According to the chief minister’s office (CMO), Telangana government employees and pensioners will continue to face salary cuts ranging from 10 to 60 percent for the third consecutive month because of severe financial crunch in the state on account of lockdown to contain the spread of Covid-19.
How Does It Affect?
As per the reports, there will be a 50 percent salary cut for all state government employees.
While, all India service officers will continue to face 60 percent salary cut and outsourced and contract workers will have 10 percent cut in their salaries for May.
Further, all the elected public representatives ranging from sarpanches to chief minister K Chandrasekhar Rao – will face a deduction of 75 percent in their salaries.
Additionally, the 25 percent deduction for the government pensioners will also continue.
Why Would This Happen?
In the evening, a decision to this effect was taken at a high-level review chaired by chief minister K Chandrashekhar Rao at Pragathi Bhavan.
Further, an official release from the chief minister’s office said that people below poverty line would not be getting direct cash transfer of Rs 1,500 per family from this month, since they are able to go to their daily work because of relaxation of lockdown guidelines.
The official statement quoting the chief minister also said “However, these families will continue to get 12 kg of rice free of cost,”.
Moreover, the meeting decided to continue payment of pensions to all the eligible persons and also pay loan installments to various lending agencies.
The chief minister said that the financial position of the state was precarious even after the relaxation of lockdown norms in most parts of the state.
Further he said that as against the expected revenue of Rs 12,000 crore to the state every month, it could get only Rs 3,100 crore, including the state’s share in the central taxes, which is Rs 982 crore.
“If we have to pay full salaries to the employees, we require Rs 3,000 crore and the entire treasury will go empty,” he added.
Apart from that, the state government had to pay debt installments of Rs 37,400 crore per year without fail as KCR said.
He said, “The State has requested the Centre to reschedule the loans, but there was no response. Though there was an increase in the FRBM Limits by the Centre, the state could not raise additional loans due to conditions imposed by the Centre,”.
While reviewing the Covid-19 pandemic in the state, the chief minister said there was no need for any panic, as the spread of the virus was not on an alarming scale.
Although, the people should be cautious and alert.
He assured, “Even if there is an increase in the positive cases, the medical and health departments are ready to offer medical services to any number of cases,”.
Also, he said the death rate in Telangana was 2.82 percent against the country rate of 2.86 percent and most of them had history of other ailments.
Further urged the people to take personal precautions though there was relaxation in the lockdown guidelines.
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