For the third month, Telangana employees face pay cuts as coffers stay dry
Government employees and pensioners in Telangana will continue to face salary cuts ranging from 10 per cent to 60 per cent for the third consecutive month because of severe financial crunch in the state on account of lockdown to contain the spread of Covid-19, according to a statement for the chief minister’s office (CMO).
While there will be 50 per cent salary cut for all state government employees, all India service officers will continue to face 60 per cent salary cut and outsourced and contract workers will have 10 per cent cut in their salaries for May.
All the elected public representatives – from sarpanches to chief minister K Chandrasekhar Rao – will face a deduction of 75 per cent in their salaries. The 25 per cent deduction for the government pensioners will also continue.
A decision to this effect was taken at a high-level review chaired by chief minister K Chandrashekhar Rao at Pragathi Bhavan in the evening.
An official release from the chief minister’s office said people below poverty line would not be getting direct cash transfer of Rs 1,500 per family from this month, since they are able to go to their daily work because of relaxation of lockdown guidelines. “However, these families will continue to get 12 kg of rice free of cost,” the official statement quoting the chief minister said.
The meeting decided to continue payment of pensions to all the eligible persons and also pay loan installments to various lending agencies.
Stating that the financial position of the state was precarious even after the relaxation of lockdown norms in most parts of the state, the chief minister said as against the expected revenue of Rs 12,000 crore to the state every month, it could get only Rs 3,100 crore, including the state’s share in the central taxes, which is Rs 982 crore. “If we have to pay full salaries to the employees, we require Rs 3,000 crore and the entire treasury will go empty,” he said.
KCR said the state government had to pay debt installments of Rs 37,400 crore per year without fail. “The State has requested the Centre to re-schedule the loans, but there was no response. Though there was an increase in the FRBM Limits by the Centre, the state could not raise additional loans due to conditions imposed by the Centre,” he said.
Reviewing the Covid-19 pandemic in the state, the chief minister said there was no need for any panic, as the spread of the virus was not on an alarming scale. However, the people should be cautious and alert. “Even if there is an increase in the positive cases, the medical and health departments are ready to offer medical services to any number of cases,” he assured.
He said the death rate in Telangana was 2.82 per cent against the country rate of 2.86 per cent and most of them had history of other ailments. He urged the people to take personal precautions though there was relaxation in the lockdown guidelines.