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Hyderabad

Newly elected sarpanches face funds crunch in Telangana

With no elected bodies for nearly two years, village administrations slid into a financial crunch. Panchayats run by special officers struggled to fund and maintain even basic civic amenities.

A Seshacharyulu

NALGONDA: Newly elected sarpanches across the state who have assumed office are staring at a formidable mix of administrative and financial challenges.

The situation is especially acute in Nalgonda district, which has 869 gram panchayats. While elections were held smoothly in most areas, polling in three panchayats was postponed due to technical reasons.

The absence of elected bodies for nearly two years has pushed village administrations into a deep financial crisis. During this period, panchayats were run by special officers, who struggled to sustain even basic civic amenities. One of the most pressing problems has been prolonged delays in the payment of salaries to panchayat staff.

Adding to the strain are huge arrears in electricity bills for street lighting and water motors. Sanitation services have also suffered, with several panchayats unable to afford even diesel for tractors or service EMIs for garbage collection vehicles. In many cases, banks have issued notices to local bodies after loan instalments remained unpaid for more than two years.

Infrastructure and environmental assets have deteriorated sharply during the transition. Major gram panchayats report a near-total collapse in the maintenance of CC roads, drainage networks, Palle Prakruthi Vanams and dumping yards.

Contractors who executed works in the past, along with former sarpanches and panchayat secretaries, who spent personal funds on village development, are still awaiting clearance of their bills. The crisis has been further aggravated by poor tax collection over the last two years.

Hopes are now pinned on the release of the 15th Finance Commission funds from the Centre, which were stalled in the absence of elected local bodies. These funds, estimated at Rs 900 to Rs 1,400 per person depending on population, are considered critical, especially as the term of the 15th Finance Commission ends on March 31, 2026.

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