Kishan Reddy Hails ₹260 Crore Central Aid For Panchayats

Hyderabad: Union minister G. Kishan Reddy expressed happiness over the release of about ₹260 crore by the Centre as the first instalment for strengthening gram panchayats, as recommended by the 15th Finance Commission.

In a statement, Reddy said he had urged the Union minister for panchayat raj to expedite the release, citing the poor financial condition of local bodies following the conduct of elections. He noted that the state government had recently submitted utilisation certificates for 2023–24, enabling the release of funds for 2024–25.

Over the past decade, the Modi government has disbursed more than ₹11,000 crore to Telangana’s grassroots institutions, he said. Allocations have surged by 80 per cent — from ₹5,060 crore in 2015–20 to ₹9,050 crore for 2020–26. Delays in holding gram panchayat elections and failure to submit utilisation certificates had stalled fund releases from the Centre. So far, ₹6,051 crore has been released, the minister said.

He added that the remaining ₹2,500 crore would be disbursed in phases upon submission of utilisation certificates. As per Central guidelines, every gram panchayat must maintain a dedicated bank account registered on the PFMS portal with a unique agency code to ensure transparent fund use.

Kishan Reddy criticised the previous BRS government for seizing panchayat accounts and diverting funds, which he said caused severe hardships. He alleged that the non-release of funds for works carried out by Sarpanches had even led to resignations and suicides during their tenure.

The Centre, he emphasised, aims to empower rural democracy from the grassroots, ensuring accountability and transparency through timely fund releases. He urged the state government to take proactive steps to improve rural infrastructure.