Karnataka government to move Supreme Court over withheld Panchayat grants

The Karnataka government has decided to approach the Supreme Court to challenge the central government's decision to withhold ₹2,186.20 crore in grants intended for the state's gram panchayats. These funds, recommended by the 15th Finance Commission for the 2025-26 financial year, are critical for rural development and basic services.

Rural Development and Panchayat Raj Minister Eshwar B. Khandre noted that the withholding of these funds comes at a difficult time, as the state faces drought-like conditions. Deficient rainfall has led to drinking water shortages in 710 villages and has negatively impacted agricultural productivity. The state is currently managing water shortages through tankers and private borewells in various regions.