CM reform to allow panchayats to credit own source income to bank accounts

A. Revanth Reddy Photo Credit: SUSHIL KUMAR VERMA

The state government led by Chief Minister A. Revanth Reddy embarked on another reform aimed at strengthening Panchayat Raj institutions.

The government has decided to amend Section 70(3) of the Telangana Panchayat Raj Act, 2018, which allows gram panchayats to deposit their own source income in a separate bank account instead of depositing it in the state treasury. The chief minister announced the decision to revive the old system, which was allegedly diluted by the previous government and negatively affected the independence of gram panchayats.

At the same time, he directed the officials concerned to ensure that the salaries of over 50,000 village panchayat employees are immediately credited on the first day of the month. “Gram panchayat employees should also be paid on the first day of every month like IAS officers,” he said.

The state government would release ₹50 crore every month to the Panchayat Raj department, which would enable it to pay salaries to employees on time. He directed officials to ensure timely payment of salaries to all employees, including those hired on contract and outsourcing basis. “Even a single day’s delay will not be tolerated,” he asserted.

Mr. Revanth Reddy suggested changes in the method of payment of pensions to the beneficiaries and asked the officials to credit the amount in the accounts of the beneficiaries instead of disbursing through the postal department. Payment of pensions should be streamlined through voter ID, SEEEPC data to ensure that only eligible people receive benefits. As the government has decided to sanction two million new pensions, steps should be taken to prioritize single beneficiaries.

Published – 26 May 2026 21:54 IST