Hyderabad: The Government of India released long-pending 15th Finance Commission funds to gram panchayats in Telangana, ending a prolonged freeze linked to delayed local body elections.
The Union Finance Ministry issued formal orders for the release. As part of the first instalment, the Centre allocated ₹259.36 crore to the state. Earlier, the Centre stopped the funds after gram panchayat terms ended without fresh elections. Because of this delay, technical objections arose at the central level.
As a result, the Centre withheld the entire allocation. However, Telangana recently completed the gram panchayat elections successfully. Consequently, the technical hurdles linked to fund release were cleared.
15th Finance Commission funds released after elections completion
Panchayati Raj Minister Seethakka played a key role in resolving the issue. She regularly engaged with senior Panchayati Raj officials. At the same time, she maintained continuous coordination with the Union government during the election process.
Meanwhile, the Centre still needs to release nearly ₹3,000 crore to Telangana under the 15th Finance Commission. Therefore, the Union government planned a phased release of funds. As part of this process, it released ₹259.36 crore in the current instalment.
The state will use the funds for sanitation works in villages. In addition, gram panchayats will spend the amount on drinking water supply. Street lighting and other urgent development works will also receive priority.