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COVID-19: Telangana cuts all government salaries

Last Updated 30 March 2020, 17:11 IST

In a drastic move – a huge fallout of the COVID-19 outbreak and lockdown, Telangana chief minister K Chandrasekhar Rao has announced a deep cut in all salaries, pensions paid by the state government.

The decision comes on a day when the state recorded its second COVID-19 death and the total positive cases standing at 77. 13 patients undergoing treatment were discharged on Monday.

According to a statement from the Chief Minister’s Office on Monday night, there will be a 75 percent cut in the salaries of the CM, all the ministers, legislators, chairpersons of state corporations and local body representatives.

While the All India Services officers like the IAS, IPS get to take 60 percent less salary, all other gazetted and non-gazetted employees including those working in the PSUs would get only half of their salaries.

Pensions are also cut by half. The reduction in the case of Grade-IV, contract outsourcing workers’ salaries – the lower rung in the state employee’s formation – is 10 percent.

The CMO statement does not clarify on the period of the wage cut.

While announcing several measures to mitigate the COVID-19 caused crisis including rice and monetary support for migrant workers, Rao had on Sunday indicated that the state might find difficulty in paying salaries.

“The Coronavirus is adversely impacting the Telangana state’s economic situation. In this background, the state government had to act with caution and foresight,” the CMO statement said.

Earlier this month, Rao’s government had presented a budget of Rs 1.83 lakh crore expenditure for 2020-21. However, all the major heads of revenue like sales tax, excise and stamps-registration are taking a hit because of the continuing lockdown. Telangana’s annual excise revenue alone is an estimated Rs 16,000 crore – presently nil because of the closure of the wine shops in the state.

The decision on slashing payment of various salaries was taken after a high-level review meeting held on Monday at Pragathi Bhavan, the Chief Minister’s office-residence, on the financial situation of the State.

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(Published 30 March 2020, 17:11 IST)

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