Centre Govt Approves Rs 2,500 crore for Telangana panchayats

Centre government has approved release of Rs 2,500 crore in 15th Finance Commission funds, bringing much-needed relief to financially strained gram panchayats in the State. 

However, uncertainty continues on whether these funds would be used for new works or to settle pending bills amounting to around Rs.900 crore, owed to former sarpanches and panchayat secretaries.

The Centre has informed the State that Rs 1,000 crore will be released by the end of this month and the remaining Rs 1,500



crore next month. 

The funds were withheld for nearly two years as Telangana had no elected panchayat bodies after their term expired in January 2024.

With elections held last month and new governing bodies in place, the Union government has cleared the way for fund release, but with strict procedural guidelines including separate bank accounts, Public Financial Management System (PFMS) registration, digital signatures of sarpanch and deputy sarpanch, and mandatory e-procurement for works.