The Telangana government has released ₹720 crore to settle long-pending government employee dues, including surrender leave encashment, gratuity and GPF withdrawals.

Hyderabad: The Telangana government on January 31 released ₹720 crore to clear long-pending bills of government employees, bringing major relief to the state’s workforce.

The funds were released by Deputy Chief Minister and Finance Minister Mallu Bhatti Vikramarka, who said the payment reflects the government’s resolve to systematically clear arrears inherited from the previous administration. The amount will fully settle surrender leave encashment dues pending from 2022 up to February 2025 in a single instalment.

Apart from leave encashment, the release also covers outstanding gratuity payments, General Provident Fund (GPF) withdrawals and various employee advances. Officials said the allocation is sufficient to clear all pending employee bills for January.

The government had earlier assured employee unions that more than ₹700 crore would be released every month towards clearing arrears. After an initial release of ₹183 crore in June last year, monthly releases of at least ₹700 crore have been maintained from August onwards through a dedicated “green channel” mechanism to fast-track employee-related payments.

Analysis: Clearing surrender leave encashment up to early 2025 significantly narrows the arrears timeline and eases financial stress for employees and retirees. If sustained, the fixed monthly release system could restore confidence among staff who have long struggled with delayed payments and loan defaults caused by irregular disbursements. This assessment reflects analytical opinion; all factual details above are drawn from the original content.