HYDERABAD: In an unprecedented move, the State government has decided to impose a 50 per cent cut in the salaries of its employees in the wake of lockdown across country, which had an adverse impact on the State’s finances. The salaries of Chief Ministers, Ministers, MLAs and MLCs would also be cut by 70 per cent.
Chief Minister K Chandrasekhar Rao took a decision to this effect after a high-level meeting held at Pragathi Bhavan on Monday.
However, the decision is applicable only for the month of March. Asked whether the cut would be imposed in subsequent months or not, a top official said that it would depend on the financial situation.
There was no clarity when the State government would repay the balance amount to the employees. “When the remaining salary amount will be paid will depend on how the financial situation pans out,” an official told Express.Due to the closure of all the business establishments and industries, the government’s revenues have suffered. Besides, the lockdown period is extended up to April 15.
“In this backdrop, the State government has decided to act in a cautious manner. After reviewing the State’s financial situation, the government has decided to impose cuts in the salaries of government employees and elected representatives,” an official release from CMO said.
Though, the economic slowdown followed by lockdown impacted all the States and the Central government, the Telangana is the first State to impose a cut in the salaries of its employees. The monthly salary bill of the State is `2,500 crore. The total workforce in the State is around four lakhs, which includes the pensioners.