Naidu Clears Rs 7,358 Crore Dues to Employees and Retirees
AP govt begins phased payments of PF, gratuity and leave encashment
Vijayawada: Chief Minister N. Chandrababu Naidu has approved the release of Rs 7,358 crore towards pending dues of government employees and retirees, providing major relief.
The decision was taken during a high-level review meeting with finance department officials on Thursday.
Reviewing dues inherited from the previous government, the Chief Minister sought details on steps taken to clear employee-related liabilities. Officials informed him that payments are being made based on fund availability, in line with his directions.
As part of the exercise, Rs 1,848 crore towards provident fund arrears has already been credited directly to employees’ accounts. In addition, Rs 76 crore has been disbursed under the group life insurance scheme, benefiting 4,793 employees.
Officials said payments of Rs 3,411 crore towards gratuity and Rs 1,800 crore for leave encashment of retired employees are under way. Bills worth Rs 223 crore related to additional surrendered leave in the police department are also being processed and are expected to be cleared within two days.
Describing it as one of the largest post-Talliki Vandanam disbursements, officials said the initiative is aimed at easing the financial burden on employees. The Chief Minister directed that all pending bills, including those beyond employee dues, be cleared in a phased manner depending on fund availability.
During the meeting, issues relating to the diversion of employee funds by the previous regime were also discussed. Officials noted that such actions had caused hardship, with protests by employees reportedly facing legal action.
The Chief Minsiter also reviewed pending payments to contractors and suppliers. Officials said Rs 614 crore has been cleared for small contractors who supplied materials to various departments. Emphasising fairness, Naidu directed that smaller contractors be given priority in future bill clearances.
