In a significant move to restore financial autonomy to village bodies, Telangana Chief Minister A Revanth Reddy on Tuesday directed officials to allow gram panchayats to directly access and utilize their own revenue for development works. This decision reverses a system introduced by the previous Bharat Rashtra Samithi (BRS) government.
Key directives on panchayat finances
During a review meeting with officials of the Panchayat Raj department, the Chief Minister instructed that a gram panchayat's own-source revenue be deposited into bank accounts instead of treasury accounts. This change will enable sarpanches to directly utilize the funds for local development activities. Revanth stated that approval had been granted to restore the earlier mechanism, which was scrapped by the previous government, weakening the financial independence of gram panchayats.
Officials confirmed that amendments are being made to Section 70(3) of the Telangana Panchayat Raj Act, 2018, to facilitate this change. Under the revised provisions, gram panchayat own-source revenues will be deposited into designated bank accounts rather than treasury accounts.
Changes to Cheyutha pension distribution
The Chief Minister also issued key directions regarding the Cheyutha pension distribution system. He instructed officials to discontinue pension distribution through the postal department in rural areas and instead transfer the pension amount directly into beneficiaries' bank accounts. "Measures must be taken to ensure that pensions reach only those who are eligible. The pension system must be streamlined based on data from voter IDs, Aadhaar, and caste survey records. Among newly sanctioned pensions, top priority must be accorded to single women," Revanth told officials.
Salary payments for gram panchayat employees
The Chief Minister further directed authorities to ensure that salaries of nearly 50,000 gram panchayat employees across the state are paid on the first day of every month. The government will allocate ₹50 crore every month to facilitate salary payments for these employees, including outsourced and contract staff. "Even a delay of a single day in the payment of salaries will not be tolerated," the CM warned.
These measures are part of the state government's efforts to strengthen grassroots governance and ensure efficient delivery of services to rural communities.
