Hyderabad: Talks between the state employees and the government over interim relief to the employees remained inconclusive and the ball has now landed in the court of Chief Minister N. Kiran Kumar Reddy.
While the finance minister A. Ramanarayana Reddy offered to pay 22 per cent IR as was the case in 2008, the employees stuck to their demand of 32 per cent.
Twenty two per cent would put an additional strain of Rs 6,500 crore on the state exchequer, whereas the burden will be Rs 10,000 crore if the state agrees to the employees’ demand.
Minister for finance, planning, small savings lotteries Ramanarayana Reddy, chief secretary Dr P.K. Mohanty and finance principal secretary Dr P. V. Ramesh, held prolonged discussions with the employees on Wednesday evening.
As there was no consensus, both parties decided to meet the chief minister on Thursday morning.
The finance minister explained to the employees that the state had already been suffering from 20 per cent shortfall in the revenues due to poor performance of excise, motor vehicle tax and registration departments.
He said that excise showed negative growth of 20 per cent. Vat also fell 10 per cent short of target, the minister told the employees.
All eyes are now on the CM who in normal times plays tough with employees.
There are hopes among employees, however, because of the political situation and proposed plans of the Chief Minister to float a new party. The employees are confident that the CM would try to keep them in good humour.
