Deputy Chief Minister Bhatti Vikramarka stated that the state government is firmly committed to the welfare of its employees and is taking concrete steps to set right the derailed financial system.

Pending bills of employees will be cleared as quickly as possible, he said. While replying in detail to questions raised by Members, including AVN Reddy in the Legislative Council on Friday, the Deputy Chief Minister said if EMIs taken by government employees for various needs are not paid on the first of every month, banks classify their accounts as defaulters.

He recalled that under the previous government there were instances where salaries were credited even on the 18th of the month, causing severe hardships to employees.

After assuming office, the present government held discussions with employee unions and, considering employees as partners, took a policy decision to pay salaries on the first of every month, irrespective of financial difficulties. Since then, salaries have been paid on the first without a single day’s delay, Bhatti Vikramarka said.

The Deputy Chief Minister alleged that to defer the financial burden, the previous government increased the retirement age of employees by three years instead of paying their legitimate benefits. Had the retirement age not been increased, 26,854 employees should have retired between 2021 and 2023, but due to the increase, only 6,354 employees retired during that period. This decision was taken purely to postpone the financial burden, he said, adding that some people, unaware of the facts, even performed milk abhishekams at that time. Bhatti Vikramarka stated that by December 2023, the previous government left behind Rs 43,154 crore worth of pending bills under various heads, of which Rs 4,575 crore pertained solely to employee dues. These facts were clearly mentioned in the Financial White Paper. After the new government took charge, Rs 1,752 crore towards pension benefits has been paid. At present, employee-related pending bills stand at Rs 6,244 crore, which are being cleared every month on a priority basis without inconvenience. At least Rs 700 crore per month is being released exclusively to clear employee dues, he explained.

Because the previous government failed to pay salaries on the first of the month, employees were unable to make timely payments and got trapped in a vicious cycle of debt. After coming to power, the present government interacted with employees and took a firm policy decision to ensure salaries are paid on the first of every month, and this has been implemented without fail, Bhatti Vikramarka said. Terming the holding back of medical bills as inhuman, the Deputy Chief Minister said the government has cleared over Rs 200 crore worth of pending medical bills so far. Henceforth, medical bills will be cleared on a monthly basis without delay. Similarly, Rs 560 crore worth of pending supplementary salary bills have been completely cleared, and in future, supplementary salary dues will also be settled regularly, Bhatti Vikramarka said. Keeping in mind the health and welfare of employees and retired employees, the government has asked them to design a suitable health scheme themselves. A Joint Staff Council has been constituted to address employee-related issues, he said.

In the current financial situation, even ensuring salary payment on the first of every month is a significant achievement, the Deputy Chief Minister noted. If salaries are not paid on time, employees are forced to borrow from private individuals at high interest rates, leading to further distress, Bhatti Vikramarka said.