Telangana ministers to take 50% pay cut to fund pending dues of govt employees

Telangana ministers will take a voluntary 50 per cent pay cut as part of a welfare-linked austerity measure aimed at mobilising funds to clear long-pending dues of government employees.

The decision was taken at a Cabinet meeting chaired by Chief Minister Revanth Reddy on Thursday. According to government sources, the move is part of a broader fiscal strategy to address rising liabilities and ensure timely disbursement of pension and other benefits.

The Cabinet approved a 100-day action plan to clear pending dues, estimated at over Rs 14,000 crore, including retirement benefits and arrears. While Rs 6,200 crore is due to current employees, arrears amounting to Rs 8,000 crore remain to be paid to retired employees.

Officials said the government, facing financial constraints, is exploring additional resource mobilisation measures, including contributions from ministers’ salaries, to expedite payments to retired employees.

The government acknowledged that delays in settling retirement benefits have caused hardship to pensioners and said clearing these dues is a priority. It also plans to consult employee unions and other stakeholders during the implementation process.

The Cabinet also expressed concern over the large pending dues to employees inherited from the previous government, noting that no arrears existed at the time of Telangana’s formation in 2014.

The move is being seen as both a symbolic and financial step by the state government, signaling accountability while attempting to ease pressure on the exchequer.

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