Overview
- The Union government will disburse ₹1,000 crore by month-end and ₹1,500 crore next month, with conditions including separate bank accounts, PFMS registration, digital signatures and mandatory e-procurement.
- Newly elected panchayat bodies face uncertainty over using the funds for new works or clearing arrears, with pending dues to former sarpanches and secretaries estimated at around ₹1,083 crore.
- Telangana separately released ₹277 crore this week to gram panchayats ahead of Sankranti following directions from Deputy Chief Minister Mallu Bhatti Vikramarka.
- Chief Minister A. Revanth Reddy previously announced special grants for all 12,706 gram panchayats—₹5 lakh for smaller villages and ₹10 lakh for larger ones—from the Chief Minister’s Special Development Fund.
- Transfers were withheld for nearly two years after terms expired in January 2024, and last month’s local body elections restored eligibility for Finance Commission releases.