Centre Releases Rs 256 Crore to Gram Panchayats

 Hyderabad: The Centre on Tuesday released Rs 256.21 crore to 12,702 gram panchayats in Telangana as the second instalment for 2024-25 under the 15th Finance Commission grants. With this, the state has so far received Rs 6,697.07 crore, against an allocation of Rs 9,048 crore, for the 2020-21 to 2025–26 period under the outgoing Finance Commission.

The Centre needs to transfer nearly Rs 2,350 crore more to the state.

The Centre had withheld grants from the last quarter of 2023–24 due to the absence of elected bodies in gram panchayats after their tenure ended in January 2024. The state government delayed local body elections until December 2025, citing legal issues over the proposed 42 per cent reservation for Backward Classes. Elections were later conducted without the quota, and newly elected bodies assumed office on December 22, 2025.

Following the constitution of these bodies, the Centre resumed the release of funds from February 2026. Before Tuesday’s instalment, Rs 1,674.42 crore had been released in four tranches during February and March, taking recent releases to Rs 1,930.63 crore.

Data tabled in the Lok Sabha showed Telangana was allocated Rs 1,847 crore in 2020-21, Rs 1,365 crore in 2021-22, Rs 1,415 crore in 2022-23, Rs 1,430 crore in 2023-24, Rs 1,514 crore in 2024-25 and Rs 1,477 crore in 2025-26. However, actual releases declined in later years, with Rs 640.07 crore released in 2024-25 and none so far in 2025-26 due to the lack of elected bodies.

Panchayat raj and rural development minister Danasari ‘Seethakka’ Anasuya said the state had expedited submission of utilisation certificates and related reports, enabling the Centre to resume disbursals. She urged the Centre to release the remaining arrears, noting that the Finance Commission’s term ends on March 31, and said timely funding would support village-level development and strengthen gram panchayats.