Telangana Panchayat Raj dept denies diverting 15th Finance Commission funds
The Telangana Panchayat Raj Department has denied allegations of diverting 15th Finance Commission funds for non-developmental expenses. Officials clarified that using these grants for electricity bills and staff salaries is legally permissible under state and constitutional guidelines for maintaining community assets.
Why it matters
The dispute underscores the complexities of fiscal federalism and the accountability of state governments in managing central government grants.
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.
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