Salaries Eating Half of Telangana Revenues!

Thanks to the series of pay hikes being rolled out by the Chief Minister K Chandrasekhara Rao, the salary bill of Telangana is mounting and is eating about half of the state revenues. The annual salary bill was Rs 18,400 crore when the state was formed in 2014.

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This increased to Rs 25000 crore in two years and is now touching Rs 30000 crore, putting enormous pressure on the finances. KCR had announced a 43 percent fitment for 3 lakh employees and 1.5 lakh pensioners in March 2015, to be paid with retrospective effect from June 2014.

This has got a burden of Rs 6500 crore per year on the state’s exchequer. KCR also announced a 44 per cent fitment for 57,000 RTC staff, imposing an additional burden of Rs 800 crore per year. Four DAs were announced later to the government employees and now salary hikes were given for contract lecturers, VROs, VRAs, Anganwadi workers, and ASHA workers.