Explanation –

Statements 1 and 3 are correct. The Gram Sabha is the smallest and the only permanent unit in the Panchayati Raj system. It is a village assembly consisting of all adult residents of a village or a group of villages. The Gram Sabha serves as the foundation of the Panchayati Raj system and plays a crucial role in decision-making, planning, and implementation of various development programs at the village level. Tax collection by panchayats decreased from ₹3,12,075 lakh in 2018-19 to ₹2,71,386 lakh in 2021-2022.

Statement 2 is incorrect. Block Panchayats do not hold elections for the Panchayat Samiti council seats. Rather, the block council consists of all of the Sarpanchas and the Upa Sarpanchas from each Gram Panchayat along with members of the legislative assembly (MLA), members of parliament (MPs), associate members (like a representative from a cooperative society) and members from the Zilla Parishad who are a part of the block. The Gram Panchayat members nominate their Sarpanch and Upa Sarpanch amongst their ranks, which extend to the selection of the chairperson and vice-chairperson as well. The Executive Officer (EO) is the head of the administration section of the Panchayat Samiti.

Source: Forum IAS