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VOL. I · EST. 11.2025 
SatyaDheesh
सत्याधीश
India's Ground Truth Record
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Telangana government allows gram panchayats to manage revenue through dedicated bank accounts

GS2Polity · Governance · IR· Panchayati Raj & urban local bodies· Prelims + Mains·

Fiscal decentralization and local body empowerment: a relevant GS2 topic for decentralised governance.

Why in news

The Telangana government amended the Telangana Panchayat Raj Act, 2018, to allow gram panchayats to manage their own revenue through dedicated bank accounts instead of the government treasury.

Background

The Panchayat Raj Department directed District Panchayat Officers to open zero-balance savings accounts at State Bank of India and Union Bank of India. This initiative aims to decentralize revenue management for local bodies.

Facts for Prelims

  • Act / BillTelangana Panchayat Raj Act, 2018
  • FactGram panchayats are permitted to open zero-balance savings accounts for revenue management

Prelims practice question

Which act was amended by the Telangana government to allow gram panchayats to manage revenue through dedicated bank accounts?

  1. (a)Andhra Pradesh Panchayat Raj Act, 2019
  2. (b)Telangana Panchayat Raj Act, 2018
  3. (c)Karnataka Panchayat Raj Act, 2017
  4. (d)Maharashtra Panchayat Raj Act, 2015
Show answer

Answer: (b) Telangana Panchayat Raj Act, 2018 — The Telangana government amended the Telangana Panchayat Raj Act, 2018 to allow gram panchayats to manage revenue through dedicated bank accounts.

For Mains

Q. Discuss how the decentralization of fiscal powers to gram panchayats can enhance local governance and grassroots development in India.

Dimensions to cover in your answer

  • Fiscal autonomy: Directer revenue management reduces bureaucratic delays in local infrastructure projects
  • Accountability gap: Risks of fund misappropriation without robust digital auditing and oversight mechanisms
  • Capacity constraints: Need for training local bodies in financial management and auditing standards

Keywords: Fiscal Decentralization · Grassroots Governance · Financial Autonomy · Local Body Empowerment · Treasury Management

Read the full news →Report a mistake in this noteHow notes are madeSource: The Hindu ↗Also: GS3 · Fiscal policy, budget & taxation (GST)

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This note is generated automatically from SatyaDheesh's news feed and mapped to the UPSC CSE syllabus. Check facts against the original report or PIB before using them in an answer.