HYDERABAD: Deputy Chief Minister Mallu Bhatti Vikramarka on Monday said the Congress government was considering increasing the monthly allocation for clearing employee arrears from `700 crore to `1,000 crore.
He said the government has been releasing `700 crore every month towards pending retirement benefits since assuming office, and indicated that a policy decision would soon be taken on clearing pending Dearness Allowances (DAs).
The issue triggered sharp exchanges in the Assembly, with BRS members led by Deputy Floor Leader T Harish Rao confronting the government over delays in settling employee dues.
The BRS later staged a walkout, alleging that the deputy chief minister failed to give clear answers on arrears related to the Pay Revision Commission, DA and pension benefits.
Responding, Vikramarka blamed the previous BRS regime for the state’s financial position, saying it had left behind weakened systems and strained finances.
He said three pending DAs from the previous regime had been cleared and that salaries are now being paid on the first of every month, instead of after the 15th earlier. He also alleged that the retirement age was increased from 58 to 61 years to defer the burden of retirement benefits, leaving the present government to settle dues for around 17,000 employees. All pending medical bills, he said, have been cleared.
According to Vikramarka, the government inherited arrears of `40,150 crore, including `4,575 crore in employee-related dues, as detailed in a white paper tabled in the Assembly. He added that about `6,146 crore in employee dues has since been cleared.
Five DAs pending: Harish
Harish Rao, however, remained unconvinced. Raising the issue during Question Hour, he accused the deputy CM of evading direct replies and said five DAs were pending — an unprecedented situation — seeking a clear timeline for their release.
Referring to the PRC, he said its deadline had been extended till March 31, 2026, with only days left, and recalled that the Congress had promised implementation within three months of coming to power. “Even after nearly two-and-a-half years, the PRC has not been implemented,” he said, asking whether the deadline would be extended again.
Harish said many retired employees who had served for decades were facing severe financial hardship, struggling with medical expenses and family responsibilities.