Abstract
Every government needs resources to run the country. In an agrarian economy like Pakistan collection of revenue from landed property becomes more significant. Land revenue generated from the landed property used to be the main source of revenue in the united Punjab during colonial era. That era witnessed unprecedented rise in revenue by means of digging up a network of an extensive canal system from rivers thereby rendering vast plains of Punjab cultivable. However, it is noted that this quite efficient and effective system of collection of land revenue has been underperforming. This paper tries to find and analyze the reasons of institutional deterioration and underperformance (of revenue department) through its focus on the revenue receipt and expenditure in Faisalabad.