Telangana Cabinet To Withhold 50 Pc Salaries To Clear Retirees’ Dues
The state cabinet decided to immediately constitute a ‘Revenue Resources Mobilisation Committee’ to explore avenues for raising funds.
Published : April 24, 2026 at 2:22 PM IST
Hyderabad: The Telangana Cabinet on Thursday has decided to withhold 50 per cent of salaries payable to ministers and certain public representatives and utilise these funds, along with other mobilised resources, to clear arrears of retired employees, officials said.
The Cabinet also resolved to clear pending dues amounting to Rs 6,200 crore owed to retired employees within the next 100 days.
Further, the Cabinet decided to immediately constitute a ‘Revenue Resources Mobilisation Committee’ to explore avenues for raising funds. Under the aegis of this committee, discussions will be held with employee and teacher unions, retired employees’ associations and other stakeholders to resolve the issue at the earliest.
The cabinet is scheduled to meet again on May 4, while a definitive decision regarding the specific modalities and timeline for disbursing benefits to both serving and retired employees is expected.
Several key decisions were taken during the State Cabinet meeting held at the Secretariat, presided over by Chief Minister Revanth Reddy. These decisions were subsequently announced at a press conference by Minister Ponguleti Srinivas Reddy, joined by Ministers Uttam Kumar Reddy and Vakiti Srihari.
The ministers said the Cabinet held detailed discussions on various issues and appealed to RTC workers to call off their strike, assuring that the government is committed to resolving their concerns through dialogue. A committee of officials has been constituted to address their grievances.
They said retired employees are facing hardships due to delays in post-retirement benefits. Ponguleti Srinivas Reddy said, “Before 2014, whenever a government employee retired, their retirement benefits were disbursed within a mere month. By the time the state of Telangana was formed in 2014, not a single rupee remained outstanding in dues.”
“However, following the formation of the state of Telangana, the KCR-led government allowed bills worth thousands of crores to remain pending. Consequently, retired employees and their families are enduring severe difficulties, a situation exacerbated by the failure to disburse retirement benefits alongside the decision to raise the retirement age limit,” Ponguleti added.
The Cabinet expressed concern over the issue and resolved to take immediate steps to ensure that retired employees are not forced to visit multiple offices to secure their dues. While acknowledging financial constraints in making lump-sum payments, the government decided to explore alternative avenues for resource mobilisation.
The government has constituted a 'Revenue Resources Mobilisation Committee,' comprising Deputy Chief Minister Mallu Bhatti Vikramarka and Ministers Uttam Kumar Reddy, Sridhar Babu, Ponnam, and Jupally Krishna Rao. This committee is scheduled to commence its meetings starting on Friday.
"Apart from the payments we have made over the past two years, an outstanding amount of Rs 6,200 crore still needs to be paid to retired employees. These are arrears that have accumulated over the last ten years. Nevertheless, we bear the responsibility of clearing these dues. The Cabinet has decided to formulate a plan to clear these arrears within the next 100 days," stated Minister Ponguleti.
The Cabinet approved the appointment of governing bodies via a nomination process for Primary Agricultural Credit Societies (PACS) across the state whose terms of office have expired.
The Cabinet gave its seal of approval to a proposal to develop the Gachibowli Stadium under a Public-Private Partnership (PPP) model. The Cabinet also approved the expansion of the swimming pool's capacity, the establishment of a Sports University, and the provision of accommodation and training facilities for athletes.
Furthermore, the Cabinet decided to lease the remaining 12 acres to developers through an open tender process to permit commercial activities, and to utilise the revenue generated from these commercial operations for the maintenance of the Sports University, as well as for athlete accommodation, training, and other related programs.
It also approved the establishment of an ‘Integrated Aqua Park’ in the vicinity of the Sripada Yellampalli Project, within the Hajipur revenue limits of Mancherial district. It took a decision to allocate 85.10 acres of land belonging to the Irrigation Department to the Fisheries Department.
The Cabinet sanctioned 94 posts to provide services at the newly established Government Polytechnic Residential College in Kesamudram Mandal, Mahabubabad district. Of these, 63 are regular posts, while 31 will be filled through outsourcing.
It also approved 190 posts for Grade 1, Grade 2, and Grade 3 Executive Officers within the Endowments Department, and 30 regular posts and 26 outsourced posts across various categories within the Commercial Taxes Department.
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