With the lockdown in place, the beleaguered Telangana government is now on a belt-tightening mode. The cash-strapped Telangana Government has asked the officials not to release funds for any programme. The treasury will pay only for the salaries of the employees and the health bills. Every other payment has been ordered to be kept pending.
The officials of the finance department in Telangana have said that they have received clear-cut instructions to this effect. This has been done as the revenues have fallen significantly due to the lockdown. Though the liquor shops are being kept open from 6 am to 10 am, the sales have slowed down. Due to the lockdown, there are no registrations and no tax collection from the transport department. As a result, the state is suffering severe fund crunch.
Hence the State Government has decided to release funds only for the salaries of the government employees and for the pensions of the retired employees. As of now, the government has not taken a decision of payment of the gratuity to the newly retired employees and about payment of the PRC to the employees.
According to sources at least 19000 crore worth of bills are lying pending with the State Government. Cheques related to 12751 panchayats worth Rs 1300 crore are also kept pending.