Centre Releases ₹387 Crore More to Telangana Gram Panchayats
Total allocation reaches ₹646.46 crore; ₹2,400 crore still pending from Centre
Hyderabad: The Centre has released ₹387 crore to Telangana’s gram panchayats, the second instalment under the 15th Finance Commission grants, The Centre has in all released so far to ₹646.36 crore, following the conclusion of rural local body elections. The funds will be used for infrastructure development in villages, including sanitation, drinking water supply and improvement of rural roads.
The state government is eligible to receive nearly ₹3,000 crore under the 15th Finance Commission for rural local bodies over the 2024-25 and 2025-26 financial years. Of this, around ₹2,400 crore remains pending.
The Centre on February 5 had released ₹259.36 crore as the first instalment, after a gap of nearly two years. The grants had been withheld due to the absence of elected local bodies following the expiry of sarpanches’ tenure in January 2024. Gram panchayat elections were held in December 2025, and the newly elected bodies assumed office on December 22, 2025.
Panchayat raj and rural development department officials said on Thursday that the latest release followed the conduct of elections and submission of utilisation certificates and other information sought by the Centre, in accordance with prescribed norms.
In a media statement, panchayat raj and rural development minister Dr Danasari ‘Seethakka’ Anasuya urged the Centre to release the remaining arrears without delay, stating that timely disbursal was essential to strengthen local bodies and accelerate rural development before the close of the financial year on March 31, 2026.
She said greater coordination between the Centre and the state government was necessary to ensure comprehensive development of villages and to enable gram panchayats to deliver improved services to the public.
