Gram panchayats across Telangana struggle with fund crisis

Of nearly Rs 1,380 crore pending for payment to the gram panchayats, the State government is learnt to have released only Rs 160 crore in two spells over the last six months.

Hyderabad: Gram panchayats across Telangana are grappling with severe financial difficulties due to the non-release of funds by the state government for the past six months. This funding freeze has left many village administrations struggling to manage basic services and operations.

Of nearly Rs 1,380 crore pending for payment to the gram panchayats, the State government is learnt to have released only Rs 160 crore in two spells over the last six months.

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During the previous BRS regime, around Rs 230 crore was released every month to 12,769 gram panchayats across the State. The State government released matching grants along with the Central funds. These funds supported various rural development initiatives, including garbage collection, road maintenance, and the operations of dumping yards.

The previous government also appointed a panchayat secretary for each village under the new Panchayat Raj Act, which aimed to make gram panchayats a model for the country. Due to these initiatives, the rural local bodies of Telangana won numerous awards from the union government under various categories/schemes over the least three-four years.

However, the current government has significantly cut these monthly allocations. Panchayat officials are under pressure to cover emergency expenses from their own pockets, adding to their financial strain. The situation has worsened with the expiry of the rural local bodies’ term in February this year, following which the administration is being handled by the special officers appointed by the State government.

The situation is especially dire for smaller gram panchayats, where the lack of funds has led to a halt in essential services. Tractors, crucial for garbage collection, are unable to run due to a lack of diesel. Panchayat buildings are facing power cuts, and the funds needed to pay sanitation workers are unavailable, causing widespread concern among panchayat secretaries and special officers.

“Without the necessary funds, we can’t even pay the electricity bills,” a panchayat secretary from Kamareddy district lamented. “We haven’t been able to pay our sanitation workers for months,” he added.

The State Finance Commission (SFC) has yet to release the required funds, compounding the problem. The Central funds from the 15th Finance Commission are also on hold until new panchayat governing bodies are elected, leaving villages without any significant income sources in a precarious position. Adding to the woes, the State government directed the gram panchayats to handle the drinking water supply to local households with their own funds.

This funding crisis has led to a halt in critical services. Drinking water shortages have become common, and multi-purpose workers, who handle everything from sanitation to water supply, have not been paid for last three months. Larger panchayats are also struggling to maintain adequate numbers of sanitation workers, causing delays in essential services.

The lack of funds has left many villages in a dire condition. “We can’t even buy diesel to run the garbage collection tractors. Unless funds are released immediately, the situation will be out of control,” said an official in the Panchayat Raj and Rural Development department.