Centre approves release of Rs. 2,500 Crores for Telangana as 15th Finance Commission Funds

Hyderabad Jan 14: Following the completion of Gram Panchayat elections and the formation of new governing bodies in Telangana, the Central Government has approved the release of Rs. 2,500 crores in pending 15th Finance Commission funds. The Centre has informed the state government that Rs. 1,000 crores will be released by the end of this month, and the remaining Rs. 1,500 crores will be released next month.

The tenure of local bodies in the state ended in January 2024. While funds were received up to the 2023-24 financial year, the Center withheld the ₹2,500 crores allocated for 2024-25 because elections had not been held and no elected bodies were in place.

With the government conducting Panchayat elections last month, the path was cleared for the release of funds for the 2025-26 financial year as well. Following instructions from Panchayat Raj and Rural Development Minister Seethakka, officials visited Delhi to submit a report and request the release of the funds, which the Center subsequently approved.

The Central Government has set new procedures for the release and use of these funds. On Tuesday, the State Panchayat Raj Department issued guidelines to all District Collectors and Panchayat Officers to initiate the following steps:

• Special Accounts: Every Gram Panchayat must open a dedicated bank account and register it on the Public Financial Management System (PFMS) portal to obtain a Unique Agency Code. Details must also be entered into the e-GramSwaraj portal.
• Digital Signatures: To utilize the funds, the Sarpanch (Checker) and Upa-Sarpanch (Maker) must register their Digital Signatures and obtain approval through the respective MPDOs. Class-3 Digital Signature Certificates with signing, encryption facilities, and USB tokens are mandatory.
• Procurement: Panchayat officials must register necessary digital signatures on the GeM portal. Works must be executed through e-procurement or other official tender processes.

In a separate move, the Telangana Finance Department has issued orders releasing Rs. 277 crores of state funds for Gram Panchayats. Deputy Chief Minister Bhatti Vikramarka met with senior finance officials at Praja Bhavan on Tuesday and decided to release these state funds in honor of the Sankranti festival.

The Deputy CM extended his Sankranti greetings to the newly elected sarpanches, deputy sarpanches, and Ward Members. Minister Seethakka expressed her gratitude to Deputy CM Bhatti Vikramarka for the timely release of these funds.