Centre releases Rs 387.53 crore to gram panchayats in Telangana
Hyderabad: The Center on Friday released ₹387.53 crore to gram panchayats as the third installment of grants under the 15th Finance Commission, bringing the total disbursed to ₹1,034.42 crore since the Gram Panchayat elections last December. However, the state government stated that the Center still owes approximately ₹2,000 crore.
The release of funds came after the Gram Panchayat elections, allowing the Center to re-release pending Finance Commission grants that had been withheld due to the absence of elected local bodies. Officials stated that this fund will play a crucial role in accelerating rural development programs in villages.
The grant will primarily be used to improve basic infrastructure, including sanitation management, drinking water supply, installation of streetlights, and repair and maintenance of internal village roads.
According to officials, the delay in releasing pending funds has impacted the pace of some development projects in rural areas. Panchayat Raj and Rural Development Minister Seethakka on Friday appealed to the central government to immediately release the remaining dues. He stated that timely release of funds is essential for smooth completion of development projects in villages.
The minister directed officials to ensure proper utilization of funds already released, clear pending bills, and expedite essential infrastructure projects in gram panchayats. He stated that the state government is committed to transparent use of funds and comprehensive village development, ensuring direct benefits to the people.
Earlier, on February 5, after a gap of nearly two years, the central government released ₹259.36 crore as the first installment of the long-pending 15th Finance Commission grant. This was followed by the release of the second installment of ₹387 crore on February 12, bringing the total released at that time to ₹646.36 crore. The grant was stopped from January 2024 after the term of the sarpanches ended and was resumed after the newly elected gram panchayat bodies took over on December 22, 2025.
Officials said Telangana is entitled to receive around Rs 3,000 crore under the 15th Finance Commission for rural local bodies during the financial years 2024-25 and 2025-26, and further funds are expected to be released subject to compliance with the prescribed norms and submission of utilisation certificates.
