It is an open secret in political circles that the AP government has been struggling with a deadlock financial crisis. Against this backdrop, the state government which tried to draw panchayat funds to meet the state’s needs received a jolt from the central government. The central government raised objections as the state government has already used 1415th Economic Community funds under the name of pending electricity bills.
It was brought to the notice of the central government that Rs 944 crore of Finance Commissions funds were diverted by the Finance Ministry from the Panchayat accounts a week ago. Following this, the centre instructed the government to start a new account in panchayat’s name to be sent to the Finance Commission. The AP government has directed the Panchayati Raj Commissioner, ZP, CEOs, and district panchayat officers to follow the Centre’s instructions.
The AP government has directed the authorities to take steps to ensure that the accounts are opened in Union Bank in the name of the Gram Panchayat so that the Panchayats can open accounts immediately.
