Telangana Panchayats funds released, Centre asks quick transfer to villages

Hyderabad: The Union government released Rs 1,034.42 crore as Telangana Panchayats funds under the 15th Finance Commission 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 grants aimed to strengthen rural local bodies across Telangana.

According to the minister, the Union Finance Ministry released the Telangana Panchayats funds based on recommendations from the Ministry of Panchayati Raj and the Ministry of Jal Shakti. The funds targeted grassroots governance and basic village infrastructure.

The allocation covered 12,702 Gram Panchayats in Telangana. These Telangana Panchayats funds could support sanitation works, drinking water supply and waste management.

They could also finance rainwater harvesting projects and help villages maintain Open Defecation Free status.

Telangana Panchayats funds released in three instalments

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. This completed the total allocation of Rs 1,034.42 crore.

The minister said the remaining Rs 2,000 crore would be released after the state submitted utilisation certificates for earlier grants.

He added that states must transfer the funds to Gram Panchayats within 10 working days of receiving them. Otherwise, they must pay interest for delays under the guidelines.

Kishan Reddy also reviewed allocations made to Telangana 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 the state. 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, Rs 6,051 crore had already been released before January 2026.

The minister alleged that the previous government led by the Bharat Rashtra Samithi diverted funds meant for villages. He said the diversion caused financial stress for several sarpanches.

Kishan Reddy urged the present government led by Chief Minister A. Revanth Reddy to ensure transparency. He also asked the state to immediately transfer the Telangana Panchayats funds to Gram Panchayats.

He said timely transfers would improve village infrastructure and restore confidence among newly elected sarpanches and ward members.