Andhra Pradesh Finance Minister P Keshav announced that the state government plans to allocate Rs 14.52 billion to enhance the efficiency of local bodies at both village and ward levels. This decision comes in accordance with instructions from Chief Minister N. Chandrababu Naidu, who has directed that Rs 9.98 billion be provided to gram (village) panchayats and Rs 4.54 billion be allocated to urban local bodies.

In a press release, Keshav explained that Naidu's directive was aimed at accelerating development activities and improving the financial stability of local bodies through this substantial fund release. The Finance Minister highlighted that the funds would be instrumental in supporting on-going and future projects at the grassroots level.

Keshav also took the opportunity to criticise the previous YSR Congress Party (YSRCP) administration, alleging that it had undermined the effectiveness of local bodies. He asserted that under the leadership of the Telugu Desam Party (TDP), the government is dedicated to reinforcing these local institutions. Furthermore, Keshav claimed that the YSRCP government had improperly redirected funds allocated by the 15th Finance Commission, suggesting that the current administration's efforts are aimed at rectifying past mismanagement.