The Telangana government on Wednesday decided to continue 50 per cent salary cut for the employees for the month of May in view of the state's revenues reaching rock-bottom due to Covid-19 induced lockdown.
The deduction of 75 per cent in the salaries of the public representatives, 60 per cent of the All India Service officers, 50 per cent of state government employees, 25 per cent of the pensions will continue in May.
For outsourcing and contract workers, there will be a 10 per cent cut.
The decision was taken at a meeting chaired by Chief Minister K. Chandrashekhar Rao at his official residence Pragati Bhavan.
The government also decided not to pay Rs 1,500 cash to the below poverty line families. A statement from the Chief Minister's office said as labourers and workers will get daily work in view of the relaxations in the lockdown, the cash assistance will not be provided from May.
However, supply of 12 kg free rice will continue during May. The government also decided to pay social security pensions without any change.
The Chief Minister said the state should get Rs 12,000 crore income every month but it fell flat due to the lockdown. In May, the state received Rs 3,100 crore, which includes the state's share in the central taxes (Rs 982 crore).
He noted that though the government had given some relaxations in the lockdown the income did not increase substantially.
"We have to cater to all our needs with this meagre income. The state government has to pay debt instalments to the tune of Rs 37,400 crore per year. These instalments to be paid every month without fail. The state has requested the Centre to reschedule the loans but the Centre did not take any action in this regard. With this, the state has no option but to pay the instalments," he said.
The Chief Minister said though there was an increase in the FRBM limits by the Centre, additional loans could not be raised due the conditions imposed.
"If salaries of the employees and pensions are paid, the expenditure would be more than Rs 3,000 crore. The entire treasury will be empty and henceforth no payment can be made nor any work can be undertaken. Hence we have to adopt a proper strategy," Rao said.