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Telangana Salary, Pension Bill Set to Near Rs 70,000 Crore
The Telangana government pays money to its workers and retired workers.
It has approved two increases in dearness allowance, or DA, for them.
These increases had been waiting since January 2024.
The decision will cost the government about Rs 2,500 crore more each year.
Telangana pays salaries to nearly four lakh employees and pensions to nearly three lakh pensioners.
The total bill is currently estimated at more than Rs 65,000 crore.
The bill could rise to almost Rs 70,000 crore after the new increases.
Officials say this large fixed expense leaves less money for welfare and development projects.
Employee groups are also asking for the remaining DAs and a new salary increase based on a pay commission report.
The Telangana Cabinet cleared two of six pending dearness allowances for government employees and pensioners.
The two DAs, pending since January 2024, are expected to add about Rs 2,500 crore annually to state expenditure.
Telangana pays salaries to 3,96,995 employees and pensions to 2,94,945 pensioners.
The state’s current salary and pension expenditure is estimated at Rs 65,282 crore, or about 55% of revenue earnings.
The government has budgeted Rs 65,000 crore for salaries and pensions in 2026-27, but the total bill may approach Rs 70,000 crore after the DA increases.
- Who
- The Telangana government, its 3,96,995 employees, 2,94,945 pensioners, and employee unions.
- What
- The Cabinet approved two of six pending dearness allowances, raising the projected annual salary and pension bill to nearly Rs 70,000 crore.
- Where
- Telangana.
- When
- The two approved DAs had been pending since January 2024; the Cabinet decision was taken on Thursday, and one more DA was promised for January.
- Why
- The decision responds to demands from government employees and pensioners, while the higher committed expenditure will reduce fiscal space for other spending.
Employee and Pensioner Demands
Fiscal Constraints
Pending dearness allowances
Employee and Pensioner Demands
Employee unions and pensioners have sought clearance of all six pending DAs along with other service-related demands.
Fiscal Constraints
Approving the allowances will add about Rs 2,500 crore annually to the state’s expenditure and push the total bill close to Rs 70,000 crore.
New pay revision
Employee and Pensioner Demands
Employee unions want the government to obtain the pending Pay Revision Commission report and announce at least 50% fitment.
Fiscal Constraints
A 35% to 40% fitment could impose an additional annual burden of nearly Rs 10,000 crore, further increasing committed expenditure.
Spending priorities
Employee and Pensioner Demands
Salary and pension increases address demands from current employees and pensioners.
Fiscal Constraints
The high salary and pension bill leaves limited fiscal space for welfare and development programs and increases dependence on borrowing for other expenditure.
Key facts
- Current salary and pension expenditure
- Estimated at Rs 65,282 crore.
- Projected 2026-27 budget allocation
- Rs 50,000 crore for salaries and Rs 15,000 crore for pensions, totaling Rs 65,000 crore.
- Additional cost of two DAs
- About Rs 2,500 crore annually.
- Employees covered
- 3,96,995 government employees.
- Pensioners covered
- 2,94,945 pensioners.
- Share of revenue earnings
- About 55%.
- Pending DAs
- Six were pending; two have been approved.
Sources
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