Panchayats get Rs. 1,121 cr finance commission bonanza

Vijayawada: In a major boost to grassroots development, the state government led by Chief Minister N Chandrababu Naidu and Deputy Chief Minister and panchayat raj minister Pawan Kalyan credited Rs 1,121 crore from the 15th Finance Commission to gram panchayats and local bodies across the state. The funds were deposited on Tuesday night, fulfilling the promise made by the new coalition government.

This marks the second time the coalition government has released funds to panchayats since coming to power. The move is seen as a welcome relief for village panchayats that have been struggling financially for the past eight months.

The previous YSRCP government had been criticised for diverting funds meant for panchayats and only releasing money twice in a three-year period, effectively ”stabbing the Panchayat Raj system in the back.”

The current government’s action aligns with its stated goal of prioritising rural development. Shortly after taking office, the government initiated various development programs, including the ‘Palle Panduga’ (village festival) and village-level meetings to sanction CC roads. However, the lack of funds had caused significant hardship for sarpanches (village heads), leading to protests even outside the Commissioner’s office for Panchayat Raj and Rural Development.

The release of the funds has brought a sigh of relief and joy among the sarpanchs.

Dr Jasti Veeranjaneyulu, national vice-president of the All India Panchayat Parishad (Delhi) and chief advisor to the Andhra Pradesh Sarpanchs’ Welfare Association, praised the Chief Minister and Deputy Chief Minister for their prompt action.

Speaking to the media, he stated that while the state budget might not be in a very promising state, the government’s decision to release the Central funds from the 15th Finance Commission was commendable, as it would prevent local bodies from facing financial difficulties.

He extended his gratitude to both leaders and the officials involved. Dr Veeranjaneyulu also appealed to the government to take immediate steps to release the pending registration surcharge funds, which have been due to village panchayats for the past eight months.