Rural local bodies in Telangana in crisis as pending bills mount

Rural local bodies in Telangana are facing a financial crisis, with gram panchayats unable to maintain basic services. The State owes over Rs 1,083 crore to sarpanches and secretaries, while Central funds worth Rs 2,700 crore remain frozen due to pending elections.

Hyderabad: Rural local bodies across Telangana are reeling under a severe financial crunch, with gram panchayats unable to undertake even basic sanitation work amid incessant rains. The government owes around Rs.1,083 crore in pending bills to former sarpanches and panchayat secretaries for taking up various works, including maintenance of basic amenities.

According to estimates, secretaries in 12,769 villages have spent between Rs 2 lakh and Rs 7 lakh each over the last 19 months, amounting to nearly Rs.383 crore. With State and Central funds frozen due to pending elections, many have resorted to loans to keep villages functioning. Panchayat secretaries are often forced to spend their own money on urgent needs, such as maintaining drinking water, repairing streetlights, clearing garbage and purchasing bleaching powder.

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“Even though cheques were issued for around Rs.73 crore, they were not cleared. The government must release pending bills before local body polls,” said Telangana Panchayat Secretaries Association president P Madhusudhan Reddy.

Former sarpanches, too, are in distress. Bills worth Rs.600-700 crore, incurred for flagship programmes like Palle Pragathi, Vaikuntha Dhamam and sanitation drives, remain uncleared. Some sarpanches who borrowed heavily for works have slipped into debt traps, with reports of suicides surfacing.

The crisis stems from stalled 15th Finance Commission grants. With elections not held, Rs 2,700 crore in Central funds has been frozen, including Rs 180 crore monthly. Additionally, the State Finance Corporation’s arrears of Rs 1,560 crore remain unpaid.

The Telangana Sarpanch Association JAC has moved the Human Rights Commission, which has sought a detailed report from the Panchayat Raj department authorities on pending dues. The Commission is expected to hold a hearing next month.

With rains aggravating sanitation challenges, the panchayat secretaries are warning that disease outbreaks are imminent unless funds are released.

“The government must immediately lift the freeze on gram panchayat accounts and clear dues. Otherwise, villages will collapse under financial paralysis,” said Survi Yadaiah Goud, Telangana Sarpanches JAC State president.

FOR INFOGRAPHIC:
Fund crunch hits rural local bodies.
Bills amounting to nearly Rs 383 crore are to be paid to panchayat secretaries.
The government owes around Rs 700 crore to former sarpanches for works taken up.
Central funds amounting to Rs 2,700 crore and another Rs 1,560 crore from the State Finance Corporation are pending due to delayed elections.
Govt urged to clear around 1,083 crore dues before panchayat polls.