Telangana faces Rs 10,000 crore employee dues burden as 28,000 set to retire
The Telangana government faces a growing financial burden, with nearly Rs 10,000 crore in employee and retirement-benefit dues pending. More than 28,000 government employees are expected to retire by 2028, potentially adding nearly Rs 9,000 crore annually.
Hyderabad: The Congress government is facing a growing financial burden, with nearly Rs.10,000 crore in dues pending towards government employees and retirement benefits. Employees and pensioners have already taken to the streets, demanding that the government clear the pending dues.
Amid these demands, the State government is set to face another financial challenge, with a large number of employees due to retire over the next three years.
Chief Minister A Revanth Reddy has on several occasions admitted that the State government was finding it difficult to pay salaries on the first day of every month.
After signing agreements with banks in June this year to extend accidental insurance coverage to employees, the Chief Minister had also pointed out that retirement benefits of nearly Rs.1,000 crore a month were adding to the existing financial burden. Though he said the government was releasing Rs.750 crore every month towards retirement benefits, there was still a deficit of around Rs.250 crore.
The situation is likely to become more challenging as more employees retire in the coming years. According to rough estimates, over 28,000 government employees are expected to retire over the next three years.
By the end of 2026, around 9,700 employees are expected to retire. Another 9,400 employees are likely to attain superannuation age in 2027, while around 8,700 employees are expected to retire in 2028.
At the time of retirement, the government has to pay gratuity, pension, leave encashment and other benefits. Together, these are estimated to impose an annual financial burden of nearly Rs.9,000 crore on the State exchequer.
The State government maintains that a substantial amount is being allocated in the annual budget to ensure timely payment of retirement benefits. However, employees contend that pending retirement benefits are piling up with each passing year.
Of the funds allocated in the annual budget, nearly 50 per cent has already been spent on retirement benefits in the first four months of the current financial year.
Adding to the pressure, the government is also due to implement the recommendations of the Pay Revision Commission (PRC). The term of the second PRC is set to expire on September 30. If a new PRC is implemented, expenditure on salaries and retirement benefits is likely to rise substantially.
Against this backdrop, Chief Minister Revanth Reddy continues to assert that he has been working for 18 hours a day. He has also appealed to employees to work an extra hour every day, assuring them that the government would fulfil their requirements if its revenues increase.
