Panchayat funds and assets.
87. The Panchayat’s revenue and expenditure statements are presented to —
A) Gram Sabha annually
B) District Collector
C) Political parties
D) Union Finance Ministry
Answer: A
Explanation: Gram Sabha review ensures democratic accountability and transparency.
88. If the Panchayat fails to maintain accounts properly, the State Government may —
A) Order audit, suspend grants, or take disciplinary action
B) Ignore the issue
C) Increase grants
D) Transfer the Secretary
Answer: A
Explanation: The State ensures financial compliance through supervision and penalties.
89. The Panchayat Fund is classified into —
A) Revenue Fund and Capital Fund
B) Judicial and Political Fund
C) Police and Welfare Fund
D) Urban and Rural Fund
Answer: A
Explanation: Revenue funds support routine expenses; capital funds cover infrastructure development.
90. Panchayat property or funds can be used only for —
A) Purposes authorized by the Panchayat Raj Act or approved schemes
B) Private functions
C) Political gatherings
D) Urban projects
Answer: A
Explanation: Expenditure must strictly adhere to statutory and budgetary provisions.
91. Donations or contributions from individuals to Panchayats —
A) Form part of the Panchayat Fund if accepted officially
B) Can be kept privately
C) Are disallowed
D) Must go to MLA office
Answer: A
Explanation: All accepted donations become public funds and are duly recorded.
92. The Panchayat’s fund management system must follow —
A) Karnataka Financial Code and Panchayat Financial Rules
B) Central Civil Code
C) Private accounting
D) MLA’s instructions
Answer: A
Explanation: State financial rules govern all Panchayat transactions.
93. Assets created under centrally sponsored schemes belong to —
A) The Panchayat concerned
B) Central Government
C) Contractor
D) MLA
Answer: A
Explanation: Once completed, such assets are vested in the local Panchayat.
94. Gram Sabha’s financial role includes —
A) Reviewing budgets, expenditure, and utilization reports
B) Approving appointments
C) Deciding election results
D) Approving MLA allowances
Answer: A
Explanation: Gram Sabha acts as the financial oversight body at the grassroots.
95. The audit of Panchayat Fund is important because —
A) It ensures transparency and prevents misuse of public money
B) It is a formality only
C) It delays projects
D) It benefits politicians
Answer: A
Explanation: Auditing promotes responsible governance and public trust.
96. Misappropriation of Panchayat funds is punishable under —
A) The Karnataka Panchayat Raj Act and Criminal Law
B) Urban Planning Act
C) Labour Law
D) Cooperative Act
Answer: A
Explanation: Legal provisions provide for recovery, suspension, and prosecution of offenders.
97. The Panchayat may invest its surplus funds —
A) In approved bank deposits for safety and interest
B) In private business
C) In election funding
D) Abroad
Answer: A
Explanation: Surplus funds must be kept secure in authorized banks.
98. Regular public display of Panchayat accounts improves —
A) Financial transparency and citizen participation
B) Political secrecy
C) Private income
D) Audit complexity
Answer: A
Explanation: Transparency ensures social audit and reduces corruption.
99. The ultimate control over Panchayat properties and funds lies with —
A) State Government through RDPR Department
B) MLA
C) Taluk Magistrate
D) Local contractors
Answer: A
Explanation: The RDPR Department enforces laws, inspections, and accountability mechanisms.
100. The ultimate aim of Panchayat property and fund management is —
A) Sustainable rural development through transparent local governance
B) Urban expansion
C) Political monopoly
D) Revenue centralization
Answer: A
Explanation: Proper management ensures decentralized growth and people-driven development.