Telangana government employees will have to suffer a salary cut for third consecutive month following the revenue loss resulting out of the COVID-19 lockdown. The K Chandrashekar Rao government had started slashing salaries from March to deal with the impact.
After a review meeting on the state’s economic situation at the Pragati Bhavan on Wednesday, CM Rao decided that the deduction of 60 per cent pay of the All India Service officers, 50 per cent of the government employees’ salaries, 25 per cent of the pensions will continue in the May payments too.
However, in neighbouring Andhra Pradesh, CM Jaganmohan Reddy last week directed officials to pay full salaries to government employees for the month of May. A part of March and April salaries was deferred for Andhra employees too.
In an order issued earlier for the purpose, the Telangana government mentioned the cut as a deferment i.e. to be paid later. While the cut is 75 per cent in case of the public representatives like MLAs, for outsourcing and contract workers, it is 10 per cent.
While Aasara pensions for the old, widows, physically challenged etc. beneficiaries would be paid as usual and the poor would get 12 kgs rice in May too, the CM said that the Rs 1500 cash will not be given to the jobless laborers for May “since lockdown relaxations provide them work.”
According to the CMO, Rao discussed with officials the strategy to face the steep fall in the state’s income.
“Telangana state accrues Rs 12,000 crore income every month, which fell flat due to the lockdown. In May, the state received Rs 3,100 crore, including the share in the central taxes of Rs 982 crore. Though relaxations were made to the lockdown, income has not increased substantially. Income from transport, registration and other departments is not much,” the CM said.
According to Rao, the state has debt installments to the tune of Rs 37,400 crore per year - to be paid every month without fail. “Though the state requested the Centre to reschedule the loans, the Centre did not take any action in this regard. So, the state has no option but to pay the installments.”
“If employee salaries and pensions are paid (in full), that expenditure would be more than Rs 3000 crore and the treasury will be empty and no (other) payment can be made nor any work undertaken. So, we have to adapt a proper strategy, “the CM said.