Raise doubts over rich Telangana going bankrupt in a week of lockdown

Hyderabad: Telangana government's decision to cut salaries of the employees by 50 per cent has come as a big shocker to two-lakh-plus workforce who is facing tight financial position.

What they are not able to digest is on one hand the government asked all private companies to pay full salary but it has decided to slash salaries of its own employees.

Standing by the government during the time of crisis is the responsibility of all. That is fine. The decision to cut salaries of ministers, MLAs, MLCs and officers from the Central services is fine but it would be a sort of punishment for other employees who are solely dependent on their salaries month after month to run their house, the employees say.

What is bewildering, some employees say, was how did the coffers of the government become empty after the lockdown was announced just a week ago.

Opposition parties too raise this question and want the government to explain how much has been spent in tackling coronavirus problem.

Meanwhile, the employees said at the most they can manage the situation for one month. But there is no clarity on whether they will get full salary in May or not. It is also not clear when the deducted salary would be reimbursed.

This makes it difficult for them to plan their budget. There are many issues that cannot be deferred like the EMIs. The rents, milk bills, salary to maids, parents health issues are some of the most important issues that need to be taken care of during the first week of the month.

A superintendent rank officer in the Agriculture department told the Hans India that salary cut by 50 per cent was not a welcome decision by the state government as there is no such financial emergency facing the country.

Total lockdown was imposed just a week ago (March 22). The government always claimed Telangana is a rich state and the highest revenue earning state in the country. How the state had gone bankrupt within a week is something that one does not digest, he said.

A Section Officer in the state Secretariat said that he had approached banks to submit a letter requesting moratorium on three EMIs under housing loan after the Union government announced relief package for working classes.

The bank officials did not accept his plea citing it did not receive any official communication from the RBI regarding the moratorium.

The Centre on Tuesday announced that EMIs will be deferred automatically but the banks have made it clear that at the end of three months cumulative interest will have to be paid. Another burden for the common man. The government can at least mobilise funds from industrialists who are giving donations but not we, he rued.

A Grade-IV employee who is set to lose 10 per cent of salary said that it will be a big difficult to meet the family expenses. He will have to depend on private lenders to meet monthly needs including medical expenses.

A pensioner said the state already postponed implementation of the PRC indefinitely and the pension cut will affect on a daily basis. The retired personnel have health issues and the expenses on medicare are always more for them.

State Finance department officials said that the salary cut of all sections including ministers, MLAs, officials was part of fund-pooling to meet the emergency needs during the lockdown period.

The only option before the government is to save the available financial resources and the salary cut is the first option before the government.

The employees' union leaders who did not want to be named said that the government is taking unilateral decisions without consulting the officials.