KCR says no cash to migrants, salary cuts a must for employees

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KCR review meeting - File photo

Chief Minister Chandrashekhar Rao has announced certain economic measures such as not to pay Rs 1500 as covid relief to the poor and migrant labourers this month besides imposing salary cuts among political leaders and government employees.

He was holding a review meeting at Pragathi Bhavan here today on the State’s economic situation. He discussed the strategy to be planned due to the steep decrease in the state’s income. Chief Secretary to the government Somesh Kumar, Principal Secretary (Finance) Ramakrishna Rao, CMP Principal Secretary Narsing Rao and other senior officials participated.

He said: “Telangana state should get Rs 12,000 Crore income every month. Bu the entire income fell flat due to the lockdown. In May month, the State received Rs 3,100Crore, which includes the state’s share in the central taxes, which is Rs 982 Crore. Though the state government has given some relaxations to the lockdown guidelines, the income did not increase substantially. Income from Transport, registration and other departments was also not much. As a result, the government received only some income. 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 re-schedule 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.

Though there was an increase in the FRBM Limits by the Centre, the conditions imposed by the Central government additional loans could not be raised. If the salaries of the employees and pensions were paid, the expenditure would be more than Rs 3000 Crore. The entire treasury will be empty. Henceforth no payment can be made nor any work can be undertaken. Hence we have to adopt a proper strategy, “ the CM said.

Due to the severe economic situation in the State, the government has taken the following decisions.

  • To pay promptly the loan instalments.
  • To pay Asara pensions as it is
  • To give the poor 12 Kgs of rice during May in the backdrop of the lockdown.
  • Due to relaxations are given to the lockdown guidelines, labourers and workers will get their daily work; hence Rs 1500 cash will not be paid to them from May.
  • 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 the government employees salaries, 25 per cent of the pensions will continue in the month of May also. For outsourcing and contract workers, there will be a 10 per cent cut in their salaries in May too.