The Chandrababu Naidu government in Andhra Pradesh has delivered a major setback to sarpanches, MPTCs, and ZPTCs by issuing fresh orders restricting the use of 15th Finance Commission funds allocated to local bodies.
Officials have directed that these funds should not be utilised until further instructions are issued, triggering strong protests from elected representatives at the grassroots level.
According to sources, the government has 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 the utilisation of funds, warning of strict action against anyone violating the directive.
The move comes amid concerns that the tenure of sarpanches, MPTC, and ZPTC members is set to end in about three months. With their term nearing completion, several panchayat heads are reportedly attempting to withdraw and exhaust available funds from accounts.
Complaints have surfaced that some sarpanches are pressuring secretaries to clear old bills and, in some 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.
Secretaries have been instructed not to process or release any bills related to local bodies and to refrain from taking any decisions until further government orders are issued. Officials have begun implementing these instructions across districts.
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.