Centre Releases Rs 387.53cr to Gram Panchayats in Telangana

Hyderabad: The Centre on Friday released Rs 387.53 crore to gram panchayats in the as the third instalment of grants under the 15th Finance Commission, taking the so far to Rs 1,034.42 crore following the conduct of gram panchayat elections in December last. However, the state government said that nearly Rs 2,000 crore in dues is still pending from the Centre.

The release of funds comes after the completion of gram panchayat elections, which enabled the Centre to resume disbursement of pending Finance Commission grants that had been withheld due to the absence of elected local bodies. Officials said the funds would play a crucial role in expediting rural development programmes across villages.

The grants will primarily be utilised for improving basic infrastructure, including sanitation management, drinking water supply, installation of streetlights, and repair and maintenance of internal village roads.

According to officials, delays in the release of pending funds have affected the pace of certain development works in rural areas. Panchayat raj and Rural Development Minister Seethakka on Friday urged the Centre to immediately release the remaining dues, stating that timely availability of funds is essential to ensure uninterrupted execution of development works in villages.

The minister directed officials to ensure effective utilisation of the funds already released, prioritise clearance of pending bills, and expedite critical infrastructure projects in gram panchayats. She said that the state government is committed to transparent utilisation of funds and comprehensive village development that delivers direct benefits to people.

Earlier, on February 5, after a gap of nearly two years, the Centre had released Rs 259.36 crore as the first instalment of long-pending 15th Finance Commission grants. This was followed by the second instalment of Rs 387 crore on February 12, taking the total release at that stage to Rs 646.36 crore. The grants had been withheld since January 2024 following the expiry of sarpanches’ tenure and were resumed after newly elected gram panchayat bodies assumed office on December 22, 2025.

Officials said Telangana is eligible to receive nearly Rs 3,000 crore under the 15th Finance Commission for rural local bodies during the 2024–25 and 2025–26 financial years, and further releases are expected upon compliance with prescribed norms and submission of utilisation certificates.