Telangana Chief Minister Revanth Reddy has said his government is faced with a cash crunch due to the debt burden and others and that it has paid salaries to employees after obtaining a “hand loan” of Rs 4,000 crore from the Reserve Bank of India (RBI).
Speaking in the Legislative Council recently, he urged the government employees to cooperate with regard to payment of Dearness Allowance (DA) and others in view of the difficult cash situation though salaries would be paid on the first of every month.
"It becomes difficult to pay salaries on the first of every month. I appeal to our government employees from here to serve the government, taking salaries on the first of every month. Sometimes, (we have to take a) hand loan from the Reserve Bank. I paid salaries on the first by taking a hand loan of Rs 4,000 crore," he said.
Challenging to allocate funds for welfare programmes: CM
Noting that the government belongs to the employees, he said he would place all the facts and figures with regard to the financial situation before them so that they can give their views on payments. The DA and other benefits are the right of the employees, he added.
Speaking at an event here on March 12, Reddy had said the lion's share of the state's revenue is spent every month on salaries, pensions, and servicing the huge debt incurred during the previous BRS regime, making it challenging to allocate funds for welfare programmes.
Another Rs 6,500 crore is used to service the debt incurred during the BRS regime, leaving the government with only Rs 5,000 crore to Rs 5,500 crore, he said. There are around 30 government welfare schemes that require funding every month, in addition to the financial demands of various development projects, he pointed out.
The government is managing the situation through staggered payments to different schemes and programmes, Reddy had said.
(With PTI inputs)