State Releases ₹1,000 Crore to Clear Employee Payment Backlog

Hyderabad — In a significant move to address employee welfare concerns, the State government on Wednesday released ₹1,000 crore earmarked for settling arrears owed to serving and retired personnel.

The disbursement followed an order issued by Principal Secretary, Finance, Sandeep Kumar Sultania, acting on the direction of Deputy Chief Minister Bhatti Vikramarka. The move represents the government's commitment to honouring commitments made to the workforce.

Enhanced Monthly Allocation

The government had initially committed to allocating ₹700 crore monthly to clear employee dues, with payments maintained through March 2026. Following a reassessment of employee financial requirements, the Deputy Chief Minister decided to increase the monthly allocation to ₹1,000 crore starting from the current financial year.

Clearing Retirement Benefits

The April allocation was prioritised for immediate release. Significantly, the government has also cleared all outstanding General Provident Fund dues extending back to October 2025. This action is expected to provide substantial relief to thousands of retired staff members who have been waiting to receive their retirement benefits.

Additional Support Measures

The government has issued directives to expedite the clearance of pending medical bills without further delays. Concurrently, officials are processing scholarship payments alongside medical reimbursements.

Deputy Chief Minister Bhatti Vikramarka emphasised that the government remains committed to safeguarding employee health security, stressing that medical bills must be cleared promptly and regularly. "Employees are partners in governance; addressing their issues is our responsibility," he stated.

Employee Response

Employee unions have welcomed the substantial fund release, expressing satisfaction with the government's action to address long-pending grievances.