Telangana Grants Direct Access to Village Panchayat Revenue Funds

Telangana is set to introduce a significant reform aimed at strengthening local self governance by allowing village panchayats to directly utilize their self generated revenue. The proposed changes are expected to ease long standing financial hurdles faced by local bodies and speed up development works in villages across the state.

Under the existing system, revenue collected by gram panchayats through house taxes, water charges, layout approvals, market fees, and auctions is deposited into government treasuries. As a result, even routine expenses require approvals from the Finance Department, often causing delays in carrying out essential village services.

According to official estimates, the state’s 12,760 gram panchayats collectively generate nearly Rs 140 crore in internal revenue every year. The government now plans to amend Section 70(3) of the Telangana Panchayat Raj Act 2018, enabling these funds to remain in local bank accounts and be used directly for village requirements.

The move comes after repeated concerns from sarpanches who struggled to access locally generated funds despite collecting them for community development. Delays in paying sanitation workers, purchasing fuel for tractors, maintaining streetlights, and procuring sanitation materials often affected day to day village administration.

To improve financial operations, the government is also proposing changes to the joint cheque authority system. Instead of the existing arrangement involving the sarpanch and deputy sarpanch, the village secretary will be given joint cheque signing authority alongside the sarpanch. The proposal is expected to be placed before the state cabinet through ordinances for approval.

While granting greater financial autonomy, the government is also introducing strict safeguards to prevent misuse of funds. Every rupee received and spent by a gram panchayat must be recorded online through the official e Panchayat platform. Financial details will also be displayed publicly at panchayat offices to ensure transparency.

In addition, annual audits by the State Audit Department will be mandatory. If any financial irregularities or violations are detected, both the sarpanch and village secretary will be held jointly responsible and may face criminal as well as departmental action under the amended provisions.