Kerala Kaumudi Online
Sunday, 09 August 2020 2.20 AM IST

Telangana government employees to get 50% salary cut this month


HYDERABAD: As lockdown got extended for the third time this month, cash-strapped Telangana government has decided to continue 50% salary cut for its employees for May. Revenues of all state governments have been hit hard due to the lockdown.

"If salaries of the employees and pensions are paid, the expenditure would be more than ₹3,000 crore. The entire treasury will be empty and henceforth no payment can be made nor any work can be undertaken. Hence we have to adopt a proper strategy," Telangana Chief Minister K. Chandrashekhar Rao said.

The Telangana government will cut 75% salaries of public representatives, 60% of the All India Service officers, 50% of state government employees and 25% of pensions for May. For outsourcing and contract workers, there will be a 10% pay cut.

The government also decided not to pay ₹1,500 cash to the below poverty line families. A statement from the Chief Minister's office said as labourers and workers will get daily work in view of the relaxations in the lockdown, the cash assistance will not be provided from May.

However, supply of 12 kg free rice will continue during May. The government also decided to pay social security pensions without any change.

The Chief Minister said the state should get ₹12,000 crore income every month but it fell flat due to the lockdown. In May, the state received ₹3,100 crore, which includes the state's share in the central taxes ( ₹982 crore).

He noted that though the government had given some relaxations in the lockdown the income did not increase substantially.

"We have to cater to all our needs with this meagre income. The state government has to pay debt instalments to the tune of ₹37,400 crore per year. These instalments to be paid every month without fail. The state has requested the Centre to reschedule the loans but the Centre did not take any action in this regard. With this, the state has no option but to pay the instalments," he said.

The Chief Minister said though there was an increase in the FRBM limits by the Centre, additional loans could not be raised due the conditions imposed.

Lorem ipsum dolor sit amet
consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat.
We respect your privacy. Your information is safe and will never be shared.