Hyderabad: In an unusual move, Telangana Chief Minister K Chandrasekhar Rao on Monday said his salary would be cut by 75% to financially assist the state amid the coronavirus outbreak, and that state ministers and members of Legislative Assembly (MLAs) will also face a three-fourth salary cut.
Other elected representatives, such as Members of Legislative Council and local body representatives, will also have to let go off 75% of their salary this month. State-run corporations, such as the Road Transport Corporation and Tourism Development Corporation, are also on the same list.
Civil servants in the administrative, police and foreign services along with other central service officers will have to let go off 60% of their salaries. Retirees in the state will see a 50% cut in their pensions.
“The coronavirus is adversely impacting Telangana’s economic situation. In this background, the state government has to act with caution and foresight,” a statement from the Chief Minister’s Office (CMO) said.
Rao, also known as KCR, had earlier said the revenue department has been dealing with a loss of Rs 12,000 crore due to the lockdown and to handle the situation the elected-representatives might have to let go off their share of pay.
“The state treasury needs to get Rs 12,000 crore since March 15. Everything is shut — petrol, GST, excise. So, we may have to cut salaries of MLAs and government employees. People have to cooperate – we are in a crisis, this is not a luxury. You have to eat half of what you were eating before,” Rao said on Sunday.
According to the statement, Class IV outsourcing, contract and retired employees will face a 10% pay cut.
“For all public sector undertakings and institutions that are receiving government grants employees, like government employees and retirees, there will be a cut in their salaries,” the statement said. This would include the Public Service Commission and Human Rights Commission.
Monday’s decision was taken following a high-level review meeting on the state’s financial condition.
Last week, elected representatives of the ruling Telangana Rashtra Samithi decided to contribute a month’s salary to the CM's Relief Fund. They will also contribute a year’s constituency fund to the relief fund. The total amount was estimated to be Rs 500 crore.
The Telangana government had said it was ready to spend about Rs 500 crore to deal with the coronavirus pandemic, with Rao saying more money would be pumped in if the situation worsens.
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