The Chandrababu Naidu government in Andhra Pradesh has issued fresh orders restricting the use of 15th Finance Commission funds allocated to local bodies, delivering a major setback to sarpanches, MPTCs, and ZPTCs. Officials have directed that these funds should not be utilised until further instructions, triggering strong protests from elected representatives at the grassroots level.
Sources indicate that the government instructed officials to prevent the use of already released 15th Finance Commission funds in gram panchayats and mandal parishads. Acting on these directions, officials in several districts have issued formal orders instructing panchayats and mandal parishads to temporarily suspend fund utilisation, warning of strict action against anyone violating the directive.
The move comes as the tenure of sarpanches, MPTC, and ZPTC members is set to end in about three months. With their term nearing completion, several panchayat heads were reportedly attempting to withdraw and exhaust available funds from accounts. Complaints had surfaced that some sarpanches were pressuring secretaries to clear old bills and, in certain cases, allegedly generating bills for works that were never executed. These complaints prompted the Panchayat Raj and Rural Development Commissionerate to go on alert. During a recent teleconference with Zilla Parishad CEOs and district panchayat officers, senior officials ordered an immediate halt to the utilisation of Finance Commission funds, and districts have begun implementing these instructions.
The decision has sparked outrage among local body representatives, who argue that the freeze has brought developmental activities to a standstill. They contend that essential works at the village level are being affected and accuse the government of undermining grassroots governance at a critical juncture.
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