Minister claims diversion of Central funds in Telangana
Allegation of diversion of 15th Finance Commission grants in Telangana has triggered a demand for a special inquiry into gram panchayat fund use.
- Finance Commission grants to local bodies are designed to support decentralised development and village-level public services.
- Bandi Sanjay Kumar alleged that Telangana used earmarked village development funds for salaries, electricity bills, routine maintenance, and other administrative expenses.
- Bandi Sanjay Kumar sought a special inquiry and stricter monitoring of fund use by the Centre.
Union Minister of State for Home Affairs Bandi Sanjay Kumar has alleged misuse of grants recommended by the 15th Finance Commission in Telangana. He has asked the Union Minister for Panchayati Raj, Rajiv Ranjan Singh, to order a special inquiry into the use of funds meant for village development.
The allegation is important because Finance Commission grants to local bodies are intended to support decentralised development and strengthen Panchayati Raj Institutions. If earmarked funds are shifted to administrative spending, the purpose of fiscal devolution to gram panchayats is weakened.
What Bandi Sanjay Kumar alleged
UPSC can frame the issue around the design of Finance Commission grants, conditionality in grants to local bodies, and mechanisms for audit, monitoring, and accountability in Panchayati Raj institutions. The issue also fits questions on cooperative federalism and the limits of fiscal decentralisation when local bodies face pressure to divert funds to routine expenditure.
Related dispatches
