HYDERABAD: With the conclusion of the Gram Panchayat elections, the state government has formally requested the Centre to release long-pending funds amounting to around `3,000 crore under the 15th Finance Commission. Officials are expecting the release within the next fortnight.
Sources in the Panchayat Raj department said the Centre has acknowledged the request but sought additional documents, including confirmation of the completion of local body elections and utilisation certificates for funds released earlier.
As the 15th Finance Commission’s tenure ends on March 31, 2026, Panchayat Raj Minister Danasari Anasuya (Seethakka) has directed officials to expedite the process. An official said the government is making all efforts to ensure the funds are released at the earliest. The minister has also sought an appointment with Union Panchayati Raj Minister Rajiv Ranjan Singh to personally pursue the matter.
The state completed the Gram Panchayat elections within the current financial year to ensure eligibility for the 15th Finance Commission grants. Initially, the government planned to hold the polls after securing 42% reservation for Backward Classes. However, with the Centre yet to take a decision on the relevant Bills and all other options exhausted, the state went ahead with the elections to avoid missing the deadline.
According to the government, arrears for the past two years amount to about `1,500 crore per year. It remains unclear whether the Centre will release the full arrears or impose conditions.
Around 15% of the pending amount is linked to the completion of Mandal Parishad Territorial Constituency (MPTC) and Zilla Praja Parishad Territorial Constituency (ZPTC) elections, which are yet to be conducted.