Major Decision on Panchayat Revenue

Gram panchayats in Telangana will no longer have to deposit their own revenues into the government treasury. They will also not require treasury approval to use these funds for local needs. The money can be utilised for sanitation, drinking water, streetlights and other local requirements based on resolutions passed by the Gram Sabha. The state Assembly on Thursday approved an amendment to Section 70(3) of the Telangana Panchayat Raj Act, 2018, providing these powers to local bodies. During the debate, Panchayat Raj Minister Seethakka said the 73rd Constitutional Amendment empowers local bodies to levy and collect taxes, duties and fees and spend the revenue locally. She said the amendment made by the previous government in 2018 had restricted this authority by requiring panchayat revenues to be deposited in the government treasury.

Seethakka said municipalities had been allowed to utilise their funds while village panchayats were treated differently. Under the new amendment, panchayats will be able to deposit and utilise their own revenues through bank accounts, similar to funds received from the Central and State Finance Commissions. She said the government was also examining the issue of the panchayats’ share in stamp duty on registrations, which was reduced before 2018. The minister said ₹50 crore was being released to panchayats every month and ₹619 crore was expected from the Centre as the second instalment for 2025-26. Issues related to multipurpose staff salaries and pending bills of former sarpanches are also under examination. Farm road works will be taken up in villages after October, while special funds will be provided to 52 panchayats in agency areas where elections have not been held. BJP MLA Payal Shankar raised concerns over bills pending for months due to the Kuber software, while Palvai Harish Babu sought the waiver of ₹1,500 crore in pending electricity dues of panchayats.