Telangana government staff to get half pay this month too
In May, the government's revenues have been a mere Rs 3,100 crore, which includes the state's share of Rs 982 crore in central taxes
Hyderabad: Reeling under low revenue collection due to the national lockdown, the Telangana government has decided to pay only 50 per cent salary to its employees for the month of May also. It has paid only the half salary for the month of March and April also.
Ministers, MLAs, MLCs, chairpersons of government corporations and urban and rural local bodies members would get 25 per cent of their salaries, while IAS, IPS and IFS officials would get 40 per cent salary. Pensioners would get 75 per cent of their pension, while outsourcing and contract workers would get 90 per cent. The government has also decided to stop the financial aid of '1,500 given to labourers including guest workers as they are getting work after lockdown was eased.
During a review meeting held by chief minister K. Chandrashekar Rao on the economic situation of the state, it was found that there was no substantial increase in revenue in spite of relaxations given to the lockdown.
“The state has to get Rs 12,000 crore revenue every month. But due to the lockdown, the state revenue has declined drastically. In May, the state received Rs 3,100 crore, which includes the state’s share of Rs 982 crore in the central taxes,” Rao said.
While there is no uptick in the state’s revenue, the chief minister said that the state government has an obligation to pay Rs 37,400 crore a year for debt servicing.
He blamed the Central government for the plight of the Telangana government as it did not alter the state’s loan repayment schedule. Though the Centre increased the borrowing limits of state governments, the Chief Minister said conditions imposed for that were not acceptable for the state.
The chief minister said the state government needs Rs 3,000 crore to make full payout to government employees and pensioners. If the full salaries and pensions were paid, Rao said the state treasury will go empty.
The meeting has also decided to promptly pay loan instalments, Asara pensions, supply 12-kg rice to poor in the month of May also.