Telangana Panchayat Raj dept denies diverting 15th Finance Commission funds
Telangana Panchayat Raj and Rural Development (PR&RD) Department has rejected allegations that the State government diverted 15th Finance Commission grants meant for development works to
Telangana Panchayat Raj and Rural Development (PR&RD) Department has rejected allegations that the State government diverted 15th Finance Commission grants meant for development works to pay electricity bills and staff salaries, describing the claim as “factually incorrect.” In a statement issued on Monday (July 20, 2026), Commissioner of PR&RD D. Divya referred to media reports quoting Union Minister of State for Home Affairs Bandi Sanjay - who alleged that the Telangana government was using the grants to pay electricity charges and staff salaries instead of undertaking development works.
The Commissioner clarified that, under Section 52 of the Telangana Panchayat Raj Act, 2018, maintenance of streetlights is a statutory responsibility of Gram Panchayats and that payment of electricity charges for street lighting is among their priority obligations. The department stated that the tied component of the 15th Finance Commission grants is meant, among other purposes, for the maintenance of drinking water supply systems.
It added that the untied component can be utilised for any of the 29 subjects listed in the Eleventh Schedule of the Constitution, which include the maintenance of community assets, distribution of electricity and drinking water. According to the Commissioner, the 15th Finance Commission grants are released directly by the Government to Gram Panchayats, Mandal Praja Parishads and Zilla Praja Parishads.
Electricity charges paid by Gram Panchayats are met from these permissible funds, and there has been no diversion of grants by the State government.
The BriefWire