Tax collections at panchayat level are extremely low, which is posing a challenge to fiscal federalism and accountability, the Economic Survey said today. Low level of tax collections by local governments in rural areas is posing challenge in reconciling fiscal federalism and accountability, the Economic Survey 2017-18 tabled by Finance Minister Arun Jaitley in Parliament said. Panchayats received 95 per cent of their revenues from the devolved funds from the centre/state, while generating only 5 per cent from own resources, it said.