Archive · 11 Sep 2026
Telangana Assembly Passes Bill Easing Gram Panchayat Fund Access
The Telangana Assembly approved a change to the law governing village councils.
The change lets gram panchayats keep government money in nearby banks or post offices instead of sending all of it through the treasury.
This is intended to help villages receive and use money more quickly.
Village councils can spend the money for local needs after the gram sabha approves a resolution.
Minister Danasari Anasuya said treasury delays had affected staff salaries and other payments.
She said the government is trying to correct what it described as earlier funding problems.
Telangana is still waiting for ₹619 crore from the Centre for the 2025-26 year.
The minister also said the government will soon decide whether deputy sarpanches can sign cheques.
Officials are preparing for discussions about forest clearances needed for roads to forest villages and hamlets.
The Telangana Assembly passed the Telangana Panchayat Raj (Fourth Amendment) Act, 2026, on Thursday.
The amendment allows all gram panchayat funds, including government-scheme money, to be deposited in nearby nationalized or cooperative banks or post offices.
Gram panchayats can use funds for local needs after approval through a gram sabha resolution.
Minister Danasari Anasuya said treasury delays had affected salaries and other panchayat obligations.
Telangana is awaiting ₹619 crore from the Centre, while the government is also addressing forest-road clearances and deputy sarpanch cheque powers.
- Who
- The Telangana Legislative Assembly, Panchayat Raj Minister Danasari Anasuya, gram panchayats, and the Telangana government are involved.
- What
- The Assembly passed an amendment allowing gram panchayat funds to be deposited directly in nearby banks or post offices for quicker access.
- When
- The amendment was passed on Thursday in 2026; the pending ₹619 crore relates to the 2025-26 year.
- Where
- The bill was passed in Hyderabad and applies to gram panchayats across Telangana.
- Why
- The stated purpose is to reduce treasury-related delays, improve service delivery, and allow panchayats to meet local obligations more quickly.
Government and Panchayat View
Concerns and Pending Issues
How funds should be handled
Government and Panchayat View
The Telangana government says direct deposits in nearby banks or post offices will reduce treasury delays and improve village service delivery.
Concerns and Pending Issues
The existing treasury process had been required for gram panchayat money, and the amendment changes that arrangement; the articles do not report a formal opposition response.
Reasons for funding problems
Government and Panchayat View
Minister Danasari Anasuya attributed delays to the treasury system and said the previous government had neglected or discriminated against panchayats.
Concerns and Pending Issues
The articles also identify delayed Central funding, new Central policies, and increased financial burdens as continuing obstacles; no response from the previous government or Central government is reported.
Forest-road construction
Government and Panchayat View
The state government says it will prepare for a meeting with the Union forest and environment minister to address clearance hurdles.
Concerns and Pending Issues
Forest-clearance requirements are described as obstacles to building roads to forest villages and hamlets, but the articles do not provide the Union government’s position.
- Legislation
- Telangana Panchayat Raj (Fourth Amendment) Act, 2026
- Amended law
- Telangana Panchayat Raj Act, 2018
- Fund storage
- Gram panchayat funds may be deposited in nearby nationalized banks, cooperative banks, or post offices
- Local spending
- Funds may be used according to local needs after a gram sabha resolution
- Pending funds
- Telangana is awaiting ₹619 crore from the Centre for 2025-26
- Monthly spending
- The minister said the state is spending ₹50 crore monthly for gram panchayats
- Other pending issues
- The government will soon decide on deputy sarpanch cheque authority and discuss forest-road clearances
