Hyderabad: Finance minister Etela Rajender said the state government is doing everything to ensure that its employees get their full salaries on December 1, despite severe financial constraints on account of demonetisation.
The minister's assurance came in the wake of fears that the government may have to pay its staff only half their salary since the state's revenue has fallen by over 50 per cent this month as all kinds of business activities across the state came to a halt since November 8.
Mr Rajender held a video conference with all district collectors at Secretariat on Wednesday to take stock of the situation arising out of demonetisation. He later told reporters, “It’s true that the state’s finances took a hit due to demonetisation.
No business activity has been taking place since November 8 as everyone is busy running around banks and ATMs to exchange currency and make deposits.
The government is not getting revenue from commercial taxes, excise, stamps and registration, transport departments. Naturally, all these factors have pushed state into a financial crisis and adjusting funds to pay salaries has become a tough task.”
Mr Rajender said that the government doesn’t want to trouble employees. The government will consider imposing cuts on welfare schemes and development programmes, if the situation so demands but would not impose restrictions on salaries.” However, the minister remained non-committal over the salary situation in January, if there is no improvement in situation.
“We are not thinking that far now. We hope the Centre will come out with a solution by then. This problem is not confined to Telangana alone but all states are experiencing similar situation,” Mr Rajender said.
The minister expressed confidence that the government could adjust Rs 2,500 crore required to pay salaries and pensions for staff on December 1 by utilising the tax collections of October, that will be remitted to treasury this month. Mr Rajender also urged the Centre to enhance cash withdrawal limit to Rs 10,000 per day for all and for traders in the range of Rs 50,000 to Rs 2 lakh.
