The Telangana government has formally requested the central government to disburse pending Finance Commission grants amounting to nearly ₹3,000 crore. These funds are crucial for development projects in gram panchayats across the state.
Why Were the Funds Withheld?
The grants, earmarked for the financial years 2024-25 and 2025-26, were initially withheld by the Centre. This action was due to the absence of elected local bodies in Telangana's village panchayats. According to established Finance Commission norms, such grants are released only after local body elections are conducted.
Following the completion of sarpanch and ward member elections and the subsequent oath-taking ceremony in the third week of December 2023, the state government renewed its request for the funds. However, the Centre has asked for clarifications, specifically requesting the submission of completion and utilisation certificates for works undertaken and finished in gram panchayats during the two fiscal years in question.
State's Response and Potential Delhi Visit
Officials from the state's panchayat raj department have confirmed that all details and documents sought by the Centre have now been submitted. They expressed optimism that at least ₹2,500 crore of the total amount would be released by the end of this month.
A senior official indicated that the funds are likely to be released in phases. This will depend on the ongoing communication between the state and central governments and the verification of the submitted documents.
Should there be any further delay, Panchayat Raj Minister Seethakka is expected to travel to Delhi to meet Union Panchayat Raj Minister Rajiv Ranjan Singh. Furthermore, Chief Minister A. Revanth Reddy is also likely to write to the Union minister, urging the early release of the pending grants.
The ₹500 Crore Hurdle
Sources indicate that the Centre may withhold approximately ₹500 crore from the total grant. This portion, which is about 15% of the ₹3,000 crore, is earmarked for Mandal Parishad Territorial Constituencies (MPTC) and Zilla Parishad Territorial Constituencies (ZPTC). The deduction is anticipated because Telangana has not yet conducted elections for these bodies.
The state government's push highlights the critical need for these funds to fuel rural development and infrastructure projects at the grassroots level, directly impacting communities across Telangana.
