Union Minister G. Kishan Reddy announced the Centre has hiked funding for Telangana’s local bodies by 80% to ₹9,050 crore. Over the last decade, more than ₹11,000 crore has been allocated to the state’s Gram Panchayats for development.
Union Minister G. Kishan Reddy on Wednesday announced that the Central Government has significantly increased funding for Telangana’s local bodies. Compared with previous years, the budget for these rural offices has increased by 80 per cent to ₹9,050 crore. The Centre has allocated over ₹11,000 crore to Gram Panchayats and local bodies in the state over the past decade. Reddy said that the timely release of funds would improve accountability and transparency at the grassroots level.
Increased Funding Allocation
“The Government of India (GoI) has taken the decision to release funds for strengthening Gram Panchayats and local bodies in Telangana. Over the past decade, under Prime Minister Narendra Modi’s leadership, the GoI has allocated more than ₹11,000 crore to Gram Panchayats and local bodies in the state. In the period between 2015-16 and 2019-20, ₹5,060 crore was released, while allocations for the period from 2020-21 to 2025-26 increased by 80 per cent to ₹9,050 crore, of which ₹6,051 crore has already been released”, Reddy stated.
Phased Release and Conditions
The Minister further added that the first instalment of ₹260 crore for 2024-25 would be released shortly by the Union Government, following the completion of local body elections in Telangana and the submission of Utilisation Certificates for 2023-24. The remaining amount of approximately ₹2,500 crore would be released in a phased manner upon further submission of Utilisation Certificates.
“The GoI firmly believes that strengthening democratic institutions at the grassroots level improves accountability and transparency. Accordingly, funds for local bodies have been released in a timely manner. Following the completion of local body elections in Telangana and the recent submission of Utilisation Certificates for 2023-24 by the Government of Telangana, the first instalment for 2024-25, amounting to ₹260 crore, will be released shortly by the Union Government. Upon further submission of Utilisation Certificates, the remaining amount of approximately ₹2,500 crore will continue to be released in a phased manner”, Reddy further added.
Allegations Against Previous BRS Govt
Reddy also accused the previous BRS government of diverting funds meant for Gram Panchayats and urged the current government to exercise due caution and cooperate with the Centre’s efforts for development at the village and grassroots level.
“As per guidelines, every Gram Panchayat must maintain a separate bank account for fund utilisation, registered on the PFMS portal with a unique agency code. The previous BRS government attached Gram Panchayat bank accounts and diverted these funds for other purposes. As a result, several Sarpanches resigned as they did not receive funds for works executed during their tenure. In some unfortunate instances, Sarpanches even resorted to suicide, which is deeply unfortunate and regrettable. In this regard, I urge the Government of Telangana to exercise due caution and cooperate fully with the GoI’s efforts for development at the village and grassroots level to strengthen rural infrastructure and achieve the vision of Viksit Bharat,” Reddy claimed.
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