PR Amendment Bill To Give Financial Autonomy To Gram Panchayats

Hyderabad: The state government on Wednesday introduced the Telangana Panchayat Raj (Fourth Amendment) Bill, 2026, in the Legislative Assembly, seeking to allow gram panchayats to keep their funds in banks and post offices instead of depositing them in the state government treasury.

Panchayat raj and rural development minister Seethakka introduced the Bill, which proposes to amend Section 70(3) of the Telangana Panchayat Raj Act, 2018.

Under the existing system, revenue generated by gram panchayats is deposited in the state government treasury, restricting their immediate access to the funds. The amendment proposes to allow gram panchayats to keep the funds in nearby nationalised banks, cooperative banks or post offices.

The government said the change would provide gram panchayats easier access to their funds, particularly in remote rural areas, and enable sarpanches and panchayat bodies to use locally generated revenue for development and essential works without delays associated with the treasury system.

The amendment follows a decision taken by the state Cabinet on July 17 to change the provisions governing the management of gram panchayat funds.