₹2,186.20 crore dues from Centre adding to financial distress of gram panchayats in Karnataka, says Minister

Eshwar Khandre | Photo Credit: File Photo Acknowledging that many gram panchayats in the State are facing financial problems, Rural Development and Panchayat Raj Minister Eshwar Khandre on Wednesday accused the Centre of meting out injustice towards Karnataka by not releasing ₹2,186.20 crore recommended by the 15th Finance Commission to gram panchayats in the State for 2025-2026.“It is true that most of the 5,927 gram panchayats in the State are facing financial problems. The Centre, citing technical reasons, has not released the money. However, when similar technical issues have been reported in other States, money has been released,” the Minister told the Legislative Council during a discussion on drought and farming distress.Barring gram panchayats in and around Bengaluru that are collecting property tax to the tune of ₹8 crore to ₹10 crore annually, most of the gram panchayats, especially in North Karnataka and Kalyana Karnataka region, are facing financial problems, he said, adding that the gram panchayats receive annual funding of between ₹20 lakh and ₹40 lakh, depending on the population. “I have raised the issue with Union Ministers Lallan Singh, Shivaraj Singh Chauhan and V. Somanna.”When asked about the technical issue, department sources said that the release and expenditure by gram panchayats during 2023-2024 and 2024-2025 are not reflecting in the e-Gram Swaraj portal properly. “The gram panchayats have to take receipts of the funds received, which many have not done. The State government has released funds and to this effect it has provided treasury statements. Despite the evidences, the Centre is not releasing funds. However, most States that have faced this issue have received funding for 2025-2026,” a department official said.Severe water scarcity in villagesWith underground water sources drying up, the number of villages facing water scarcity is going up. According to RDPR Minister Eshwar Khandre, over the last 10 days the number of villages facing water scarcity is going up.“Every day 10 to 30 villages are reporting water scarcity. Currently, there are 799 villages with water scarcity, and the government is supplying water through tankers,” he told the Legislative Council.He said in recent days, more villages in Bengaluru South, Tumakuru, and Chitradruga districts are reporting water scarcity. Published - September 23, 2026 08:10 pm IST