The Centre has released ₹259.36 crore as the first tranche of 15th Finance Commission Rural Local Bodies (RLB) grants to Gram Panchayats (GP) in Telangana, offering relief to GPs that have been facing financial constraints for nearly two years under the present regime. The funds were released following orders issued by the Union Finance Ministry.
According to the 15th Finance Commission recommendations, Telangana is entitled to around ₹3,000 crore. The ₹259.36 crore released now is the first instalment, with the remaining funds expected to be released in phases.
The release comes after a prolonged delay caused primarily by the deferment of Gram Panchayat elections in the State. Although funds for the financial years 2024–25 and 2025–26 were due, they remained stalled owing to the delay in elections. The Centre maintained that the pending grants would be released only after the completion of the Gram Panchayat elections, resulting in severe financial stress at the grassroots level.
Panchayat Raj and Rural Development Minister, Dhanasari Anasuya Seethakka, had repeatedly taken up the issue with the Union Government.
After the completion of the elections, the Minister initiated special efforts to expedite the release, particularly as there was a risk of the funds lapsing if not disbursed before March 31.
Meanwhile, Minister Seethakka urged the Centre to release the remaining pending grants without further delay, stressing that timely financial support is crucial for strengthening village self-governance.
Published – February 05, 2026 03:56 pm IST
