The Telangana government on Wednesday said it would continue with salary cuts of employees for May as well since the state's financial position is still not right.
The government has been deducting the salaries of public representatives by 75%, all-India services officers by 60%, general employees by 50%, pensioners by 25% and for outsourcing and contract workers by 10%.
The decision was taken after a review meeting of Chief Minister K Chandrashekar Rao with officials of the finance department.
Rao said the state should get Rs 12,000 crore income every month but received only Rs 3,100 crore during the lockdown, which includes its share of Rs 982 crore in central taxes.
“Though the state government has given some relaxations to lockdown guidelines, the income did not increase substantially. Income from transport, registration and other departments was also not up to the mark,” he said.
Rao said the state government has to pay installments on debts to the tune of Rs 37,400 crore per year.
“We have requested the centre to re-schedule the loans. But they did not take any action in this regard. Though there was an increase in the FRBM Limit by the Centre, the conditions imposed by the central government could not be raised,” said Rao.
“If the salaries of the employees and pensions paid fully, the expenditure would be more than Rs 3,000 crore. The entire treasury will be empty. Henceforth no payment can be made nor can any work be undertaken. So we have to adopt a proper strategy,” he said.
Rao said the old-age pension will be paid in full.
As the relaxations are given in the lockdown guidelines, labourers and workers will get daily work and Rs 1,500 cash will not be paid from this month.
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