Hyderabad: Union Minister G. Kishan Reddy on Wednesday said the Central Government has released over ₹11,000 crore to Gram Panchayats and local bodies in Telangana over the past decade. This reaffirms its commitment to strengthening grassroots governance.
He welcomed the Centre’s decision to continue funding rural local bodies. Furthermore, he noted that the allocations reflect Prime Minister Narendra Modi’s focus on empowering democratic institutions at the village level.
Funds released in phases since 2015, more to follow
According to the Union Minister, the Centre released ₹5,060 crore to Gram Panchayats in Telangana between 2015–16 and 2019–20. From 2020–21 to 2025–26, allocations rose by nearly 80% to ₹9,050 crore. Of this amount, ₹6,051 crore has already been disbursed.
Kishan Reddy said the timely release of funds has helped enhance accountability and transparency even in remote areas. He added that the remaining grants would be released soon following the completion of local body elections.
He confirmed that utilisation certificates for funds released during 2023–24 have already been submitted. Additionally, the Centre will release ₹260 crore as the first instalment for 2024–25 once the Gram Panchayat elections are concluded. The balance of ₹2,500 crore will follow in subsequent phases upon submission of utilisation details.
Under Central guidelines, every Gram Panchayat must open a dedicated bank account and register it on the Public Financial Management System (PFMS). This enables them to receive a unique agency code, he said.
Kishan Reddy alleges diversion of funds by previous BRS regime
The Minister alleged that the previous BRS government diverted Gram Panchayat funds, causing distress among elected representatives. “Many sarpanches were forced to resign due to lack of funds. Some even killed themself. This is very unfortunate,” he said.
He urged the current Telangana government to cooperate with the Centre’s rural development efforts. In addition, he called on them to take proactive steps to build infrastructure in rural areas.