Hyderabad: Deputy Chief Minister Mallu Bhatti Vikramarka said the Telangana government is committed to the welfare of state employees and is prioritising the monthly clearance of pending arrears.
Responding to questions in the Legislative Council on Friday, Bhatti said the administration is working to restore the financial system derailed by the previous government. He assured that all employee dues would be cleared in a systematic and timely manner.
“Failure to credit salaries on time pushes employees into debt. EMIs bounce, and banks treat them as defaulters,” he noted. He recalled that under the previous regime, salaries were sometimes delayed until the 18th of the month.
Employee arrears clearance prioritised amid financial overhaul
Since the new government assumed office, salaries have been paid on the first of each month without delay, Bhatti said. This decision, taken after consultations with employee unions, reflects the government’s view of employees as partners in administration.
He criticised the previous government for increasing the retirement age by three years instead of settling employee benefits. “Had the retirement age remained unchanged, 26,854 employees would have retired between 2021 and 2023. Only 6,354 actually did,” he said, calling it a deliberate move to postpone financial obligations.
According to the Financial White Paper, the former administration left ₹43,154 crore in unpaid bills, including ₹4,575 crore in employee dues. Since taking office, the present government has disbursed ₹1,752 crore in pension payments. As of now, employee-related pending bills total ₹6,244 crore.
“To address this, we are releasing ₹700 crore per month exclusively for employee arrears clearance,” Bhatti said.
The Deputy Chief Minister described withholding medical bills as “inhuman.” He stated that over ₹200 crore in pending medical claims had been cleared and monthly disbursement would continue. Additionally, ₹560 crore in supplementary salary dues has been fully paid. Going forward, these payments will also be handled on a regular schedule.
A Joint Staff Council has been formed to address employee concerns. Bhatti also said the government had invited employee representatives to help design a new health scheme for staff and pensioners.
“Even ensuring salary disbursal on the first is a significant achievement under the current financial conditions,” he added. He cautioned that delays in salary payment force employees to borrow at high interest rates, worsening their financial stress.