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Funds for Gram Panchayats Made Easier, Assembly Passes Bill

New law allows Central and State funds to reach gram panchayats without treasury routing

Hyderabad: The Assembly on Thursday passed the Telangana Panchayat Raj (Fourth Amendment) Act, 2026, paving the way for making funds from the Central and state governments easily accessible to gram panchayats by ensuring that the money was directly deposited in the nearest nationalized or cooperative bank or the post office.

Panchayat raj minister Danasari ‘Seethakka’ Anasuya, who piloted the Bill, said the amendment passed on Thursday would improve service delivery in gram panchayats with funds made available to them directly instead of passing through the treasury.

She also said the funds could henceforth be used by gram panchayats based on their needs once a resolution for the same was passed by the grama sabha. She said the amendment passed by the Assembly would set right the wrongs on funds availability to gram panchayats which was ignored by the previous government.

She also said that the government would soon take a decision on cheque powers for deputy sarpanches, adding that the state was still waiting for `619 crore from the Centre for gram panchayats.

Responding to requests from several members on forest clearance hurdles for laying of roads to forest villages and hamlets, the minister said Chief Minister A. Revanth Reddy had already instructed that preparations be made so a meeting can be held with the Union forest and environment minister to discuss the issue.

( Source : Deccan Chronicle )
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