Funds Crunch: Gram Panchayat Power Bills Remaining Unpaid

The electricity department recently served notices on gram panchayats asking them to clear at least 15 per cent of their pending bills.

A majority of panchayats, except a few major ones, are facing difficulty in continuing the sanitation works, drinking water supply, streetlight maintenance and chlorination as also payment of workers’ salaries and tractor maintenance.

Gram panchayats receive funds from the central and state governments based on population. Small panchayats receive ₹80,000 to ₹1 lakh, while major ones receive ₹2 lakh to ₹10 lakh.

Though panchayats are receiving Central fund allocations under the 15th Finance Commission stipulations, the corresponding funds from the state government have not been sanctioned, say panchayat representatives.

As a result, several gram panchayats have been struggling to carry out works in villages.

Unable to meet their expenses, a majority of the gram panchayats stopped paying electricity bills, resulting in the accumulation of dues. The electricity department served notices seeking payment of the pending dues.

The state government has, in principle, agreed that gram panchayats can use the 15th Finance Commission funds to clear electricity bills.

While a few gram panchayats have paid part of the dues, others have sought a waiver of the electricity bills.

Sarpanches said funds were also required for sanitation measures during the monsoon. With the possibility of dengue, malaria and viral fevers, gram panchayats have to undertake fogging, garbage collection and regular clearing of drains.

They said the available funds would not be sufficient to meet these requirements as well as clear power bills.

Speaking to Deccan Chronicle, Raikal sarpanch Akhila said that though the panchayat was receiving central funds, the state government had not sanctioned its share since 2023.

She said the state government was also utilising the gram panchayat’s general fund deposited with the STO, leaving the panchayat unable to use even its general funds for daily needs. The Raikal gram panchayat has around ₹10 lakh in pending electricity bills.

Panchayat department officials, however, said gram panchayats should use 15th Finance Commission funds to pay their electricity bills. Instructions to this effect had also been issued to the panchayats.