Hyderabad: The Telangana state government employees are irked by the delay in the announcement of the Pay Revision Commission (PRC) benefits since the start of this year, with the government citing various excuses as reason, particularly the continual model code of conduct.
The government employees, who have been waiting for past 12 months, would now have to wait further till the completion of municipal elections. As per schedule, the PRC was to have become operational from August 2019.
The employees have been demanding a 67 per cent fitment benefit, but finance department authorities are saying that due to financial crisis, the government was not in position to meet their demand.
Sources in the finance department disclosed that for one per cent of fitment, the state exchequer was burdened additionally by `300 crore per annum. For the state to meet 67 per cent hike demand, there total burden on the exchequer per year would be a whopping `19,000 crore.
After coming to power in 2014, Chief Minister K. Chandrasekhar Rao had announced 43 per cent fitment benefit state government employees. If Mr Rao wants to retain the benefit at that level, `13,000 crore would be required.
The state government has not made any allocations in the 2019-20 budget, and hence, employees would have to wait till the government introduces the 2020-21 budget. Even if the government wants to implement 43 per cent fitment, it has to allocate `26,000 crore in the budget, an uphill task for the ruling government in view of the economic slowdown, sources said.
Sources argued that with reduced Central share of tax devolution, the state has to mobilise resources on its own to meet demands for infrastructure projects and welfare programmes. The state government would certainly take decision on enhancing power tariff and increase other taxes, which directly go into the state treasury.
Sources pointed out that the state government had recently requested the Union finance minister to increase the 3.3 per cent of GSDP limit in fiscal deficit to four per cent, so that the state could increase its borrowings. In this background, state government employees were heard saying they would have to wait at least another six months before they can hope to receive PRC benefits.
