Hyderabad: The Government of Telangana has no budget to pay the employees’ salaries at the end of this month. The officials of various departments are expressing their deep concern over the bad financial condition of the state government and the central government’s refusal to allow borrowings. They are apprehensive that paying the salary at the end of the current month could become a problem for the state government.
The Reserve Bank of India (RBI) denied permission to the Telangana government to participate in the auction for open market borrowings held on May 17. Now, the official sources admit that the State government may have to go in for a drastic cut in expenditure on some of the populist schemes.
The state government has taken steps to increase State revenues but there are no significant results to its efforts. After the central government’s refusal for bonds auction and borrowings, the financial situation has become critical for the state government.
It is being said that various state departments are being told to increase their revenue to pay up the salaries of their employees.
Municipalities and departments of revenue, commercial tax, road, and transport, etc. are instructed to increase their revenues to ensure salaries to their employees.
According to sources at the finance department, the files of retiring employees are pending and need approval. Similarly, the terminal benefits of other department employees after their retirement are yet to be expedited.
There are many grievances of those working in the education department and their issues are also to be addressed.
Various employees Unions are watching the state’s financial condition closely and hope that the state will pay the salaries of employees on time.