Telangana government releases ₹713 crore to clear pending employee bills for December, marking the fifth straight month of fund allocation.

The Telangana government has released ₹713 crore towards long-pending payments owed to state government employees for December, continuing a multi-month effort to clear arrears. The release was ordered by Deputy Chief Minister and Finance Minister Mallu Bhatti Vikramarka, with the Finance Department processing the bills on Wednesday.

This marks the fifth consecutive month in which the government has allocated funds to address pending employee-related payments. The dues cover gratuity, General Provident Fund (GPF), leave encashment, and various advances. Officials said the releases are part of a Cabinet-approved plan to systematically clear arrears accumulated up to January 1, 2023, over a fixed timeline.

The decision follows sustained discussions between employee unions and a Cabinet sub-committee led by the Deputy Chief Minister, after unions had raised concerns over delayed payments and threatened protests. Alongside financial clearances, the government has also moved ahead with structural reforms, including the creation of a dedicated trust for the employee health insurance scheme with representation from unions.

Analysis: Regular fund releases may help ease unrest among government employees and restore confidence after years of delays. However, consistent execution and timely rollout of welfare schemes like health insurance will be crucial to sustaining trust between employees and the state.