Centre releases Rs 1,034 crore for Telangana Panchayats, Kishan Reddy seeks quick transfer
Hyderabad: The Union government released Rs 1,034.42 crore in Telangana Panchayats funds under the 15th Finance Commission grants and asked the state to transfer the amount to Gram Panchayats without delay.
Union Minister G. Kishan Reddy announced the release on Thursday. He said the funds aimed to strengthen rural local bodies across Telangana.
According to him, the Union Finance Ministry released the Telangana Panchayats funds based on recommendations from the Ministry of Panchayati Raj and the Ministry of Jal Shakti.
He said the grants targeted the development of grassroots governance and local infrastructure in villages.
The minister added that the funds covered 12,702 Gram Panchayats across the state.
These Telangana Panchayats funds could support services such as sanitation, drinking water supply and waste management. The grants also allowed works related to rainwater harvesting and maintaining Open Defecation Free status.
Telangana Panchayats funds allocated in three tranches
Kishan Reddy said the Centre released the Telangana Panchayats funds in three tranches during the current financial year.
The first tranche of Rs 259.36 crore reached the state on February 5. The second tranche amounted to Rs 387.1 crore.
Recently, the Centre released the third tranche of Rs 387.96 crore, completing the total allocation of Rs 1,034.42 crore.
The Union minister said the remaining Rs 2,000 crore would be released after the state submitted utilisation certificates for previously released grants.
He stressed that state governments must transfer the funds to Gram Panchayats within 10 working days of receiving them. Otherwise, they must pay interest for the delay as per guidelines.
Kishan Reddy also reviewed allocations made during the past decade under Prime Minister Narendra Modi.
He said more than Rs 11,000 crore had been sanctioned for rural local bodies in Telangana.
Between 2015–16 and 2019–20, the Centre released Rs 5,060 crore. Later, allocations increased by about 80 percent to Rs 9,050 crore between 2020–21 and 2025–26.
Of this amount, Rs 6,051 crore had already been released before January 2026, he added.
The minister alleged that the earlier government led by the Bharat Rashtra Samithi diverted funds meant for villages.
According to him, that diversion created financial stress for many sarpanches in the state.
He urged the current government led by Chief Minister A. Revanth Reddy to ensure transparency.
Kishan Reddy requested the state administration to immediately transfer the Telangana Panchayats funds to Gram Panchayats.
He said timely transfers would strengthen village infrastructure and restore confidence among newly elected sarpanches and ward members.