#Coronavirus: This State Is Deducting Up to 75% Salary Of Govt Employees To Save Costs

Indian economy is facing a financial crisis and revenue receipts are adversely impacted due to the COVID-19 pandemic. 

In the wake of the financial burden, the Telangana government has announced major salary cuts to the government employees and officials, pensioners and also contract employees. 

Read to find out more…

Telangana to Cut Government Employees Salary!

Telangana’s Chief Minister K Chandrashekar Rao, on March 29 had indicated that there might be cuts in salaries as the revenue receipts of the state looked low because of the shutdown.

The review of the  financial condition of the state was done at a high review meeting held on March 30 at Pragathi Bhavan and the decisions were taken on payment of various government employees’ salaries. 

The Telangana government gets about Rs 7,000 crore from various sources like GST, property registrations, excise duty and taxes. But due to the nationwide lockdown to curb the spread of COVID-19, the state was able to get about Rs 4000 crore.

On the other hand, this decision has been opposed by BJP calling it a “hasty decision to cut salaries” of the state government employees. BJP said that this is an extreme measure and is not justified at this stage of the crisis.

BJP leader Krishna Sagar Rao said, “Telangana is the only state in India which has resorted to such an unprecedented step to cut salaries of state government employees.” 

How much Pay-Cuts will be Imposed?

As per the announcement by the government, there will be 75% cut in the salaries of the chief minister, state cabinet, MLCs, MLAs, state corporation chairpersons, and representatives of local bodies.

Meanwhile All India Service Officers like  IAS, IPS, IFS and other officers will get a cut of 60% in their salaries.

However, Class-IV employees, outsourcing and contract officers have been spared with a minimal reduction of 10% in their salaries. The class IV retired employees will have a 10% in their salaries. The government pensioners will only get 50% of their pension. 

The salary cut impact will also be faced by the employees of several public sector undertakings (PSUs), institutions who receive government grants.
For all other employees, the cut will be 50%.

No government employee of the state of Telangana is exempted of the pay-cuts!