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Telangana defers partial salary for govt staff due to poor revenues

KV Kurmanath Hyderabad | Updated on May 28, 2020 Published on May 28, 2020

With revenues failing to improve despite relaxing of the lockdown norms, the Telangana government has decided to continue with the salary deferment of its employees and people’s representatives for May.

government employees will get 50 per cent less of their (May) salary, while pensioners will get 25 per cent less pension. The all-India services staff will get 60 per cent less pay, while the contract and outsourcing employees will see a deferment of 10 per cent of their salary.

The government announced this decision on Wednesday after taking stock of the financial situation.

As against the average monthly revenues of ₹12,000 crore, the State could rake in only ₹3,100 crore, including the ₹982 crore that it gets from the Centre under devolution of taxes.

“The salary outgo itself is put at about ₹3,000 crore if paid in full,” a government official said, explaining the rationale behind the decision.

“Though the lockdown norms have been relaxed, there is not much growth in revenues. Besides, the State has to service debts (₹37,400 crore annually),” he said.

The Centre had not responded positively to the State’s request to reschedule the loans. “The government could not borrow more because of the riders that the Centre attached while increasing the FRBM (Fiscal Responsibility and Budget Management Act) limits,” he said.

The monthly financial assistance of ₹1,500 (announced during the lockdown) to the poor will be stopped from June. “As the economy is opened, they can find livelihood options,” a government statement said.

Published on May 28, 2020
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