₹2,186.20 crore dues from Centre adding to financial distress of gram panchayats in Karnataka, says Minister
Karnataka's Rural Development Minister Eshwar Khandre has accused the central government of withholding ₹2,186.20 crore in Finance Commission grants. The state claims the funds are being blocked due to technical issues with the e-Gram Swaraj portal, despite similar issues being resolved for other states.
Why it matters
The delay in funding is exacerbating financial distress for thousands of gram panchayats in Karnataka, hindering local governance and drought relief efforts.
Acknowledging that many gram panchayats in the State are facing financial problems, Rural Development and Panchayat Raj Minister Eshwar Khandre on Wednesday accused the Centre of meting out injustice towards Karnataka by not releasing ₹2,186.20 crore recommended by the 15th Finance Commission to gram panchayats in the State for 2025-2026.
“It is true that most of the 5,927 gram panchayats in the State are facing financial problems. The Centre, citing technical reasons, has not released the money. However, when similar technical issues have been reported in other States, money has been released,” the Minister told the Legislative Council during a discussion on drought and farming distress.
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