Union Minister Kishan Reddy Announced On The Release Of Gram Panchayat Funds

Hyderabad, April 2 (Maxim News):  Union Coal and Mines Minister Kishan Reddy said that the Central Government led by Prime Minister Narendra Modi is working sincerely for rural development. He expressed happiness over the release of the first tranche of funds for the year 2025-26 as per the recommendations of the 15th Finance Commission.

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The Union Minister welcomed the release of Rs. 619.85 crore for the Telangana Gram Panchayats. To this extent, Prime Minister Narendra Modi and Union Panchayat Raj Minister Rajiv Ranjan Singh expressed special thanks. He said that the Central Government is literally implementing the mantra of ‘Sabka Saath.. Sabka Vikas’ and paving the way for comprehensive development of every village.

Union Minister Kishan Reddy

Out of the Rs 619.85 crore released by the Centre, Rs 371.91 crore is under Tied Grant and Rs 247.94 crore is under Untied Grant, he said. With Tied Grant funds, many works like road construction, sanitation, drinking water supply, sewage treatment, rainwater conservation, and improvement of living standards of the people can be done in villages. Union Minister Kishan Reddy said that Untied Grant funds can be used to make decisions in the Gram Sabhas according to local needs and undertake development programs.

‘As per the recommendations of the 15th Finance Commission, as soon as the funds allocated to rural local bodies are received by the states from the Centre, the finance departments of the respective states are required to transfer the funds to the respective gram panchayats immediately within 10 working days. If there is any delay beyond that, the state governments will have to pay the gram panchayats along with interest at the rate of interest being paid on market loans/State Development Loans (SDL) taken for other schemes. Also, the state government is responsible for releasing matching grants equal to the funds released by the Centre.

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While Rs.5,060 crore was released under the 14th Finance Commission from 2015-16 to 2019-20, the allocations under the 15th Finance Commission from 2020-21 to 2025-26 have increased by 80 percent to Rs.9,050 crore. With this, the Centre has allocated a total of Rs.14,110 crore to Telangana during the period of the 14th and 15th Finance Commissions. Of this, the Center released Rs. 11,111 crore to the state before January 2026. For 2024-25, Rs. 1,032.42 crore has been released since January 2026. The latest release is Rs. 619.85 crore for 2025-26 under the first tranche. Meanwhile, under the 16th Finance Commission, the gram panchayats in Telangana will receive Rs. 9,968 crore in the form of grants from the Center between 2026-27 and 2030-31.

Due to the Telangana government not holding Panchayat elections on time, funds are pending for two years (for the financial years 2023-24 and 2024-25). The Center released them after the recent elections to the Gram Panchayats. The Center has also recently released the first tranche of funds for the financial year 2025-26. In the past, the BRS and Congress governments had sidelined the funds given by the Center by not providing funds to the Gram Panchayats. However, the Center released funds for the development of the villages as soon as the utilization certificates were submitted. The state government, under the rule of special officers, did not hold Panchayat elections in Telangana for two years. The Central Government is ready to release funds accordingly if utilization certificates are submitted from time to time, he said in a statement. (Maxim News)

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