Centre released over ₹11,000 crore to Telangana Gram Panchayats: Kishan Reddy
Hyderabad: Union Minister G. Kishan Reddy said the Central Government released over ₹11,000 crore as Gram Panchayat funds to Telangana during the last decade.
Speaking on Wednesday, he said the allocations showed the Centre’s commitment to strengthening grassroots governance. He also welcomed the decision to continue funding rural local bodies.
Kishan Reddy said the funding reflected Prime Minister Narendra Modi’s focus on empowering village-level democratic institutions. He added that regular fund flow improved governance outcomes.
According to the Union Minister, the Centre released ₹5,060 crore to Gram Panchayats between 2015–16 and 2019–20. From 2020–21 to 2025–26, allocations rose to ₹9,050 crore.
He said the increase represented nearly 80% growth in funding. Of the total amount, the Centre has already disbursed ₹6,051 crore.
Kishan Reddy said timely fund release improved accountability and transparency. He added that even remote villages benefited from the system.
Gram Panchayat funds linked to elections and compliance
The Minister said the Centre would release pending grants after the completion of local body elections. He confirmed that authorities have submitted utilisation certificates for funds released during 2023–24.
He said the Centre would release ₹260 crore as the first instalment for 2024–25 once elections conclude. The remaining ₹2,500 crore will follow in phases after utilisation details are submitted.
Under Central guidelines, every Gram Panchayat must open a dedicated bank account. They must also register on the Public Financial Management System to receive a unique agency code.
Kishan Reddy alleged that the previous BRS government diverted Gram Panchayat funds. He said the diversion caused severe financial stress among sarpanches.
“Many sarpanches were forced to resign due to lack of funds. Some even killed themself. This is very unfortunate,” he said.
He urged the present Telangana government to cooperate with the Centre’s rural development programmes. He also called for proactive efforts to strengthen rural infrastructure.
