The Telangana government on Thursday decided to impose a 50% cut in the salaries of ministers to mobilize financial resources to clear the dues owed to retired government employees.
These moves come in the wake of the Himachal Pradesh government, which last week decided to cut the salaries of the Prime Minister and his colleagues in the government to overcome the financial crisis.
Speaking to reporters after the Cabinet meeting chaired by Chief Minister A. Revanth Reddy at the State Secretariat, state Information and Public Relations Minister Ponguleti Srinivas Reddy said, “All the ministers have voluntarily decided to reduce their salaries by 50%. Likewise, all representatives of the public will waive 50% of their salaries, if necessary, in order to clear the retirement benefits payable to retired employees.”
The Council of Ministers also decided to form a subcommittee to mobilize resources to deal with employee unions, teachers’ unions, and retirees’ groups to speed up the solution. The minister said that the Council of Ministers set a goal to begin arrangements for disbursing retired employee entitlements within 100 days.
The Cabinet also expressed its deep concern over the large outstanding entitlements of government employees and retired employees, which have accumulated over the past decade. She pointed out that at the time of formation of Telangana, there were no such arrears.
“With the increase in the retirement age and the delay in disbursing retirement benefits, retirees and their families are facing great difficulties,” Bongoleti said. “The Cabinet felt that retired employees should not be forced to run from one office to another to obtain their benefits.”
According to officials, the outstanding liabilities include approx $6,200 Crores for employee service and $8,000 crore to retired employees and said: “Recognizing the financial constraints, the Cabinet has decided to explore alternative resource mobilization measures to clear these dues.”
State Irrigation Minister N Uttam Kumar Reddy said the Cabinet has also decided to write to the Central Bureau of Investigation (CBI) again to expedite the investigation into alleged irregularities in the construction of Kaleshwaram Irrigation Project on Godavari river during the previous Bharat Rashtra Samithi government.
Uttam Kumar Reddy said that the Cabinet deliberated in detail on the state high court’s ruling on the Justice BC Ghose Commission report on irregularities in the Kaleshwaram project.
The minister said: “The Council of Ministers noted that the Supreme Court did not find an error in the formation of the Judicial Committee nor in its report, confirming their legal and constitutional validity.”
He pointed out that the court objected on technical grounds only, explaining that no notices had been issued to the petitioners. The court ruled that the references made against the individuals in the report should not be implemented and no action should be taken based on those findings alone, Uttam Kumar Reddy said.
“The Cabinet noted that the state government had already issued orders for a CBI investigation into the alleged irregularities in the project, but the investigation has not begun even after nine months. Legal experts have clarified that the Supreme Court ruling does not hamper the CBI investigation,” he said.
Accordingly, the Council of Ministers decided to once again urge the Central Bank of Iraq to expedite the investigation. The minister said he had also decided to consult legal experts in Delhi on whether to approach the Indian Supreme Court after a thorough review of the Supreme Court ruling.
The Cabinet approved the appointment of administrative bodies through the nomination process for Primary Agricultural Credit Cooperative Societies (PACS) whose membership terms have expired, ensuring continuity of cooperative credit operations.
The Cabinet also approved the redevelopment of the Gachibowli Indoor Stadium under the Public-Private Partnership (PPP) model. Bongoletti said the project will cover 76 acres, of which 64 acres are designated for developing facilities for 21 different sports.
He added: “The capacity of the outdoor stadium will be expanded from 20,000 to 50,000. The plans also include enhancing swimming facilities, establishing a sports university, and providing housing and training infrastructure for athletes. The remaining 12 acres will be allocated for commercial development, with revenues allocated to support the sports university, sponsorship of athletes, and training programs.”
The Cabinet has approved completion of land acquisition for the much-awaited Chenna Kaleshwaram project in Manthani constituency. The project is expected to benefit around 45,000 acres and residents of 63 villages across Mahadevpur, Kataram, Malhar Rao and Mahamutharam mandal.
Of the total 2,427 acres requested, 1,020 acres have already been purchased. Cabinet approved $166.67 crore for acquisition of remaining lands with a view to removing delays caused by land issues.
