Telangana's Monthly Salary and Pension Bill Skyrockets Four-Fold in a Decade
In a startling revelation, Telangana's monthly salary and pension expenditure has surged four-fold over the past decade, now standing at approximately Rs 6,000 crore. Chief Secretary K Ramakrishna Rao disclosed this significant increase on Wednesday, highlighting that when the state was formed in 2014, the outgo was merely Rs 1,500 crore. This represents a staggering 300% growth in fixed costs, largely attributed to successive pay revisions that have coincided with election cycles, dramatically inflating the state's financial commitments.
High Salaries in Public Sector Outpace IAS Officers and Governor
A striking outcome of these pay revisions is that salaries in Telangana's public sector now far exceed those of IAS officers and even the governor. For instance, chief engineers in power utilities draw up to Rs 7 lakh per month, while senior Class 4 employees, such as sweepers, earn around Rs 2 lakh. Rao explained that salaries in power utilities are comparatively high due to revisions occurring once every four years. In contrast, entry-level municipal staff earn approximately Rs 28,000 monthly, but drivers or sanitation workers with 30 years of service can receive over Rs 1 lakh.
In the Greater Hyderabad Municipal Corporation, only 2% of sanitation workers are regularised, making them eligible for an average of Rs 70,000 per month plus benefits. Salary adjustments are determined through government-appointed pay revision commissions, which apply a "fitment" percentage to the combined basic pay and dearness allowance, effectively raising overall salaries across all employee categories.
Intense Competition for Government Jobs and Economic Implications
The allure of these high salaries has intensified competition for government positions in Telangana. Recently, about 799 candidates vied for each of the 563 Group-1 posts advertised, reflecting a booming coaching industry as aspirants prepare for years. Despite the hefty expenditure, Telangana has managed to sustain it through robust economic performance, recording roughly 11% growth and a steady increase in revenue sources.
Rao emphasized the state's efforts in creating a robust digital infrastructure for subsidies, such as distributing Rs 7,000 crore under the Rythu Bandhu scheme with only a 6% error rate. Over the first 10 years since its formation, Telangana incurred a total expenditure of about Rs 15 lakh crore, with nearly Rs 12 lakh crore allocated to salaries, pensions, and debt repayment, and around Rs 3 lakh crore towards capital expenditure. Asset sales generated only about Rs 15,000 crore during this period.
