HYDERABAD: The Union government has withheld the grants for rural local bodies in Telangana for the year 2024–25 due to the non-conduct of elections. The allotted funds for the year, amounting to Rs 1,514 crore, have not been released for this reason.
In a written reply to a question posed by BJP MP Raghunandan Rao in the Lok Sabha on Wednesday, Minister of State for Panchayat Raj SP Singh Baghel said, “The release of allocated grants to Rural Local Bodies in Telangana under the 15th Finance Commission has been withheld for 2024–25 due to the non-fulfilment of the mandatory eligibility condition of duly elected or constituted Rural Local Bodies being in place.”
However, he added that once the rural local bodies are constituted, the withheld grants can be released upon request from the state, within the duration of the Fifteenth Finance Commission and depending on availability of funds.
According to the operational guidelines issued by the Ministry of Finance for implementing the Fifteenth Finance Commission’s recommendations on Rural Local Bodies grants for the financial years 2021–22 to 2025–26, Rural Local Bodies are eligible for grants only if they are duly constituted. If not all bodies are constituted, the grants shall be released to the state on an actual allocation or pro-rata basis for duly constituted bodies.
Meanwhile, the Centre has released Rs 123.29 crore to Telangana under various schemes implemented by the Ministry of Panchayat Raj since 2014–15 to 2024–25.