The nomination process for the Telangana Gram Panchayat elections is currently underway. The tenure of gram panchayat governing bodies ended in January last year, followed by the imposition of special officer administration from February. Later, the terms of Mandal Parishads and Zilla Parishads expired in July, and Municipal governing bodies completed their tenure this January. As a result, all local bodies in the state are being run by special officers. With nominations ongoing, the Panchayat elections are scheduled to be held next month.
Villages in Telangana receive development funds from both the Central and State governments, in addition to revenue generated through local taxes. According to Article 243 (H) of the Panchayat Raj Act, Panchayat income sources include government grants, taxes on industries within village limits, and levies on festivals and fairs. At the local level, Panchayats collect revenue through house tax, property transfer tax, vehicle tax, advertisement tax, weekly markets, cattle fairs, slaughterhouse charges and profession tax. The funds collected are deposited in the treasury and used for Panchayat maintenance, sanitation workers’ salaries, government programme management and minor repair works.
To ensure the systematic use of funds, Panchayats prepare annual tax demand projections on house tax, markets, licences and other sources. Apart from government grants, they are expected to contribute to village development through the taxes collected within their jurisdiction. Under the Five-Year Planning framework, NITI Aayog releases population-based allocations annually to strengthen local bodies. These funds support essential services such as electricity bill payments, drinking water supply, sanitation, CC road construction and drainage works.
In earlier years, funds were routed through the State government, which then transferred the allocations to Panchayats. However, citing delays in disbursement by states, the Central government began depositing grants directly into specially designated Panchayat bank accounts over the past five years. Funds are released in four instalments each financial year. Under the 15th Finance Commission, Panchayats receive ₹5 lakh to ₹40 lakh annually depending on population, along with State Finance Commission allocations. These funds are now expected to be utilised for effective governance and improving infrastructure in villages.