Karnataka risks Rs 18,948 crore grants as local body polls face delays

Karnataka is grappling with financial challenges due to significant delays in conducting elections for zilla panchayats (ZPs), taluk panchayats (TPs), and urban local bodies (ULBs), including the Bruhat Bengaluru Mahanagara Palike (BBMP). The state faces a 16-month deadline to complete these polls to remain eligible for its share of Rs 18,948 crore allocated by the 15th Finance Commission for 2021-26, according to a report by The Times of India.  

 

Of this allocation, Rs 12,539 crore is designated for rural local bodies (RLBs) and Rs 6,409 crore for ULBs, in 65:35 ratio, the report said. However, the Finance Ministry has withheld Rs 2,842 crore — 15 per cent of the 2023-24 allocation — due to the stalled elections. While gram panchayats, which are functional, continue to receive funds, allocations for ZPs, TPs, and BBMP remain frozen as these councils cease to exist upon the expiry of their terms.  

 

 

Delayed elections across local bodies  

 

Elections for BBMP have been pending since September 2021, while ZP and TP polls have been overdue since May 2022. Polls for Shivamogga Mahanagara Palike and Mysuru City Corporation were completed only in November 2023, while elections for Tumkur and Davanagere city corporations were slated for January and February 2025, respectively.  

 

Rural development and panchayat raj minister Priyank Kharge acknowledged that the lack of functioning councils in ZPs and TPs has hindered access to funds. He assured that efforts are being made to expedite elections, the news report mentioned. Meanwhile, the 5th State Finance Commission, led by former Lok Sabha member C Narayanaswamy, has cautioned the state government about the risk of lapsing funds. The State Finance Commission is preparing its second report for the financial year 2025-26, expected by December, to emphasise the need for timely elections.  

 

Narayanaswamy noted that securing the allocated funds would require completing the pending elections before March 2026 and expressed hope that the situation would be resolved.  

 

ZP-TP elections set political stage

 

The ZP-TP elections pose significant political risks for the Congress government, as they are often seen as a precursor to assembly elections. Covering all districts, these elections could amplify anti-incumbency sentiments amid corruption allegations. The BJP, already gearing up for BBMP elections, is expected to mount a statewide challenge.  

 

On the legal front, the Karnataka State Election Commission has filed a contempt petition in the high court, accusing the state government of failing to notify reservations for ZP-TP constituencies after delimitation. The high court is scheduled to hear this matter on November 27, while the Supreme Court is set to address a petition demanding early BBMP elections on November 25.  

 

State election commissioner GS Sangresh expressed optimism about the legal outcomes, stating that the Karnataka State Election Commission is prepared to conduct the polls promptly and hopes for favourable rulings.